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Revenue from Contracts with Customers
 9 Months Ended
Sep. 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 nine months ended September 30, 2021 and 2020 by segment and geographic region:
Three Months Ended September 30, 2021
North AmericaEuropeAsia-PacificSouth AmericaTotal
(In thousands)
Warehouse rent and storage
$177,734 $19,644 $16,502 $3,174 $217,054 
Warehouse services(1)
241,581 29,291 44,302 1,639 316,813 
Third-party managed
82,490 — 5,292 — 87,782 
Transportation
38,512 34,548 5,512 407 78,979 
Total revenues (2)
540,317 83,483 71,608 5,220 700,628 
Lease revenue (3)
8,180 — — — 8,180 
Total revenues from contracts with all customers
$548,497 $83,483 $71,608 $5,220 $708,808 
Three Months Ended September 30, 2020
North AmericaEuropeAsia-PacificSouth AmericaTotal
(In thousands)
Warehouse rent and storage
$144,079 $— $13,799 $1,465 $159,343 
Warehouse services(1)
180,592 — 40,414 663 221,669 
Third-party managed
70,456 — 4,882 — 75,338 
Transportation
28,582 — 5,052 462 34,096 
Other
— — — — — 
Total revenues (2)
423,709 — 64,147 2,590 490,446 
Lease revenue (3)
7,012 — — — 7,012 
Total revenues from contracts with all customers
$430,721 $— $64,147 $2,590 $497,458 
(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled $4.1 million for the three months ended September 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 September 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.
Nine Months Ended September 30, 2021
North AmericaEuropeAsia-PacificSouth AmericaTotal
(In thousands)
Warehouse rent and storage
$509,019 $56,518 $46,756 $8,501 $620,794 
Warehouse services
673,048 82,552 128,032 4,813 888,445 
Third-party managed
217,192 — 15,835 — 233,027 
Transportation
117,865 98,998 15,982 1,206 234,051 
Total revenues (1)
1,517,124 238,068 206,605 14,520 1,976,317 
Lease revenue (2)
21,993 — — — 21,993 
Total revenues from contracts with all customers
$1,539,117 $238,068 $206,605 $14,520 $1,998,310 
Nine Months Ended September 30, 2020
North AmericaEuropeAsia-PacificSouth AmericaTotal
(In thousands)
Warehouse rent and storage
$429,039 $— $39,438 $3,931 $472,408 
Warehouse services
536,100 — 111,109 1,966 649,175 
Third-party managed
199,938 — 13,275 — 213,213 
Transportation
84,130 — 19,328 1,416 104,874 
Other
4,448 — — — 4,448 
Total revenues (1)
1,253,655 — 183,150 7,313 1,444,118 
Lease revenue (2)
19,931 — — — 19,931 
Total revenues from contracts with all customers
$1,273,586 $— $183,150 $7,313 $1,464,049 
(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled $10.4 million for the nine months ended September 30, 2021. This revenue is generated by an entity acquired in December 2020, therefore there was no related revenue during the nine months ended September 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 September 30, 2021, the Company had $761.8 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 2021, and the remaining 92% to be recognized over a weighted average period of 15.4 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, 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 $362.8 million and $321.5 million as of September 30, 2021 and December 31, 2020, 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 $22.1 million and $19.2 million as of September 30, 2021 and December 31, 2020, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2021 has been recognized as of September 30, 2021, and represents revenue from the satisfaction of monthly storage and handling services with inventory that turns on average every 30 days.