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Discontinued Operations | 12 Months Ended
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Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations As discussed above, the results of RXO, intermodal and GXO are presented as discontinued operations. The following table summarizes the results of operations from discontinued operations:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021 |  | 2020
Revenue |  | $ | 4,403 |  |  | $ | 10,200 |  |  | $ | 10,374 |
Cost of transportation and services (exclusive of depreciation and amortization) |  | 3,334 |  |  | 5,281 |  |  | 4,065 |
Direct operating expense (exclusive of depreciation and amortization) |  | 211 |  |  | 3,222 |  |  | 4,581 |
Sales, general and administrative expense |  | 492 |  |  | 901 |  |  | 979 |
Depreciation and amortization expense |  | 67 |  |  | 276 |  |  | 388 |
Gain on sale of business |  | (430) |  |  | — |  |  | — |
Transaction and other operating costs |  | 125 |  |  | 134 |  |  | 67 |
Operating income |  | 604 |  |  | 386 |  |  | 294 |
Other income |  | (2) |  |  | (27) |  |  | (35) |
Interest expense |  | — |  |  | 12 |  |  | 18 |
Income from discontinued operations before income tax provision |  | 606 |  |  | 401 |  |  | 311 |
Income tax provision |  | 124 |  |  | 156 |  |  | 84 |
Net income from discontinued operations, net of taxes |  | 482 |  |  | 245 |  |  | 227 |
Net income from discontinued operations attributable to noncontrolling interests |  | — |  |  | (5) |  |  | (10) |
Net income from discontinued operations attributable to discontinued entities |  | $ | 482 |  |  | $ | 240 |  |  | $ | 217 |
During the years ended December 31, 2022 and 2021, we incurred approximately $152 million and $125 million, respectively, of costs related to the spin-offs, of which $120 million and $101 million, respectively, are reflected within income from discontinued operations in our Consolidated Statements of Income. The following table summarizes the assets and liabilities from discontinued operations:
|  | December 31,
(In millions) |  | 2021
Cash and cash equivalents |  | $ | 34 |
Accounts receivable, net |  | 1,230 |
Other current assets |  | 68 |
Total current assets of discontinued operations |  | 1,332 |
Property and equipment, net |  | 133 |
Operating lease assets |  | 210 |
Goodwill |  | 885 |
Identifiable intangible assets, net |  | 110 |
Other long-term assets |  | 25 |
Total long-term assets of discontinued operations |  | 1,363 |
Accounts payable |  | 600 |
Accrued expenses |  | 307 |
Short-term operating lease liabilities |  | 63 |
Other current liabilities |  | 14 |
Total current liabilities of discontinued operations |  | 984 |
Deferred tax liability |  | 69 |
Long-term operating lease liabilities |  | 156 |
Other long-term liabilities |  | 56 |
Total long-term liabilities of discontinued operations |  | $ | 281 |
In 2022, RXO completed debt offerings and used the net proceeds to fund a cash payment from RXO to XPO of $446 million, which we used to repay a portion of our outstanding borrowings and fund any related fees and expenses. Additionally, in 2021, GXO completed a debt offering and used the net proceeds to fund a cash payment from GXO to XPO of $794 million, which we used to repay a portion of our outstanding borrowings. For further information, see Note 12—Debt. Prior to the spin-off of GXO, the pension plan for some employees in the United Kingdom was sold to a GXO entity and approximately $82 million of AOCI, net of tax, was transferred to GXO. In connection with both spin-offs, we entered into separation and distribution agreements as well as various other agreements that provide a framework for the relationships between the parties going forward, including, among others, an employee matters agreement (“EMA”), a tax matters agreement, an intellectual property license agreement and a transition services agreement, through which XPO agreed to provide certain services for a period of time specified in the applicable agreement following the spin-offs. The impact of these services on the consolidated financial statements was immaterial. Additionally, in accordance with these agreements, GXO has agreed to indemnify XPO for certain payments XPO makes with respect to certain self-insurance matters that were incurred by GXO prior to the spin-off and remain obligations of XPO. The receivable and reserve for these matters was approximately $17 million and $16 million, respectively, as of December 31, 2022 and $23 million and $21 million, respectively, as of December 31, 2021.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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