Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

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, 2020 and 2019 by segment and geographic region:

	Three Months Ended September 30, 2020
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	140,773	$	9,978	$	3,821	$	1,465	$	3,306	$	159,343
Warehouse services	177,524		36,898		3,516		663		3,068		221,669
Third-party managed	66,588		4,882		—		—		3,868		75,338
Transportation	28,582		4,902		150		462		—		34,096
Other	—		—		—		—		—		—
Total revenues (1)	413,467		56,660		7,487		2,590		10,242		490,446
Lease revenue (2)	6,179		—		—		—		833		7,012
Total revenues from contracts with all customers	$	419,646	$	56,660	$	7,487	$	2,590	$	11,075	$	497,458

	Three Months Ended September 30, 2019
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	134,903	$	9,386	$	3,972	$	1,308	$	—	$	149,569
Warehouse services	175,008		30,521		3,328		738		—		209,595
Third-party managed	53,800		4,383		—		—		4,663		62,846
Transportation	26,633		8,533		102		417		—		35,685
Other	2,058		—		—		—		—		2,058
Total revenues (1)	392,402		52,823		7,402		2,463		4,663		459,753
Lease revenue (2)	6,429		—		—		—		—		6,429
Total revenues from contracts with all customers	$	398,831	$	52,823	$	7,402	$	2,463	$	4,663	$	466,182

	Nine Months Ended September 30, 2020
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	420,002	$	28,321	$	11,117	$	3,931	$	9,037	$	472,408
Warehouse services	527,126		100,918		10,191		1,966		8,974		649,175
Third-party managed	187,042		13,275		—		—		12,896		213,213
Transportation	84,130		19,036		292		1,416		—		104,874
Other	4,448		—		—		—		—		4,448
Total revenues (1)	1,222,748		161,550		21,600		7,313		30,907		1,444,118
Lease revenue (2)	17,591		—		—		—		2,340		19,931
Total revenues from contracts with all customers	$	1,240,339	$	161,550	$	21,600	$	7,313	$	33,247	$	1,464,049

	Nine Months Ended September 30, 2019
	United States		Australia		New Zealand		Argentina		Canada		Total
	(In thousands)
Warehouse rent and storage	$	363,547	$	28,071	$	12,020	$	3,600	$	—	$	407,238
Warehouse services	466,418		90,016		10,230		2,372		—		569,036
Third-party managed	164,332		10,590		—		—		13,556		188,478
Transportation	75,441		32,131		315		1,386		—		109,273
Other	6,496		—		—		—		—		6,496
Total revenues (1)	1,076,234		160,808		22,565		7,358		13,556		1,280,521
Lease revenue (2)	17,200		—		—		—		—		17,200
Total revenues from contracts with all customers	$	1,093,434	$	160,808	$	22,565	$	7,358	$	13,556	$	1,297,721

(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 Topic 842, 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.

As of September 30, 2020, the Company had $600.7 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 8% of these remaining performance obligations as revenue in 2020, and the remaining 92% to be recognized over a weighted average period of 16.4 years through 2038.

Contract Balances

The timing of revenue recognition, billings and cash collections results in accounts receivable (contract assets), and unearned revenue (contract liabilities) on the accompanying Condensed Consolidated Balance Sheets. Generally, billing occurs monthly, subsequent to revenue recognition, resulting in contract assets. However, the Company may bill and receive advances on storage and handling services, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the accompanying Condensed 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, 2020, were not materially impacted by any other factors.

Opening and closing receivables balances related to contracts with customers accounted for under ASC 606 were $215.1 million and $213.2 million as of September 30, 2020 and December 31, 2019, respectively, and $209.0 million and $192.1 million as of September 30, 2019 and December 31, 2018, respectively. All other trade receivable balances relate to contracts accounted for under ASC 842.

Opening and closing balances in unearned revenue related to contracts with customers were $17.2 million and $16.4 million as of September 30, 2020 and December 31, 2019, respectively, and $17.9 million and $18.6 million as of September 30, 2019 and December 31, 2018, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2020 and 2019 has been recognized as of September 30, 2020 and September 30, 2019, respectively, and represents revenue from the satisfaction of monthly storage and handling services with inventory that turns on average every 30 days.