Revenue from Contracts with Customers

Disaggregated Revenue

The following tables represent a disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2018 and 2017 by segment and geographic region:



	Three Months Ended September 30, 2018
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	110,351	$	9,815	$	3,598	$	1,104	$	—	$	124,868
Warehouse services	132,723		29,390		4,173		895		—		167,181
Third-party managed	54,809		3,142		—		—		4,549		62,500
Transportation	26,107		13,290		170		627		—		40,194
Quarry	2,035		—		—		—		—		2,035
Total revenues ⁽¹⁾	326,025		55,637		7,941		2,626		4,549		396,778
Lease revenue ⁽²⁾	5,232		—		—		—		—		5,232
Total revenues from contracts with all customers	$	331,257	$	55,637	$	7,941	$	2,626	$	4,549	$	402,010



	Three Months Ended September 30, 2017
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	104,710	$	10,639	$	4,658	$	2,362	$	—	$	122,369
Warehouse services	128,287		29,834		3,667		985		—		162,773
Third-party managed	53,266		2,463		—		—		4,777		60,506
Transportation	20,592		13,697		202		1,197		—		35,688
Quarry	2,659		—		—		—		—		2,659
Total revenues ⁽¹⁾	309,514		56,633		8,527		4,544		4,777		383,995
Lease revenue ⁽²⁾	5,506		—		—		—		—		5,506
Total revenues from contracts with all customers	$	315,020	$	56,633	$	8,527	$	4,544	$	4,777	$	389,501


(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 ASC 840, Leases.



	Nine Months Ended September 30, 2018
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	319,690	$	29,759	$	11,425	$	4,092	$	—	$	364,966
Warehouse services	386,027		89,156		12,390		2,777		—		490,350
Third-party managed	168,431		9,764		—		—		13,837		192,032
Transportation	73,104		41,550		543		2,230		—		117,427
Quarry	6,738		—		—		—		—		6,738
Total revenues ⁽¹⁾	953,990		170,229		24,358		9,099		13,837		1,171,513
Lease revenue ⁽²⁾	16,305		—		—		—		—		16,305
Total revenues from contracts with all customers	$	970,295	$	170,229	$	24,358	$	9,099	$	13,837	$	1,187,818



	Nine Months Ended September 30, 2017
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	304,273	$	29,613	$	13,666	$	6,931	$	—	$	354,483
Warehouse services	378,730		85,739		10,695		2,991		—		478,155
Third-party managed	158,476		6,247		—		—		13,688		178,411
Transportation	62,696		40,246		574		4,149		—		107,665
Quarry	7,560		—		—		—		—		7,560
Total revenues ⁽¹⁾	911,735		161,845		24,935		14,071		13,688		1,126,274
Lease revenue ⁽²⁾	15,593		—		—		—		—		15,593
Total revenues from contracts with all customers	$	927,328	$	161,845	$	24,935	$	14,071	$	13,688	$	1,141,867


(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 ASC 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 September 30, 2018, the Company had $485.8 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 6% of these remaining performance obligations as revenue in 2018, an additional 22% by 2019 with the remaining 72% to be recognized over a weighted average period of 14.6 years through 2038.

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, warehouse rent, storage and services revenue billing occurs monthly, subsequent to revenue recognition, resulting in contract assets. The Company may bill and receive advances on 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 nine months ended September 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 $207.7 million and $198.3 million at September 30, 2018 and December 31, 2017, respectively, and $183.2 million and $198.4 million at September 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 $19.5 million and $18.8 million at September 30, 2018 and December 31, 2017, respectively, and $18.8 million and $17.9 million at September 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 September 30, 2018 and September 30, 2017, respectively, and represents revenue from the satisfaction of monthly storage and handling services with inventory that turns on average every 30 days.