Revenue from Contracts with Customers

12 Months Ended

Dec. 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 years ended December 31, 2022, 2021 and 2020 by segment and geographic region:

	December 31, 2022
	North America		Europe		Asia-Pacific		South America		Total
	(In thousands)
Warehouse rent and storage	$	800,763	$	77,017	$	67,622	$	9,587	$	954,989
Warehouse services(1)	1,038,145		118,152		141,557		5,729		1,303,583
Transportation	154,669		125,055		31,551		2,083		313,358
Third-party managed	277,010		—		21,396		—		298,406
Total revenues (2)	2,270,587		320,224		262,126		17,399		2,870,336
Lease revenue (3)	38,909		5,490		—		—		44,399
Total revenue	$	2,309,496	$	325,714	$	262,126	$	17,399	$	2,914,735

	December 31, 2021
	North America		Europe		Asia-Pacific		South America		Total
	(In thousands)
Warehouse rent and storage	$	691,174	$	69,997	$	64,469	$	11,911	$	837,551
Warehouse services(1)	919,692		110,517		172,701		6,324		1,209,234
Transportation	152,826		135,065		22,561		1,640		312,092
Third-party managed	295,878		—		21,433		—		317,311
Total revenues (2)	2,059,570		315,579		281,164		19,875		2,676,188
Lease revenue (3)	32,476		6,126		—		—		38,602
Total revenue	$	2,092,046	$	321,705	$	281,164	$	19,875	$	2,714,790

	December 31, 2020
	North America		Europe		Asia-Pacific		South America		Total
	(In thousands)
Warehouse rent and storage	$	581,421	$	—	$	53,860	$	5,120	$	640,401
Warehouse services(1)	727,994		—		152,561		2,610		883,165
Transportation	116,570		—		23,787		1,846		142,203
Third-party managed	273,465		—		18,286		—		291,751
Other	4,448		—		—		—		4,448
Total revenues (2)	1,703,898		—		248,494		9,576		1,961,968
Lease revenue (3)	25,759		—		—		—		25,759
Total revenue	$	1,729,657	$	—	$	248,494	$	9,576	$	1,987,727

(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled $13.1 million and $13.5 million for the year ended December 31, 2022 and December 31, 2021, respectively. This revenue is generated by a facility acquired on December 30, 2020, therefore there was no related revenue during the year ended December 31, 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 equally throughout the period until the contractual term expires. Typically, revenue is recognized over time using an output measure (e.g. passage of time). Revenue is recognized at a point in time upon delivery when the customer typically obtains control, for 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.

At December 31, 2022, the Company had $666.2 million of remaining unsatisfied performance obligations from contracts with customers subject to a non-cancellable term and within contracts that 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 31% of these remaining performance obligations as revenue in 2023, and the remaining 69% to be recognized over a weighted average period of 10.9 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 Consolidated Balance Sheets. Generally, billing occurs monthly, subsequent to revenue recognition, resulting in contract assets. However, the Company may bill

and receive advances or deposits from customers, particularly on storage and handling services, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the accompanying 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 year ended December 31, 2022, were not materially impacted by any other factors.

Receivables balances related to contracts with customers accounted for under ASC 606 were $421.1 million and $375.1 million at December 31, 2022 and 2021, respectively. All other trade receivable balances relate to contracts accounted for under ASC 842.

Balances in unearned revenue related to contracts with customers were $32.0 million and $26.1 million at December 31, 2022 and 2021, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2020 and 2019 has been recognized as of December 31, 2022 and 2021, respectively, and represents revenue from the satisfaction of monthly storage and handling services with average inventory turns of approximately 30 days.