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  "documentTitle": "XPO Logistics, Inc. (XPO)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2018-12-13 00:00:00",
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  "notes": "Uses a comparison of old vs new disclosure text to demonstrate accounting manipulation.",
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      "text": "Direct operating expenses are both fixed and variable expenses and consist of operating costs related to our contract logistics facilities, last mile warehousing facilities, LTL service centers and European LTL network. Direct operating costs consist mainly of personnel costs, facility and equipment expenses such as rent, equipment maintenance and repair expenses, costs of materials and supplies, information technology expenses, depreciation expense, utilities and other facility related costs and gains and losses on sales of property and equipment.",
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      "text": "Other expense (income) for the second quarter of 2018 was $(30.2) million as compared to $(12.5) million in the second quarter of 2017. Other expense (income) for the first six months of 2018 was $(49.8) million as compared to $(19.0) million in the first six months of 2017. Other expense (income) includes net periodic benefit income and gains and losses on sales of property and equipment.",
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      "text": "XPO made a subtle change in Q3 2018 to move gains and losses from property and equipment from \"other expenses (income)\" into the direct operating expense line item.",
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      "text": "Asset Sales: $91.7",
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      "text": "XPO made a subtle change in Q3 2018 to move gains and losses from property and equipment from “other expenses (income)” into the direct operating expense line item. XPO does not break-out these gains or losses, but in a worst case, it is improperly inflating EBITDA by running gains as a reduction to operating expenses. XPO’s asset sales have increased 54% YoY, and it explicitly says any gains/loss below operating income are excluded form EBITDA. (1)",
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      "text": "Direct operating expenses are both fixed and variable expenses and consist of operating costs related to our contract logistics facilities, last mile warehousing facilities, LTL service centers and European LTL network. Direct operating costs consist mainly of personnel costs, facility and equipment expenses such as rent, equipment maintenance and repair expenses, costs of materials and supplies, information technology expenses, depreciation expense, utilities and other facility related costs and gains and losses on sales of property and equipment. — Q3'18 10-Q, p. 25",
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      "text": "1) XPO explicitly says in its earnings press release: “adjusted EBITDA is reconciled to operating income and excludes gains and losses below operating income in the Condensed Consolidated Statements of Operations”",
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      "text": "More Desperate Ways To Inflate EBITDA?",
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