XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

RESTRUCTURING | 6 Months Ended
--- | ---
Jun. 30, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING 2024 Restructuring Program: In 2024, the Company began a restructuring program (the “2024 Restructuring Program”) to drive our enterprise strategy and reduce our cost structure. The 2024 Restructuring Program will be executed in phases, focusing on waste reduction, reprioritizing our product and technology teams on fewer strategic initiatives, driving synergies across our portfolio of services, and unifying the go to market strategy of our divisions. The major initiatives of the first phase, which commenced in the first quarter of 2024, include: 1) optimizing our management hierarchy, which includes a reduction in workforce; and 2) reprioritizing the efforts of our product and technology teams, resulting in the impairment of certain internally developed software projects. We have realigned our product and technology teams on fewer strategic initiatives to accelerate the capabilities of our platform to deliver market-leading outcomes for our customers, carriers, and employees. The primary initiatives of the second phase commenced in the second quarter of 2024. These initiatives include the rationalization of our facilities footprint including the consolidation, early termination, or abandonment of office buildings under operating leases. The 2024 Restructuring Program may also include other initiatives yet to be identified that will drive our enterprise strategy and improve our cost structure. We expect all activities under the 2024 Restructuring program to be completed by the end of 2024. We recognized restructuring charges of $15.2 million in the second quarter of 2024 primarily related to workforce reductions and charges to reduce our facilities footprint including early termination or abandonment of office buildings under operating leases. Based upon the initiatives identified to date, we anticipate recognizing $30 million to $35 million of restructuring charges related to the 2024 Restructuring Program in 2024. The amount of restructuring charges we recognize, and the timing of recognition, will depend upon the nature and scope of initiatives we identify and our ability to enact changes to our real estate footprint under existing operating leases. We paid $10.7 million of cash related to the 2024 Restructuring Program in the six months ended June 30, 2024. A summary of charges related to our 2024 Restructuring Program are presented below (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30, |
| 2024 |  | 2024 |
Severance(1) | $ | 8,799 |  |  | $ | 16,213 |  |
Other personnel expenses(1) | 670 |  |  | 1,198 |  |
Other selling, general, and administrative expenses(2) | 5,740 |  |  | 10,709 |  |
Total | $ | 15,209 |  |  | $ | 28,120 |  |
________________________________ (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. The charges recognized in the three months ended June 30, 2024, primarily resulted from the second phase of the 2024 Restructuring Program while the charges recognized in the six months ended June 30, 2024, also include initiatives under the first phase of the 2024 Restructuring Program as discussed above. The following table summarizes restructuring charges by reportable segment (in thousands):
| Three Months Ended June 30, 2024
| NAST |  | Global Forwarding |  | All Other and Corporate |  | Consolidated
Personnel expenses | $ | 4,758 |  |  | $ | 2,203 |  |  | $ | 2,508 |  |  | $ | 9,469 |
Other selling, general, and administrative expenses | 3,776 |  |  | 1,327 |  |  | 637 |  |  | 5,740 |
| Six Months Ended June 30, 2024
| NAST |  | Global Forwarding |  | All Other and Corporate |  | Consolidated
Personnel expenses | $ | 7,784 |  |  | $ | 5,395 |  |  | $ | 4,232 |  |  | $ | 17,411 |
Other selling, general, and administrative expenses | 5,654 |  |  | 1,559 |  |  | 3,496 |  |  | 10,709 |
The following table summarizes activity related to our 2024 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, 2023 | $ | — |  |  | $ | — |  |  |  | $ | — |
Restructuring charges | 17,411 |  |  | 10,709 |  |  |  | 28,120 |
Cash payments | (10,300) |  |  | (394) |  |  |  | (10,694) |
Settled non-cash | — |  |  | (10,030) |  |  |  | (10,030) |
Accrual adjustments(1) | (449) |  |  | — |  |  |  | (449) |
Balance, June 30, 2024 | $ | 6,662 |  |  | $ | 285 |  |  |  | $ | 6,947 |
________________________________ (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. 2022 Restructuring Program: In 2022, we announced organizational changes to support our enterprise strategy of accelerating our digital transformation and productivity initiatives. The initiatives under our 2022 Restructuring Program were completed in 2023. We paid $3.0 million of cash related to the 2022 Restructuring Program in the six months ended June 30, 2024. There is no further activity expected related to the 2022 Restructuring Program other than settling the remaining $0.7 million of accrued severance and other personnel expenses as of June 30, 2024. A summary of charges related to our 2022 Restructuring Program are presented below (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30, |
| 2023 |  | 2023 |
Severance(1) | $ | 11,681 |  |  | $ | 14,819 |  |
Other personnel expenses(1) | 1,446 |  |  | 1,906 |  |
Other selling, general, and administrative expenses(2) | 1,005 |  |  | 1,129 |  |
Total | $ | 14,132 |  |  | $ | 17,854 |  |
________________________________ (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. The following table summarizes restructuring charges by reportable segment (in thousands):
| Three Months Ended June 30, 2023
| NAST |  | Global Forwarding |  | All Other and Corporate |  | Consolidated
Personnel expenses | $ | 327 |  |  | $ | 691 |  |  | $ | 12,109 |  |  | $ | 13,127 |
Other selling, general, and administrative expenses | 4 |  |  | 39 |  |  | 962 |  |  | 1,005 |
| Six Months Ended June 30, 2023
| NAST |  | Global Forwarding |  | All Other and Corporate |  | Consolidated
Personnel expenses | $ | 1,156 |  |  | $ | 2,229 |  |  | $ | 13,340 |  |  | $ | 16,725 |
Other selling, general, and administrative expenses | 4 |  |  | 163 |  |  | 962 |  |  | 1,129 |
The following table summarizes activity related to our 2022 Restructuring Program and reserves included in our consolidated balance sheets (in thousands):
| Accrued Severance and Other Personnel Expenses |  |  |  |  |
Balance, December 31, 2023 | $ | 3,783 |  |  |  |  |  |
Restructuring charges | 12 |  |  |  |  |  |
Cash payments | (2,970) |  |  |  |  |  |
Accrual adjustments(1) | (173) |  |  |  |  |  |
Balance, June 30, 2024 | $ | 652 |  |  |  |  |  |
________________________________ (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.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: 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 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration