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

9. Earnings Per Share
Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The participating securities consist of the Company’s Series A Convertible Perpetual Preferred Stock. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. In periods of loss, no allocation is made to the preferred shares.
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions, except per share data)
 
2018
 
2017
 
2018
 
2017
Basic earnings per common share
 
 
 
 
 
 
 
 
Net income attributable to XPO
 
$
109.0

 
$
62.5

 
$
330.6

 
$
135.7

Cumulative preferred dividends
 
(0.7
)
 
(0.7
)
 
(2.1
)
 
(2.2
)
Non-cash allocation of undistributed earnings
 
(7.5
)
 
(4.3
)
 
(23.3
)
 
(9.0
)
Net income attributable to common shares, basic
 
$
100.8

 
$
57.5

 
$
305.2

 
$
124.5

 
 
 
 
 
 
 
 
 
Basic weighted-average common shares
 
125.2

 
117.5

 
122.1

 
113.5

Basic earnings per share
 
$
0.81

 
$
0.49

 
$
2.50

 
$
1.10

 
 
 
 
 
 
 
 
 
Diluted earnings per common share
 
 
 
 
 
 
 
 
Net income attributable to common shares, basic
 
$
100.8

 
$
57.5

 
$
305.2

 
$
124.5

Interest from Convertible Senior Notes
 

 
0.2

 

 
0.9

Net income attributable to common shares, diluted
 
$
100.8

 
$
57.7

 
$
305.2

 
$
125.4

 
 
 
 
 
 
 
 
 
Basic weighted-average common shares
 
125.2

 
117.5

 
122.1

 
113.5

Dilutive effect of Convertible Senior Notes
 

 
1.9

 

 
2.6

Dilutive effect of non-participating stock-based awards and equity forward
 
11.4

 
10.4

 
12.7

 
10.1

Diluted weighted-average common shares
 
136.6

 
129.8

 
134.8

 
126.2

 
 
 
 
 
 
 
 
 
Diluted earnings per share
 
$
0.74

 
$
0.44

 
$
2.26

 
$
0.99

 
 
 
 
 
 
 
 
 
Potential common shares excluded
 
10.2

 
10.2

 
10.2

 
10.2

Certain shares were not included in the computation of diluted earnings per share because the effect was anti-dilutive.
10. Legal and Regulatory Matters
The Company is involved, and will continue to be involved, in numerous proceedings arising out of the conduct of its business. These proceedings may include, among other matters, claims for property damage or personal injury incurred in connection with the transportation of freight, claims regarding anti-competitive practices, and employment-related claims, including claims involving asserted breaches of employee restrictive covenants and tortious interference with contracts. These matters also include numerous purported class action, multi-plaintiff and individual lawsuits, and administrative proceedings that claim either that the Company’s owner-operators or contract carriers should be treated as employees, rather than independent contractors, or that certain of the Company’s drivers were not paid for all compensable time or were not provided with required meal or rest breaks. These lawsuits and proceedings may seek substantial monetary damages (including claims for unpaid wages, overtime, failure to provide meal and rest periods, unreimbursed business expenses and other items), injunctive relief, or both.


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