Segment Reporting | Segment Reporting We are organized into two reportable segments: North American LTL, the largest component of our business, and European Transportation. In our North American LTL segment, we provide shippers with geographic density and day-definite domestic and cross-border services to the U.S., as well as Mexico, Canada and the Caribbean. Our North American LTL segment also includes the results of our trailer manufacturing operations. In our European Transportation segment, we serve an extensive base of customers within the consumer, trade and industrial markets. We offer dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding, warehousing and multimodal solutions, such as road-rail and road-short sea combinations. Corporate includes corporate headquarters costs for executive officers and certain legal and financial functions, and other costs and credits not attributed to our reportable segments. Our chief operating decision maker (“CODM”) regularly reviews financial information at the operating segment level to allocate resources to the segments and to assess their performance. We include items directly attributable to a segment, and those that can be allocated on a reasonable basis, in segment results reported to the CODM. We do not provide asset information by segment to the CODM. Our CODM evaluates segment profit (loss) based on adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which we define as income from continuing operations before debt extinguishment loss, interest expense, income tax provision (benefit), depreciation and amortization expense, transaction and integration costs, restructuring costs and other adjustments. Segment Adjusted EBITDA includes an allocation of corporate costs. Selected financial data for our segments is as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 Revenue North American LTL $ 1,272 $ 1,136 $ 2,493 $ 2,256 European Transportation 808 781 1,605 1,568 Total $ 2,079 $ 1,917 $ 4,097 $ 3,824 Adjusted EBITDA North American LTL $ 297 $ 208 $ 551 $ 390 European Transportation 49 46 87 83 Corporate (3) (10) (8) (19) Total Adjusted EBITDA 343 244 631 454 Less: Debt extinguishment loss — 23 — 23 Interest expense 56 43 114 85 Income tax provision (benefit) (3) 13 20 17 Depreciation and amortization expense 122 107 239 208 Transaction and integration costs (1) 12 17 26 39 Restructuring costs (2) 6 10 14 34 Income from continuing operations $ 150 $ 31 $ 217 $ 48 Depreciation and amortization expense North American LTL $ 86 71 $ 168 $ 139 European Transportation 35 33 70 65 Corporate 1 3 2 4 Total $ 122 $ 107 $ 239 $ 208 (1) Transaction and integration costs for the periods ended June 30, 2024 and June 30, 2023 are primarily comprised of stock-based compensation for certain employees related to strategic initiatives, while the 2023 periods also include retention awards for certain employees related to strategic initiatives. Transaction and integration costs for the three months ended June 30, 2024 and 2023 include $1 million and $0 million, respectively, related to our European Transportation segment, and $11 million and $17 million, respectively, related to Corporate. Transaction and integration costs for the six months ended June 30, 2024 and 2023 include $1 million and $0 million, respectively, related to our North American LTL segment, $1 million and $1 million, respectively, related to our European Transportation segment, and $24 million and $38 million, respectively, related to Corporate. (2) Restructuring costs for the three months ended June 30, 2024 and 2023 include $1 million and $4 million, respectively, related to our North American LTL segment, $3 million and $1 million, respectively, related to our European Transportation segment, and $1 million and $5 million, respectively, related to Corporate. Restructuring costs for the six months ended June 30, 2024 and 2023 include $2 million and $10 million, respectively, related to our North American LTL segment, $11 million and $8 million, respectively, related to our European Transportation segment, and $1 million and $16 million, respectively, related to Corporate. See Note 4— Restructuring Charges for further information on our restructuring actions. |