Segment Information

9 Months Ended

Sep. 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. The details of these segments remain materially unchanged from those disclosed in the 2020 Form 10-K as filed with the SEC.

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, net, 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 nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Segment revenues:
Warehouse	$	542,047	$	388,024	$	1,531,232	$	1,141,503
Third-party managed	87,782		75,338		233,027		213,213
Transportation	78,979		34,096		234,051		104,874
Other	—		—		—		4,459
Total revenues	708,808		497,458		1,998,310		1,464,049
Segment contribution:
Warehouse	144,992		127,756		435,552		374,661
Third-party managed	4,551		3,393		10,626		10,461
Transportation	6,251		4,187		22,204		13,764
Other	(23)		(17)		(82)		173
Total segment contribution	155,771		135,319		468,300		399,059
Reconciling items:
Depreciation and amortization	(70,569)		(53,569)		(232,239)		(157,572)
Selling, general and administrative	(45,545)		(35,969)		(133,072)		(105,202)
Acquisition, litigation and other, net	(6,338)		(5,282)		(31,011)		(9,771)
Impairment of long-lived assets	(1,784)		(2,615)		(3,312)		(6,282)
Gain (loss) from sale of real estate	—		(427)		—		21,448
Interest expense	(25,303)		(23,066)		(77,838)		(70,114)
Loss on debt extinguishment, modifications and termination of derivative instruments	(627)		—		(5,051)		(781)
Other, net	(523)		(1,198)		(147)		232
Income (loss) before income tax benefit (expense)	$	5,082	$	13,193	$	(14,370)	$	71,017

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.

	September 30, 2021		December 31, 2020
	(In thousands)
Assets:
Warehouse	$	5,535,161	$	4,815,587
Managed	52,699		52,818
Transportation	155,886		151,872
Other	—		35
Total segments assets	5,743,746		5,020,312
Reconciling items:
Corporate assets	153,460		621,836
Unallocated acquisitions(1)	2,191,777		2,144,096
Investments in partially owned entities	38,571		44,907
Total reconciling items	2,383,808		2,810,839
Total assets	$	8,127,554	$	7,831,151

(1) The assets acquired in 2020 and 2021 related to the Agro and KMT acquisitions 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 September 30, 2021 or December 31, 2020. The assets will be assigned to the Warehouse and Transportation segments during the measurement period.