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Restructuring and Related Activities
 9 Months Ended
Sep. 30, 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. 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 $17.7 million in 2023 primarily related to workforce reductions. We expect to complete our 2022 restructuring program by the end of 2023.
For severance and other operating expenses related to the 2022 restructuring program, we paid $2.2 million in cash in the third quarter of 2023 with the majority of the remaining $5.7 million accrued as of September 30, 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 September 30,Nine Months Ended September 30,
20232023
Severance(1)
$(265)$14,554 
Other personnel expenses(1)
(67)1,839 
Other selling, general, and administrative expenses(2)
193 1,322 
Total $(139)$17,715 
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(1) Amounts are included within personnel expenses in our condensed consolidated statements of operations and comprehensive income. Amounts recognized in the three months ended September 30, 2023, primarily relate to accrual adjustments for amounts settling for an amount different than originally estimated.
(2) Amounts are included within other selling, general, and administrative expenses in our condensed consolidated statements of operations and comprehensive income.
The following table summarizes restructuring charges by reportable segment (dollars in thousands):
Three Months Ended September 30, 2023
NASTGlobal Forwarding All Other and CorporateConsolidated
Personnel expenses$(73)$(87)$(172)$(332)
Other selling, general, and administrative expenses4 67 122 193 
Nine Months Ended September 30, 2023
NASTGlobal ForwardingAll Other and CorporateConsolidated
Personnel expenses$1,083 $2,142 $13,168 $16,393 
Other selling, general, and administrative expenses8 230 1,084 1,322 
The following table summarizes activity related to our 2022 restructuring program and reserves included in our consolidated balance sheets:
Accrued Severance and Other Personnel ExpensesAccrued Other Selling, General, and Administrative ExpensesTotal
Balance, December 31, 2022$18,976 $— $18,976 
  Restructuring charges16,393 1,322 17,715 
  Cash payments(29,010)(415)(29,425)
  Settled non-cash— (907)(907)
  Accrual adjustments(1)
(622)— (622)
Balance, September 30, 2023$5,737 $— $5,737 
________________________________ 
(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 the third quarter of 2023, we announced a restructuring program (“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. As conditions worsened in the third quarter of 2023, management began the process of divesting and identifying local independent agent relationships to continue serving our customers in the region. As a result of these actions, we recognized restructuring charges related to disposal and exit activities including asset impairments and workforce reductions.
We have determined that this planned 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. We expect the sale to be completed near the end of 2023 and our restructuring program to be completed by the end of the first quarter of 2024. The assets and liabilities associated with the planned divestiture (the “disposal group”) are presented as held for sale at fair value less any estimated costs to sell as of September 30, 2023. We recognized a $21.1 million loss on the disposal group classified as held for sale in the three and nine months ended September 30, 2023, which is included within other selling, general, and administrative expenses in the condensed consolidated statements of operations and comprehensive income. The assets and liabilities of the disposal group are primarily related to our Global Forwarding segment.
A summary of the restructuring charges recognized related to our South American restructuring program is presented below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
20232023
Severance and other personnel expenses(1)
$3,350 $3,350 
Other selling, general, and administrative expenses(2)
21,252 21,252 
Income tax benefits(3)
(5,501)(5,501)
Total $19,101 $19,101 
________________________________ 
(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 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 (dollars in thousands):
Three Months Ended September 30, 2023
NASTGlobal ForwardingAll Other and CorporateConsolidated
Personnel expenses$— $2,600 $750 $3,350 
Other selling, general, and administrative expenses— 21,012 240 21,252 
Income tax benefits— (5,501)— (5,501)
Nine Months Ended September 30, 2023
NASTGlobal ForwardingAll Other and CorporateConsolidated
Personnel expenses$— $2,600 $750 $3,350 
Other selling, general, and administrative expenses— 21,012 240 21,252 
Income tax benefits— (5,501)— (5,501)
The following table summarizes activity related to our South American restructuring program and reserves included in our consolidated balance sheets:
Accrued Severance and Other Personnel ExpensesAccrued Other Selling, General, and Administrative ExpensesTotal
Balance, December 31, 2022$— $— $— 
  Restructuring charges3,350 21,252 24,602 
  Settled non-cash— (21,187)(21,187)
Balance, September 30, 2023$3,350 $65 $3,415 
We have recorded a deferred tax asset of $5.5 million related to income tax benefits we expect to realize as a result of our South American restructuring activities.
A summary of assets and liabilities associated with the disposal group that are held for sale as of September 30, 2023, is presented below (in thousands):
As of
September 30, 2023
Assets held for sale:
Cash and cash equivalents$2,486 
Receivables23,710 
Property and equipment431 
Right-of-use lease assets128 
Other assets415 
Valuation allowance(21,113)
Total assets held for sale(1)
$6,057 
Liabilities held for sale:
Accounts payable$5,115 
Lease liabilities566 
Other liabilities376 
Total liabilities held for sale(2)
$6,057 
________________________________ 
(1) Amounts are included within other assets in our condensed consolidated balance sheet.
(2) Amounts are included within other accrued liabilities in our condensed consolidated balance sheet.