Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Allowance for Doubtful Accounts Rollforward

The roll-forward of the allowance for doubtful accounts was as follows:

	Years Ended December 31,
(In millions)	2019			2018			2017
Beginning balance	$	52		$	42		$	26
Provision charged to expense	34			36			24
Write-offs, less recoveries, and other adjustments	(28		)	(26		)	(8		)
Ending balance	$	58		$	52		$	42

Schedule of Accounts Receivable Securitization and Factoring Programs

Information related to the trade receivables sold was as follows:

	Years Ended December 31,
(In millions)	2019		2018		2017
Securitization programs
Receivables sold in period	$	2,231	$	231	$	—
Cash consideration	2,095		179		—
Deferred purchase price	135		52		—
Factoring programs
Receivables sold in period	858		663		119
Cash consideration	854		660		119

Estimated Useful Lives of Assets

epreciation expense on a straight-line basis over the estimated useful lives of the assets as follows:

Classification	Estimated Useful Life
Buildings and leasehold improvements	Term of lease to 40 years
Vehicles, containers, tractors, trailers and tankers	3 to 14 years
Rail cars and chassis	15 to 30 years
Machinery and equipment	3 to 15 years
Computer software and equipment	1 to 6 years

Schedule of Estimated Useful Lives of Intangible Assets

The range of estimated useful lives by type are as follows:

Classification	Estimated Useful Life
Customer relationships	5 to 16 years
Non-compete agreements	Term of agreement

Schedule of Accrued Expenses

Accrued Expenses

	As of December 31,
(In millions)	2019		2018
Accrued salaries and wages	$	478	$	539
Accrued transportation and facility charges	454		462
Accrued value-added tax and other taxes	163		172
Other accrued expenses	319		307
Total accrued expenses	$	1,414	$	1,480

Schedule of Accumulated Other Comprehensive Income

The components of and changes in accumulated other comprehensive income (loss) (“AOCI”), net of tax for the years ended December 31, 2019 and 2018, are as follows:

(In millions)	Foreign Currency Translation Adjustments			Derivative Hedges			Defined Benefit Plans Liability			Less: AOCI Attributable to Noncontrolling Interests			AOCI Attributable to XPO
As of December 31, 2017	$	(43	)	$	7		$	79		$	(27	)	$	16
Other comprehensive (loss) income	(96		)	12			(89		)	27			(146		)
Amounts reclassified from AOCI	(4		)	(18		)	(2		)	—			(24		)
Net current period other comprehensive loss	(100		)	(6		)	(91		)	27			(170		)
As of December 31, 2018	(143		)	1			(12		)	—			(154		)
Other comprehensive income (loss)	33			10			(18		)	1			26
Amounts reclassified from AOCI	(10		)	(6		)	(1		)	—			(17		)
Net current period other comprehensive income (loss)	23			4			(19		)	1			9
As of December 31, 2019	$	(120	)	$	5		$	(31	)	$	1		$	(145	)

Schedule of Foreign Exchange Contracts, Statement of Operations

Foreign currency loss included on our Consolidated Statements of Income consisted of the following:

	Years Ended December 31,
(In millions)	2019		2018			2017
Unrealized foreign currency option and forward contracts losses (gains)	$	9	$	(20	)	$	49
Realized foreign currency option and forward contracts losses	—		16			15
Foreign currency transaction and remeasurement losses (gains)	—		7			(6		)
Total foreign currency loss	$	9	$	3		$	58

Summary of Fair Value Hierarchy of Cash Equivalents

The fair value hierarchy of cash equivalents was as follows:

	As of December 31, 2019
(In millions)	Carrying Value		Fair Value		Level 1		Level 2
Cash equivalents	$	144	$	144	$	127	$	17
	As of December 31, 2018
(In millions)	Carrying Value		Fair Value		Level 1		Level 2
Cash equivalents	$	237	$	237	$	236	$	1

The fair value of our debt and classification in the fair value hierarchy was as follows:

(In millions)	Fair Value		Level 1		Level 2
December 31, 2019	$	5,580	$	3,190	$	2,390
December 31, 2018	4,305		2,020		2,285