Segmented Information

12 Months Ended

Dec. 31, 2022

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

● Other includes the results of Ritchie Bros. Financial Services (“RBFS”), Rouse, SmartEquip, Mascus & RitchieList online services, 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”) and appraisals and inspections.

5.     Segmented Information (continued)

	Year ended December 31, 2022
	A&M		Other		Consolidated
Service revenue:
Commissions	$	485,916	$	—	$	485,916
Fees		366,079		198,588		564,667
Total service revenue		851,995		198,588		1,050,583
Inventory sales revenue		683,225		—		683,225
Total revenue	$	1,535,220	$	198,588	$	1,733,808
Costs of services		104,902		63,225		168,127
Cost of inventory sold		608,574		—		608,574
Selling, general and administrative		466,251		73,682		539,933
Segment profit	$	355,493	$	61,681	$	417,174
Acquisition-related costs						37,261
Depreciation and amortization						97,155
Foreign exchange gain						(954)
Total operating expenses					$	1,450,096
Gain on disposition of property, plant and equipment						170,833
Operating income					$	454,545
Interest expense						(57,880)
Interest income						6,971
Change in fair value of derivatives						1,263
Other income, net						1,089
Income tax expense						(86,230)
Net income					$	319,758

	Year ended December 31, 2021
	A&M		Other		Consolidated
Service revenue:
Commissions	$	469,718	$	—	$	469,718
Fees		293,408		154,633		448,041
Total service revenue		763,126		154,633		917,759
Inventory sales revenue		499,212		—		499,212
Total revenue	$	1,262,338	$	154,633	$	1,416,971
Costs of services		97,423		57,835		155,258
Cost of inventory sold		447,921		—		447,921
Selling, general and administrative		406,360		49,843		456,203
Segment profit	$	310,634	$	46,955	$	357,589
Acquisition-related costs						30,197
Depreciation and amortization						87,889
Foreign exchange loss						792
Total operating expenses					$	1,178,260
Gain on disposition of property, plant and equipment						1,436
Operating income					$	240,147
Interest expense						(36,993)
Interest income						1,402
Change in fair value of derivatives						(1,248)
Other income, net						1,924
Income tax expense						(53,378)
Net income					$	151,854

5.     Segmented Information (continued)

	Year ended December 31, 2020
	A&M		Other		Consolidated
Service revenue:
Commissions	$	452,882	$	—	$	452,882
Fees		291,775		126,939		418,714
Total service revenue		744,657		126,939		871,596
Inventory sales revenue		505,664		—		505,664
Total revenue	$	1,250,321	$	126,939	$	1,377,260
Costs of services		103,232		61,296		164,528
Cost of inventory sold		458,293		—		458,293
SG&A expenses		382,254		28,037		410,291
Segment profit	$	306,542	$	37,606	$	344,148
Acquisition-related costs						6,014
D&A expenses						74,921
Foreign exchange loss						1,612
Total operating expenses					$	1,115,659
Gain on disposition of property, plant and equipment						1,559
Operating income					$	263,160
Interest expense						(35,568)
Interest income						2,337
Other income, net						5,959
Income tax expense						(65,530)
Net income					$	170,358

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 carrying values of goodwill are allocated as follows to A&M and Other:

At December 31,	2022		2021
A&M	$	651,539	$	653,183
Other
Mascus		18,846		19,984
Rouse		163,968		163,968
SmartEquip		114,463		110,580
Total Goodwill	$	948,816	$	947,715

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		Australia		Europe		Other		Consolidated
Total revenue for the year ended:
December 31, 2022	$	970,848	$	375,670	$	181,339	$	143,232	$	62,719	$	1,733,808
December 31, 2021		748,730		281,105		149,551		183,004		54,581		1,416,971
December 31, 2020		754,815		305,236		119,490		158,999		38,720		1,377,260

	United
	States		Canada		Australia		Europe		Other		Consolidated
Property, plant and equipment:
December 31, 2022	$	241,937	$	87,264	$	20,035	$	86,702	$	23,199	$	459,137
December 31, 2021		232,351		93,826		21,478		75,538		25,894		449,087