Print Page | Close Window

10-Q
XPO LOGISTICS, INC. filed this Form 10-Q on 11/05/2018
Entire Document
 

rates, adjusted for discrete items that occurred within the periods presented. The effective tax rate for both the third quarter and nine-month periods of 2018 reflects the enactment of the Tax Act, which permanently reduced the U.S. corporate statutory rate from 35% to 21% effective January 1, 2018. There was no material net effective tax rate impact related to discrete items in the third quarter of 2018 or 2017.
The effective tax rate for the first nine months of 2018 was impacted primarily by discrete tax benefits of $24.2 million associated with share-based payment arrangements and $4.3 million associated with the deduction of foreign taxes paid in prior years. The effective tax rate for the first nine months of 2017 was impacted primarily by discrete tax benefits of $9.8 million associated with share-based payment arrangements, $3.3 million associated with the release of valuation allowance on state tax matters, $3.1 million associated with deferred tax asset revaluations, and $2.5 million associated with research and development tax credits.
8. Noncontrolling Interests
The Company holds a controlling financial interest in entities where it currently holds, directly or indirectly, more than 50% of the voting rights or where it exercises control through substantive participating rights or as a general partner. Net income attributable to noncontrolling interests is deducted from Net income to determine Net income attributable to XPO. The noncontrolling interests reflected in our Condensed Consolidated Financial Statements primarily relate to the 13.75% outstanding minority interest in XPO Logistics Europe. We acquired an 86.25% controlling interest in XPO Logistics Europe in 2015. Activity for the equity attributable to noncontrolling interests for the nine months ended September 30, 2018 and 2017 is as follows:
(In millions)
 
Total Stockholders' Equity
 
Noncontrolling Interests
 
Total Equity
Balance at December 31, 2017
 
$
3,604.4

 
$
405.6

 
$
4,010.0

Net income
 
330.6

 
22.8

 
353.4

Other comprehensive loss
 
(75.0
)
 
(15.4
)
 
(90.4
)
Issuance of common stock from forward sale settlement
 
348.5

 

 
348.5

Other
 
(27.0
)
 
(4.7
)
 
(31.7
)
Balance at September 30, 2018
 
$
4,181.5

 
$
408.3

 
$
4,589.8

(In millions)
 
Total Stockholders' Equity
 
Noncontrolling Interests
 
Total Equity
Balance at December 31, 2016
 
$
2,700.0

 
$
337.6

 
$
3,037.6

Net income
 
135.7

 
17.4

 
153.1

Other comprehensive income
 
139.1

 
38.6

 
177.7

Issuance of common stock from offering
 
287.6

 

 
287.6

Other
 
46.4

 
(4.0
)
 
42.4

Balance at September 30, 2017
 
$
3,308.8

 
$
389.6

 
$
3,698.4



18