REGAL REXNORD CORP

Notes to the Consolidated Financial Statements

(Dollars In Millions Except Per Share Data, Unless Otherwise Noted)

(1)Nature of Operations

Regal Rexnord Corporation (the “Company”) is a United States-based multi-national corporation. The Company and its associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company’s electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmit motion to power industrial applications. Our automation offering, comprised of controls, actuators, drives, and small, precision motors control motion in applications ranging from factory automation to providing precision control in surgical tools. The Company operates through itsthree segments: Industrial Powertrain Solutions ("IPS"), Power Efficiency Solutions ("PES") and Automation & Motion Control ("AMC"). See Note 5 - Segment Information.

The sale of the industrial motors and generators businesses, which closed on April 30, 2024 as further described in Note 3 – Acquisitions and Divestitures, did not represent a strategic shift that will have a major effect on the Company's operations and financial results and, therefore, did not qualify for presentation as discontinued operations. The assets and liabilities related to these businesses were presented as Assets Held for Sale, Noncurrent Assets Held for Sale, Liabilities Held for Sale and Noncurrent Liabilities Held for Sale on the Company's Condensed Consolidated Balance Sheet as of December 31, 2023. Results for the industrial motors and generators businesses are included in Regal Rexnord's results and related disclosures through the close of sale on April 30, 2024.