EXHIBIT 99.2
Supplemental Financial Information Relating to RXO
Brokerage & Other Services is a reportable segment of XPO and includes the RXO business, the Intermodal business which was sold in March 2022 and the European business. The table below disaggregates that segment to reflect the RXO business.
RXO
Reconciliation of XPO Segment Reporting to RXO
(Unaudited)
| Six Months Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||||||||||
| (In millions) | Brokerage & Other Services Segment | Europe Transport & Intermodal | RXO | Brokerage & Other Services Segment | Europe Transport & Intermodal | RXO | ||||||||||||||||||
| Operating income | $ | 193 | $ | 49 | $ | 144 | $ | 282 | $ | 56 | $ | 226 | ||||||||||||
| Other income (expense) | – | – | – | (1 | ) | – | (1 | ) | ||||||||||||||||
| Depreciation and amortization | 114 | 70 | 44 | 240 | 161 | 79 | ||||||||||||||||||
| Transaction and integration costs | 3 | 3 | – | 16 | 14 | 2 | ||||||||||||||||||
| Restructuring costs | 6 | 3 | 3 | 10 | 10 | – | ||||||||||||||||||
| Adjusted EBITDA | $ | 316 | $ | 125 | $ | 191 | (1) | $ | 547 | $ | 241 | $ | 306 | (1) | ||||||||||
| Six Months Ended June 30, 2021 | Twelve Months Ended June 30, 2022 | |||||||||||||||||||||||
| (In millions) | Brokerage & Other Services Segment | Europe Transport & Intermodal | RXO | Brokerage & Other Services Segment | Europe Transport & Intermodal | RXO | ||||||||||||||||||
| Operating income | $ | 131 | $ | 20 | $ | 111 | $ | 344 | $ | 85 | $ | 259 | ||||||||||||
| Other income (expense) | (1 | ) | – | (1 | ) | – | – | – | ||||||||||||||||
| Depreciation and amortization | 121 | 81 | 40 | 233 | 150 | 83 | ||||||||||||||||||
| Transaction and integration costs | 3 | 3 | – | 16 | 14 | 2 | ||||||||||||||||||
| Restructuring costs | 1 | 1 | – | 15 | 12 | 3 | ||||||||||||||||||
| Adjusted EBITDA | $ | 255 | $ | 105 | $ | 150 | (1) | $ | 608 | $ | 261 | $ | 347 | (1) | ||||||||||
| (1) | Adjusted EBITDA for the RXO business is presented on an XPO reportable segment basis and excludes unallocated XPO corporate costs. |
The table below reconciles adjusted EBITDA of the RXO business on an XPO reportable segment basis to RXO's Pro Forma Adjusted EBITDA as presented in the Form 10.
| Six Months Ended June 30, 2022 | Year Ended December 31, 2021 | Six Months Ended June 30, 2021 | Twelve Months Ended June 30, 2022 | |||||||||||||
| Adjusted EBITDA - XPO basis | $ | 191 | $ | 306 | $ | 150 | $ | 347 | ||||||||
| Allocated corporate expense and other | (15 | ) | (29 | ) | (12 | ) | (32 | ) | ||||||||
| RXO Form 10 pro forma adjustments and other | (3 | ) | (9 | ) | (5 | ) | (7 | ) | ||||||||
| Pro Forma Adjusted EBITDA - RXO Form 10 | $ | 173 | $ | 268 | $ | 133 | $ | 308 | ||||||||
The table below reconciles RXO's Pro Forma Adjusted EBITDA as presented in the Form 10 to RXO's pro forma adjusted EBITDA inclusive of anticipated incremental public company standalone costs.
RXO
Reconciliation of Pro Forma Adjusted EBITDA and Public Company Pro Forma Adjusted EBITDA
(Unaudited)
| Pro Forma | ||||||||||||||||
| (In millions) | Six Months Ended June 30, 2022 | Year Ended December 31, 2021 | Six Months Ended June 30, 2021 | Twelve Months Ended June 30, 2022 | ||||||||||||
| Pro forma adjusted EBITDA (1) | $ | 173 | $ | 268 | $ | 133 | $ | 308 | ||||||||
| Reversal of allocated corporate expense (2) and other | 15 | 29 | 12 | 32 | ||||||||||||
| Public company standalone cost (3) | (20 | ) | (36 | ) | (18 | ) | (38 | ) | ||||||||
| Public company pro forma adjusted EBITDA | $ | 168 | $ | 261 | $ | 127 | $ | 302 | ||||||||
| GAAP Reconciliation | ||||||||||||||||
| Net income | $ | 67 | $ | 112 | $ | 53 | $ | 126 | ||||||||
| Interest expense | 19 | 37 | 18 | 38 | ||||||||||||
| Income tax provision | 21 | 29 | 17 | 33 | ||||||||||||
| Depreciation and amortization expense | 42 | 81 | 40 | 83 | ||||||||||||
| Transaction and integration costs | 21 | 7 | 5 | 23 | ||||||||||||
| Restructuring costs | 3 | 2 | – | 5 | ||||||||||||
| Pro forma adjusted EBITDA (1) | $ | 173 | $ | 268 | $ | 133 | $ | 308 | ||||||||
| (1) | Based on RXO's combined financial statements as presented in Form 10. |
| (2) | Allocated corporate expense per RXO Form 10 combined financial statements; excludes the impact of adjusted items and allocated income tax, depreciation and amortization from XPO Corporate. |
| (3) | Estimated incremental costs of operating RXO as a standalone public company. |