OTHER ITEMS IMPACTING COMPARABILITY

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Our primary measure of segment performance as shown in Note 3, "Segment Reporting," excludes certain items we do not believe are representative of the ongoing operations of the segment. Excluding these items from our segment measure of performance allows for better year over year comparison:


	Years ended December 31,
(In millions)	2022		2021		2020
Restructuring and other, net	$	2	$	19	$	77
ERP implementation costs	—		13		34
Restructuring and other items, net	2		32		111


Gains on sale of U.K. revenue earning equipment	(49)		—		—
Gains on sale of properties	(36)		(42)		(6)
Early redemption of medium-term notes	—		—		9
ChoiceLease liability insurance revenue (1)	—		—		(24)
Other items impacting comparability, net	$	(83)	$	(10)	$	90

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(1) Refer to Note 3, "Segment Reporting," for additional information.

In 2022, 2021 and 2020, other items impacting comparability included:

•Restructuring and other, net — In 2022, this item primarily included the recovery of $40 million related to the pursuit of a discrete commercial claim, partially offset by professional fees incurred to pursue the claim of approximately $28 million. Restructuring and other, net also included $12 million of U.K. severance costs as part of our plan to exit the FMS U.K. business and $6 million of transaction costs primarily related to the acquisition of Whiplash.

In 2021, this item primarily included transaction costs related to the acquisitions of Midwest Warehouse and Distribution (Midwest) and Whiplash and $8 million of severance costs incurred as part of our plan to exit the FMS U.K. business. Restructuring and other, net in 2021 also includes professional fees related to the pursuit of a discrete commercial claim and the offsetting related recovery of the claim during 2021.

In 2020, this item primarily included expenses of $44 million associated with our discontinued ChoiceLease liability insurance program, professional fees related to the pursuit of a commercial claim and expenses related to the shutdown of several leased locations in the North America and U.K. FMS operations. We completed the exit of the ChoiceLease liability insurance program in the first quarter of 2021. In addition, we recorded severance costs of $13 million in 2020 related to actions to reduce headcount, primarily in our North American and U.K. FMS operations.

•ERP implementation costs — This item relates to charges in connection with the implementation of an Enterprise Resource Planning (ERP) system. In July 2020, we went live with the first module of our ERP system for human resources. In April 2021, we went live with the financial module to replace the existing core financial system.

•Gains on sale of U.K. revenue earning equipment and properties — In 2022, we recorded gains on the sale of U.K. revenue earning equipment and properties as part of our plan to exit the FMS U.K. business. We recorded gains on sale of properties in 2021 and 2020, on the sale of certain FMS maintenance properties in the U.K. and U.S. that were restructured as part of cost reduction activities in prior periods. The gains on sale of U.K. revenue earning equipment are reflected within "Used vehicle sales, net" and the gains on sale of properties are reflected within "Miscellaneous income, net" in our Consolidated Statements of Earnings.

•Early redemption of medium-term notes — We recognized a charge related to the early redemption of two medium term-notes in the fourth quarter of 2020. This charge is reflected within "Interest expense" in the Consolidated Statements of Earnings.

The following table summarizes the activities within, and components of, restructuring liabilities for 2022:


(In millions)	December 31, 2022

Balance as of beginning of period	$	10
Workforce reduction charges	10
Utilization (1)	(7)
Balance as of end of period (2)	$	13

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(1)Principally represents cash payments.

(2)Included in "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets.