4. Segmented information

The Company’s principal business activity is the management and disposition of used industrial equipment and other durable assets. The Company’s operations are comprised of one reportable segment and other business activities that are not reportable as follows:

Auctions and Marketplaces – This is the Company’s only reportable segment, which consists of the Company’s live on site auctions, its online auctions and marketplaces, and its brokerage service;

Other includes the results of Ritchie Bros. Financial Services (“RBFS”), Mascus online services, and the results from various value-added services and make-ready activities, including the Company’s equipment refurbishment services, Asset Appraisal Services, and Ritchie Bros. Logistical Services.

4. Segmented information (continued)



		Year ended December 31, 2018
	A&M		Other		Consolidated
Service revenues	$	626,007	$	123,508	$	749,515
Revenue from inventory sales		420,511		-		420,511
Total revenues	$	1,046,518	$	123,508	$	1,170,026
Costs of services		87,430		71,628		159,058
Cost of inventory sold		374,339		-		374,339
Selling, general and administrative
expenses ("SG&A")		363,549		19,127		382,676
Segment profit	$	221,200	$	32,753	$	253,953
Acquisition-related costs						5,093
Depreciation and amortization
expenses ("D&A")						66,614
Gain on disposition of property, plant
and equipment ("PPE")						(2,731)
Foreign exchange gain						(212)
Operating income	$		$		$	185,189
Interest expense						(44,527)
Other income, net						11,850
Income tax expense						(31,006)
Net income	$		$		$	121,506

4. Segmented information (continued)



		Year ended December 31, 2017
	A&M		Other		Consolidated
Service revenues	$	524,023	$	100,394	$	624,417
Revenue from inventory sales		346,774		-		346,774
Total revenues	$	870,797	$	100,394		971,191
Costs of services		75,685		57,504		133,189
Cost of inventory sold		306,498		-		306,498
SG&A expenses		308,873		14,397		323,270
Impairment loss		8,911		-		8,911
Segment profit	$	170,830	$	28,493	$	199,323
Acquisition-related costs						38,272
D&A expenses						52,694
Gain on disposition of PPE						(1,656)
Foreign exchange loss						2,559
Operating income					$	107,454
Interest expense						(38,291)
Other income, net						8,231
Income tax expense						(2,088)
Net income					$	75,306

4. Segmented information (continued)



		Year ended December 31, 2016
	A&M		Other		Consolidated
Service revenues	$	474,040		81,803	$	555,843
Revenue from inventory sales		571,134		-		571,134
Total revenues	$	1,045,174	$	81,803		1,126,977
Costs of services		65,248		48,048		113,296
Cost of inventory sold		513,348		-		513,348
SG&A expenses		272,317		11,212		283,529
Impairment loss		28,243		-		28,243
Segment profit	$	166,018	$	22,543	$	188,561
Acquisition-related costs						11,829
D&A expenses						40,861
Gain on disposition of PPE						(1,282)
Foreign exchange loss						1,431
Operating income					$	135,722
Interest expense						(5,564)
Debt extinguishment costs						(6,787)
Other income, net						7,123
Income tax expense						(36,982)
Net income					$	93,512

4. Segmented information (continued)

The carrying value of goodwill of $651,359,000 has been allocated to A&M and $20,235,000 has been allocated to other. As in prior periods, the CODM does not evaluate the performance of its operating segments based on segment assets and liabilities, nor does the Company classify liabilities on a segmented basis.



As at December 31,		2018		2017
A&M	$	651,359	$	649,770
Other		20,235		21,152
	$	671,594	$	670,922

The Company‘s geographic information as determined by the revenue and location of assets, which represents property, plant and equipment is as follows:



		United States		Canada		Europe		Other		Consolidated
Total revenues for the year ended:
December 31, 2018	$	548,695	$	284,989	$	180,817	$	155,525	$	1,170,026
December 31, 2017		452,599		245,106		127,706		145,780		971,191
December 31, 2016		555,837		293,956		109,024		168,160		1,126,977



		United States		Canada		Europe		Other		Consolidated
Long-lived assets:
December 31, 2018	$	260,489	$	100,983	$	77,496	$	47,631	$	486,599
December 31, 2017		275,628		116,833		82,795		51,325		526,581