What changed in this filing

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Item 1. Financial Statements

2023-08-04 compared with 2023-04-28 · 125 added, 70 removed, 441 unchanged (31% of the section changed)

3 unchanged sentences

(unaudited, in thousands, except per share data)

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Current assets:

47 unchanged sentences

(unaudited, in thousands except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Transportation $ 4,084,827 $ 6,465,642 $ 8,412,792 $ 12,993,993

12 unchanged sentences

Net income 97,316 348,185 212,207 618,533

Other comprehensive income 2,477 6,870

Other comprehensive loss ( 6,536 ) ( 33,596 ) ( 4,059 ) ( 26,726 )

Comprehensive income $ 90,780 $ 314,589 $ 208,148 $ 591,807

23 unchanged sentences

Balance March 31, 2023 116,437 11,644 730,363 5,631,750 ( 86,383 ) ( 4,905,986 ) 1,381,388

Net income 97,316 97,316

Foreign currency adjustments ( 6,536 ) ( 6,536 )

Dividends declared, $ 0.61 per share

( 73,577 ) ( 73,577 )

Stock issued for employee benefit plans 228 22 ( 2,154 ) 17,338 15,206

Stock-based compensation expense — — 6,035 — 6,035

Repurchase of common stock ( 330 ) ( 33 ) ( 31,692 ) ( 31,725 )

Balance June 30, 2023 116,335 $ 11,633 $ 734,244 $ 5,655,489 $ ( 92,919 ) $ ( 4,920,340 ) $ 1,388,107

Outstanding Amount Additional

13 unchanged sentences

Balance March 31, 2022 128,011 12,801 680,857 5,134,667 ( 54,264 ) ( 3,678,559 ) 2,095,502

Net income 348,185 348,185

Foreign currency adjustments ( 33,596 ) ( 33,596 )

Dividends declared, $ 0.55 per share

( 71,506 ) ( 71,506 )

Stock issued for employee benefit plans 316 31 377 20,478 20,886

Stock-based compensation expense — — 27,929 — 27,929

Repurchase of common stock ( 3,211 ) ( 320 ) ( 334,665 ) ( 334,985 )

Balance June 30, 2022 125,116 $ 12,512 $ 709,163 $ 5,411,346 $ ( 87,860 ) $ ( 3,992,746 ) $ 2,052,415

See accompanying notes to the condensed consolidated financial statements.

2 unchanged sentences

(unaudited, in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

17 unchanged sentences

Other assets and liabilities 2,035 ( 1,886 )

Net cash provided by (used for) operating activities 254,544 ( 13,928 )

Net cash provided by operating activities 479,376 251,329

INVESTING ACTIVITIES

11 unchanged sentences

Payments on short-term borrowings ( 2,099,750 ) ( 2,586,000 )

Net cash (used for) provided by financing activities ( 205,992 ) 21,770

Net cash used for financing activities ( 432,118 ) ( 257,177 )

Effect of exchange rates on cash and cash equivalents ( 3,284 ) ( 6,445 )

22 unchanged sentences

RECENTLY ISSUED ACCOUNTING STANDARDS

For the three months ended March 31, 2023, there were no recently issued or newly adopted accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements.

For the six months ended June 30, 2023, there were no recently issued or newly adopted accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

5 unchanged sentences

Foreign currency translation ( 1,853 ) 224 223 ( 1,406 )

Balance, March 31, 2023 $ 1,187,211 $ 206,597 $ 76,878 $ 1,470,686

Balance, June 30, 2023 $ 1,186,223 $ 206,413 $ 76,771 $ 1,469,407

Goodwill is tested at least annually for impairment on November 30, or more frequently if events or changes in circumstances indicate that the asset might be impaired.

1 unchanged sentence

If the Step Zero Analysis indicates it is more likely than not that the fair value of our reporting units is less than their respective carrying value, an additional impairment assessment is performed (“Step One Analysis”).

As part of our Step Zero Analysis, we determined that more likely than not criteria had not been met, and therefore a Step One Analysis was not required as of March 31, 2023.

As part of our Step Zero Analysis, we determined that more likely than not criteria had not been met, and therefore a Step One Analysis was not required as of June 30, 2023.

Identifiable intangible assets consisted of the following (in thousands):

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Cost Accumulated Amortization Net Cost Accumulated Amortization Net

5 unchanged sentences

Amortization expense for other intangible assets is as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Amortization expense $ 5,773 $ 5,957 $ 11,588 $ 11,991

Finite-lived intangible assets, by reportable segment, as of March 31, 2023, will be amortized over their remaining lives as follows (in thousands):

Finite-lived intangible assets, by reportable segment, as of June 30, 2023, will be amortized over their remaining lives as follows (in thousands):

NAST Global Forwarding All Other and Corporate Total

12 unchanged sentences

A financial asset or liability’s classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.

We had no Level 3 assets or liabilities as of and during the periods ended March 31, 2023 and December 31, 2022.

We had no Level 3 assets or liabilities as of and during the periods ended June 30, 2023 and December 31, 2022.

There were no transfers between levels during the period.

2 unchanged sentences

Average interest rate as of Carrying value as of

March 31, 2023 December 31, 2022 Maturity March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022 Maturity June 30, 2023 December 31, 2022

Revolving credit facility 6.22 % — % November 2027 $ 141,000 $ —

15 unchanged sentences

Borrowings under the Credit Agreement generally bear interest at a variable rate determined by a pricing schedule or the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50 percent, or (c) the sum of one-month SOFR plus a specified margin).

As of March 31, 2023, the variable rate equaled SOFR and a Credit Spread Adjustment of 0.10 percent plus 1.0 percent.

As of June 30, 2023, the variable rate equaled SOFR and a Credit Spread Adjustment of 0.10 percent plus 1.0 percent.

In addition, there is a commitment fee on the average daily undrawn stated amount under the facility ranging from 0.07 percent to 0.15 percent.

5 unchanged sentences

On May 6, 2022, we entered into an unsecured revolving credit facility (the “364-day Credit Agreement”) with a total availability of $ 500 million and a maturity date of May 5, 2023.

Borrowings under the 364-day Credit Agreement generally bear interest at an alternate base rate plus a margin or a term SOFR-based rate plus a margin of 0.625 percent to 1.25 percent.

The alternate base rate is determined by a pricing schedule (which is the highest of (a) 0 percent , (b) U.S.

Bank’s prime rate, (c) the federal funds effective rate plus 0.50 percent, or (d) a term SOFR-based rate plus 1.00 percent).

In addition, there is a commitment fee on the aggregate unused commitments under the 364-day Credit Agreement ranging from 0.05 percent to 0.175 percent per annum.

The recorded amount of borrowings outstanding approximates fair value because of the short maturity period of the debt.

The 364-day Credit Agreement contains various restrictions and covenants that require us to maintain certain financial ratios, including an initial maximum leverage ratio of 3.00 to 1.00.

The 364-day Credit Agreement also contains customary events of default.

The interest rate on borrowings under the 364-day Credit Agreement was based an alternate base rate plus a margin or a term SOFR-based rate plus a margin.

There was also a commitment fee on the aggregate unused commitments under the facility.

The facility expired on May 5, 2023, and it was not renewed.

NOTE PURCHASE AGREEMENT

2 unchanged sentences

Interest on the Notes is payable semi-annually in arrears.

The fair value of the Notes approximated $ 476.5 million on March 31, 2023.

The fair value of the Notes approximated $ 472.4 million on June 30, 2023.

We estimate the fair value of the Notes primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities and considering our own risk.

If the Notes were recorded at fair value, they would be classified as Level 2.

Series A matures in August 2023 and is classified as current portion of debt in our Condensed Consolidated Balance Sheets as of March 31, 2023.

Series A matures in August 2023 and is classified as current portion of debt in our Condensed Consolidated Balance Sheets as of June 30, 2023.

The Note Purchase Agreement contains various restrictions and covenants that require us to maintain certain financial ratios, including a maximum leverage ratio of 3.50 to 1.00, a minimum interest coverage ratio of 2.00 to 1.00, and a maximum consolidated priority debt to consolidated total asset ratio of 10 percent.

11 unchanged sentences

The Receivables Securitization Facility is based on the securitization of our U.S.

trade accounts receivable with a total availability of $ 500 million as of March 31, 2023.

trade accounts receivable with a total availability of $ 500 million as of June 30, 2023.

The interest rate on borrowings under the Receivables Securitization Facility is based on Bloomberg Short Term Bank Yield Index (“BSBY”) plus a margin.

10 unchanged sentences

Taking into effect the amortization of the original issue discount and all underwriting and issuance expenses, the Senior Notes have an effective yield to maturity of approximately 4.39 percent per annum.

The fair value of the Senior Notes, excluding debt discounts and issuance costs, approximated $ 578.0 million as of March 31, 2023, based primarily on the market prices quoted from external sources.

The carrying value of the Senior Notes was $ 595.3 million as of March 31, 2023.

The fair value of the Senior Notes, excluding debt discounts and issuance costs, approximated $ 575.9 million as of June 30, 2023, based primarily on the market prices quoted from external sources.

The carrying value of the Senior Notes was $ 595.5 million as of June 30, 2023.

We may redeem the Senior Notes, in whole or in part, at any time and from time to time prior to their maturity at the applicable redemption prices described in the Senior Notes.

7 unchanged sentences

In addition to the above financing agreements, we have a $ 15 million discretionary line of credit with U.S.

Bank of which $ 9.9 million is currently utilized for standby letters of credit related to insurance collateral as of March 31, 2023.

These standby letters of credit are renewed annually and were undrawn as of March 31, 2023.

Bank of which $ 9.9 million is currently utilized for standby letters of credit related to insurance collateral as of June 30, 2023.

These standby letters of credit are renewed annually and were undrawn as of June 30, 2023.

A reconciliation of the provision for income taxes using the statutory federal income tax rate to our effective income tax rate is as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 %

6 unchanged sentences

Effective income tax rate 14.9 % 21.3 % 14.1 % 20.0 %

In the quarter ended March 31, 2023, management made the determination that it is no longer indefinitely reinvested with regard to the unremitted earnings of any foreign subsidiaries although it remains indefinitely reinvested related to other taxable differences that may exist with regard to these subsidiaries.

The change results in a one-time increase to tax expense of approximately $ 2.0 million.

As of March 31, 2023, we have $ 42.0 million of unrecognized tax benefits and related interest and penalties.

It is possible the amount of unrecognized tax benefit could change in the next 12 months as a result of a lapse of the statute of limitations and settlements with taxing authorities.

During the first quarter of 2023, management made the determination that the company is no longer indefinitely reinvested with regard to the unremitted earnings of any foreign subsidiaries although it remains indefinitely reinvested related to other taxable differences that may exist with regard to these subsidiaries.

The change resulted in a one-time increase to tax expense of approximately $ 2.0 million in the six months ended June 30, 2023.

As of June 30, 2023, we have $ 43.3 million of unrecognized tax benefits and related interest and penalties.

It is possible the amount of unrecognized tax benefit could change in the next 12 months as a result of a lapse of the statute of limitations, new information, or settlements with taxing authorities.

The total liability for unrecognized tax benefits is expected to decrease by approximately $ 1.3 million in the next 12 months due to the lapsing of statutes of limitations.

7 unchanged sentences

A summary of our total compensation expense recognized in our condensed consolidated statements of operations and comprehensive income for stock-based compensation is as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Stock options $ 2,242 $ 3,263 $ 4,460 $ 6,482

5 unchanged sentences

Shares subject to awards under the Plan or certain of our prior plans that expire or are canceled without delivery of shares or that are settled in cash generally become available again for issuance under the Plan.

There were 3,227,872 shares available for stock awards under the Plan as of March 31, 2023.

There were 3,283,750 shares available for stock awards under the Plan as of June 30, 2023.

Stock Options - We have awarded stock options to certain key employees that vest primarily based on their continued employment.

2 unchanged sentences

These grants are being expensed based on the terms of the awards.

As of March 31, 2023, unrecognized compensation expense related to stock options was $ 11.2 million.

As of June 30, 2023, unrecognized compensation expense related to stock options was $ 8.9 million.

Stock Awards - We have awarded performance-based restricted shares, performance-based restricted stock units (“PSUs”), and time-based restricted stock units.

21 unchanged sentences

These awards have been expensed on the date of grant.

As of March 31, 2023, there was unrecognized compensation expense of $ 226.3 million related to previously granted stock awards assuming maximum achievement is obtained on our PSUs.

The amount of future expense to be recognized will be based

on the passage of time, and contingent upon obtaining certain dilutive earnings per share, adjusted gross profits, and adjusted operating margin targets, and certain other conditions.

As of June 30, 2023, there was unrecognized compensation expense of $ 242.7 million related to previously granted stock awards assuming maximum achievement is obtained on our PSUs.

The amount of future expense to be recognized will be based on the passage of time, and contingent upon obtaining certain targets mentioned above over their respective performance period.

Employee Stock Purchase Plan - Our 1997 Employee Stock Purchase Plan (“ESPP”) allows our employees to contribute up to $ 10,000 of their annual cash compensation to purchase company stock.

2 unchanged sentences

The following is a summary of the employee stock purchase plan activity (dollars in thousands):

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Shares purchased

19 unchanged sentences

Europe Surface Transportation provides transportation and logistics services including truckload and groupage services across Europe.

The internal reporting of segments is defined, based in part, on the reporting and review process used by our chief operating decision maker (“CODM”), our Interim Chief Executive Officer.

The internal reporting of segments is defined, based in part, on the reporting and review process used by our chief operating decision maker (“CODM”), our Chief Executive Officer.

The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies located in Note 1 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022.

2 unchanged sentences

NAST Global Forwarding All Other and Corporate Consolidated

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Total revenues $ 3,079,268 $ 779,867 $ 562,721 $ 4,421,856

5 unchanged sentences

NAST Global Forwarding All Other and Corporate Consolidated

Three Months Ended March 31, 2022

Three Months Ended June 30, 2022

Total revenues $ 4,147,046 $ 2,093,190 $ 558,239 $ 6,798,475

Income from operations 276,499 167,557 25,609 469,665

Depreciation and amortization 6,123 5,471 11,668 23,262

Total assets (1)

3,688,215 2,851,114 918,110 7,457,439

Average employee headcount 7,552 5,759 4,582 17,893

NAST Global Forwarding All Other and Corporate Consolidated

Six Months Ended June 30, 2023

Total revenues $ 6,383,455 $ 1,569,845 $ 1,080,226 $ 9,033,526

Income (loss) from operations 251,881 59,763 ( 17,988 ) 293,656

3 unchanged sentences

Average employee headcount 6,713 5,356 4,454 16,523

NAST Global Forwarding All Other and Corporate Consolidated

Six Months Ended June 30, 2022

Total revenues $ 8,261,935 $ 4,287,587 $ 1,064,906 $ 13,614,428

Income from operations 458,853 335,195 21,091 815,139

Depreciation and amortization 12,362 11,026 22,360 45,748

Total assets (1)

3,688,215 2,851,114 918,110 7,457,439

Average employee headcount 7,442 5,690 4,422 17,554

_________________________________________

(1) All cash and cash equivalents are included in All Other and Corporate.

1 unchanged sentence

A summary of our total revenues disaggregated by major service line and timing of revenue recognition is presented below for each of our reportable segments (in thousands):

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

NAST Global Forwarding All Other and Corporate Total

4 unchanged sentences

Total $ 3,079,268 $ 779,867 $ 562,721 $ 4,421,856

Three Months Ended March 31, 2022

Three Months Ended June 30, 2022

NAST Global Forwarding All Other and Corporate Total

4 unchanged sentences

Total $ 4,147,046 $ 2,093,190 $ 558,239 $ 6,798,475

Six Months Ended June 30, 2023

NAST Global Forwarding All Other and Corporate Total

Major Service Lines

Transportation and logistics services (1)

$ 6,383,455 $ 1,569,845 $ 459,492 $ 8,412,792

— — 620,734 620,734

Total $ 6,383,455 $ 1,569,845 $ 1,080,226 $ 9,033,526

Six Months Ended June 30, 2022

NAST Global Forwarding All Other and Corporate Total

Major Service Lines

Transportation and logistics services (1)

$ 8,261,935 $ 4,287,587 $ 444,471 $ 12,993,993

— — 620,435 620,435

Total $ 8,261,935 $ 4,287,587 $ 1,064,906 $ 13,614,428

____________________________________________

(1) Transportation and logistics services performance obligations are completed over time.

(2) Sourcing performance obligations are completed at a point in time.

We typically do not receive consideration and amounts are not due from our customers prior to the completion of our performance obligation and as such contract liabilities, as of March 31, 2023, and revenue recognized in the three months ended March 31, 2023 and 2022 resulting from contract liabilities, were not significant.

Contract assets and accrued expenses-transportation expense fluctuate from period to period primarily based upon shipments in-transit at period end and the timing of customer invoicing.

We typically do not receive consideration and amounts are not due from our customers prior to the completion of our performance obligation and as such contract liabilities, as of June 30, 2023, and revenue recognized in the three and six months ended June 30, 2023 and 2022 resulting from contract liabilities, were not significant.

Contract assets and accrued expenses-transportation expense fluctuate from period to period primarily based upon changes in transportation pricing and costs and shipments in-transit at period end and the timing of customer invoicing.

We determine if our contractual agreements contain a lease at inception.

15 unchanged sentences

We have lease agreements with lease components (e.g., payments for rent) and non-lease components (e.g., payments for common area maintenance and parking), which are all accounted for as a single lease component.

We do not have material lease agreements that have not yet commenced that are expected to create significant rights or obligations as of March 31, 2023.

Information regarding lease expense, remaining lease term, discount rate, and other select lease information is presented below as of March 31, 2023 and December 31, 2022, and for the three months ended March 31, 2023 and 2022, is as follows (dollars in thousands):

Three Months Ended March 31,

We do not have material lease agreements that have not yet commenced that are expected to create significant rights or obligations as of June 30, 2023.

Information regarding lease expense, remaining lease term, discount rate, and other select lease information are presented below (dollars in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Lease Costs 2023 2022 2023 2022

2 unchanged sentences

Total lease expense $ 26,259 $ 24,219 $ 52,326 $ 48,324

Three Months Ended March 31,

Six Months Ended June 30,

Other Lease Information 2023 2022

1 unchanged sentence

Right-of-use lease assets obtained in exchange for new lease liabilities 14,204 87,554

Lease Term and Discount Rate As of March 31, 2023 As of December 31, 2022

Lease Term and Discount Rate As of June 30, 2023 As of December 31, 2022

Weighted average remaining lease term (in years) 6.2 6.4

Weighted average discount rate 3.6 % 3.5 %

The maturities of lease liabilities as of March 31, 2023, were as follows (in thousands):

The maturities of lease liabilities as of June 30, 2023, were as follows (in thousands):

Maturity of Lease Liabilities Operating Leases

5 unchanged sentences

ALLOWANCE FOR CREDIT LOSSES

Our allowance for credit losses is computed using a number of factors including our past credit loss experience, the aging of amounts due from our customers, and our customers' credit ratings, in addition to other customer-specific factors.

Our allowance for credit losses is computed using a number of factors including our past credit loss experience and our customers' credit ratings, in addition to other customer-specific factors.

We have also considered recent trends and developments related to the current macroeconomic environment in determining our ending allowance for credit losses for both accounts receivable and contract assets.

The allowance for credit losses on contract assets was not significant as of March 31, 2023.

The allowance for credit losses on contract assets was not significant as of June 30, 2023.

A rollforward of our allowance for credit losses on our accounts receivable balance is presented below (in thousands):

2 unchanged sentences

Write-offs ( 6,164 )

Balance, March 31, 2023 $ 18,567

Recoveries of amounts previously written off were not significant for the three months ended March 31, 2023.

Balance, June 30, 2023 $ 14,461

Recoveries of amounts previously written off were not significant for the three and six months ended June 30, 2023.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss is included in Stockholders' Investment on our condensed consolidated balance sheets.

The recorded balance on March 31, 2023 and December 31, 2022, was $ 86.4 million and $ 88.9 million, respectively.

The recorded balance on March 31, 2023 and December 31, 2022 is comprised solely of foreign currency adjustments, including foreign currency translation.

Other comprehensive income was $ 2.5 million for the three months ended March 31, 2023, primarily driven by fluctuations in the Euro.

Other comprehensive income was $ 6.9 million for the three months ended March 31, 2022, primarily driven by fluctuations in the Australian Dollar and Singapore Dollar.

The recorded balance on June 30, 2023 and December 31, 2022, was $ 92.9 million and $ 88.9 million, respectively.

The recorded balance on June 30, 2023 and December 31, 2022, is comprised solely of foreign currency adjustments, including foreign currency translation.

Other comprehensive loss was $ 6.5 million for the three months ended June 30, 2023, primarily driven by fluctuations in the Yuan and Singapore Dollar.

Other comprehensive loss was $ 33.6 million for the three months ended June 30, 2022, primarily driven by fluctuations in the Singapore Dollar, Australian Dollar and the Yuan.

Other comprehensive loss was $ 4.1 million for the six months ended June 30, 2023, primarily driven by fluctuations in the Singapore Dollar, Yuan, and Australian Dollar partially offset by the Euro.

Other comprehensive loss was $ 26.7 million for the six months ended June 30, 2022, primarily driven by fluctuations in the Singapore Dollar, Yuan, and Australian Dollar.

RESTRUCTURING

1 unchanged sentence

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 recognized additional restructuring charges of $ 14.1 million in the second 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.

For severance and other operating expenses related to restructuring activities, we paid $ 12.0 million in cash in the second quarter of 2023 with the majority of the remaining $ 8.7 million accrued as of June 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

Severance (1)

$ 11,681 $ 14,819

Other personnel expenses (1)

2 unchanged sentences

________________________________

(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):

(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 (dollars in thousands):

Three Months Ended June 30, 2023

NAST Global Forwarding All Other and Corporate Consolidated

1 unchanged sentence

Other selling, general, and administrative expenses 4 39 962 1,005

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:

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 restructuring initiatives and reserves included in our consolidated balance sheets as of December 31, 2022 and June 30, 2023:

Accrued Severance and Other Personnel Expenses Accrued Other Selling, General, and Administrative Expenses Total

2 unchanged sentences

Cash payments ( 26,906 ) ( 310 ) ( 27,216 )

Settled non-cash — ( 819 ) ( 819 )

Accrual adjustments (1)

Balance, March 31, 2023 $ 7,401 $ 124 $ 7,525

( 122 ) — ( 122 )

Balance, June 30, 2023 $ 8,673 $ — $ 8,673

________________________________

(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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements