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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, 2020
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: 001-32172
_______________________________________________________
https://cdn.kscope.io/83ba78132e345be6bd7e39adcf9a42d7-xpo-20200930_g1.jpg
XPO Logistics, Inc.
(Exact name of registrant as specified in its charter)
_______________________________________________________
Delaware03-0450326
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
Five American Lane
Greenwich,CT06831
(Address of principal executive offices)(Zip Code)
(855) 976-6951
(Registrant’s telephone number, including area code)
______________________________________________________________________________________________________________
N/A
______________________________________________________________________________________________________________
(Former name, former address and former fiscal year, if changed since last report)
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 $0.001 per shareXPONew 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 filerAccelerated filerEmerging growth company
Non-accelerated filerSmaller reporting 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 2, 2020, there were 91,415,716 shares of the registrant’s common stock, par value $0.001 per share, outstanding.



XPO Logistics, Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended September 30, 2020
Table of Contents
 
Page No.


Table of Contents
Part I—Financial Information
Item 1. Financial Statements.
XPO Logistics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
September 30,December 31,
(In millions, except per share data)20202019
ASSETS
Current assets
Cash and cash equivalents$2,025 $377 
Accounts receivable, net of allowances of $79 and $58, respectively
2,624 2,500 
Other current assets435 465 
Total current assets5,084 3,342 
Long-term assets
Property and equipment, net of $2,435 and $2,054 in accumulated depreciation, respectively
2,573 2,704 
Operating lease assets2,221 2,245 
Goodwill4,506 4,450 
Identifiable intangible assets, net of $914 and $850 in accumulated amortization, respectively
994 1,092 
Other long-term assets367 295 
Total long-term assets10,661 10,786 
Total assets$15,745 $14,128 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable$1,025 $1,157 
Accrued expenses1,855 1,414 
Short-term borrowings and current maturities of long-term debt130 84 
Short-term operating lease liabilities461 468 
Other current liabilities177 135 
Total current liabilities3,648 3,258 
Long-term liabilities
Long-term debt6,545 5,182 
Deferred tax liability494 495 
Employee benefit obligations157 157 
Long-term operating lease liabilities1,763 1,776 
Other long-term liabilities353 364 
Total long-term liabilities9,312 7,974 
Stockholders’ equity
Convertible perpetual preferred stock, $0.001 par value; 10 shares authorized; 0.07 of Series A shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
41 41 
Common stock, $0.001 par value; 300 shares authorized; 91 and 92 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
  
Additional paid-in capital1,971 2,061 
Retained earnings766 786 
Accumulated other comprehensive loss(129)(145)
Total stockholders’ equity before noncontrolling interests2,649 2,743 
Noncontrolling interests136 153 
Total equity2,785 2,896 
Total liabilities and equity$15,745 $14,128 
See accompanying notes to condensed consolidated financial statements.

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XPO Logistics, Inc.
Condensed Consolidated Statements of Income (Loss)
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(In millions, except per share data)2020201920202019
Revenue$4,221 $4,154 $11,587 $12,512 
Operating expenses
Cost of transportation and services2,038 2,068 5,577 6,272 
Direct operating expense1,461 1,401 4,191 4,224 
Sales, general and administrative expense499 456 1,656 1,397 
Total operating expenses3,998 3,925 11,424 11,893 
Operating income223 229 163 619 
Other income(20)(11)(59)(41)
Foreign currency (gain) loss (5)(5)5 
Debt extinguishment loss   5 
Interest expense86 75 240 218 
Income (loss) before income tax provision (benefit)157 170 (13)432 
Income tax provision (benefit)59 34 (2)99 
Net income (loss)98 136 (11)333 
Net income attributable to noncontrolling interests(5)(6)(4)(21)
Net income (loss) attributable to XPO$93 $130 $(15)$312 
Earnings (loss) per share data
Net income (loss) attributable to common shareholders $84 $117 $(17)$282 
Basic earnings (loss) per share $0.93 $1.27 $(0.18)$2.91 
Diluted earnings (loss) per share $0.83 $1.14 $(0.18)$2.63 
Weighted-average common shares outstanding
Basic weighted-average common shares outstanding91 92 91 97 
Diluted weighted-average common shares outstanding102 102 91 107 
See accompanying notes to condensed consolidated financial statements.

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XPO Logistics, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2020201920202019
Net income (loss)$98 $136 $(11)$333 
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss), net of tax effect of $13, $(11), $6 and $(17)
$71 $(66)$27 $(68)
Unrealized gain (loss) on financial assets/liabilities designated as hedging instruments, net of tax effect of $, $, $ and $
(1) (1)1 
Defined benefit plans adjustments, net of tax effect of $(1), $, $1 and $
(2)(1)(7)(1)
Other comprehensive income (loss)68 (67)19 (68)
Comprehensive income$166 $69 $8 $265 
Less: Comprehensive income (loss) attributable to noncontrolling interests10 (9)7 4 
Comprehensive income attributable to XPO$156 $78 $1 $261 
See accompanying notes to condensed consolidated financial statements.

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XPO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended September 30,
(In millions)20202019
Operating activities
Net income (loss)$(11)$333 
Adjustments to reconcile net income (loss) to net cash from operating activities
Depreciation, amortization and net lease activity572 546 
Stock compensation expense50 48 
Accretion of debt14 16 
Deferred tax expense4 26 
Debt extinguishment loss 5 
Unrealized (gain) loss on foreign currency option and forward contracts(1)5 
Gains on sales of property and equipment(68)(73)
Other46 17 
Changes in assets and liabilities
Accounts receivable(152)(190)
Other assets(52)(12)
Accounts payable(105)(153)
Accrued expenses and other liabilities395 (126)
Net cash provided by operating activities692 442 
Investing activities
Payment for purchases of property and equipment(377)(413)
Proceeds from sale of property and equipment148 192 
Cash collected on deferred purchase price receivable 186 
Other5  
Net cash used in investing activities(224)(35)
Financing activities
Proceeds from issuance of debt1,155 1,751 
Proceeds from borrowings related to securitization program48  
Proceeds from borrowings on ABL facility820 1,690 
Repayment of borrowings on ABL facility(620)(1,690)
Repayment of debt and finance leases(65)(850)
Payment for debt issuance costs(21)(28)
Purchase of noncontrolling interests(21) 
Repurchase of common stock(114)(1,347)
Change in bank overdrafts20 2 
Payment for tax withholdings for restricted shares(21)(11)
Other1 4 
Net cash provided by (used in) financing activities1,182 (479)
Effect of exchange rates on cash, cash equivalents and restricted cash(2)(7)
Net increase (decrease) in cash, cash equivalents and restricted cash1,648 (79)
Cash, cash equivalents and restricted cash, beginning of period387 514 
Cash, cash equivalents and restricted cash, end of period$2,035 $435 
Supplemental disclosure of cash flow information
Leased assets obtained in exchange for new operating lease liabilities$481 $559 
Leased assets obtained in exchange for new finance lease liabilities32 35 
Cash paid for interest215 202 
Cash paid for income taxes20 89 
See accompanying notes to condensed consolidated financial statements.
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XPO Logistics, Inc.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Series A Preferred StockCommon Stock 
(Shares in thousands, dollars in millions)SharesAmountSharesAmountAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal XPO Stockholders' EquityNon-controlling InterestsTotal Equity
Balance as of June 30, 202072 $41 91,322 $ $1,963 $672 $(192)$2,484 $150 $2,634 
Net income— — — — — 93 — 93 5 98 
Other comprehensive income
— — — — — — 63 63 5 68 
Exercise and vesting of stock compensation awards
— — 39 — — — — — —  
Tax withholdings related to vesting of stock compensation awards
— — — — (3)— — (3)— (3)
Purchase of noncontrolling interests— — — — (1)— — (1)(20)(21)
Dividend declared
— — — — — — — — (4)(4)
Stock compensation expense
— — — — 10 — — 10 — 10 
Other
— — — — 2 1 — 3 — 3 
Balance as of September 30, 202072 $41 91,361 $ $1,971 $766 $(129)$2,649 $136 $2,785 

Series A Preferred StockCommon Stock 
(Shares in thousands, dollars in millions)SharesAmountSharesAmountAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal XPO Stockholders' EquityNon-controlling InterestsTotal Equity
Balance as of December 31, 201972 $41 92,342 $ $2,061 $786 $(145)$2,743 $153 $2,896 
Net (income) loss— — — — — (15)— (15)4 (11)
Other comprehensive income— — — — — — 16 16 3 19 
Exercise and vesting of stock compensation awards
— — 672 — — — — — —  
Tax withholdings related to vesting of stock compensation awards
— — — — (21)— — (21)— (21)
Purchase of noncontrolling interests— — — — (1)— — (1)(20)(21)
Retirement of common stock
— — (1,715)— (114)— — (114)— (114)
Dividend declared
— — — — — (2)— (2)(4)(6)
Stock compensation expense
— — — — 42 — — 42 — 42 
Adoption of new accounting standard and other
— — 62 — 4 (3)— 1 — 1 
Balance as of September 30, 202072 $41 91,361 $ $1,971 $766 $(129)$2,649 $136 $2,785 

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XPO Logistics, Inc.
Condensed Consolidated Statements of Changes in Equity (continued)
(Unaudited)
Series A Preferred StockCommon Stock
(Shares in thousands, dollars in millions)SharesAmountSharesAmountAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal XPO Stockholders' EquityNon-controlling InterestsTotal Equity
Balance as of June 30, 201972 $41 91,992 $ $2,054 $563 $(153)$2,505 $407 $2,912 
Net income
— — — — — 130 — 130 6 136 
Other comprehensive loss
— — — — — — (52)(52)(15)(67)
Exercise and vesting of stock compensation awards
— — 242 — — — — — —  
Tax withholdings related to vesting of stock compensation awards
— — — — (7)— — (7)— (7)
Dividend declared
— — — — — (1)— (1)(3)(4)
Stock compensation expense
— — — — 8 — — 8 — 8 
Other
— — — — 1 (12)— (11)(2)(13)
Balance as of September 30, 201972 $41 92,234 $ $2,056 $680 $(205)$2,572 $393 $2,965 
Series A Preferred StockCommon Stock
(Shares in thousands, dollars in millions)SharesAmountSharesAmountAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal XPO Stockholders' EquityNon-controlling InterestsTotal Equity
Balance as of December 31, 201872 $41 115,683 $ $3,311 $377 $(154)$3,575 $395 $3,970 
Net income
— — — — — 312 — 312 21 333 
Other comprehensive loss
— — — — — — (51)(51)(17)(68)
Exercise and vesting of stock compensation awards
— — 423 — — — — — —  
Tax withholdings related to vesting of stock compensation awards
— — — — (11)— — (11)— (11)
Retirement of common stock
— — (23,932)— (1,275)— — (1,275)— (1,275)
Dividend declared
— — — — — (2)— (2)(4)(6)
Stock compensation expense
— — — — 27 — — 27 — 27 
Adoption of new accounting standard and other
— — 60 — 4 (7)— (3)(2)(5)
Balance as of September 30, 201972 $41 92,234 $ $2,056 $680 $(205)$2,572 $393 $2,965 
See accompanying notes to condensed consolidated financial statements.
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XPO Logistics, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. Organization, Description of Business and Basis of Presentation
XPO Logistics, Inc., together with its subsidiaries (“XPO” or “we”), is a top ten global provider of cutting-edge supply chain solutions to the most successful companies in the world. We use our integrated network of people, technology and physical assets to help customers manage their goods most efficiently throughout their supply chains. Our customers are multinational, national, mid-size and small enterprises. We run our business on a global basis, with two reportable segments: Transportation and Logistics. See Note 2—Segment Reporting for further information on our operations.
We prepared our Condensed Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and on the same basis as the accounting policies described in our annual report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”), except for the effects of adopting Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” as of January 1, 2020, as described below. The interim reporting requirements of Form 10-Q allow certain information and note disclosures normally included in annual consolidated financial statements to be condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the 2019 Form 10-K.
We have a controlling financial interest in entities generally when we own a majority of the voting interest. The noncontrolling interests reflected in our consolidated financial statements primarily relate to a minority interest in XPO Logistics Europe SA (“XPO Logistics Europe”), formerly known as Norbert Dentressangle SA, a business we acquired in 2015. In July 2020, we purchased a shareholder’s noncontrolling interest in XPO Logistics Europe for €17 million (approximately $20 million). Following this acquisition, the noncontrolling interest was reduced to approximately 4% of XPO Logistics Europe.
The Condensed Consolidated Financial Statements are not audited but reflect all adjustments that are of a normal recurring nature and are necessary for a fair presentation of financial condition, operating results and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020, particularly in light of the outbreak of a strain of coronavirus, COVID-19, in the first quarter of 2020. The rapid escalation of COVID-19 into a pandemic in the first quarter of 2020 has affected, and will continue to affect, economic activity broadly and customer sectors served by our industry. COVID-19 has had, and we expect will continue to have, significant effects on economic activity, on demand for our services, and on our results of operations in 2020.
Restricted Cash
As of September 30, 2020 and December 31, 2019, our restricted cash included in Other long-term assets on our Condensed Consolidated Balance Sheets was $10 million.
Accounts Receivable and Allowance for Doubtful Accounts
We record accounts receivable at the contractual amount and we record an allowance for doubtful accounts for the amount we estimate we may not collect. In determining the allowance for doubtful accounts, we consider historical collection experience, the age of the accounts receivable balances, the credit quality and risk of our customers, any specific customer collection issues, current economic conditions, and other factors that may impact our customers’ ability to pay. Commencing in the first quarter of 2020 and in accordance with ASU 2016-13, we also consider reasonable and supportable forecasts of future economic conditions and their expected impact on customer collections in determining our allowance for doubtful accounts. We write off accounts receivable balances once the receivables are no longer deemed collectible.

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Trade Receivables Securitization and Factoring Programs
We sell certain of our trade accounts receivable on a non-recourse basis to third-party financial institutions under factoring agreements. We account for these transactions as sales of receivables and present cash proceeds as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. We also sell trade accounts receivable under a securitization program described below. We use trade receivables securitization and factoring programs to help manage our cash flows and offset the impact of extended payment terms for some of our customers.
XPO Logistics Europe, one of our majority-owned subsidiaries, participates in a trade receivables securitization program co-arranged by three European banks (the “Purchasers”). Under the program, a wholly-owned bankruptcy-remote special purpose entity of XPO Logistics Europe sells trade receivables that originate with wholly-owned subsidiaries of XPO Logistics Europe in the United Kingdom and France to unaffiliated entities managed by the Purchasers. The special purpose entity is a variable interest entity and is consolidated by XPO based on our control of the entity’s activities.
We account for transfers under our securitization and factoring arrangements as sales because we sell full title and ownership in the underlying receivables and control of the receivables is considered transferred. For these transfers, the receivables are removed from our Condensed Consolidated Balance Sheets at the date of transfer. In the securitization and factoring arrangements, any continuing involvement with the receivables is limited to servicing the receivables. The fair value of any servicing assets and liabilities is immaterial. Our trade receivables securitization program permits us to borrow, on an unsecured basis, cash collected in a servicing capacity on previously sold receivables, which we report within short-term debt on our Condensed Consolidated Balance Sheets. These borrowings amounted to €43 million ($50 million) as of September 30, 2020. See Note 6—Debt for additional information on these borrowings.
Under a securitization program that was terminated in July 2019, if transfers were accounted for as sales, the consideration received included a simultaneous cash payment and a deferred purchase price receivable. The deferred purchase price receivable was not a trade receivable and was recorded based on its fair value and reported within Other current assets on our Condensed Consolidated Balance Sheets. The cash payment which we received on the date of the transfer was reflected within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows. As we received cash payments on the deferred purchase price receivable, it was reflected as an investing activity. The new program does not include a deferred purchase price mechanism.
The maximum amount of net cash proceeds available at any one time under the current securitization program is €400 million (approximately $469 million as of September 30, 2020), and this amount includes any unsecured borrowings related to the program. As of September 30, 2020, €294 million (approximately $345 million) of capacity was utilized under the program and €106 million (approximately $124 million) was available to us. The weighted average interest rate was 0.64% as of September 30, 2020. Charges for commitment fees, which are based on a percentage of available amounts, and charges for administrative fees were not material to our results of operations for the three and nine months ended September 30, 2020 and 2019. The securitization program expires in July 2022 and contains financial covenants customary for this type of arrangement, including maintaining a defined average days sales outstanding ratio.

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Information related to the trade receivables sold was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2020201920202019
Securitization programs
Receivables sold in period
$750 $790 $2,039 $1,451 
Cash consideration
750 787 2,039 1,316 
Deferred purchase price
 3  135 
Factoring programs
Receivables sold in period
$112 $196 $575 $615 
Cash consideration
112 195 574 612 
In addition to the cash considerations referenced above, we received $49 million and $186 million in the three and nine months ended September 30, 2019, respectively, for the realization of cash on the deferred purchase price receivable for our prior securitization program.
Acquisition
In March 2020, XPO Logistics Europe announced that it had entered into a definitive agreement to acquire the majority of Kuehne + Nagel’s contract logistics operations in the United Kingdom. The operations provide a range of logistics services, including inbound and outbound distribution, reverse logistics management and inventory management, and generated annual revenues in 2019 of approximately £500 million ($639 million). The transaction is subject to customary closing conditions and is currently being reviewed by the UK Competition and Markets Authority (the “CMA”). The deadline for a phase 1 decision from the CMA is November 20, 2020. The transaction is not expected to be material to our 2020 operating results.
Fair Value Measurements
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.
We base our 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, 2020 and December 31, 2019 due to their short-term nature and/or being receivable or payable on demand. The Level 1 cash equivalents included money market funds valued using quoted prices in active markets. The Level 2 cash equivalents included short-term investments valued using published interest rates for instruments with similar terms and maturities. For information on the fair value hierarchy of our derivative instruments, see Note 5—Derivative Instruments and for information on financial liabilities, see Note 6—Debt.
The fair value hierarchy of cash equivalents was as follows:
(In millions)Carrying ValueFair ValueLevel 1Level 2
September 30, 2020$1,657 $1,657 $1,657 $ 
December 31, 2019144 144 127 17 

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Cash equivalents at September 30, 2020 include a portion of the net proceeds from the issuance of senior notes due 2025 (the “Senior Notes due 2025”) which were invested in money market funds. For further information, see Note 6—Debt.
Adoption of New Accounting Standards
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU, as subsequently modified, amends the incurred losses impairment method with a method that reflects expected credit losses on certain types of financial instruments, including trade receivables. We adopted this standard on January 1, 2020 and recorded an immaterial adjustment to total equity for the cumulative impact of adoption.
In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Under the guidance, any capitalized implementation costs would be included in prepaid expenses, amortized over the term of the hosting arrangement on a straight-line basis and presented in the same line items in the Consolidated Statement of Income as the expense for fees of the associated hosting arrangements. We adopted this standard on January 1, 2020 on a prospective basis. The adoption did not have a material effect on our consolidated financial statements.
Accounting Pronouncements Issued but Not Yet Effective
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): “Simplifying the Accounting for Income Taxes.” The ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to enhance consistency and comparability among reporting entities. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within that reporting period; however, early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, Reference rate reform (Topic 848)—“Facilitation of the effects of reference rate reform on financial reporting.” The ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The amendments are elective and are effective upon issuance through December 31, 2022. We are currently evaluating the impact of the new guidance.
2. Segment Reporting
We are organized into two reportable segments: Transportation and Logistics. We evaluate our performance in large part based on the various financial measures of our two reporting segments.
In our Transportation segment, we provide multiple services to facilitate the movement of raw materials, parts and finished goods. We accomplish this by using our proprietary technology, third-party independent carriers and our transportation assets and service centers. Our transportation services include truck brokerage, less-than-truckload (“LTL”), truckload, expedite, last mile, intermodal and drayage, managed transportation, and global forwarding. Freight brokerage, last mile, global forwarding and managed transportation are non-asset or asset-light businesses while LTL and truckload are primarily asset-based operations.
In our Logistics segment, which we also refer to as supply chain or contract logistics, we provide a wide range of services differentiated by our proprietary technology and our ability to customize solutions for individual customers. Our services include value-added warehousing and distribution, e-commerce and omnichannel fulfillment, cold-chain logistics, packaging and labeling, factory support, aftermarket support, inventory management, order personalization and supply chain optimization, such as product flow management. In addition, our Logistics segment provides reverse logistics, which is also called returns management.

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Some of our operating units provide services to our other operating units outside of their reportable segment. Billings for such services are based on negotiated rates and are reflected as revenues of the billing segment. We adjust these rates from time to time based on market conditions. We eliminate intersegment revenues and expenses in our consolidated results.
Corporate includes corporate headquarters costs for executive officers and certain legal and financial functions, and other costs and credits not attributed to our reporting segments.
Our chief operating decision maker (“CODM”) regularly reviews financial information at the reporting 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.
Selected financial data for our segments is as follows:
(In millions)TransportationLogisticsCorporateEliminations/OtherTotal
Three months ended September 30, 2020
Revenue$