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Revenue | 6 Months Ended
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Jun. 30, 2021
Revenue from Contract with Customer [Abstract] |
Revenue | Revenue Revenue Disaggregation Geographic Areas The Company had total revenue in the following geographic areas for the three and six months ended June 30, 2020 as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
US | $ | 399,280 |  |  | $ | 237,613 |  |  | $ | 770,549 |  |  | $ | 472,941 |
Canada | 29,543 |  |  | 16,279 |  |  | 53,127 |  |  | 32,985 |
Mexico | 3,848 |  |  | 2,970 |  |  | 7,311 |  |  | 6,757 |
UK | 28,431 |  |  | — |  |  | 55,438 |  |  | — |
Total revenues | $ | 461,102 |  |  | $ | 256,862 |  |  | $ | 886,425 |  |  | $ | 512,683 |
Major Product and Service Lines Equipment leasing is the Company's core business. This includes rental modular space, portable space and tank and pump units along with value added products and services ("VAPS"), which include furniture, steps, ramps, basic appliances, internet connectivity devices, and other items used by customers in connection with the Company's products. Leasing is complemented by new unit sales and sales of rental units. In connection with its leasing and sales activities, the Company provides services including delivery and installation, maintenance and ad hoc services and removal services at the end of lease transactions. The Company’s revenue by major product and service line for the three and six months ended June 30, 2021 was as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Modular space leasing revenue | $ | 181,376 |  |  | $ | 132,377 |  |  | $ | 351,328 |  |  | $ | 263,775 |
Portable storage leasing revenue | 58,848 |  |  | 5,716 |  |  | 113,461 |  |  | 11,565 |
Tank and pump leasing revenue | 17,109 |  |  | — |  |  | 32,869 |  |  | — |
VAPS and third party leasing revenues(a) | 70,880 |  |  | 42,421 |  |  | 133,306 |  |  | 83,423 |
Other leasing-related revenue(b) | 14,966 |  |  | 9,629 |  |  | 27,877 |  |  | 19,732 |
Leasing revenue | 343,179 |  |  | 190,143 |  |  | 658,841 |  |  | 378,495 |
Delivery and installation revenue | 91,680 |  |  | 51,640 |  |  | 175,184 |  |  | 102,710 |
Total leasing and services revenue | 434,859 |  |  | 241,783 |  |  | 834,025 |  |  | 481,205 |
New unit sales revenue | 11,008 |  |  | 9,763 |  |  | 21,963 |  |  | 19,376 |
Rental unit sales revenue | 15,235 |  |  | 5,316 |  |  | 30,437 |  |  | 12,102 |
Total revenues | $ | 461,102 |  |  | $ | 256,862 |  |  | $ | 886,425 |  |  | $ | 512,683 |
(a) | Includes $7.8 million and $4.3 million of service revenue for the three months ended June 30, 2021 and 2020, respectively, and $14.0 million and $8.3 million of service revenue for the six months ended June 30, 2021 and 2020 , respectively.
(b) | Includes primarily damage billings, delinquent payment charges, and other processing fees.
Leasing and Services Revenue The majority of r evenue (73% for the three and six months ended June 30 2021 and 72% for the three and six months ended June 30, 2020) is generated by rental income subject to the guidance of ASU 2018-11, Leases (Topic 842) ("ASC 842"). The remaining revenue for the three and six months ended June 30, 2021 and 2020 is generated by performance obligations in contracts with customers for services or sale of units subject to the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). Receivables, Contract Assets and Liabilities As reflected above, approximately 73% of the Company's rental revenue is generated by lease revenue subject to the guidance in ASC 842. The customers that are respo nsible for the remaining revenue accounted for under ASC 606 are generally the same customers that rent the Company's equipment. The Company manages credit risk associated with its accounts receivables at the customer level. As the same customers generate the revenues that are accounted for under both ASC 606 and ASC 842, the discussions below on credit risk and the Company's allowance for credit losses address its total revenues. The Company's top five customers with the largest open receivables balances represente d 4.4% of the total receivables balance as of June 30, 2021. As of June 30, 2021 and December 31, 2020, the Company had approximately $74.7 million and $74.1 million, respectively, of deferred revenue that relates to removal services for lease transactions and advance billings for sale transactions, which are within the scope of ASC 606 and are included in deferred revenue and customer deposits in the condensed consolidated balance sheets. During the three months ended June 30, 2021, $18.1 million of previously deferred revenue relating to removal services for lease transactions and advance billings for sale transactions was recognized as revenue. The Company does not have material contract assets and it did not recognize any material impairments of contract assets. The Company's uncompleted contracts with customers have unsatisfied (or partially satisfied) performance obligations. For the future services revenues that are expected to be recognized within twelve months, the Company has elected to utilize the optional disclosure exemption made available regarding transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations. The transaction price for performance obligations that will be completed in greater than twelve months is variable based on the costs ultimately incurred to provide those services. The primary costs to obtain contracts for new and rental unit sales with the Company's customers are commissions paid to its sales force. The Company pays its sales force commissions on the sale of new and rental units. For new and rental unit sales, the period benefited by each commission is less than one year, therefore the commissions are expensed as incurred. Credit Losses The Company is exposed to credit losses from trade receivables generated through its leasing and sales business. The Company assesses each customer’s ability to pay for the products it leases or sells by conducting a credit review. The credit review considers expected billing exposure and timing for payment and the customer’s established credit rating. The Company performs its credit review of new customers at inception of the customer relationship and for existing customers when the customer transacts new leases after a defined period of dormancy. The Company also considers contract terms and conditions, country risk and business strategy in the evaluation. The Company monitors ongoing credit exposure through an active review of customer balances against contract terms and due dates. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. The allowances for credit losses reflect the estimate of the amount of receivables that the Company will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectability. This estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, the Company may be required to increase or decrease its allowances. Activity in the allowance for credit losses was as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Balance at beginning of period | $ | 31,630 |  |  | $ | 16,471 |  |  | $ | 29,258 |  |  | $ | 15,828 |
Net charges to bad debt expense and revenue | 8,390 |  |  | 5,730 |  |  | 16,910 |  |  | 9,122 |
Write-offs | (4,058) |  |  | (2,829) |  |  | (9,872) |  |  | (5,573) |
Foreign currency translation and other | 823 |  |  | (189) |  |  | 489 |  |  | (194) |
Balance at end of period | $ | 36,785 |  |  | $ | 19,183 |  |  | $ | 36,785 |  |  | $ | 19,183 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
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