14. Exceptional items and other adjustments made to derive Benchmark PBT – continuing operations
(a) Net charge for Exceptional items and other adjustments made to derive Benchmark PBT
| Notes | 2022 US$m | 2021 US$m | |
| Exceptional items: | |||
| Loss on disposal of business | 14(b), 20(a), 43 | 43 | — |
| Net profit on disposal of associates | 14(c), 23 | (90) | (120) |
| Restructuring costs | 14(d) | 20 | 50 |
| Impairment of intangible assets1 | 14(e) | — | 27 |
| Legal provisions movements1 | 14(f) | 6 | 8 |
| Net credit for Exceptional items | (21) | (35) | |
| Other adjustments made to derive Benchmark PBT: | |||
| Amortisation of acquisition intangibles | 12, 21 | 174 | 138 |
| Impairment of goodwill1 | 20 | — | 53 |
| Acquisition and disposal expenses2 | 47 | 41 | |
| Adjustment to the fair value of contingent consideration1 | 26 | 1 | |
| Non-benchmark share of post-tax loss/(profit) of associates | 23 | 31 | (16) |
| Interest on uncertain tax provisions | 15(c) | (1) | 11 |
| Financing fair value remeasurements | 15(c) | (168) | (5) |
| Net charge for other adjustments made to derive Benchmark PBT | 109 | 223 | |
| Net charge for Exceptional items and other adjustments made to derive Benchmark PBT | 88 | 188 | |
| By income statement caption: | |||
| Labour costs | 11 | 30 | |
| Amortisation and depreciation charges | 174 | 138 | |
| Other operating charges | 88 | 150 | |
| Loss on disposal of business | 43 | — | |
| Net profit on disposal of associates | (90) | (120) | |
| Within operating profit | 226 | 198 | |
| Within share of post-tax loss/(profit) of associates | 31 | (16) | |
| Within finance expense | 15(a) | (169) | 6 |
| Net charge for Exceptional items and other adjustments made to derive Benchmark PBT | 88 | 188 |
1 Included in other operating charges.
2 Acquisition and disposal expenses represent professional fees and expenses associated with completed, ongoing and terminated acquisition and disposal processes, as well as the integration and separation costs associated with completed deals. Of the total, US$9m (2021: US$2m) is recorded within labour costs in the Group income statement, and US$38m (2021: US$39m) is included within other operating charges.
(b) Loss on disposal of business
During the year we have ceased the operations of a small UK subsidiary undertaking whose principal business activity was the provision and support of decision analytics software to corporate clients in Russia. As a result of recent geopolitical tensions we no longer continue to operate in the region, and consequently the related business and assets have been written off, resulting in a loss of US$43m.
(c) Net profit on disposal of associates
On 4 February 2022, Vector CM Holdings (Cayman) L.P., an associate undertaking, completed a merger with the CM Group involving its Cheetah Digital business. As a result of the merger, the Group no longer has significant influence over Vector and accordingly our interest in this company has been recognised as a trade investment from that date. We recognised a fair value gain on the associate disposal of US$95m and the promissory note and associated interest due to Experian of US$110m were also repaid.
We no longer have significant influence over our Russian associate United Credit Bureau, and consequently have recognised a disposal, writing off our investment, recording a loss of US$17m.
In the year ended 31 March 2021, the Group disposed of its 18.6% interest in Finicity Corporation for US$127m recognising a gain on disposal of US$120m. During the year ended 31 March 2022 further consideration of US$12m was received in respect of earnout arrangements, the payout of which was not anticipated at 31 March 2021.
(d) Restructuring costs
Costs of US$20m have been recognised in the year associated with a strategic review and early planning for restructuring, and the refocussing of activities in EMEA/Asia Pacific. Of the charge, US$2m was labour related, and US$18m is included within other operating charges in the Group income statement. The associated cash outflow was US$14m.
A charge of US$50m was incurred in the year ended 31 March 2021, in respect of a transformation programme principally in the UK and Ireland, with a related cash outflow of US$39m. Of the charge, US$28m related to redundancy costs, and US$22m related to other restructuring and consultancy costs included within other operating charges in the Group income statement.
(e) Impairment of intangible assets
During the year ended 31 March 2021 internally generated software assets with a net book value of US$27m were identified as requiring impairment due to the upgrade of our technology estate.
(f) Legal provisions movements
During the current and prior year there was an increase in provisions in respect of a number of historical legal claims, some of which are in the process of being settled.