Segment Information

12 Months Ended

Dec. 31, 2019

Geographic Concentrations

The following table provides geographic information for the Company’s total revenues for the years ended December 31, 2019, 2018 and 2017, and total assets as of December 31, 2019 and 2018:



	Total Revenues						Total Assets
	2019		2018		2017		2019		2018
	(In thousands)
U.S.	$	1,509,401	$	1,313,811	$	1,253,879	$	3,812,761	$	2,242,078
Australia	216,741		227,374		219,738		274,288		226,666
New Zealand	30,047		32,363		33,289		67,046		51,419
Argentina	9,647		11,752		18,319		7,794		7,154
Canada	17,869		18,335		18,362		8,794		5,111
	$	1,783,705	$	1,603,635	$	1,543,587	$	4,170,683	$	2,532,428

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 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, 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 benefit (expense) for the years ended December 31, 2019, 2018 and 2017:



	Years Ended December 31,
	2019			2018			2017
	(In thousands)
Segment revenues:
Warehouse	$	1,377,217		$	1,176,912		$	1,145,662
Third-party managed	252,939			259,034			242,189
Transportation	144,844			158,790			146,070
Other	8,705			8,899			9,666
Total revenues	1,783,705			1,603,635			1,543,587

Segment contribution:
Warehouse	447,591			374,534			348,328
Third-party managed	11,761			14,760			12,825
Transportation	18,067			15,735			12,950
Other	838			620			2
Total segment contribution	478,257			405,649			374,105

Reconciling items:
Depreciation, depletion and amortization	(163,348		)	(117,653		)	(116,741		)
Selling, general and administrative expense	(129,310		)	(110,825		)	(99,616		)
Acquisition, litigation and other	(40,614		)	(3,935		)	(11,329		)
Impairment of long-lived assets	(13,485		)	(747		)	(9,473		)
(Loss) gain from sale of real estate, net	(34		)	7,471			43
Interest expense	(94,408		)	(93,312		)	(114,898		)
Interest income	6,286			3,996			1,074
Bridge loan commitment fees	(2,665		)	—			—
Loss on debt extinguishment, modifications and termination of derivative instruments	—			(47,559		)	(986		)
Foreign currency exchange gain (loss), net	10			2,882			(3,591		)
Other expense, net	(1,870		)	(532		)	(1,944		)
Loss from partially owned entities	(111		)	(1,069		)	(1,363		)
Gain from sale of partially owned entities	4,297			—			—
Impairment of partially owned entities	—			—			(6,496		)
Income before income tax benefit (expense)	$	43,005		$	44,366		$	8,785

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,
	2019		2018
	(In thousands)
Assets:
Warehouse	$	3,684,391	$	2,054,968
Third-party managed	47,867		43,725
Transportation	50,666		35,479
Other	13,467		13,554
Total segments assets	3,796,391		2,147,726

Reconciling items:
Corporate assets	374,292		370,161
Investments in partially owned entities	—		14,541
Total reconciling items	374,292		384,702
Total assets	$	4,170,683	$	2,532,428