Segmented information

3 Months Ended

Mar. 31, 2022

Segmented information

Segmented information

6.    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 onsite auctions, its online auctions and marketplaces, and its brokerage service;

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

	Three months ended March 31, 2022
	A&M		Other		Consolidated
Service revenue:
Commissions	$	116,375	$	—	$	116,375
Fees		84,629		43,857		128,486
Total service revenue		201,004		43,857		244,861
Inventory sales revenue		149,060		—		149,060
Total revenue	$	350,064	$	43,857	$	393,921
Costs of services		25,574		13,441		39,015
Cost of inventory sold		131,582		—		131,582
Selling, general and administrative expenses ("SG&A")		108,811		17,795		126,606
Segment profit	$	84,097	$	12,621	$	96,718
Acquisition-related costs						9,637
Depreciation and amortization expenses ("D&A")						24,225
Foreign exchange gain						(164)
Total operating expenses					$	330,901
Gain on disposition of property, plant and equipment ("PPE")						169,820
Operating income					$	232,840
Interest expense						(20,686)
Change in fair value of derivatives						1,263
Other income, net						920
Income tax expense						(36,236)
Net income					$	178,101

	Three months ended March 31, 2021
	A&M		Other		Consolidated
Service revenue:
Commissions	$	103,975	$	—	$	103,975
Fees		68,096		33,959		102,055
Total service revenue		172,071		33,959		206,030
Inventory sales revenue		125,525		—		125,525
Total revenue	$	297,596	$	33,959	$	331,555
Costs of services		24,304		13,562		37,866
Cost of inventory sold		110,747		—		110,747
SG&A expenses		102,781		11,458		114,239
Segment profit	$	59,764	$	8,939	$	68,703
Acquisition-related costs						2,922
D&A expenses						21,070
Foreign exchange loss						277
Total operating expenses					$	287,121
Gain on disposition of PPE						68
Operating income					$	44,502
Interest expense						(8,946)
Other income, net						1,002
Income tax expense						(8,419)
Net income					$	28,139

6.    Segmented information (continued)

The Chief Operating Decision Maker “CODM” does not evaluate the performance of the Company’s operating segments or assess allocation of resources based on segment assets and liabilities, nor does the Company classify liabilities on a segmented basis.

The Company’s geographic breakdown of total revenue and location is as follows:

	United
Total revenue for the three months ended:	States		Canada		Australia		Europe		Other		Consolidated
March 31, 2022	$	247,950	$	65,233	$	29,075	$	37,820	$	13,843	$	393,921
March 31, 2021		207,414		48,478		19,563		47,176		8,924		331,555