REGAL REXNORD CORP

15. RESTRUCTURING ACTIVITIES

The Company incurred restructuring and restructuring-related costs on projects during the three months ended March 31, 2026 and March 31, 2025. 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 table presents a reconciliation of provisions and payments for the restructuring projects for the three months ended March 31, 2026 and March 31, 2025:

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

The following table is a reconciliation of expenses by type for restructuring projects for the three months ended March 31, 2026 and March 31, 2025:

The following table shows the allocation of Restructuring Expenses by segment for the three months ended March 31, 2026 and March 31, 2025:

The Company expects to record aggregate future charges related to restructuring of $22.9 million in the remainder of 2026. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in future periods in connection with these activities.