Segmented information

6 Months Ended

Jun. 30, 2020

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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.

	Three months ended June 30, 2020						Six months ended June 30, 2020
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue	$	199,648	$	34,491	$	234,139	$	354,391	$	62,871	$	417,262
Inventory sales revenue		154,911		—		154,911		245,043		—		245,043
Total revenue	$	354,559	$	34,491	$	389,050	$	599,434	$	62,871	$	662,305
Costs of services		22,190		17,258		39,448		47,285		31,518		78,803
Cost of inventory sold		143,134		—		143,134		224,719		—		224,719
Selling, general and administrative expenses ("SG&A")		94,559		6,073		100,632		186,144		12,873		199,017
Segment profit	$	94,676	$	11,160	$	105,836	$	141,286	$	18,480	$	159,766
Depreciation and amortization expenses ("D&A")						17,857						37,150
Gain on disposition of property, plant and equipment ("PPE")						(1,213)						(1,260)
Foreign exchange loss						392						994
Operating income					$	88,800					$	122,882
Interest expense						(8,882)						(18,064)
Other income, net						857						4,434
Income tax expense						(27,656)						(33,304)
Net income					$	53,119					$	75,948

4.    Segmented information (continued)

	Three months ended June 30, 2019						Six months ended June 30, 2019
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue	$	201,050	$	33,556	$	234,606	$	344,487	$	62,491	$	406,978
Inventory sales revenue		158,616		—		158,616		289,673		—		289,673
Total revenue		359,666		33,556		393,222	$	634,160	$	62,491	$	696,651
Costs of services		32,551		17,717		50,268		53,368		32,969		86,337
Cost of inventory sold		149,818		—		149,818		270,293		—		270,293
SG&A expenses		91,466		6,248		97,714		180,648		12,250		192,898
Segment profit	$	85,831		9,591		95,422	$	129,851	$	17,272	$	147,123
Acquisition-related costs						38						707
D&A expenses						17,112						34,227
Gain on disposition of PPE						(101)						(250)
Foreign exchange loss						403						881
Operating income						77,970					$	111,558
Interest expense						(10,117)						(20,933)
Other income, net						1,679						3,718
Income tax expense						(15,401)						(22,040)
Net income						54,131					$	72,303

The Company’s geographic breakdown of total revenue 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 three months ended:
June 30, 2020	$	204,588	$	97,990	$	47,430	$	39,042	$	389,050
June 30, 2019		212,233		90,410		47,283		43,296		393,222
Total revenue for the six months ended:
June 30, 2020	$	395,118	$	133,633	$	73,768	$	59,786	$	662,305
June 30, 2019		395,806		121,940		102,068		76,837		696,651