GXO Logistics (GXO) 10-Q10 May 232023 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2023	May 08, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40470
Entity Registrant Name	GXO Logistics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-2098312
Entity Address, Address Line One	Two American Lane
Entity Address, City or Town	Greenwich
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06831
City Area Code	203
Local Phone Number	489-1287
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	GXO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		181,072,412
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001852244
Current Fiscal Year End Date	--12-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 2,323	$ 2,083
Direct operating expense	1,906	1,748
Selling, general and administrative expense	258	190
Depreciation and amortization expense	83	76
Transaction and integration costs	13	19
Restructuring costs and other	21	13
Operating income	42	37
Other income, net	0	16
Interest expense, net	(13)	(4)
Income before income taxes	29	49
Income tax expense	(3)	(11)
Net income	26	38
Net income attributable to noncontrolling interests	(1)	(1)
Net income attributable to GXO	$ 25	$ 37
Earnings per share data
Basic (in dollars per share)	$ 0.21	$ 0.32
Diluted (in dollars per share)	$ 0.21	$ 0.32
Weighted-average common shares outstanding
Basic (in shares)	118,781	114,731
Diluted (in shares)	119,231	115,569

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 26	$ 38
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss), net of tax of $3 and $0	13	(45)
Unrealized loss on cash flow hedges, net of tax of $1 and $0	(3)	0
Other comprehensive income (loss), net of tax	10	(45)
Comprehensive income (loss)	36	(7)
Less: Comprehensive income attributable to noncontrolling interest	1	0
Comprehensive income (loss) attributable to GXO	$ 35	$ (7)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Foreign currency translation gain (loss), tax	$ 3	$ 0
Unrealized gain (loss) on financial assets/liabilities designated as hedging instruments, tax	$ 1	$ 0

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 426	$ 495
Accounts receivable, net of allowance of $11 and $12	1,605	1,647
Other current assets	280	286
Total current assets	2,311	2,428
Long-term assets
Property and equipment, net of accumulated depreciation of $1,361 and $1,297	964	960
Operating lease assets	2,168	2,227
Goodwill	2,765	2,728
Intangible assets, net of accumulated amortization of $477 and $456	555	570
Other long-term assets	327	306
Total long-term assets	6,779	6,791
Total assets	9,090	9,219
Current liabilities
Accounts payable	652	717
Accrued expenses	908	995
Current debt	84	67
Current operating lease liabilities	568	560
Other current liabilities	209	193
Total current liabilities	2,421	2,532
Long-term liabilities
Long-term debt	1,697	1,739
Long-term operating lease liabilities	1,800	1,853
Other long-term liabilities	453	417
Total long-term liabilities	3,950	4,009
Commitments and contingencies (Note 11)
Stockholders’ Equity
Common Stock, $0.01 par value per share; 300,000 shares authorized, 118,889 and 118,728 issued and outstanding	1	1
Preferred Stock, $0.01 par value per share; 10,000 shares authorized, none issued and outstanding	0	0
Additional paid-in capital	2,580	2,575
Retained earnings	348	323
Accumulated other comprehensive loss	(244)	(254)
Total stockholders’ equity before noncontrolling interests	2,685	2,645
Noncontrolling interests	34	33
Total equity	2,719	2,678
Total liabilities and equity	$ 9,090	$ 9,219

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 11	$ 12
Property and equipment, accumulated depreciation	1,361	1,297
Identifiable intangible assets, accumulated amortization	$ 477	$ 456
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300,000	300,000
Common stock, shares issued (in shares)	118,889	118,728
Common stock, shares outstanding (in shares)	118,889	118,728
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000	10,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 26	$ 38
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization expense	83	76
Stock-based compensation expense	9	6
Deferred tax expense (benefit)	(7)	3
Other	9	4
Changes in operating assets and liabilities
Accounts receivable	57	(33)
Other assets	11	(7)
Accounts payable	(49)	(39)
Accrued expenses and other liabilities	(100)	(2)
Net cash provided by operating activities	39	46
Cash flows from investing activities:
Capital expenditures	(91)	(65)
Proceeds from sales of property and equipment	9	3
Other	0	18
Net cash used in investing activities	(82)	(44)
Cash flows from financing activities:
Repayments of debt, net	(21)	0
Repayments of finance lease obligations	(8)	(9)
Taxes paid related to stock-based compensation awards	(4)	(11)
Other	4	2
Net cash used in financing activities	(29)	(18)
Effect of exchange rates on cash and cash equivalents	3	(5)
Net decrease in cash and cash equivalents	(69)	(21)
Cash and cash equivalents, beginning of period	495	333
Cash and cash equivalents, end of period	$ 426	$ 312

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Equity Before Noncontrolling Interests	Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2021		114,659,000
Beginning balance at Dec. 31, 2021	$ 2,390	$ 1	$ 2,354	$ 126	$ (130)	$ 2,351	$ 39
Increase (Decrease) in Stockholders' Equity
Net income	38			37		37	1
Other comprehensive income (loss)	(45)				(44)	(44)	(1)
Stock-based compensation	6		6			6
Vesting of stock-based compensation awards (in shares)		318,000
Tax withholding on vesting of stock compensation awards (in shares)		(137,000)
Tax withholding on vesting of stock-based compensation awards	(11)		(11)			(11)
Deconsolidation of variable interest entity	(3)				2	2	(5)
Ending balance (in shares) at Mar. 31, 2022		114,840,000
Ending balance at Mar. 31, 2022	2,375	$ 1	2,349	163	(172)	2,341	34
Beginning balance (in shares) at Dec. 31, 2022		118,728,000
Beginning balance at Dec. 31, 2022	2,678	$ 1	2,575	323	(254)	2,645	33
Increase (Decrease) in Stockholders' Equity
Net income	26			25		25	1
Other comprehensive income (loss)	10				10	10
Stock-based compensation	9		9			9
Vesting of stock-based compensation awards (in shares)		265,000
Tax withholding on vesting of stock compensation awards (in shares)		(104,000)
Tax withholding on vesting of stock-based compensation awards	(4)		(4)			(4)
Ending balance (in shares) at Mar. 31, 2023		118,889,000
Ending balance at Mar. 31, 2023	$ 2,719	$ 1	$ 2,580	$ 348	$ (244)	$ 2,685	$ 34

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
Basis of Presentation and Significant Accounting Policies	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	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 Securities and Exchange Commission (“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 three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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 unaudited 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, 2022 (the “2022 Form 10-K”). The Company presents its operations as one reportable segment. Recently Adopted Accounting Pronouncements In 2020, the Financial Accounting Standards Board (“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 if certain criteria are met. The ASU applies 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. In 2021, the FASB expanded the scope of the guidance to include derivatives. In 2022, the FASB deferred the expiration date for Topic 848 from December 31, 2022, until December 31, 2024. On March 9, 2023, the Company entered into Amendment No. 1 to its revolving credit facility replacing LIBOR-based benchmark rates with SOFR-based benchmark rates and other conforming changes (the “Revolving Credit Facility”). The Company has transitioned its existing contracts to a replacement index. ASU 2020-04 and its amendments did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
Revenue Recognition	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	2. Revenue Recognition Revenue disaggregated by geographical area was as follows: Three Months Ended March 31, (In millions) 2023 2022 United Kingdom $ 844 $ 704 United States 714 681 France 202 176 Netherlands 196 170 Spain 127 120 Italy 88 82 Other 152 150 Total $ 2,323 $ 2,083 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 March 31, (In millions) 2023 2022 Omnichannel retail $ 968 $ 825 Technology and consumer electronics 366 305 Food and beverage 307 338 Industrial and manufacturing 272 263 Consumer packaged goods 253 213 Other 157 139 Total $ 2,323 $ 2,083 Contract Assets and Liabilities Contract assets consist of two components, customer acquisition costs and costs to fulfill a contract. Contract assets are primarily amortized to Direct operating expense in the Condensed Consolidated Statements of Operations over the contract term. Contract liabilities represent the Company’s obligation to transfer services to a customer for which the Company has received consideration or the amount is due from the customer. The contract asset and contract liability balances from contracts with customers were as follows: (In millions) March 31, 2023 December 31, 2022 Contract assets included in: Other current assets $ 13 $ 25 Other long-term assets 163 165 Total contract assets $ 176 $ 190 Contract liabilities included in: Other current liabilities $ 169 $ 154 Other long-term liabilities 126 134 Total contract liabilities $ 295 $ 288 Revenue included the following: Three Months Ended March 31, (In millions) 2023 2022 Amounts included in the beginning-of-year contract liability balance $ 82 $ 63 Remaining Performance Obligations As of March 31, 2023, the fixed consideration component of the Company’s remaining performance obligation was approximately $3.3 billion, and the Company expects to recognize approximately 73% 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.

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2023
Leases [Abstract]
Leases	3. Leases The Company has operating leases primarily for real estate, warehouse equipment, trucks, trailers, containers and material handling equipment. In addition, the Company has finance leases for equipment. The following amounts related to leases were recorded in the Condensed Consolidated Balance Sheets: (In millions) March 31, 2023 December 31, 2022 Operating leases: Operating lease assets $ 2,168 $ 2,227 Current operating lease liabilities $ 568 $ 560 Long-term operating lease liabilities 1,800 1,853 Total operating lease liabilities $ 2,368 $ 2,413 Finance leases: Property and equipment, net $ 125 $ 123 Current debt $ 38 $ 35 Long-term debt 90 97 Total finance lease liabilities $ 128 $ 132 The components of lease expense recorded in the Condensed Consolidated Statements of Operations were as follows: Three Months Ended March 31, (In millions) 2023 2022 Operating leases: Operating lease cost $ 218 $ 169 Short-term lease cost 26 22 Variable lease cost 28 20 Total operating lease cost (1) $ 272 $ 211 Finance leases: Amortization of leases $ 7 $ 7 Interest expense on lease liabilities 1 1 Total finance lease cost $ 8 $ 8 Total operating and finance lease cost $ 280 $ 219 (1) Operating lease cost is primarily included in Direct operating expenses in the Condensed Consolidated Statements of Operations. Supplemental cash flow information was as follows: Three Months Ended March 31, (In millions) 2023 2022 Leased assets obtained in exchange for new operating lease liabilities $ 73 $ 154 Leased assets obtained in exchange for new finance lease liabilities 3 1
Leases	3. Leases The Company has operating leases primarily for real estate, warehouse equipment, trucks, trailers, containers and material handling equipment. In addition, the Company has finance leases for equipment. The following amounts related to leases were recorded in the Condensed Consolidated Balance Sheets: (In millions) March 31, 2023 December 31, 2022 Operating leases: Operating lease assets $ 2,168 $ 2,227 Current operating lease liabilities $ 568 $ 560 Long-term operating lease liabilities 1,800 1,853 Total operating lease liabilities $ 2,368 $ 2,413 Finance leases: Property and equipment, net $ 125 $ 123 Current debt $ 38 $ 35 Long-term debt 90 97 Total finance lease liabilities $ 128 $ 132 The components of lease expense recorded in the Condensed Consolidated Statements of Operations were as follows: Three Months Ended March 31, (In millions) 2023 2022 Operating leases: Operating lease cost $ 218 $ 169 Short-term lease cost 26 22 Variable lease cost 28 20 Total operating lease cost (1) $ 272 $ 211 Finance leases: Amortization of leases $ 7 $ 7 Interest expense on lease liabilities 1 1 Total finance lease cost $ 8 $ 8 Total operating and finance lease cost $ 280 $ 219 (1) Operating lease cost is primarily included in Direct operating expenses in the Condensed Consolidated Statements of Operations. Supplemental cash flow information was as follows: Three Months Ended March 31, (In millions) 2023 2022 Leased assets obtained in exchange for new operating lease liabilities $ 73 $ 154 Leased assets obtained in exchange for new finance lease liabilities 3 1

Debt and Financing Arrangements

Debt and Financing Arrangements	3 Months Ended
Debt and Financing Arrangements	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt and Financing Arrangements	4. Debt and Financing Arrangements The following table summarizes the carrying value of debt: (In millions) Rate (1) March 31, 2023 December 31, 2022 1.65% Unsecured notes due 2026 (2) 1.65% $ 397 $ 397 2.65% Unsecured notes due 2031 (2) 2.65% 397 397 Two-Year Term Loan due 2024 (3) 6.02% 115 115 Three-Year Term Loan due 2025 (4) 6.02% 234 234 Five-Year Term Loan due 2027 (4) 6.14% 499 499 Finance leases and other Various 139 164 Total debt $ 1,781 $ 1,806 Less: Current debt 84 67 Total Long-term debt $ 1,697 $ 1,739 (1) Interest rate as of March 31, 2023. (2) Net of unamortized debt issuance costs of $3 million as of March 31, 2023 and December 31, 2022. (3) As of March 31, 2023, $35 million is classified as current debt as it was repaid on April 7, 2023. (4) Net of unamortized debt issuance costs of $1 million as of March 31, 2023 and December 31, 2022. Factoring Programs The Company sells certain of its trade accounts receivables on a non-recourse basis to third-party financial institutions under various factoring agreements. The Company accounts for these transactions as sales of receivables and presents cash proceeds as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. Information related to the trade receivables sold was as follows: Three Months Ended March 31, (In millions) 2023 2022 Receivables sold in period $ 263 $ 229 Cash consideration 261 228 Net cash provided in operating cash flows (1) — 6 (1) The three months ended March 31, 2022 includes $124 million of cash provided by factoring programs, reduced by $118 million used in the securitization program that was terminated in the first quarter of 2022. Covenants and Compliance The covenants in the unsecured notes, term loans and revolving credit facilities, 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 March 31, 2023, the Company was in compliance with the covenants contained in its debt and financing arrangements.

Fair Value Measurements and Fin

Fair Value Measurements and Financial Instruments	3 Months Ended
Fair Value Measurements and Financial Instruments	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements and Financial Instruments	5. 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 March 31, 2023, and December 31, 2022, due to their short-term nature. Debt The fair value of debt was as follows: March 31, 2023 December 31, 2022 (In millions) Level Fair Value Carrying Value Fair Value Carrying Value 1.65% Unsecured notes due 2026 2 $ 347 $ 397 $ 342 $ 397 2.65% Unsecured notes due 2031 2 312 397 294 397 Two-Year Term Loan due 2024 2 115 115 115 115 Three-Year Term Loan due 2025 2 235 234 234 234 Five-Year Term Loan due 2027 2 500 499 499 499 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 objective of these derivative instruments is to reduce fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. These financial instruments are not used for trading or other speculative purposes. The Company does not expect to incur any losses as a result of counterparty default. The fair value of the Company’s derivative instruments and the related notional amounts were as follows: March 31, 2023 Notional Derivative Assets (1) Derivative Liabilities (2) Designated as hedges Cross-currency swap agreements $ 1,337 $ 22 $ 27 Interest rate swaps 250 6 — Not designated as hedges Foreign currency option contracts $ 241 $ 1 $ 5 Foreign currency forward contracts 44 — — (1) Derivative assets are included in Other current assets and Other long-term assets in the Condensed Consolidated Balance Sheets. (2) Derivative liabilities are included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets. December 31, 2022 Notional Derivative Assets (1) Derivative Liabilities (2) Designated as hedges Cross-currency swap agreements $ 1,337 $ 22 $ 13 Interest rate swaps 250 9 — Not designated as hedges Foreign currency option contracts $ 354 $ — $ 5 Foreign currency forward contracts 3 — — (1) Derivative assets are included in Other current assets and Other long-term assets in the Condensed Consolidated Balance Sheets. (2) Derivative liabilities are included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets. As of March 31, 2023 and December 31, 2022, the derivatives are classified as Level 2 within the fair value hierarchy. The effect of hedges on AOCL and in the Condensed Consolidated Statements of Operations was as follows: Three Months Ended March 31, 2023 (In millions) Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified from AOCL into Net Income (1) Gain (Loss) Recognized in Net Income on Derivatives (Excluded from effectiveness testing) (1) Derivatives designated as net investment hedges Cross-currency swap agreements $ (16) $ (3) $ 1 Derivatives designated as cash flow hedges Interest rate swaps $ (3) $ — $ — (1) Amounts reclassified to net income are reported within Interest expense, net in the Condensed Consolidated Statements of Operations. Three Months Ended March 31, 2022 (In millions) Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified from AOCL into Net Income (1) Gain (Loss) Recognized in Net Income on Derivatives (Excluded from effectiveness testing) (1) Derivatives designated as net investment hedges Cross-currency swap agreements $ 3 $ — $ 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 March 31, (In millions) 2023 2022 Realized gain (loss) $ (2) $ 2 Unrealized gain 1 6 Total gain (loss) $ (1) $ 8

Stockholders' Equity

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2023
Equity [Abstract]
Stockholders' Equity	6. Stockholders’ Equity The following table summarizes the changes in AOCL by component: (In millions) Foreign Cash Defined Less: AOCL AOCL As of December 31, 2022 $ (149) $ 7 $ (112) $ — $ (254) Unrealized gain (loss), net of tax 11 (3) — — 8 Amounts reclassified from AOCL to net income 2 — — — 2 Other comprehensive income (loss), net of tax 13 (3) — — 10 As of March 31, 2023 $ (136) $ 4 $ (112) $ — $ (244) (In millions) Foreign Cash Defined Less: AOCL AOCL As of December 31, 2021 $ (53) $ — $ (76) $ (1) $ (130) Unrealized gain (loss), net of tax (43) — — 1 (42) Amounts reclassified from AOCL to net income (2) — — — (2) Other comprehensive income (loss), net of tax (45) — — 1 (44) Deconsolidation of variable interest entity 4 — (2) 2 As of March 31, 2022 $ (94) $ — $ (76) $ (2) $ (172)

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
Employee Benefit Plans	Mar. 31, 2023
Retirement Benefits [Abstract]
Employee Benefit Plans	7. Employee Benefit Plans Defined Benefit Plans The Company sponsors a retirement plan in the U.K. (the “U.K. Retirement Plan”). Components of the net periodic benefit cost recognized under the U.K. Retirement Plan were as follows: Three Months Ended March 31, (In millions) 2023 2022 Interest cost $ (10) $ (6) Expected return on plan assets 12 15 Net periodic pension income (1) $ 2 $ 9 (1) Net periodic pension income is recorded within Other income, net in the Condensed Consolidated Statements of Operations. The Company also maintains defined benefit pension plans for some of its foreign subsidiaries that are excluded from the disclosure due to their immateriality. Defined Contribution Plans The Company has defined contribution retirement plans for its U.S. employees and employees of certain foreign subsidiaries. The Company’s contributions for the three months ended March 31, 2023 and 2022, were $17 million and $14 million, respectively, and were primarily included in Direct operating expenses in the Condensed Consolidated Statements of Operations.

Restructuring Costs and Other

Restructuring Costs and Other	3 Months Ended
Restructuring Costs and Other	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring Costs and Other	8. Restructuring Costs and Other Restructuring costs are primarily related to severance, including projects to optimize finance, human resource and information technology functions, and are not associated with customer attrition. For the three months ended March 31, 2023, restructuring costs and other totaled $21 million and included severance charges of $15 million and impairment charges of $6 million as a result of closing certain corporate and administrative offices. For the three months ended March 31, 2022, restructuring costs and other totaled $13 million and included severance charges of $5 million and $8 million related to the deconsolidation of a joint venture. The following is a roll forward of the restructuring liability, which is included in Other current liabilities in the Condensed Consolidated Balance Sheets: (In millions) Balance as of December 31, 2022 $ 13 Charges incurred 15 Payments (8) Balance as of March 31, 2023 $ 20 The remaining restructuring liability at March 31, 2023 primarily relates to severance payments and is expected to be substantially paid within the next twelve months.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes The effective tax rate for the first quarter of 2023 was 11.0 percent, a decrease from 22.1 percent in the prior year. The change in our effective tax rate was primarily driven by discrete tax benefits from the release of valuation allowances as it is more likely than not that the deferred income tax assets will be realized.

Acquisition

Acquisition	3 Months Ended
Acquisition	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisition	10. Acquisition On May 24, 2022, the Company completed the acquisition of Clipper Logistics plc (“Clipper”), an omnichannel retail logistics specialist based in Leeds, England (the “Clipper Acquisition”). The Company acquired Clipper for $1,106 million, consisting of $902 million in cash and the issuance of 3,757,657 shares of GXO common stock having a value of $204 million. The Company accounted for the Clipper Acquisition as a business combination using the acquisition method of accounting. The fair value of assets acquired and liabilities assumed was based on management’s estimate of the fair value using valuation techniques including income, cost and market approaches. The following table summarizes the estimated fair value of identifiable assets acquired and liabilities assumed at the acquisition date: (In millions) ASSETS Current assets Cash and cash equivalents $ 26 Accounts receivable 143 Other current assets 67 Total current assets 236 Long-term assets Property and equipment 80 Operating lease assets 219 Intangible assets (1) 392 Other long-term assets 30 Total long-term assets 721 Total assets $ 957 LIABILITIES Current liabilities Accounts payable $ 81 Accrued expenses 97 Current debt 56 Current operating lease liabilities 43 Other current liabilities 50 Total current liabilities 327 Long-term liabilities Long-term debt 10 Long-term operating lease liabilities 175 Other long-term liabilities 161 Total long-term liabilities 346 Total liabilities $ 673 Net assets purchased $ 284 Cash paid $ 902 Common stock issued (2) 204 Purchase price paid $ 1,106 Goodwill recorded (3) $ 822 (1) The Company acquired $392 million of intangible assets comprised of customer relationships and trade names, with weighted-average useful lives of 15 years. (2) Represents the fair value of the Company’s common stock issued. (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 United Kingdom and Ireland reporting unit and was primarily attributed to anticipated synergies. The Company does not expect the goodwill recognized as a part of the acquisition of Clipper to be deductible for income tax purposes. The fair value 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 primary areas of the purchase price allocation that are not yet finalized relate to finalization of income taxes and goodwill.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies The Company is involved, and will continue to be involved, in numerous legal proceedings arising out of the conduct of its business. These proceedings may include personal injury claims arising from the transportation and handling of goods, contractual disputes and employment-related claims, including alleged violations of wage and hour laws. The Company establishes accruals for specific legal proceedings when it is considered probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company reviews and adjusts accruals for loss contingencies quarterly and as additional information becomes available. If a loss is not both probable and reasonably estimable, or if an exposure to loss exists in excess of the amount accrued, the Company assesses whether there is at least a reasonable possibility that a loss, or additional loss, may have been incurred. If there is a reasonable possibility that a loss, or additional loss, may have been incurred, the Company discloses the estimate of the possible loss or range of loss if it is material and an estimate can be made, or discloses that such an estimate cannot be made. The determination as to whether a loss can reasonably be considered to be possible or probable is based on management’s assessment, together with legal counsel, regarding the ultimate outcome of the matter. Management of the Company believes that it has adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable. Management of the Company does not believe that the ultimate resolution of any matters to which the Company is presently a party will have a material adverse effect on its results of operations, financial condition or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Legal costs incurred related to these matters are expensed as incurred. The Company carries liability and excess umbrella insurance policies that are deemed sufficient to cover potential legal claims arising in the normal course of conducting its operations. In the event the Company is required to satisfy a legal claim outside the scope of the coverage provided by insurance, its financial condition, results of operations or cash flows could be negatively impacted.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	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 Securities and Exchange Commission (“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 three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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 unaudited 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, 2022 (the “2022 Form 10-K”).
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In 2020, the Financial Accounting Standards Board (“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 if certain criteria are met. The ASU applies 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. In 2021, the FASB expanded the scope of the guidance to include derivatives. In 2022, the FASB deferred the expiration date for Topic 848 from December 31, 2022, until December 31, 2024. On March 9, 2023, the Company entered into Amendment No. 1 to its revolving credit facility replacing LIBOR-based benchmark rates with SOFR-based benchmark rates and other conforming changes (the “Revolving Credit Facility”). The Company has transitioned its existing contracts to a replacement index. ASU 2020-04 and its amendments did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
Revenue Recognition (Tables)	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue from External Customers by Geographic Areas	Revenue disaggregated by geographical area was as follows: Three Months Ended March 31, (In millions) 2023 2022 United Kingdom $ 844 $ 704 United States 714 681 France 202 176 Netherlands 196 170 Spain 127 120 Italy 88 82 Other 152 150 Total $ 2,323 $ 2,083
Disaggregation of Revenue	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 March 31, (In millions) 2023 2022 Omnichannel retail $ 968 $ 825 Technology and consumer electronics 366 305 Food and beverage 307 338 Industrial and manufacturing 272 263 Consumer packaged goods 253 213 Other 157 139 Total $ 2,323 $ 2,083
Contract with Customer, Contract Asset, Contract Liability, and Receivable	The contract asset and contract liability balances from contracts with customers were as follows: (In millions) March 31, 2023 December 31, 2022 Contract assets included in: Other current assets $ 13 $ 25 Other long-term assets 163 165 Total contract assets $ 176 $ 190 Contract liabilities included in: Other current liabilities $ 169 $ 154 Other long-term liabilities 126 134 Total contract liabilities $ 295 $ 288 Revenue included the following: Three Months Ended March 31, (In millions) 2023 2022 Amounts included in the beginning-of-year contract liability balance $ 82 $ 63

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2023
Leases [Abstract]
Supplemental Balance Sheet Information	The following amounts related to leases were recorded in the Condensed Consolidated Balance Sheets: (In millions) March 31, 2023 December 31, 2022 Operating leases: Operating lease assets $ 2,168 $ 2,227 Current operating lease liabilities $ 568 $ 560 Long-term operating lease liabilities 1,800 1,853 Total operating lease liabilities $ 2,368 $ 2,413 Finance leases: Property and equipment, net $ 125 $ 123 Current debt $ 38 $ 35 Long-term debt 90 97 Total finance lease liabilities $ 128 $ 132
Lease Expenses and Supplemental Cash Flows	The components of lease expense recorded in the Condensed Consolidated Statements of Operations were as follows: Three Months Ended March 31, (In millions) 2023 2022 Operating leases: Operating lease cost $ 218 $ 169 Short-term lease cost 26 22 Variable lease cost 28 20 Total operating lease cost (1) $ 272 $ 211 Finance leases: Amortization of leases $ 7 $ 7 Interest expense on lease liabilities 1 1 Total finance lease cost $ 8 $ 8 Total operating and finance lease cost $ 280 $ 219 (1) Operating lease cost is primarily included in Direct operating expenses in the Condensed Consolidated Statements of Operations. Supplemental cash flow information was as follows: Three Months Ended March 31, (In millions) 2023 2022 Leased assets obtained in exchange for new operating lease liabilities $ 73 $ 154 Leased assets obtained in exchange for new finance lease liabilities 3 1

Debt and Financing Arrangemen_2

Debt and Financing Arrangements (Tables)	3 Months Ended
Debt and Financing Arrangements (Tables)	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Debt	The following table summarizes the carrying value of debt: (In millions) Rate (1) March 31, 2023 December 31, 2022 1.65% Unsecured notes due 2026 (2) 1.65% $ 397 $ 397 2.65% Unsecured notes due 2031 (2) 2.65% 397 397 Two-Year Term Loan due 2024 (3) 6.02% 115 115 Three-Year Term Loan due 2025 (4) 6.02% 234 234 Five-Year Term Loan due 2027 (4) 6.14% 499 499 Finance leases and other Various 139 164 Total debt $ 1,781 $ 1,806 Less: Current debt 84 67 Total Long-term debt $ 1,697 $ 1,739 (1) Interest rate as of March 31, 2023. (2) Net of unamortized debt issuance costs of $3 million as of March 31, 2023 and December 31, 2022. (3) As of March 31, 2023, $35 million is classified as current debt as it was repaid on April 7, 2023. (4) Net of unamortized debt issuance costs of $1 million as of March 31, 2023 and December 31, 2022.
Schedule of Accounts Receivable Securitization and Factoring Programs	Information related to the trade receivables sold was as follows: Three Months Ended March 31, (In millions) 2023 2022 Receivables sold in period $ 263 $ 229 Cash consideration 261 228 Net cash provided in operating cash flows (1) — 6 (1) The three months ended March 31, 2022 includes $124 million of cash provided by factoring programs, reduced by $118 million used in the securitization program that was terminated in the first quarter of 2022.

Fair Value Measurements and F_2

Fair Value Measurements and Financial Instruments (Tables)	3 Months Ended
Fair Value Measurements and Financial Instruments (Tables)	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Debt Fair Values	The fair value of debt was as follows: March 31, 2023 December 31, 2022 (In millions) Level Fair Value Carrying Value Fair Value Carrying Value 1.65% Unsecured notes due 2026 2 $ 347 $ 397 $ 342 $ 397 2.65% Unsecured notes due 2031 2 312 397 294 397 Two-Year Term Loan due 2024 2 115 115 115 115 Three-Year Term Loan due 2025 2 235 234 234 234 Five-Year Term Loan due 2027 2 500 499 499 499
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The fair value of the Company’s derivative instruments and the related notional amounts were as follows: March 31, 2023 Notional Derivative Assets (1) Derivative Liabilities (2) Designated as hedges Cross-currency swap agreements $ 1,337 $ 22 $ 27 Interest rate swaps 250 6 — Not designated as hedges Foreign currency option contracts $ 241 $ 1 $ 5 Foreign currency forward contracts 44 — — (1) Derivative assets are included in Other current assets and Other long-term assets in the Condensed Consolidated Balance Sheets. (2) Derivative liabilities are included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets. December 31, 2022 Notional Derivative Assets (1) Derivative Liabilities (2) Designated as hedges Cross-currency swap agreements $ 1,337 $ 22 $ 13 Interest rate swaps 250 9 — Not designated as hedges Foreign currency option contracts $ 354 $ — $ 5 Foreign currency forward contracts 3 — — (1) Derivative assets are included in Other current assets and Other long-term assets in the Condensed Consolidated Balance Sheets. (2) Derivative liabilities are included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets.
Derivative Instruments, Gain (Loss)	The effect of hedges on AOCL and in the Condensed Consolidated Statements of Operations was as follows: Three Months Ended March 31, 2023 (In millions) Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified from AOCL into Net Income (1) Gain (Loss) Recognized in Net Income on Derivatives (Excluded from effectiveness testing) (1) Derivatives designated as net investment hedges Cross-currency swap agreements $ (16) $ (3) $ 1 Derivatives designated as cash flow hedges Interest rate swaps $ (3) $ — $ — (1) Amounts reclassified to net income are reported within Interest expense, net in the Condensed Consolidated Statements of Operations. Three Months Ended March 31, 2022 (In millions) Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified from AOCL into Net Income (1) Gain (Loss) Recognized in Net Income on Derivatives (Excluded from effectiveness testing) (1) Derivatives designated as net investment hedges Cross-currency swap agreements $ 3 $ — $ 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 March 31, (In millions) 2023 2022 Realized gain (loss) $ (2) $ 2 Unrealized gain 1 6 Total gain (loss) $ (1) $ 8

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
Stockholders' Equity (Tables)	Mar. 31, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table summarizes the changes in AOCL by component: (In millions) Foreign Cash Defined Less: AOCL AOCL As of December 31, 2022 $ (149) $ 7 $ (112) $ — $ (254) Unrealized gain (loss), net of tax 11 (3) — — 8 Amounts reclassified from AOCL to net income 2 — — — 2 Other comprehensive income (loss), net of tax 13 (3) — — 10 As of March 31, 2023 $ (136) $ 4 $ (112) $ — $ (244) (In millions) Foreign Cash Defined Less: AOCL AOCL As of December 31, 2021 $ (53) $ — $ (76) $ (1) $ (130) Unrealized gain (loss), net of tax (43) — — 1 (42) Amounts reclassified from AOCL to net income (2) — — — (2) Other comprehensive income (loss), net of tax (45) — — 1 (44) Deconsolidation of variable interest entity 4 — (2) 2 As of March 31, 2022 $ (94) $ — $ (76) $ (2) $ (172)

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
Employee Benefit Plans (Tables)	Mar. 31, 2023
Retirement Benefits [Abstract]
Schedule of Projected Benefit Obligations	The Company sponsors a retirement plan in the U.K. (the “U.K. Retirement Plan”). Components of the net periodic benefit cost recognized under the U.K. Retirement Plan were as follows: Three Months Ended March 31, (In millions) 2023 2022 Interest cost $ (10) $ (6) Expected return on plan assets 12 15 Net periodic pension income (1) $ 2 $ 9 (1) Net periodic pension income is recorded within Other income, net in the Condensed Consolidated Statements of Operations.

Restructuring Costs and Other (

Restructuring Costs and Other (Tables)	3 Months Ended
Restructuring Costs and Other (Tables)	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following is a roll forward of the restructuring liability, which is included in Other current liabilities in the Condensed Consolidated Balance Sheets: (In millions) Balance as of December 31, 2022 $ 13 Charges incurred 15 Payments (8) Balance as of March 31, 2023 $ 20

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
Acquisition (Tables)	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date	The following table summarizes the estimated fair value of identifiable assets acquired and liabilities assumed at the acquisition date: (In millions) ASSETS Current assets Cash and cash equivalents $ 26 Accounts receivable 143 Other current assets 67 Total current assets 236 Long-term assets Property and equipment 80 Operating lease assets 219 Intangible assets (1) 392 Other long-term assets 30 Total long-term assets 721 Total assets $ 957 LIABILITIES Current liabilities Accounts payable $ 81 Accrued expenses 97 Current debt 56 Current operating lease liabilities 43 Other current liabilities 50 Total current liabilities 327 Long-term liabilities Long-term debt 10 Long-term operating lease liabilities 175 Other long-term liabilities 161 Total long-term liabilities 346 Total liabilities $ 673 Net assets purchased $ 284 Cash paid $ 902 Common stock issued (2) 204 Purchase price paid $ 1,106 Goodwill recorded (3) $ 822 (1) The Company acquired $392 million of intangible assets comprised of customer relationships and trade names, with weighted-average useful lives of 15 years. (2) Represents the fair value of the Company’s common stock issued.

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2023 segment
Accounting Policies [Abstract]
Number of reportable segments	1

Revenue Recognition - Revenue D

Revenue Recognition - Revenue Disaggregated by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue
Revenue	$ 2,323	$ 2,083
United Kingdom
Disaggregation of Revenue
Revenue	844	704
United States
Disaggregation of Revenue
Revenue	714	681
France
Disaggregation of Revenue
Revenue	202	176
Netherlands
Disaggregation of Revenue
Revenue	196	170
Spain
Disaggregation of Revenue
Revenue	127	120
Italy
Disaggregation of Revenue
Revenue	88	82
Other
Disaggregation of Revenue
Revenue	$ 152	$ 150

Revenue Recognition - Revenue_2

Revenue Recognition - Revenue Disaggregated by Industry Sector (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue
Revenue	$ 2,323	$ 2,083
Omnichannel retail
Disaggregation of Revenue
Revenue	968	825
Technology and consumer electronics
Disaggregation of Revenue
Revenue	366	305
Food and beverage
Disaggregation of Revenue
Revenue	307	338
Industrial and manufacturing
Disaggregation of Revenue
Revenue	272	263
Consumer packaged goods
Disaggregation of Revenue
Revenue	253	213
Other
Disaggregation of Revenue
Revenue	$ 157	$ 139

Revenue Recognition - Contract

Revenue Recognition - Contract Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Contract assets included in:
Other current assets	$ 13		$ 25
Other long-term assets	163		165
Contract assets	176		190
Contract liabilities included in:
Other current liabilities	169		154
Other long-term liabilities	126		134
Contract liabilities	295		$ 288
Amounts included in the beginning-of-year contract liability balance	$ 82	$ 63

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) $ in Billions	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation	$ 3.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation percentage	73%
Performance obligations expected to be satisfied, expected timing	3 years

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Operating leases:
Operating lease assets	$ 2,168	$ 2,227
Current operating lease liabilities	568	560
Long-term operating lease liabilities	1,800	1,853
Total operating lease liabilities	2,368	2,413
Finance leases:
Property and equipment, net	125	123
Current debt	38	35
Long-term debt	90	97
Total finance lease liabilities	$ 128	$ 132
Finance Lease, Right-of-Use Asset, Statement of Financial Position	Property and equipment, net of accumulated depreciation of $1,361 and $1,297	Property and equipment, net of accumulated depreciation of $1,361 and $1,297
Finance Lease, Liability, Current, Statement of Financial Position	Current debt	Current debt
Finance Lease, Liability, Noncurrent, Statement of Financial Position	Long-term debt	Long-term debt

Leases - Lease Costs and Supple

Leases - Lease Costs and Supplemental Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 218	$ 169
Short-term lease cost	26	22
Variable lease cost	28	20
Total operating lease cost	272	211
Amortization of leases	7	7
Interest expense on lease liabilities	1	1
Total finance lease cost	8	8
Total operating and finance lease cost	280	219
Leased assets obtained in exchange for new operating lease liabilities	73	154
Leased assets obtained in exchange for new finance lease liabilities	$ 3	$ 1

Debt and Financing Arrangemen_3

Debt and Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions		3 Months Ended
	Apr. 07, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Debt Instrument
Total debt		$ 1,781		$ 1,806
Less: Current debt		84		67
Total Long-term debt		1,697		1,739
Amount repaid		21	$ 0
Finance Leases And Other
Debt Instrument
Total debt		$ 139		164
Unsecured Debt \| Unsecured Notes Due 2026
Debt Instrument
Interest rate (as a percent)		1.65%
Unamortized discount (premium) and debt issuance costs, net		$ 3		3
Unsecured Debt \| Unsecured Notes Due 2026 \| Fair Value, Inputs, Level 2 \| Carrying Value
Debt Instrument
Fair value of debt		$ 397		397
Unsecured Debt \| Unsecured Notes Due 2031
Debt Instrument
Interest rate (as a percent)		2.65%
Unsecured Debt \| Unsecured Notes Due 2031 \| Fair Value, Inputs, Level 2 \| Carrying Value
Debt Instrument
Fair value of debt		$ 397		397
Unsecured Debt \| Two Year Term Loan Due 2024
Debt Instrument
Interest rate (as a percent)		6.02%
Debt term (in years)		2 years
Unsecured Debt \| Two Year Term Loan Due 2024 \| Subsequent Event
Debt Instrument
Amount repaid	$ 35
Unsecured Debt \| Two Year Term Loan Due 2024 \| Fair Value, Inputs, Level 2 \| Carrying Value
Debt Instrument
Fair value of debt		$ 115		115
Unsecured Debt \| Three Year Term Loan Due 2025
Debt Instrument
Interest rate (as a percent)		6.02%
Debt term (in years)		3 years
Unamortized discount (premium) and debt issuance costs, net		$ 1		1
Unsecured Debt \| Three Year Term Loan Due 2025 \| Fair Value, Inputs, Level 2 \| Carrying Value
Debt Instrument
Fair value of debt		$ 234		234
Unsecured Debt \| Five Year Term Loan Due 2027
Debt Instrument
Interest rate (as a percent)		6.14%
Debt term (in years)		5 years
Unsecured Debt \| Five Year Term Loan Due 2027 \| Fair Value, Inputs, Level 2 \| Carrying Value
Debt Instrument
Fair value of debt		$ 499		$ 499

Debt and Financing Arrangemen_4

Debt and Financing Arrangements - Trade Receivables Sold (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Disclosure [Abstract]
Receivables sold in period	$ 263	$ 229
Cash consideration	261	228
Net cash provided in operating cash flows	$ 0	6
Cash provided from factoring programs		124
Cash used in the securitization program		$ 118

Fair Value Measurements and F_3

Fair Value Measurements and Financial Instruments - Fair Value of Debt (Details) - Unsecured Debt - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
1.65% Unsecured notes due 2026
Fair Value Measurement Inputs and Valuation Techniques
Interest rate (as a percent)	1.65%
2.65% Unsecured notes due 2031
Fair Value Measurement Inputs and Valuation Techniques
Interest rate (as a percent)	2.65%
Two Year Term Loan Due 2024
Fair Value Measurement Inputs and Valuation Techniques
Interest rate (as a percent)	6.02%
Debt term (in years)	2 years
Three Year Term Loan Due 2025
Fair Value Measurement Inputs and Valuation Techniques
Interest rate (as a percent)	6.02%
Debt term (in years)	3 years
Five Year Term Loan Due 2027
Fair Value Measurement Inputs and Valuation Techniques
Interest rate (as a percent)	6.14%
Debt term (in years)	5 years
Fair Value \| 1.65% Unsecured notes due 2026 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	$ 347	$ 342
Fair Value \| 2.65% Unsecured notes due 2031 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	312	294
Fair Value \| Two Year Term Loan Due 2024 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	115	115
Fair Value \| Three Year Term Loan Due 2025 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	235	234
Fair Value \| Five Year Term Loan Due 2027 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	500	499
Carrying Value \| 1.65% Unsecured notes due 2026 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	397	397
Carrying Value \| 2.65% Unsecured notes due 2031 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	397	397
Carrying Value \| Two Year Term Loan Due 2024 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	115	115
Carrying Value \| Three Year Term Loan Due 2025 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	234	234
Carrying Value \| Five Year Term Loan Due 2027 \| Fair Value, Inputs, Level 2
Fair Value Measurement Inputs and Valuation Techniques
Fair value of debt	$ 499	$ 499

Fair Value Measurements and F_4

Fair Value Measurements and Financial Instruments - Fair Value by Balance Sheet Location (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Designated as hedges \| Cross-currency swap agreements
Derivatives, Fair Value
Notional	$ 1,337	$ 1,337
Derivative Assets	22	22
Derivative Liabilities	27	13
Designated as hedges \| Interest rate swaps
Derivatives, Fair Value
Notional	250	250
Derivative Assets	6	9
Derivative Liabilities	0	0
Not designated as hedges \| Foreign currency option contracts
Derivatives, Fair Value
Notional	241	354
Derivative Assets	1	0
Derivative Liabilities	5	5
Not designated as hedges \| Foreign currency forward contracts
Derivatives, Fair Value
Notional	44	3
Derivative Assets	0	0
Derivative Liabilities	$ 0	$ 0

Fair Value Measurements and F_5

Fair Value Measurements and Financial Instruments - Derivative and Nonderivative Instruments Designated as Hedges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest rate swaps
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Other Comprehensive Income	$ (3)
Gain or (Loss) Reclassified from AOCI into Net Income	0
Gain or (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing)	0
Foreign Exchange Contract \| Not designated as hedges
Derivative Instruments, Gain (Loss)
Realized gain (loss)	(2)	$ 2
Unrealized gain	1	6
Total gain (loss)	(1)	8
Derivatives designated as cash flow hedges \| Currency Swap
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Other Comprehensive Income	(16)	3
Gain or (Loss) Reclassified from AOCI into Net Income	(3)	0
Gain or (Loss) Recognized in Net Income on Derivative (Excluded from effectiveness testing)	$ 1	$ 2

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended
Stockholders' Equity (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	$ 2,678	$ 2,390
Deconsolidation of variable interest entity		(3)
Ending balance	2,719	2,375
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	(149)	(53)
Unrealized gain (loss), net of tax	11	(43)
Amounts reclassified from AOCL to net income	2	(2)
Other comprehensive income (loss), net of tax	13	(45)
Deconsolidation of variable interest entity		4
Ending balance	(136)	(94)
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	7	0
Unrealized gain (loss), net of tax	(3)	0
Amounts reclassified from AOCL to net income	0	0
Other comprehensive income (loss), net of tax	(3)	0
Deconsolidation of variable interest entity
Ending balance	4	0
Defined Benefit Plan
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	(112)	(76)
Unrealized gain (loss), net of tax	0	0
Amounts reclassified from AOCL to net income	0	0
Other comprehensive income (loss), net of tax	0	0
Deconsolidation of variable interest entity		0
Ending balance	(112)	(76)
Less: AOCL attributable to noncontrolling interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	0	(1)
Unrealized gain (loss), net of tax	0	1
Amounts reclassified from AOCL to net income	0	0
Other comprehensive income (loss), net of tax	0	1
Deconsolidation of variable interest entity		(2)
Ending balance	0	(2)
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	(254)	(130)
Unrealized gain (loss), net of tax	8	(42)
Amounts reclassified from AOCL to net income	2	(2)
Other comprehensive income (loss), net of tax	10	(44)
Deconsolidation of variable interest entity		2
Ending balance	$ (244)	$ (172)

Employee Benefit Plans - Schedu

Employee Benefit Plans - Schedule of Projected Benefit Obligations (Details) - Pension Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Defined Benefit Plan Disclosure
Interest cost	$ (10)	$ (6)
Expected return on plan assets	12	15
Net periodic benefit income	$ 2	$ 9

Employee Benefit Plans - Narrat

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Foreign Plan
Defined Benefit Plan Disclosure
Defined contribution plans	$ 17	$ 14

Restructuring Costs and Other -

Restructuring Costs and Other - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Cost and Reserve
Restructuring costs and other	$ 21	$ 13
Employee Severance
Restructuring Cost and Reserve
Restructuring costs and other	15	5
Facility Closing
Restructuring Cost and Reserve
Restructuring costs and other	$ 6
Deconsolidation Actions
Restructuring Cost and Reserve
Restructuring costs and other		$ 8

Restructuring Costs and Other_2

Restructuring Costs and Other - Restructuring and Related Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Reserve
Charges incurred	$ 21	$ 13
Restructuring Actions
Restructuring Reserve
Restructuring reserve, beginning balance	13
Charges incurred	15
Payments	(8)
Restructuring reserve, ending balance	$ 20

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	11%	22.10%
Valuation allowance for deferred tax assets	$ 39		$ 44

Acquisition - Narrative (Detail

Acquisition - Narrative (Details) - Clipper $ in Millions	May 24, 2022 USD ($) shares
Business Acquisition
Purchase price paid	$ 1,106
Cash paid	$ 902
Common stock issued (in shares) \| shares	3,757,657
Common stock issued	$ 204

Acquisition - Schedule of Fair

Acquisition - Schedule of Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Millions	May 24, 2022	Mar. 31, 2023	Dec. 31, 2022
Long-term liabilities
Goodwill recorded		$ 2,765	$ 2,728
Clipper
Current assets
Cash and cash equivalents	$ 26
Accounts receivable	143
Other current assets	67
Total current assets	236
Long-term assets
Property and equipment	80
Operating lease assets	219
Intangible assets	392
Other long-term assets	30
Total long-term assets	721
Total assets	957
Current liabilities
Accounts payable	81
Accrued expenses	97
Current debt	56
Current operating lease liabilities	43
Other current liabilities	50
Total current liabilities	327
Long-term liabilities
Long-term debt	10
Long-term operating lease liabilities	175
Other long-term liabilities	161
Total long-term liabilities	346
Total liabilities	673
Net assets purchased	284
Cash paid	902
Common stock issued	204
Purchase price paid	1,106
Goodwill recorded	$ 822
Weighted-average amortization period (in years)	15 years