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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number: 001-13425
RB Logo.jpg
RB Global, Inc.
(Exact Name of Registrant as Specified in its Charter)
Canada
98-0626225
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
             Two Westbrook Corporate Center, Suite 500,
Westchester, Illinois, USA
60154
(Address of Principal Executive Offices)(Zip Code)
(708) 492-7000
(Registrant’s Telephone Number, including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common sharesRBANew York Stock Exchange
Common Share Purchase RightsN/ANew York Stock Exchange
Indicate by checkmark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
o
Non-accelerated filer
o
Smaller reporting company
o
Emerging growth company
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):
Yes o No x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date: 184,414,894 common shares, without par value, outstanding as of October 31, 2024.

RB GLOBAL, INC.
FORM 10-Q
INDEX
1
2
3
4
6
7

PART I – FINANCIAL INFORMATION
ITEM 1:    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Income Statements
(Expressed in millions of U.S. dollars, except share and per share data)
(Unaudited)
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
Revenue:
Service revenue$779.9 $773.8 $2,488.1 $1,923.4 
Inventory sales revenue201.9 246.0 654.5 715.3 
Total revenue981.8 1,019.8 3,142.6 2,638.7 
Operating expenses:    
Costs of services339.7 316.8 1,041.5 680.5 
Cost of inventory sold193.5 230.0 612.8 673.4 
Selling, general and administrative177.8 203.5 584.5 546.2 
Acquisition-related and integration costs6.0 23.1 22.9 195.6 
Depreciation and amortization111.9 101.1 329.9 246.9 
Total operating expenses828.9 874.5 2,591.6 2,342.6 
Gain on disposition of property, plant and equipment0.5 0.5 3.2 4.4 
Operating income153.4 145.8 554.2 300.5 
Interest expense(57.2)(63.7)(181.0)(149.6)
Interest income6.9 4.5 20.3 15.8 
Other income (loss), net(1.2)0.4 (2.2)3.0 
Foreign exchange gain (loss)0.3 (0.7)(1.6)(1.4)
Income before income taxes102.2 86.3 389.7 168.3 
Income tax expense26.2 23.1 95.3 46.5 
Net income$76.0 $63.2 $294.4 $121.8 
Net income (loss) attributable to:    
Controlling interests$76.1 $63.4 $294.6 $122.2 
Redeemable non-controlling interests(0.1)(0.2)(0.2)(0.4)
Net income$76.0 $63.2 $294.4 $121.8 
Net income attributable to controlling interests76.1 63.4 294.6 122.2 
Cumulative dividends on Series A Senior Preferred Shares(6.7)(6.7)(20.1)(17.6)
Allocated earnings to Series A Senior Preferred Shares(2.5)(2.0)(9.8)(5.5)
Net income available to common stockholders$66.9 $54.7 $264.7 $99.1 
Earnings per share available to common stockholders:    
Basic$0.36 $0.30 $1.44 $0.61 
Diluted$0.36 $0.30 $1.43 $0.61 
Weighted average number of shares outstanding:
Basic184,304,993182,148,717183,752,510161,724,677
Diluted185,499,988183,601,601184,999,899162,916,593
See accompanying notes to the condensed consolidated financial statements.
RB Global, Inc.
1
Condensed Consolidated Statements of Comprehensive Income
(Expressed in millions of U.S. dollars)
(Unaudited)
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
Net income$76.0 $63.2 $294.4 $121.8 
Other comprehensive income (loss), net of income tax:    
Foreign currency translation adjustment28.6 (31.4)(6.9)1.6 
Comprehensive income$104.6 $31.8 $287.5 $123.4 
Comprehensive income (loss) attributable to:    
Controlling interests$104.6 $32.0 $287.6 $123.8 
Non-controlling interests0.1 — 0.1 — 
Redeemable non-controlling interests(0.1)(0.2)(0.2)(0.4)
Comprehensive income$104.6 $31.8 $287.5 $123.4 
See accompanying notes to the condensed consolidated financial statements.
RB Global, Inc.
2
Condensed Consolidated Balance Sheets
(Expressed in millions of U.S. dollars, except share data)
(Unaudited)
September 30,
2024		December 31,
2023
Assets
Current assets:
Cash and cash equivalents$650.7 $576.2 
Restricted cash139.4 171.7 
Trade and other receivables, net of allowance for credit losses of $8.4 and $6.4, respectively
736.3 731.5 
Prepaid consigned vehicle charges60.7 66.9 
Inventory163.9 166.5 
Other current assets82.4 91.2 
Income taxes receivable25.4 10.0 
Total current assets1,858.8 1,814.0 
Property, plant and equipment, net1,259.5 1,200.9 
Operating lease right-of-use assets1,431.9 1,475.5 
Other non-current assets96.7 85.6 
Intangible assets, net2,736.5 2,914.1 
Goodwill4,537.1 4,537.0 
Deferred tax assets11.5 10.3 
Total assets$11,932.0 $12,037.4 
Liabilities, Temporary Equity and Stockholders' Equity
Current liabilities:
Auction proceeds payable$546.7 $502.5 
Trade and other liabilities740.9 685.8 
Current operating lease liabilities116.4 118.0 
Income taxes payable9.3 8.5 
Short-term debt31.4 13.7 
Current portion of long-term debt4.4 14.2 
Total current liabilities1,449.1 1,342.7 
Long-term operating lease liabilities1,326.2 1,354.3 
Long-term debt2,724.9 3,061.6 
Other non-current liabilities90.6 86.7 
Deferred tax liabilities639.5 682.7 
Total liabilities6,230.3 6,528.0 
Temporary equity:
Series A Senior Preferred Shares; shares authorized, issued and outstanding: 485,000,000 (December 31, 2023: 485,000,000)
482.0 482.0 
Redeemable non-controlling interest8.2 8.4 
Stockholders' equity:  
Senior preferred and junior preferred stock, unlimited shares authorized; shares issued and outstanding, other than Series A Senior Preferred Shares: nil (December 31, 2023: nil)
— — 
Common stock, no par value, unlimited shares authorized; shares issued and outstanding: 184,407,685 (December 31, 2023: 182,843,942)
4,140.5 4,054.2 
Additional paid-in capital85.2 88.0 
Retained earnings1,034.4 918.5 
Accumulated other comprehensive loss(51.0)(44.0)
Stockholders' equity5,209.1 5,016.7 
Non-controlling interests2.4 2.3 
Total stockholders' equity5,211.5 5,019.0 
Total liabilities, temporary equity and stockholders' equity$11,932.0 $12,037.4 
See accompanying notes to the condensed consolidated financial statements.
RB Global, Inc.
3
Condensed Consolidated Statements of Changes in Temporary Equity and Stockholders' Equity
(Expressed in millions of U.S. dollars, except where noted)
(Unaudited)
Redeemable
non-
controlling
interest		Attributable to common stockholdersNon-
controlling
interest		Total stockholders' equity
Senior A Senior Preferred SharesCommon stockAdditional
paid-In
capital		Retained
earnings		Accumulated
other
comprehensive
loss
Number of
shares		AmountNumber of
shares		Amount
Three months ended September 30, 2024
Balance, June 30, 2024485,000,000$482.0 $8.3 184,238,275$4,132.7 $81.9 $1,020.2 $(79.5)$2.3 $5,157.6 
Net income (loss)—— (0.1)—— — 76.1 — — 76.1 
Other comprehensive income—— — —— — — 28.5 0.1 28.6 
—— (0.1)—— — 76.1 28.5 0.1 104.7 
Stock option exercises—— — 116,5086.9 (1.2)— — — 5.7 
Issuance of common stock related to vesting of share units—— — 52,9020.9 (4.3)— — — (3.4)
Share-based payments expense—— — —— 9.1 — — — 9.1 
Equity-classified share units dividend equivalents—— — —— (0.3)0.3 — — — 
Participating dividends on Series A Senior Preferred Shares—— — —— — (2.0)— — (2.0)
Preferred dividends on Series A Senior Preferred Shares—— — —— — (6.7)— — (6.7)
Dividends paid to common stockholders—— — —— — (53.5)— — (53.5)
Balance, September 30, 2024485,000,000$482.0 $8.2 184,407,685$4,140.5 $85.2 $1,034.4 $(51.0)$2.4 $5,211.5 
Three months ended September 30, 2023
Balance, June 30, 2023485,000,000$482.0 $8.7 181,983,976$3,995.1 $89.7 $887.1 $(52.1)$2.3 $4,922.1 
Net income (loss)—— (0.2)—— — 63.4 — — 63.4 
Other comprehensive loss—— — —— — — (31.4)— (31.4)
—— (0.2)—— — 63.4 (31.4)— 32.0 
Stock option exercises—— — 250,27514.5 (2.9)— — — 11.6 
Issuance of common stock related to vesting of share units—— — 15,6010.8 (1.3)— — — (0.5)
Share-based continuing employment costs related to business combinations—— — —0.3 0.4 — — — 0.7 
Share-based payments expense—— — —— 5.9 — — — 5.9 
Equity-classified share units dividend equivalents—— — —— 0.3 (0.3)— — — 
Participating dividends on Series A Senior Preferred Shares—— — —— — (1.8)— — (1.8)
Preferential dividends on Series A Senior Preferred Shares—— — —— — (6.7)— — (6.7)
Dividends paid to common stockholders—— — —— — (49.2)— — (49.2)
Balance, September 30, 2023485,000,000$482.0 $8.5 182,249,852$4,010.7 $92.1 $892.5 $(83.5)$2.3 $4,914.1 
RB Global, Inc.
4
Redeemable
non-
controlling
interest		Attributable to common stockholdersNon-
controlling
interest		Total stockholders' equity
Senior A Senior Preferred SharesCommon stockAdditional
paid-In
capital		Retained
earnings		Accumulated
other
comprehensive
loss
Number of
shares		AmountNumber of
shares		Amount
Nine months ended September 30, 2024
Balance, December 31, 2023485,000,000$482.0 $8.4 182,843,942$4,054.2 $88.0 $918.5 $(44.0)$2.3 $5,019.0 
Net income (loss)—— (0.2)—— — 294.6 — — 294.6 
Other comprehensive income (loss)—— — —— — — (7.0)0.1 (6.9)
—— (0.2)—— — 294.6 (7.0)0.1 287.7 
Stock option exercises—— — 979,26656.0 (11.5)— — — 44.5 
Issuance of common stock related to vesting of share units—— — 331,84714.0 (29.6)— — — (15.6)
Issuance of common stock related to ESPP —— — 257,05116.3 (3.2)— — — 13.1 
Share-based continuing employment costs related to business combinations—— — (4,421)— (0.2)— — — (0.2)
Share-based payments expense—— — —— 41.0 — — — 41.0 
Equity-classified share units dividend equivalents—— — —— 0.7 (0.7)— — — 
Participating dividends on Series A Senior Preferred Shares—— — —— — (5.5)— — (5.5)
Preferential dividends on Series A Senior Preferred Shares—— — —— — (20.1)— — (20.1)
Dividends paid to common stockholders—— — —— — (152.4)— — (152.4)
Balance, September 30, 2024485,000,000$482.0 $8.2 184,407,685$4,140.5 $85.2 $1,034.4 $(51.0)$2.4 $5,211.5 
Nine months ended September 30, 2023
Balance, December 31, 2022—$— $— 110,881,363$246.3 $85.3 $1,043.2 $(85.1)$0.5 $1,290.2 
Net income (loss)—— (0.4)—— — 122.2 — — 122.2 
Other comprehensive income—— — —— — — 1.6 — 1.6 
—— (0.4)—— — 122.2 1.6 — 123.8 
Stock option exercises—— — 351,34919.4 (3.8)— — — 15.6 
Issuance of common stock related to vesting of share units—— — 426,25415.9 (33.6)— — — (17.7)
Issuance of common stock related to business combination—— — 70,339,7233,713.2 — — — — 3,713.2 
Share-based continuing employment costs related to business combinations—— — — 0.9 1.4 — — — 2.3 
Replacement of share-based awards in business combination—— — — — 13.1 — — — 13.1 
Share-based payments expense—— — — — 28.5 — — — 28.5 
Equity-classified share units dividend equivalents—— — — — 1.2 (1.2)— — — 
Non-controlling interest acquired in business combination—— 8.9 —— — — — 1.8 1.8 
Issuance of Series A Senior Preferred Shares and common stock, net of issuance costs485,000,000482.0 — 251,16315.0 — — — — 15.0 
Participating dividends on Series A Senior Preferred Shares—— — —— — (5.4)— — (5.4)
Preferential dividends on Series A Senior Preferred Shares—— — —— — (17.6)— — (17.6)
Dividends paid to common stockholders—— — —— — (248.7)— — (248.7)
Balance, September 30, 2023485,000,000$482.0 $8.5 182,249,852$4,010.7 $92.1 $892.5 $(83.5)$2.3 $4,914.1 


See accompanying notes to the condensed consolidated financial statements.
RB Global, Inc.
5
Condensed Consolidated Statements of Cash Flows
(Expressed in millions of U.S. dollars)
(Unaudited)
Nine months ended September 30,20242023
Cash provided by (used in):
Operating activities:
Net income$294.4 $121.8 
Adjustments for items not affecting cash:
Depreciation and amortization329.9 246.9 
Share-based payments expense45.2 39.9 
Deferred income tax benefit(44.5)(31.4)
Unrealized foreign exchange (gain) loss (0.5)5.4 
Gain on disposition of property, plant and equipment(3.2)(4.4)
Allowance for expected credit losses5.4 — 
Loss on redemption of notes— 3.3 
Gain on remeasurement of investment upon acquisition— (1.4)
Amortization of debt issuance costs9.7 7.1 
Amortization of right-of-use assets114.7 72.9 
Other, net16.1 7.0 
Net changes in operating assets and liabilities(19.7)(260.4)
Net cash provided by operating activities747.5 206.7 
Investing activities:
Acquisition of IAA, net of cash acquired— (2,755.2)
Acquisition of VeriTread, net of cash acquired— (24.7)
Property, plant and equipment additions(110.8)(153.6)
Proceeds on disposition of property, plant and equipment1.5 31.6 
Intangible asset additions(83.7)(83.3)
Proceeds from repayment of loans receivable6.3 2.3 
Issuance of loans receivable(20.8)(18.8)
Other(2.1)(0.6)
Net cash used in investing activities(209.6)(3,002.3)
Financing activities:
Issuance of Series A Senior Preferred Shares and common stock, net of issuance costs— 496.9 
Dividends paid to common stockholders(152.4)(248.7)
Dividends paid to Series A Senior Preferred shareholders(25.6)(21.9)
Proceeds from exercise of options and share option plans57.5 15.5 
Payment of withholding taxes on issuance of shares(14.6)(14.6)
Net increase (decrease) in short-term debt16.4 (23.9)
Proceeds from long-term debt— 3,175.0 
Repayment of long-term debt(353.3)(603.3)
Payment of debt issue costs— (41.7)
Repayment of finance lease and equipment financing obligations(19.7)(13.6)
Proceeds from equipment financing obligations2.0 11.1 
Payment of contingent consideration(1.9)(2.0)
Net cash (used in) provided by financing activities(491.6)2,728.8 
Effect of changes in foreign currency rates on cash, cash equivalents, and restricted cash(4.1)0.1 
Net increase (decrease) in cash, cash equivalents, and restricted cash42.2 (66.7)
Cash, cash equivalents, and restricted cash, beginning of period747.9 625.9 
Cash, cash equivalents, and restricted cash, end of period$790.1 $559.2 
See accompanying notes to the condensed consolidated financial statements.
RB Global, Inc.
6
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
1. Description of Business and Basis of Preparation
Description of Business
RB Global, Inc. and its subsidiaries (collectively referred to as the “Company”, “RB Global”, "we", "us" or “our”) is a leading, omnichannel marketplace that provides value-added insights, services and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. The Company has auction sites in 13 countries and a digital platform to serve customers in more than 170 countries across a variety of asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining and agriculture.
The Company's marketplace brands include Ritchie Bros., the world's largest auctioneer of commercial assets and vehicles offering online bidding, and IAA, a leading global digital marketplace connecting vehicle buyers and sellers. RB Global's portfolio of brands also includes Rouse Services, which provides a complete end-to-end asset management, data-driven intelligence and performance benchmarking system, SmartEquip, an innovative technology platform that supports customers' management of the equipment lifecycle and integrates parts procurement with both original equipment manufacturers and dealers, and VeriTread, an online marketplace for heavy haul transport.
RB Global, Inc. is a company incorporated in Canada under the Canada Business Corporations Act, whose shares are publicly traded on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”).
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 RB Global, Inc. and its subsidiaries from their respective dates of formation, acquisition, or control. 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, 2023, included in the Company’s 2023 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”). These unaudited condensed consolidated interim financial statements follow the same accounting policies and methods of application as the Company's most recent annual audited consolidated financial statements. 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 temporary equity and stockholders' equity for the interim periods presented. The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates, and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Unless otherwise indicated, all amounts in the following tables are in millions except share and per share amounts.
2. Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which will require enhanced annual disclosures regarding rate reconciliations and income taxes paid information. The amendments are effective for the Company for fiscal year 2025, with early adoption permitted.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will require enhanced disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"). The amendments are effective for the Company for fiscal year 2024 and for interim periods commencing fiscal year 2025.
RB Global, Inc.
7
2. Recent Accounting Pronouncements (continued)
The Company is currently evaluating the impact of the adoption of the above ASU's on its consolidated financial statements and related disclosures.
3. Business Combinations
(a)IAA Acquisition
On March 20, 2023, the Company completed its acquisition of IAA, Inc. ("IAA") for a total purchase price of approximately $6.6 billion. The Company acquired IAA to create a leading omnichannel marketplace for vehicle buyers and sellers. IAA stockholders received $12.80 per share in cash and 0.5252 shares of the Company for each share of IAA common stock they owned (the “Exchange Ratio”). As such, the Company paid $1.7 billion in cash consideration and issued 70.3 million shares of its common stock. In addition, the Company repaid $1.2 billion of IAA’s net debt, which included all outstanding borrowings and unpaid fees under IAA’s credit agreement and $500.0 million principal amount of IAA senior notes, at a redemption price equal to 102.75% of the principal amount plus accrued and unpaid interest. IAA’s outstanding equity awards were also cancelled and exchanged into equivalent outstanding equity awards relating to the Company’s common stock, based on the equity award exchange ratio of 0.763139.
The acquisition was accounted for in accordance with ASC 805, Business Combinations. The following table summarizes the final allocation of the purchase price to the fair value of assets acquired and liabilities assumed:
Purchase price (cash: $1,714.2 million; fair value of common shares issued: $3,712.9 million; repayment of net debt: $1,157.1 million; reimbursement of costs: $48.8 million; and fair value of exchanged equity awards: $13.1 million)
$6,646.1 
Assets acquired 
Cash and cash equivalents166.6 
Trade and other receivables497.3 
Inventory57.1 
Other current assets28.0 
Income taxes receivable0.6 
Property, plant and equipment618.5 
Operating lease right-of-use assets1,289.7 
Other non-current assets34.8 
Intangible assets 2,712.1 
Liabilities assumed 
Auction proceeds payable60.7 
Trade and other liabilities257.0 
Current operating lease liability77.5 
Income taxes payable3.5 
Long-term operating lease liability1,192.7 
Other non-current liabilities24.3 
Deferred tax liabilities689.5 
Fair value of identifiable net assets acquired3,099.5 
Goodwill acquired on acquisition$3,546.6 
RB Global, Inc.
8

3. Business Combinations (Continued)
The following table summarizes the final fair values of the identifiable intangible assets acquired:
AssetFair value
at acquisition		Weighted average
amortization period
Customer relationships$2,293.5 15 years
Developed technology245.2 4 years
Trade names and trademarks166.6 5 years
Software under development6.8 — 
Total$2,712.1 13.4 years
Goodwill relates to synergies expected to be achieved from the operations of the combined company, the assembled workforce of IAA, and intangible assets that do not qualify for separate recognition. Expected synergies include both increased revenue opportunities and the cost savings from the planned integration of platform infrastructure, facilities, personnel, and systems. The transaction is considered a non-taxable business combination and the goodwill is not deductible for tax purposes.
(b)VeriTread Acquisition
On January 3, 2023, the Company acquired 8,889,766 units of VeriTread, for $25.1 million cash consideration from its existing unitholders and acquired another 1,056,338 units through an investment of $3.0 million cash. As a result, the Company increased its investment in VeriTread to 75% and obtained control of VeriTread pursuant to an amended operating agreement on January 18, 2023. Immediately prior to the acquisition, the Company owned 11% of VeriTread, with an acquisition date fair value of $4.3 million based on the per unit purchase price, and therefore, upon remeasurement of its previously held interest, the Company recorded a gain of $1.4 million in other income, net at acquisition. VeriTread is a transportation technology company that provides an online marketplace solution for open deck transport, connecting shippers and service providers.
Concurrently, the Company entered into a put/call agreement with one of the minority unitholders of VeriTread for its remaining units, another 21% ownership interest. Pursuant to this agreement, the minority unitholder has rights, in certain circumstances, to put or sell its remaining units of VeriTread to the Company, subject to VeriTread achieving certain performance targets at a predetermined value or fair value, depending on the timing and targets achieved. The Company also has the right to call or purchase the remaining units of the minority unitholder upon achievement of certain integration milestones at fair value. The redeemable non-controlling interest is classified in temporary equity on the interim condensed consolidated balance sheet. On the acquisition date the Company determined that redemption of the redeemable non-controlling interest was probable. An additional non-controlling interest of 4% held in VeriTread is classified within equity as that interest does not contain put/call options.
The acquisition was accounted for in accordance with ASC 805, Business Combinations. The following table summarizes the final allocation of the purchase price to the fair value of assets acquired and liabilities assumed:
Purchase price (cash: $28.1 million; and fair value of previously held equity interest: $4.3 million)
$32.4 
 
Fair value of identifiable net assets acquired17.9 
Redeemable non-controlling interest(8.9)
Non-controlling interest(1.8)
Goodwill acquired on acquisition$25.2 
The final fair value of identifiable net assets acquired consists of cash and cash equivalents of $3.4 million, trade and other receivables and other current assets of $0.9 million, trade and other liabilities of $1.1 million, and identifiable intangible assets of $14.7 million as summarized in the following table:
RB Global, Inc.
9

3. Business Combinations (Continued)
AssetFair value
at acquisition		Weighted average
amortization period
Customer relationships$7.2 5 years
Software and technology assets7.1 7 years
Trade names and trademarks0.4 2 years
Total$14.7 5.9 years
Goodwill relates to benefits expected from the acquisition of VeriTread’s business, its assembled workforce and associated technical expertise, as well as anticipated synergies from applying VeriTread’s transportation platform, network of transport carriers, equipment database and services to the Company’s customer base. This acquisition is expected to accelerate the Company’s marketplace strategy, which brings services, insights, and transaction solutions together to improve the overall customer experience. The transaction is considered a non-taxable business combination and the goodwill is not deductible for tax purposes.
4. Segment Information
The Company has one operating and reportable segment which reflects the manner in which the CODM, the Company's Chief Executive Officer, reviews and assesses the performance of the business and allocates resources. The CODM does not evaluate the performance of the Company or allocate resources at any level below the consolidated level or based on the Company's assets or liabilities.
The following table summarizes revenue by geographic area based on the location of the underlying auction activity or rendering of services:
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
United States$724.0 $767.1 $2,282.7 $1,881.5 
Canada130.7 126.8 466.4 383.4 
Europe84.9 80.6 248.5 223.1 
Australia27.1 25.0 88.9 90.3 
Other15.1 20.3 56.1 60.4 
Total revenue$981.8 $1,019.8 $3,142.6 $2,638.7 
5. Revenue
In the third quarter of 2024, the Company updated its presentation of disaggregated revenue to be consistent with how management currently evaluates its financial and business performance. The prior year disaggregation of revenue amounts have been recast to conform with current period presentation.
Revenue continues to be disaggregated by service revenue and inventory sales revenue. Total service revenue is further disaggregated by customer type, between revenue earned from buyers or sellers who transact in live and online auctions, online marketplaces and private brokerage, as well as by marketplace services revenue; revenue earned from optional value-added services provided to customers. Prior to the third quarter of 2024, the Company disaggregated its revenue by commissions earned from its consignors, buyer fees earned from its buyers in each sale transaction, and presented all other fees earned in the rendering of services, whether related to auctions, online marketplaces, private brokerage or other services, within marketplace services revenue. In the current quarter, the Company has updated its disaggregated revenue presentation, and as a result transactional seller revenue now includes commissions, pre-negotiated or fixed, as well as certain auction related fees earned from sellers to complete the sale of an asset, and transactional buyer revenue includes all auction-related fees or charges earned from buyers to complete the purchase of an asset. Accordingly, certain auction-related fees were reclassified from marketplace services revenue to transactional seller or transactional buyer revenue. These changes were made in order to align with how management categorize revenues for internal management purposes.
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5. Revenue (continued)
The following table summarizes the Company's revenue from the rendering of services and the sale of inventory:
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
Transactional seller revenue$206.6 $223.2 $695.9 $607.0 
Transactional buyer revenue486.9 476.6 1,522.3 1,104.5 
Marketplace services revenue86.4 74.0 269.9 211.9 
Total service revenue779.9 773.8 2,488.1 1,923.4 
Inventory sales revenue201.9 246.0 654.5 715.3 
Total revenue$981.8 $1,019.8 $3,142.6 $2,638.7 

Transactional seller revenue includes commissions earned from consignors on the sale of consigned assets, as well as other fees earned from consignors to facilitate the sale of an asset such as towing to our yards, liens search, title processing and online listing and inspection fees.

Transactional buyer revenue includes transaction fees based on a tiered structure earned from the purchasers of consigned assets and inventory, as well as other fees earned from buyers to complete the purchase of an asset, such as title processing, late pick-up, salvage buyer platform registration and other administrative processing charges.

Marketplace services revenue includes fees earned from various optional services provided to buyers, sellers, or other third-parties, such as transportation, buyer towing, refurbishment, financing, parts procurement, data and appraisal, and other ancillary services.
In addition, during the three and nine months ended September 30, 2024, approximately 24% and 22%, respectively, of consolidated revenues were associated with vehicles supplied by the Company's three largest provider customers.
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6. Operating Expenses
Acquisition-Related and Integration Costs

Acquisition-related and integration costs consist of operating expenses incurred in connection with business combinations, such as due diligence, advisory, legal, integration, severance, acceleration of share-based payments expense, and share-based continuing employment costs. Integration costs primarily include expenses incurred with third-parties to support integration activities to achieve cost synergies and integration goals relating to recent acquisitions.
The following table summarizes acquisition-related and integration costs by significant acquisition and nature:
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
IAA acquisition
Financing$— $— $— $30.0 
Severance2.9 6.6 10.6 29.3 
Integration2.7 11.7 9.7 28.8 
Acceleration of share-based payments expense0.1 0.6 1.0 6.5 
Legal— 0.1 — 12.2 
Investment banking, consulting and other acquisition-related costs0.1 2.9 1.2 67.2 
Settlement of pre-existing contractual arrangement— — — 16.3 
5.8 21.9 22.5 190.3 
Other acquisitions0.2 1.2 0.4 5.3 
Total acquisition-related and integration costs$6.0 $23.1 $22.9 $195.6 
Depreciation and Amortization
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
Depreciation$26.2 $24.9 $76.4 $61.9 
Amortization85.7 76.2 253.5 185.0 
$111.9 $101.1 $329.9 $246.9 
7. Income Taxes

Income tax expense for interim periods is based upon an estimate of the annual effective tax rate, adjusted for the effects of any significant and infrequent or unusual items required to be recognized discretely within the current interim period. The estimated income tax expense reflects, among other items, management’s best estimate of operating results. It does not include the estimated impact of foreign exchange rate fluctuations or unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes.

The Company's effective tax rate was 25.6% for the three months ended September 30, 2024 and 24.5% for the nine months ended September 30, 2024. The variance from the statutory federal and provincial tax rate in British Columbia, Canada of 27.0% relates primarily to a higher estimate of income taxed in jurisdictions with lower tax rates.

The Company is routinely subject to tax audits and reviews in various jurisdictions around the world. Tax authorities may challenge the manner in which the Company has filed its tax returns and reported its income.

On February 13, 2023, the Canadian Revenue Agency ("CRA") issued a proposal letter to the Company asserting that one of its Luxembourg subsidiaries, which was in operation from 2010 until 2020, was resident in Canada from 2010 through 2015 and that its worldwide income should be subject to Canadian income taxation. The Company responded to the CRA’s proposal letter on June 12,
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7. Income Taxes (continued)
2023 rejecting the assertion regarding Canadian residency. On September 6, 2024, the CRA issued the Company a letter confirming its intention to issue a notice of assessment for the taxation years 2010 through 2015. The Company plans to vigorously defend the notice of assessment as it believes it is and has been in full compliance with Canadian tax laws. As such, the Company plans to file a notice of objection with the CRA at which time the Company will be obligated to deposit at least 50% of the assessed amount to the CRA (which deposit is required by law as part of the CRA's objection process and which would be refunded to the Company in the event that the Company prevailed in its objection or subsequent legal proceedings). In the event that a court of competent jurisdiction makes a final determination that the income of the Luxembourg subsidiary for 2010 through 2015 was subject to Canadian income tax laws, the Company may ultimately be liable for additional total Canadian federal and provincial income tax of approximately $26.0 to $30.0 million, exclusive of interest and penalties, which could be material relative to the size of the tax assessment. If the Company is unsuccessful in appealing the matter, the Company could incur additional income taxes, penalties and interest, which could have a material negative effect on its operations. At September 30, 2024, the Company has not recorded any amounts relating to this matter in the consolidated financial statements because it is the Company’s conclusion that it is more likely than not that the Company’s tax filing position will ultimately be sustained on appeal. During the third quarter of 2024, the CRA has also requested additional information regarding the 2016 to 2020 taxation years.

The Company is unable to predict the ultimate outcome of this matter and the final disposition of any appeals, which could take numerous years to resolve.
8. Earnings Per Share Available to Common Stockholders
The following table details the computation of basic and diluted earnings per share:
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
Net income available to common stockholders$66.9 $54.7 $264.7 $99.1 
Denominator:
Basic weighted average shares outstanding184,304,993182,148,717183,752,510161,724,677
Weighted average effect of dilutive securities:
Share units590,407875,477617,090655,762
Stock options and employee share purchase plan604,588577,407630,299536,154
Diluted weighted average shares outstanding185,499,988 183,601,601 184,999,899 162,916,593 
Earnings per share available to common stockholders:
Basic$0.36 $0.30 $1.44 $0.61 
Diluted$0.36 $0.30 $1.43 $0.61 
RB Global, Inc.
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9. Supplemental Cash Flow Information
Net Changes in Operating Assets and Liabilities
Nine months ended September 30,20242023
Trade and other receivables$(0.3)$(224.2)
Prepaid consigned vehicle charges6.1 (57.4)
Inventory(8.1)(18.7)
Advances against auction contracts14.3 (4.0)
Prepaid expenses and deposits(5.3)(0.7)
Income taxes receivable(15.5)(38.1)
Auction proceeds payable46.1 152.9 
Trade and other liabilities49.7 60.8 
Income taxes payable1.2 (40.9)
Operating lease obligations(98.9)(89.4)
Other(9.0)(0.7)
Net changes in operating assets and liabilities$(19.7)$(260.4)
Other Supplemental Cash Flow Information
Nine months ended September 30,20242023
Interest paid, net of interest capitalized$201.1 $126.8 
Interest received20.3 15.8 
Net income taxes paid156.0 155.6 
Non-cash purchase of property, plant and equipment under finance lease25.2 10.2 
Non-cash operating right of use assets obtained in exchange for new lease obligations80.5 147.9 
10. Fair Value Measurement
The following table summarizes the fair values and carrying amounts of the Company's financial instruments that are required to be recorded or disclosed at fair value on a recurring basis:
September 30, 2024December 31, 2023
CategoryCarrying
amount		Fair valueCarrying
amount		Fair value
Loans receivableLevel 2$53.3 $53.5 $37.7 $37.6 
Derivative financial assetsLevel 20.1 0.1 0.4 0.4 
Derivative financial liabilitiesLevel 20.1 0.1 — — 
Contingent consideration liabilityLevel 34.7 4.7 5.2 5.2 
Long-term debt
Secured NotesLevel 1544.4 568.6 543.2 565.1 
Unsecured NotesLevel 1790.5 852.0 789.5 848.0 
Term loans Level 21,394.4 1,403.0 1,743.1 1,758.1 
The fair value of loans receivable with a maturity date greater than one year are determined by estimating discounted cash flows using market rates. The fair value of the derivative financial assets, which consist of forward currency contracts, are determined using observable inputs, including foreign currency spot exchange rates and forward pricing curves, and considers the credit risk of the Company and its counterparties. The fair value of the contingent consideration liability, which relates to IAA's acquisition of Marisat, Inc. in 2021, is determined using certain unobservable inputs, including the likelihood of the achievement of volume targets. The fair values of the Secured Notes and Unsecured Notes are determined by reference to a quoted market price traded in an over-the-counter
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10. Fair Value Measurement (Continued)
broker market. The carrying values of the term loans, before deduction of deferred debt issuance costs, approximate their fair values as the interest rates on the loans are short-term in nature.
11. Derivative Financial Instruments
The Company enters into forward currency contracts from time to time to manage its exposure to foreign currency exchange rate fluctuations recognized by its subsidiaries on certain loans receivable and significant intercompany balances. The unrealized gain (loss) on forward currency contracts recognized within foreign exchange gain (loss) is as follows:
Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
Unrealized gain (loss) on forward currency contracts$— $(0.4)$(0.3)$(0.5)
The total gross notional amount of forward currency contracts outstanding as of September 30, 2024 is $47.0 million (December 31, 2023: $33.9 million).
12. Trade and Other Receivables
September 30,
2024		December 31,
2023
Advanced charges receivable$325.3 $374.7 
Trade accounts receivable361.5 315.8 
Consumption taxes receivable18.0 21.1 
Loans receivable