REGAL REXNORD CORP

16. RESTRUCTURING ACTIVITIES

The Company incurred restructuring and restructuring-related costs on projects during the three and nine months ended September 30, 2025 and September 30, 2024. 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 also 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 table presents a reconciliation of provisions and payments for the restructuring projects for the three and nine months ended September 30, 2025 and September 30, 2024:

(1) Excludes equipment related write-offs and restructuring related depreciation adjustments

The following table presents a reconciliation of restructuring costs for restructuring projects for the three and nine months ended September 30, 2025 and September 30, 2024:

The following table presents restructuring costs by segment for the three and nine months ended September 30, 2025 and September 30, 2024:

The Company's current restructuring activities are expected to continue through 2025. The Company expects to record aggregate future charges of approximately $6.1 million in the remainder of 2025. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in future periods in connection with these activities.