RITCHIE BROS AUCTIONEERS INC, 10-Q filed on 8/8/2019
Quarterly Report
v3.19.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2019
Aug. 07, 2019
Document And Entity Information [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2019  
Document Transition Report false  
Entity File Number 001-13425  
Entity Registrant Name Ritchie Bros. Auctioneers Inc  
Entity Incorporation, State or Country Code CA  
Entity Tax Identification Number 98-0626225  
Entity Address, Address Line One 9500 Glenlyon Parkway  
Entity Address, Address Line Two Burnaby  
Entity Address, City or Town British Columbia  
Entity Address, Country CA  
Entity Address, Postal Zip Code V5J 0C6  
City Area Code 778  
Local Phone Number 331-5500  
Title of 12(b) Security Common shares  
Trading Symbol RBA  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   107,853,398
Entity Central Index Key 0001046102  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.19.2
Condensed Consolidated Income Statements - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenue:        
Total revenue $ 393,222,000 $ 308,530,000 $ 696,651,000 $ 568,708,000
Operating expenses:        
Direct expenses 50,268,000 43,033,000 86,337,000 79,690,000
Selling, general and administrative expenses 97,714,000 101,259,000 192,898,000 198,729,000
Acquisition-related costs 38,000 1,399,000 707,000 3,032,000
Depreciation and amortization expenses 17,112,000 16,537,000 34,227,000 32,728,000
Gain on disposition of property, plant and equipment (101,000) (271,000) (250,000) (616,000)
Foreign exchange (gain) loss 403,000 76,000 881,000 (16,000)
Total operating expenses 315,252,000 243,735,000 585,093,000 471,040,000
Operating income 77,970,000 64,795,000 111,558,000 97,668,000
Interest expense (10,117,000) (10,937,000) (20,933,000) (22,247,000)
Other income, net 1,679,000 900,000 3,718,000 1,813,000
Income before income taxes 69,532,000 54,758,000 94,343,000 77,234,000
Income tax expense 15,401,000 9,031,000 22,040,000 14,300,000
Net income 54,131,000 45,727,000 72,303,000 62,934,000
Net income attributable to:        
Stockholders 54,036,000 45,717,000 72,200,000 62,855,000
Non-controlling interests 95,000 10,000 103,000 79,000
Net income $ 54,131,000 $ 45,727,000 $ 72,303,000 $ 62,934,000
Earnings per share attributable to stockholders:        
Basic $ 0.50 $ 0.42 $ 0.66 $ 0.58
Diluted $ 0.49 $ 0.42 $ 0.66 $ 0.58
Weighted average number of shares outstanding:        
Basic 108,707,708 107,864,030 108,725,871 107,610,679
Diluted 109,942,768 109,019,708 109,982,763 108,832,776
Service Revenues [Member]        
Revenue:        
Total revenue $ 234,606,000 $ 214,346,000 $ 406,978,000 $ 390,362,000
Operating expenses:        
Direct expenses 50,268,000 43,033,000 86,337,000 79,690,000
Inventory Sales Revenue [Member]        
Revenue:        
Total revenue 158,616,000 94,184,000 289,673,000 178,346,000
Operating expenses:        
Direct expenses $ 149,818,000 $ 81,702,000 $ 270,293,000 $ 157,493,000
v3.19.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Condensed Consolidated Statements of Comprehensive Income [Abstract]        
Net income $ 54,131 $ 45,727 $ 72,303 $ 62,934
Other comprehensive income (loss), net of income tax:        
Foreign currency translation adjustment 2,457 (12,691) 823 (7,784)
Total comprehensive income 56,588 33,036 73,126 55,150
Total comprehensive income attributable to:        
Stockholders 56,486 33,056 73,028 55,089
Non-controlling interests 102 (20) 98 61
Total comprehensive income $ 56,588 $ 33,036 $ 73,126 $ 55,150
v3.19.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Assets    
Cash and cash equivalents $ 210,429 $ 237,744
Restricted cash 128,565 67,823
Trade and other receivables 338,618 129,257
Inventory 78,829 113,294
Other current assets 64,149 49,055
Income taxes receivable 6,671 6,365
Total current assets 827,261 603,538
Property, plant and equipment 473,036 486,599
Other non-current assets 144,877 29,395
Intangible assets 239,761 245,622
Goodwill 672,505 671,594
Deferred tax assets 17,668 15,648
Total assets 2,375,108 2,052,396
Liabilities and Equity    
Auction proceeds payable 458,116 203,503
Trade and other payables 175,735 201,255
Income taxes payable 5,384 2,312
Short-term debt 8,010 19,896
Current portion of long-term debt 18,235 13,126
Total current liabilities 665,480 440,092
Long-term debt 686,694 698,172
Other non-current liabilities 147,454 41,980
Deferred tax liabilities 38,582 35,519
Total liabilities 1,538,210 1,215,763
Commitments
Contingencies
Contingently redeemable performance share units 1,049 923
Share capital:    
Common stock; no par value, unlimited shares authorized, issued and outstanding shares: 108,958,906 (December 31, 2018: 108,682,030) 150,585 181,780
Additional paid-in capital 54,633 56,885
Retained earnings 680,915 648,255
Accumulated other comprehensive loss (55,449) (56,277)
Stockholders' equity 830,684 830,643
Non-controlling interest 5,165 5,067
Total stockholders' equity 835,849 835,710
Total liabilities and equity $ 2,375,108 $ 2,052,396
v3.19.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
6 Months Ended 12 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Condensed Consolidated Balance Sheets [Abstract]    
Common stock, no par value $ 0 $ 0
Common stock, Shares Authorized, Unlimited Unlimited Unlimited
Common stock, issued shares 107,836,674 108,682,030
Common stock, outstanding shares 107,836,674 108,682,030
v3.19.2
Condensed Consolidated Statements of Changes in Equity - USD ($)
$ in Thousands
Common stock [Member]
Additional paid-in capital ("APIC") [Member]
Retained earnings [Member]
Accumulated other comprehensive loss [Member]
Non-controlling interest ("NCI") [Member]
Contingently redeemable non-controlling interest [Member]
Contingently Redeemable Performance Share Units [Member]
Total
Balance at Dec. 31, 2017 $ 138,582 $ 41,005 $ 602,609 $ (42,514) $ 5,069 $ 9,014 $ 744,751
Balance, shares at Dec. 31, 2017 107,269,783            
Net income     62,855   79   62,934
Other comprehensive loss       (7,766) (18)   (7,784)
Comprehensive income     62,855 (7,766) 61   55,150
Stock option exercises $ 23,155 (5,106)         18,049
Stock option exercises, shares 772,599            
Issuance of common stock related to vesting of share units $ 5,161 (1,662)       (6,856) 3,499
Issuance of common stock related to vesting of share units, shares 159,969            
Stock option compensation expense   4,483         4,483
Modification of PSUs   703 (134)     6,132 569
Equity-classified PSU expense   1,885       4,376 1,885
Equity-classified PSU dividend equivalents   102 (324)     222 (222)
Change in fair value of contingently redeemable PSUs     (77)     77 (77)
Cash dividends paid     (36,588)       (36,588)
Balance at Jun. 30, 2018 $ 166,898 41,410 628,341 (50,280) 5,130 12,965 791,499
Balance, shares at Jun. 30, 2018 108,202,351            
Balance at Mar. 31, 2018 $ 144,387 44,327 601,205 (37,619) 5,150 16,576 757,450
Balance, shares at Mar. 31, 2018 107,471,895            
Net income     45,717   10   45,727
Other comprehensive loss       (12,661) (30)   (12,691)
Comprehensive income     45,717 (12,661) (20)   33,036
Stock option exercises $ 17,350 (3,614)         13,736
Stock option exercises, shares 570,487            
Issuance of common stock related to vesting of share units $ 5,161 (1,662)       6,856 3,499
Issuance of common stock related to vesting of share units, shares 159,969            
Stock option compensation expense   2,140         2,140
Equity-classified PSU expense   207       3,019 207
Equity-classified PSU dividend equivalents   12 (124)     112 (112)
Change in fair value of contingently redeemable PSUs     (114)     114 (114)
Cash dividends paid     (18,343)       (18,343)
Balance at Jun. 30, 2018 $ 166,898 41,410 628,341 (50,280) 5,130 12,965 791,499
Balance, shares at Jun. 30, 2018 108,202,351            
Balance at Dec. 31, 2018 $ 181,780 56,885 648,255 (56,277) 5,067 923 835,710
Balance, shares at Dec. 31, 2018 108,682,030            
Net income     72,200   103   72,303
Other comprehensive loss       828 (5)   823
Comprehensive income     72,200 828 98   73,126
Stock option exercises $ 5,668 (1,544)         $ 4,124
Stock option exercises, shares 181,359           181,359
Issuance of common stock related to vesting of share units $ 5,149 (10,064)         $ (4,915)
Issuance of common stock related to vesting of share units, shares 196,959            
Stock option compensation expense   3,199         3,199
Equity-classified PSU expense   5,810       93 5,810
Equity-classified PSU dividend equivalents   347 (380)     33 (33)
Cash dividends paid     (39,160)       (39,160)
Shares repurchased $ (42,012)           (42,012)
Shares repurchased, shares (1,223,674)            
Balance at Jun. 30, 2019 $ 150,585 54,633 680,915 (55,449) 5,165 1,049 835,849
Balance, shares at Jun. 30, 2019 107,836,674            
Balance at Mar. 31, 2019 $ 189,297 50,054 646,614 (57,899) 5,063 984 833,129
Balance, shares at Mar. 31, 2019 108,958,906            
Net income     54,036   95   54,131
Other comprehensive loss       2,450 7   2,457
Comprehensive income     54,036 2,450 102   56,588
Stock option exercises $ 3,190 (694)         2,496
Stock option exercises, shares 98,433            
Issuance of common stock related to vesting of share units $ 110           110
Issuance of common stock related to vesting of share units, shares 3,009            
Stock option compensation expense   1,660         1,660
Equity-classified PSU expense   3,488       47 3,488
Equity-classified PSU dividend equivalents   125 (143)     18 (18)
Cash dividends paid     (19,592)       (19,592)
Shares repurchased $ (42,012)           (42,012)
Shares repurchased, shares (1,223,674)            
Balance at Jun. 30, 2019 $ 150,585 $ 54,633 $ 680,915 $ (55,449) $ 5,165 $ 1,049 $ 835,849
Balance, shares at Jun. 30, 2019 107,836,674            
v3.19.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Operating activities:    
Net income $ 72,303 $ 62,934
Adjustments for items not affecting cash:    
Depreciation and amortization expenses 34,227 32,728
Stock option compensation expense 3,199 4,483
Equity-classified PSU expense 5,903 6,261
Deferred income tax expense 1,056 922
Unrealized foreign exchange (gain) loss (51) 92
Gain on disposition of property, plant and equipment (250) (616)
Amortization of debt issuance costs 1,765 2,073
Other, net 6,167 (4,263)
Net changes in operating assets and liabilities 36,036 3,244
Net cash provided by operating activities 160,355 107,858
Investing activities:    
Property, plant and equipment additions (4,618) (5,802)
Intangible asset additions (12,175) (12,273)
Proceeds on disposition of property, plant and equipment 583 1,633
Other, net (1,000) (4,674)
Net cash used in investing activities (17,210) (21,116)
Financing activities:    
Share repurchase (42,012)  
Dividends paid to stockholders (39,160) (36,588)
Issuances of share capital 4,124 18,049
Payment of withholding taxes on issuance of shares (4,915) (3,357)
Proceeds from short-term debt 12,879 308
Repayment of short-term debt (24,985) (3,372)
Repayment of long-term debt (14,514) (56,555)
Repayment of finance lease obligations (2,937) (1,774)
Other, net   (1,176)
Net cash used in financing activities (111,520) (84,465)
Effect of changes in foreign currency rates on cash, cash equivalents, and restricted cash 1,802 (4,113)
Increase (decrease) 33,427 (1,836)
Beginning of period 305,567 331,116
Cash, cash equivalents, and restricted cash, end of period $ 338,994 $ 329,280
v3.19.2
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2019
Summary of Significant Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

1.    Summary of significant accounting policies

Ritchie Bros. Auctioneers Incorporated and its subsidiaries (collectively referred to as the “Company”) provide global asset management and disposition services, offering customers end-to-end solutions for buying and selling used industrial equipment and other durable assets through its unreserved live on site auctions, online marketplaces, listing services, and private brokerage services. Ritchie Bros. Auctioneers Incorporated is a company incorporated in Canada under the Canada Business Corporations Act, whose shares are publicly traded on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”).

(a) Basis of preparation

These unaudited condensed consolidated interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”). They include the accounts of Ritchie Bros. Auctioneers Incorporated and its subsidiaries from their respective dates of formation or acquisition. All significant intercompany balances and transactions have been eliminated.

Certain information and footnote disclosure required by US GAAP for complete annual financial statements have been omitted and, therefore, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2018, included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly, in all material respects, the Company’s consolidated financial position, results of operations, cash flows and changes in equity for the interim periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

(b) Revenue recognition

Revenues are comprised of:

Service revenue, including the following:
i.Revenue from auction and marketplace (“A&M”) activities, including commissions earned at our live auctions, online marketplaces, and private brokerage services where we act as an agent for consignors of equipment and other assets, and various auction-related fees, including listing and buyer transaction fees; and
ii.Other services revenue, including revenue from listing services, refurbishment, logistical services, financing, appraisal fees and other ancillary service fees; and
Inventory sales revenue as part of A&M activities

The Company recognizes revenue when control of the promised goods or services is transferred to our customers, or upon completion of the performance obligation, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For live event-based auctions or online auctions, revenue is recognized when the auction sale is complete and the Company has determined that the sale proceeds are collectible. Revenue is measured at the fair value of the consideration received or receivable and is shown net of value-added tax and duties.

1.    Summary of significant accounting policies (continued)

(b) Revenue recognition (continued)

Service revenue

Commissions from sales at the Company’s auctions represent the percentage earned by the Company on the gross proceeds from equipment and other assets sold at auction. The majority of the Company’s commissions are earned as a pre-negotiated fixed rate of the gross selling price. Other commissions from sales at the Company’s auctions are earned from underwritten commission contracts, when the Company guarantees a certain level of proceeds to a consignor.

The Company accepts equipment and other assets on consignment stimulating buyer interest through professional marketing techniques, and matches sellers (also known as consignors) to buyers through the auction or private sale process. Prior to offering an item for sale on its online marketplaces, the Company also performs inspections.

Following the sale of the item, the Company invoices the buyer for the purchase price of the asset, taxes, and, if applicable, the buyer transaction fee, collects payment from the buyer, and remits the proceeds to the seller, net of the seller commissions, applicable taxes, and applicable fees. Commissions are calculated as a percentage of the hammer price of the property sold at auction. Fees are also charged to sellers for listing and inspecting equipment. Other revenue earned in the process of conducting the Company’s auctions include administrative, documentation, and advertising fees.

On the fall of the auctioneer’s hammer, the highest bidder becomes legally obligated to pay the full purchase price, which is the hammer price of the property purchased and the seller is legally obligated to relinquish the property in exchange for the hammer price less any seller’s commissions. Commission and fee revenue are recognized on the date of the auction sale upon the fall of the auctioneer’s hammer.

Under the standard terms and conditions of its auction sales, the Company is not obligated to pay a consignor for property that has not been paid for by the buyer, provided the property has not been released to the buyer. If the buyer defaults on its payment obligation, also referred to as a collapsed sale, the sale is cancelled in the period in which the determination is made, and the property is returned to the consignor or placed in a later event-based or online auction. Historically cancelled sales have not been material.

Online marketplace commission revenue is reduced by a provision for disputes, which is an estimate of disputed items that are expected to be settled at a cost to the Company, related to settlements of discrepancies under the Company’s equipment condition certification program. The equipment condition certification refers to a written inspection report provided to potential buyers that reflects the condition of a specific piece of equipment offered for sale, and includes ratings, comments, and photographs of the equipment following inspection by one of the Company’s equipment inspectors.

The equipment condition certification provides that a buyer may file a written dispute claim during an eligible dispute period for consideration and resolution at the sole determination of the Company if the purchased equipment is not substantially in the condition represented in the inspection report. Typically disputes under the equipment condition certification program are settled with minor repairs or additional services, such as washing or detailing the item; the estimated costs of such items or services are included in the provision for disputes.

Commission revenue are recorded net of commissions owed to third parties, which are principally the result of situations when the commission is shared with a consignor in an auction guarantee risk and reward sharing arrangement.

1.    Summary of significant accounting policies (continued)

(b) Revenue recognition (continued)

Service revenue (continued)

Underwritten commission contracts can take the form of guarantee contracts. Guarantee contracts typically include a pre-negotiated percentage of the guaranteed gross proceeds plus a percentage of proceeds in excess of the guaranteed amount. If actual auction proceeds are less than the guaranteed amount, commission is reduced; if proceeds are sufficiently lower, the Company can incur a loss on the sale. Losses, if any, resulting from guarantee contracts are recorded in the period in which the relevant auction is completed. If a loss relating to a guarantee contract held at the period end to be sold after the period end is known or is probable and estimable at the financial statement reporting date, the loss is accrued in the financial statements for that period. The Company’s exposure from these guarantee contracts fluctuates over time.

Other services revenue also includes fees for refurbishment, logistical services, financing, appraisal fees and other ancillary service fees. Fees are recognized in the period in which the service is provided to the customer.

Inventory sales revenue

Underwritten commission contracts can take the form of inventory contracts. Revenue related to inventory contracts is recognized in the period in which the sale is completed, title to the property passes to the purchaser and the Company has fulfilled any other obligations that may be relevant to the transaction. In its role as auctioneer, the Company auctions its inventory to equipment buyers through the auction process. Following the sale of the item, the Company invoices the buyer for the purchase price of the asset, taxes, and, if applicable, the buyer transaction fee, and collects payment from the buyer.

On the fall of the auctioneer’s hammer, the highest bidder becomes legally obligated to pay the full purchase price, which is the hammer price of the property purchased. Title to the property is transferred in exchange for the hammer price, and if applicable, the buyer transaction fee plus applicable taxes.

(c) Costs of services

Costs of services are comprised of expenses incurred in direct relation to conducting auctions (“direct expenses”), earning online marketplace revenue, and earning other fee revenue. Direct expenses include direct labour, buildings and facilities charges, travel, advertising and promotion costs and fees paid to unrelated third parties who introduce the Company to equipment sellers who sell property at the Company’s auctions and marketplaces.

Costs of services incurred to earn online marketplace revenue in addition to the costs listed above also include inspection costs. Inspections are generally performed at the seller’s physical location. The cost of inspections includes payroll costs and related benefits for the Company’s employees that perform and manage field inspection services, the related inspection report preparation and quality assurance costs, fees paid to contractors who perform field inspections, related travel and incidental costs for the Company’s inspection service organization, and office and occupancy costs for its inspection services personnel. Costs of earning online marketplace revenue also include costs for the Company’s customer support, online marketplace operations, logistics, title and lien investigation functions.

Costs of services incurred in earning other fee revenue include ancillary and logistical service expenses, direct labour (including commissions on sales), software maintenance fees, and materials. Costs of services exclude depreciation and amortization expenses.

1.    Summary of significant accounting policies (continued)

(d) Cost of inventory sold

Cost of inventory sold includes the purchase price of assets sold for the Company’s own account and is determined using a specific identification basis.

(e) Share-based payments

The Company classifies a share-based payment award as an equity or liability payment based on the substantive terms of the award and any related arrangement.

Equity-classified share-based payments

Share unit plans

The Company has a senior executive performance share unit (“PSU”) plan and an employee PSU plan that provides for the award of PSUs to certain senior executives and employees, respectively, of the Company. The Company has the option to settle certain share unit awards in cash or shares and expects to settle them in shares. The cost of PSUs granted is measured at the fair value of the underlying PSUs at the grant date. PSUs vest based on the passage of time and achievement of performance criteria.

The Company also has a senior executive restricted share unit (“RSU”) plan and an employee RSU plan that provides for the award of RSUs to certain senior executives and employees, respectively, of the Company. The Company has the option to settle certain share unit awards in cash or shares and expects to settle all grants on and after 2017 in shares. The cost of RSUs granted is measured at the fair value based on the fair value of the Company’s common shares at the grant date. RSUs vest based on the passage of time and include restrictions related to employment.

This fair value of awards expected to vest under these plans is expensed over the respective remaining service period of the individual awards, on an accelerated recognition basis, with the corresponding increase to APIC recorded in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in earnings, such that the consolidated expense reflects the revised estimate, with a corresponding adjustment to equity. Dividend equivalents on the equity-classified PSUs and RSUs are recognized as a reduction to retained earnings over the service period.

Stock option plans

The Company has three stock option compensation plans that provide for the award of stock options to selected employees, directors and officers of the Company. The cost of options granted is measured at the fair value of the underlying option at the grant date using the Black-Scholes option pricing model. The fair value of options expected to vest under these plans is expensed over the respective remaining service period of the individual awards, on an accelerated recognition basis, with the corresponding increase to APIC recorded in equity. Upon exercise, any consideration paid on exercise of the stock options and amounts fully amortized in APIC are credited to the common shares.

1.    Summary of significant accounting policies (continued)

(e) Share-based payments (continued)

Liability-classified share-based payments

The Company maintains other share unit compensation plans that vest over a period of up to three years after grant. Under those plans, the Company is either required or expects to settle vested awards on a cash basis or by providing cash to acquire shares on the open market on the employee’s behalf, where the settlement amount is determined based on the average price of the Company’s common shares prior to the vesting date or, in the case of deferred share unit (“DSU”) recipients, following cessation of service on the Board of Directors.

These awards are classified as liability awards, measured at fair value at the date of grant and re-measured at fair value at each reporting date up to and including the settlement date. The determination of the fair value of the share units under these plans is described in note 16. The fair value of the awards is expensed over the respective vesting period of the individual awards with recognition of a corresponding liability. Changes in fair value after vesting are recognized through compensation expense. Compensation expense reflects estimates of the number of instruments expected to vest.

The impact of forfeitures and fair value revisions, if any, are recognized in earnings such that the cumulative expense reflects the revisions, with a corresponding adjustment to the settlement liability. Liability-classified share unit liabilities due within 12 months of the reporting date are presented in trade and other payables while settlements due beyond 12 months of the reporting date are presented in other non-current liabilities.

(f) Leases

The Company determines if an arrangement is a lease at inception. The Company may have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain vehicle and equipment leases, management applies a portfolio approach to account for the right-of-use (“ROU”) assets and liabilities for assets leased with similar lease terms.

Operating leases

Operating leases are included in other non-current assets, trade and other payables, and other non-current liabilities in our consolidated balance sheets if the initial lease term is greater than 12 months. For leases with an initial term of 12 months or less the Company recognizes those lease payments on a straight-line basis over the lease term.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, management uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Management uses the implicit rate when readily determinable. The Company includes lease payments for renewal or termination options in its determination of lease term, ROU asset, and lease liability when it is reasonably certain that the Company will exercise these options. Lease expense for lease payments is recognized on a straight-line basis over the lease term and are included in Costs of services or Selling, general, and administrative (“SG&A”) expenses.

1.    Summary of significant accounting policies (continued)

(f) Leases (continued)

Finance leases

Finance lease ROU assets are included in property, plant and equipment, trade and other payables, and other non-current liabilities in our consolidated balance sheets.

Finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, management uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Management uses the implicit rate when readily determinable. The Company includes lease payments for renewal, purchase options, or termination options in its determination of lease term, ROU asset, and lease liability when it is reasonably certain that the Company will exercise these options. Finance lease ROU assets are generally amortized over the lease term and are included in depreciation expense. The interest on the finance lease liabilities is included in interest expense.

(g) Inventories

Inventory consists of equipment and other assets purchased for resale in an upcoming live on site auction or online marketplace event. The Company typically purchases inventory for resale through a competitive process where the consignor or vendor has determined this to be the preferred method of disposition through the auction process. In addition, certain jurisdictions require auctioneers to hold title to assets and facilitate title transfer on sale. Inventory is valued at the lower of cost and net realizable value where net realizable value represents the expected sale price upon disposition less make-ready costs and the costs of disposal and transportation. As part of its government business, the Company purchases inventory for resale as part of its commitment to purchase certain surplus government property (note 18). The significant elements of cost include the acquisition price of the inventory and make-ready costs to prepare the inventory for sale that are not selling expenses and in-bound transportation costs. Write-downs to the carrying value of inventory are recorded in cost of inventory sold on the consolidated income statement.

(h) Impairment of long-lived and indefinite-lived assets

Long-lived assets, comprised of property, plant and equipment and intangible assets subject to amortization, are assessed for impairment whenever events or circumstances indicate that their carrying value may not be recoverable. For the purpose of impairment testing, long-lived assets are grouped and tested for recoverability at the lowest level that generates independent cash flows. An impairment loss is recognized when the carrying value of the assets or asset groups is greater than the future projected undiscounted cash flows. The impairment loss is calculated as the excess of the carrying value over the fair value of the asset or asset group. Fair value is based on valuation techniques or third party appraisals. Significant estimates and judgments are applied in determining these cash flows and fair values.

Indefinite-lived intangible assets are tested annually for impairment as of December 31, and between annual tests if indicators of potential impairment exist. The Company has the option of performing a qualitative assessment to first determine whether the quantitative impairment test is necessary. This involves an assessment of qualitative factors to determine the existence of events or circumstances that would indicate whether it is more likely than not that the carrying amount of the indefinite-lived intangible asset is less than its fair value. If the qualitative assessment indicates it is not more likely than not that the carrying amount is less than its fair value, a quantitative impairment test is not required. Where a quantitative impairment test is required, the procedure is to compare the indefinite-lived intangible asset’s fair value with its carrying amount. An impairment loss is recognized as the difference between the indefinite-lived intangible asset’s carrying amount and its fair value.

1.    Summary of significant accounting policies (continued)

(i) Goodwill

Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to the assets acquired and liabilities assumed in a business combination.

Goodwill is not amortized, but it is tested annually for impairment at the reporting unit level as of December 31, and between annual tests if indicators of potential impairment exist. The Company has the option of performing a qualitative assessment of a reporting unit to first determine whether the quantitative impairment test is necessary. This involves an assessment of qualitative factors to determine the existence of events or circumstances that would indicate whether it is more likely than not that the carrying amount of the reporting unit to which goodwill belongs is less than its fair value. If the qualitative assessment indicates it is not more likely than not that the reporting unit’s carrying amount is less than its fair value, a quantitative impairment test is not required.

If a quantitative impairment test is required, the procedure is to identify potential impairment by comparing the reporting unit’s fair value with its carrying amount, including goodwill. The reporting unit’s fair value is determined using various valuation approaches and techniques that involve assumptions based on what the Company believes a hypothetical marketplace participant would use in estimating fair value on the measurement date. An impairment loss is recognized as the difference between the reporting unit’s carrying amount and its fair value. If the difference between the reporting unit’s carrying amount and fair value is greater than the amount of goodwill allocated to the reporting unit, the impairment loss is restricted by the amount of the goodwill allocated to the reporting unit.

(j) New and amended accounting standards

Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). The Company adopted the new standard utilizing the “optional transition method”, which permits the Company to apply the new lease standard at the adoption date. As the optional transition method is being utilized, the Company’s reporting for the comparative periods presented in the financial statements in which it adopts Topic 842 will continue to be reported pursuant to Topic 840.

On adoption, the Company elected to utilize the package of practical expedients permitted within the new standard, which among other things, allows the Company to carryforward the historical lease classification. In addition, the Company elected to utilize the hindsight practical expedient to determine the reasonably certain lease term for existing leases. While lease classification will remain unchanged, hindsight will result in generally longer accounting lease terms where the Company has determined that it is reasonably certain to exercise certain renewal options and thereby increasing the useful lives of the corresponding leasehold improvements. The Company also elected not to recognize the lease assets and liabilities for leases with an initial term of 12 months or less and will recognize those lease payments on a straight-line basis over the lease term.

On adoption of the new standard the Company recognized ROU assets of $103,897,000 with a corresponding increase in operating lease liability. Offsetting the increase in ROU assets recognized was the reclassification of prepaid rent and deferred rent liabilities to ROU assets of $5,752,000. There was no impact on retained earnings or cash flows.

The adoption of the standard had no impact on our debt-covenant compliance under our current agreements.

1.    Summary of significant accounting policies (continued)

(k) Recent accounting standards not yet adopted

(i)In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, which replaces the ‘incurred loss methodology’ credit impairment model with a new forward-looking “methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.” ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is only permitted for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements.
(ii)In April 2019, the FASB issued ASU 2019-04, Codification Improvement to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments to Topic 326 in this update clarify or address stakeholders’ specific issues about certain aspects of the amendments in update 2016-13. The Company is evaluating this new guidance to determine the impact that it will have on its consolidated financial statements.
v3.19.2
Significant Judgments, Estimates and Assumptions
6 Months Ended
Jun. 30, 2019
Significant Judgments, Estimates and Assumptions [Abstract]  
Significant Judgments, Estimates and Assumptions

2.    Significant judgments, estimates and assumptions

The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.

Future differences arising between actual results and the judgments, estimates and assumptions made by the Company at the reporting date, or future changes to estimates and assumptions, could necessitate adjustments to the underlying reported amounts of assets, liabilities, revenues and expenses in future reporting periods.

Judgments, estimates and underlying assumptions are evaluated on an ongoing basis by management, and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. However, existing circumstances and assumptions about future developments may change due to market changes or circumstances and such changes are reflected in the assumptions when they occur. Significant items subject to estimates include purchase price allocations, the carrying amounts of goodwill, the useful lives of long-lived assets, share based compensation, the determination of lease term and lease liabilities, deferred income taxes, reserves for tax uncertainties, and other contingencies.

v3.19.2
Seasonality
6 Months Ended
Jun. 30, 2019
Seasonality [Abstract]  
Seasonality

3.    Seasonality

The Company’s operations are both seasonal and event driven. Revenues tend to be the highest during the second and fourth calendar quarters. The Company generally conducts more live, on site auctions during these quarters than during the first and third calendar quarters. Late December through mid-February and mid-July through August are traditionally less active periods. Online volumes are similarly affected as supply of used equipment is lower in the third quarter as it is actively being used and not available for sale.

v3.19.2
Segmented Information
6 Months Ended
Jun. 30, 2019
Segmented Information [Abstract]  
Segmented Information

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, 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

Depreciation and amortization expenses ("D&A")

 

  

 

  

 

17,112

 

  

 

  

 

34,227

Gain on disposition of property, plant and equipment ("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

4.    Segmented information (continued)

Three months ended June 30, 2018

Six months ended June 30, 2018

    

A&M

    

Other

    

Consolidated

    

A&M

    

Other

    

Consolidated

Service revenue

$

180,067

$

34,279

$

214,346

$

328,472

$

61,890

$

390,362

Inventory sales revenue

 

94,184

 

 

94,184

 

178,346

 

 

178,346

Total revenue

274,251

 

34,279

 

308,530

$

506,818

$

61,890

 

568,708

Costs of services

 

21,381

 

21,652

 

43,033

 

42,829

 

36,861

 

79,690

Cost of inventory sold

 

81,702

 

 

81,702

 

157,493

 

 

157,493

SG&A expenses

 

95,959

 

5,300

 

101,259

 

188,961

 

9,768

 

198,729

Segment profit

$

75,209

 

7,327

 

82,536

$

117,535

$

15,261

$

132,796

Acquisition-related costs

 

  

 

  

 

1,399

 

  

 

  

 

3,032

D&A expenses

 

  

 

  

 

16,537

 

  

 

  

 

32,728

Gain on disposition of PPE

 

  

 

  

 

(271)

 

  

 

  

 

(616)

Foreign exchange (gain) loss

 

  

 

  

 

76

 

  

 

  

 

(16)

Operating income

 

  

 

  

$

64,795

 

  

 

  

$

97,668

Interest expense

 

  

 

  

 

(10,937)

 

  

 

  

 

(22,247)

Other income, net

 

  

 

  

 

900

 

  

 

  

 

1,813

Income tax expense

 

  

 

  

 

(9,031)

 

  

 

  

 

(14,300)

Net income

 

  

 

  

$

45,727

 

  

 

  

$

62,934

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, 2019

$

212,233

$

90,410

$

47,283

$

43,296

$

393,222

June 30, 2018

142,931

 

82,776

 

44,826

 

37,997

 

308,530

Total revenue for the six months ended:

 

  

 

  

 

  

 

  

 

  

June 30, 2019

 

395,806

 

121,940

 

102,068

 

76,837

 

696,651

June 30, 2018

 

278,499

 

148,585

 

79,398

 

62,226

 

568,708

v3.19.2
Revenues
6 Months Ended
Jun. 30, 2019
Revenues [Abstract]  
Revenues

5.    Revenue

The Company’s revenue from the rendering of services is as follows:

Three months ended

Six months ended

June 30, 

June 30, 

2019

2018

2019

2018

Service revenue:

    

  

    

  

    

  

    

  

Commissions

$

134,466

$

124,697

$

226,746

$

225,991

Fees

 

100,140

 

89,649

 

180,232

 

164,371

 

234,606

 

214,346

 

406,978

 

390,362

Inventory sales revenue

 

158,616

 

94,184

 

289,673

 

178,346

$

393,222

$

308,530

$

696,651

$

568,708

v3.19.2
Operating Expenses
6 Months Ended
Jun. 30, 2019
Operating Expenses [Abstract]  
Operating Expenses

6.    Operating expenses

Costs of services

Three months ended

Six months ended

June 30, 

June 30, 

    

2019

    

2018

    

2019

    

2018

Ancillary and logistical service expenses

$

16,472

  

$

19,980

$

30,231

  

$

34,560

Employee compensation expenses

14,906

 

10,931

25,713

 

19,950

Buildings, facilities and technology expenses

2,172

 

2,663

4,306

 

5,290

Travel, advertising and promotion expenses

12,807

 

7,806

18,675

 

14,614

Other costs of services

3,911

 

1,653

7,412

 

5,276

$

50,268

$

43,033

$

86,337

$

79,690

SG&A expenses

Three months ended

Six months ended

 

June 30, 

 

June 30, 

    

2019

    

2018

    

2019

    

2018

Employee compensation expenses

$

63,889

 

66,699

$

125,353

$

129,992

Buildings, facilities and technology expenses

 

14,582

 

15,436

 

30,497

 

30,709

Travel, advertising and promotion expenses

 

9,225

 

8,800

 

18,367

 

18,519

Professional fees

 

4,155

 

5,388

 

8,230

 

9,655

Other SG&A expenses

 

5,863

 

4,936

 

10,451

 

9,854

$

97,714

 

$

101,259

$

192,898

$

198,729

Acquisition-related costs

Acquisition-related costs consist of operating expenses directly incurred as part of a business combination, due diligence and integration planning related to the IronPlanet acquisition, and continuing employment costs that are recognized separately from our business combinations.

Three months ended

Six months ended

June 30, 

June 30, 

    

2019

    

2018

    

2019

    

2018

IronPlanet:

  

 

  

  

 

  

Other acquisition-related costs

$

  

$

456

  

$

82

  

$

1,095

Other acquisitions:

  

 

  

  

 

  

Continuing employment costs

 

885

  

87

 

  

1,853

Other acquisition-related costs

38

 

58

  

538

 

  

84

$

38

$

1,399

$

707

 

$

3,032

Depreciation and amortization expenses

Three months ended

Six months ended

    

June 30, 

    

June 30, 

    

2019

    

2018

    

2019

    

2018

Depreciation expense

$

7,157

$

7,292

$

14,325

$

14,208

Amortization expense

 

9,955

 

9,245

 

19,902

 

18,520

$

17,112

$

16,537

$

34,227

$

32,728

v3.19.2
Income Taxes
6 Months Ended
Jun. 30, 2019
Income Taxes [Abstract]  
Income Taxes

7.    Income taxes

At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. The estimate reflects, among other items, management’s best estimate of operating results. It does not include the estimated impact of foreign exchange rates or unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes.

For the three months ended June 30, 2019, income tax expense was $15,401,000, compared to an income tax expense of $9,031,000 for the same period in 2018. The effective tax rate was 22% in the second quarter of 2019, compared to 16% in the second quarter of 2018. The effective tax rate increased in the second quarter of 2019 compared to the second quarter of 2018 primarily due to impacts of the U.S. tax reform and a greater proportion of annual income subject to tax in jurisdictions with higher tax rates.

For the six months ended June 30, 2019, income tax expense was $22,040,000, compared to an income tax expense of $14,300,000 for the same period in 2018. The effective tax rate was 23% for the six months ended June 30, 2019, compared to 19% for the six months ended June 30, 2018. The effective tax rate increased in the six months ended June 30, 2019 compared to the six months ended June 30, 2018 primarily due to impacts of the U.S. tax reform and a greater proportion of annual income subject to tax in jurisdictions with higher tax rates.

The Tax Cuts and Jobs Act, or TCJA, was enacted on December 22, 2017. It is possible that additional legislation, regulations and/or guidance may be issued, and possibly with retroactive effect, in the future that may result in additional adjustments to the tax expense recorded related to the TCJA.

v3.19.2
Earnings Per Share Attributable to Stockholders
6 Months Ended
Jun. 30, 2019
Earnings Per Share Attributable to Stockholders [Abstract]  
Earnings Per Share Attributable to Stockholders

8.    Earnings per share attributable to stockholders

Basic earnings per share (“EPS”) attributable to stockholders was calculated by dividing the net income attributable to stockholders by the weighted average (“WA”) number of common shares outstanding during the period. Diluted EPS attributable to stockholders was calculated by dividing the net income attributable to stockholders by the WA number of shares of common stock outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include unvested PSUs, RSUs, and outstanding stock options. The dilutive effect of potentially dilutive securities is reflected in diluted EPS by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities.

Three months ended

Six months ended

June 30, 2019

June 30, 2019

Net income to

WA

Per

Net income

WA

Per

 

attributable

 

number

 

share

 

attributable to

 

number

 

share

    

stockholders

    

of shares

    

amount

    

stockholders

    

of shares

    

amount

Basic

$

54,036

 

108,707,708

$

0.50

$

72,200

 

108,725,871

$

0.66

Effect of dilutive securities:

 

  

 

  

 

  

 

  

 

  

 

  

Share units

 

 

442,601

 

 

 

464,613

 

Stock options

 

 

792,459

 

(0.01)

 

 

792,279

 

Diluted

$

54,036

 

109,942,768

$

0.49

$

72,200

 

109,982,763

$

0.66

8.    Earnings per share attributable to stockholders (continued)

Three months ended

    

Six months ended

June 30, 2018

June 30, 2018

Net income

WA

Per

Net income

WA

Per

 

attributable to

 

number

 

share

 

attributable to

 

number

 

share

    

stockholders

    

of shares

    

amount

    

stockholders

    

of shares

    

amount

Basic

$

45,717

 

107,864,030

$

0.42

$

62,855

 

107,610,679

$

0.58

Effect of dilutive securities:

 

  

 

  

 

  

 

  

 

  

 

  

Share units

 

 

314,618

 

 

 

336,353

 

Stock options

 

 

841,060

 

 

 

885,744

 

Diluted

$

45,717

 

109,019,708

$

0.42

$

62,855

 

108,832,776

$

0.58

v3.19.2
Supplemental Cash Flow Information
6 Months Ended
Jun. 30, 2019
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information

9.    Supplemental cash flow information

Six months ended June 30,

    

2019

    

2018

Trade and other receivables

$

(208,486)

$

(100,339)

Inventory

 

33,584

 

(27,801)

Advances against auction contracts

 

188

 

261

Prepaid expenses and deposits

 

739

 

(2,547)

Income taxes receivable

 

(306)

 

6,430

Auction proceeds payable

 

252,765

 

129,008

Trade and other payables

 

(40,263)

 

(11,910)

Income taxes payable

 

3,341

 

6,585

Share unit liabilities

 

 

1,216

Other

 

(5,526)

 

2,341

Net changes in operating assets and liabilities

$

36,036

$

3,244

Six months ended June 30, 

    

2019

    

2018

Interest paid, net of interest capitalized

$

19,024

$

20,058

Interest received

 

1,918

 

1,229

Net income taxes paid

 

18,455

 

3,547

Non-cash purchase of property, plant and equipment under capital lease

$

8,335

$

3,012

June 30, 

December 31, 

    

2019

    

2018

Cash and cash equivalents

$

210,429

$

237,744

Restricted cash

 

128,565

67,823

Cash, cash equivalents, and restricted cash

$

338,994

$

305,567

v3.19.2
Fair Value Measurement
6 Months Ended
Jun. 30, 2019
Fair Value Measurement [Abstract]  
Fair Value Measurement

10.    Fair value measurement

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement or disclosure:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at measurement date;
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3: Unobservable inputs for the asset or liability.

  

June 30, 2019

December 31, 2018

Carrying

Carrying

    

Category

    

amount

    

Fair value

    

amount

    

Fair value

Fair values disclosed:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

 

Level 1

$

210,429

$

210,429

$

237,744

$

237,744

Restricted cash

 

Level 1

 

128,565

 

128,565

 

67,823

 

67,823

Short-term debt

 

Level 2

 

8,010

 

8,010

 

19,896

 

19,896

Long-term debt

 

  

 

  

 

  

 

  

 

  

Senior unsecured notes

 

Level 1

 

490,027

 

516,888

 

489,136

 

487,813

Term loans

 

Level 2

 

214,902

 

216,802

 

222,162

 

224,582

The carrying value of the Company’s cash and cash equivalents, restricted cash, trade and other receivables, advances against auction contracts, auction proceeds payable, trade and other payables, and short term debt approximate their fair values due to their short terms to maturity. The carrying value of the term loans, before deduction of deferred debt issue costs, approximates their fair value as the interest rates on the loans were short-term in nature. The fair value of the senior unsecured notes is determined by reference to a quoted market price.

v3.19.2
Other Current Assets
6 Months Ended
Jun. 30, 2019
Other Current Assets [Abstract]  
Other Current Assets

11.    Other current assets

June 30, 

December 31, 

    

2019

    

2018

Advances against auction contracts

$

15,364

$

15,558

Assets held for sale

 

30,983

 

15,051

Prepaid expenses and deposits

 

17,802

 

18,446

$

64,149

$

49,055

Assets held for sale

Balance, December 31, 2018

$

15,051

Reclassified from (to) property, plant and equipment

 

15,932

Balance, June 30, 2019

$

30,983

As at June 30, 2019, the Company’s assets held for sale consisted of four excess properties located in the United States. Management made the strategic decision to sell these properties to maximize the Company’s return on invested capital. The estimated sales proceeds are expected to be in excess of the current book value. The properties have been actively marketed for sale, and management expects the sales to be completed within 12 months of June 30, 2019. These properties belong to the A&M reportable segment.

v3.19.2
Other Non-current Assets
6 Months Ended
Jun. 30, 2019
Other Non-current Assets [Abstract]  
Other Non-current Assets

12.    Other non-current assets

June 30, 

December 31, 

    

2019

    

2018

Right-of-use assets

 

$

114,243

 

$

Tax receivable

 

 

12,675

 

 

12,705

Equity-accounted investments

 

 

4,238

 

 

4,010

Deferred debt issue costs

 

 

1,725

 

 

2,017

Other

 

 

11,996

 

 

10,663

 

$

144,877

 

$

29,395

v3.19.2
Debt
6 Months Ended
Jun. 30, 2019
Debt [Abstract]  
Debt

13.    Debt

Carrying amount

 

June 30, 

 

December 31, 

    

2019

    

2018

Short-term debt

$

8,010

$

19,896

Long-term debt:

 

  

 

  

Term loans:

 

  

 

  

Denominated in Canadian dollars, secured, bearing interest at a weighted average rate of 3.974%, due in monthly installments of interest only and quarterly installments of principal, maturing in October 2021

 

164,112

 

161,891

Denominated in United States dollars, secured, bearing interest at a weighted average rate of 4.398%, due in weekly installments of interest only and quarterly installments of principal, maturing in October 2021

 

52,690

 

62,690

Less: unamortized debt issue costs

 

(1,900)

 

(2,419)

Senior unsecured notes:

 

  

 

  

Bearing interest at 5.375% due in semi-annual installments, with the full amount of principal due in January 2025

 

500,000

 

500,000

Less: unamortized debt issue costs

 

(9,973)

 

(10,864)

Total long-term debt

 

704,929

 

711,298

Total debt

$

712,939

$

731,194

Long-term debt:

 

  

 

  

Current portion

$

18,235

$

13,126

Non-current portion

 

686,694

 

698,172

Total long-term debt

$

704,929

$

711,298

During the three and six months ended June 30, 2019, the Company made voluntary prepayments totalling $nil and $10,000,000, respectively (2018 - $25,000,000 and $50,000,000, respectively) on the term loan denominated in United States dollars. Prepayments are applied against future scheduled mandatory payments. The amount available pursuant to the term loan facility was only available to finance the acquisition of IronPlanet and will not be available for other corporate purposes upon repayment of amounts borrowed under that facility.

Short-term debt is comprised of drawings in different currencies on the Company’s committed revolving credit facilities, and for the three months ended June 30, 2019, have a weighted average interest rate of 2.1% (December 31, 2018: 2.3%).

As at June 30, 2019, the Company had unused committed revolving credit facilities aggregating $485,960,000 of which $481,251,000 is available until October 27, 2021.

v3.19.2
Other Non-current Liabilities
6 Months Ended
Jun. 30, 2019
Other Non-current Liabilities [Abstract]  
Other Non-current Liabilities

14.    Other non-current liabilities

June 30, 

December 31, 

    

2019

    

2018

Operating lease liability

$

109,014

$

Tax payable

 

20,464

 

22,583

Finance lease liability

 

14,710

 

10,146

Other

 

3,266

 

9,251

$

147,454

$

41,980

v3.19.2
Equity and Dividends
6 Months Ended
Jun. 30, 2019
Equity and Dividends [Abstract]  
Equity and Dividends

15.    Equity and dividends

Share capital

Preferred stock

Unlimited number of senior preferred shares, without par value, issuable in series.

Unlimited number of junior preferred shares, without par value, issuable in series.

All issued shares are fully paid. No preferred shares have been issued.

Share repurchase

There were 1,223,674 common shares repurchased for $42,012,000 during the three months ended June 30, 2019 (June 30, 2018: no repurchased common shares).

Dividends

Declared and paid

The Company declared and paid the following dividends during the six months ended June 30, 2019 and 2018:

    

    

Dividend  

    

    

Total

    

Declaration date

per share

Record date

dividends

Payment date

Six months ended June 30, 2019:

 

  

 

  

 

  

 

  

 

  

January 25, 2019

$

0.1800

February 15, 2019

$

19,568

March 8, 2019

May 8, 2019

 

0.1800

May 29, 2019

 

19,592

June 19, 2019

Six months ended June 30, 2018:

  

 

  

  

 

  

  

January 26, 2018

$

0.1700

February 16, 2018

$

18,246

March 9, 2018

May 9, 2018

 

0.1700

May 30, 2018

 

18,342

June 20, 2018

Declared and undistributed

Subsequent to June 30, 2019, the Company’s Board of Directors declared a quarterly dividend of $0.20 cents per common share, payable on September 18, 2019 to stockholders of record on August 28, 2019. This dividend payable has not been recognized as a liability in the financial statements. The payment of this dividend will not have any tax consequences for the Company.

Foreign currency translation reserve

Foreign currency translation adjustments include intra-entity foreign currency transactions that are of a long-term investment nature, which generated net gains of $2,508,000 and $1,653,000 for the three and six months ended June 30, 2019 (2018: net losses of $7,321,000 and $5,184,000).

v3.19.2
Share-Based Payments
6 Months Ended
Jun. 30, 2019
Share-Based Payments [Abstract]  
Share-Based Payments

16.    Share-based payments

Share-based payments consist of the following compensation costs:

 

Three months ended

 

Six months ended

 

June 30, 

June 30, 

    

2019

    

2018

    

2019

    

2018

Stock option compensation expense:

 

  

 

  

 

  

 

  

SG&A expenses

$

1,660

$

2,140

$

3,199

$

4,288

Acquisition-related costs

 

 

 

 

195

Share unit expense:

 

  

 

  

 

  

 

  

Equity-classified share units

 

3,535

 

3,226

 

5,903

 

6,261

Liability-classified share units

 

90

 

346

 

240

 

1,945

Employee share purchase plan - employer contributions

 

572

 

554

 

1,125

 

1,091

$

5,857

$

6,266

$

10,467

$

13,780

Share unit expense and employer contributions to the employee share purchase plan are recognized in SG&A expenses.

Stock option plans

Stock option activity for the six months ended June 30, 2019 is presented below:

WA

Common

WA

remaining

Aggregate

shares under

exercise

contractual

intrinsic

    

option

    

price

    

life (in years)

    

value

Outstanding, December 31, 2018

 

4,013,863

$

26.41

 

7.2

$

25,374

Granted

 

864,842

 

33.79

 

  

 

  

Exercised

 

(181,359)

 

22.73

 

 

2,277

Forfeited

 

(44,730)

 

24.61

 

  

 

  

Outstanding, June 30, 2019

 

4,652,616

 

27.94

 

7.3

 

25,077

Exercisable, June 30, 2019

 

2,762,380

$

25.46

 

6.3

$

21,443

The significant assumptions used to estimate the fair value of stock options granted during the six months ended June 30, 2019 and 2018 are presented in the following table on a weighted average basis:

Six months ended June 30,

    

2019

    

2018

Risk free interest rate

 

2.5

%  

2.7

%

Expected dividend yield

 

2.06

%  

2.11

%

Expected lives of the stock options

 

5 years

 

5 years

Expected volatility

 

26.8

%  

28.1

%

As at June 30, 2019, the unrecognized stock-based compensation cost related to the non-vested stock options was $7,684,000, which is expected to be recognized over a weighted average period of 2.4 years.

16.    Share-based payments (continued)

Share unit plans

Share unit activity for the six months ended June 30, 2019 is presented below:

Equity-classified awards

Liability-classified awards  

PSUs

RSUs

DSUs

WA grant

WA grant

WA grant

date fair

date fair

date fair

    

Number

    

value

    

Number

    

value

    

Number

    

value

Outstanding, December 31, 2018

 

670,288

$

31.46

 

207,986

$

28.99

 

113,435

$

28.16

Granted

 

158,815

 

36.39

 

28,371

 

36.22

 

13,601

 

35.23

Vested and settled

 

(231,873)

 

30.41

 

(260)

 

31.98

 

 

Forfeited

 

(7,167)

 

31.67

 

(3,226)

 

34.84

 

 

Outstanding, June 30, 2019

 

590,063

$

33.20

 

232,871

$

29.79

 

127,036

$

28.92

Senior executive and employee PSU plans

The Company grants PSUs under a senior executive PSU plan and an employee PSU plan (the “PSU Plans”). Under the PSU Plans, the number of PSUs that vest is conditional upon specified market, service, or performance vesting conditions being met. The PSU Plans allow the Company to choose whether to settle the awards in cash or in shares. The Company intends to settle in shares. With respect to settling in shares, the Company has the option to either (i) arrange for the purchase shares on the open market on the employee’s behalf based on the cash value that otherwise would be delivered, or (ii) to issue a number of shares equal to the number of units that vest.

The fair value of the equity-classified PSUs awarded in 2018 is estimated on modification date and on the date of grant using a Monte-Carlo simulation model as these awards are subject to market vesting conditions. The significant assumptions used to estimate the fair value of the equity-classified PSUs awarded during the six months ended June 30, 2018 are presented in the following table on a weighted average basis:

Six months ended June 30,

    

2018

Risk free interest rate

 

1.9

%

Expected dividend yield

 

2.09

%

Expected lives of the PSUs

 

3 years

Expected volatility

 

31.1

%

Average expected volatility of comparable companies

 

34.1

%

The fair value of the equity-classified PSUs awarded in 2019 is estimated based on the Company’s common share price at grant date, as these awards are not subject to market vesting conditions.

As at June 30, 2019, the unrecognized share unit expense related to equity-classified PSUs was $10,544,000, which is expected to be recognized over a weighted average period of 2.0 years.

RSUs

The Company has RSU plans that are equity-settled and not subject to market vesting conditions.

As at June 30, 2019, the unrecognized share unit expense related to equity-classified RSUs was $3,760,000, which is expected to be recognized over a weighted average period of 1.6 years.

16.    Share-based payments (continued)

Share unit plans (continued)

DSUs

The Company has DSU plans that are cash-settled and not subject to market vesting conditions.

Fair values of DSUs are estimated on grant date and at each reporting date. DSUs are granted under the DSU plan to members of the Board of Directors. There is no unrecognized share unit expense related to liability-classified DSUs as they vest immediately and are expensed upon grant.

As at June 30, 2019, the Company had a total share unit liability of $4,376,000 (December 31, 2018: $3,714,000) in respect of share units under the DSU plans.

Employee share purchase plan

The Company has an employee share purchase plan that allows all employees that have completed two months of service to contribute funds to purchase common shares at the current market value at the time of share purchase. Employees may contribute up to 4% of their salary. The Company will match between 50% and 100% of the employee’s contributions, depending on the employee’s length of service with the Company.

v3.19.2
Leases
6 Months Ended
Jun. 30, 2019
Commitments [Abstract]  
Leases

17.    Leases

The Company’s breakdown of lease expense for the three and six months ended June 30, 2019 is as follows:

    

 Three months

    

Six months

ended

ended

Operating lease cost

$

4,071

$

9,283

Finance lease cost

 

  

 

  

Amortization of leased assets

 

1,692

 

3,452

Interest on lease liabilities

 

199

 

354

Short-term lease cost

 

2,510

 

5,075

Sublease income

 

(143)

 

(297)

$

8,329

$

17,867

Operating leases

The Company has entered into commercial leases for various auction sites and offices located in North America, Europe, the Middle East and Asia. The majority of these leases are non-cancellable. The Company also has further operating leases for computer equipment, certain motor vehicles and small office equipment where it is not in the best interest of the Company to purchase these assets.

The majority of the Company’s operating leases have a fixed term with a remaining life between one month and 20 years, with renewal options included in the contracts. The leases have varying contract terms, escalation clauses and renewal options. Generally there are no restrictions placed upon the lessee by entering into these leases, other than restrictions on use of property, sub-letting and alterations. At the inception of a lease, the Company determines whether it is reasonably certain to exercise a renewal option and includes the options in the determination of the lease term and the lease liability where it is reasonably certain to exercise the option. If the Company’s intention is to exercise an option subsequent to the commencement of the lease, the Company will re-assess the lease term. The Company has included certain renewal options in its operating lease liabilities for key property leases for locations that have strategic importance to the Company such as its Corporate Head Office. The Company has not included any purchase options available within its operating lease portfolio in its determination of its operating lease liability.

17.    Leases (continued)

Operating leases (continued)

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

Remainder of 2019

    

$

7,734

2020

 

15,449

2021

 

12,522

2022

 

11,089

2023

 

9,327

Thereafter

 

109,628

Total future minimum lease payments

$

165,749

less: imputed interest

 

(46,596)

Total operating lease liability

$

119,153

less: operating lease liability - current

 

(10,139)

Total operating lease liability - non current

$

109,014

During the three months ended June 30, 2019 the Company recognized ROU assets in the amount of $19,200,000 primarily relating to the extension of a lease for an existing auction site. At June 30, 2019 the Company has ROU assets relating to operating leases in the amount of $114,243,000.

At June 30, 2019 the weighted average remaining lease term for operating leases is 15.9 years and the weighted average discount rate is 4.3%.

Finance leases

The Company has entered into finance lease arrangements for certain vehicles, computer and yard equipment and office furniture. The majority of the leases have a fixed term with a remaining life of one month to six years with renewal options included in the contracts. In certain of these leases, the Company has the option to purchase the leased asset at fair market value or a stated residual value at the end of the lease term. For certain leases such as vehicle leases the Company has included renewal options in the determination of its lease liabilities. The Company has not included any purchase options available within its finance lease portfolio in its determination of the finance lease liability.

As at June 30, 2019, the net carrying amount of computer and yard equipment and other assets under capital leases is $19,799,000 (December 31, 2018: $14,976,000), and is included in the total property, plant and equipment as disclosed on the consolidated balance sheets.

    

    

Accumulated

    

Net book

As at June 30, 2019

Cost

depreciation

value

Computer equipment

$

13,816

$

(5,811)

$

8,005

Yard and others

 

15,558

 

(3,764)

 

11,794

$

29,374

$

(9,575)

$

19,799

    

    

Accumulated

    

Net book

As at December 31, 2018

Cost

depreciation

value

Computer equipment

$

9,428

$

(3,992)

$

5,436

Yard and auto equipment

 

12,125

 

(2,585)

 

9,540

$

21,553

$

(6,577)

$

14,976

17.    Leases (continued)

Finance leases (continued)

The future aggregate minimum lease payments under non-cancellable finance leases are as follows:

Remainder of 2019

    

$

3,799

2020

 

6,715

2021

 

5,372

2022

 

3,632

2023

 

2,148

Thereafter

 

658

Total future minimum lease payments

$

22,324

less: imputed interest

 

(1,426)

Total finance lease liability

$

20,898

less: finance lease liability - current

 

(6,188)

Total finance lease liability - non current

$

14,710

At June 30, 2019 the weighted average remaining lease term for finance leases is 3.6 years and the weighted average discount rate is 3.9%.

Subleases

As at June 30, 2019, the total future minimum sublease payments expected to be received under non-cancellable subleases is $872,000.

v3.19.2
Commitments
6 Months Ended
Jun. 30, 2019
Commitments [Abstract]  
Commitments

18.    Commitments

Commitment for inventory purchase

The Company entered into a two-year non-rolling stock surplus contract with the U.S. Government Defense Logistics Agency (the “DLA”) in December 2017 with the option to extend for up to four-years. Pursuant to the contract the performance period commenced in April 2018 and concludes in March 2020.

The Company has committed to purchase between 150,000 and 245,900 units of property with an expected minimum value of $11,104,000 and up to $51,028,000 annually to the extent that goods are available from the DLA over each 12 month period relating to the purchase of inventory. At June 30, 2019, the Company has purchased $10,965,000 pursuant to the 12 month period of this contract which commenced in April 2019.

v3.19.2
Contingencies
6 Months Ended
Jun. 30, 2019
Contingencies [Abstract]  
Contingencies

19.    Contingencies

Legal and other claims

The Company is subject to legal and other claims that arise in the ordinary course of its business. Management does not believe that the results of these claims will have a material effect on the Company’s consolidated balance sheet or consolidated income statement.

Guarantee contracts

In the normal course of business, the Company will in certain situations guarantee to a consignor a minimum level of proceeds in connection with the sale at auction of that consignor’s equipment.

At June 30, 2019, there were $70,848,000 of assets guaranteed under contract, of which 60% is expected to be sold prior to September 30, 2019 with the remainder to be sold by March 31, 2020 (December 31, 2018: $41,461,000 of which 51% is expected to be sold prior to the end of March 31, 2019 with the remainder to be sold by March 31, 2020).

The outstanding guarantee amounts are undiscounted and before estimated proceeds from sale at auction.

v3.19.2
Summary of Significant Accounting Policies (Policy)
6 Months Ended
Jun. 30, 2019
Summary of Significant Accounting Policies [Abstract]  
Basis of Preparation

(a) Basis of preparation

These unaudited condensed consolidated interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”). They include the accounts of Ritchie Bros. Auctioneers Incorporated and its subsidiaries from their respective dates of formation or acquisition. All significant intercompany balances and transactions have been eliminated.

Certain information and footnote disclosure required by US GAAP for complete annual financial statements have been omitted and, therefore, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2018, included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly, in all material respects, the Company’s consolidated financial position, results of operations, cash flows and changes in equity for the interim periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Revenue Recognition

(b) Revenue recognition

Revenues are comprised of:

Service revenue, including the following:
i.Revenue from auction and marketplace (“A&M”) activities, including commissions earned at our live auctions, online marketplaces, and private brokerage services where we act as an agent for consignors of equipment and other assets, and various auction-related fees, including listing and buyer transaction fees; and
ii.Other services revenue, including revenue from listing services, refurbishment, logistical services, financing, appraisal fees and other ancillary service fees; and
Inventory sales revenue as part of A&M activities

The Company recognizes revenue when control of the promised goods or services is transferred to our customers, or upon completion of the performance obligation, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For live event-based auctions or online auctions, revenue is recognized when the auction sale is complete and the Company has determined that the sale proceeds are collectible. Revenue is measured at the fair value of the consideration received or receivable and is shown net of value-added tax and duties.

1.    Summary of significant accounting policies (continued)

(b) Revenue recognition (continued)

Service revenue

Commissions from sales at the Company’s auctions represent the percentage earned by the Company on the gross proceeds from equipment and other assets sold at auction. The majority of the Company’s commissions are earned as a pre-negotiated fixed rate of the gross selling price. Other commissions from sales at the Company’s auctions are earned from underwritten commission contracts, when the Company guarantees a certain level of proceeds to a consignor.

The Company accepts equipment and other assets on consignment stimulating buyer interest through professional marketing techniques, and matches sellers (also known as consignors) to buyers through the auction or private sale process. Prior to offering an item for sale on its online marketplaces, the Company also performs inspections.

Following the sale of the item, the Company invoices the buyer for the purchase price of the asset, taxes, and, if applicable, the buyer transaction fee, collects payment from the buyer, and remits the proceeds to the seller, net of the seller commissions, applicable taxes, and applicable fees. Commissions are calculated as a percentage of the hammer price of the property sold at auction. Fees are also charged to sellers for listing and inspecting equipment. Other revenue earned in the process of conducting the Company’s auctions include administrative, documentation, and advertising fees.

On the fall of the auctioneer’s hammer, the highest bidder becomes legally obligated to pay the full purchase price, which is the hammer price of the property purchased and the seller is legally obligated to relinquish the property in exchange for the hammer price less any seller’s commissions. Commission and fee revenue are recognized on the date of the auction sale upon the fall of the auctioneer’s hammer.

Under the standard terms and conditions of its auction sales, the Company is not obligated to pay a consignor for property that has not been paid for by the buyer, provided the property has not been released to the buyer. If the buyer defaults on its payment obligation, also referred to as a collapsed sale, the sale is cancelled in the period in which the determination is made, and the property is returned to the consignor or placed in a later event-based or online auction. Historically cancelled sales have not been material.

Online marketplace commission revenue is reduced by a provision for disputes, which is an estimate of disputed items that are expected to be settled at a cost to the Company, related to settlements of discrepancies under the Company’s equipment condition certification program. The equipment condition certification refers to a written inspection report provided to potential buyers that reflects the condition of a specific piece of equipment offered for sale, and includes ratings, comments, and photographs of the equipment following inspection by one of the Company’s equipment inspectors.

The equipment condition certification provides that a buyer may file a written dispute claim during an eligible dispute period for consideration and resolution at the sole determination of the Company if the purchased equipment is not substantially in the condition represented in the inspection report. Typically disputes under the equipment condition certification program are settled with minor repairs or additional services, such as washing or detailing the item; the estimated costs of such items or services are included in the provision for disputes.

Commission revenue are recorded net of commissions owed to third parties, which are principally the result of situations when the commission is shared with a consignor in an auction guarantee risk and reward sharing arrangement.

1.    Summary of significant accounting policies (continued)

(b) Revenue recognition (continued)

Service revenue (continued)

Underwritten commission contracts can take the form of guarantee contracts. Guarantee contracts typically include a pre-negotiated percentage of the guaranteed gross proceeds plus a percentage of proceeds in excess of the guaranteed amount. If actual auction proceeds are less than the guaranteed amount, commission is reduced; if proceeds are sufficiently lower, the Company can incur a loss on the sale. Losses, if any, resulting from guarantee contracts are recorded in the period in which the relevant auction is completed. If a loss relating to a guarantee contract held at the period end to be sold after the period end is known or is probable and estimable at the financial statement reporting date, the loss is accrued in the financial statements for that period. The Company’s exposure from these guarantee contracts fluctuates over time.

Other services revenue also includes fees for refurbishment, logistical services, financing, appraisal fees and other ancillary service fees. Fees are recognized in the period in which the service is provided to the customer.

Inventory sales revenue

Underwritten commission contracts can take the form of inventory contracts. Revenue related to inventory contracts is recognized in the period in which the sale is completed, title to the property passes to the purchaser and the Company has fulfilled any other obligations that may be relevant to the transaction. In its role as auctioneer, the Company auctions its inventory to equipment buyers through the auction process. Following the sale of the item, the Company invoices the buyer for the purchase price of the asset, taxes, and, if applicable, the buyer transaction fee, and collects payment from the buyer.

On the fall of the auctioneer’s hammer, the highest bidder becomes legally obligated to pay the full purchase price, which is the hammer price of the property purchased. Title to the property is transferred in exchange for the hammer price, and if applicable, the buyer transaction fee plus applicable taxes.

Costs of Services

(c) Costs of services

Costs of services are comprised of expenses incurred in direct relation to conducting auctions (“direct expenses”), earning online marketplace revenue, and earning other fee revenue. Direct expenses include direct labour, buildings and facilities charges, travel, advertising and promotion costs and fees paid to unrelated third parties who introduce the Company to equipment sellers who sell property at the Company’s auctions and marketplaces.

Costs of services incurred to earn online marketplace revenue in addition to the costs listed above also include inspection costs. Inspections are generally performed at the seller’s physical location. The cost of inspections includes payroll costs and related benefits for the Company’s employees that perform and manage field inspection services, the related inspection report preparation and quality assurance costs, fees paid to contractors who perform field inspections, related travel and incidental costs for the Company’s inspection service organization, and office and occupancy costs for its inspection services personnel. Costs of earning online marketplace revenue also include costs for the Company’s customer support, online marketplace operations, logistics, title and lien investigation functions.

Costs of services incurred in earning other fee revenue include ancillary and logistical service expenses, direct labour (including commissions on sales), software maintenance fees, and materials. Costs of services exclude depreciation and amortization expenses.

Cost of Inventory Sold

(d) Cost of inventory sold

Cost of inventory sold includes the purchase price of assets sold for the Company’s own account and is determined using a specific identification basis.

Share-Based Payments

(e) Share-based payments

The Company classifies a share-based payment award as an equity or liability payment based on the substantive terms of the award and any related arrangement.

Equity-classified share-based payments

Share unit plans

The Company has a senior executive performance share unit (“PSU”) plan and an employee PSU plan that provides for the award of PSUs to certain senior executives and employees, respectively, of the Company. The Company has the option to settle certain share unit awards in cash or shares and expects to settle them in shares. The cost of PSUs granted is measured at the fair value of the underlying PSUs at the grant date. PSUs vest based on the passage of time and achievement of performance criteria.

The Company also has a senior executive restricted share unit (“RSU”) plan and an employee RSU plan that provides for the award of RSUs to certain senior executives and employees, respectively, of the Company. The Company has the option to settle certain share unit awards in cash or shares and expects to settle all grants on and after 2017 in shares. The cost of RSUs granted is measured at the fair value based on the fair value of the Company’s common shares at the grant date. RSUs vest based on the passage of time and include restrictions related to employment.

This fair value of awards expected to vest under these plans is expensed over the respective remaining service period of the individual awards, on an accelerated recognition basis, with the corresponding increase to APIC recorded in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in earnings, such that the consolidated expense reflects the revised estimate, with a corresponding adjustment to equity. Dividend equivalents on the equity-classified PSUs and RSUs are recognized as a reduction to retained earnings over the service period.

Stock option plans

The Company has three stock option compensation plans that provide for the award of stock options to selected employees, directors and officers of the Company. The cost of options granted is measured at the fair value of the underlying option at the grant date using the Black-Scholes option pricing model. The fair value of options expected to vest under these plans is expensed over the respective remaining service period of the individual awards, on an accelerated recognition basis, with the corresponding increase to APIC recorded in equity. Upon exercise, any consideration paid on exercise of the stock options and amounts fully amortized in APIC are credited to the common shares.

1.    Summary of significant accounting policies (continued)

(e) Share-based payments (continued)

Liability-classified share-based payments

The Company maintains other share unit compensation plans that vest over a period of up to three years after grant. Under those plans, the Company is either required or expects to settle vested awards on a cash basis or by providing cash to acquire shares on the open market on the employee’s behalf, where the settlement amount is determined based on the average price of the Company’s common shares prior to the vesting date or, in the case of deferred share unit (“DSU”) recipients, following cessation of service on the Board of Directors.

These awards are classified as liability awards, measured at fair value at the date of grant and re-measured at fair value at each reporting date up to and including the settlement date. The determination of the fair value of the share units under these plans is described in note 16. The fair value of the awards is expensed over the respective vesting period of the individual awards with recognition of a corresponding liability. Changes in fair value after vesting are recognized through compensation expense. Compensation expense reflects estimates of the number of instruments expected to vest.

The impact of forfeitures and fair value revisions, if any, are recognized in earnings such that the cumulative expense reflects the revisions, with a corresponding adjustment to the settlement liability. Liability-classified share unit liabilities due within 12 months of the reporting date are presented in trade and other payables while settlements due beyond 12 months of the reporting date are presented in other non-current liabilities.

Leases

(f) Leases

The Company determines if an arrangement is a lease at inception. The Company may have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain vehicle and equipment leases, management applies a portfolio approach to account for the right-of-use (“ROU”) assets and liabilities for assets leased with similar lease terms.

Operating leases

Operating leases are included in other non-current assets, trade and other payables, and other non-current liabilities in our consolidated balance sheets if the initial lease term is greater than 12 months. For leases with an initial term of 12 months or less the Company recognizes those lease payments on a straight-line basis over the lease term.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, management uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Management uses the implicit rate when readily determinable. The Company includes lease payments for renewal or termination options in its determination of lease term, ROU asset, and lease liability when it is reasonably certain that the Company will exercise these options. Lease expense for lease payments is recognized on a straight-line basis over the lease term and are included in Costs of services or Selling, general, and administrative (“SG&A”) expenses.

1.    Summary of significant accounting policies (continued)

(f) Leases (continued)

Finance leases

Finance lease ROU assets are included in property, plant and equipment, trade and other payables, and other non-current liabilities in our consolidated balance sheets.

Finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, management uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Management uses the implicit rate when readily determinable. The Company includes lease payments for renewal, purchase options, or termination options in its determination of lease term, ROU asset, and lease liability when it is reasonably certain that the Company will exercise these options. Finance lease ROU assets are generally amortized over the lease term and are included in depreciation expense. The interest on the finance lease liabilities is included in interest expense.

Inventories

(g) Inventories

Inventory consists of equipment and other assets purchased for resale in an upcoming live on site auction or online marketplace event. The Company typically purchases inventory for resale through a competitive process where the consignor or vendor has determined this to be the preferred method of disposition through the auction process. In addition, certain jurisdictions require auctioneers to hold title to assets and facilitate title transfer on sale. Inventory is valued at the lower of cost and net realizable value where net realizable value represents the expected sale price upon disposition less make-ready costs and the costs of disposal and transportation. As part of its government business, the Company purchases inventory for resale as part of its commitment to purchase certain surplus government property (note 18). The significant elements of cost include the acquisition price of the inventory and make-ready costs to prepare the inventory for sale that are not selling expenses and in-bound transportation costs. Write-downs to the carrying value of inventory are recorded in cost of inventory sold on the consolidated income statement.

Impairment of Long-lived and Indefinite-lived Assets

(h) Impairment of long-lived and indefinite-lived assets

Long-lived assets, comprised of property, plant and equipment and intangible assets subject to amortization, are assessed for impairment whenever events or circumstances indicate that their carrying value may not be recoverable. For the purpose of impairment testing, long-lived assets are grouped and tested for recoverability at the lowest level that generates independent cash flows. An impairment loss is recognized when the carrying value of the assets or asset groups is greater than the future projected undiscounted cash flows. The impairment loss is calculated as the excess of the carrying value over the fair value of the asset or asset group. Fair value is based on valuation techniques or third party appraisals. Significant estimates and judgments are applied in determining these cash flows and fair values.

Indefinite-lived intangible assets are tested annually for impairment as of December 31, and between annual tests if indicators of potential impairment exist. The Company has the option of performing a qualitative assessment to first determine whether the quantitative impairment test is necessary. This involves an assessment of qualitative factors to determine the existence of events or circumstances that would indicate whether it is more likely than not that the carrying amount of the indefinite-lived intangible asset is less than its fair value. If the qualitative assessment indicates it is not more likely than not that the carrying amount is less than its fair value, a quantitative impairment test is not required. Where a quantitative impairment test is required, the procedure is to compare the indefinite-lived intangible asset’s fair value with its carrying amount. An impairment loss is recognized as the difference between the indefinite-lived intangible asset’s carrying amount and its fair value.

Goodwill

1.    Summary of significant accounting policies (continued)

(i) Goodwill

Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to the assets acquired and liabilities assumed in a business combination.

Goodwill is not amortized, but it is tested annually for impairment at the reporting unit level as of December 31, and between annual tests if indicators of potential impairment exist. The Company has the option of performing a qualitative assessment of a reporting unit to first determine whether the quantitative impairment test is necessary. This involves an assessment of qualitative factors to determine the existence of events or circumstances that would indicate whether it is more likely than not that the carrying amount of the reporting unit to which goodwill belongs is less than its fair value. If the qualitative assessment indicates it is not more likely than not that the reporting unit’s carrying amount is less than its fair value, a quantitative impairment test is not required.

If a quantitative impairment test is required, the procedure is to identify potential impairment by comparing the reporting unit’s fair value with its carrying amount, including goodwill. The reporting unit’s fair value is determined using various valuation approaches and techniques that involve assumptions based on what the Company believes a hypothetical marketplace participant would use in estimating fair value on the measurement date. An impairment loss is recognized as the difference between the reporting unit’s carrying amount and its fair value. If the difference between the reporting unit’s carrying amount and fair value is greater than the amount of goodwill allocated to the reporting unit, the impairment loss is restricted by the amount of the goodwill allocated to the reporting unit.

New and amended accounting standards

(j) New and amended accounting standards

Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). The Company adopted the new standard utilizing the “optional transition method”, which permits the Company to apply the new lease standard at the adoption date. As the optional transition method is being utilized, the Company’s reporting for the comparative periods presented in the financial statements in which it adopts Topic 842 will continue to be reported pursuant to Topic 840.

On adoption, the Company elected to utilize the package of practical expedients permitted within the new standard, which among other things, allows the Company to carryforward the historical lease classification. In addition, the Company elected to utilize the hindsight practical expedient to determine the reasonably certain lease term for existing leases. While lease classification will remain unchanged, hindsight will result in generally longer accounting lease terms where the Company has determined that it is reasonably certain to exercise certain renewal options and thereby increasing the useful lives of the corresponding leasehold improvements. The Company also elected not to recognize the lease assets and liabilities for leases with an initial term of 12 months or less and will recognize those lease payments on a straight-line basis over the lease term.

On adoption of the new standard the Company recognized ROU assets of $103,897,000 with a corresponding increase in operating lease liability. Offsetting the increase in ROU assets recognized was the reclassification of prepaid rent and deferred rent liabilities to ROU assets of $5,752,000. There was no impact on retained earnings or cash flows.

The adoption of the standard had no impact on our debt-covenant compliance under our current agreements.

v3.19.2
Segmented Information (Tables)
6 Months Ended
Jun. 30, 2019
Segmented Information [Abstract]  
Schedule of Revenue and (Loss) Income Before Taxes by Segment

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

Depreciation and amortization expenses ("D&A")

 

  

 

  

 

17,112

 

  

 

  

 

34,227

Gain on disposition of property, plant and equipment ("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

4.    Segmented information (continued)

Three months ended June 30, 2018

Six months ended June 30, 2018

    

A&M

    

Other

    

Consolidated

    

A&M

    

Other

    

Consolidated

Service revenue

$

180,067

$

34,279

$

214,346

$

328,472

$

61,890

$

390,362

Inventory sales revenue

 

94,184

 

 

94,184

 

178,346

 

 

178,346

Total revenue

274,251

 

34,279

 

308,530

$

506,818

$

61,890

 

568,708

Costs of services

 

21,381

 

21,652

 

43,033

 

42,829

 

36,861

 

79,690

Cost of inventory sold

 

81,702

 

 

81,702

 

157,493

 

 

157,493

SG&A expenses

 

95,959

 

5,300

 

101,259

 

188,961

 

9,768

 

198,729

Segment profit

$

75,209

 

7,327

 

82,536

$

117,535

$

15,261

$

132,796

Acquisition-related costs

 

  

 

  

 

1,399

 

  

 

  

 

3,032

D&A expenses

 

  

 

  

 

16,537

 

  

 

  

 

32,728

Gain on disposition of PPE

 

  

 

  

 

(271)

 

  

 

  

 

(616)

Foreign exchange (gain) loss

 

  

 

  

 

76

 

  

 

  

 

(16)

Operating income

 

  

 

  

$

64,795

 

  

 

  

$

97,668

Interest expense

 

  

 

  

 

(10,937)

 

  

 

  

 

(22,247)

Other income, net

 

  

 

  

 

900

 

  

 

  

 

1,813

Income tax expense

 

  

 

  

 

(9,031)

 

  

 

  

 

(14,300)

Net income

 

  

 

  

$

45,727

 

  

 

  

$

62,934

Geographic Information of Revenue

United 

  

States

Canada

Europe

Other

Consolidated

Total revenue for the three months ended:

    

  

    

  

    

  

    

  

    

  

June 30, 2019

$

212,233

$

90,410

$

47,283

$

43,296

$

393,222

June 30, 2018

142,931

 

82,776

 

44,826

 

37,997

 

308,530

Total revenue for the six months ended:

 

  

 

  

 

  

 

  

 

  

June 30, 2019

 

395,806

 

121,940

 

102,068

 

76,837

 

696,651

June 30, 2018

 

278,499

 

148,585

 

79,398

 

62,226

 

568,708

v3.19.2
Revenues (Tables)
6 Months Ended
Jun. 30, 2019
Revenues [Abstract]  
Revenue from the Rendering of Services

Three months ended

Six months ended

June 30, 

June 30, 

2019

2018

2019

2018

Service revenue:

    

  

    

  

    

  

    

  

Commissions

$

134,466

$

124,697

$

226,746

$

225,991

Fees

 

100,140

 

89,649

 

180,232

 

164,371

 

234,606

 

214,346

 

406,978

 

390,362

Inventory sales revenue

 

158,616

 

94,184

 

289,673

 

178,346

$

393,222

$

308,530

$

696,651

$

568,708

v3.19.2
Operating Expenses (Tables)
6 Months Ended
Jun. 30, 2019
Operating Expenses [Abstract]  
Schedule of Direct Operating Expenses

Three months ended

Six months ended

June 30, 

June 30, 

    

2019

    

2018

    

2019

    

2018

Ancillary and logistical service expenses

$

16,472

  

$

19,980

$

30,231

  

$

34,560

Employee compensation expenses

14,906

 

10,931

25,713

 

19,950

Buildings, facilities and technology expenses

2,172

 

2,663

4,306

 

5,290

Travel, advertising and promotion expenses

12,807

 

7,806

18,675

 

14,614

Other costs of services

3,911

 

1,653

7,412

 

5,276

$

50,268

$

43,033

$

86,337

$

79,690

Schedule of Selling, General and Administrative Expenses

Three months ended

Six months ended

 

June 30, 

 

June 30, 

    

2019

    

2018

    

2019

    

2018

Employee compensation expenses

$

63,889

 

66,699

$

125,353

$

129,992

Buildings, facilities and technology expenses

 

14,582

 

15,436

 

30,497

 

30,709

Travel, advertising and promotion expenses

 

9,225

 

8,800

 

18,367

 

18,519

Professional fees

 

4,155

 

5,388

 

8,230

 

9,655

Other SG&A expenses

 

5,863

 

4,936

 

10,451

 

9,854

$

97,714

 

$

101,259

$

192,898

$

198,729

Schedule of Acquisition Related Costs

Three months ended

Six months ended

June 30, 

June 30, 

    

2019

    

2018

    

2019

    

2018

IronPlanet:

  

 

  

  

 

  

Other acquisition-related costs

$

  

$

456

  

$

82

  

$

1,095

Other acquisitions:

  

 

  

  

 

  

Continuing employment costs

 

885

  

87

 

  

1,853

Other acquisition-related costs

38

 

58

  

538

 

  

84

$

38

$

1,399

$

707

 

$

3,032

Schedule of Depreciation and Amortization Expenses

Three months ended

Six months ended

    

June 30, 

    

June 30, 

    

2019

    

2018

    

2019

    

2018

Depreciation expense

$

7,157

$

7,292

$

14,325

$

14,208

Amortization expense

 

9,955

 

9,245

 

19,902

 

18,520

$

17,112

$

16,537

$

34,227

$

32,728

v3.19.2
Earnings Per Share Attributable to Stockholders (Tables)
6 Months Ended
Jun. 30, 2019
Earnings Per Share Attributable to Stockholders [Abstract]  
Computation of Basic and Diluted Earnings Per Share

Three months ended

Six months ended

June 30, 2019

June 30, 2019

Net income to

WA

Per

Net income

WA

Per

 

attributable

 

number

 

share

 

attributable to

 

number

 

share

    

stockholders

    

of shares

    

amount

    

stockholders

    

of shares

    

amount

Basic

$

54,036

 

108,707,708

$

0.50

$

72,200

 

108,725,871

$

0.66

Effect of dilutive securities:

 

  

 

  

 

  

 

  

 

  

 

  

Share units

 

 

442,601

 

 

 

464,613

 

Stock options

 

 

792,459

 

(0.01)

 

 

792,279

 

Diluted

$

54,036

 

109,942,768

$

0.49

$

72,200

 

109,982,763

$

0.66

8.    Earnings per share attributable to stockholders (continued)

Three months ended

    

Six months ended

June 30, 2018

June 30, 2018

Net income

WA

Per

Net income

WA

Per

 

attributable to

 

number

 

share

 

attributable to

 

number

 

share

    

stockholders

    

of shares

    

amount

    

stockholders

    

of shares

    

amount

Basic

$

45,717

 

107,864,030

$

0.42

$

62,855

 

107,610,679

$

0.58

Effect of dilutive securities:

 

  

 

  

 

  

 

  

 

  

 

  

Share units

 

 

314,618

 

 

 

336,353

 

Stock options

 

 

841,060

 

 

 

885,744

 

Diluted

$

45,717

 

109,019,708

$

0.42

$

62,855

 

108,832,776

$

0.58

v3.19.2
Supplemental Cash Flow Information (Tables)
6 Months Ended
Jun. 30, 2019
Supplemental Cash Flow Information [Abstract]  
Schedule of Net Changes in Operating Assets and Liabilities

Six months ended June 30,

    

2019

    

2018

Trade and other receivables

$

(208,486)

$

(100,339)

Inventory

 

33,584

 

(27,801)

Advances against auction contracts

 

188

 

261

Prepaid expenses and deposits

 

739

 

(2,547)

Income taxes receivable

 

(306)

 

6,430

Auction proceeds payable

 

252,765

 

129,008

Trade and other payables

 

(40,263)

 

(11,910)

Income taxes payable

 

3,341

 

6,585

Share unit liabilities

 

 

1,216

Other

 

(5,526)

 

2,341

Net changes in operating assets and liabilities

$

36,036

$

3,244

Schedule of Supplemental Cash Flow

Six months ended June 30, 

    

2019

    

2018

Interest paid, net of interest capitalized

$

19,024

$

20,058

Interest received

 

1,918

 

1,229

Net income taxes paid

 

18,455

 

3,547

Non-cash purchase of property, plant and equipment under capital lease

$

8,335

$

3,012

Schedule of Cash, Cash Equivalents and Restricted Cash

June 30, 

December 31, 

    

2019

    

2018

Cash and cash equivalents

$

210,429

$

237,744

Restricted cash

 

128,565

67,823

Cash, cash equivalents, and restricted cash

$

338,994

$

305,567

v3.19.2
Fair Value Measurement (Tables)
6 Months Ended
Jun. 30, 2019
Fair Value Measurement [Abstract]  
Fair Value Assets Recurring and Nonrecurring

  

June 30, 2019

December 31, 2018

Carrying

Carrying

    

Category

    

amount

    

Fair value

    

amount

    

Fair value

Fair values disclosed:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

 

Level 1

$

210,429

$

210,429

$

237,744

$

237,744

Restricted cash

 

Level 1

 

128,565

 

128,565

 

67,823

 

67,823

Short-term debt

 

Level 2

 

8,010

 

8,010

 

19,896

 

19,896

Long-term debt

 

  

 

  

 

  

 

  

 

  

Senior unsecured notes

 

Level 1

 

490,027

 

516,888

 

489,136

 

487,813

Term loans

 

Level 2

 

214,902

 

216,802

 

222,162

 

224,582

v3.19.2
Other Current Assets (Tables)
6 Months Ended
Jun. 30, 2019
Other Current Assets [Abstract]  
Schedule of Other Current Assets

June 30, 

December 31, 

    

2019

    

2018

Advances against auction contracts

$

15,364

$

15,558

Assets held for sale

 

30,983

 

15,051

Prepaid expenses and deposits

 

17,802

 

18,446

$

64,149

$

49,055

Assets held for sale

Balance, December 31, 2018

$

15,051

Reclassified from (to) property, plant and equipment

 

15,932

Balance, June 30, 2019

$

30,983

Summary of Assets Held For Sale

June 30, 

December 31, 

    

2019

    

2018

Advances against auction contracts

$

15,364

$

15,558

Assets held for sale

 

30,983

 

15,051

Prepaid expenses and deposits

 

17,802

 

18,446

$

64,149

$

49,055

Assets held for sale

Balance, December 31, 2018

$

15,051

Reclassified from (to) property, plant and equipment

 

15,932

Balance, June 30, 2019

$

30,983

v3.19.2
Other Non-current Assets (Tables)
6 Months Ended
Jun. 30, 2019
Other Non-current Assets [Abstract]  
Schedule of Other Non-current Assets

June 30, 

December 31, 

    

2019

    

2018

Right-of-use assets

 

$

114,243

 

$

Tax receivable

 

 

12,675

 

 

12,705

Equity-accounted investments

 

 

4,238

 

 

4,010

Deferred debt issue costs

 

 

1,725

 

 

2,017

Other

 

 

11,996

 

 

10,663

 

$

144,877

 

$

29,395

v3.19.2
Debt (Tables)
6 Months Ended
Jun. 30, 2019
Debt [Abstract]  
Schedule of Debt

Carrying amount

 

June 30, 

 

December 31, 

    

2019

    

2018

Short-term debt

$

8,010

$

19,896

Long-term debt:

 

  

 

  

Term loans:

 

  

 

  

Denominated in Canadian dollars, secured, bearing interest at a weighted average rate of 3.974%, due in monthly installments of interest only and quarterly installments of principal, maturing in October 2021

 

164,112

 

161,891

Denominated in United States dollars, secured, bearing interest at a weighted average rate of 4.398%, due in weekly installments of interest only and quarterly installments of principal, maturing in October 2021

 

52,690

 

62,690

Less: unamortized debt issue costs

 

(1,900)

 

(2,419)

Senior unsecured notes:

 

  

 

  

Bearing interest at 5.375% due in semi-annual installments, with the full amount of principal due in January 2025

 

500,000

 

500,000

Less: unamortized debt issue costs

 

(9,973)

 

(10,864)

Total long-term debt

 

704,929

 

711,298

Total debt

$

712,939

$

731,194

Long-term debt:

 

  

 

  

Current portion

$

18,235

$

13,126

Non-current portion

 

686,694

 

698,172

Total long-term debt

$

704,929

$

711,298

v3.19.2
Other Non-current Liabilities (Tables)
6 Months Ended
Jun. 30, 2019
Other Non-current Liabilities [Abstract]  
Other Non-current Liabilities

June 30, 

December 31, 

    

2019

    

2018

Operating lease liability

$

109,014

$

Tax payable

 

20,464

 

22,583

Finance lease liability

 

14,710

 

10,146

Other

 

3,266

 

9,251

$

147,454

$

41,980

v3.19.2
Equity and Dividends (Tables)
6 Months Ended
Jun. 30, 2019
Equity and Dividends [Abstract]  
Schedule of Quarterly Dividends Declared and Paid

    

    

Dividend  

    

    

Total

    

Declaration date

per share

Record date

dividends

Payment date

Six months ended June 30, 2019:

 

  

 

  

 

  

 

  

 

  

January 25, 2019

$

0.1800

February 15, 2019

$

19,568

March 8, 2019

May 8, 2019

 

0.1800

May 29, 2019

 

19,592

June 19, 2019

Six months ended June 30, 2018:

  

 

  

  

 

  

  

January 26, 2018

$

0.1700

February 16, 2018

$

18,246

March 9, 2018

May 9, 2018

 

0.1700

May 30, 2018

 

18,342

June 20, 2018

v3.19.2
Share-Based Payments (Tables)
6 Months Ended
Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Compensation Costs Related to Share-Based Payments

 

Three months ended

 

Six months ended

 

June 30, 

June 30, 

    

2019

    

2018

    

2019

    

2018

Stock option compensation expense:

 

  

 

  

 

  

 

  

SG&A expenses

$

1,660

$

2,140

$

3,199

$

4,288

Acquisition-related costs

 

 

 

 

195

Share unit expense:

 

  

 

  

 

  

 

  

Equity-classified share units

 

3,535

 

3,226

 

5,903

 

6,261

Liability-classified share units

 

90

 

346

 

240

 

1,945

Employee share purchase plan - employer contributions

 

572

 

554

 

1,125

 

1,091

$

5,857

$

6,266

$

10,467

$

13,780

Summary of Stock Option Activity

WA

Common

WA

remaining

Aggregate

shares under

exercise

contractual

intrinsic

    

option

    

price

    

life (in years)

    

value

Outstanding, December 31, 2018

 

4,013,863

$

26.41

 

7.2

$

25,374

Granted

 

864,842

 

33.79

 

  

 

  

Exercised

 

(181,359)

 

22.73

 

 

2,277

Forfeited

 

(44,730)

 

24.61

 

  

 

  

Outstanding, June 30, 2019

 

4,652,616

 

27.94

 

7.3

 

25,077

Exercisable, June 30, 2019

 

2,762,380

$

25.46

 

6.3

$

21,443

Summary of Stock Option and Performance Share Unit Pricing Assumptions

Six months ended June 30,

    

2019

    

2018

Risk free interest rate

 

2.5

%  

2.7

%

Expected dividend yield

 

2.06

%  

2.11

%

Expected lives of the stock options

 

5 years

 

5 years

Expected volatility

 

26.8

%  

28.1

%

Summary of Share Unit Activity

Equity-classified awards

Liability-classified awards  

PSUs

RSUs

DSUs

WA grant

WA grant

WA grant

date fair

date fair

date fair

    

Number

    

value

    

Number

    

value

    

Number

    

value

Outstanding, December 31, 2018

 

670,288

$

31.46

 

207,986

$

28.99

 

113,435

$

28.16

Granted

 

158,815

 

36.39

 

28,371

 

36.22

 

13,601

 

35.23

Vested and settled

 

(231,873)

 

30.41

 

(260)

 

31.98

 

 

Forfeited

 

(7,167)

 

31.67

 

(3,226)

 

34.84

 

 

Outstanding, June 30, 2019

 

590,063

$

33.20

 

232,871

$

29.79

 

127,036

$

28.92

Performance Share Units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Stock Option and Performance Share Unit Pricing Assumptions

Six months ended June 30,

    

2018

Risk free interest rate

 

1.9

%

Expected dividend yield

 

2.09

%

Expected lives of the PSUs

 

3 years

Expected volatility

 

31.1

%

Average expected volatility of comparable companies

 

34.1

%

v3.19.2
Leases (Tables)
6 Months Ended
Jun. 30, 2019
Commitments [Abstract]  
Breakdown of Lease Expense

    

 Three months

    

Six months

ended

ended

Operating lease cost

$

4,071

$

9,283

Finance lease cost

 

  

 

  

Amortization of leased assets

 

1,692

 

3,452

Interest on lease liabilities

 

199

 

354

Short-term lease cost

 

2,510

 

5,075

Sublease income

 

(143)

 

(297)

$

8,329

$

17,867

Future Minimum Operating Lease Payments

Remainder of 2019

    

$

7,734

2020

 

15,449

2021

 

12,522

2022

 

11,089

2023

 

9,327

Thereafter

 

109,628

Total future minimum lease payments

$

165,749

less: imputed interest

 

(46,596)

Total operating lease liability

$

119,153

less: operating lease liability - current

 

(10,139)

Total operating lease liability - non current

$

109,014

Information Disclosed on Balance Sheets

    

    

Accumulated

    

Net book

As at June 30, 2019

Cost

depreciation

value

Computer equipment

$

13,816

$

(5,811)

$

8,005

Yard and others

 

15,558

 

(3,764)

 

11,794

$

29,374

$

(9,575)

$

19,799

    

    

Accumulated

    

Net book

As at December 31, 2018

Cost

depreciation

value

Computer equipment

$

9,428

$

(3,992)

$

5,436

Yard and auto equipment

 

12,125

 

(2,585)

 

9,540

$

21,553

$

(6,577)

$

14,976

Future Minimum Finance Lease Payments

Remainder of 2019

    

$

3,799

2020

 

6,715

2021

 

5,372

2022

 

3,632

2023

 

2,148

Thereafter

 

658

Total future minimum lease payments

$

22,324

less: imputed interest

 

(1,426)

Total finance lease liability

$

20,898

less: finance lease liability - current

 

(6,188)

Total finance lease liability - non current

$

14,710

v3.19.2
Summary of Significant Accounting Policies (Details)
6 Months Ended
Jun. 30, 2019
USD ($)
Property, Plant and Equipment [Line Items]  
Liabilities $ 46,596,000
Right-of-use asset 114,243,000
Accounting Standards Update 2016-02 [Member]  
Property, Plant and Equipment [Line Items]  
Liabilities 5,752,000,000
Right-of-use asset $ 103,897,000
Liability Classified Awards [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Award vesting period 3 years
v3.19.2
Segmented Information (Narrative) (Details)
6 Months Ended
Jun. 30, 2019
segment
Segmented Information [Abstract]  
Number of reportable segments 1
v3.19.2
Segmented Information (Schedule of Revenue and (Loss) Income Before Taxes by Segment) (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Segment Reporting [Line Items]        
Revenues $ 393,222,000 $ 308,530,000 $ 696,651,000 $ 568,708,000
Direct expenses 50,268,000 43,033,000 86,337,000 79,690,000
SG&A expenses 97,714,000 101,259,000 192,898,000 198,729,000
Segment profit 95,422,000 82,536,000 147,123,000 132,796,000
Acquisition-related costs 38,000 1,399,000 707,000 3,032,000
D&A expenses 17,112,000 16,537,000 34,227,000 32,728,000
Gain on disposition of PPE (101,000) (271,000) (250,000) (616,000)
Foreign exchange (gain) loss 403,000 76,000 881,000 (16,000)
Operating income 77,970,000 64,795,000 111,558,000 97,668,000
Interest expense (10,117,000) (10,937,000) (20,933,000) (22,247,000)
Other income, net 1,679,000 900,000 3,718,000 1,813,000
Income tax expense (15,401,000) (9,031,000) (22,040,000) (14,300,000)
Net income 54,131,000 45,727,000 72,303,000 62,934,000
Auctions and Marketplaces [Member]        
Segment Reporting [Line Items]        
Revenues 359,666,000 274,251,000 634,160,000 506,818,000
SG&A expenses 91,466,000 95,959,000 180,648,000 188,961,000
Segment profit 85,831,000 75,209,000 129,851,000 117,535,000
Other Reporting Unit [Member]        
Segment Reporting [Line Items]        
Revenues 33,556,000 34,279,000 62,491,000 61,890,000
SG&A expenses 6,248,000 5,300,000 12,250,000 9,768,000
Segment profit 9,591,000 7,327,000 17,272,000 15,261,000
Service Revenues [Member]        
Segment Reporting [Line Items]        
Revenues 234,606,000 214,346,000 406,978,000 390,362,000
Direct expenses 50,268,000 43,033,000 86,337,000 79,690,000
Service Revenues [Member] | Auctions and Marketplaces [Member]        
Segment Reporting [Line Items]        
Revenues 201,050,000 180,067,000 344,487,000 328,472,000
Direct expenses 32,551,000 21,381,000 53,368,000 42,829,000
Service Revenues [Member] | Other Reporting Unit [Member]        
Segment Reporting [Line Items]        
Revenues 33,556,000 34,279,000 62,491,000 61,890,000
Direct expenses 17,717,000 21,652,000 32,969,000 36,861,000
Inventory Sales Revenue [Member]        
Segment Reporting [Line Items]        
Revenues 158,616,000 94,184,000 289,673,000 178,346,000
Direct expenses 149,818,000 81,702,000 270,293,000 157,493,000
Inventory Sales Revenue [Member] | Auctions and Marketplaces [Member]        
Segment Reporting [Line Items]        
Revenues 158,616,000 94,184,000 289,673,000 178,346,000
Direct expenses $ 149,818,000 $ 81,702,000 $ 270,293,000 $ 157,493,000
v3.19.2
Segmented Information (Geographic Information of Revenue) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]        
Revenue $ 393,222 $ 308,530 $ 696,651 $ 568,708
United States [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Revenue 212,233 142,931 395,806 278,499
Canada [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Revenue 90,410 82,776 121,940 148,585
Europe [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Revenue 47,283 44,826 102,068 79,398
Other [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Revenue $ 43,296 $ 37,997 $ 76,837 $ 62,226
v3.19.2
Revenues (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenues $ 393,222 $ 308,530 $ 696,651 $ 568,708
Service Revenues [Member]        
Revenues 234,606 214,346 406,978 390,362
Commission Revenue [Member]        
Revenues 134,466 124,697 226,746 225,991
Fees Revenue [Member]        
Revenues 100,140 89,649 180,232 164,371
Inventory Sales Revenue [Member]        
Revenues $ 158,616 $ 94,184 $ 289,673 $ 178,346
v3.19.2
Operating Expenses (Schedule of Direct Operating Expenses) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Ancillary and logistical service expenses $ 16,472 $ 19,980 $ 30,231 $ 34,560
Employee compensation expenses 14,906 10,931 25,713 19,950
Buildings, facilities and technology expenses 2,172 2,663 4,306 5,290
Travel, advertising and promotion expenses 12,807 7,806 18,675 14,614
Other costs of services 3,911 1,653 7,412 5,276
Total direct expenses 50,268 43,033 86,337 79,690
Service Revenues [Member]        
Total direct expenses $ 50,268 $ 43,033 $ 86,337 $ 79,690
v3.19.2
Operating Expenses (Schedule of Selling, General and Administrative Expenses) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Operating Expenses [Abstract]        
Employee compensation expenses $ 63,889 $ 66,699 $ 125,353 $ 129,992
Buildings, facilities and technology expenses 14,582 15,436 30,497 30,709
Travel, advertising and promotion expenses 9,225 8,800 18,367 18,519
Professional fees 4,155 5,388 8,230 9,655
Other SG&A expenses 5,863 4,936 10,451 9,854
Total selling, general and administrative expenses $ 97,714 $ 101,259 $ 192,898 $ 198,729
v3.19.2
Operating Expenses (Schedule of Acquisition Related Costs) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Acquisition-related costs $ 38 $ 1,399 $ 707 $ 3,032
Iron Planet Holdings Inc. [Member]        
Acquisition-related costs   456 82 1,095
Other Acquisitions [Member] | Employment Costs [Member]        
Acquisition-related costs   885 87 1,853
Other Acquisitions [Member] | Other Related Costs [Member]        
Acquisition-related costs $ 38 $ 58 $ 538 $ 84
v3.19.2
Operating Expenses (Schedule of Depreciation and Amortization Expenses) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Operating Expenses [Abstract]        
Depreciation expense $ 7,157 $ 7,292 $ 14,325 $ 14,208
Amortization expense 9,955 9,245 19,902 18,520
Total depreciation and amortization expenses $ 17,112 $ 16,537 $ 34,227 $ 32,728
v3.19.2
Income Taxes (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Taxes [Abstract]        
Income tax expense $ 15,401,000 $ 9,031,000 $ 22,040,000 $ 14,300,000
Effective income tax rate 22.00% 16.00% 23.00% 19.00%
v3.19.2
Earnings Per Share Attributable to Stockholders (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Net income attributable to:        
Basic $ 54,036 $ 45,717 $ 72,200 $ 62,855
Diluted $ 54,036 $ 45,717 $ 72,200 $ 62,855
Weighted average number of shares outstanding:        
Basic 108,707,708 107,864,030 108,725,871 107,610,679
Diluted 109,942,768 109,019,708 109,982,763 108,832,776
Per Share Amount        
Basic $ 0.50 $ 0.42 $ 0.66 $ 0.58
Diluted $ 0.49 $ 0.42 $ 0.66 $ 0.58
Share Units [Member]        
Weighted average number of shares outstanding:        
Effect of dilutive securities: 442,601 314,618 464,613 336,353
Stock Options [Member]        
Weighted average number of shares outstanding:        
Effect of dilutive securities: 792,459 841,060 792,279 885,744
Per Share Amount        
Effect of dilutive securities: (0.01)      
v3.19.2
Supplemental Cash Flow Information (Schedule of Net Changes In Operating Assets and Liabilities) (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]    
Trade and other receivables $ (208,486) $ (100,339)
Inventory 33,584 (27,801)
Advances against auction contracts 188 261
Prepaid expenses and deposits 739 (2,547)
Income taxes receivable (306) 6,430
Auction proceeds payable 252,765 129,008
Trade and other payables (40,263) (11,910)
Income taxes payable 3,341 6,585
Share unit liabilities   1,216
Other (5,526) 2,341
Net changes in operating assets and liabilities $ 36,036 $ 3,244
v3.19.2
Supplemental Cash Flow Information (Schedule of Supplemental Cash Flow) (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]    
Interest paid, net of interest capitalized $ 19,024 $ 20,058
Interest received 1,918 1,229
Net income taxes paid 18,455 3,547
Non-cash purchase of property, plant and equipment under capital lease $ 8,335 $ 3,012
v3.19.2
Supplemental Cash Flow Information (Schedule of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Jun. 30, 2018
Dec. 31, 2017
Supplemental Cash Flow Information [Abstract]        
Cash and cash equivalents $ 210,429 $ 237,744    
Restricted cash 128,565 67,823    
Cash, cash equivalents, and restricted cash $ 338,994 $ 305,567 $ 329,280 $ 331,116
v3.19.2
Fair Value Measurement (Details) - Recurring [Member] - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Carrying Amount [Member] | Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents $ 210,429 $ 237,744
Restricted Cash 128,565 67,823
Fair Value [Member] | Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 210,429 237,744
Restricted Cash 128,565 67,823
Short-term Debt [Member] | Carrying Amount [Member] | Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 8,010 19,896
Short-term Debt [Member] | Fair Value [Member] | Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 8,010 19,896
Senior Unsecured Notes [Member] | Long-term Debt [Member] | Carrying Amount [Member] | Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 490,027 489,136
Senior Unsecured Notes [Member] | Long-term Debt [Member] | Fair Value [Member] | Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 516,888 487,813
Delayed Draw Term Loans [Member] | Long-term Debt [Member] | Carrying Amount [Member] | Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 214,902 222,162
Delayed Draw Term Loans [Member] | Long-term Debt [Member] | Fair Value [Member] | Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument $ 216,802 $ 224,582
v3.19.2
Other Current Assets (Schedule of Other Current Assets) (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Other Current Assets [Abstract]    
Advances against auction contracts $ 15,364 $ 15,558
Assets held for sale 30,983 15,051
Prepaid expenses and deposits 17,802 18,446
Other Current Assets $ 64,149 $ 49,055
v3.19.2
Other Current Assets (Summary of Assets Held For Sale) (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2019
USD ($)
Other Current Assets [Abstract]  
Beginning balance $ 15,051
Reclassified from property, plant and equipment 15,932
Ending balance $ 30,983
v3.19.2
Other Non-current Assets (Details) - USD ($)
Jun. 30, 2019
Dec. 31, 2018
Other Non-current Assets [Abstract]    
Right-of-use asset $ 114,243,000  
Tax receivable 12,675,000 $ 12,705,000
Equity-accounted investments 4,238,000 4,010,000
Deferred debt issue costs 1,725,000 2,017,000
Other 11,996,000 10,663,000
Other Non-current Assets, Total $ 144,877,000 $ 29,395,000
v3.19.2
Debt (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Debt [Line Items]          
Repayment of debt     $ 14,514 $ 56,555  
Delayed Draw Term Loans [Member]          
Debt [Line Items]          
Repayment of debt $ 25,000,000 10,000,000 $ 50,000,000  
Committed Revolving Credit Facilities [Member]          
Debt [Line Items]          
Maximum borrowing capacity 485,960,000   485,960,000    
Available borrowing capacity $ 481,251,000   $ 481,251,000    
Revolving Credit Facility [Member]          
Debt [Line Items]          
Weighted average interest rate 2.10%   2.10%   2.30%
v3.19.2
Debt (Summary of Debt) (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Debt [Line Items]    
Short-term debt $ 8,010 $ 19,896
Long-term Debt, Total 704,929 711,298
Total debt 712,939 731,194
Current portion 18,235 13,126
Non-current portion 686,694 698,172
Delayed Draw Term Loans [Member]    
Debt [Line Items]    
Less: unamortized debt issue costs (1,900) (2,419)
Senior Unsecured Notes [Member]    
Debt [Line Items]    
Less: unamortized debt issue costs $ (9,973) (10,864)
3.974% Term Loan, Due October 2021 [Member]    
Debt [Line Items]    
Weighted average interest rate 3.974%  
3.974% Term Loan, Due October 2021 [Member] | Delayed Draw Term Loans [Member]    
Debt [Line Items]    
Long-term Debt $ 164,112 161,891
Maturity date Oct. 31, 2021  
4.398% Term Loan, Due October 2021 [Member]    
Debt [Line Items]    
Weighted average interest rate 4.398%  
4.398% Term Loan, Due October 2021 [Member] | Delayed Draw Term Loans [Member]    
Debt [Line Items]    
Long-term Debt $ 52,690 62,690
Maturity date Oct. 31, 2021  
5.375% Senior Unsecured Note, Due January 2025 [Member] | Senior Unsecured Notes [Member]    
Debt [Line Items]    
Long-term Debt $ 500,000 $ 500,000
Interest rate 5.375%  
Maturity date Jan. 31, 2025  
v3.19.2
Other Non-current Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Other Non-current Liabilities [Abstract]    
Operating lease liability $ 109,014  
Tax payable 20,464 $ 22,583
Finance lease obligation 14,710 10,146
Other 3,266 9,251
Other non-current liabilities, Total $ 147,454 $ 41,980
v3.19.2
Equity and Dividends (Narrative) (Details) - USD ($)
3 Months Ended 6 Months Ended
Sep. 18, 2019
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dividends Payable [Line Items]          
Preferred shares issued   0   0  
Stock repurchased during period, shares       1,223,674 0
Stock repurchased during period, value       $ 42,012,000  
Intra-entity foreign currency transactions   $ 2,508,000 $ (7,321,000) $ 1,653,000 $ (5,184,000)
Subsequent Event [Member]          
Dividends Payable [Line Items]          
Dividends declared (usd per share) $ 0.20        
v3.19.2
Equity and Dividends (Schedule of Quarterly Dividends Declared and Paid) (Details) - USD ($)
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
First Quarter 2019 [Member]    
Dividends Payable [Line Items]    
Declaration date Jan. 25, 2019  
Dividend per share $ 0.1800  
Record date Feb. 15, 2019  
Total dividends $ 19,568  
Payment date Mar. 08, 2019  
Second Quarter 2019 [Member]    
Dividends Payable [Line Items]    
Declaration date May 08, 2019  
Dividend per share $ 0.1800  
Record date May 29, 2019  
Total dividends $ 19,592  
Payment date Jun. 19, 2019  
First Quarter 2018 [Member]    
Dividends Payable [Line Items]    
Declaration date   Jan. 26, 2018
Dividend per share   $ 0.1700
Record date   Feb. 16, 2018
Total dividends   $ 18,246
Payment date   Mar. 09, 2018
Second Quarter 2018 [Member]    
Dividends Payable [Line Items]    
Declaration date   May 09, 2018
Dividend per share   $ 0.1700
Record date   May 30, 2018
Total dividends   $ 18,342
Payment date   Jun. 20, 2018
v3.19.2
Share-Based Payments (Narrative) (Details) - USD ($)
6 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation costs $ 7,684,000  
Unrecognized compensation costs, period for recognition 2 years 4 months 24 days  
Maximum employee contribution, percentage 4.00%  
Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Employer matching contribution, percentage 50.00%  
Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Employer matching contribution, percentage 100.00%  
Performance Share Units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation costs $ 10,544,000  
Unrecognized compensation costs, period for recognition 2 years  
Restricted Share Units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation costs $ 3,760,000  
Unrecognized compensation costs, period for recognition 1 year 7 months 6 days  
Deferred Share Units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation costs $ 0  
Share unit liability $ 4,376,000 $ 3,714,000
v3.19.2
Share-Based Payments (Compensation Costs Related To Share-Based Payments) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Stock option compensation expense     $ 3,199 $ 4,483
Equity-classified share units $ 3,535 $ 3,226 5,903 6,261
Liability-classified share units 90 346 240 1,945
Employee share purchase plan - employer contributions 572 554 1,125 1,091
Total compensation costs related to share based payments 5,857 6,266 10,467 13,780
Selling, General and Administrative Expenses [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Stock option compensation expense $ 1,660 $ 2,140 $ 3,199 4,288
Acquisition-related Costs [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Stock option compensation expense       $ 195
v3.19.2
Share-Based Payments (Summary of Stock Option Activity) (Details)
$ / shares in Units, $ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Share-Based Payments [Abstract]    
Outstanding beginning balance, Common shares under option | shares 4,013,863  
Granted, Common shares under option | shares 864,842  
Exercised, Common shares under option | shares (181,359)  
Forfeited, Common shares under option | shares (44,730)  
Outstanding ending balance, Common shares under option | shares 4,652,616 4,013,863
Exercisable, Common shares under option | shares 2,762,380  
Outstanding beginning balance, Weighted average exercise price (per share) | $ / shares $ 26.41  
Granted, Weighted average exercise price (per share) | $ / shares 33.79  
Exercised, Weighted average exercise price (per share) | $ / shares 22.73  
Forfeited, Weighted average exercise price (per share) | $ / shares 24.61  
Outstanding ending balance, Weighted average exercise price (per share) | $ / shares 27.94 $ 26.41
Exercisable, Weighted average exercise price (per share) | $ / shares $ 25.46  
Outstanding, Weighted average remaining contractual life (in years) 7 years 3 months 18 days 7 years 2 months 12 days
Exercisable, Weighted average remaining contractual life (in years) 6 years 3 months 18 days  
Outstanding beginning balance, Aggregate intrinsic value | $ $ 25,374  
Exercised, Aggregate intrinsic value | $ 2,277  
Outstanding ending balance, Aggregate intrinsic value | $ 25,077 $ 25,374
Exercisable, Aggregate intrinsic value | $ $ 21,443  
v3.19.2
Share-Based Payments (Summary of Stock Option and Performance Share Unit Pricing Assumptions) (Details)
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Risk free interest rate 2.50% 2.70%
Expected dividend yield 2.06% 2.11%
Expected lives 5 years 5 years
Expected volatility 26.80% 28.10%
Performance Share Units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Risk free interest rate   1.90%
Expected dividend yield   2.09%
Expected lives   3 years
Expected volatility   31.10%
Average expected volatility of comparable companies   34.10%
v3.19.2
Share-Based Payments (Summary of Share Unit Activity) (Details)
6 Months Ended
Jun. 30, 2019
$ / shares
shares
Performance Share Units [Member] | Equity Securities [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Outstanding beginning balance, Shares | shares 670,288
Granted, Shares | shares 158,815
Vested and settled, Shares | shares (231,873)
Forfeited, Shares | shares (7,167)
Outstanding ending balance, Shares | shares 590,063
Outstanding beginning balance, Weighted average grant date fair value (per share) | $ / shares $ 31.46
Granted, Weighted average grant date fair value (per share) | $ / shares 36.39
Vested and settled, Weighted average grant date fair value (per share) | $ / shares 30.41
Forfeited, Weighted average grant date fair value (per share) | $ / shares 31.67
Outstanding ending balance, Weighted average grant date fair value (per share) | $ / shares $ 33.20
Restricted Share Units [Member] | Equity Securities [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Outstanding beginning balance, Shares | shares 207,986
Granted, Shares | shares 28,371
Vested and settled, Shares | shares (260)
Forfeited, Shares | shares (3,226)
Outstanding ending balance, Shares | shares 232,871
Outstanding beginning balance, Weighted average grant date fair value (per share) | $ / shares $ 28.99
Granted, Weighted average grant date fair value (per share) | $ / shares 36.22
Vested and settled, Weighted average grant date fair value (per share) | $ / shares 31.98
Forfeited, Weighted average grant date fair value (per share) | $ / shares 34.84
Outstanding ending balance, Weighted average grant date fair value (per share) | $ / shares $ 29.79
Deferred Share Units [Member] | Debt securities  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Outstanding beginning balance, Shares | shares 113,435
Granted, Shares | shares 13,601
Outstanding ending balance, Shares | shares 127,036
Outstanding beginning balance, Weighted average grant date fair value (per share) | $ / shares $ 28.16
Granted, Weighted average grant date fair value (per share) | $ / shares 35.23
Outstanding ending balance, Weighted average grant date fair value (per share) | $ / shares $ 28.92
v3.19.2
Leases (Narrative) (Details) - USD ($)
Jun. 30, 2019
Dec. 31, 2018
Leases [Line Items]    
Right-of-use asset $ 114,243,000  
Weighted average remaining lease term 15 years 10 months 24 days  
Discount rate 4.30%  
Weighted average remaining finance lease term 3 years 7 months 6 days  
Finance discount rate 3.90%  
Future minimum sublease payments $ 872,000  
Net book value $ 473,036,000 $ 486,599,000
Minimum [Member]    
Leases [Line Items]    
Operating lease fixed term 1 month  
Finance lease term 1 month  
Maximum [Member]    
Leases [Line Items]    
Operating lease fixed term 20 years  
Finance lease term 6 years  
Existing auction site [Member]    
Leases [Line Items]    
Right-of-use asset $ 19,200,000  
Computer Equipment [Member]    
Leases [Line Items]    
Net book value 8,005,000 5,436,000
Yard And Other [Member]    
Leases [Line Items]    
Net book value 11,794,000  
Yard and Auto Equipment [Member]    
Leases [Line Items]    
Net book value   9,540,000
Finance leases [Member]    
Leases [Line Items]    
Net book value $ 19,799,000 $ 14,976,000
v3.19.2
Leases (Breakdown of Lease Expense) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Commitments [Abstract]    
Operating lease cost $ 4,071 $ 9,283
Amortization of leased assets 1,692 3,452
Interest on lease liabilities 199 354
Short-term lease cost 2,510 5,075
Sublease income (143) (297)
Lease expense $ 8,329 $ 17,867
v3.19.2
Leases (Future Minimum Operating Lease Payments) (Details)
$ in Thousands
Jun. 30, 2019
USD ($)
Commitments [Abstract]  
Remainder of 2019 $ 7,734
2020 15,449
2021 12,522
2022 11,089
2023 9,327
Thereafter 109,628
Total future minimum lease payments 165,749
less: imputed interest (46,596)
Total operating lease liability 119,153
less: operating lease liability - current (10,139)
Total operating lease liability - non current $ 109,014
v3.19.2
Leases (Information Disclosed on Balance Sheets) (Details) - USD ($)
Jun. 30, 2019
Dec. 31, 2018
Property, Plant and Equipment [Line Items]    
Net book value $ 473,036,000 $ 486,599,000
Computer Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Cost 13,816,000 9,428,000
Accumulated depreciation (5,811,000) (3,992,000)
Net book value 8,005,000 5,436,000
Yard And Other [Member]    
Property, Plant and Equipment [Line Items]    
Cost 15,558,000  
Accumulated depreciation (3,764,000)  
Net book value 11,794,000  
Yard and Auto Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Cost   12,125,000
Accumulated depreciation   (2,585,000)
Net book value   9,540,000
Finance leases [Member]    
Property, Plant and Equipment [Line Items]    
Cost 29,374,000 21,553,000
Accumulated depreciation (9,575,000) (6,577,000)
Net book value $ 19,799,000 $ 14,976,000
v3.19.2
Leases (Future Minimum Finance Lease Payments) (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Commitments [Abstract]    
Remainder of 2019 $ 3,799  
2020 6,715  
2021 5,372  
2022 3,632  
2023 2,148  
Thereafter 658  
Total future minimum lease payments 22,324  
less: imputed interest (1,426)  
Total finance lease liability 20,898  
less: finance lease liability - current (6,188)  
Total finance lease liability - non current $ 14,710 $ 10,146
v3.19.2
Commitments (Details)
6 Months Ended
Jun. 30, 2019
USD ($)
item
Commitments [Line Items]  
Purchase commitment amount purchased $ 10,965,000
Minimum [Member]  
Commitments [Line Items]  
Purchase commitment quantity | item 150,000
Purchase commitment $ 11,104,000
Maximum [Member]  
Commitments [Line Items]  
Purchase commitment quantity | item 245,900
Purchase commitment $ 51,028,000
v3.19.2
Contingencies (Details) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Contingencies [Abstract]    
Assets guaranteed under contract $ 70,848,000 $ 41,461,000
Percentage of assets expected to be sold 60.00% 51.00%