Restructuring and Other Transformation Charges

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Other Transformation Charges

RESTRUCTURING AND OTHER TRANSFORMATION

PROJECT MATTERHORN

In September 2022, we announced Project Matterhorn, our global program designed to accelerate the growth of our business. Project Matterhorn investments will focus on transforming our operating model to a global operating model. Project Matterhorn will focus on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers' needs. We will be investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate. We expect to incur approximately $150,000 in costs annually related to Project Matterhorn from 2023 through 2025. Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement our growth initiatives. Total costs related to Project Matterhorn during the year ended December 31, 2022 were approximately $41,933 and are included in Restructuring and other transformation in our Consolidated Statement of Operations. There were no Restructuring and other transformation costs related to Project Matterhorn for the years ended December 31, 2021 or 2020.

Restructuring and other transformation related to Project Matterhorn included in the accompanying Consolidated Statement of Operations for the year ended December 31, 2022, is as follows:


	YEAR ENDED DECEMBER 31, 2022
Restructuring	$	13,292
Other transformation	28,641
Restructuring and other transformation	$	41,933

Restructuring costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Consolidated Statement of Operations, by segment for the year ended December 31, 2022 are as follows:


	YEAR ENDED DECEMBER 31, 2022
Global RIM Business	$	13,083
Global Data Center Business	—
Corporate and Other	209
Total restructuring costs	$	13,292

PROJECT SUMMIT

In October 2019, we announced Project Summit, our global program designed to better position us for future growth and achievement of our strategic objectives. We expanded Project Summit during the first quarter of 2020 to include additional opportunities to streamline our business and operations, as well as accelerated the timing of certain opportunities previously identified. As of December 31, 2021, we completed Project Summit. As a result of the program, we simplified our global structure, rebalanced resources to focus on higher growth areas, realigned our management structure to create a more dynamic, agile organization, made investments to enhance the customer experience and leveraged new technology solutions that enabled us to modernize our service delivery model and more efficiently utilize our fleet, labor and real estate.

The implementation of Project Summit resulted in total restructuring costs of approximately $450,000 that primarily consisted 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 assisted with the design and execution of various initiatives as well as project management activities and (iv) system implementation and data conversion costs.

Restructuring costs for Project Summit are included as a component of Restructuring and other transformation in the accompanying Consolidated Statements of Operations for the years ended December 31, 2021 and 2020, and from the inception of Project Summit through December 31, 2021 is as follows:


	YEAR ENDED DECEMBER 31, 2021		YEAR ENDED DECEMBER 31, 2020		FROM INCEPTION OF PROJECT SUMMIT THROUGH DECEMBER 31, 2021
Employee severance	$	22,809	$	47,349	$	91,008
Professional fees and other	183,617		147,047		358,411
Total restructuring costs	$	206,426	$	194,396	$	449,419

As Project Summit was completed as of December 31, 2021, there were no restructuring costs for Project Summit for the year ended December 31, 2022.

Restructuring costs for Project Summit included in the accompanying Consolidated Statements of Operations by segment for the years ended December 31, 2021, and 2020 are as follows:


	YEAR ENDED DECEMBER 31, 2021		YEAR ENDED DECEMBER 31, 2020		FROM INCEPTION OF PROJECT SUMMIT THROUGH DECEMBER 31, 2021
Global RIM Business	$	59,033	$	67,140	$	148,073
Global Data Center Business	3,062		1,632		5,000
Corporate and Other	144,331		125,624		296,346
Total restructuring costs	$	206,426	$	194,396	$	449,419

A rollforward of the accrued restructuring costs, which is included as a component of Accrued expenses and other current liabilities in our Consolidated Balance Sheets for December 31, 2021 through December 31, 2022, is as follows:


	EMPLOYEE SEVERANCE		PROFESSIONAL FEES AND OTHER		TOTAL ACCRUED RESTRUCTURING COSTS





Balance as of December 31, 2020	$	16,278	$	23,775	$	40,053
Amounts accrued	22,809		183,617		206,426
Payments	(29,956)		(199,664)		(229,620)
Other, including currency translation adjustments	2,858		—		2,858
Balance as of December 31, 2021	$	11,989	$	7,728	$	19,717

Payments	(11,989)		(7,728)		(19,717)
Balance as of December 31, 2022	$	—	$	—	$	—