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 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 condensed 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 exclude 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 loss before income tax for the three and six months ended June 30, 2019 and 2018 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Segment revenues:
Warehouse	$	338,231		$	287,712		$	627,846		$	574,229
Third-party managed	61,515			65,755			125,651			129,632
Transportation	36,492			38,889			73,588			77,234
Other	2,222			2,311			4,454			4,714
Total revenues	438,460			394,667			831,539			785,809

Segment contribution:
Warehouse	113,817			90,835			204,636			180,405
Third-party managed	2,804			3,859			6,063			7,637
Transportation	4,206			3,586			8,562			7,180
Other	292			(80		)	536			266
Total segment contribution	121,119			98,200			219,797			195,488

Reconciling items:
Depreciation, depletion, and amortization	(40,437		)	(29,051		)	(70,533		)	(58,459		)
Selling, general and administrative expense	(32,669		)	(27,750		)	(63,786		)	(55,857		)
(Loss) gain from sale of real estate	(34		)	8,384			(34		)	8,384
Acquisition, litigation, and other	(17,964		)	268			(26,457		)	(3,574		)
Impairment of long-lived assets	(930		)	(747		)	(13,485		)	(747		)
(Loss) income from investments in partially owned entities	(68		)	252			54			112
Interest expense	(24,098		)	(22,929		)	(45,674		)	(47,424		)
Bridge loan commitment fees	(2,665		)	—			(2,665		)	—
Interest income	2,405			1,109			3,408			1,733
Loss on debt extinguishment and modification	—			—			—			(21,385		)
Foreign currency exchange (loss) gain	(83		)	1,511			(23		)	2,191
Other (expense) income, net	(591		)	33			(758		)	89
Income (loss) before income tax benefit	$	3,985		$	29,280		$	(156	)	$	20,551

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 Condensed Consolidated Balance Sheets.



	June 30, 2019		December 31, 2018
	(In thousands)
Assets:
Warehouse	$	3,489,658	$	2,054,968
Managed	47,094		43,725
Transportation	72,505		35,479
Other	13,766		13,554
Total segments assets	3,623,023		2,147,726

Reconciling items:
Corporate assets	526,646		370,161
Investments in partially owned entities	12,788		14,541
Total reconciling items	539,434		384,702
Total assets	$	4,162,457	$	2,532,428