☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 86-2098312 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
Two American Lane | ||||||||
Greenwich, Connecticut | 06831 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, par value $0.01 per share | GXO | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
GXO Logistics, Inc. | ||||||||
Form 10-Q | ||||||||
For the Quarterly Period Ended | ||||||||
Table of Contents | ||||||||
Page | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, shares in thousands, except per share amounts) | (Dollars in millions, shares in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions, shares in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue | $ | 2,394 | $ | 2,156 | $ | 4,717 | $ | 4,239 | Revenue | $ | 2,471 | $ | 2,287 | $ | 7,188 | $ | 6,526 | ||||||||||||||||||||||||||||||||||
Direct operating expense | Direct operating expense | 1,957 | 1,775 | 3,863 | 3,523 | Direct operating expense | 2,012 | 1,885 | 5,875 | 5,408 | ||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | Selling, general and administrative expense | 245 | 220 | 503 | 410 | Selling, general and administrative expense | 258 | 227 | 761 | 637 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | Depreciation and amortization expense | 84 | 77 | 167 | 153 | Depreciation and amortization expense | 101 | 89 | 268 | 242 | ||||||||||||||||||||||||||||||||||||||||||
Transaction and integration costs | Transaction and integration costs | 6 | 24 | 19 | 43 | Transaction and integration costs | 3 | 14 | 22 | 57 | ||||||||||||||||||||||||||||||||||||||||||
Restructuring costs and other | Restructuring costs and other | 3 | 1 | 24 | 14 | Restructuring costs and other | 7 | — | 31 | 14 | ||||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 99 | 59 | 141 | 96 | Operating income | 90 | 72 | 231 | 168 | ||||||||||||||||||||||||||||||||||||||||||
Other income, net | Other income, net | 1 | 23 | 1 | 39 | Other income, net | 7 | 17 | 8 | 56 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | (14) | (9) | (27) | (13) | Interest expense, net | (14) | (6) | (41) | (19) | ||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 86 | 73 | 115 | 122 | Income before income taxes | 83 | 83 | 198 | 205 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (20) | (21) | (23) | (32) | Income tax expense | (15) | (19) | (38) | (51) | ||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 66 | 52 | 92 | 90 | Net income | 68 | 64 | 160 | 154 | ||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | (1) | (1) | (2) | (2) | Net income attributable to noncontrolling interests | (2) | (1) | (4) | (3) | ||||||||||||||||||||||||||||||||||||||||||
Net income attributable to GXO | Net income attributable to GXO | $ | 65 | $ | 51 | $ | 90 | $ | 88 | Net income attributable to GXO | $ | 66 | $ | 63 | $ | 156 | $ | 151 | ||||||||||||||||||||||||||||||||||
Earnings per share | Earnings per share | Earnings per share | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 0.55 | $ | 0.44 | $ | 0.76 | $ | 0.76 | Basic | $ | 0.55 | $ | 0.53 | $ | 1.31 | $ | 1.30 | ||||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | 0.54 | $ | 0.44 | $ | 0.75 | $ | 0.76 | Diluted | $ | 0.55 | $ | 0.53 | $ | 1.31 | $ | 1.29 | ||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding | Weighted-average common shares outstanding | Weighted-average common shares outstanding | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | 118,927 | 116,131 | 118,854 | 115,435 | Basic | 118,941 | 118,621 | 118,883 | 116,508 | ||||||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | 119,415 | 116,646 | 119,323 | 116,111 | Diluted | 119,645 | 119,065 | 119,430 | 117,107 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 66 | $ | 52 | $ | 92 | $ | 90 | Net income | $ | 68 | $ | 64 | $ | 160 | $ | 154 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation gain (loss), net of tax (expense) benefit of $6, $(10), $9 and $(10) | 17 | (75) | 30 | (120) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gain on cash flow hedges, net of tax (expense) of $(1), $0, $0 and $0 | 4 | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss, net of tax expense of $(9), $(22), $0 and $(32) | Foreign currency translation loss, net of tax expense of $(9), $(22), $0 and $(32) | (69) | (43) | (39) | (163) | |||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gain on cash flow hedges, net of tax expense of $(1), $(2), $(1) and $(2) | Net unrealized gain on cash flow hedges, net of tax expense of $(1), $(2), $(1) and $(2) | — | 9 | 1 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plans, amortization of net loss, net of tax of $0, $0, $0 and $0 | Defined benefit plans, amortization of net loss, net of tax of $0, $0, $0 and $0 | 1 | — | 1 | — | Defined benefit plans, amortization of net loss, net of tax of $0, $0, $0 and $0 | 1 | — | 2 | — | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 22 | (75) | 32 | (120) | ||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 88 | (23) | 124 | (30) | ||||||||||||||||||||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | 2 | — | 3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to GXO | $ | 86 | $ | (23) | $ | 121 | $ | (30) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | (68) | (34) | (36) | (154) | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | — | 30 | 124 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interest | Less: Comprehensive income (loss) attributable to noncontrolling interest | — | (1) | 3 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to GXO | Comprehensive income attributable to GXO | $ | — | $ | 31 | $ | 121 | $ | 1 |
June 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||
(Dollars in millions, shares in thousands, except per share amounts) | (Dollars in millions, shares in thousands, except per share amounts) | 2023 | 2022 | (Dollars in millions, shares in thousands, except per share amounts) | 2023 | 2022 | ||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||||||||
Current assets | Current assets | Current assets | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 305 | $ | 495 | Cash and cash equivalents | $ | 473 | $ | 495 | ||||||||||||||||||
Accounts receivable, net of allowance of $12 and $12 | 1,719 | 1,647 | ||||||||||||||||||||||||||
Accounts receivable, net of allowance of $18 and $12 | Accounts receivable, net of allowance of $18 and $12 | 1,661 | 1,647 | |||||||||||||||||||||||||
Other current assets | Other current assets | 282 | 286 | Other current assets | 332 | 286 | ||||||||||||||||||||||
Total current assets | Total current assets | 2,306 | 2,428 | Total current assets | 2,466 | 2,428 | ||||||||||||||||||||||
Long-term assets | Long-term assets | Long-term assets | ||||||||||||||||||||||||||
Property and equipment, net of accumulated depreciation of $1,428 and $1,297 | 965 | 960 | ||||||||||||||||||||||||||
Property and equipment, net of accumulated depreciation of $1,463 and $1,297 | Property and equipment, net of accumulated depreciation of $1,463 and $1,297 | 923 | 960 | |||||||||||||||||||||||||
Operating lease assets | Operating lease assets | 2,194 | 2,227 | Operating lease assets | 2,133 | 2,227 | ||||||||||||||||||||||
Goodwill | Goodwill | 2,802 | 2,728 | Goodwill | 2,734 | 2,728 | ||||||||||||||||||||||
Intangible assets, net of accumulated amortization of $500 and $456 | 544 | 570 | ||||||||||||||||||||||||||
Intangible assets, net of accumulated amortization of $507 and $456 | Intangible assets, net of accumulated amortization of $507 and $456 | 507 | 570 | |||||||||||||||||||||||||
Other long-term assets | Other long-term assets | 315 | 306 | Other long-term assets | 328 | 306 | ||||||||||||||||||||||
Total long-term assets | Total long-term assets | 6,820 | 6,791 | Total long-term assets | 6,625 | 6,791 | ||||||||||||||||||||||
Total assets | Total assets | $ | 9,126 | $ | 9,219 | Total assets | $ | 9,091 | $ | 9,219 | ||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | ||||||||||||||||||||||||||
Current liabilities | Current liabilities | Current liabilities | ||||||||||||||||||||||||||
Accounts payable | Accounts payable | $ | 566 | $ | 717 | Accounts payable | $ | 597 | $ | 717 | ||||||||||||||||||
Accrued expenses | Accrued expenses | 950 | 995 | Accrued expenses | 975 | 995 | ||||||||||||||||||||||
Current debt | Current debt | 35 | 67 | Current debt | 26 | 67 | ||||||||||||||||||||||
Current operating lease liabilities | Current operating lease liabilities | 568 | 560 | Current operating lease liabilities | 561 | 560 | ||||||||||||||||||||||
Other current liabilities | Other current liabilities | 284 | 193 | Other current liabilities | 275 | 193 | ||||||||||||||||||||||
Total current liabilities | Total current liabilities | 2,403 | 2,532 | Total current liabilities | 2,434 | 2,532 | ||||||||||||||||||||||
Long-term liabilities | Long-term liabilities | Long-term liabilities | ||||||||||||||||||||||||||
Long-term debt | Long-term debt | 1,625 | 1,739 | Long-term debt | 1,621 | 1,739 | ||||||||||||||||||||||
Long-term operating lease liabilities | Long-term operating lease liabilities | 1,838 | 1,853 | Long-term operating lease liabilities | 1,800 | 1,853 | ||||||||||||||||||||||
Other long-term liabilities | Other long-term liabilities | 449 | 417 | Other long-term liabilities | 419 | 417 | ||||||||||||||||||||||
Total long-term liabilities | Total long-term liabilities | 3,912 | 4,009 | Total long-term liabilities | 3,840 | 4,009 | ||||||||||||||||||||||
Commitments and contingencies (Note 12) | Commitments and contingencies (Note 12) | Commitments and contingencies (Note 12) | ||||||||||||||||||||||||||
Stockholders’ Equity | Stockholders’ Equity | Stockholders’ Equity | ||||||||||||||||||||||||||
Common Stock, $0.01 par value per share; 300,000 shares authorized, 118,932 and 118,728 issued and outstanding | 1 | 1 | ||||||||||||||||||||||||||
Common Stock, $0.01 par value per share; 300,000 shares authorized, 118,951 and 118,728 issued and outstanding | Common Stock, $0.01 par value per share; 300,000 shares authorized, 118,951 and 118,728 issued and outstanding | 1 | 1 | |||||||||||||||||||||||||
Preferred Stock, $0.01 par value per share; 10,000 shares authorized, none issued and outstanding | Preferred Stock, $0.01 par value per share; 10,000 shares authorized, none issued and outstanding | — | — | Preferred Stock, $0.01 par value per share; 10,000 shares authorized, none issued and outstanding | — | — | ||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 2,587 | 2,575 | Additional paid-in capital | 2,593 | 2,575 | ||||||||||||||||||||||
Retained earnings | Retained earnings | 413 | 323 | Retained earnings | 479 | 323 | ||||||||||||||||||||||
Accumulated other comprehensive loss | (223) | (254) | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) (“AOCIL”) | Accumulated Other Comprehensive Income (Loss) (“AOCIL”) | (289) | (254) | |||||||||||||||||||||||||
Total stockholders’ equity before noncontrolling interests | Total stockholders’ equity before noncontrolling interests | 2,778 | 2,645 | Total stockholders’ equity before noncontrolling interests | 2,784 | 2,645 | ||||||||||||||||||||||
Noncontrolling interests | Noncontrolling interests | 33 | 33 | Noncontrolling interests | 33 | 33 | ||||||||||||||||||||||
Total equity | Total equity | 2,811 | 2,678 | Total equity | 2,817 | 2,678 | ||||||||||||||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 9,126 | $ | 9,219 | Total liabilities and equity | $ | 9,091 | $ | 9,219 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | Cash flows from operating activities: | ||||||||||||||||||||||||||
Net income | Net income | $ | 92 | $ | 90 | Net income | $ | 160 | $ | 154 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | Adjustments to reconcile net income to net cash provided by operating activities | Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||||||||
Depreciation and amortization expense | Depreciation and amortization expense | 167 | 153 | Depreciation and amortization expense | 268 | 242 | ||||||||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | 18 | 16 | Stock-based compensation expense | 25 | 24 | ||||||||||||||||||||||
Deferred tax expense (benefit) | Deferred tax expense (benefit) | (17) | 3 | Deferred tax expense (benefit) | (29) | — | ||||||||||||||||||||||
Other | Other | 10 | 1 | Other | 16 | (4) | ||||||||||||||||||||||
Changes in operating assets and liabilities | Changes in operating assets and liabilities | Changes in operating assets and liabilities | ||||||||||||||||||||||||||
Accounts receivable | Accounts receivable | (29) | (20) | Accounts receivable | (23) | (22) | ||||||||||||||||||||||
Other assets | Other assets | 18 | (30) | Other assets | (39) | (28) | ||||||||||||||||||||||
Accounts payable | Accounts payable | (107) | (56) | Accounts payable | (69) | (68) | ||||||||||||||||||||||
Accrued expenses and other liabilities | Accrued expenses and other liabilities | (52) | 43 | Accrued expenses and other liabilities | 34 | 18 | ||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 100 | 200 | Net cash provided by operating activities | 343 | 316 | ||||||||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | Cash flows from investing activities: | ||||||||||||||||||||||||||
Capital expenditures | Capital expenditures | (150) | (154) | Capital expenditures | (205) | (239) | ||||||||||||||||||||||
Proceeds from sales of property and equipment | Proceeds from sales of property and equipment | 10 | 6 | Proceeds from sales of property and equipment | 13 | 22 | ||||||||||||||||||||||
Acquisition of businesses, net of cash acquired | Acquisition of businesses, net of cash acquired | — | (874) | Acquisition of businesses, net of cash acquired | — | (874) | ||||||||||||||||||||||
Net proceeds from cross-currency swap agreements | Net proceeds from cross-currency swap agreements | — | 10 | Net proceeds from cross-currency swap agreements | — | 26 | ||||||||||||||||||||||
Other | Other | — | 9 | Other | — | 9 | ||||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (140) | (1,003) | Net cash used in investing activities | (192) | (1,056) | ||||||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | Cash flows from financing activities: | ||||||||||||||||||||||||||
Proceeds from issuance of debt, net | Proceeds from issuance of debt, net | — | 898 | Proceeds from issuance of debt, net | — | 898 | ||||||||||||||||||||||
Repayments of debt, net | Repayments of debt, net | (138) | — | Repayments of debt, net | (139) | — | ||||||||||||||||||||||
Repayments of finance lease obligations | Repayments of finance lease obligations | (16) | (15) | Repayments of finance lease obligations | (24) | (23) | ||||||||||||||||||||||
Taxes paid related to stock-based compensation awards | Taxes paid related to stock-based compensation awards | (6) | (12) | Taxes paid related to stock-based compensation awards | (7) | (12) | ||||||||||||||||||||||
Other | 5 | (2) | ||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | Net cash provided by (used in) financing activities | (155) | 869 | Net cash provided by (used in) financing activities | (170) | 863 | ||||||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | 5 | (15) | ||||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (190) | 51 | ||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 495 | 333 | ||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 305 | $ | 384 | ||||||||||||||||||||||||
Effect of exchange rates on cash, restricted cash and cash equivalents | Effect of exchange rates on cash, restricted cash and cash equivalents | (2) | (22) | |||||||||||||||||||||||||
Net (decrease) increase in cash, restricted cash and cash equivalents | Net (decrease) increase in cash, restricted cash and cash equivalents | (21) | 101 | |||||||||||||||||||||||||
Cash, restricted cash and cash equivalents, beginning of period | Cash, restricted cash and cash equivalents, beginning of period | 495 | 333 | |||||||||||||||||||||||||
Cash, restricted cash and cash equivalents, end of period | Cash, restricted cash and cash equivalents, end of period | $ | 474 | $ | 434 | |||||||||||||||||||||||
Supplemental disclosure of non-cash activities: | ||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 473 | $ | 434 | |||||||||||||||||||||||
Restricted Cash (included in Other long-term assets) | Restricted Cash (included in Other long-term assets) | 1 | — | |||||||||||||||||||||||||
Total cash, restricted cash and cash equivalents | Total cash, restricted cash and cash equivalents | $ | 474 | $ | 434 | |||||||||||||||||||||||
Non-cash investing activities: | Non-cash investing activities: | |||||||||||||||||||||||||||
Common stock issued for acquisition | Common stock issued for acquisition | $ | — | $ | 203 | Common stock issued for acquisition | $ | — | $ | 203 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Equity Before Noncontrolling Interests | Noncontrolling Interests | Total Equity | Common Stock | Additional Paid-In Capital | Retained Earnings | AOCIL | Equity Before Noncontrolling Interests | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Shares in thousands, dollars in millions) | (Shares in thousands, dollars in millions) | Shares | Amount | (Shares in thousands, dollars in millions) | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | 118,889 | $ | 1 | $ | 2,580 | $ | 348 | $ | (244) | $ | 2,685 | $ | 34 | $ | 2,719 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | Balance as of June 30, 2023 | 118,932 | $ | 1 | $ | 2,587 | $ | 413 | $ | (223) | $ | 2,778 | $ | 33 | $ | 2,811 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 65 | — | 65 | 1 | 66 | Net income | — | — | — | 66 | — | 66 | 2 | 68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 21 | 21 | 1 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | (66) | (66) | (2) | (68) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | — | — | 9 | — | — | 9 | — | 9 | Stock-based compensation | — | — | 7 | — | — | 7 | — | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of stock-based compensation awards | Vesting of stock-based compensation awards | 71 | — | — | — | — | — | — | — | Vesting of stock-based compensation awards | 30 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vesting of stock-based compensation awards | Tax withholding on vesting of stock-based compensation awards | (28) | — | (2) | — | — | (2) | — | (2) | Tax withholding on vesting of stock-based compensation awards | (11) | — | (1) | — | — | (1) | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | 118,932 | $ | 1 | $ | 2,587 | $ | 413 | $ | (223) | $ | 2,778 | $ | 33 | $ | 2,811 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | Balance as of September 30, 2023 | 118,951 | $ | 1 | $ | 2,593 | $ | 479 | $ | (289) | $ | 2,784 | $ | 33 | $ | 2,817 |
(Shares in thousands, dollars in millions) | (Shares in thousands, dollars in millions) | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Equity Before Noncontrolling Interests | Noncontrolling Interests | Total Equity | (Shares in thousands, dollars in millions) | Common Stock | Additional Paid-In Capital | Retained Earnings | AOCIL | Equity Before Noncontrolling Interests | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | Balance as of December 31, 2022 | 118,728 | $ | 1 | $ | 2,575 | $ | 323 | $ | (254) | $ | 2,645 | $ | 33 | $ | 2,678 | Balance as of December 31, 2022 | 118,728 | $ | 1 | $ | 2,575 | $ | 323 | $ | (254) | $ | 2,645 | $ | 33 | $ | 2,678 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 90 | — | 90 | 2 | 92 | Net income | — | — | — | 156 | — | 156 | 4 | 160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 31 | 31 | 1 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | (35) | (35) | (1) | (36) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | — | — | 18 | — | — | 18 | — | 18 | Stock-based compensation | — | — | 25 | — | — | 25 | — | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of stock-based compensation awards | Vesting of stock-based compensation awards | 336 | — | — | — | — | — | — | — | Vesting of stock-based compensation awards | 366 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vesting of stock-based compensation awards | Tax withholding on vesting of stock-based compensation awards | (132) | — | (6) | — | — | (6) | — | (6) | Tax withholding on vesting of stock-based compensation awards | (143) | — | (7) | — | — | (7) | — | (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | Dividends | — | — | — | — | — | — | (3) | (3) | Dividends | — | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | 118,932 | $ | 1 | $ | 2,587 | $ | 413 | $ | (223) | $ | 2,778 | $ | 33 | $ | 2,811 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | Balance as of September 30, 2023 | 118,951 | $ | 1 | $ | 2,593 | $ | 479 | $ | (289) | $ | 2,784 | $ | 33 | $ | 2,817 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Equity Before Noncontrolling Interests | Noncontrolling Interests | Total Equity | Common Stock | Additional Paid-In Capital | Retained Earnings | AOCIL | Equity Before Noncontrolling Interests | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Shares in thousands, dollars in millions) | (Shares in thousands, dollars in millions) | Shares | Amount | (Shares in thousands, dollars in millions) | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 114,840 | $ | 1 | $ | 2,349 | $ | 163 | $ | (172) | $ | 2,341 | $ | 34 | $ | 2,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | Balance as of June 30, 2022 | 118,610 | $ | 1 | $ | 2,561 | $ | 214 | $ | (246) | $ | 2,530 | $ | 31 | $ | 2,561 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 51 | — | 51 | 1 | 52 | Net income | — | — | — | 63 | — | 63 | 1 | 64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | (74) | (74) | (1) | (75) | Other comprehensive loss | — | — | — | — | (32) | (32) | (2) | (34) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | — | — | 10 | — | — | 10 | — | 10 | Stock-based compensation | — | — | 8 | — | — | 8 | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of stock compensation awards | Vesting of stock compensation awards | 23 | — | — | — | — | — | — | — | Vesting of stock compensation awards | 33 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vesting of stock compensation awards | Tax withholding on vesting of stock compensation awards | (2) | — | (1) | — | — | (1) | — | (1) | Tax withholding on vesting of stock compensation awards | (14) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for acquisition | 3,749 | — | 203 | — | — | 203 | — | 203 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 118,610 | $ | 1 | $ | 2,561 | $ | 214 | $ | (246) | $ | 2,530 | $ | 31 | $ | 2,561 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | Balance as of September 30, 2022 | 118,629 | $ | 1 | $ | 2,569 | $ | 277 | $ | (278) | $ | 2,569 | $ | 30 | $ | 2,599 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Equity Before Noncontrolling Interests | Noncontrolling Interests | Total Equity | Common Stock | Additional Paid-In Capital | Retained Earnings | AOCIL | Equity Before Noncontrolling Interests | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Shares in thousands, dollars in millions) | (Shares in thousands, dollars in millions) | Shares | Amount | (Shares in thousands, dollars in millions) | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | Balance as of December 31, 2021 | 114,659 | $ | 1 | $ | 2,354 | $ | 126 | $ | (130) | $ | 2,351 | $ | 39 | $ | 2,390 | Balance as of December 31, 2021 | 114,659 | $ | 1 | $ | 2,354 | $ | 126 | $ | (130) | $ | 2,351 | $ | 39 | $ | 2,390 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 88 | — | 88 | 2 | 90 | Net income | — | — | — | 151 | — | 151 | 3 | 154 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | (118) | (118) | (2) | (120) | Other comprehensive loss | — | — | — | — | (150) | (150) | (4) | (154) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | — | — | 16 | — | — | 16 | — | 16 | Stock-based compensation | — | — | 24 | — | — | 24 | — | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of stock compensation awards | Vesting of stock compensation awards | 341 | — | — | — | — | — | — | — | Vesting of stock compensation awards | 374 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vesting of stock compensation awards | Tax withholding on vesting of stock compensation awards | (139) | — | (12) | — | — | (12) | — | (12) | Tax withholding on vesting of stock compensation awards | (153) | — | (12) | — | — | (12) | — | (12) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for acquisition | Common stock issued for acquisition | 3,749 | — | 203 | — | — | 203 | — | 203 | Common stock issued for acquisition | 3,749 | — | 203 | — | — | 203 | — | 203 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation of variable interest entity | Deconsolidation of variable interest entity | — | — | — | — | 2 | 2 | (5) | (3) | Deconsolidation of variable interest entity | — | — | — | — | 2 | 2 | (5) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | Dividends | — | — | — | — | — | — | (3) | (3) | Dividends | — | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 118,610 | $ | 1 | $ | 2,561 | $ | 214 | $ | (246) | $ | 2,530 | $ | 31 | $ | 2,561 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | Balance as of September 30, 2022 | 118,629 | $ | 1 | $ | 2,569 | $ | 277 | $ | (278) | $ | 2,569 | $ | 30 | $ | 2,599 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
United Kingdom | United Kingdom | $ | 893 | $ | 777 | $ | 1,737 | $ | 1,481 | United Kingdom | $ | 958 | $ | 890 | $ | 2,695 | $ | 2,371 | ||||||||||||||||||||||||||||||||||
United States | United States | 692 | 685 | 1,406 | 1,366 | United States | 711 | 709 | 2,117 | 2,075 | ||||||||||||||||||||||||||||||||||||||||||
France | France | 217 | 183 | 419 | 359 | France | 207 | 171 | 626 | 530 | ||||||||||||||||||||||||||||||||||||||||||
Netherlands | Netherlands | 198 | 163 | 394 | 333 | Netherlands | 216 | 175 | 610 | 508 | ||||||||||||||||||||||||||||||||||||||||||
Spain | Spain | 136 | 123 | 263 | 243 | Spain | 133 | 117 | 396 | 360 | ||||||||||||||||||||||||||||||||||||||||||
Italy | Italy | 94 | 80 | 182 | 162 | Italy | 97 | 81 | 279 | 243 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 164 | 145 | 316 | 295 | Other | 149 | 144 | 465 | 439 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,394 | $ | 2,156 | $ | 4,717 | $ | 4,239 | Total | $ | 2,471 | $ | 2,287 | $ | 7,188 | $ | 6,526 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Omnichannel retail | Omnichannel retail | $ | 1,026 | $ | 879 | $ | 1,990 | $ | 1,704 | Omnichannel retail | $ | 1,051 | $ | 919 | $ | 3,041 | $ | 2,618 | ||||||||||||||||||||||||||||||||||
Technology and consumer electronics | Technology and consumer electronics | 355 | 315 | 721 | 620 | Technology and consumer electronics | 360 | 338 | 1,081 | 963 | ||||||||||||||||||||||||||||||||||||||||||
Food and beverage | Food and beverage | 335 | 336 | 642 | 674 | Food and beverage | 362 | 335 | 1,004 | 1,009 | ||||||||||||||||||||||||||||||||||||||||||
Industrial and manufacturing | Industrial and manufacturing | 270 | 269 | 540 | 532 | Industrial and manufacturing | 263 | 275 | 803 | 807 | ||||||||||||||||||||||||||||||||||||||||||
Consumer packaged goods | Consumer packaged goods | 232 | 223 | 458 | 436 | Consumer packaged goods | 231 | 227 | 689 | 663 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 176 | 134 | 366 | 273 | Other | 204 | 193 | 570 | 466 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,394 | $ | 2,156 | $ | 4,717 | $ | 4,239 | Total | $ | 2,471 | $ | 2,287 | $ | 7,188 | $ | 6,526 |
June 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Contract assets included in: | Contract assets included in: | Contract assets included in: | ||||||||||||||||||||||||||
Other current assets | Other current assets | $ | 15 | $ | 25 | Other current assets | $ | 13 | $ | 25 | ||||||||||||||||||
Other long-term assets | Other long-term assets | 161 | 165 | Other long-term assets | 161 | 165 | ||||||||||||||||||||||
Total contract assets | Total contract assets | $ | 176 | $ | 190 | Total contract assets | $ | 174 | $ | 190 | ||||||||||||||||||
Contract liabilities included in: | Contract liabilities included in: | Contract liabilities included in: | ||||||||||||||||||||||||||
Other current liabilities | Other current liabilities | $ | 196 | $ | 154 | Other current liabilities | $ | 183 | $ | 154 | ||||||||||||||||||
Other long-term liabilities | Other long-term liabilities | 119 | 134 | Other long-term liabilities | 114 | 134 | ||||||||||||||||||||||
Total contract liabilities | Total contract liabilities | $ | 315 | $ | 288 | Total contract liabilities | $ | 297 | $ | 288 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Amounts included in the beginning-of-year contract liability balance | Amounts included in the beginning-of-year contract liability balance | $ | 16 | $ | 8 | $ | 98 | $ | 71 | Amounts included in the beginning-of-year contract liability balance | $ | 11 | $ | 12 | $ | 109 | $ | 83 |
June 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Operating leases: | Operating leases: | Operating leases: | ||||||||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | 2,194 | $ | 2,227 | Operating lease assets | $ | 2,133 | $ | 2,227 | ||||||||||||||||||
Current operating lease liabilities | Current operating lease liabilities | $ | 568 | $ | 560 | Current operating lease liabilities | $ | 561 | $ | 560 | ||||||||||||||||||
Long-term operating lease liabilities | Long-term operating lease liabilities | 1,838 | 1,853 | Long-term operating lease liabilities | 1,800 | 1,853 | ||||||||||||||||||||||
Total operating lease liabilities | Total operating lease liabilities | $ | 2,406 | $ | 2,413 | Total operating lease liabilities | $ | 2,361 | $ | 2,413 | ||||||||||||||||||
Finance leases: | Finance leases: | Finance leases: | ||||||||||||||||||||||||||
Property and equipment, net | Property and equipment, net | $ | 124 | $ | 123 | Property and equipment, net | $ | 111 | $ | 123 | ||||||||||||||||||
Current debt | Current debt | $ | 31 | $ | 35 | Current debt | $ | 26 | $ | 35 | ||||||||||||||||||
Long-term debt | Long-term debt | 96 | 97 | Long-term debt | 91 | 97 | ||||||||||||||||||||||
Total finance lease liabilities | Total finance lease liabilities | $ | 127 | $ | 132 | Total finance lease liabilities | $ | 117 | $ | 132 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Operating leases: | Operating leases: | Operating leases: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease cost | Operating lease cost | $ | 183 | $ | 171 | $ | 398 | $ | 340 | Operating lease cost | $ | 163 | $ | 187 | $ | 561 | $ | 527 | ||||||||||||||||||||||||||||||||||
Short-term lease cost | Short-term lease cost | 63 | 23 | 92 | 45 | Short-term lease cost | 78 | 24 | 170 | 69 | ||||||||||||||||||||||||||||||||||||||||||
Variable lease cost | Variable lease cost | 29 | 22 | 57 | 42 | Variable lease cost | 36 | 31 | 93 | 73 | ||||||||||||||||||||||||||||||||||||||||||
Total operating lease cost (1) | Total operating lease cost (1) | $ | 275 | $ | 216 | $ | 547 | $ | 427 | Total operating lease cost (1) | $ | 277 | $ | 242 | $ | 824 | $ | 669 | ||||||||||||||||||||||||||||||||||
Finance leases: | Finance leases: | Finance leases: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of leases | Amortization of leases | $ | 6 | $ | 11 | $ | 13 | $ | 18 | Amortization of leases | $ | 10 | $ | 5 | $ | 23 | $ | 23 | ||||||||||||||||||||||||||||||||||
Interest expense on lease liabilities | Interest expense on lease liabilities | 1 | 2 | 2 | 3 | Interest expense on lease liabilities | 1 | 1 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Total finance lease cost | Total finance lease cost | $ | 7 | $ | 13 | $ | 15 | $ | 21 | Total finance lease cost | $ | 11 | $ | 6 | $ | 26 | $ | 27 | ||||||||||||||||||||||||||||||||||
Total operating and finance lease cost | Total operating and finance lease cost | $ | 282 | $ | 229 | $ | 562 | $ | 448 | Total operating and finance lease cost | $ | 288 | $ | 248 | $ | 850 | $ | 696 |
Six Months Ended June 30, | ||||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Leased assets obtained in exchange for new operating lease liabilities, including $249 from an acquisition in 2022 | $ | 239 | $ | 559 | ||||||||||
Leased assets obtained in exchange for new finance lease liabilities, including $14 from an acquisition in 2022 | 8 | 16 |
Nine Months Ended September 30, | ||||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Leased assets obtained in exchange for new operating lease liabilities, including $207 from an acquisition in 2022 | $ | 389 | $ | 911 | ||||||||||
Leased assets obtained in exchange for new finance lease liabilities, including $16 from an acquisition in 2022 | 8 | 18 |
June 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | Rate (1) | 2023 | 2022 | (In millions) | Rate (1) | 2023 | 2022 | ||||||||||||||||||||||||||||||||
1.65% Unsecured notes due 2026 (2) | 1.65% Unsecured notes due 2026 (2) | 1.65% | $ | 398 | $ | 397 | 1.65% Unsecured notes due 2026 (2) | 1.65 | % | $ | 398 | $ | 397 | |||||||||||||||||||||||||||
2.65% Unsecured notes due 2031 (3) | 2.65% Unsecured notes due 2031 (3) | 2.65% | 397 | 397 | 2.65% Unsecured notes due 2031 (3) | 2.65 | % | 397 | 397 | |||||||||||||||||||||||||||||||
Two-Year Term Loan due 2024 (4) | Two-Year Term Loan due 2024 (4) | —% | — | 115 | Two-Year Term Loan due 2024 (4) | — | % | — | 115 | |||||||||||||||||||||||||||||||
Three-Year Term Loan due 2025 (5) | Three-Year Term Loan due 2025 (5) | 6.33% | 235 | 234 | Three-Year Term Loan due 2025 (5) | 6.54 | % | 235 | 234 | |||||||||||||||||||||||||||||||
Five-Year Term Loan due 2027 (6) | Five-Year Term Loan due 2027 (6) | 6.45% | 499 | 499 | Five-Year Term Loan due 2027 (6) | 6.67 | % | 499 | 499 | |||||||||||||||||||||||||||||||
Finance leases and other | Finance leases and other | Various | 131 | 164 | Finance leases and other | Various | 118 | 164 | ||||||||||||||||||||||||||||||||
Total debt | Total debt | 1,660 | 1,806 | Total debt | 1,647 | 1,806 | ||||||||||||||||||||||||||||||||||
Less: Current debt | Less: Current debt | 35 | 67 | Less: Current debt | 26 | 67 | ||||||||||||||||||||||||||||||||||
Total Long-term debt | Total Long-term debt | $ | 1,625 | $ | 1,739 | Total Long-term debt | $ | 1,621 | $ | 1,739 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Receivables sold in period | Receivables sold in period | $ | 269 | $ | 228 | $ | 532 | $ | 457 | Receivables sold in period | $ | 288 | $ | 259 | $ | 820 | $ | 716 | ||||||||||||||||||||||||||||||||||
Cash consideration | Cash consideration | 268 | 228 | 529 | 456 | Cash consideration | 286 | 258 | 815 | 714 | ||||||||||||||||||||||||||||||||||||||||||
Net cash used in operating cash flows (1) | — | (8) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating cash flows (1) | Net cash provided by operating cash flows (1) | 27 | 18 | 27 | 16 |
June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | Level | Fair Value | Carrying Value | Fair Value | Carrying Value | (In millions) | Level | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1.65% Unsecured notes due 2026 | 1.65% Unsecured notes due 2026 | 2 | $ | 347 | $ | 398 | $ | 342 | $ | 397 | 1.65% Unsecured notes due 2026 | 2 | $ | 353 | $ | 398 | $ | 342 | $ | 397 | ||||||||||||||||||||||||||||||||||||||||||||
2.65% Unsecured notes due 2031 | 2.65% Unsecured notes due 2031 | 2 | 312 | 397 | 294 | 397 | 2.65% Unsecured notes due 2031 | 2 | 303 | 397 | 294 | 397 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Two-Year Term Loan due 2024 | Two-Year Term Loan due 2024 | 2 | — | — | 115 | 115 | Two-Year Term Loan due 2024 | 2 | — | — | 115 | 115 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three-Year Term Loan due 2025 | Three-Year Term Loan due 2025 | 2 | 231 | 235 | 234 | 234 | Three-Year Term Loan due 2025 | 2 | 233 | 235 | 234 | 234 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Five-Year Term Loan due 2027 | Five-Year Term Loan due 2027 | 2 | 493 | 499 | 499 | 499 | Five-Year Term Loan due 2027 | 2 | 495 | 499 | 499 | 499 |
June 30, 2023 | September 30, 2023 | |||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | Notional | Derivative Assets (1) | Derivative Liabilities (2) | (In millions) | Notional | Derivative Assets (1) | Derivative Liabilities (2) | ||||||||||||||||||||||||||||||||
Designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Designated as hedges: | Designated as hedges: | |||||||||||||||||||||||||||||||||||||||
Cross-currency swap agreements | Cross-currency swap agreements | $ | 1,337 | $ | 14 | $ | 37 | Cross-currency swap agreements | $ | 1,337 | $ | 26 | $ | 14 | ||||||||||||||||||||||||||
Interest rate swaps (3) | Interest rate swaps (3) | 250 | 9 | — | Interest rate swaps (3) | 250 | 9 | — | ||||||||||||||||||||||||||||||||
Not designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Not designated as hedges: | Not designated as hedges: | |||||||||||||||||||||||||||||||||||||||
Foreign currency option contracts | Foreign currency option contracts | $ | 315 | $ | 4 | $ | — | Foreign currency option contracts | $ | 424 | $ | 16 | $ | — | ||||||||||||||||||||||||||
Foreign currency forward contracts | Foreign currency forward contracts | 58 | — | — |
December 31, 2022 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | Notional | Derivative Assets (1) | Derivative Liabilities (2) | (In millions) | Notional | Derivative Assets (1) | Derivative Liabilities (2) | ||||||||||||||||||||||||||||||||
Designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Designated as hedges: | Designated as hedges: | |||||||||||||||||||||||||||||||||||||||
Cross-currency swap agreements | Cross-currency swap agreements | $ | 1,337 | $ | 22 | $ | 13 | Cross-currency swap agreements | $ | 1,337 | $ | 22 | $ | 13 | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | 250 | 9 | — | Interest rate swaps | 250 | 9 | — | ||||||||||||||||||||||||||||||||
Not designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Not designated as hedges: | Not designated as hedges: | |||||||||||||||||||||||||||||||||||||||
Foreign currency option contracts | Foreign currency option contracts | $ | 354 | $ | — | $ | 5 | Foreign currency option contracts | $ | 354 | $ | — | $ | 5 | ||||||||||||||||||||||||||
Foreign currency forward contracts | Foreign currency forward contracts | 3 | — | — | Foreign currency forward contracts | 3 | — | — |
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCL into Net Income (1) | Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) (1) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCL into Net Income (1) | Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) (1) | (In millions) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCIL into Net Income (1) | Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) (1) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCIL into Net Income (1) | Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as net investment hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as net investment hedges: | Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swap agreements | Cross-currency swap agreements | $ | (18) | $ | 3 | $ | — | $ | (34) | $ | — | $ | 1 | Cross-currency swap agreements | $ | 36 | $ | (3) | $ | 1 | $ | 2 | $ | (3) | $ | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | $ | 4 | $ | — | $ | — | $ | 1 | $ | — | $ | — | Interest rate swaps | $ | 1 | $ | — | $ | — | $ | 2 | $ | — | $ | — |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCL into Net Income (1) | Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) (1) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCL into Net Income (1) | Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) (1) | (In millions) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCIL into Net Income (1) | Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) (1) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCIL into Net Income (1) | Gain (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing) (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as net investment hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as net investment hedges: | Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swap agreements | Cross-currency swap agreements | $ | 43 | $ | 2 | $ | — | $ | 46 | $ | 2 | $ | 2 | Cross-currency swap agreements | $ | 90 | $ | — | $ | 1 | $ | 136 | $ | 2 | $ | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | $ | (1) | $ | — | $ | — | $ | (1) | $ | — | $ | — | Interest rate swaps | $ | 12 | $ | — | $ | — | $ | 11 | $ | — | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Realized foreign currency contracts gain (loss) | Realized foreign currency contracts gain (loss) | $ | (4) | $ | 7 | $ | (6) | $ | 9 | Realized foreign currency contracts gain (loss) | $ | (3) | $ | 10 | $ | (9) | $ | 19 | ||||||||||||||||||||||||||||||||||
Unrealized foreign currency contracts gain | 3 | 9 | 4 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total foreign currency gain (loss) recognized in net income | $ | (1) | $ | 16 | $ | (2) | $ | 24 | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized foreign currency contracts gain (loss) | Unrealized foreign currency contracts gain (loss) | 8 | (1) | 12 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||
Total foreign currency gain recognized in net income | Total foreign currency gain recognized in net income | $ | 5 | $ | 9 | $ | 3 | $ | 33 |
(In millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Plan | Less: AOCI attributable to noncontrolling interest | AOCL attributable to GXO | |||||||||||||||||||||||||||
As of March 31, 2023 | $ | (136) | $ | 4 | $ | (112) | $ | — | $ | (244) | ||||||||||||||||||||||
Foreign currency translation gain | 33 | — | — | (1) | 32 | |||||||||||||||||||||||||||
Unrealized gain (loss) on hedges, net of tax | (13) | 4 | — | — | (9) | |||||||||||||||||||||||||||
Amounts reclassified from AOCL to net income | (3) | — | 1 | — | (2) | |||||||||||||||||||||||||||
Other comprehensive income, net of tax | 17 | 4 | 1 | (1) | 21 | |||||||||||||||||||||||||||
As of June 30, 2023 | $ | (119) | $ | 8 | $ | (111) | $ | (1) | $ | (223) |
(In millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Plan | Less: AOCIL attributable to noncontrolling interest | AOCIL attributable to GXO | |||||||||||||||||||||||||||
As of June 30, 2023 | $ | (119) | $ | 8 | $ | (111) | $ | (1) | $ | (223) | ||||||||||||||||||||||
Foreign currency translation loss | (98) | — | — | 2 | (96) | |||||||||||||||||||||||||||
Unrealized gain on hedges, net of tax | 27 | — | — | — | 27 | |||||||||||||||||||||||||||
Amounts reclassified from AOCIL to net income | 2 | — | 1 | — | 3 | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (69) | — | 1 | 2 | (66) | |||||||||||||||||||||||||||
As of September 30, 2023 | $ | (188) | $ | 8 | $ | (110) | $ | 1 | $ | (289) |
(In millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Plan | Less: AOCI attributable to noncontrolling interest | AOCL attributable to GXO | |||||||||||||||||||||||||||
As of December 31, 2022 | $ | (149) | $ | 7 | $ | (112) | $ | — | $ | (254) | ||||||||||||||||||||||
Foreign currency translation gain | 57 | — | — | (1) | 56 | |||||||||||||||||||||||||||
Unrealized gain (loss) on hedges, net of tax | (26) | 1 | — | — | (25) | |||||||||||||||||||||||||||
Amounts reclassified from AOCL to net income | (1) | — | 1 | — | — | |||||||||||||||||||||||||||
Other comprehensive income, net of tax | 30 | 1 | 1 | (1) | 31 | |||||||||||||||||||||||||||
As of June 30, 2023 | $ | (119) | $ | 8 | $ | (111) | $ | (1) | $ | (223) |
(In millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Plan | Less: AOCIL attributable to noncontrolling interest | AOCIL attributable to GXO | |||||||||||||||||||||||||||
As of December 31, 2022 | $ | (149) | $ | 7 | $ | (112) | $ | — | $ | (254) | ||||||||||||||||||||||
Foreign currency translation loss | (41) | — | — | 1 | (40) | |||||||||||||||||||||||||||
Unrealized gain on hedges, net of tax | 1 | 1 | — | — | 2 | |||||||||||||||||||||||||||
Amounts reclassified from AOCIL to net income | 1 | — | 2 | — | 3 | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (39) | 1 | 2 | 1 | (35) | |||||||||||||||||||||||||||
As of September 30, 2023 | $ | (188) | $ | 8 | $ | (110) | $ | 1 | $ | (289) |
(In millions) | (In millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Plan | Less: AOCI attributable to noncontrolling interest | AOCL attributable to GXO | (In millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Plan | Less: AOCIL attributable to noncontrolling interest | AOCIL attributable to GXO | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2022 | $ | (94) | $ | — | $ | (76) | $ | (2) | $ | (172) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2022 | As of June 30, 2022 | $ | (169) | $ | — | $ | (76) | $ | (1) | $ | (246) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss | Foreign currency translation loss | (107) | — | — | 1 | (106) | Foreign currency translation loss | (111) | — | — | 2 | (109) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on hedges, net of tax | Unrealized gain on hedges, net of tax | 34 | — | — | — | 34 | Unrealized gain on hedges, net of tax | 69 | 9 | — | — | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCL to net income | (2) | — | — | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (75) | — | — | 1 | (74) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2022 | $ | (169) | $ | — | $ | (76) | $ | (1) | $ | (246) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCIL to net income | Amounts reclassified from AOCIL to net income | (1) | — | — | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | (43) | 9 | — | 2 | (32) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2022 | As of September 30, 2022 | $ | (212) | $ | 9 | $ | (76) | $ | 1 | $ | (278) |
(In millions) | (In millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Plan | Less: AOCI attributable to noncontrolling interest | AOCL attributable to GXO | (In millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Defined Benefit Plan | Less: AOCIL attributable to noncontrolling interest | AOCIL attributable to GXO | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2021 | As of December 31, 2021 | $ | (53) | $ | — | $ | (76) | $ | (1) | $ | (130) | As of December 31, 2021 | $ | (53) | $ | — | $ | (76) | $ | (1) | $ | (130) | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss | Foreign currency translation loss | (152) | — | — | 2 | (150) | Foreign currency translation loss | (260) | — | — | 4 | (256) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on hedges, net of tax | Unrealized gain on hedges, net of tax | 36 | — | — | — | 36 | Unrealized gain on hedges, net of tax | 102 | 9 | — | — | 111 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCL to net income | (4) | — | — | — | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (120) | — | — | 2 | (118) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCIL to net income | Amounts reclassified from AOCIL to net income | (5) | — | — | — | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | (163) | 9 | — | 4 | (150) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation of variable interest entity | Deconsolidation of variable interest entity | 4 | — | — | (2) | 2 | Deconsolidation of variable interest entity | 4 | — | — | (2) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2022 | $ | (169) | $ | — | $ | (76) | $ | (1) | $ | (246) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2022 | As of September 30, 2022 | $ | (212) | $ | 9 | $ | (76) | $ | 1 | $ | (278) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Interest cost | Interest cost | $ | (9) | $ | (5) | $ | (19) | $ | (11) | Interest cost | $ | (11) | $ | (5) | $ | (30) | $ | (16) | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | Expected return on plan assets | 12 | 14 | 24 | 29 | Expected return on plan assets | 14 | 12 | 38 | 41 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of net loss | Amortization of net loss | (1) | — | (1) | — | Amortization of net loss | (1) | — | (2) | — | ||||||||||||||||||||||||||||||||||||||||||
Net periodic pension income (1) | Net periodic pension income (1) | $ | 2 | $ | 9 | $ | 4 | $ | 18 | Net periodic pension income (1) | $ | 2 | $ | 7 | $ | 6 | $ | 25 |
(In millions) | ||||||||
Balance as of December 31, 2022 | $ | 13 | ||||||
Charges incurred | ||||||||
Payments | ||||||||
Balance as of | $ |
(In millions) | ||||||||
Balance as of December 31, 2022 | $ | 2,728 | ||||||
Acquisition (1) | 44 | |||||||
Impact of foreign exchange translation (2) | ||||||||
Balance as of | $ |
(In millions) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 26 | ||||||
Accounts receivable | 143 | |||||||
Other current assets | 67 | |||||||
Total current assets | 236 | |||||||
Long-term assets | ||||||||
Property and equipment | 80 | |||||||
Operating lease assets | 219 | |||||||
Intangible assets (1) | 392 | |||||||
Other long-term assets | 29 | |||||||
Total long-term assets | 720 | |||||||
Total assets | $ | 956 | ||||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 81 | ||||||
Accrued expenses | 96 | |||||||
Current debt | 55 | |||||||
Current operating lease liabilities | 43 | |||||||
Other current liabilities | 56 | |||||||
Total current liabilities | 331 | |||||||
Long-term liabilities | ||||||||
Long-term debt | 10 | |||||||
Long-term operating lease liabilities | 176 | |||||||
Other long-term liabilities | 173 | |||||||
Total long-term liabilities | 359 | |||||||
Total liabilities | $ | 690 | ||||||
Net assets purchased | $ | 266 | ||||||
Cash paid | $ | 902 | ||||||
Common stock issued (2) | 204 | |||||||
Purchase price paid | $ | 1,106 | ||||||
Goodwill recorded (3) | $ | 840 |
Three Months Ended June 30, | ||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Revenue | $ | 2,394 | $ | 2,156 | $ | 238 | 11 | % | ||||||||||||||||||
Direct operating expense | 1,957 | 1,775 | 182 | 10 | % | |||||||||||||||||||||
Selling, general and administrative expense | 245 | 220 | 25 | 11 | % | |||||||||||||||||||||
Depreciation and amortization expense | 84 | 77 | 7 | 9 | % | |||||||||||||||||||||
Transaction and integration costs | 6 | 24 | (18) | (75) | % | |||||||||||||||||||||
Restructuring costs and other | 3 | 1 | 2 | n/m | ||||||||||||||||||||||
Operating income | 99 | 59 | 40 | 68 | % | |||||||||||||||||||||
Other income, net | 1 | 23 | (22) | (96) | % | |||||||||||||||||||||
Interest expense, net | (14) | (9) | (5) | 56 | % | |||||||||||||||||||||
Income before income taxes | 86 | 73 | 13 | 18 | % | |||||||||||||||||||||
Income tax expense | (20) | (21) | 1 | (5) | % | |||||||||||||||||||||
Net income | $ | 66 | $ | 52 | $ | 14 | 27 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Revenue | $ | 2,471 | $ | 2,287 | $ | 184 | 8 | % | ||||||||||||||||||
Direct operating expense | 2,012 | 1,885 | 127 | 7 | % | |||||||||||||||||||||
Selling, general and administrative expense | 258 | 227 | 31 | 14 | % | |||||||||||||||||||||
Depreciation and amortization expense | 101 | 89 | 12 | 13 | % | |||||||||||||||||||||
Transaction and integration costs | 3 | 14 | (11) | (79) | % | |||||||||||||||||||||
Restructuring costs and other | 7 | — | 7 | n/m | ||||||||||||||||||||||
Operating income | 90 | 72 | 18 | 25 | % | |||||||||||||||||||||
Other income, net | 7 | 17 | (10) | (59) | % | |||||||||||||||||||||
Interest expense, net | (14) | (6) | (8) | n/m | ||||||||||||||||||||||
Income before income taxes | 83 | 83 | — | — | % | |||||||||||||||||||||
Income tax expense | (15) | (19) | 4 | (21) | % | |||||||||||||||||||||
Net income | $ | 68 | $ | 64 | $ | 4 | 6 | % |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | $ Change | % Change | (In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
Net periodic pension income | Net periodic pension income | $ | 2 | $ | 9 | $ | (7) | (78) | % | Net periodic pension income | $ | 2 | $ | 7 | $ | (5) | (71) | % | ||||||||||||||||||||||||||||||||||
Foreign currency: | Foreign currency: | Foreign currency: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Realized foreign currency contracts gain (loss) | Realized foreign currency contracts gain (loss) | (4) | 7 | (11) | n/m | Realized foreign currency contracts gain (loss) | (3) | 10 | (13) | n/m | ||||||||||||||||||||||||||||||||||||||||||
Unrealized foreign currency contracts gain | 3 | 9 | (6) | (67) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency remeasurement loss | — | (2) | 2 | (100) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total foreign currency gain (loss) | (1) | 14 | (15) | n/m | ||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized foreign currency contracts gain (loss) | Unrealized foreign currency contracts gain (loss) | 8 | (1) | 9 | n/m | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency remeasurement gain | Foreign currency remeasurement gain | — | 1 | (1) | (100) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total foreign currency gain | Total foreign currency gain | 5 | 10 | (5) | (50) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Other income, net | Other income, net | $ | 1 | $ | 23 | $ | (22) | (96) | % | Other income, net | $ | 7 | $ | 17 | $ | (10) | (59) | % |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | $ Change | % Change | (In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
Debt and capital leases | Debt and capital leases | $ | 23 | $ | 12 | $ | 11 | 92 | % | Debt and capital leases | $ | 25 | $ | 16 | $ | 9 | 56 | % | ||||||||||||||||||||||||||||||||||
Cross-currency swaps | Cross-currency swaps | (8) | (3) | (5) | n/m | Cross-currency swaps | (9) | (9) | — | — | % | |||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | (1) | — | (1) | n/m | Interest income | (2) | (1) | (1) | 100 | % | |||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | $ | 14 | $ | 9 | $ | 5 | 56 | % | Interest expense, net | $ | 14 | $ | 6 | $ | 8 | n/m |
Six Months Ended June 30, | ||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Revenue | $ | 4,717 | $ | 4,239 | $ | 478 | 11 | % | ||||||||||||||||||
Direct operating expense | 3,863 | 3,523 | 340 | 10 | % | |||||||||||||||||||||
Selling, general and administrative expense | 503 | 410 | 93 | 23 | % | |||||||||||||||||||||
Depreciation and amortization expense | 167 | 153 | 14 | 9 | % | |||||||||||||||||||||
Transaction and integration costs | 19 | 43 | (24) | (56) | % | |||||||||||||||||||||
Restructuring costs and other | 24 | 14 | 10 | 71 | % | |||||||||||||||||||||
Operating income | 141 | 96 | 45 | 47 | % | |||||||||||||||||||||
Other income, net | 1 | 39 | (38) | (97) | % | |||||||||||||||||||||
Interest expense, net | (27) | (13) | (14) | n/m | ||||||||||||||||||||||
Income before income taxes | 115 | 122 | (7) | (6) | % | |||||||||||||||||||||
Income tax expense | (23) | (32) | 9 | (28) | % | |||||||||||||||||||||
Net income | $ | 92 | $ | 90 | $ | 2 | 2 | % |
Nine months ended September 30, | ||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Revenue | $ | 7,188 | $ | 6,526 | $ | 662 | 10 | % | ||||||||||||||||||
Direct operating expense | 5,875 | 5,408 | 467 | 9 | % | |||||||||||||||||||||
Selling, general and administrative expense | 761 | 637 | 124 | 19 | % | |||||||||||||||||||||
Depreciation and amortization expense | 268 | 242 | 26 | 11 | % | |||||||||||||||||||||
Transaction and integration costs | 22 | 57 | (35) | (61) | % | |||||||||||||||||||||
Restructuring costs and other | 31 | 14 | 17 | n/m | ||||||||||||||||||||||
Operating income | 231 | 168 | 63 | 38 | % | |||||||||||||||||||||
Other income, net | 8 | 56 | (48) | (86) | % | |||||||||||||||||||||
Interest expense, net | (41) | (19) | (22) | n/m | ||||||||||||||||||||||
Income before income taxes | 198 | 205 | (7) | (3) | % | |||||||||||||||||||||
Income tax expense | (38) | (51) | 13 | (25) | % | |||||||||||||||||||||
Net income | $ | 160 | $ | 154 | $ | 6 | 4 | % |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | $ Change | % Change | (In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
Net periodic pension income | Net periodic pension income | $ | 4 | $ | 18 | $ | (14) | (78) | % | Net periodic pension income | $ | 6 | $ | 25 | $ | (19) | (76) | % | ||||||||||||||||||||||||||||||||||
Foreign currency: | Foreign currency: | Foreign currency: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Realized foreign currency contracts gain (loss) | Realized foreign currency contracts gain (loss) | (6) | 9 | (15) | n/m | Realized foreign currency contracts gain (loss) | (9) | 19 | (28) | n/m | ||||||||||||||||||||||||||||||||||||||||||
Unrealized foreign currency contracts gain | Unrealized foreign currency contracts gain | 4 | 15 | (11) | (73) | % | Unrealized foreign currency contracts gain | 12 | 14 | (2) | (14) | % | ||||||||||||||||||||||||||||||||||||||||
Foreign currency remeasurement loss | Foreign currency remeasurement loss | (1) | (3) | 2 | (67) | % | Foreign currency remeasurement loss | (1) | (2) | 1 | (50) | % | ||||||||||||||||||||||||||||||||||||||||
Total foreign currency gain (loss) | (3) | 21 | (24) | n/m | ||||||||||||||||||||||||||||||||||||||||||||||||
Total foreign currency gain | Total foreign currency gain | 2 | 31 | (29) | (94) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Other income, net | Other income, net | $ | 1 | $ | 39 | $ | (38) | (97) | % | Other income, net | $ | 8 | $ | 56 | $ | (48) | (86) | % |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | $ Change | % Change | (In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
Debt and capital leases | Debt and capital leases | $ | 47 | $ | 21 | $ | 26 | n/m | Debt and capital leases | $ | 72 | $ | 37 | $ | 35 | 95 | % | |||||||||||||||||||||||||||||||||||
Cross-currency swaps | Cross-currency swaps | (16) | (7) | (9) | n/m | Cross-currency swaps | (25) | (16) | (9) | 56 | % | |||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | (4) | (1) | (3) | n/m | Interest income | (6) | (2) | (4) | n/m | ||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | $ | 27 | $ | 13 | $ | 14 | n/m | Interest expense, net | $ | 41 | $ | 19 | $ | 22 | n/m |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Receivables sold in period | Receivables sold in period | $ | 269 | $ | 228 | $ | 532 | $ | 457 | Receivables sold in period | $ | 288 | $ | 259 | $ | 820 | $ | 716 | ||||||||||||||||||||||||||||||||||
Cash consideration | Cash consideration | 268 | 228 | 529 | 456 | Cash consideration | 286 | 258 | 815 | 714 | ||||||||||||||||||||||||||||||||||||||||||
Net cash used in operating cash flows (1) | — | (8) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating cash flows (1) | Net cash provided by operating cash flows (1) | 27 | 18 | 27 | 16 |
June 30, | December 31, | |||||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Total current assets | $ | 2,306 | $ | 2,428 | $ | (122) | (5) | % | ||||||||||||||||||
Total long-term assets | 6,820 | 6,791 | 29 | — | % | |||||||||||||||||||||
Total current liabilities | 2,403 | 2,532 | (129) | (5) | % | |||||||||||||||||||||
Total long-term liabilities | 3,912 | 4,009 | (97) | (2) | % |
(In millions) | September 30, 2023 | December 31, 2022 | $ Change | % Change | ||||||||||||||||||||||
Current assets | $ | 2,466 | $ | 2,428 | $ | 38 | 2 | % | ||||||||||||||||||
Long-term assets | 6,625 | 6,791 | (166) | (2) | % | |||||||||||||||||||||
Total Assets | $ | 9,091 | $ | 9,219 | $ | (128) | (1) | % | ||||||||||||||||||
Current liabilities | $ | 2,434 | $ | 2,532 | $ | (98) | (4) | % | ||||||||||||||||||
Long-term liabilities | 3,840 | 4,009 | (169) | (4) | % | |||||||||||||||||||||
Total Liabilities | $ | 6,274 | $ | 6,541 | $ | (267) | (4) | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 100 | $ | 200 | $ | (100) | (50) | % | ||||||||||||||||||
Net cash used in investing activities | (140) | (1,003) | 863 | (86) | % | |||||||||||||||||||||
Net cash provided by (used in) financing activities | (155) | 869 | (1,024) | (118) | % | |||||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | 5 | (15) | 20 | n/m | ||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (190) | $ | 51 | $ | (241) | n/m |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 343 | $ | 316 | $ | 27 | 9 | % | ||||||||||||||||||
Net cash used in investing activities | (192) | (1,056) | 864 | (82) | % | |||||||||||||||||||||
Net cash provided by (used in) financing activities | (170) | 863 | (1,033) | n/m | ||||||||||||||||||||||
Effect of exchange rates on cash, restricted cash and cash equivalents | (2) | (22) | 20 | (91) | % | |||||||||||||||||||||
Net (decrease) increase in cash, restricted cash and cash equivalents | $ | (21) | $ | 101 | $ | (122) | (121) | % |
Exhibit Number | Description | |||||||
10.1 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS* | Inline XBRL Instance Document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase. | |||||||
104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. |
GXO Logistics, Inc. | ||||||||
Date: | By: | /s/ Malcolm Wilson | ||||||
Malcolm Wilson | ||||||||
(Chief Executive Officer) | ||||||||
(Principal Executive Officer) | ||||||||
Date: | By: | /s/ Baris Oran | ||||||
Baris Oran | ||||||||
(Chief Financial Officer) | ||||||||
(Principal Financial Officer) |