REGAL REXNORD CORP
For the period ended Dec 31, 2024. Filed Feb 21, 2025.
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FY2024 · Filed Feb 21, 2025
Contents
(1) Restructuring Activities
(14)Restructuring Activities
The Company incurred restructuring and restructuring-related costs on projects during 2024, 2023 and 2022. The Company has initiated restructuring plans to achieve cost synergies from procurement, distribution efficiencies, footprint rationalization and other general cost savings measures. Restructuring costs include employee termination and plant relocation costs. Restructuring-related costs include costs directly associated with actions resulting from the Company's simplification initiatives, such as asset write-downs or accelerated depreciation due to shortened useful lives in connection with site closures, discretionary employment benefit costs and other facility rationalization costs. Restructuring costs for employee termination expenses are generally recognized when the severance liability is determined to be probable of being paid and reasonably estimable while plant relocation costs and related costs are generally required to be expensed as incurred.
The following is a reconciliation of provisions and payments for the restructuring projects for 2024 and 2023:
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Beginning Balance | $29.1 | $15.1 |
| Acquisition(1) | — | 0.2 |
| Provision(2) | 41.3 | 42.2 |
| Less: Payments | 54.1 | 28.4 |
| Ending Balance | $16.3 | $29.1 |
(1) Excludes $12.4 million of severance related to the Altra Transaction, which was paid in the second quarter 2023.
(2) Excludes equipment related write-offs and restructuring related depreciation adjustments. The twelve month period ended December 31, 2023 excludes $19.3 million of accelerated depreciation.
The following is a reconciliation of expenses by type for the restructuring projects in 2024, 2023 and 2022:
| 2024 | 2023 | 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Restructuring Costs: | Cost of Sales | Operating Expenses | Total | Cost of Sales | Operating Expenses | Total | Cost of Sales | Operating Expenses | Total |
| Severance Expense | $11.2 | $14.7 | $25.9 | $12.1 | $15.2 | $27.3 | $25.1 | $6.4 | $31.5 |
| Facility Related Costs | 7.8 | 1.5 | 9.3 | 25.5 | 0.3 | 25.8 | 13.5 | 1.1 | 14.6 |
| Other Expenses | 6.5 | 2.4 | 8.9 | 7.8 | 0.6 | 8.4 | 0.3 | 0.4 | 0.7 |
| Total Restructuring Costs | $25.5 | $18.6 | $44.1 | $45.4 | $16.1 | $61.5 | $38.9 | $7.9 | $46.8 |
The following table shows the allocation of Restructuring Expenses by segment for 2024, 2023 and 2022:
| Total | Industrial Powertrain Solutions | Power Efficiency Solutions | Automation & Motion Control | Industrial Systems | |
|---|---|---|---|---|---|
| Restructuring Expenses - 2024 | $44.1 | $21.7 | $11.3 | $10.1 | $1.0 |
| Restructuring Expenses - 2023 | $61.5 | $27.0 | $30.4 | $3.2 | $0.9 |
| Restructuring Expenses - 2022 | $46.8 | $11.8 | $19.4 | $14.1 | $1.5 |
The Company expects to record aggregate future charges of approximately $29.8 million in 2025. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in future periods in connection with these activities.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.