XPO, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>XPO, Inc. has filed its 2023 annual report on Form 10-K, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

XPO, Inc. (XPO) filed a Annual Report (10-K) with the SEC on February 8, 2024. XPO, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at Five American Lane, Greenwich, CT 06831. XPO, Inc. was formerly known as XPO Logistics, Inc. and prior to that, Express-1 Expedited Solutions Inc. and Segmentz Inc. The filing was made on February 8, 2024.

Why It Matters

For investors and stakeholders tracking XPO, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of XPO's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors assessing the company's current standing and future prospects. As a transportation services company, XPO's annual report is vital for understanding industry trends, competitive landscape, and regulatory impacts affecting logistics and supply chain operations.

Risk Assessment

Risk Level: medium — XPO, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual disclosure. However, the transportation industry is subject to various economic and regulatory factors that can impact performance, warranting a medium risk assessment.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand XPO's performance and outlook in the transportation sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period.)
• 2024-02-08 — Filing Date (The date the 10-K was filed with the SEC.)
• 0001166003-24-000022 — Accession Number (Unique identifier for the filing.)
• 001-32172 — SEC File Number (SEC's file number for XPO, Inc.)

Key Players & Entities

• XPO, Inc. (company) — Filer of the 10-K report.
• XPO Logistics, Inc. (company) — Former name of XPO, Inc.
• Express-1 Expedited Solutions Inc. (company) — Previous former name of XPO, Inc.
• Segmentz Inc. (company) — Earlier former name of XPO, Inc.
• Greenwich, CT (location) — Location of XPO, Inc.'s business and mailing address.

Forward-Looking Statements

• XPO, Inc. will continue to operate primarily within the transportation services sector. (XPO, Inc.) — high confidence, target: 2025-12-31
• The company's fiscal year end will remain December 31st for the foreseeable future. (XPO, Inc.) — high confidence, target: 2025-12-31

FAQ

Industry Context

XPO, Inc. operates in the transportation services sector, a critical component of the global supply chain. This sector is influenced by economic activity, fuel costs, and technological advancements.

Regulatory Implications

As a public company in the transportation industry, XPO is subject to regulations from the Securities and Exchange Commission (SEC) and potentially other transportation-specific regulatory bodies.

What Investors Should Do

1. Analyze XPO's financial statements for revenue, net income, and debt levels.
2. Review the Management's Discussion and Analysis (MD&A) for insights into operational performance and strategic initiatives.
3. Examine the risk factors section for potential challenges and mitigation strategies.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-08: Filing Date — Date XPO, Inc. submitted its 10-K to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. Previous filings would provide comparative data.

Key Financial Figures

• $0.001 — ich registered Common stock, par value $0.001 per share XPO New York Stock Exchange
• $59 billion — are of the U.S. market, estimated to be $59 billion in 2022. We provide approximately 31,0

Filing Documents

• xpo-20231231.htm (10-K) — 2750KB
• xpo202310-kexx38.htm (EX-3.8) — 118KB
• xpo202310-kexx45.htm (EX-4.5) — 21KB
• xpo202310-kexx1029.htm (EX-10.29) — 39KB
• xpo202310-kex191.htm (EX-19.1) — 36KB
• xpo202310-kexx21.htm (EX-21) — 7KB
• xpo202310-kexx23.htm (EX-23) — 3KB
• xpo202310-kexx311.htm (EX-31.1) — 8KB
• xpo202310-kexx312.htm (EX-31.2) — 8KB
• xpo202310-kexx321.htm (EX-32.1) — 4KB
• xpo202310-kexx322.htm (EX-32.2) — 4KB
• image_0.jpg (GRAPHIC) — 14KB
• xpo-20231231_g1.jpg (GRAPHIC) — 60KB
• xpo-20231231_g2.jpg (GRAPHIC) — 111KB
• 0001166003-24-000022.txt (&nbsp;) — 15682KB
• xpo-20231231.xsd (EX-101.SCH) — 81KB
• xpo-20231231_cal.xml (EX-101.CAL) — 151KB
• xpo-20231231_def.xml (EX-101.DEF) — 463KB
• xpo-20231231_lab.xml (EX-101.LAB) — 1084KB
• xpo-20231231_pre.xml (EX-101.PRE) — 803KB
• xpo-20231231_htm.xml (XML) — 2780KB

Page No

PART I Page No.

Business

Item 1 Business 4

Risk Factors

Item 1A Risk Factors 15

Unresolved Staff Comments

Item 1B Unresolved Staff Comments 28

Cybersecurity

Item 1C Cybersecurity 29

Properties

Item 2 Properties 30

Legal Proceedings

Item 3 Legal Proceedings 30

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 30 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30

[ Reserved ]

Item 6 [ Reserved ] 31

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

Item 7A Quantitative and Qualitative Disclosures About Market Risk 47

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 49

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 96

Controls and Procedures

Item 9A Controls and Procedures 96

Other Information

Item 9B Other Information 96

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 97 PART III

Directors, Executive Officers and Corporate Governance

Item 10 Directors, Executive Officers and Corporate Governance 98

Executive Compensation

Item 11 Executive Compensation 98

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 98

Certain Relationships and Related Transactions, and Director Independence

Item 13 Certain Relationships and Related Transactions, and Director Independence 98

Principal Accountant Fees and Services

Item 14 Principal Accountant Fees and Services 98 PART IV

Exhibit and Financial Statement Schedules

Item 15 Exhibit and Financial Statement Schedules 99

Form 10-K Summary

Item 16 Form 10-K Summary 106

Signatures

Signatures 107 3 PART I In this Annual Report, "we," "our," "us," "XPO, Inc.," "XPO," and "the Company" refer to XPO, Inc. and its consolidated subsidiaries, unless the context requires otherwise. Cautionary Statement Regarding Forward-Looking Statements This Annual Report and other written reports and oral statements we make from time to time contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target," "trajectory" or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual future results, levels of activity, performance or achievements to be materially different from our expected future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include those discussed below and the risks discussed in the Company's other filings with the Securi

BUSINESS

ITEM 1. BUSINESS Company Overview XPO, Inc., together with its subsidiaries, is a leading provider of freight transportation services, with company-specific avenues for value creation. We use our proprietary technology to move goods efficiently through our customers' supply chains in North America and Europe. As of December 31, 2023, we had approximately 38,000 employees and 596 locations in 17 countries serving approximately 52,000 customers. Our company has two reportable segments: North American Less-Than-Truckload ("LTL"), the largest component of our business, and European Transportation. North American LTL Segment LTL in North America is a bedrock industry providing a critical service to the economy, with favorable pricing dynamics and an established competitive landscape. XPO is one of the largest LTL networks in North America, with approximately 8% share of the U.S. market, estimated to be $59 billion in 2022. We provide approximately 31,000 shippers in North America with critical geographic density and day-definite domestic and cross-border services to approximately 99% of U.S. zip codes, as well as Mexico, Canada and the Caribbean. Our capacity and reach give us the ability to manage large freight volumes efficiently and balance our network to leverage fixed costs. For the full year 2023, our customer-focused organization of truck drivers, service center teams and sales professionals worked together to move approximately 18 billion pounds of freight through our network to its destinations. 4 Importantly, our LTL business historically has generated a high return on invested capital and robust free cash flow. This supports our ongoing investments in our people, network capacity and proprietary technology. We manage the business to specific objectives, such as high customer service scores for on-time delivery and damage-free freight, the optimal sourcing of linehaul transportation, and the expansion of our service center footprint in strategic mark