Restructuring and Related Activities

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

In 2022, we announced organizational changes to support our enterprise strategy of accelerating our digital transformation and productivity initiatives. We continued to execute upon these digital transformation and productivity initiatives in 2023, which resulted in further restructuring charges to better align our workforce as a result of these initiatives and in consideration of the changing freight transportation market. We recognized additional restructuring charges of $3.7 million in the first quarter of 2023 primarily related to workforce reductions. We expect to complete our restructuring actions by the end of 2023.

For severance and other operating expenses related to restructuring activities, we paid $15.2 million in cash in the first quarter of 2023 with the majority of the remaining $7.5 million accrued as of March 31, 2023 expected to be paid by the end of 2023.

A summary of the restructuring charges recognized is presented below (in thousands):


	Three Months Ended March 31,
	2023
Severance(1)	$	3,138
Other personnel expenses(1)	460
Other selling, general, and administrative expenses(2)	124
Total	$	3,722

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(1) Amounts are included within personnel expenses in our consolidated statements of operations.

(2) Amounts are included within other selling, general, and administrative expenses in our consolidated statements of operations.

The following table summarizes restructuring charges by reportable segment for the three months ended March 31, 2023 (dollars in thousands):


	NAST		Global Forwarding		All Other and Corporate		Consolidated
Personnel expenses	$	829	$	1,538	$	1,231	$	3,598
Other selling, general, and administrative expenses	—		124		—		124

The following table summarizes activity related to our restructuring initiatives and reserves included in our consolidated balance sheets as of December 31, 2022 and March 31, 2023:


	Accrued Severance and Other Personnel Expenses		Accrued Other Selling, General, and Administrative Expenses		Total
Balance, December 31, 2022	$	18,976	$	—	$	18,976
Restructuring charges	3,598		124		3,722
Cash payments	(15,178)		—		(15,178)
Accrual adjustments(1)	5		—		5
Balance, March 31, 2023	$	7,401	$	124	$	7,525

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(1) Accrual adjustments primarily relate to changes in estimates for certain employee termination costs, including those settling for an amount different than originally estimated and foreign currency adjustments.