Segmented information

12 Months Ended

Dec. 31, 2020

Segmented information

Segmented information

5.     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 Rouse, 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.

5.     Segmented information (continued)

	Year ended December 31, 2020
	A&M		Other		Consolidated
Service revenue	$	740,043	$	131,553	$	871,596
Inventory sales revenue		505,664		—		505,664
Total revenue	$	1,245,707	$	131,553	$	1,377,260
Costs of services		92,195		65,101		157,296
Cost of inventory sold		458,293		—		458,293
Selling, general and administrative expenses ("SG&A")		388,442		29,081		417,523
Segment profit	$	306,777	$	37,371	$	344,148
Acquisition-related costs						6,014
Depreciation and amortization expenses ("D&A")						74,921
Gain on disposition of property, plant and equipment ("PPE")						(1,559)
Foreign exchange loss						1,612
Operating income					$	263,160
Interest expense						(35,568)
Other income, net						8,296
Income tax expense						(65,530)
Net income					$	170,358

	Year ended December 31, 2019
	A&M		Other		Consolidated
Service revenue	$	678,823	$	125,201	$	804,024
Inventory sales revenue		514,617		—		514,617
Total revenue	$	1,193,440	$	125,201	$	1,318,641
Costs of services		99,821		65,156		164,977
Cost of inventory sold		480,839		—		480,839
SG&A expenses		358,016		24,373		382,389
Segment profit	$	254,764	$	35,672	$	290,436
Acquisition-related costs						777
D&A expenses						70,501
Gain on disposition of PPE						(1,107)
Foreign exchange gain						(2,937)
Operating income					$	223,202
Interest expense						(41,277)
Other income, net						8,838
Income tax expense						(41,623)
Net income					$	149,140

5.     Segmented information (continued)

	Year ended December 31, 2018
	A&M		Other		Consolidated
Service revenue	$	626,007	$	123,508	$	749,515
Inventory sales revenue		420,511		—		420,511
Total revenue	$	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
SG&A expenses		363,549		19,127		382,676
Segment profit	$	221,200	$	32,753	$	253,953
Acquisition-related costs						5,093
D&A expenses						66,614
Gain on disposition of 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

The Chief operating decision maker “CODM” does not evaluate the performance of its operating segments or assess allocation of resources based on segment assets and liabilities, nor does the Company classify liabilities on a segmented basis. The carrying value of goodwill of $653,183,000 has been allocated to A&M and $187,427,000 has been allocated to Other in relation to the Mascus and Rouse acquisitions ($21,656,938 and $165,770,062 respectively).

As at December 31,	2020		2019
A&M	$	653,183	$	652,243
Other		187,427		20,067
Total Goodwill	$	840,610	$	672,310

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 revenue for the year ended:
December 31, 2020	$	754,815	$	305,236	$	158,999	$	158,210	$	1,377,260
December 31, 2019		743,793		247,737		173,054		154,057		1,318,641
December 31, 2018		548,695		284,989		180,817		155,525		1,170,026

	United
	States		Canada		Europe		Other		Consolidated
Property, plant and equipment:
December 31, 2020	$	252,335	$	106,973	$	83,014	$	49,805	$	492,127
December 31, 2019		256,159		106,922		73,991		47,410		484,482