Restructuring Costs

On September 30, 2019, the Company announced the downsizing of its unprofitable dry van business which is part of its TL segment. The downsizing includes costs associated with the reduction of dry van tractor and trailer fleets, the closing of certain terminal locations and elimination of various positions. As a result, in the third quarter of 2019, the Company recorded operations restructuring costs of $13.4 million related to fleet reductions, terminal closings, and severance costs. Fleet impairment charges totaled $10.1 million, of which $7.8 million relates to leased assets that have no expected future cash flows and will be disposed of in future periods, with the remaining $2.3 million related to tractors and trailers that are no longer being used. The remaining $3.3 million was recorded in accrued expenses and other current liabilities.

In the second quarter of 2018, the Company restructured its temperature-controlled truckload business by completing the integration of multiple operating companies into one business unit. As part of this integration, the Company also right-sized its temperature-controlled fleets, facilities, and support functions. As a result, in the second quarter of 2018, the Company recorded operations restructuring costs of $4.7 million related to fleet and facilities right-sizing and relocation costs, severance costs, and the write-down of assets to fair market value. The write-down of assets to fair market value totaled $1.3 million and was recorded to property and equipment, while the remaining $3.4 million was recorded in accrued expenses and other current liabilities. None of the remaining individual components are considered material to the overall cost.

The following is a rollforward of the Company's restructuring reserve balance as of September 30, 2019 (in thousands).



	Restructuring reserves
Beginning balance at December 31, 2018	$	544
Charges⁽¹⁾	3,280
Adjustments⁽²⁾	(79		)
Payments	(316		)
Ending balance at September 30, 2019	$	3,429

(1) Excludes $10.1 million of fleet impairment charges.

(2) The adjustment relates to the adoption of Topic 842 for lease terminations included in the restructuring reserve.

The Company also incurred corporate restructuring and restatement costs associated with legal, consulting and accounting matters, including internal and external investigations, SEC and accounting compliance, and restructuring of $4.3 million and $4.7 million for the three months ended September 30, 2019 and 2018, respectively, and $10.9 million and $15.5 million for the nine months ended September 30, 2019 and 2018, respectively. These costs are included in other operating expenses.