GXO Logistics, Inc.GXO

GXO Logistics, Inc. Segments Disclosure

10-KFiled Feb 25, 20262 min read
4. Segment Information

The Company is organized geographically into three operating segments: i) Americas and Asia-Pacific, ii) United Kingdom and Ireland, and iii) Continental Europe. The Company’s reporting unit results are regularly provided to the chief operating decision maker (“CODM”). The CODM is our Chief Executive Officer, who assesses the Company’s performance and allocates resources.

The CODM evaluates the Company’s performance and allocates resources primarily based on adjusted earnings before interest, taxes, depreciation and amortization, adjusted for transaction and integration costs, restructuring costs and other, regulatory matter and litigation expense, net loss on divestiture of business, and unrealized gain/loss on foreign currency contracts (“Adjusted EBITDA”). The CODM uses Adjusted EBITDA to communicate performance targets to the segment managers, allocate resources to the segments, and to monitor segment performance. Additionally, the CODM considers the performance of this measure against planned and forecasted amounts to make investing and resource allocation decisions. The actual results are used in assessing performance of the Company and in establishing management’s compensation.

For disclosure purposes, we aggregate these three operating segments into one reportable segment due to the similar nature of their operations and economic characteristics.

The Company’s segment results were as follows:
Year Ended December 31,
(In millions)202520242023
Revenue$13,178 $11,709 $9,778 
Direct operating expense11,190 9,853 8,035 
Selling, general and administrative expense(1)
1,029 996 931 
Other (income) expense, net(2)(4)
1 (20)4 
Segment Adjusted EBITDA$958 $880 $808 
Less:
Corporate expenses(3)
77 65 67 
Depreciation expense338 307 290 
Amortization of intangible assets acquired119 108 71 
Transaction and integration costs54 76 34 
Restructuring costs and other27 25 25 
Regulatory matter and litigation expense65 59 — 
Net loss on divestiture of business
34 2 7 
Unrealized (gain) loss on foreign currency contracts(4)
7 (11)(5)
Interest expense, net133 103 53 
Income before income taxes104 146 266 
Income tax expense(68)(8)(33)
Net income$36 $138 $233 
(1) Excludes unallocated corporate expenses.
(2) Other (income) expense, net excluding unrealized (gain) loss on foreign currency contracts.
(3) Corporate expenses include unallocated costs related to corporate functions such as salaries and benefits, rent, and professional fees which are recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations.
(4) Included in Other income/expense, net in the Consolidated Statements of Operations.
Long-lived assets geographic information

The Company’s long-lived assets for this disclosure are defined as Property and equipment, net of accumulated depreciation, plus operating lease assets. The Company’s long-lived assets by geographic region were as follows:
December 31,
(In millions)20252024
United States$1,278 $1,498 
Europe(1)
1,198 939 
United Kingdom1,190 1,006 
Other(2)
48 46 
Total$3,714 $3,489 
(1) Europe exclusive of the United Kingdom.
(2) Includes Asia, Latin America and Canada.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 18, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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