Project Summit

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

In October 2019, we announced our global program designed to better position us for future growth and achievement of our strategic objectives (“Project Summit”). Since Project Summit was announced, we have identified additional opportunities to streamline our business and operations, as well as accelerated the timing of certain opportunities previously identified. Such opportunities include leveraging new technology solutions to enable us to modernize our service delivery model and more efficiently utilize our fleet, labor and real estate, which has broadened the initial scope of Project Summit. The activities associated with Project Summit began in the fourth quarter of 2019 and are expected to be substantially complete by the end of 2021.

Including the expanded scope of Project Summit, we estimate that the implementation of Project Summit will result in total costs of approximately $450,000, which includes (1) operating expenditures (“Restructuring Charges”) that primarily consist of: (i) employee severance costs; (ii) internal costs associated with the development and implementation of Project Summit initiatives; (iii) professional fees, primarily related to third party consultants who are assisting with the design and execution of various initiatives as well as project management activities and (iv) system implementation and data conversion costs, and (2) capital expenditures. For the three and nine months ended September 30, 2020, Restructuring Charges primarily related to employee severance costs, internal costs associated with the development and implementation of Project Summit initiatives and professional fees.

Restructuring Charges included in the accompanying Condensed Consolidated Statements of Operations by segment for the three and nine months ended September 30, 2020 and from the inception of Project Summit through September 30, 2020 are as follows:


	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020		From the inception of Project Summit through September 30, 2020
Global RIM Business	$	16,183	$	37,245	$	59,145
Global Data Center Business	296		986		1,292
Corporate and Other Business	31,892		90,484		116,875
Restructuring Charges	$	48,371	$	128,715	$	177,312

A rollforward of the accrued Restructuring Charges, which is included as a component of Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheet, for the nine months ended September 30, 2020 is as follows:



Balance as of December 31, 2019(1)	$	17,777
Amounts accrued	128,715

Payments	(97,646)
Other, including currency translation adjustments	(3,604)
Balance as of September 30, 2020(2)	$	45,242

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(1) Accrued Restructuring Charges at December 31, 2019 consist of approximately $13,000 of accrued professional fees and approximately $4,800 of accrued employee severance costs.

(2) Accrued Restructuring Charges at September 30, 2020 consist of approximately $33,400 of accrued professional fees and approximately $11,800 of accrued employee severance costs.