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Segment Information | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information Our principal operations are organized into four reportable segments: Warehouse, Third-party managed, Transportation and Other. •Warehouse. Our primary source of revenues consists of rent and storage and warehouse services fees. Our rent and storage and warehouse services revenues are the key drivers of our financial performance. Rent and storage revenues consist of recurring, periodic charges related to the storage of frozen and perishable food and other products in our warehouses. We also provide these customers with a wide array of handling and other warehouse services, such as (1) receipt, handling and placement of products into our warehouses for storage and preservation, (2) retrieval of products from storage upon customer request, (3) blast freezing, which involves the rapid freezing of non-frozen products, including individual quick freezing for agricultural produce and seafood, (4) case-picking, which involves selecting product cases to build customized pallets, (5) kitting and repackaging, which involves assembling custom product packages for delivery to retailers and consumers, and labeling services, (6) order assembly and load consolidation, (7) exporting and importing support services, (8) container handling, (9) cross-docking, which involves transferring inbound products to outbound trucks utilizing our warehouse docks without storing them in our warehouses, and (10) government-approved temperature-controlled storage and inspection services. We may charge our customers in advance for storage and outbound handling fees. Cost of operations for our warehouse segment consists of power, other facilities costs, labor and other services costs. •Third-party managed. We receive management and incentive fees, as well as reimbursement of substantially all expenses, for warehouses and logistics services that we manage on behalf of third-party owners/customers. Cost of operations for our third-party managed segment are reimbursed on a pass-through basis (typically within two weeks), with all reimbursements, plus an applicable mark-up, recognized as revenues under the relevant accounting guidance. •Transportation. We charge transportation fees, including fuel surcharges, to our customers for whom we arrange the transportation of their products. Cost of operations for our transportation segment consist primarily of third-party carrier charges, which are impacted by factors affecting those carriers. •Other. In addition to our primary business segments, we owned a limestone quarry in Carthage, Missouri. Revenues were generated from the sale of limestone mined at our quarry. Cost of operations for our quarry consist primarily of labor, equipment, fuel and explosives. We do not view the operation of the quarry as an integral part of our business, and as a result this business segment was subsequently sold on July 1, 2020. Our reportable segments are strategic business units separated by service offerings. Each reportable segment is managed separately and requires different operational and marketing strategies. The accounting polices used in the preparation of our reportable segments financial information are the same as those used in the preparation of its condensed consolidated financial statements. Our chief operating decision maker uses revenues and segment contribution to evaluate segment performance. We calculate segment contribution as earnings before interest expense, taxes, depreciation and amortization, and exclude selling, general and administrative expense, acquisition, litigation and other expense, impairment of long-lived assets, gain or loss on sale of real estate and all components of non-operating other income and expense. Selling, general and administrative functions support all the business segments. Therefore, the related expense is not allocated to segments as the chief operating decision maker does not use it to evaluate segment performance. Segment contribution is not a measurement of financial performance under GAAP, and may not be comparable to similarly titled measures of other companies. You should not consider our segment contribution as an alternative to operating income determined in accordance with GAAP. The following table presents segment revenues and contributions with a reconciliation to income before income tax for the three and nine months ended September 30, 2020 and 2019 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Segment revenues: |  |  |  |  |  |  |
Warehouse | $ | 388,024 |  |  | $ | 365,593 |  |  | $ | 1,141,503 |  |  | $ | 993,439 |
Third-party managed | 75,338 |  |  | 62,846 |  |  | 213,213 |  |  | 188,497 |
Transportation | 34,096 |  |  | 35,685 |  |  | 104,874 |  |  | 109,273 |
Other | — |  |  | 2,058 |  |  | 4,459 |  |  | 6,512 |
Total revenues | 497,458 |  |  | 466,182 |  |  | 1,464,049 |  |  | 1,297,721 |
Segment contribution: |  |  |  |  |  |  |
Warehouse | 127,756 |  |  | 113,408 |  |  | 374,661 |  |  | 318,044 |
Third-party managed | 3,393 |  |  | 2,583 |  |  | 10,461 |  |  | 8,646 |
Transportation | 4,187 |  |  | 4,640 |  |  | 13,764 |  |  | 13,202 |
Other | (17) |  |  | 75 |  |  | 173 |  |  | 611 |
Total segment contribution | 135,319 |  |  | 120,706 |  |  | 399,059 |  |  | 340,503 |
Reconciling items: |  |  |  |  |  |  |
Depreciation, depletion and amortization | (53,569) |  |  | (45,065) |  |  | (157,572) |  |  | (115,598) |
Selling, general and administrative | (35,969) |  |  | (32,476) |  |  | (105,202) |  |  | (96,262) |
Acquisition, litigation and other | (5,282) |  |  | (3,780) |  |  | (9,771) |  |  | (30,237) |
Impairment of long-lived assets | (2,615) |  |  | — |  |  | (6,282) |  |  | (13,485) |
(Loss) gain from sale of real estate | (427) |  |  | — |  |  | 21,448 |  |  | (34) |
Interest expense | (23,066) |  |  | (24,907) |  |  | (70,114) |  |  | (70,581) |
Interest income | 179 |  |  | 1,798 |  |  | 1,027 |  |  | 5,206 |
Bridge loan commitment fees | — |  |  | — |  |  | — |  |  | (2,665) |
Loss on debt extinguishment and modifications | — |  |  | — |  |  | (781) |  |  | — |
Foreign currency exchange loss | (196) |  |  | (43) |  |  | (373) |  |  | (66) |
Other expense, net | (1,083) |  |  | (249) |  |  | (168) |  |  | (1,007) |
Loss from investments in partially owned entities | (98) |  |  | (165) |  |  | (254) |  |  | (111) |
Gain from sale of partially owned entities | — |  |  | 4,297 |  |  | — |  |  | 4,297 |
Income before income tax (expense) benefit | $ | 13,193 |  |  | $ | 20,116 |  |  | $ | 71,017 |  |  | $ | 19,960 |
The following table details our assets by reportable segments, with a reconciliation to total assets reported for each of the periods presented in the accompanying Condensed Consolidated Balance Sheets.
| September 30, 2020 |  | December 31, 2019
| (In thousands)
Assets: |  |  |
Warehouse | $ | 4,352,787 |  |  | $ | 3,684,391 |
Managed | 45,143 |  |  | 47,867 |
Transportation | 43,473 |  |  | 50,666 |
Other | 14 |  |  | 13,467 |
Total segments assets | 4,441,417 |  |  | 3,796,391 |
Reconciling items: |  |  |
Corporate assets | 155,153 |  |  | 374,292 |
Investments in partially owned entities | 21,536 |  |  | — |
Total reconciling items | 176,689 |  |  | 374,292 |
Total assets | $ | 4,618,106 |  |  | $ | 4,170,683 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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