Segment Information

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

•

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.

•

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.


•	Other. 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. Selling, general and administrative functions support 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 before income tax benefit (expense) for the years ended December 31, 2018, 2017 and 2016:



	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Segment revenues:
Warehouse	$	1,176,912		$	1,145,662		$	1,080,867
Third-Party Managed	259,034			242,189			252,411
Transportation	158,790			146,070			147,004
Other	8,899			9,666			9,717
Total revenues	1,603,635			1,543,587			1,489,999

Segment contribution:
Warehouse	374,534			348,328			314,045
Third-Party Managed	14,760			12,825			14,814
Transportation	15,735			12,950			14,418
Other	620			2			2,368
Total segment contribution	405,649			374,105			345,645

Reconciling items:
Depreciation, depletion, and amortization	(117,653		)	(116,741		)	(118,571		)
Impairment of long-lived assets	(747		)	(9,473		)	(9,820		)
Selling, general and administrative expense	(114,760		)	(110,945		)	(96,728		)
Loss from partially owned entities	(1,069		)	(1,363		)	(128		)
Gain from sale of real estate, net	7,471			43			11,598
Impairment of partially owned entities	—			(6,496		)	—
Interest expense	(93,312		)	(114,898		)	(119,552		)
Interest income	3,996			1,074			708
Loss on debt extinguishment, modifications and termination of derivative instruments	(47,559		)	(986		)	(1,437		)
Foreign currency exchange gain (loss), net	2,882			(3,591		)	464
Other expense, net	(532		)	(1,944		)	(1,368		)
Income before income tax benefit (expense)	$	44,366		$	8,785		$	10,811

The following table details our long-lived assets by reportable segments, with a reconciliation to total assets reported for each of the periods presented in the accompanying consolidated balance sheets.



	Years Ended December 31,
	2018		2017
	(In thousands)
Assets:
Warehouse	$	2,054,968	$	2,082,156
Managed	43,725		43,035
Transportation	35,479		32,402
Other	13,554		13,897
Total segments assets	2,147,726		2,171,490

Reconciling items:
Corporate assets	370,161		207,465
Investments in partially owned entities	14,541		15,942
Total reconciling items	384,702		223,407
Total assets	$	2,532,428	$	2,394,897