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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2023 and 2022 by segment and geographic region (in thousands):
Three Months Ended June 30, 2023
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$222,990 $21,164 $17,489 $1,874 $263,517 
Warehouse services(1)
246,268 24,338 34,078 1,303 305,987 
Transportation
28,680 20,477 8,260 655 58,072 
Third-party managed
4,778 — 5,590 — 10,368 
Total revenues (2)
502,716 65,979 65,417 3,832 637,944 
Lease revenue (3)
10,265 1,401 — — 11,666 
Total revenues from contracts with all customers
$512,981 $67,380 $65,417 $3,832 $649,610 
Three Months Ended June 30, 2022
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$192,127 $19,070 $17,844 $2,522 $231,563 
Warehouse services(1)
255,829 30,425 34,139 1,635 322,028 
Transportation
39,741 34,038 7,562 550 81,891 
Third-party managed
78,250 — 5,236 — 83,486 
Total revenues (2)
565,947 83,533 64,781 4,707 718,968 
Lease revenue (3)
9,395 1,393 — — 10,788 
Total revenues from contracts with all customers
$575,342 $84,926 $64,781 $4,707 $729,756 
(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 $4.2 million for the three months ended June 30, 2023 and June 30, 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.
Six Months Ended June 30, 2023
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$442,072 $41,709 $35,154 $3,576 $522,511 
Warehouse services(1)
507,899 50,694 68,450 2,588 629,631 
Transportation
64,061 43,883 16,932 1,274 126,150 
Third-party managed
12,341 — 11,386 — 23,727 
Total revenues (2)
1,026,373 136,286 131,922 7,438 1,302,019 
Lease revenue (3)
21,315 2,765 — — 24,080 
Total revenues from contracts with all customers
$1,047,688 $139,051 $131,922 $7,438 $1,326,099 
Six Months Ended June 30, 2022
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$374,066 $36,425 $34,565 $5,472 $450,528 
Warehouse services(1)
493,998 62,622 73,341 3,235 633,196 
Transportation
77,234 68,144 14,422 1,001 160,801 
Third-party managed
159,070 — 10,276 — 169,346 
Total revenues (2)
1,104,368 167,191 132,604 9,708 1,413,871 
Lease revenue (3)
18,708 2,872 — — 21,580 
Total revenues from contracts with all customers
$1,123,076 $170,063 $132,604 $9,708 $1,435,451 
(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 $7.4 million for the six months ended June 30, 2023 and June 30, 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 June 30, 2023, the Company had $652.0 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 17% of these remaining performance obligations as revenue in 2023, and the remaining 83% to be recognized over a weighted average period of 12.3 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 and six months ended June 30, 2023, were not materially impacted by any other factors.
Receivable balances related to contracts with customers accounted for under ASC 606 were $446.0 million and $421.1 million as of June 30, 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 $31.2 million and $32.0 million as of June 30, 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 June 30, 2023, and represents revenue from the satisfaction of monthly storage and handling services with average inventory turns of approximately 30 days.