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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
Our principal operations are organized into four reportable segments: Warehouse, Third-party managed, Transportation and Other.
•Warehouse. Our primary source of revenues consists of rent and storage and warehouse services fees. Our rent and storage and warehouse services revenues are the key drivers of our financial performance. Rent and storage revenues consist of recurring, periodic charges related to the storage of frozen and perishable food and other products in our warehouses. We also provide these customers with a wide array of handling and other warehouse services, such as (1) receipt, handling and placement of products into our warehouses for storage and preservation, (2) retrieval of products from storage upon customer request, (3) blast freezing, which involves the rapid freezing of non-frozen products, including individual quick freezing for agricultural produce and seafood, (4) case-picking, which involves selecting product cases to build customized pallets, (5) kitting and repackaging, which involves assembling custom product packages for delivery to retailers and consumers, and labeling services, (6) order assembly and load consolidation, (7) exporting and importing support services, (8) container handling, (9) cross-docking, which involves transferring inbound products to outbound trucks utilizing our warehouse docks without storing them in our warehouses, and (10) government-approved temperature-controlled storage and inspection services. We may charge our customers in advance for storage and outbound handling fees. Cost of operations for our warehouse segment consists of power, other facilities costs, labor and other services costs.
•Third-party managed. We receive management and incentive fees, as well as reimbursement of substantially all expenses, for warehouses and logistics services that we manage on behalf of third-party owners/customers. Cost of operations for our third-party managed segment are reimbursed on a pass-through basis (typically within two weeks), with all reimbursements, plus an applicable mark-up, recognized as revenues under the relevant accounting guidance.
•Transportation. We charge transportation fees, including fuel surcharges, to our customers for whom we arrange the transportation of their products. Cost of operations for our transportation segment consist primarily of third-party carrier charges, which are impacted by factors affecting those carriers.
•Other. In addition to our primary business segments, we owned a limestone quarry in Carthage, Missouri. Revenues are generated from the sale of limestone mined at our quarry. Cost of operations for our quarry consist primarily of labor, equipment, fuel and explosives. We do not view the operation of the quarry as an integral part of our business, and as a result this business segment was subsequently sold on July 1, 2020. The assets and liabilities related to this business segment were held for sale as of June 30, 2020, and primarily were reflected within "”Land” and “Machinery and equipment” on the Condensed Consolidated Balance Sheets. Refer to Note 20 for further information.
Our reportable segments are strategic business units separated by service offerings. Each reportable segment is managed separately and requires different operational and marketing strategies. The accounting polices used in the preparation of our reportable segments financial information are the same as those used in the preparation of its condensed consolidated financial statements.
Our chief operating decision maker uses revenues and segment contribution to evaluate segment performance. We calculate segment contribution as earnings before interest expense, taxes, depreciation and amortization, and exclude selling, general and administrative expense, acquisition, litigation and other expense, impairment of long-lived assets, gain or loss on sale of real estate and all components of non-operating other income and expense.
Selling, general and administrative functions support all the business segments. Therefore, the related expense is not allocated to segments as the chief operating decision maker does not use it to evaluate segment performance.
Segment contribution is not a measurement of financial performance under GAAP, and may not be comparable to similarly titled measures of other companies. You should not consider our segment contribution as an alternative to operating income determined in accordance with GAAP.
The following table presents segment revenues and contributions with a reconciliation to income before income tax for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Segment revenues:
Warehouse$372,411  $338,231  $753,479  $627,846  
Third-party managed72,954  61,515  137,875  125,651  
Transportation34,861  36,492  70,778  73,588  
Other2,296  2,222  4,459  4,454  
Total revenues482,522  438,460  966,591  831,539  
Segment contribution:
Warehouse120,132  113,817  246,905  204,636  
Third-party managed3,299  2,804  7,068  6,063  
Transportation4,772  4,206  9,577  8,562  
Other135  292  190  536  
Total segment contribution128,338  121,119  263,740  219,797  
Reconciling items:
Depreciation, depletion and amortization(52,399) (40,437) (104,003) (70,533) 
Selling, general and administrative expense(32,340) (32,669) (69,233) (63,786) 
Acquisition, litigation and other(2,801) (17,964) (4,489) (26,457) 
Impairment of long-lived assets(3,667) (930) (3,667) (13,485) 
Gain (loss) from sale of real estate19,414  (34) 21,875  (34) 
Interest expense(23,178) (24,098) (47,048) (45,674) 
Interest income261  2,405  848  3,408  
Bridge loan commitment fees—  (2,665) —  (2,665) 
Loss on debt extinguishment and modifications—  —  (781) —  
Foreign currency exchange gain (loss)315  (83) (177) (23) 
Other income (expense), net44  (591) 915  (758) 
(Loss) income from investments in partially owned entities(129) (68) (156) 54  
Income (loss) before income tax (expense) benefit $33,858  $3,985  $57,824  $(156) 
The following table details our assets by reportable segments, with a reconciliation to total assets reported for each of the periods presented in the accompanying Condensed Consolidated Balance Sheets.
June 30, 2020December 31, 2019
(In thousands)
Assets:
Warehouse$3,992,807  $3,684,391  
Managed43,759  47,867  
Transportation43,165  50,666  
Other10,129  13,467  
Total segments assets4,089,860  3,796,391  
Reconciling items:
Corporate assets500,814  374,292  
Investments in partially owned entities22,102  —  
Total reconciling items522,916  374,292  
Total assets$4,612,776  $4,170,683