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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2024
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, 2024 and 2023 within the segments and geographic region (in thousands):
Three Months Ended June 30, 2024
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$213,562 $18,381 $18,301 $2,065 $252,309 
Warehouse services
272,698 25,213 33,366 1,439 332,716 
Transportation
24,831 15,608 9,531 667 50,637 
Third-party managed
4,148 — 5,783 — 9,931 
Total revenues (1)
515,239 59,202 66,981 4,171 645,593 
Lease revenue (2)
12,668 1,229 1,465 — 15,362 
Total revenues from contracts with all customers
$527,907 $60,431 $68,446 $4,171 $660,955 
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
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 (1)
502,716 65,979 65,417 3,832 637,944 
Lease revenue (2)
10,265 1,401 — — 11,666 
Total revenues from contracts with all customers
$512,981 $67,380 $65,417 $3,832 $649,610 
(1)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.
(2)Revenues are within the scope of ASC 842, Leases.
Six Months Ended June 30, 2024
North AmericaEuropeAsia-PacificSouth AmericaTotal
Warehouse rent and storage
$430,957 $36,245 $37,363 $3,577 $508,142 
Warehouse services
540,486 50,201 67,856 2,459 661,002 
Transportation
57,726 30,504 18,089 1,171 107,490 
Third-party managed
8,586 — 11,762 — 20,348 
Total revenues (1)
1,037,755 116,950 135,070 7,207 1,296,982 
Lease revenue (2)
24,745 2,743 1,465 — 28,953 
Total revenues from contracts with all customers
$1,062,500 $119,693 $136,535 $7,207 $1,325,935 
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
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 (1)
1,026,373 136,286 131,922 7,438 1,302,019 
Lease revenue (2)
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 
(1)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.
(2)Revenues are within the scope of ASC 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, 2024, the Company had $1.4 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 12.0% of these remaining performance obligations as revenue in 2024, and the remaining 88.0% to be recognized over a weighted average period of 15.7 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 six months ended June 30, 2024, were not materially impacted by any other factors.
Receivable balances related to contracts with customers accounted for under ASC 606 were $424.5 million and $420.2 million million as of June 30, 2024 and December 31, 2023, respectively. All other trade receivable balances relate to contracts accounted for under ASC 842.
Balances in unearned revenue related to contracts with customers were $27.3 million and $28.4 million as of June 30, 2024 and December 31, 2023, respectively. Substantially all revenue that was included in the contract liability balances at the beginning of 2023 has been recognized as of June 30, 2024, and represents revenue from the satisfaction of monthly storage and handling services with average customer inventory turns of approximately 30 days.