SEGMENT INFORMATION

6 Months Ended

Dec. 31, 2019

10. SEGMENT INFORMATION

The Company manages its business under two reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests. Royal Gold’s long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands):


	As of December 31, 2019						As of June 30, 2019
					Total stream						Total stream
	Stream		Royalty		and royalty		Stream		Royalty		and royalty
	interest		interest		interests, net		interest		interest		interests, net
Canada	$	744,543	$	194,676	$	939,219	$	767,749	$	200,251	$	968,000
Dominican Republic		430,609		—		430,609		451,585		—		451,585
Chile		287,309		214,171		501,480		301,507		214,226		515,733
Africa		150,898		321		151,219		89,555		321		89,876
Mexico		—		79,891		79,891		—		83,748		83,748
United States		—		161,391		161,391		—		163,398		163,398
Australia		—		30,677		30,677		—		31,944		31,944
Rest of world		12,038		26,567		38,605		12,039		22,993		35,032
Total	$	1,625,397	$	707,694	$	2,333,091	$	1,622,435	$	716,881		2,339,316

The Company’s reportable segments for purposes of assessing performance are shown below (amounts in thousands):


	Three Months Ended December 31, 2019
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	89,625	$	21,077	$	—	$	32,181	$	36,367
Royalty interests		34,018		—		984		7,801		25,233
Total	$	123,643	$	21,077	$	984	$	39,982	$	61,600

	Three Months Ended December 31, 2018
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	67,679	$	18,162	$	—	$	28,636	$	20,881
Royalty interests		29,913		—		909		10,123		18,881
Total	$	97,592	$	18,162	$	909	$	38,759	$	39,762


	Six Months Ended December 31, 2019
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	176,606	$	41,188	$	—	$	63,643	$	71,775
Royalty interests		65,811		—		2,083		15,000		48,728
Total	$	242,417	$	41,188	$	2,083	$	78,643	$	120,503

	Six Months Ended December 31, 2018
	Revenue		Cost of sales		Production taxes		Depletion		Segment gross profit
Stream interests	$	137,716	$	34,689	$	—	$	60,733	$	42,294
Royalty interests		59,869		—		2,201		20,531		37,137
Total	$	197,585	$	34,689	$	2,201	$	81,264	$	79,431

(1)	Excludes depreciation, depletion and amortization

(2)	Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income.

A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands):


	Three Months Ended				Six Months Ended
	December 31,		December 31,		December 31,		December 31,
		2019		2018		2019		2018
Total segment gross profit	$	61,600	$	39,762	$	120,503	$	79,431

Costs and expenses
General and administrative expenses		6,665		7,423		14,108		17,349
Exploration costs		1,514		842		4,140		5,204
Depreciation		114		48		167		94
Operating income		53,307		31,449		102,088		56,784
Fair value changes in equity securities		222		(3,631)		(1,153)		(5,099)
Interest and other income		226		487		1,001		590
Interest and other expense		(2,217)		(7,410)		(5,051)		(15,287)
Income before income taxes	$	51,538	$	20,895	$	96,885	$	36,988

The Company’s revenue by reportable segment for the three and six months ended December 31, 2019 and 2018 is geographically distributed as shown in the following table (amounts in thousands):


	Three Months Ended				Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2019		2018		2019		2018
Stream interests:
Canada	$	38,191	$	32,264	$	75,854	$	47,010
Dominican Republic		23,614		18,230		45,232		37,717
Chile		20,665		7,635		41,269		35,378
Africa		7,155		9,550		14,251		17,611
Total stream interests	$	89,625	$	67,679	$	176,606	$	137,716

Royalty interests:
United States	$	10,012	$	8,284	$	20,614	$	14,340
Canada		8,037		7,536		16,958		17,717
Mexico		9,376		7,837		15,763		15,833
Australia		3,546		3,157		7,348		6,217
Africa		911		532		1,606		1,024
Rest of world		2,136		2,567		3,522		4,738
Total royalty interests	$	34,018	$	29,913	$	65,811	$	59,869
Total revenue	$	123,643	$	97,592	$	242,417	$	197,585