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Segment Reporting and Geographic Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information
Segment Reporting and Geographic Information
The Company determines its operating segments based on the information utilized by the chief operating decision maker, the Company’s Chief Executive Officer, to allocate resources and assess performance. Based on this information, the Company has determined that it has two operating segments and two reportable segments. The Company’s operating segments are Transportation and Logistics.
These reportable segments are strategic business units through which the Company offers different services. The Company evaluates the performance of the segments primarily based on their respective net operating margin and also evaluates revenues, net revenue margin and operating income. Accordingly, interest expense and other non-operating items are not reported in segment results. In addition, the Company has disclosed corporate amounts, which is not an operating segment and includes the costs of the Company’s executive and shared service teams, professional services such as legal and consulting, board of directors, and certain other corporate costs associated with operating as a public company. The Company allocates charges to the reportable segments for IT services, depreciation of IT fixed assets as well as centralized recruiting and training resources. Intercompany transactions have been eliminated in the consolidated balance sheets and results of operations. Intra-segment transactions have been eliminated in the reportable segment results of operations whereas inter-segment transactions represent a reconciling item to consolidated results as shown below.
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on various financial measures of the respective business segments. The chief operating decision maker does not review assets by segment for purposes of allocating resources and therefore assets by segment are not disclosed.
The following schedule identifies selected financial data for each of the Company’s reportable segments for the years ended December 31, 2015, 2014 and 2013, respectively:
XPO Logistics, Inc.
Segment Data
(Dollars in millions)
Transportation
 
Logistics
 
Corporate
 
Eliminations
 
Total
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
Revenue
$
4,924.4

 
$
2,768.4

 
$
—

 
$
(69.6
)
 
$
7,623.2

Operating income (loss)
51.6

 
81.6

 
(162.0
)
 
0.2

 
(28.6
)
Depreciation and amortization
226.5

 
136.9

 
1.5

 
—

 
364.9

Interest expense
25.0

 
15.3

 
176.4

 
—

 
216.7

Income tax provision (benefit)
(10.5
)
 
17.6

 
(98.0
)
 
—

 
(90.9
)
Goodwill
2,504.7

 
2,105.9

 
—

 
—

 
4,610.6

Capital expenditures
126.3

 
109.5

 
13.2

 
—

 
249.0

Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
Revenue
$
2,140.0

 
$
216.6

 
$
—

 
$
—

 
$
2,356.6

Operating income (loss)
18.9

 
17.6

 
(77.4
)
 
—

 
(40.9
)
Depreciation and amortization
79.5

 
16.3

 
2.5

 
—

 
98.3

Interest expense
0.5

 
—

 
47.5

 
—

 
48.0

Income tax provision (benefit)
0.8

 
—

 
(26.9
)
 
—

 
(26.1
)
Goodwill
577.0

 
352.3

 
—

 
—

 
929.3

Capital expenditures
13.4

 
24.0

 
7.2

 
—

 
44.6

Year Ended December 31, 2013
 
 
 
 
 
 
 
 
 
Revenue
$
702.3

 
$
—

 
$
—

 
$
—

 
$
702.3

Operating loss
(7.2
)
 
—

 
(45.1
)
 
—

 
(52.3
)
Depreciation and amortization
19.7

 
—

 
1.1

 
—

 
20.8

Interest expense
—

 
—

 
18.2

 
—

 
18.2

Income tax benefit
(2.4
)
 
—

 
(20.1
)
 
—

 
(22.5
)
Goodwill
363.4

 
—

 
—

 
—

 
363.4

Capital expenditures
5.3

 
—

 
6.3

 
—

 
11.6


For segment reporting purposes by geographic region, revenues are attributed to the sales office location. The following table presents revenues generated by geographical area.
 
Year Ended December 31,
(Dollars in millions)
2015
 
2014
 
2013
Revenue
 
 
 
 
 
United States
$
4,278.5

 
$
2,141.4

 
$
628.0

North America (excluding United States)
166.3

 
132.0

 
74.3

Europe
2,986.9

 
12.9

 
—

Asia
171.9

 
66.3

 
—

Other
19.6

 
4.0

 
—

Total
$
7,623.2

 
$
2,356.6

 
$
702.3

As of December 31, 2015, the Company held long-lived tangible and intangible assets outside of the United States of $1,237.1 million.