Company: QXO-PB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050298
Chunk: 131

Company: QXO, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 131
---
 Company recorded $9.8 million in pre-tax restructuring charges during the three months ended September 30, 2025, comprised of $7.2 million of severance and employee-related costs associated with corporate workforce optimization and a $2.6 million stock-based compensation charge associated with the impacted employees. During the nine months ended September 30, 2025, the Company recorded $82.6 million in pre-tax restructuring charges, comprised of $42.5 million of severance and employee-related costs associated with corporate workforce optimization and a $40.1 million stock-based compensation charge associated with the impacted employees. These restructuring charges are reflected in selling, general and administrative expenses on the condensed consolidated statements of operations for the three and nine months ended September 30, 2025, respectively. The severance and employee-related costs were recorded in accrued expenses, while the stock-based compensation charge was reflected as an adjustment to common stock and additional paid-in capital on the condensed consolidated balance sheets. The restructuring charge liability is expected to be paid in full by June 2026.The following table shows the change in the severance and employee-related restructuring charge liability during the nine months ended September 30, 2025:September 30,2025(in millions)Restructuring charge liability, beginning of the period$— Restructuring charges42.5Payments(22.9)Restructuring charge liability, end of the period$19.6 Severance and employee-related costs consist primarily of salary continuation benefits, prorated annual incentive compensation, continuation of health care benefits, outplacement services and retention awards issued to certain key employees. Severance and employee-related benefits are determined pursuant to the Company’s written severance plans and are recognized when the benefits are determined to be probable of being paid and are reasonably estimable. Retention awards are recognized on a straight-line basis from the communication date to the end of the requisite retention period.

18

5. Segment Reporting and Geographic Information

Segment ReportingOperating segments are defined as components of an entity for which separate discrete financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM, the Chief Executive Officer, reviews consolidated results of operations to make decisions, therefore the Company views its operations and manages its business as a single operating segment.The Company’s revenues for its single operating segment are primarily derived from the sale of residential and non-residential roofing products, as well as