Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2022

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 months ended March 31, 2022 and 2021 by segment and geographic region:

	Three Months Ended March 31, 2022
	North America		Europe		Asia-Pacific		South America		Total
	(In thousands)
Warehouse rent and storage	$	181,939	$	17,355	$	16,721	$	2,950	$	218,965
Warehouse services(1)	238,169		32,197		39,202		1,600		311,168
Third-party managed	80,820		—		5,040		—		85,860
Transportation	37,493		34,106		6,860		451		78,910
Total revenues (2)	538,421		83,658		67,823		5,001		694,903
Lease revenue (3)	9,313		1,479		—		—		10,792
Total revenues from contracts with all customers	$	547,734	$	85,137	$	67,823	$	5,001	$	705,695

	Three Months Ended March 31, 2021
	North America		Europe		Asia-Pacific		South America		Total
	(In thousands)
Warehouse rent and storage	$	164,246	$	17,252	$	15,176	$	2,425	$	199,099
Warehouse services(1)	210,846		25,336		42,469		1,524		280,175
Third-party managed	67,697		—		5,375		—		73,072
Transportation	40,315		30,612		4,973		372		76,272
Total revenues (2)	483,104		73,200		67,993		4,321		628,618
Lease revenue (3)	6,177		—		—		—		6,177
Total revenues from contracts with all customers	$	489,281	$	73,200	$	67,993	$	4,321	$	634,795

(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled $3.2 million and $2.9 million for the three months ended March 31, 2022 and March 31, 2021, respectively.

(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 March 31, 2022, the Company had $703.7 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 24% of these remaining performance obligations as revenue in 2022, and the remaining 76% to be recognized over a weighted average period of 12.6 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 months ended March 31, 2022, were not materially impacted by any other factors.

Opening and closing receivables balances related to contracts with customers accounted for under ASC 606 were $414.8 million and $375.1 million as of March 31, 2022 and December 31, 2021, 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 $28.3 million and $26.1 million as of March 31, 2022 and December 31, 2021, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2022 has been recognized as of March 31, 2022, and represents revenue from the satisfaction of monthly storage and handling services with inventory that turns on average every 30 days.