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RESTRUCTURING | 12 Months Ended
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Dec. 31, 2023
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING 2022 Restructuring Program: In 2022, we announced organizational changes to support our enterprise strategy of accelerating our digital transformation and productivity initiatives (the “2022 Restructuring Program”). 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. In 2023, we recognized additional restructuring charges of $17.5 million, primarily related to workforce reductions. Our 2022 Restructuring Program was completed in 2023 other than $3.8 million of severance installment payments accrued as of as December 31, 2023, expected to be paid in 2024. A summary of the restructuring charges recognized related to the 2022 Restructuring Program is presented below (in thousands):
| Twelve Months Ended December 31,
| 2023 |  | 2022
Severance(1) | $ | 14,358 |  |  | $ | 18,872 |
Other personnel expenses(1) | 1,814 |  |  | 2,662 |
Other selling, general, and administrative expenses(2) | 1,304 |  |  | 15,150 |
Total | $ | 17,476 |  |  | $ | 36,684 |
________________________________ (1) Amounts are included within personnel expenses in our consolidated statement of operations and comprehensive income. (2) Amounts include impairment of certain capitalized internally developed software projects and other miscellaneous exit costs, which are included within other selling, general, and administrative expenses in our consolidated statement of operations and comprehensive income. The following table summarizes restructuring charges by reportable segment related to the 2022 Restructuring Program for the twelve months ended December 31, 2023 and December 31, 2022 (in thousands):
Twelve Months Ended December 31, 2023 |  | NAST |  | Global Forwarding |  | All Other and Corporate |  | Consolidated
Personnel expenses |  | $ | 1,083 |  |  | $ | 2,176 |  |  | $ | 12,913 |  |  | $ | 16,172 |
Other selling, general, and administrative expenses |  | 8 |  |  | 197 |  |  | 1,099 |  |  | 1,304 |
Twelve Months Ended December 31, 2022 |  | NAST |  | Global Forwarding |  | All Other and Corporate |  | Consolidated
Personnel expenses |  | $ | 6,323 |  |  | $ | 3,831 |  |  | $ | 11,380 |  |  | $ | 21,534 |
Other selling, general, and administrative expenses |  | 3,175 |  |  | 3,174 |  |  | 8,801 |  |  | 15,150 |
The following table summarizes the activity related to our 2022 Restructuring Program and reserves included in our consolidated balance sheets (in thousands):
| Accrued Severance and Other Personnel Expenses |  | Other Selling, General, and Administrative Expenses |  |  | Total
Balance, December 31, 2022 | $ | 18,976 |  |  | $ | — |  |  |  | $ | 18,976 |
Restructuring charges | 16,172 |  |  | 1,304 |  |  |  | 17,476 |
Cash payments | (30,477) |  |  | (415) |  |  |  | (30,892) |
Settled non-cash | — |  |  | (907) |  |  |  | (907) |
Accrual adjustments(1) | (888) |  |  | 18 |  |  |  | (870) |
Balance, December 31, 2023 | $ | 3,783 |  |  | $ | — |  |  |  | $ | 3,783 |
________________________________ (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. South American Restructuring Program: In 2023, we announced a restructuring program (the “South American Restructuring Program”) to divest our operations in Argentina to mitigate our exposure to the deteriorating economic conditions and increasing political instability there. The Central Bank of Argentina maintains certain currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. We have identified a local independent agent to continue serving our customers in the region. As a result of these actions, we recognized restructuring charges primarily related to disposal and exit activities including asset impairments and workforce reductions. We have determined this divestiture does not represent a strategic shift that will have a major effect on our consolidated results of operations, and therefore the results of operations in Argentina are not reported as discontinued operations. The divestiture was completed near the end of 2023 for nominal consideration and our restructuring program is expected to be completed by the end of the first quarter of 2024. We recognized $21.2 million of net restructuring charges related to our South American Restructuring Program as presented below (in thousands):
|  | Twelve Months Ended December 31, |
|  | 2023 |
Severance and other personnel expenses(1) |  | $ | 2,237 |  |
Loss on disposal and exit activities including asset impairments(2) |  | 18,328 |  |
Other miscellaneous expenses(3) |  | 1,420 |  |
Income tax benefits(4) |  | (795) |  |
Total |  | $ | 21,190 |  |
________________________________ (1) Amounts are included within personnel expenses in our condensed consolidated statements of operations and comprehensive income. (2) Amounts are included within other selling, general, and administrative expenses in our condensed consolidated statements of operations and comprehensive income. (3) Amounts are included within interest and other expenses in our condensed consolidated statements of operations and comprehensive income. (4) Amounts are included within provision for income taxes in our condensed consolidated statements of operations and comprehensive income. The following table summarizes restructuring charges related to our South American Restructuring Program by reportable segment (in thousands):
| Twelve Months Ended December 31, 2023
| NAST |  | Global Forwarding |  | All Other and Corporate |  | Consolidated
Severance and other personnel expenses(1) | $ | — |  |  | $ | 1,641 |  |  | $ | 596 |  |  | $ | 2,237 |
Loss on disposal and exit activities including asset impairments(2) | — |  |  | 17,961 |  |  | 367 |  |  | 18,328 |
Other miscellaneous expenses(3) | — |  |  | 1,420 |  |  | — |  |  | 1,420 |
Income tax benefits(4) | — |  |  | (795) |  |  | — |  |  | (795) |
________________________________ (1) Amounts are included within personnel expenses in our condensed consolidated statements of operations and comprehensive income. (2) Amounts are included within other selling, general, and administrative expenses in our condensed consolidated statements of operations and comprehensive income. (3) Amounts are included within interest and other expenses in our condensed consolidated statements of operations and comprehensive income. (4) Amounts are included within provision for income taxes in our condensed consolidated statements of operations and comprehensive income. The following table summarizes activity related to our South American Restructuring Program and reserves included in our consolidated balance sheets (in thousands):
| Accrued Severance and Other Personnel Expenses |  | Accrued Other Selling, General, and Administrative Expenses |  |  | Total
Balance, December 31, 2022 | $ | — |  |  | $ | — |  |  |  | $ | — |
Restructuring charges | 2,237 |  |  | 18,328 |  |  |  | 20,565 |
Cash payments | (2,237) |  |  | — |  |  |  | (2,237) |
Divestiture of Argentine operations |  |  | (18,328) |  |  |  | (18,328) |
Balance, December 31, 2023 | $ | — |  |  | $ | — |  |  |  | $ | — |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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