Revenue from Contracts with Customers

Disaggregated Revenue

The following table represents a disaggregation of revenue from contracts with customers for the three months ended March 31, 2018 and 2017 by segment and geographic region:



	Three Months Ended March 31, 2018
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	104,360	$	10,339	$	3,872	$	1,553	$	—	$	120,124
Warehouse services	125,248		30,438		4,117		987		—		160,790
Third-party managed	56,015		3,249		—		—		4,562		63,826
Transportation	23,064		14,199		204		878		—		38,345
Quarry	2,398		—		—		—		—		2,398
Total revenues ⁽¹⁾	311,085		58,225		8,193		3,418		4,562		385,483
Lease revenue ⁽²⁾	5,658		—		—		—		—		5,658
Total revenues from contracts with all customers	$	316,743	$	58,225	$	8,193	$	3,418	$	4,562	$	391,141



	Three Months Ended March 31, 2017
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	98,706	$	9,384	$	4,425	$	2,358	$	—	$	114,873
Warehouse services	123,549		28,128		3,497		967		—		156,141
Third-party managed	52,486		1,504		—		—		4,327		58,317
Transportation	21,272		13,269		199		1,441		—		36,181
Quarry	2,553		—		—		—		—		2,553
Total revenues ⁽¹⁾	298,566		52,285		8,121		4,766		4,327		368,065
Lease revenue ⁽²⁾	4,849		—		—		—		—		4,849
Total revenues from contracts with all customers	$	303,415	$	52,285	$	8,121	$	4,766	$	4,327	$	372,914


(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 840, 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 equally 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.

At March 31, 2018, the Company had $390.9 million of remaining unsatisfied performance obligations from contracts with customers subject to a non-cancellable term and within contracts that 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 17% of these remaining performance obligations as revenue in 2018, an additional 19% by 2019 with the remaining 64% to be recognized over a weighted average period of 7.5 years through 2029.

As part of the Company’s adoption of ASU 2014-09 in the first quarter of 2018, the Company elected to use the practical expedient under ASC 606-10-65-1(f)(3), pursuant to which the Company has excluded disclosures of transaction prices allocated to remaining performance obligations and when the Company expects to recognize such revenue for all periods prior to the date of initial application of ASU 2014-09.

Contract Balances

The timing of revenue recognition, billings and cash collections results in accounts receivable (contract assets), and unearned revenue (contract liabilities) on the consolidated balance sheets. Generally, billing occurs monthly, subsequent to revenue recognition, resulting in contract assets. However, the Company may bill and receive advances or deposits from customers, particularly on storage and handling services, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the 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 months ended March 31, 2018, were not materially impacted by any other factors.

Opening and closing receivables balances related to contracts with customers accounted for under ASC 606 were $177.0 million and $198.7 million at March 31, 2018 and December 31, 2017, respectively, and $183.3 million and $198.4 million at March 31, 2017 and December 31, 2016, respectively. All other trade receivable balances relate to contracts accounted for under ASC 840.

Opening and closing balances in unearned revenue related to contracts with customers were $18.2 million and $18.8 million at March 31, 2018 and December 31, 2017, respectively, and $17.1 million and $17.9 million at March 31, 2017 and December 31, 2016, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2018 and 2017 has been recognized as of March 31, 2018 and March 31, 2017, respectively, and represents revenue from the satisfaction of monthly storage and handling services with average inventory turns of approximately 30 days.