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, 2018 and 2017 by segment and geographic region:



	Three Months Ended June 30, 2018
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	104,977	$	9,605	$	3,955	$	1,435	$	—	$	119,972
Warehouse services	128,057		29,329		4,099		895		—		162,380
Third-party managed	57,606		3,373		—		—		4,726		65,705
Transportation	23,934		14,061		169		725		—		38,889
Quarry	2,305		—		—		—		—		2,305
Total revenues ⁽¹⁾	316,879		56,368		8,223		3,055		4,726		389,251
Lease revenue ⁽²⁾	5,416		—		—		—		—		5,416
Total revenues from contracts with all customers	$	322,295	$	56,368	$	8,223	$	3,055	$	4,726	$	394,667



	Three Months Ended June 30, 2017
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	100,858	$	9,590	$	4,583	$	2,212	$	—	$	117,243
Warehouse services	126,894		27,777		3,530		1,039		—		159,240
Third-party managed	52,724		2,279		—		—		4,584		59,587
Transportation	20,832		13,280		173		1,510		—		35,795
Quarry	2,349		—		—		—		—		2,349
Total revenues (1)	303,657		52,926		8,286		4,761		4,584		374,214
Lease revenue (2)	5,237		—		—		—		—		5,237
Total revenues from contracts with all customers	$	308,894	$	52,926	$	8,286	$	4,761	$	4,584	$	379,451


(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.



	Six Months Ended June 30, 2018
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	209,337	$	19,945	$	7,827	$	2,989	$	—	$	240,098
Warehouse services	253,305		59,766		8,216		1,882		—		323,169
Third-party managed	113,622		6,622		—		—		9,288		129,532
Transportation	46,998		28,260		373		1,603		—		77,234
Quarry	4,703		—		—		—		—		4,703
Total revenues ⁽¹⁾	627,965		114,593		16,416		6,474		9,288		774,736
Lease revenue ⁽²⁾	11,073		—		—		—		—		11,073
Total revenues from contracts with all customers	$	639,038	$	114,593	$	16,416	$	6,474	$	9,288	$	785,809



	Six Months Ended June 30, 2017
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	199,563	$	18,974	$	9,008	$	4,570	$	—	$	232,115
Warehouse services	250,443		55,904		7,027		2,006		—		315,380
Third-party managed	105,210		3,783		—		—		8,912		117,905
Transportation	42,105		26,549		372		2,951		—		71,977
Quarry	4,902		—		—		—		—		4,902
Total revenues ⁽¹⁾	602,223		105,210		16,407		9,527		8,912		742,279
Lease revenue ⁽²⁾	10,087		—		—		—		—		10,087
Total revenues from contracts with all customers	$	612,310	$	105,210	$	16,407	$	9,527	$	8,912	$	752,366


(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 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 June 30, 2018, the Company had $441.8 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 12% of these remaining performance obligations as revenue in 2018, an additional 21% by 2019 with the remaining 67% to be recognized over a weighted average period of 7.9 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 and six months ended June 30, 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 $180.8 million and $198.7 million at June 30, 2018 and December 31, 2017, respectively, and $176.8 million and $198.4 million at June 30, 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 $20.1 million and $18.8 million at June 30, 2018 and December 31, 2017, respectively, and $17.0 million and $17.9 million at June 30, 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 June 30, 2018 and June 30, 2017, respectively, and represents revenue from the satisfaction of monthly storage and handling services with inventory that turns on average every 30 days.