In connection with our Sunbelt 4.0 strategic priorities for the U.K. segment, we initiated an operational restructuring during the second quarter of fiscal year 2026. The restructuring activities include the consolidation of certain regional operations, actions to enhance cost efficiency, and steps to exit non‑core assets. As part of this plan, we completed the sale of our U.K. Hoist business in October 2025 for proceeds of $16 million. In total, these activities have resulted in the recognition of $44 million of non‑recurring costs in the income statement in fiscal year 2026, with no further significant cost expected in fiscal year 2027.

Year Ended April 30,

(In millions)

2026

Classification

Expense Type

Cost of equipment rentals, excluding depreciation

Employee related cost

Fixed asset related cost

Depreciation of rental equipment

Fixed asset related cost

Cost of rental equipment sales

Fixed asset related cost

Cost of sales of new equipment, merchandise and consumables

Fixed asset related cost

Selling, general and administrative expense

Miscellaneous cost including professional fees

Non-rental depreciation and amortization

Facility related cost

Other (income) expense, net

Loss on disposal

Total restructuring cost

Restructuring costs that result in liabilities are primarily related to employee-related costs and other exit costs. The table below presents the components of the restructuring liabilities.


(In millions)	Employee Related Cost		Other Restructuring Cost		Total Restructuring Cost
Liability balance as of April 30, 2025	$	—	$	—	$	—
Net charges to earnings	8		1		9
Cash paid	(5)		—		(5)

Liability balance as of April 30, 2026	$	3	$	1	$	4

The accruals related to the restructuring costs have been presented in “Accrued expenses and other liabilities” in the Company's consolidated balance sheets.