Geographic Concentrations

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Geographic Concentrations

Geographic Concentrations

The following table provides geographic information for the Company’s total revenues for the years ended December 31, 2020, 2019 and 2018, and total assets as of December 31, 2020 and 2019:

	Total Revenues						Total Assets
	2020		2019		2018		2020		2019
	(In thousands)
North America	$	1,729,657	$	1,527,270	$	1,332,146	$	6,067,809	$	3,821,555
Europe	—		—		—		1,329,755		—
Asia-Pacific	248,494		246,788		259,737		375,082		341,334
South America	9,576		9,647		11,752		58,505		7,794
	$	1,987,727	$	1,783,705	$	1,603,635	$	7,831,151	$	4,170,683

The following table provides long-lived assets by geography for the years ended December 31, 2020 and 2019:

	Long-Lived Assets
	2020		2019
	(In thousands)
North America	$	4,133,145	$	2,815,567
Europe	785,813		—
Asia-Pacific	246,162		245,453
South America	50,975		4,301
	$	5,216,095	$	3,065,321

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 owned a limestone quarry in Carthage, Missouri. Revenues were generated from the sale of limestone mined at our quarry. Cost of operations for our quarry consisted primarily of labor, equipment, fuel and explosives. We do not view the operation of the quarry as an integral part of our business, and as a result this business segment was subsequently sold on July 1, 2020.

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 for the years ended December 31, 2020, 2019 and 2018:

	Years Ended December 31,
	2020		2019		2018
	(In thousands)
Segment revenues:
Warehouse	$	1,549,314	$	1,377,217	$	1,176,912
Third-party managed	291,751		252,939		259,034
Transportation	142,203		144,844		158,790
Other	4,459		8,705		8,899
Total revenues	1,987,727		1,783,705		1,603,635
Segment contribution:
Warehouse	520,333		447,591		374,534
Third-party managed	12,228		11,761		14,760
Transportation	18,807		18,067		15,735
Other	130		838		620
Total segment contribution	551,498		478,257		405,649
Reconciling items:
Depreciation and amortization	(215,891)		(163,348)		(117,653)
Selling, general and administrative	(144,738)		(129,310)		(110,825)
Acquisition, litigation and other	(36,306)		(40,614)		(3,935)
Impairment of long-lived assets	(8,236)		(13,485)		(747)
Gain (loss) from sale of real estate	22,124		(34)		7,471
Interest expense	(91,481)		(94,408)		(93,312)
Interest income	1,162		6,286		3,996
Bridge loan commitment fees	(2,438)		(2,665)		—
Loss on debt extinguishment, modifications and termination of derivative instruments	(9,975)		—		(47,559)
Foreign currency exchange (loss) gain, net	(45,278)		10		2,882
Other expense, net	(2,563)		(1,870)		(532)
Loss from partially owned entities	(250)		(111)		(1,069)
Gain from sale of partially owned entities	—		4,297		—
Income before income tax benefit	$	17,628	$	43,005	$	44,366

The following table details our 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,
	2020		2019
	(In thousands)
Assets:
Warehouse	$	4,815,587	$	3,684,391
Third-party managed	52,818		47,867
Transportation	151,872		50,666
Other	35		13,467
Total segments assets	5,020,312		3,796,391
Reconciling items:
Corporate assets	621,836		374,292
Unallocated acquisitions(1)	2,144,096		—
Investments in partially owned entities	44,907		—
Total reconciling items	2,810,839		374,292
Total assets	$	7,831,151	$	4,170,683

The following table details our additions to long-lived assets by segment.

	December 31, 2020
	Warehouse		Managed		Transportation		Unallocated acquisitions(1)		Total
	(In thousands)
Property, buildings and equipment	$	916,334	$	—	$	66,536	$	1,079,910	$	2,062,780
Financing leases	37,469		1,389		—		46,845		85,703
Operating lease right-of-use assets	39,656		—		5,280		191,229		236,165
Total	$	993,459	$	1,389	$	71,816	$	1,317,984	$	2,384,648

	December 31, 2019
	Warehouse		Managed		Quarry		Transportation		Total
	(In thousands)
Property, buildings and equipment	$	1,277,162	$	32	$	405	$	9,892	$	1,287,491
Financing leases	30,653		—		161		—		30,814
Operating lease right-of-use assets	12,467		12		13		—		12,492
Total	$	1,320,282	$	44	$	579	$	9,892	$	1,330,797

(1)The assets acquired in 2020 related to the Agro acquisition are reflected in the tables above within the row titled ‘Unallocated Acquisitions’ as the acquired assets have not yet been assigned to the respective segments as of December 31, 2020 given the short period of time between the acquisition date, December 30, 2020, and year-end. We expect the assets will be assigned to the Warehouse and Transportation segments during the measurement period.