v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Our operating segments are aggregated into two reportable segments: Warehouse and Transportation.
As of January 1, 2026, the Company's former Third-Party Managed reportable segment has been included in the Warehouse reportable segment. All prior period comparative financial information has been recast to reflect the revised segment structure. Refer to Note 1 - General for further details on this change.
Revenues and costs associated with the Company's management of the EQT JV, consisting of a management fee and reimbursed costs, are not included in either of the Company’s Warehouse or Transportation reportable segments and are presented as reconciling items between Total segment contribution and Income (loss) before income taxes. The EQT JV management activities do not meet the materiality threshold required for separate reporting as a reportable segment as of September 30, 2026.
•Warehouse. Our core business is our Warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. We collect rent and storage fees to store customers’ frozen and perishable food and other products. Our handling services optimize our customers’ product movement through the cold chain, including placement, case-picking, blast freezing, e-commerce fulfillment, and other recurring handling services. Further, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities.
Significant Warehouse segment expenses include labor, power, other facilities costs, and other services costs.
Labor - Labor, the most significant part of warehouse expenses, covers wages, benefits, and workers' compensation.
Power - The cost of power, also a significant cost of operations, fluctuates based on the price of power in the regions that our facilities operate and the required temperature zone or freezing required.
Other Facilities Costs - Other facilities costs include utilities other than power, property taxes and insurance, sanitation, repairs and maintenance, operating lease rent charges, security, and other related facilities costs.
Other Services Costs - Other services costs include equipment costs, warehouse consumables (e.g., shrink-wrap), employee protective equipment, warehouse administration and other related services costs.
•Transportation. In our Transportation segment, we broker, manage or operate transportation of frozen and perishable food and other products for our customers. Our services include consolidation (i.e., combining products for efficient shipment), freight under management services (i.e., arranging and overseeing transportation of customer inventory) and dedicated transportation, each designed to improve efficiency and reduce transportation and logistics costs to our customers.
Transportation services cost of operations are primarily affected by third-party carrier costs, which are influenced by carrier factors like driver and equipment availability. In select markets, we use our drivers and assets, incurring costs like wages, fuel, tolls, insurance, and maintenance to operate these assets.
The accounting policies used in the preparation of our reportable segments’ financial information are the same as those used in the preparation of our Condensed Consolidated Financial Statements. Our CODM is our Chief Executive Officer, who uses segment contribution to evaluate segment performance and to allocate resources. The
CODM considers budget-to-actual variances on a monthly, quarterly, and annual basis using the segment profit or loss measure when making decisions about allocating capital and personnel to the segments. The CODM also uses the segment profit or loss measure to assess the performance of each segment by comparing the results and return on specific assets within each segment with one another and industry competitors.
Segment contribution metrics help investors understand revenues, costs, and earnings among service types. Segment contribution is calculated as earnings before interest expense, taxes, depreciation and amortization, excluding Joint venture related management fee and reimbursed costs (revenue); Joint venture related reimbursed costs; corporate Selling, general, and administrative expense; Transactions, strategic initiatives and other costs, net; Impairment of long-lived assets; Net (gain) loss from sale of real estate; Gain on contribution of real estate assets; 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 CODM does not use it to evaluate segment performance and to allocate resources. Segment contribution is not a measurement of financial performance under U.S. GAAP and should not be considered an alternative to operating income. The Company has not disclosed assets by reportable segments, as asset information is not used by our CODM to facilitate resource allocations.
The following table presents segment revenues, significant segment expenses and segment contribution with a reconciliation to Income (loss) before income taxes for the three and nine months ended September 30, 2026 and 2025:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(In thousands)
Segment revenues:
Warehouse(1)
$616,283 $615,822 $1,797,769 $1,803,460 
Transportation62,217 47,843 173,491 139,933 
Total Segment revenues678,500 663,665 1,971,260 1,943,393 
Significant Segment Expenses:
Warehouse(1):
Power44,355 42,440 116,292 109,695 
Other facilities costs(2)
62,374 62,487 183,976 184,014 
Labor255,456 259,646 763,078 760,945 
Other services costs(2)
49,882 53,957 141,766 150,006 
Total warehouse cost of operations
412,067 418,530 1,205,112 1,204,660 
Transportation services cost of operations52,750 40,107 144,269 116,201 
Total segment expenses $464,817 $458,637 $1,349,381 $1,320,861 
Segment contribution:
Warehouse(1)
204,216 197,292 592,657 598,800 
Transportation9,467 7,736 29,222 23,732 
Total segment contribution213,683 205,028 621,879 622,532 
Joint venture related management fee and reimbursed costs13,058 — 13,058 — 
Joint venture related reimbursed costs(11,597)— (11,597)— 
Depreciation and amortization expense(105,666)(88,023)(300,257)(267,467)
Selling, general, and administrative expense(63,487)(70,982)(197,670)(207,124)
Transactions, strategic initiatives and other costs, net(32,208)(29,052)(81,123)(77,692)
Impairment of long-lived assets(4,623)(77)(314,195)(5,303)
Net gain (loss) from sale of real estate12,126 (143)17,647 11,617 
Gain on contribution of real estate assets721,381 — 721,381 — 
Interest expense(41,971)(33,931)(125,790)(108,293)
Loss from investments in partially owned entities(2,398)(41)(3,330)(1,739)
Other, net(1,240)(477)13,071 6,594 
Income (loss) before income taxes$697,058 $(17,698)$353,074 $(26,875)
(1)Prior period Warehouse segment financial results have been recast to include the Company’s former Third-Party Managed reportable segment.
(2)Certain immaterial prior period amounts have been reclassified to conform to the current period presentation.