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Segment Information
 6 Months Ended
Jun. 30, 2021
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 (10) government-approved temperature-controlled storage and inspection services, (11) fumigation, (12) pre-cooling and cold treatment services, and (13) ripening. 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 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 six months ended June 30, 2021 and 2020 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Segment revenues:
Warehouse$503,734 $372,411 $989,185 $753,479 
Third-party managed72,173 72,954 145,245 137,875 
Transportation78,800 34,861 155,072 70,778 
Other— 2,296 — 4,459 
Total revenues654,707 482,522 1,289,502 966,591 
Segment contribution:
Warehouse144,379 120,132 290,560 246,905 
Third-party managed1,693 3,299 6,075 7,068 
Transportation9,250 4,772 15,953 9,577 
Other(33)135 (59)190 
Total segment contribution155,289 128,338 312,529 263,740 
Reconciling items:
Depreciation and amortization(84,459)(52,399)(161,670)(104,003)
Selling, general and administrative(42,475)(32,340)(87,527)(69,233)
Acquisition, litigation and other(3,922)(2,801)(24,673)(4,489)
Impairment of long-lived assets(1,528)(3,667)(1,528)(3,667)
Gain from sale of real estate— 19,414 — 21,875 
Interest expense(26,579)(23,178)(52,535)(47,048)
Interest income191 261 415 848 
Loss on debt extinguishment, modifications and termination of derivative instruments(925)— (4,424)(781)
Foreign currency exchange (loss) gain, net(140)315 33 (177)
Other expense, net184 44 689 915 
Loss from investments in partially owned entities(61)(129)(761)(156)
(Loss) income before income tax benefit (expense)$(4,425)$33,858 $(19,452)$57,824 
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 Condensed Consolidated Balance Sheets.
June 30, 2021December 31, 2020
(In thousands)
Assets:
Warehouse$5,078,094 $4,815,587 
Managed47,064 52,818 
Transportation157,096 151,872 
Other— 35 
Total segments assets5,282,254 5,020,312 
Reconciling items:
Corporate assets357,353 621,836 
Unallocated acquisitions(1)
2,140,971 2,144,096 
Investments in partially owned entities42,742 44,907 
Total reconciling items2,541,066 2,810,839 
Total assets$7,823,320 $7,831,151 
(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 June 30, 2021 or December 31, 2020. The assets will be assigned to the Warehouse and Transportation segments during the measurement period.