Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 68

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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$(9.2)$24.4 $(144.0)$(263.1)The unaudited pro forma combined financial information includes, where applicable, adjustments for:(i) Acquisition accounting in accordance with ASC 805;(ii) Financing transactions directly attributable to the Beacon Acquisition; and(iii) Transaction costs incurred by the Company that were directly attributable to the Beacon Acquisition. These pro forma adjustments are based on available information as of the date hereof and upon assumptions that the Company believes are reasonable to reflect the impact of the Beacon Acquisition on the Company’s historical financial information on a supplemental pro forma basis. Adjustments do not include costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined business.

4. Restructuring

Subsequent to the Beacon Acquisition, the Company developed a restructuring plan to streamline and simplify the organization, improve efficiency and reduce costs. As a result of the restructuring plan, the Company recorded $72.8 million in pre-tax restructuring charges, comprised of $35.3 million of severance and employee-related costs associated with corporate workforce optimization and a $37.5 million stock-based compensation charge associated with the impacted employees. These restructuring charges are reflected in selling, general and administrative expenses on the condensed consolidated statements of operations for the three and six months ended June 30, 2025, respectively. The severance and employee-related costs were recorded in accrued expenses, while the stock-based compensation charge was reflected as an adjustment to common stock and additional paid-in capital on the condensed consolidated balance sheets. The restructuring charge liability is expected to be paid in full by June 2026.The following table shows the change in the severance and employee-related restructuring charge liability during the six months ended June 30, 2025:June 30,2025(in millions)Restructuring charge liability, beginning of the period$— Restructuring charges35.3Payments(4.4)Restructuring charge liability, end of the period$30.9 

Severance and employee-related costs consist primarily of salary continuation benefits, prorated annual incentive compensation, continuation of health care benefits and outplacement services. 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. 

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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