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Revenue from Contracts with Customers
 9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022 by segment and geographic region (in thousands):
Three Months Ended September 30, 2023
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$222,269 $20,692 $20,994 $2,062 $266,017 
Warehouse services(1)
266,387 25,460 31,072 1,178 324,097 
Transportation
30,249 16,078 8,671 644 55,642 
Third-party managed
4,029 — 5,663 — 9,692 
Total revenues (2)
522,934 62,230 66,400 3,884 655,448 
Lease revenue (3)
11,091 1,400 — — 12,491 
Total revenues from contracts with all customers
$534,025 $63,630 $66,400 $3,884 $667,939 
Three Months Ended September 30, 2022
North AmericaEuropeAsia-PacificSouth AmericaTotal
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 
Transportation
39,456 28,023 8,376 512 76,367 
Third-party managed
77,083 — 5,353 — 82,436 
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 
(1)Warehouse services revenue includes sales of product that Americold purchases on the spot market, repackages, and sells to customers that was exited during the three months ended September 30, 2023. Such revenues totaled $3.7 million for the three months ended September 30, 2022. There were no such revenues for the three months ended September 30, 2023.
(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, 2023
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$664,341 $62,401 $56,148 $5,638 $788,528 
Warehouse services(1)
774,286 76,154 99,522 3,766 953,728 
Transportation
94,310 59,961 25,603 1,918 181,792 
Third-party managed
16,370 — 17,049 — 33,419 
Total revenues (2)
1,549,307 198,516 198,322 11,322 1,957,467 
Lease revenue (3)
32,406 4,165 — — 36,571 
Total revenues from contracts with all customers
$1,581,713 $202,681 $198,322 $11,322 $1,994,038 
Nine Months Ended September 30, 2022
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$585,774 $56,662 $49,783 $7,456 $699,675 
Warehouse services(1)
768,264 90,924 108,266 4,471 971,925 
Transportation
116,690 96,167 22,798 1,513 237,168 
Third-party managed
236,153 — 15,629 — 251,782 
Total revenues (2)
1,706,881 243,753 196,476 13,440 2,160,550 
Lease revenue (3)
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 
(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 $11.1 million for the nine months ended September 30, 2023 and September 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 September 30, 2023, the Company had $1.3 billion 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 5% of these remaining performance obligations as revenue in 2023, and the remaining 95% to be recognized over a weighted average period of 14.0 years through 2042.
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 nine months ended September 30, 2023, were not materially impacted by any other factors.
Receivable balances related to contracts with customers accounted for under ASC 606 were $416.9 million and $421.1 million as of September 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 $29.9 million and $32.0 million as of September 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 September 30, 2023, and represents revenue from the satisfaction of monthly storage and handling services with average customer inventory turns of approximately 30 days.