REGAL REXNORD CORP

3. HELD FOR SALE

During the third quarter of 2026, the Company committed to a plan to sell its AMS business that provides hardware and software navigation solutions for autonomous guided vehicles included in the AMC segment and initiated the required actions to complete such a sale. As a result, the Company classified the assets and liabilities of AMS as held for sale and recorded a goodwill impairment of $23.8 million in the Condensed Consolidated Statements of Income (Loss) during the three and nine months ended September 30, 2026.

The sale is expected to close within the next twelve months and does 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.

As of September 30, 2026, the held for sale assets and liabilities related to AMS are presented in Prepaid Expenses and Other Current Assets, Other Noncurrent Assets, Other Accrued Expenses, and Other Noncurrent Liabilities on the Company's Condensed Consolidated Balance Sheet as shown in the table below:

Noncurrent assets held for sale relates primarily to Intangible Assets, Net of Amortization of $46.0 million.