Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregated Revenue

The following tables represent a disaggregation of revenue from contracts with customers for the three and six months ended June 30, 2020 and 2019 by segment and geographic region:

	Three Months Ended June 30, 2020
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	140,612	$	9,153	$	3,486	$	1,433	$	3,492	$	158,176
Warehouse services	170,848		31,316		3,250		672		2,662		208,748
Third-party managed	64,149		4,198		—		—		4,607		72,954
Transportation	28,065		6,264		63		469		—		34,861
Other	2,296		—		—		—		—		2,296
Total revenues (1)	405,970		50,931		6,799		2,574		10,761		477,035
Lease revenue (2)	5,487		—		—		—		—		5,487
Total revenues from contracts with all customers	$	411,457	$	50,931	$	6,799	$	2,574	$	10,761	$	482,522

	Three Months Ended June 30, 2019
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	121,811	$	9,236	$	4,068	$	1,156	$	—	$	136,271
Warehouse services	162,529		29,497		3,407		783		—		196,216
Third-party managed	53,518		3,348		—		—		4,649		61,515
Transportation	25,160		10,771		103		458		—		36,492
Other	2,207		—		—		—		—		2,207
Total revenues (1)	365,225		52,852		7,578		2,397		4,649		432,701
Lease revenue (2)	5,677		82		—		—		—		5,759
Total revenues from contracts with all customers	$	370,902	$	52,934	$	7,578	$	2,397	$	4,649	$	438,460

	Six Months Ended June 30, 2020
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	279,228	$	18,343	$	7,297	$	2,465	$	7,238	$	314,571
Warehouse services	349,602		64,019		6,675		1,302		5,907		427,505
Third-party managed	120,453		8,393		—		—		9,029		137,875
Transportation	55,549		14,134		142		953		—		70,778
Other	4,448		—		—		—		—		4,448
Total revenues (1)	809,280		104,889		14,114		4,720		22,174		955,177
Lease revenue (2)	11,414		—		—		—		—		11,414
Total revenues from contracts with all customers	$	820,694	$	104,889	$	14,114	$	4,720	$	22,174	$	966,591

	Six Months Ended June 30, 2019
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	228,635	$	18,604	$	8,049	$	2,292	$	—	$	257,580
Warehouse services	291,418		59,495		6,902		1,634		—		359,449
Third-party managed	110,532		6,208		—		—		8,893		125,633
Transportation	48,808		23,598		213		969		—		73,588
Other	4,433		—		—		—		—		4,433
Total revenues (1)	683,826		107,905		15,164		4,895		8,893		820,683
Lease revenue (2)	10,774		82		—		—		—		10,856
Total revenues from contracts with all customers	$	694,600	$	107,987	$	15,164	$	4,895	$	8,893	$	831,539

(1)Revenues are within the scope of ASC 606, Revenue From Contracts with Customers. Elements of contracts or arrangements that are in the scope of other standards (e.g., leases) are separated and accounted for under those standards.

(2)Revenues are within the scope of Topic 842, Leases.

Performance Obligations

Substantially all our revenue for warehouse storage and handling services, and management and incentive fees earned under third-party managed and other contracts is recognized over time as the customer benefits throughout the period until the contractual term expires. Typically, revenue is recognized over time using an output measure (e.g. passage of time) to measure progress. Revenue recognized at a point in time upon delivery when the customer typically obtains control, include most accessorial services, transportation services, reimbursed costs and quarry product shipments.

For arrangements containing non-cancellable contract terms, any variable consideration related to storage renewals or incremental handling charges above stated minimums are 100% constrained and not included in aggregate amount of the transaction price allocated to the unsatisfied performance obligations disclosed below, given the degree in difficulty in estimation. Payment terms are generally 0 - 30 days upon billing, which is typically monthly, either in advance or subsequent to the performance of services. The same payment terms typically apply for arrangements containing variable consideration.

The Company has no material warranties or obligations for allowances, refunds or other similar obligations.

As of June 30, 2020, the Company had $593.4 million of remaining unsatisfied performance obligations from contracts with customers subject to non-cancellable terms and have an original expected duration exceeding one year. These obligations also do not include variable consideration beyond the non-cancellable term, which due to the inability to quantify by estimate, is fully constrained. The Company expects to recognize approximately 14% of these remaining performance obligations as revenue in 2020, an the remaining 86% to be recognized over a weighted average period of 15.2 years through 2038.

Contract Balances

The timing of revenue recognition, billings and cash collections results in accounts receivable (contract assets), and unearned revenue (contract liabilities) on the accompanying Condensed Consolidated Balance Sheets. Generally, billing occurs monthly, subsequent to revenue recognition, resulting in contract assets. However, the Company may bill and receive advances on storage and handling services, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the accompanying Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Changes in the contract asset and liability balances during the three and six months ended June 30, 2020, were not materially impacted by any other factors.

Opening and closing receivables balances related to contracts with customers accounted for under ASC 606 were $198.4 million and $213.2 million as of June 30, 2020 and December 31, 2019, respectively, and $207.3 million and $192.1 million as of June 30, 2019 and December 31, 2018, respectively. All other trade receivable balances relate to contracts accounted for under ASC 842.

Opening and closing balances in unearned revenue related to contracts with customers were $15.3 million and $16.4 million as of June 30, 2020 and December 31, 2019, respectively, and $18.8 million and $18.6 million as of June 30, 2019 and December 31, 2018, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2020 and 2019 has been recognized as of June 30, 2020 and June 30, 2019, respectively, and represents revenue from the satisfaction of monthly storage and handling services with inventory that turns on average every 30 days.