XML 33 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Revenue Recognition
Adoption of Topic 606, “Revenue from Contracts with Customers”
On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of the adoption date. The Company recorded an immaterial adjustment to opening Retained earnings as of January 1, 2018 for the cumulative impact of adoption related to the recognition of in-transit revenue in its Transportation segment. Results for 2018 are presented under Topic 606, while prior periods were not adjusted and are reported under Topic 605 “Revenue Recognition.” The adoption of Topic 606 did not have a material impact on the Consolidated Financial Statements as of the adoption date or for the year ended December 31, 2018. Under Topic 605, for the Company’s Transportation segment, with the exception of the LTL business, revenue was recognized at the point in time when delivery was complete and the shipping terms of the contract were satisfied.
Disaggregation of Revenues
The Company disaggregates its revenue by geographic area and service offering. The following tables present the Company’s revenue disaggregated by geographical area based on sales office location:
 
 
Year Ended December 31, 2018
(In millions)
 
Transportation
 
Logistics
 
Eliminations
 
Total
Revenue
 
 
 
 
 
 
 
 
United States
 
$
8,055

 
$
2,196

 
$
(19
)
 
$
10,232

North America (excluding United States)
 
274

 
67

 
—

 
341

France
 
1,496

 
687

 
(18
)
 
2,165

United Kingdom
 
704

 
1,436

 
(70
)
 
2,070

Europe (excluding France and United Kingdom)
 
793

 
1,584

 
(18
)
 
2,359

Other
 
21

 
95

 
(4
)
 
112

Total
 
$
11,343

 
$
6,065

 
$
(129
)
 
$
17,279

 
 
Year Ended December 31,
(In millions)
 
2017
 
2016
Revenue
 
 
 
 
United States
 
$
9,163

 
$
8,758

North America (excluding United States)
 
298

 
322

France
 
2,006

 
1,903

United Kingdom
 
1,799

 
1,701

Europe (excluding France and United Kingdom)
 
1,930

 
1,644

Other
 
185

 
291

Total
 
$
15,381

 
$
14,619

The following table presents the Company’s revenue disaggregated by service offering:
(In millions)
 
Year Ended December 31, 2018
Transportation:
 
 
Freight brokerage and truckload
 
$
4,784

LTL
 
4,839

Last mile (1)
 
1,065

Managed transportation
 
462

Global forwarding
 
338

Transportation eliminations
 
(145
)
Total Transportation segment revenue
 
11,343

Total Logistics segment revenue
 
6,065

Intersegment eliminations
 
(129
)
Total revenue
 
$
17,279

(1)
Comprised of the Company’s North American last mile operations.
Contract Balances and Costs
The Company did not have material contract assets, liabilities or costs associated with arrangements with its customers as of December 31, 2018 or December 31, 2017. The Company did not recognize a material amount of revenue during the year ended December 31, 2018 that was deferred as of December 31, 2017. The Company applies the practical expedient in Topic 606 that permits the recognition of incremental costs of obtaining contracts as an expense when incurred, if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in Direct operating expense.
Transaction Price Allocated to Remaining Performance Obligation
On December 31, 2018, the fixed consideration component of the Company’s remaining performance obligation was approximately $1.5 billion, of which the Company expects to recognize approximately 80% over the next three years and the remainder thereafter. Most of the remaining performance obligation relates to the Logistics reportable segment. The Company applies the disclosure exemption in Topic 606 that permits the omission of remaining performance obligations that either: (i) have original expected durations of one year or less, or (ii) contain variable consideration. The Company’s remaining performance obligations related to variable consideration will be satisfied over the remaining tenure of contracts based on the volume of services provided. Remaining performance obligations are estimates made at a point in time and actual amounts may differ from these estimates due to changes in foreign currency exchange rates and contract revisions and terminations.