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Segment Information
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information 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, acquisition, litigation and other expense, impairment of long-lived assets, gain or loss on sale of real estate and all components of non-operating other income and expense. 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 for the three and nine months ended September 30, 2019 and 2018 (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018
Segment revenues:







Warehouse
$
365,593


$
297,225


$
993,439


$
871,454

Third-party managed
62,846


62,551


188,497


192,182

Transportation
35,685


40,193


109,273


117,427

Other
2,058


2,041


6,512


6,755

Total revenues
466,182


402,010


1,297,721


1,187,818









Segment contribution:







Warehouse
113,408


93,638


318,044


274,043

Third-party managed
2,583


3,554


8,646


11,189

Transportation
4,640


4,148


13,202


11,328

Other
75


145


611


411

Total segment contribution
120,706


101,485


340,503


296,971









Reconciling items:







Depreciation, depletion and amortization
(45,065
)

(29,403
)

(115,598
)

(87,861
)
Selling, general and administrative expense
(32,476
)

(27,323
)

(96,262
)

(83,179
)
(Loss) gain from sale of real estate
—


(12
)

(34
)

8,372

Acquisition, litigation and other
(3,780
)

(1,194
)

(30,237
)

(4,768
)
Impairment of long-lived assets
—


—


(13,485
)

(747
)
Loss from investments in partially owned entities
(165
)

(437
)

(111
)

(324
)
Gain from sale of partially owned entities
4,297


—


4,297


—

Interest expense
(24,907
)

(22,834
)

(70,581
)

(70,258
)
Bridge loan commitment fees
—


—


(2,665
)

—

Interest income
1,798


877


5,206


2,610

Loss on debt extinguishment and modification
—


—


—


(21,385
)
Foreign currency exchange (loss) gain
(43
)

734


(66
)

2,926

Other (expense) income, net
(249
)

96


(1,007
)

184

Income before income tax benefit
$
20,116


$
21,989


$
19,960


$
42,541






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.

 
September 30, 2019
 
December 31, 2018
 
(In thousands)
Assets:
 
 
 
Warehouse
$
3,547,878

 
$
2,054,968

Managed
46,110

 
43,725

Transportation
62,354

 
35,479

Other
13,697

 
13,554

Total segments assets
3,670,039

 
2,147,726

 
 
 
 
Reconciling items:
 
 
 
Corporate assets
472,152

 
370,161

Investments in partially owned entities
—

 
14,541

Total reconciling items
472,152

 
384,702

Total assets
$
4,142,191

 
$
2,532,428