Segment Information

Our principal operations are organized into four reportable segments: Warehouse, Third-Party Managed, Transportation and Quarry.

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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.

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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.


•	Quarry. In addition to our primary business segments, we own 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.

Our reportable segments are strategic business units separated by product and 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 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 excluding corporate selling, general and administrative expense, impairment charges, restructuring charges, acquisition related costs, other income and expense, and certain one-time charges. Corporate selling, general and administrative function supports 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 (loss) before income tax and gain from sale of real estate, net of tax for the three and six months ended June 30, 2018 and 2017:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In thousands)
Segment revenues:
Warehouse	$	287,712		$	281,663		$	574,229		$	557,471
Third-Party Managed	65,755			59,638			129,632			118,005
Transportation	38,889			35,796			77,234			71,977
Quarry	2,311			2,354			4,714			4,913
Total revenues	394,667			379,451			785,809			752,366

Segment contribution:
Warehouse	90,835			84,804			180,405			168,325
Third-Party Managed	3,859			3,483			7,637			6,471
Transportation	3,586			3,089			7,180			6,642
Quarry	(80		)	(1,436		)	266			(532		)
Total segment contribution	98,200			89,940			195,488			180,906

Reconciling items:
Depreciation, depletion, and amortization	(29,051		)	(28,913		)	(58,459		)	(58,320		)
Selling, general and administrative expense	(27,482		)	(23,546		)	(59,431		)	(48,303		)
Impairment of long-lived assets	(747		)	(8,773		)	(747		)	(8,773		)
Income (loss) from investments in partially owned entities	252			(1,324		)	112			(1,351		)
Impairment of investments in partially owned entities	—			(6,496		)	—			(6,496		)
Interest expense	(22,929		)	(28,288		)	(47,424		)	(56,015		)
Interest income	1,109			310			1,733			567
Loss on debt extinguishment and modification	—			(430		)	(21,385		)	(600		)
Foreign currency exchange gain (loss)	1,511			(52		)	2,191			(2,825		)
Other income (expense), net	33			(728		)	89			(1,212		)
Income (loss) before income tax and gain from sale of real estate, net of tax	$	20,896		$	(8,300	)	$	12,167		$	(2,422	)