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  "documentTitle": "XPO Logistics, Inc. (XPO)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2018-12-13 00:00:00",
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  "notes": "The slide uses a table to demonstrate how pension gains are inflating earnings metrics, contrasting them with GAAP pre-tax profit.",
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      "text": "These gains are non-operational and can be used to mask underlying weakness in XPO’s core business.",
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      "text": "Pension Gain % of Pre-Tax Profit: 25.7%",
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      "text": "Ever since acquiring Con-Way and ND, XPO has been reporting accelerated pension gains that have been increasing EBITDA, and now pre-tax income (1). These gains are non-operational and can be used to mask underlying weakness in XPO's core business.",
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      "kind": "quote",
      "text": "We have historically realized income, rather than expense, from these plans. We generated aggregate income from our U.S. and U.K. plans of $44.4 million in 2017, $27.5 million in 2016 and $8.2 million in 2015.",
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      "text": "We have historically realized income, rather than expense, from these plans. We generated aggregate income from our U.S. and U.K. plans of $44.4 million in 2017, $27.5 million in 2016 and $8.2 million in 2015. The plans have been generating income due to their funded status and since they do not allow for new plan participants or additional benefit accruals. The effects of the defined benefit pension plans on our operating results consist primarily of the net effect of the interest cost on plan obligations for the U.S. Plans and the U.K. Plan, and the expected return on plan assets. We estimate that the defined benefit pension plans will contribute annual pre-tax income in 2018 of $32.4 million for the U.S. Plans and $41.4 million for the U.K. Plan. — XPO 10-K",
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      "text": "Source: XPO 10-K filings, Bloomberg 2018 consensus estimates. Note: US/UK estimated gains from previous year Annual Reports. XPO's total pre-tax gains exceeded estimates in both 2016/17",
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      "text": "Table showing Year End, US Plan, UK Plan, Total Pre-Tax Income Gain, Location in Income Statement, XPO Adj. EBITDA, Gain as % of EBITDA, XPO GAAP Pre-Tax Profit, Pension Gain % of Pre-Tax Profit, Estimated Impact on EPS",
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      "text": "Low Quality Pension Income",
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