Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2023

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, 2023 and 2022 by segment and geographic region (in thousands):

	Three Months Ended March 31, 2023
	North America		Europe		Asia-Pacific		South America		Total
Warehouse rent and storage	$	219,081	$	20,545	$	17,665	$	1,702	$	258,993
Warehouse services(1)	261,632		26,356		34,372		1,285		323,645
Transportation	35,381		23,406		8,672		619		68,078
Third-party managed	7,563		—		5,796		—		13,359
Total revenues (2)	523,657		70,307		66,505		3,606		664,075
Lease revenue (3)	11,050		1,364		—		—		12,414
Total revenues from contracts with all customers	$	534,707	$	71,671	$	66,505	$	3,606	$	676,489

	Three Months Ended March 31, 2022
	North America		Europe		Asia-Pacific		South America		Total
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
Transportation	37,493		34,106		6,860		451		78,910
Third-party managed	80,820		—		5,040		—		85,860
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

(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers. Such revenues totaled less than $0.1 million and $3.2 million for the three months ended March 31, 2023 and March 31, 2022, 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 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 the 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, 2023, the Company had $649.7 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 24% of these remaining performance obligations as revenue in 2023, and the remaining 76% to be recognized over a weighted average period of 11.3 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 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 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, 2023, were not materially impacted by any other factors.

Receivable balances related to contracts with customers accounted for under ASC 606 were $402.1 million and $421.1 million as of March 31, 2023 and December 31, 2022, respectively. All other trade receivable balances relate to contracts accounted for under ASC 842.

Balances in unearned revenue related to contracts with customers were $32.9 million and $32.0 million as of March 31, 2023 and December 31, 2022, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2022 has been recognized as of March 31, 2023, and represents revenue from the satisfaction of monthly storage and handling services with average inventory turns of approximately 30 days.