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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________
FORM 10-Q
_______________________________________________________
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-40470
_______________________________________________________
GXO_rgb_DigitalUse (002).jpg
GXO Logistics, Inc.
(Exact name of registrant as specified in its charter)
____________________________________________________________________________________________________________
Delaware86-2098312
(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)
(203) 489-1287
Registrant’s telephone number, including area code
_______________________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareGXONew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 1, 2024, there were 119,482,559 shares of the registrant’s common stock, par value $0.01 per share, outstanding.





1

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GXO Logistics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in millions, shares in thousands, except per share amounts)2024202320242023
Revenue$3,157 $2,471 $8,459 $7,188 
Direct operating expense2,671 2,012 7,116 5,875 
Selling, general and administrative expense265 258 784 761 
Depreciation and amortization expense111 101 302 268 
Transaction and integration costs21 3 55 22 
Restructuring costs and other9 7 26 31 
Litigation expense(1)— 59 — 
Operating income81 90 117 231 
Other income (expense), net(6)7 1 8 
Interest expense, net(33)(14)(69)(41)
Income before income taxes42 83 49 198 
Income tax expense(7)(15)(11)(38)
Net income35 68 38 160 
Net income attributable to Noncontrolling Interests (“NCI”)(2)(2)(4)(4)
Net income attributable to GXO$33 $66 $34 $156 
Earnings per share
Basic$0.28 $0.55 $0.28 $1.31 
Diluted$0.28 $0.55 $0.28 $1.31 
Weighted-average common shares outstanding
Basic119,461 118,941 119,387 118,883 
Diluted119,793 119,645 119,718 119,430 

See accompanying Notes to Condensed Consolidated Financial Statements.
2

GXO Logistics, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Net income$35 $68 $38 $160 
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments173 (69)145 (39)
Cash flow hedges(4)— (3)1 
Pension plans(6)1 (4)2 
Other comprehensive income (loss), net of tax163 (68)138 (36)
Comprehensive income, net of tax198 — 176 124 
Less: Comprehensive income attributable to NCI3 — 4 3 
Comprehensive income attributable to GXO$195 $— $172 $121 

See accompanying Notes to Condensed Consolidated Financial Statements.
3

GXO Logistics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

September 30,December 31,
(Dollars in millions, shares in thousands, except per share amounts)20242023
ASSETS
Current assets
Cash and cash equivalents$548 $468 
Accounts receivable, net of allowance of $14 and $11
1,968 1,753 
Other current assets443 347 
Total current assets2,959 2,568 
Long-term assets
Property and equipment, net of accumulated depreciation of $1,723 and $1,545
1,161 953 
Operating lease assets2,501 2,201 
Goodwill3,676 2,891 
Intangible assets, net of accumulated amortization of $612 and $528
1,061 567 
Other long-term assets542 327 
Total long-term assets8,941 6,939 
Total assets$11,900 $9,507 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable$748 $709 
Accrued expenses1,411 966 
Current debt223 27 
Current operating lease liabilities681 597 
Other current liabilities369 327 
Total current liabilities3,432 2,626 
Long-term liabilities
Long-term debt2,556 1,620 
Long-term operating lease liabilities2,067 1,842 
Other long-term liabilities704 473 
Total long-term liabilities5,327 3,935 
Commitments and Contingencies (Note 13)
Stockholders’ Equity
Common Stock, $0.01 par value per share; 300,000 shares authorized, 119,472 and 119,057 issued and outstanding
1 1 
Preferred Stock, $0.01 par value per share; 10,000 shares authorized, none issued and outstanding
— — 
Additional Paid-In Capital (“APIC”)2,620 2,598 
Retained earnings586 552 
Accumulated Other Comprehensive Income (Loss) (“AOCIL”)(101)(239)
Total stockholders’ equity before NCI 3,106 2,912 
NCI35 34 
Total equity3,141 2,946 
Total liabilities and equity$11,900 $9,507 

See accompanying Notes to Condensed Consolidated Financial Statements.
4

GXO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Nine Months Ended September 30,
(In millions)20242023
Cash flows from operating activities:
Net income$38 $160 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization expense302 268 
Stock-based compensation expense30 25 
Deferred tax benefit
(37)(29)
Other11 16 
Changes in operating assets and liabilities
Accounts receivable50 (23)
Other assets(21)(39)
Accounts payable(29)(69)
Accrued expenses and other liabilities19 34 
Net cash provided by operating activities363 343 
Cash flows from investing activities:
Capital expenditures(255)(205)
Proceeds from sale of property and equipment16 13 
Acquisition of businesses, net of cash acquired(863)— 
Cross-currency swap agreements settlement(5)— 
Net cash used in investing activities(1,107)(192)
Cash flows from financing activities:
Proceeds from debt, net1,085 — 
Repayments of debt, net(216)(139)
Repayments of finance lease obligations(32)(24)
Taxes paid related to net share settlement of equity awards(8)(7)
Net cash provided by (used in) financing activities829 (170)
Effect of exchange rates on cash and cash equivalents14 (2)
Net increase (decrease) in cash, restricted cash and cash equivalents99 (21)
Cash, restricted cash and cash equivalents, beginning of period470 495 
Cash, restricted cash and cash equivalents, end of period
$569 $474 
Reconciliation of cash, restricted cash and cash equivalents
Cash and cash equivalents$548 $473 
Restricted Cash (included in Other long-term assets)21 1 
Total cash, restricted cash and cash equivalents$569 $474 
    

See accompanying Notes to Condensed Consolidated Financial Statements.
5

GXO Logistics, Inc.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)

Common StockAPICRetained
Earnings		AOCILEquity Before
NCI		NCITotal
Equity
(Shares in thousands,
dollars in millions)		SharesAmount
Balance as of June 30, 2024119,437 $1 $2,610 $553 $(263)$2,901 $32 $2,933 
Net income— — — 33 — 33 2 35 
Other comprehensive Income— — — — 162 162 1 163 
Stock-based compensation— — 11 — — 11 — 11 
Vesting of stock compensation awards61 — — — — — — — 
Tax withholding on vesting of stock-based compensation awards(26)— (1)— — (1)— (1)
Balance as of September 30, 2024119,472 $1 $2,620 $586 $(101)$3,106 $35 $3,141 


Common StockAPICRetained
Earnings		AOCILEquity Before
NCI		NCITotal
Equity
(Shares in thousands,
dollars in millions)		SharesAmount
Balance as of December 31, 2023119,057 $1 $2,598 $552 $(239)$2,912 $34 $2,946 
Net income— — — 34 — 34 4 38 
Other comprehensive Income— — — — 138 138 — 138 
Stock-based compensation— — 30 — — 30 — 30 
Vesting of stock compensation awards570 — — — — — — — 
Tax withholding on vesting of stock-based compensation awards(155)— (8)— — (8)— (8)
Other— — — — — — (3)(3)
Balance as of September 30, 2024119,472 $1 $2,620 $586 $(101)$3,106 $35 $3,141 

See accompanying Notes to Condensed Consolidated Financial Statements.
6

GXO Logistics, Inc.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)


Common StockAPICRetained
Earnings		AOCILEquity Before
NCI		NCITotal
Equity
(Shares in thousands,
dollars in millions)		SharesAmount
Balance as of June 30, 2023118,932 $1 $2,587 $413 $(223)$2,778 $33 $2,811 
Net income— — — 66 — 66 2 68 
Other comprehensive loss— — — — (66)(66)(2)(68)
Stock-based compensation— — 7 — — 7 — 7 
Vesting of stock compensation awards30 — — — — — — — 
Tax withholding on vesting of stock compensation awards(11)— (1)— — (1)— (1)
Balance as of September 30, 2023118,951 $1 $2,593 $479 $(289)$2,784 $33 $2,817 


Common StockAPICRetained
Earnings		AOCILEquity Before
NCI		NCITotal
Equity
(Shares in thousands,
dollars in millions)		SharesAmount
Balance as of December 31, 2022118,728 $1 $2,575 $323 $(254)$2,645 $33 $2,678 
Net income— — — 156 — 156 4 160 
Other comprehensive loss— — — — (35)(35)(1)(36)
Stock-based compensation— — 25 — — 25 — 25 
Vesting of stock compensation awards366 — — — — — — — 
Tax withholding on vesting of stock compensation awards(143)— (7)— — (7)— (7)
Other— — — — — — (3)(3)
Balance as of September 30, 2023118,951 $1 $2,593 $479 $(289)$2,784 $33 $2,817 

See accompanying Notes to Condensed Consolidated Financial Statements.
7

GXO Logistics, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

1. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of GXO Logistics, Inc. (“GXO” or the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included.

Operating results for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Company’s Condensed Consolidated Financial Statements include the accounts of GXO and its majority-owned subsidiaries and variable interest entities of which the Company is the primary beneficiary. The Company has eliminated intercompany accounts and transactions.

The accompanying Condensed Consolidated Financial Statements and Notes thereto should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2023. Certain amounts reported for prior periods have been reclassified to conform to the current period’s presentation.

The Company presents its operations as one reportable segment.

Accounting Pronouncements Issued But Not Yet Adopted

In March 2024, the SEC adopted final rules designed to enhance public company disclosures related to the risks and impacts of climate-related matters. The new rules include disclosures relating to climate-related risks and risk management, as well as the board and management’s governance of such risks. In addition, the rules include requirements to disclose the financial effects of severe weather events and other natural conditions in the audited financial statements. Larger registrants will also be required to disclose information about greenhouse gas emissions, which will be subject to a phased-in assurance requirement. The disclosures are required for annual periods ending December 31, 2025. In April 2024, the SEC issued an order staying the implementation of the new climate-related disclosure rules pending completion of judicial review of consolidated changes to the rules by the U.S. Court of Appeals for the Eighth Circuit. The Company continues to monitor developments and evaluate the potential impact of these rules on its Consolidated Financial Statements.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides for expanded disclosures primarily related to income taxes paid and the rate reconciliation. The amendments are effective for annual periods beginning after December 15, 2024 and early adoption is permitted. The guidance can be applied prospectively or retrospectively. The Company is currently evaluating the impact of this ASU on its Consolidated Financial Statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements and early adoption is permitted. The Company does not expect the adoption of this new standard to impact its Consolidated Financial Statements other than incremental disclosures on its Annual Report on Form 10-K for the year ending December 31, 2024.

8

2. Revenue Recognition

Revenue disaggregated by geographical area was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
United Kingdom$1,525 $958 $3,727 $2,695 
United States771 711 2,249 2,117 
Netherlands242 216 680 610 
France195 207 596 626 
Spain147 133 421 396 
Italy98 97 288 279 
Other179 149 498 465 
Total $3,157 $2,471 $8,459 $7,188 

The Company’s revenue can also be disaggregated by various verticals, reflecting the customer’s principal industry. Revenue disaggregated by industry was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Omnichannel retail$1,479 $1,051 $3,817 $3,041 
Technology and consumer electronics392 360 1,137 1,081 
Food and beverage344 362 986 1,004 
Industrial and manufacturing376 263 973 803 
Consumer packaged goods311 231 896 689 
Other255 204 650 570 
Total $3,157 $2,471 $8,459 $7,188 

Contract Assets and Liabilities

The contract asset and contract liability balances from contracts with customers were as follows:
September 30,December 31,
(In millions)20242023
Contract assets included in:
Other current assets$21 $21 
Other long-term assets187 160 
Total contract assets$208 $181 
Contract liabilities included in:
Other current liabilities$255 $210 
Other long-term liabilities104 115 
Total contract liabilities$359 $325 

9

Revenue recognized included the following:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Amounts included in the beginning of year contract liability balance
$16 $11 $169 $109 

Remaining Performance Obligations

The remaining performance obligations relate to firm customer contracts for which services have not been performed and future revenue recognition is expected. As permitted in determining the remaining performance obligation, the Company omits obligations that have original expected durations of one year or less or contain variable consideration.

As of September 30, 2024, the fixed consideration component of the Company’s remaining performance obligation was approximately $3.9 billion, and the Company expects to recognize approximately 77% of that amount over the next three years and the remainder thereafter. The Company estimates remaining performance obligations at a point in time, and actual amounts may differ from these estimates due to changes in foreign currency exchange rates and contract revisions or terminations.

3. Leases

The Company has operating leases for real estate, warehouse equipment, trucks, trailers, containers and material handling equipment. In addition, the Company has finance leases for warehouse equipment.

The following amounts were recorded in the Condensed Consolidated Balance Sheets related to leases:
September 30,December 31,
(In millions)20242023
Operating leases:
Operating lease assets$2,501 $2,201 
Current operating lease liabilities$681 $597 
Long-term operating lease liabilities2,067 1,842 
Total operating lease liabilities$2,748 $2,439 
Finance leases:
Property and equipment, net$198 $107 
Current debt$37 $26 
Long-term debt205 90 
Total finance lease liabilities$242 $116 
10

The components of lease expense recorded in the Condensed Consolidated Statements of Operations were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Operating leases:
Operating lease cost$239 $163 $616 $561 
Short-term lease cost53 78 153 170 
Variable lease cost27 36 113 93 
Total operating lease cost (1)
$319 $277 $882 $824 
Finance leases:
Amortization of leased assets$10 $10 $24 $23 
Interest expense on lease liabilities3 1 5 3 
Total finance lease cost$13 $11 $29 $26 
Total operating and finance lease cost$332 $288 $911 $850 
(1) Operating lease cost is primarily included in Direct operating expense in the Condensed Consolidated Statements of Operations.

Supplemental cash flow information was as follows:
Nine Months Ended September 30,
(In millions)20242023
Leased assets obtained in exchange for new lease obligations:
Operating leases, including $246 from an acquisition in 2024
$758 $389 
Finance leases, including $36 from an acquisition in 2024
150 8 

4. Acquisitions

Wincanton Acquisition

On February 29, 2024, the Company and the board of directors of Wincanton plc, a logistics company based in Chippenham, United Kingdom (“Wincanton”), reached an agreement on the terms of a cash offer by the Company for the acquisition of the entire issued ordinary share capital of Wincanton (the “Wincanton Acquisition”). Under the terms of the agreement, Wincanton shareholders received 605 pence ($7.64 as of the acquisition date) in cash for each Wincanton share held.

On April 10, 2024, the Wincanton shareholders approved the Wincanton Acquisition and on April 29, 2024, the Company completed the Wincanton Acquisition for total consideration of approximately £762 million ($958 million). The Wincanton Acquisition is subject to a review by the Competition and Markets Authority (the “CMA”) in the U.K. On November 1, 2024, the CMA announced that it intends to refer the Wincanton Acquisition for an in-depth Phase 2 investigation unless acceptable undertakings are agreed between the Company and the CMA by November 15, 2024.

Wincanton is a logistics provider specializing in both warehousing and transportation solutions in the U.K. and Ireland. Wincanton provides services to customers in grocery, retail and manufacturing, consumer goods, ecommerce, healthcare, defense, industrial, and energy industries.

The Company incurred acquisition costs related to the Wincanton Acquisition of $19 million and $45 million for the three and nine months ended September 30, 2024, respectively, which are included in Transaction and integration costs in the Condensed Consolidated Statements of Operations.

11

In connection with the Wincanton Acquisition, (i) the Company entered into a bridge term loan credit agreement (the “Bridge Term Loan”), (ii) the Company entered into a three-year term loan credit agreement (“Three-Year Term Loan due 2027”), and (iii) in April 2024, the Company issued $1.1 billion aggregate principal amount of senior notes (the “Unsecured Notes”). For additional information regarding the financing agreements entered in connection with the Wincanton Acquisition, see Note 6. Debt and Financing Arrangements.

Wincanton’s results of operations are included in the Condensed Consolidated Statements of Operations from the date of acquisition. For the three months ended September 30, 2024, the Company recorded $529 million and $4 million of revenue and loss before income taxes, respectively. For the nine months ended September 30, 2024, the Company recorded $862 million and $1 million of revenue and loss before income taxes, respectively.

The following table summarizes the fair values of assets acquired and liabilities assumed at the acquisition date:
(In millions)
ASSETS
Current assets
Cash and cash equivalents$91 
Accounts receivable259 
Other current assets76 
Total current assets426 
Long-term assets
Property and equipment90 
Operating lease assets246 
Intangible assets (1)
519 
Other long-term assets151 
Total long-term assets1,006 
Total assets $1,432 
LIABILITIES
Current liabilities
Accounts payable$68 
Accrued expenses322 
Current debt13 
Current operating lease liabilities81 
Other current liabilities114 
Total current liabilities
598 
Long-term liabilities
Long-term debt162 
Long-term operating lease liabilities165 
Other long-term liabilities222 
Total long-term liabilities
549 
Total liabilities$1,147 
Net assets purchased$285 
Purchase price (2)
$958 
Goodwill recorded (3)
$673 
(1) The Company acquired $519 million of intangible assets, comprised of customer relationships, trade names, and intellectual property with weighted-average useful lives of 12.5 years.
(2) The Company recorded a realized foreign currency gain of $5 million which represents the change in foreign currency rates from the acquisition date through the settlement date. The gain is included as a component of “Transaction and Integration costs” on the Condensed Consolidated Statements of Operations.
(3) Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed at the acquisition date. Goodwill acquired was recorded in the U.K. and Ireland reporting unit and was primarily attributed to anticipated synergies. The Company does not expect the goodwill recognized in connection with the Wincanton Acquisition to be deductible for income tax purposes.

12

The fair values of the assets acquired and liabilities assumed are considered preliminary and subject to adjustment as additional information is obtained and reviewed. The final allocation of the purchase price may differ from the preliminary allocation based on completion of the valuation. The Company expects to finalize the purchase price allocation within the measurement period, which will not exceed one year from the acquisition date.

The following unaudited pro forma information presents the Company’s results of operations as if the Wincanton Acquisition occurred on January 1, 2023. The pro forma results reflect the impact of incremental interest expense to finance the acquisition and amortization expense on acquired intangible assets. Adjustments have also been made to remove transaction related costs. The unaudited pro forma information is not necessarily indicative of what the results of operations of the combined company would have been had the Wincanton Acquisition been completed as of January 1, 2023.

Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Revenue$3,157 $2,914 $9,033 $8,482 
Income (loss) before income taxes (1)(2)
61 67 (8)135 
(1) Included in the Income (loss) before income taxes on a pro forma basis for the nine months ended September 30, 2024 were long-lived asset impairment charges of $90 million recorded by Wincanton.
(2) Included in the Income (loss) before income taxes on a pro forma basis for the three and nine months ended September 30, 2024 were foreign currency losses of $11 million and $12 million, respectively, compared with foreign currency gains of $5 million and $2 million for the three and nine months ended September 30, 2023, respectively.

PFSweb Acquisition

On September 13, 2023, the Company entered into an Agreement and Plan of Merger to acquire PFSweb, Inc., a Delaware corporation headquartered in Irving, Texas (“PFS”), and on October 23, 2023, the Company completed its acquisition of PFS (the “PFS Acquisition”). The Company acquired the shares of PFS at a price per share of $7.50 in cash, totaling approximately $149 million, net of cash acquired. PFS is a global provider of omnichannel commerce solutions, including a broad range of technology, infrastructure and professional services, in the United States, Canada and Europe. PFS’s service offerings include order fulfillment, fulfillment-as-a-service, order management and customer care.

The Company recorded the fair value of assets acquired and liabilities assumed on the date of acquisition, including intangible assets comprising customer relationships, trademarks, trade names and developed technology of $55 million with a weighted-average amortization period of 13 years. Goodwill acquired in connection with the acquisition was $80 million, recorded in the Americas and Asia-Pacific reporting unit, and was attributed to anticipated synergies. The Company does not expect the goodwill recognized in connection with the PFS Acquisition to be deductible for U.S. income tax purposes.

13

5. Goodwill

The following table presents the changes in Goodwill for the nine months ended September 30, 2024:
(In millions)
Balance as of December 31, 2023
$2,891 
Acquisition (1)
677 
Impact of foreign exchange translation (2)
108 
Balance as of September 30, 2024
$3,676 
(1) Includes $673 million and $4 million for the preliminary purchase price allocation for the Wincanton Acquisition and adjustments to the purchase price allocation for the PFS Acquisition, respectively.
(2) Changes to goodwill amounts resulting from foreign currency translation after the acquisition date are presented as the impact of foreign exchange translation.

As of September 30, 2024 and December 31, 2023, there were no accumulated goodwill impairment losses.

6. Debt and Financing Arrangements

The following table summarizes the carrying value of the Company’s debt:
September 30,December 31,
(In millions, except percentages)
Rate (1)
20242023
Unsecured notes due 2026 (2)
1.65 %$399 $398 
Unsecured notes due 2029 (3)
6.25 %593 — 
Unsecured notes due 2031 (4)
2.65 %397 397 
Unsecured notes due 2034 (5)
6.50 %490 — 
Three-Year Term Loan due 2025 (6)
5.83 %185 235 
Five-Year Term Loan due 2027 (7)(8)
6.20 %399 499 
Finance leases and other debtVarious316 118 
Total debt2,779 1,647 
Less: Current debt223 27 
Total Long-term debt$2,556 $1,620 
(1) Interest rate as of September 30, 2024.
(2) Net of unamortized debt issuance costs of $1 million and $2 million as of September 30, 2024 and December 31, 2023, respectively.
(3) Net of unamortized debt issuance costs of $7 million as of September 30, 2024.
(4) Net of unamortized debt issuance costs of $3 million as of September 30, 2024 and December 31, 2023.
(5) Net of unamortized debt issuance costs of $10 million as of September 30, 2024.
(6) On June 27, 2024, the Company repaid $50 million of the Three-Year Term Loan due 2025.
(7) Net of unamortized debt issuance costs of $1 million as of September 30, 2024 and December 31, 2023.
(8) On May 6, 2024, the Company repaid $100 million of the Five-Year Term Loan due 2027.

Unsecured Notes

On April 25, 2024, the Company entered into an underwriting agreement to issue and sell $1.1 billion of Unsecured Notes, consisting of $600 million in aggregate principal amount of its 6.25% senior notes due 2029 (the “2029 Notes”) and $500 million in aggregate principal amount of its 6.50% senior notes due 2034 (the “2034 Notes,” and together with the 2029 Notes, the ‘‘Unsecured Notes”) in a registered public offering to fund the Wincanton Acquisition. The closing of the sale of the Unsecured Notes occurred on May 6, 2024.

The 2029 Notes bear interest at a rate of 6.25% per annum payable semiannually on May 6 and November 6 of each year, beginning on November 6, 2024, and maturing on May 6, 2029. The 2034 Notes bear interest at a rate of 6.50% per annum payable semiannually on May 6 and November 6 of each year, beginning on November 6, 2024, and maturing on May 6, 2034.

14

Three-Year Term Loan due 2027

On March 29, 2024, the Company entered into a three-year term loan credit agreement with the lenders and other parties from time to time party thereto and Bank of America N.A., as an administrative agent, that provided a three-year multicurrency £250 million unsecured term facility to fund the Wincanton Acquisition. Concurrently with the closing of the Unsecured Notes, the Company terminated the commitments under the Three-Year Term Loan due 2027. No amounts were drawn under the Three-Year Term Loan due 2027.

Bridge Term Loan

On February 29, 2024, the Company entered into a 364-day bridge term loan credit agreement that provided a £763 million unsecured Bridge Term Loan facility to fund the Wincanton Acquisition.

Concurrently with the closing of the Unsecured Notes, the Company terminated the commitments under the Bridge Term Loan. No amounts were drawn under the Bridge Term Loan.

Revolving Credit Facilities

On March 29, 2024, the Company terminated its previous revolving credit agreement expiring in 2026 and entered into a new revolving credit agreement with Bank of America N.A., as administrative agent and an issuing lender (the “Revolving Credit Agreement”). The Revolving Credit Agreement is a five-year unsecured, multicurrency revolving facility expiring in 2029. The aggregate commitment of all lenders under the Revolving Credit Agreement will be equal to $800 million, of which $100 million is available for the issuance of letters of credit.

Loans under the Revolving Credit Agreement will bear interest at a fluctuating rate per annum equal to (a) with respect to borrowings in U.S. Dollars, at the Company’s option the alternate base rate or term Secured Overnight Financing Rate (“SOFR”), (b) with respect to borrowings in Canadian Dollars, term Canadian Overnight Repo Rate Average (“CORRA”), (c) with respect to borrowings in Pounds Sterling, daily simple Sterling Overnight Index Average Rate (“SONIA”) and (d) with respect to borrowings in Euros, Euro Interbank Offered Rate (“EURIBOR”), in each case, plus an applicable margin calculated based on the Company’s credit ratings. No amounts were outstanding under the previous or new revolving credit agreements as of September 30, 2024 or December 31, 2023.

In connection with the Wincanton Acquisition, the Company assumed a revolving credit facility agreement (the “Wincanton Revolving Credit Agreement”) under which it may borrow up to approximately £175 million ($234 million as of September 30, 2024) in aggregate at any time, expiring in March 2027. Loans under the Wincanton Revolving Credit Agreement will bear interest at daily simple SONIA plus a fixed margin. As of September 30, 2024, the Company had £55 million ($74 million) of borrowings outstanding under the Wincanton Revolving Credit Agreement.

Amounts drawn and repaid in 90 days or less under the revolving credit facilities are presented net in the Condensed Consolidated Statements of Cash Flows.

Factoring Programs

The Company sells certain of its trade receivables on a non-recourse basis to third-party financial institutions under various factoring agreements.

15

Information related to the trade receivables sold was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Receivables sold in period$536 $288 $1,191 $820 
Cash consideration533 286 1,182 815 
Net cash provided by operating cash flows
140 27 158 27 

Covenants and Compliance

The covenants for the Company’s debt securities, which are customary for financings of this type, limit the Company’s ability to incur indebtedness and grant liens, among other restrictions. In addition, the facilities require the Company to maintain a consolidated leverage ratio below a specified maximum.

As of September 30, 2024, the Company complied with the covenants contained in its debt and financing arrangements.

7. Fair Value Measurements and Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The levels of inputs used to measure fair value are:

•Level 1—Quoted prices for identical instruments in active markets;
•Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and
•Level 3—Valuations based on inputs that are unobservable, generally utilizing pricing models or other valuation techniques that reflect management’s judgment and estimates.

Assets and Liabilities

The Company bases its fair value estimates on market assumptions and available information. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and current maturities of long-term debt approximated their fair values as of September 30, 2024 and December 31, 2023, due to their short-term nature.

Debt

The fair value of debt was    as follows:
September 30, 2024December 31, 2023
(In millions)LevelFair
 Value		Carrying ValueFair
Value		Carrying Value
Unsecured notes due 20262$380 $399 $362 $398 
Unsecured notes due 20292629 593 — — 
Unsecured notes due 20312338 397 326 397 
Unsecured notes due 20342527 490 — — 
Three-Year Term Loan due 2025
2183 185 231 235 
Five-Year Term Loan due 2027
2396 399 493 499 

16

Financial Instruments

The Company directly manages its exposure to risks arising from business operations and economic factors, including fluctuations in interest rates and foreign currencies. The Company uses derivative instruments to manage the volatility related to these exposures.

The notional amount and fair value of derivative instruments were as follows:
September 30, 2024December 31, 2023Balance Sheet Location
(In millions)
Notional Amount
Fair
Value
Notional Amount
Fair
Value
Derivatives designated as net investment hedges:
Cross-currency swap agreements$— $— $487 $3 Other long-term assets
Cross-currency swap agreements (1)
150 7 165 7 Other current liabilities
Cross-currency swap agreements (2)(3)
1,800 65 883 49 Other long-term liabilities
Foreign currency forward
contracts (4)
111 — — — Other current liabilities
Derivatives designated as cash flow hedge:
Interest rate swaps (5)
$— $— $125 $2 Other current assets
Interest rate swaps
125 2 125 3 Other long-term assets
Interest rate swaps (6)
125 1 — — Other long-term liabilities
Derivatives not designated as hedges:
Foreign currency option contracts$439 $4 $397 $8 Other current assets
Foreign currency option contracts68 2 — — Other long-term assets
Foreign currency option contracts68 — — — Other current liabilities
Foreign currency forward contracts9 — 1 — Other current assets
Foreign currency forward contracts72 2 — — Other current liabilities
(1) In September 2024, a cross-currency swap of the Company with a notional amount of $85 million matured.
(2) In April 2024, the Company amended four cross-currency swaps with an aggregate notional amount of $315 million, scheduled to mature in 2027 and 2028. In May 2024 and in September 2024, the Company entered into cross-currency swaps with an aggregate notional amount of $300 million and $200 million, scheduled to mature in 2029 and 2025, respectively.
(3) In October 2024, the Company amended the rate of two of its cross-currency swap with a notional amount of $200 million.
(4) In September 2024, the Company entered into a foreign currency forward with a notional amount of $111 million, scheduled to mature in 2024.
(5) In June 2024, an interest rate swap of the Company with a notional amount of $125 million matured.
(6) In January 2024, the Company entered into an interest rate swap with a notional amount of $125 million, scheduled to mature in 2025.

As of September 30, 2024 and December 31, 2023, the derivatives were classified as Level 2 within the fair value hierarchy. The derivatives are valued using inputs other than quoted prices such as foreign exchange rates and yield curves.

17

The effect of hedges on AOCIL and in the Condensed Consolidated Statements of Operations was as follows:
Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
(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
Cross-currency swap agreements$(71)$(2)$1 $(24)$— $2 
Derivatives designated as cash flow hedges
Interest rate swaps$(5)$— $— $(4)$— $— 
(1) Amounts reclassified to Net income are reported within Interest expense, net in the Condensed Consolidated Statements of Operations.

Three Months Ended September 30, 2023Nine Months Ended September 30, 2023
(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
Cross-currency swap agreements$36 $(3)$1 $2 $(3)$2 
Derivatives designated as cash flow hedges
Interest rate swaps$1 $— $— $2 $— $— 
(1) Amounts reclassified to Net income are reported within Interest expense, net in the Condensed Consolidated Statements of Operations.

Derivatives Not Designated as Hedges

Gains and losses recognized in Other income, net in the Condensed Consolidated Statements of Operations for foreign currency options and forward contracts were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Realized loss$(4)$(3)$(6)$(9)
Unrealized gain (loss)(8)8 (4)12 
Foreign currency gain (loss)$(12)$5 $(10)$3 

18

8. Earnings per Share

The computations of basic and diluted earnings per share were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in millions, shares in thousands, except per share amounts)
2024202320242023
Net income attributable to common shares
$33 $66 $34 $156 
Basic weighted-average common shares119,461 118,941 119,387 118,883 
Diluted weighted-average common shares
119,793 119,645 119,718 119,430 
Basic earnings per share
$0.28 $0.55 $0.28 $1.31 
Diluted earnings per share
$0.28 $0.55 $0.28 $1.31 
Antidilutive shares excluded from diluted weighted-average common shares
1,138 1,306 1,095 1,576 

9. Stockholders’ Equity

The following tables summarize the changes in AOCIL by component:
Foreign Currency Adjustment
(In millions)Foreign
Currency
Translation
Adjustments		Net Investment HedgesCash
Flow
Hedges		Defined
Benefit
Plans		Less: AOCIL
attributable to
NCI		AOCIL
attributable
to GXO
As of June 30, 2024$(145)$(13)$6 $(111)$— $(263)
Other comprehensive income (loss) before reclassifications227 (71)(5)(7)(1)143 
Amounts reclassified to net income — 1 — — — 1 
Tax amounts— 16 1 1 — 18 
Other comprehensive income (loss), net of tax227 (54)(4)(6)(1)162 
As of September 30, 2024$