Segmented information

9 Months Ended

Sep. 30, 2021

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 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 (“RB Logistics”).


	Three months ended September 30, 2021						Nine months ended September 30, 2021
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue	$	178,344	$	35,849	$	214,193	$	560,573	$	112,398	$	672,971
Inventory sales revenue		115,489		—		115,489		384,627		—		384,627
Total revenue	$	293,833	$	35,849	$	329,682	$	945,200	$	112,398	$	1,057,598
Costs of services		19,751		13,287		33,038		63,326		44,781		108,107
Cost of inventory sold		102,993		—		102,993		344,763		—		344,763
Selling, general and administrative expenses ("SG&A")		96,194		12,384		108,578		301,956		34,519		336,475
Segment profit	$	74,895	$	10,178	$	85,073	$	235,155	$	33,098	$	268,253
Acquisition-related costs						10,255						16,226
Depreciation and amortization expenses ("D&A")						21,907						64,912
Gain on disposition of property, plant and equipment ("PPE")						(1,068)						(1,311)
Foreign exchange loss						360						788
Operating income					$	53,619					$	187,638
Interest expense						(8,807)						(26,620)
Other income, net						602						2,800
Income tax expense						(13,057)						(42,541)
Net income					$	32,357					$	121,277


	Three months ended September 30, 2020						Nine months ended September 30, 2020
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue	$	188,949	$	33,730	$	222,679	$	543,340	$	96,601	$	639,941
Inventory sales revenue		108,863		—		108,863		353,906		—		353,906
Total revenue	$	297,812	$	33,730	$	331,542	$	897,246	$	96,601	$	993,847
Costs of services		21,733		17,490		39,223		69,018		49,008		118,026
Cost of inventory sold		96,253		—		96,253		320,972		—		320,972
SG&A expenses		103,933		6,253		110,186		290,077		19,126		309,203
Segment profit	$	75,893	$	9,987	$	85,880	$	217,179	$	28,467	$	245,646
D&A expenses						18,436						55,586
Gain on disposition of PPE						(276)						(1,536)
Foreign exchange loss						336						1,330
Operating income					$	67,384					$	190,266
Interest expense						(8,737)						(26,801)
Other income, net						2,280						6,714
Income tax expense						(15,437)						(48,741)
Net income					$	45,490					$	121,438

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.

6. Segmented information (continued)

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


	United
	States		Canada		Europe		Other		Consolidated
Total revenue for the three months ended:
September 30, 2021	$	173,137	$	55,925	$	40,620	$	60,000	$	329,682
September 30, 2020		177,883		58,059		41,891		53,709		331,542
Total revenue for the nine months ended:
September 30, 2021	$	563,941		203,093	$	143,263	$	147,301	$	1,057,598
September 30, 2020		573,001		191,692		115,659		113,495		993,847

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details