Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2022 and 2021 by segment and geographic region:

	Three Months Ended September 30, 2022
	North America		Europe		Asia-Pacific		South America		Total
	(In thousands)
Warehouse rent and storage	$	211,708	$	20,237	$	15,218	$	1,984	$	249,147
Warehouse services(1)	274,266		28,302		34,925		1,236		338,729
Third-party managed	77,083		—		5,353		—		82,436
Transportation	39,456		28,023		8,376		512		76,367
Total revenues (2)	602,513		76,562		63,872		3,732		746,679
Lease revenue (3)	9,798		1,303		—		—		11,101
Total revenues from contracts with all customers	$	612,311	$	77,865	$	63,872	$	3,732	$	757,780

	Three Months Ended September 30, 2021
	North America		Europe		Asia-Pacific		South America		Total
	(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

(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled $3.7 million and $4.1 million for the three months ended September 30, 2022 and September 30, 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.

	Nine Months Ended September 30, 2022
	North America		Europe		Asia-Pacific		South America		Total
	(In thousands)
Warehouse rent and storage	$	585,774	$	56,662	$	49,783	$	7,456	$	699,675
Warehouse services	768,264		90,924		108,266		4,471		971,925
Third-party managed	236,153		—		15,629		—		251,782
Transportation	116,690		96,167		22,798		1,513		237,168
Total revenues (1)	1,706,881		243,753		196,476		13,440		2,160,550
Lease revenue (2)	28,506		4,175		—		—		32,681
Total revenues from contracts with all customers	$	1,735,387	$	247,928	$	196,476	$	13,440	$	2,193,231

	Nine Months Ended September 30, 2021
	North America		Europe		Asia-Pacific		South America		Total
	(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

(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled $11.1 million and $10.4 million for the nine months ended September 30, 2022 and September 30, 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 and reimbursed costs.

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, 2022, the Company had $676.8 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 2022, and the remaining 92% to be recognized over a weighted average period of 14.5 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, 2022, were not materially impacted by any other factors.

Accounts receivable balances related to contracts with customers accounted for under ASC 606 were $433.1 million and $375.1 million as of September 30, 2022 and December 31, 2021, respectively. All other trade receivable balances relate to contracts accounted for under ASC 842.

Unearned revenue related to contracts with customers were $34.2 million and $26.1 million as of September 30, 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 September 30, 2022, and represents revenue from the satisfaction of monthly storage and handling services with inventory that turns on average every 30 days.