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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2021
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 six months ended June 30, 2021 and 2020 by segment and geographic region:
Three Months Ended June 30, 2021
North AmericaEuropeAsia-PacificSouth AmericaTotal
(In thousands)
Warehouse rent and storage
$167,038 $19,622 $15,078 $2,902 $204,640 
Warehouse services(1)
220,622 27,926 41,260 1,649 291,457 
Third-party managed
67,006 — 5,167 — 72,173 
Transportation
39,037 33,838 5,497 428 78,800 
Total revenues (2)
493,703 81,386 67,002 4,979 647,070 
Lease revenue (3)
7,637 — — — 7,637 
Total revenues from contracts with all customers
$501,340 $81,386 $67,002 $4,979 $654,707 
Three Months Ended June 30, 2020
North AmericaEuropeAsia-PacificSouth AmericaTotal
(In thousands)
Warehouse rent and storage
$144,104 $— $12,639 $1,433 $158,176 
Warehouse services(1)
173,510 — 34,566 672 208,748 
Third-party managed
68,756 — 4,198 — 72,954 
Transportation
28,065 — 6,327 469 34,861 
Other
2,296 — — — 2,296 
Total revenues (2)
416,731 — 57,730 2,574 477,035 
Lease revenue (3)
5,487 — — — 5,487 
Total revenues from contracts with all customers
$422,218 $— $57,730 $2,574 $482,522 
(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled $3.5 million for the three months ended June 30, 2021. This revenue is generated by an entity acquired in December 2020, therefore there was no related revenue during the three months ended and June 30, 2020.
(2)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.
(3)Revenues are within the scope of Topic 842, Leases.
Six Months Ended June 30, 2021
North AmericaEuropeAsia-PacificSouth AmericaTotal
(In thousands)
Warehouse rent and storage
$331,285 $36,874 $30,254 $5,328 $403,741 
Warehouse services
431,466 53,262 83,730 3,174 571,632 
Third-party managed
134,702 — 10,543 — 145,245 
Transportation
79,352 64,450 10,470 800 155,072 
Total revenues (1)
976,805 154,586 134,997 9,302 1,275,690 
Lease revenue (2)
13,812 — — — 13,812 
Total revenues from contracts with all customers
$990,617 $154,586 $134,997 $9,302 $1,289,502 
Six Months Ended June 30, 2020
North AmericaEuropeAsia-PacificSouth AmericaTotal
(In thousands)
Warehouse rent and storage
$286,466 $— $25,640 $2,465 $314,571 
Warehouse services
355,509 — 70,694 1,302 427,505 
Third-party managed
129,482 — 8,393 — 137,875 
Transportation
55,549 — 14,276 953 70,778 
Other
4,448 — — — 4,448 
Total revenues (1)
831,454 — 119,003 4,720 955,177 
Lease revenue (2)
11,414 — — — 11,414 
Total revenues from contracts with all customers
$842,868 $— $119,003 $4,720 $966,591 
(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled $6.4 million for the six months ended June 30, 2021. This revenue is generated by an entity acquired in December 2020, therefore there was no related revenue during the six months ended June 30, 2020.
(2)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.
(3)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 June 30, 2021, the Company had $642.6 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 16% of these remaining performance obligations as revenue in 2021, and the remaining 84% to be recognized over a weighted average period of 14.0 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 six months ended June 30, 2021, were not materially impacted by any other factors.
Opening and closing receivables balances related to contracts with customers accounted for under ASC 606 were $319.8 million and $321.5 million as of June 30, 2021 and December 31, 2020, respectively, and $198.4 million and $213.2 million as of June 30, 2020 and December 31, 2019, 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 $20.3 million and $19.2 million as of June 30, 2021 and December 31, 2020, respectively, and $15.3 million and $16.4 million as of June 30, 2020 and December 31, 2019, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2020 and 2019 has been recognized as of June 30, 2021 and June 30, 2020, respectively, and represents revenue from the satisfaction of monthly storage and handling services with inventory that turns on average every 30 days.