Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2025

Summary of Allowance for Doubtful Accounts Rollforward

The roll-forward of the allowance for credit losses was as follows:


	Years Ended December 31,
(In millions)	2025		2024		2023
Beginning balance	$	50	$	45	$	43
Provision charged to expense	26		21		33
Write-offs, less recoveries, and other adjustments	(37)		(16)		(31)

Ending balance	$	40	$	50	$	45

Schedule of Accounts Receivable Securitization and Factoring Programs

Information related to the trade receivables sold was as follows:


	Years Ended December 31,
(In millions)	2025		2024		2023
Securitization programs
Receivables sold in period	$	1,881	$	1,762	$	1,815
Cash consideration	1,881		1,762		1,815


Factoring programs
Receivables sold in period	70		79		103
Cash consideration	67		78		103

Summary of Property and Equipment

We compute depreciation 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, tractors and trailers						3 to 14 years

Machinery and equipment						3 to 10 years
Computer software and equipment						1 to 5 years


	December 31,
(In millions)	2025		2024
Property and equipment
Land	$	920	$	879
Buildings and leasehold improvements	1,017		874
Vehicles, tractors and trailers	3,033		2,746
Machinery and equipment	330		291
Computer software and equipment	724		633
	6,024		5,422
Less: accumulated depreciation and amortization	(2,360)		(2,019)
Total property and equipment, net	$	3,664	$	3,402
Net book value of capitalized internally-developed software included in property and equipment, net	$	100	$	112

Schedule of Accrued Expenses

The components of accrued expenses as of December 31, 2025 and 2024 are as follows:


	As of December 31,
(In millions)	2025		2024
Accrued salaries and wages	$	244	$	273
Accrued transportation and facility charges	218		184
Accrued insurance claims	109		88
Accrued taxes	106		93
Other accrued expenses	83		70
Total accrued expenses	$	760	$	708

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, 2025 and 2024, are as follows:


(In millions)	Foreign Currency Translation Adjustments		Derivative Hedges		Defined Benefit Plans Liability		AOCI Attributable to XPO
As of December 31, 2023	$	(91)	$	(2)	$	(124)	$	(217)
Other comprehensive income (loss)	(7)		3		(16)		(20)
Amounts reclassified from AOCI	(9)		(1)		1		(9)
Net current period other comprehensive income (loss)	(16)		2		(15)		(29)

As of December 31, 2024	(107)		—		(139)		(246)
Other comprehensive income	49		1		18		68
Amounts reclassified from AOCI	(10)		(2)		3		(9)
Net current period other comprehensive income (loss)	39		(1)		21		59

As of December 31, 2025	$	(68)	$	(1)	$	(118)	$	(187)

Summary of Fair Value Hierarchy of Cash Equivalents

The fair value hierarchy of cash equivalents was as follows:


(In millions)	Carrying Value		Fair Value		Level 1
December 31, 2025	$	285	$	285	$	285
December 31, 2024	205		205		205

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, 2025	$	3,499	$	2,254	$	1,246
December 31, 2024	3,541		2,223		1,318