Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-07283 | |
Entity Registrant Name | REGAL REXNORD CORP | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0875718 | |
Entity Address, Address Line One | 111 West Michigan Street | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53203 | |
City Area Code | 608 | |
Local Phone Number | 364-8800 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | RRX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 66,518,762 | |
Entity Central Index Key | 0000082811 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net Sales | $ 1,547.7 | $ 1,224.1 |
Cost of Sales | 994.6 | 826 |
Gross Profit | 553.1 | 398.1 |
Operating Expenses | 397.7 | 329.2 |
Loss on Assets Held for Sale | 21.5 | 0 |
Total Operating Expenses | 419.2 | 329.2 |
Income from Operations | 133.9 | 68.9 |
Interest Expense | 105.4 | 95.4 |
Interest Income | (3.1) | (31.9) |
Other Expense (Income), Net | 0.3 | (1.4) |
Income before Taxes | 31.3 | 6.8 |
Provision for Income Taxes | 10.9 | 12.3 |
Net Income (Loss) | 20.4 | (5.5) |
Less: Net Income Attributable to Noncontrolling Interests | 0.6 | 0.4 |
Net Income (Loss) Attributable to Regal Rexnord Corporation | $ 19.8 | $ (5.9) |
Earnings (Loss) Per Share Attributable to Regal Rexnord Corporation: | ||
Basic (in dollars per share) | $ 0.30 | $ (0.09) |
Assuming dilution (in dollars per share) | $ 0.30 | $ (0.09) |
Weighted Average Number of Shares Outstanding: | ||
Basic (in shares) | 66.4 | 66.2 |
Assuming dilution (in shares) | 66.8 | 66.6 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 20.4 | $ (5.5) |
Other Comprehensive (Loss) Income Net of Tax: | ||
Foreign Currency Translation Adjustments | (87.5) | 34.5 |
Hedging Activities: | ||
Increase in Fair Value of Hedging Activities, Net of Tax Effects of $2.3 million and $5.3 million for the Three Months Ended March 31, 2024 and March 31, 2023, Respectively | 7.1 | 16.8 |
Reclassification of (Gains) Losses included in Net Income (Loss), Net of Tax Effects of $(2.4) million and $0.4 million for the Three Months Ended March 31, 2024 and March 31, 2023, Respectively | (7.5) | 1.3 |
Pension and Post Retirement Plans: | ||
Reclassification Adjustments for Pension and Post Retirement Benefits included in Net Income (Loss), Net of Tax Effects of zero and $(0.1) million for the Three Months Ended March 31, 2024 and March 31, 2023, Respectively | 0.2 | (0.4) |
Other Comprehensive (Loss) Income | (87.7) | 52.2 |
Comprehensive (Loss) Income | (67.3) | 46.7 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 0.2 | 0.7 |
Comprehensive (Loss) Income Attributable to Regal Rexnord Corporation | $ (67.5) | $ 46 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Increase (decrease) in fair value of hedging activities, tax effects | $ 2,300,000 | $ 5,300,000 |
Reclassification of (gains) losses included in net income (loss), tax effects | (2,400,000) | 400,000 |
Reclassification adjustments for pension and post retirement benefits included in net income (loss), tax effects | $ 0 | $ (100,000) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and Cash Equivalents | $ 465.3 | $ 574 |
Trade Receivables, Less Allowances of $29.3 million and $30.3 million in 2024 and 2023, Respectively | 828.1 | 921.6 |
Inventories | 1,319.1 | 1,274.2 |
Prepaid Expenses and Other Current Assets | 275.9 | 245.6 |
Disposal Group, Including Discontinued Operation, Assets, Current | 377.2 | 368.6 |
Total Current Assets | 3,265.6 | 3,384 |
Net Property, Plant and Equipment | 994 | 1,041.2 |
Operating Lease Assets | 166 | 172.8 |
Goodwill | 6,506.2 | 6,553.1 |
Intangible Assets, Net of Amortization | 3,965.8 | 4,083.4 |
Deferred Income Tax Benefits | 37 | 33.8 |
Other Noncurrent Assets | 70.7 | 69 |
Noncurrent Assets Held for Sale | 68.5 | 94.1 |
Total Assets | 15,073.8 | 15,431.4 |
Current Liabilities: | ||
Accounts Payable | 566.1 | 549.4 |
Dividends Payable | 23.3 | 23.2 |
Accrued Compensation and Employee Benefits | 154 | 198.7 |
Accrued Interest | 92.6 | 85.1 |
Other Accrued Expenses | 282.6 | 325.2 |
Current Operating Lease Liabilities | 36.1 | 37.2 |
Current Maturities of Long-Term Debt | 3.9 | 3.9 |
Liabilities Held for Sale | 89.9 | 103.7 |
Total Current Liabilities | 1,248.5 | 1,326.4 |
Long-Term Debt | 6,242 | 6,377 |
Deferred Income Taxes | 966.9 | 1,012.7 |
Pension and Other Post Retirement Benefits | 114.7 | 120.4 |
Noncurrent Operating Lease Liabilities | 129.4 | 132.2 |
Other Noncurrent Liabilities | 76.9 | 77.2 |
Noncurrent Liabilities Held for Sale | 19.9 | 20.4 |
Contingencies (see Note 12 - Contingencies) | ||
Regal Rexnord Corporation Shareholders' Equity: | ||
Common Stock, $0.01 par value, 150.0 million Shares Authorized, 66.5 million and 66.3 million Shares Issued and Outstanding for 2024 and 2023, Respectively | 0.7 | 0.7 |
Additional Paid-In Capital | 4,647.2 | 4,646.2 |
Retained Earnings | 1,976.3 | 1,979.8 |
Accumulated Other Comprehensive Loss | (369.7) | (282.4) |
Total Regal Rexnord Corporation Shareholders' Equity | 6,254.5 | 6,344.3 |
Noncontrolling Interests | 21 | 20.8 |
Total Equity | 6,275.5 | 6,365.1 |
Total Liabilities and Equity | $ 15,073.8 | $ 15,431.4 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 29.3 | $ 30.3 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150 | 150 |
Common stock, shares issued (in shares) | 66.5 | 66.3 |
Common stock, shares outstanding (in shares) | 66.5 | 66.3 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock $0.01 Par Value | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning balance at Dec. 31, 2022 | $ 6,422.6 | $ 0.7 | $ 4,609.6 | $ 2,130 | $ (352.1) | $ 34.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (5.5) | (5.9) | 0.4 | |||
Other Comprehensive (Loss) Income | 52.2 | 51.9 | 0.3 | |||
Dividends declared | (23.2) | (23.2) | ||||
Stock Options Exercised | (7.5) | (7.5) | ||||
Replacement Equity-Based Awards Granted | 11.1 | 11.1 | ||||
Share-Based Compensation | 6 | 6 | ||||
Ending balance at Mar. 31, 2023 | 6,455.7 | 0.7 | 4,619.2 | 2,100.9 | (300.2) | 35.1 |
Beginning balance at Dec. 31, 2023 | 6,365.1 | 0.7 | 4,646.2 | 1,979.8 | (282.4) | 20.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 20.4 | 19.8 | 0.6 | |||
Other Comprehensive (Loss) Income | (87.7) | (87.3) | (0.4) | |||
Dividends declared | (23.3) | (23.3) | ||||
Stock Options Exercised | (8.1) | (8.1) | ||||
Share-Based Compensation | 9.1 | 9.1 | ||||
Ending balance at Mar. 31, 2024 | $ 6,275.5 | $ 0.7 | $ 4,647.2 | $ 1,976.3 | $ (369.7) | $ 21 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Dividends declared, per share (in dollars per share) | $ 0.35 | $ 0.35 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 20.4 | $ (5.5) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities (Net of Acquisitions and Divestitures): | ||
Depreciation | 41.5 | 30.2 |
Amortization | 86.7 | 46.3 |
Loss on Assets Held for Sale | 21.5 | 0 |
Noncash Lease Expense | 11.3 | 7.7 |
Share-Based Compensation Expense | 9.1 | 21.7 |
Financing Fee Expense | 3.1 | 23 |
Benefit from Deferred Income Taxes | (30.4) | (10.2) |
Other Non-Cash Changes | 1.4 | 0.3 |
Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures | ||
Receivables | 47.7 | 31.7 |
Inventories | (47.8) | 47.1 |
Accounts Payable | 14.5 | (18.3) |
Other Assets and Liabilities | (95.9) | (67.8) |
Net Cash Provided by Operating Activities | 83.1 | 106.2 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to Property, Plant and Equipment | (18.5) | (18.7) |
Business Acquisitions, Net of Cash Acquired | 0 | (4,852.9) |
Proceeds Received from Sales of Property, Plant and Equipment | 1 | 6.1 |
Net Cash Used in Investing Activities | (17.5) | (4,865.5) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings Under Revolving Credit Facility | 495.1 | 893.3 |
Repayments Under Revolving Credit Facility | (566.8) | (639.5) |
Proceeds from Short-Term Borrowings | 0 | 14.1 |
Repayments of Short-Term Borrowings | 0 | (15.9) |
Proceeds from Long-Term Borrowings | 0 | 5,532.9 |
Repayments of Long-Term Borrowings | (65.8) | (500.8) |
Dividends Paid to Shareholders | (23.3) | (23.2) |
Shares Surrendered for Taxes | (10.7) | (8.2) |
Proceeds from the Exercise of Stock Options | 3.5 | 0.9 |
Financing Fees Paid | 0 | (50) |
Net Cash (Used in) Provided By Financing Activities | (168) | 5,203.6 |
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | (10.5) | 10.5 |
Net (Decrease) Increase in Cash and Cash Equivalents | (112.9) | 454.8 |
Cash and Cash Equivalents at Beginning of Period | 635.3 | 688.5 |
Cash and Cash Equivalents at End of Period | 522.4 | 1,143.3 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 94.8 | 75.1 |
Income taxes | 36.2 | 23 |
Cash and Cash Equivalents Presentation: | ||
Cash and Cash Equivalents | 465.3 | 1,143.3 |
Assets Held for Sale | 57.1 | 0 |
Total Cash and Cash Equivalents | $ 522.4 | $ 1,143.3 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying (a) Condensed Consolidated Balance Sheet of Regal Rexnord Corporation (the “Company”), as of December 31, 2023, which has been derived from audited Consolidated Financial Statements, and (b) unaudited interim Condensed Consolidated Financial Statements as of March 31, 2024 and for the three months ended March 31, 2024 and March 31, 2023, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Consolidated Financial Statements and the Notes thereto included in the Company’s 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024. In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made. Except as otherwise discussed, such adjustments consist of only those of a normal recurring nature. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 2024. The Condensed Consolidated Financial Statements have been prepared in accordance with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Condensed Consolidated Financial Statements and revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company uses estimates in accounting for, among other items, allowances for credit losses; excess and obsolete inventory; share-based compensation; acquisitions; product warranty obligations; pension and post retirement assets and liabilities; derivative fair values; goodwill and other asset impairments; health care reserves; rebates and incentives; litigation claims and contingencies, including environmental matters; and income taxes. The Company accounts for changes to estimates and assumptions when warranted by factually based experience. The sale of the industrial motors and generators businesses, as further described in Note 3 – Held for Sale, Acquisitions and Divestitures, 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. The assets and liabilities related to these businesses were reclassified to 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 September 30, 2023. Reclassifications Benefit from Deferred Income Taxes for the three months ended March 31, 2023 has been reclassified from Current Liabilities and Other and presented individually in the Condensed Consolidated Statements of Cash Flows to conform to the presentation used for the three months ended March 31, 2024. |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER FINANCIAL INFORMATION | OTHER FINANCIAL INFORMATION Revenue Recognition The Company recognizes revenue from the sale of electric motors, electrical motion controls, power generation, automation and power transmission products and components, factory automation sub-systems, industrial powertrain solutions, air moving products, and specialty electrical components and systems. The Company recognizes revenue when control of the product passes to the customer or the service is provided. Revenue is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. The following tables presents the Company’s revenues disaggregated by geographical region: Three Months Ended March 31, 2024 Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems Total North America $ 406.9 $ 296.9 $ 263.2 $ 58.8 $ 1,025.8 Asia 35.7 37.8 21.1 34.0 128.6 Europe 150.0 34.6 95.8 13.4 293.8 Rest-of-World 50.8 16.0 20.1 12.6 99.5 Total $ 643.4 $ 385.3 $ 400.2 $ 118.8 $ 1,547.7 March 31, 2023 Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems Total North America $ 293.2 $ 367.4 $ 141.8 $ 73.7 $ 876.1 Asia 16.5 43.8 1.4 36.7 98.4 Europe 52.8 42.7 43.8 15.6 154.9 Rest-of-World 51.9 15.6 16.2 11.0 94.7 Total $ 414.4 $ 469.5 $ 203.2 $ 137.0 $ 1,224.1 Trade Receivables The Company's policy for estimating the allowance for credit losses on trade receivables considers several factors including historical write-off experience, overall customer credit quality in relation to general economic and market conditions, and specific customer account analyses. The specific customer account analysis considers such items as credit worthiness, payment history, and historical bad debt experience. Trade receivables are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Adjustments to the allowance for credit losses are recorded in Operating Expenses. Inventories The following table presents approximate percentage distribution between major classes of inventories: March 31, 2024 December 31, 2023 Raw Material and Work in Process 67.4% 66.7% Finished Goods and Purchased Parts 32.6% 33.3% Inventories are stated at the lower of cost or net realizable value. All inventory is valued using the FIFO cost method. Property, Plant, and Equipment The following table presents property, plant, and equipment by major classification: Useful Life in Years March 31, 2024 December 31, 2023 Land and Improvements $ 132.7 $ 139.2 Buildings and Improvements 3 - 50 389.2 414.5 Machinery and Equipment 3 - 15 1,221.5 1,219.4 Property, Plant and Equipment 1,743.4 1,773.1 Less: Accumulated Depreciation (749.4) (731.9) Net Property, Plant and Equipment $ 994.0 $ 1,041.2 As of March 31, 2024 and December 31, 2023, $43.6 million and $44.4 million of right-of-use assets were included in Net Property, Plant and Equipment, respectively. Supplier Finance Program The Company's supplier finance program with Bank of America ("the Bank") offers the Company's designated suppliers the option to receive payments of outstanding invoices in advance of the invoice maturity dates at a discount. The Company's payment obligation to the Bank remains subject to the respective supplier's invoice maturity date. The Bank acts as a payment agent, making payments on invoices the Company confirms are valid. The supplier finance program is offered for open account transactions only and may be terminated by either the Company or the Bank upon 15 days' notice. The Company has not pledged any assets under this program. The Company has not incurred any subscription, service or other fees related to the Company's supplier finance program. The Company's outstanding obligations under the supplier finance program, which are classified within Accounts Payable |
HELD FOR SALE, ACQUISITIONS AND
HELD FOR SALE, ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
HELD FOR SALE, ACQUISITIONS AND DIVESTITURES | HELD FOR SALE, ACQUISITIONS AND DIVESTITURES Assets and Liabilities Held for Sale - Industrial Systems On September 23, 2023, the Company signed an agreement to sell its industrial motors and generators businesses which represent the substantial majority of the Industrial Systems operating segment. The transaction closed on April 30, 2024 for total consideration of $400 million, approximately 17% of which is deferred and will be paid upon the completion of the China Business transfer, as defined below. The total consideration remains subject to taxes, transaction expenses, working capital adjustments and customary post-closing adjustments. The Company anticipates that aggregate net proceeds will approximate $355 million. Due to administrative requirements, the transfer of the Chinese subsidiaries of the industrial motors and generators business, (the “China Business”) remains in progress and is expected to occur following completion of customary local filings and transfer documentation. The Company expects the deferred transfer of the China Business will occur in mid second quarter of 2024, at which time it anticipates it will receive the portion of the purchase price allocated to the China Business. The sale of the industrial motors and generators businesses 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. The assets and liabilities related to these businesses were included in Assets Held for Sale, Noncurrent Assets Held for Sale, Liabilities Held for Sale and Noncurrent Liabilities Held for Sale as shown in the table below: March 31, 2024 December 31, 2023 Assets Held for Sale Cash and Cash Equivalents $ 57.1 $ 61.3 Trade Receivables, Less Allowances 92.8 88.3 Inventories 192.5 199.7 Prepaid Expenses and Other Current Assets 13.1 12.2 Total Current Assets Held for Sale $ 355.5 $ 361.5 Net Property, Plant and Equipment 94.4 96.0 Operating Lease Assets 17.4 18.0 Goodwill 54.5 54.7 Intangible Assets, Net of Amortization 1.9 2.1 Deferred Income Tax Benefits 8.0 11.0 Other Noncurrent Assets 1.5 — Loss on Assets Held for Sale (109.2) (87.7) Total Noncurrent Assets Held for Sale $ 68.5 $ 94.1 Liabilities Held for Sale Accounts Payable $ 60.0 $ 67.2 Accrued Compensation and Employee Benefits 7.6 11.3 Other Accrued Expenses 18.6 21.7 Current Operating Lease Liabilities 3.7 3.5 Total Current Liabilities Held for Sale $ 89.9 $ 103.7 Pension and Other Post Retirement Benefits 0.9 0.9 Noncurrent Operating Lease Liabilities 15.4 16.2 Other Noncurrent Liabilities 3.6 3.3 Total Noncurrent Liabilities Held for Sale $ 19.9 $ 20.4 In addition to the assets and liabilities of the industrial motors and generators businesses, there are other assets recorded in Assets Held for Sale on the Company's Consolidated Balance Sheet as of March 31, 2024 and December 31, 2023, which are not material. Altra Transaction On October 26, 2022, the Company entered into an Agreement and Plan of Merger (the “Altra Merger Agreement”) by and among the Company, Altra Industrial Motion Corp., a Delaware corporation (“Altra”), and Aspen Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“Merger Sub”). Altra is a leading global manufacturer of highly-engineered products and sub-systems in the factory automation and industrial power transmission markets. Regal Rexnord entered into the Altra Merger Agreement because it believes it can recognize substantial revenue and cost synergies through the combination. In particular, Altra transforms Regal Rexnord's automation portfolio into a global provider with significant sales into markets with secular growth characteristics. Altra also adds significant capabilities to Regal Rexnord's industrial power transmission portfolio, in particular in clutches and brakes, allowing it to provide a broader offering, and more robust industrial powertrain solutions to its customers. On March 27, 2023, in accordance with the terms and conditions of the Altra Merger Agreement, Merger Sub merged with and into Altra (the "Altra Merger"), with Altra surviving the Altra Merger as a wholly owned subsidiary of the Company (the “Altra Transaction”). Pursuant to the Altra Merger Agreement, following the Altra Merger, each of Altra’s issued and outstanding shares of common stock were converted into $62.00 in cash, without interest (the “Altra Merger Consideration”). In addition, all Altra equity awards outstanding immediately prior to the Altra Merger were converted into an award of cash or an award of restricted stock equal to the equivalent value of the original equity award with similar terms and conditions based on the Altra Merger Consideration. The Company's management determined that the Company is the accounting acquirer in the Altra Transaction based on the facts and circumstances noted within this section and other relevant factors. As such, the Company applied the acquisition method of accounting to the identifiable assets and liabilities of Altra, which have been measured at estimated fair value as of the date of the business combination. The total purchase price to acquire Altra was $5.1 billion, which consisted of the following: Cash paid for outstanding Altra Common Stock (1) $ 4,051.0 Stock based compensation (2) 23.1 Payment of Altra debt (3) 1,061.0 Pre-existing relationships (4) (0.5) Purchase price $ 5,134.6 (1) Cash paid for the common stock component of the purchase price was based on 65.3 million shares of outstanding Altra Common Stock as of March 27, 2023 at $62.00 per share, in accordance with the Altra Merger Agreement. (2) Represents fair value of replacement equity-based awards and Company common stock issued in settlement of other Altra share based awards. The portion of the fair value attributable to pre-acquisition service was recorded as part of the consideration transferred in the Altra Transaction of which $17.3 million was paid in cash during the second quarter of 2023. (3) Cash paid by the Company to settle (a) the term loan facility, (b) the revolving credit facility and (c) 95.28% of the 6.125% senior notes due 2026 of Stevens Holding Company, Inc., a wholly owned subsidiary of Altra (the "Altra Notes"). $18.1 million of the Altra Notes remained outstanding following the closing of the Altra Transaction. See Note 7 - Debt and Bank Credit Facilities for more information. (4) Represents effective settlement of outstanding payables and receivables between the Company and Altra. No gain or loss was recognized on this settlement. Purchase Price Allocation Altra’s assets and liabilities were measured at estimated fair values at March 27, 2023, primarily using Level 3 inputs. Estimates of fair value represent management’s best estimate of assumptions about future events and uncertainties, including significant judgments related to future cash flows, discount rates, competitive trends, margin and revenue growth assumptions, royalty rates and customer attrition rates and others. Inputs used were generally obtained from historical data supplemented by current and anticipated market conditions and growth rates expected as of the acquisition date. The Company estimated the fair value of net assets acquired based on information available during the measurement period and as of March 31, 2024, the valuation process to determine the fair values of the net assets acquired during the measurement period was complete. The fair value of the assets acquired and liabilities assumed were as follows: As Reported as of December 31, 2023 Measurement period adjustments As of March 31, 2024 Cash and Cash Equivalents $ 259.1 $ — $ 259.1 Trade Receivables 258.1 (1.5) 256.6 Inventories 387.5 (0.5) 387.0 Prepaid Expenses and Other Current Assets 32.4 — 32.4 Property, Plant and Equipment 403.0 (0.5) 402.5 Intangible Assets (2) 2,142.0 — 2,142.0 Deferred Income Tax Benefits 0.7 0.1 0.8 Operating Lease Assets 46.8 — 46.8 Other Noncurrent Assets 12.7 — 12.7 Accounts Payable (183.3) — (183.3) Accrued Compensation and Benefits (66.0) — (66.0) Other Accrued Expenses (1) (144.6) (0.7) (145.3) Current Operating Lease Liabilities (12.3) — (12.3) Current Maturities of Long-Term Debt (0.4) — (0.4) Long-Term Debt (25.3) — (25.3) Deferred Income Taxes (533.3) 8.2 (525.1) Pension and Other Post Retirement Benefits (19.8) — (19.8) Noncurrent Operating Lease Liabilities (29.0) — (29.0) Other Noncurrent Liabilities (8.3) — (8.3) Total Identifiable Net Assets 2,520.0 5.1 2,525.1 Goodwill 2,614.6 (5.1) 2,609.5 Purchase price $ 5,134.6 $ — $ 5,134.6 (1) Includes $60.1 million related to Altra Transaction costs paid by the Company at the closing of the Altra Transaction. (2) Includes $1,710.0 million related to Customer Relationships, $330.0 million related to Trademarks and $102.0 million related to Technology . Transaction Costs The Company incurred transaction and integration-related costs in connection with the Altra Transaction of approximately $5.0 million during the three months ended March 31, 2024, which includes legal, professional service and integration costs associated with the Altra Transaction. There were $65.6 million of transaction and integration-related costs in connection with the Altra Transaction recognized during the three months ended March 31, 2023, which includes legal and professional services and certain employee compensation costs, including severance and retention, that were recognized as Operating Expenses in the Company's Condensed Consolidated Statements of Income (Loss). The Company also incurred $15.7 million of share-based compensation expense during the first quarter of 2023 related to the accelerated vesting of awards for certain former Altra employees. See Note 9 – Shareholders' Equity for additional information. In connection with the Altra Transaction, the Company incurred additional costs due to the entry into certain financing arrangements. Such financing arrangements are described in Note 7 – Debt and Bank Credit Facilities. Unaudited Pro Forma Information The following unaudited supplemental pro forma financial information presents the Company's financial results for the three months ended March 31, 2023. The March 31, 2023 information is presented as if the Altra Transaction had occurred on January 2, 2022, the first day of the Company's fiscal year ended December 31, 2022. The pro forma financial information includes, where applicable, adjustments for: (i) additional amortization expense that would have been recognized related to the acquired intangible assets, (ii) additional interest expense on transaction related borrowings less interest income earned on the investment of proceeds from borrowings prior to the close of the Altra Transaction, (iii) additional depreciation expense that would have been recognized related to the acquired property, plant, and equipment, (iv) transaction costs and other one-time non-recurring costs, including share-based compensation expense related to the accelerated vesting of awards for certain former Altra employees, which reduced expenses by $81.3 million for the three months ended March 31, 2023, and (v) the estimated income tax effect on the pro forma adjustments. The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the Altra Transaction been completed as of the date indicated or the results that may be obtained in the future. For the Three Months Ended March 31, 2023 Net Sales $ 1,675.2 Net Income Attributable to Regal Rexnord Corporation $ 37.6 Earnings Per Share Attributable to Regal Rexnord Corporation: Basic $ 0.57 Assuming Dilution $ 0.56 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustments, hedging activities and pension and post-retirement benefit adjustments are included in Accumulated Other Comprehensive Income (Loss) ("AOCI") a component of Total Equity. The following tables present changes in AOCI by component for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ 28.8 $ (25.0) $ (286.2) $ (282.4) Other Comprehensive Income (Loss) before Reclassifications 9.4 — (87.1) (77.7) Tax Impact (2.3) — — (2.3) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (9.9) 0.2 — (9.7) Tax Impact 2.4 — — 2.4 Net Current Period Other Comprehensive (Loss) Income (0.4) 0.2 (87.1) (87.3) Ending Balance $ 28.4 $ (24.8) $ (373.3) $ (369.7) March 31, 2023 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ 17.3 $ (13.3) $ (356.1) $ (352.1) Other Comprehensive Income before Reclassifications 22.1 — 34.2 56.3 Tax Impact (5.3) — — (5.3) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 1.7 (0.5) — 1.2 Tax Impact (0.4) 0.1 — (0.3) Net Current Period Other Comprehensive Income (Loss) 18.1 (0.4) 34.2 51.9 Ending Balance $ 35.4 $ (13.7) $ (321.9) $ (300.2) The Condensed Consolidated Statements of Income (Loss) line items affected by the hedging activities reclassified from AOCI in the tables above are disclosed in Note 13 - Derivative Financial Instruments. The reclassification amounts for pension and post-retirement benefit adjustments in the tables above are part of net periodic benefit costs recorded in Other Expense (Income), Net (see also Note 8 - Retirement Plans). |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill As required, the Company performs an annual impairment test of goodwill as of the end of October, or more frequently if events or circumstances change that would more likely than not reduce the fair value of its reporting units below their carrying value. The following table presents changes to goodwill during the three months ended March 31, 2024: Total Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Balance as of December 31, 2023 $ 6,553.1 $ 3,747.0 $ 753.9 $ 2,052.2 Acquisitions (5.1) (5.8) — 0.7 Translation Adjustments (41.8) (20.1) (2.2) (19.5) Balance as of March 31, 2024 $ 6,506.2 $ 3,721.1 $ 751.7 $ 2,033.4 Cumulative Goodwill Impairment Charges (1) $ 223.6 $ 18.1 $ 200.4 $ 5.1 (1) Excludes impairment charges related to Industrial Systems. Intangible Assets Intangible assets consist of the following: March 31, 2024 December 31, 2023 Weighted Average Amortization Period (Years) Gross Value Accumulated Net Carrying Amount Gross Value Accumulated Net Carrying Amount Customer Relationships 15 $ 4,000.8 $ 804.6 $ 3,196.2 $ 4,028.5 $ 746.2 $ 3,282.3 Technology 13 300.3 97.5 202.8 302.6 92.9 209.7 Trademarks 10 705.5 138.7 566.8 712.1 120.7 591.4 Total Intangibles $ 5,006.6 $ 1,040.8 $ 3,965.8 $ 5,043.2 $ 959.8 $ 4,083.4 Amortization expense recorded for the three months ended March 31, 2024 was $86.7 million. Amortization expense recorded for the three months ended March 31, 2023 was $46.3 million. Amortization expense for 2024 is estimated to be $348.7 million. The following table presents future estimated annual amortization for intangible assets: Year Estimated Amortization 2025 $ 346.8 2026 343.5 2027 343.4 2028 343.4 2029 341.3 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION As of March 31, 2024, the Company is comprised of four operating segments: Industrial Powertrain Solutions ("IPS"), Power Efficiency Solutions ("PES"), Automation & Motion Control ("AMC"), and Industrial Systems. The IPS segment designs, produces and services a broad portfolio of highly-engineered power transmission products, including mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions. Increasingly, the segment produces industrial powertrain solutions, which are integrated sub-systems comprised of Regal Rexnord motors plus the critical power transmission components that efficiently transmit motion to power industrial applications. The segment serves a broad range of markets that include general industrial, metals & mining, agricultural and construction, food and beverage, energy, alternative energy and other markets. The PES segment designs and produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated subsystems comprised of two or more of these components. The segment's products are used in residential and light commercial HVAC, water heater, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, dewatering, agriculture and other applications. The AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, high-efficiency miniature servo motors, controls, drives and linear actuators, as well as power management products that include automatic transfer switches and paralleling switchgear. The segment sells into markets that include industrial automation, robotics, food and beverage, aerospace, medical, agricultural and construction, general industrial, data center, and other markets. The Industrial Systems segment designs and produces integral motors, alternators for industrial applications, along with aftermarket parts and kits to support such products. These products serve the general industrial, metals and mining, and food and beverage end markets. As described within Note 3 – Held for Sale, Acquisitions and Divestitures, the sale of the industrial motors and generators business was completed on April 30, 2024. The Company evaluates performance based on the segment's income (loss) from operations. Corporate costs have been allocated to each segment based on the net sales of each segment. The reported external net sales of each segment are from external customers. The following sets forth certain financial information attributable to the Company's operating segments for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems Eliminations Total External Sales $ 643.4 $ 385.3 $ 400.2 $ 118.8 $ — $ 1,547.7 Intersegment Sales 2.9 5.1 4.6 0.3 (12.9) — Total Sales 646.3 390.4 404.8 119.1 (12.9) 1,547.7 Gross Profit 264.8 99.3 159.9 29.1 — 553.1 Operating Expenses 182.7 70.8 119.7 24.5 — 397.7 Loss on Assets Held for Sale — — — 21.5 — 21.5 Total Operating Expenses 182.7 70.8 119.7 46.0 — 419.2 Income (Loss) from Operations 82.1 28.5 40.2 (16.9) — 133.9 Depreciation and Amortization 70.2 11.6 45.9 0.5 — 128.2 Capital Expenditures 8.8 3.7 5.9 0.1 — 18.5 March 31, 2023 External Sales $ 414.4 $ 469.5 $ 203.2 $ 137.0 $ — $ 1,224.1 Intersegment Sales 3.5 4.2 5.2 0.7 (13.6) — Total Sales 417.9 473.7 208.4 137.7 (13.6) 1,224.1 Gross Profit 177.4 117.7 75.4 27.6 — 398.1 Operating Expenses 151.5 72.3 80.6 24.8 — 329.2 Total Operating Expenses 151.5 72.3 80.6 24.8 — 329.2 Income (Loss) from Operations 25.9 45.4 (5.2) 2.8 — 68.9 Depreciation and Amortization 41.6 11.7 19.7 3.5 — 76.5 Capital Expenditures 5.4 8.7 3.1 1.5 — 18.7 The following table presents identifiable assets information attributable to the Company's operating segments as of March 31, 2024 and December 31, 2023: Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems Total Identifiable Assets as of March 31, 2024 $ 7,838.1 $ 1,960.4 $ 4,836.6 $ 438.7 $ 15,073.8 Identifiable Assets as of December 31, 2023 8,009.4 2,036.4 4,909.2 476.4 15,431.4 |
DEBT AND BANK CREDIT FACILITIES
DEBT AND BANK CREDIT FACILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT AND BANK CREDIT FACILITIES | DEBT AND BANK CREDIT FACILITIES The following table presents the Company’s indebtedness as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Senior Notes $ 4,700.0 $ 4,700.0 Term Facility 993.5 1,053.5 Land Term Facility 482.0 486.8 Multicurrency Revolving Facility 26.4 98.1 Altra Notes 18.1 18.1 Finance Leases 69.7 70.5 Other 7.1 7.5 Less: Debt Issuance Costs (50.9) (53.6) Total 6,245.9 6,380.9 Less: Current Maturities 3.9 3.9 Long-Term Debt $ 6,242.0 $ 6,377.0 The below discussion of the Company’s indebtedness should be read in conjunction with the Note 7 – Debt and Bank Credit Facilities in the Company’s 2023 Annual Report on Form 10-K filed on February 26, 2024. Credit Agreement On March 28, 2022, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. as Administrative Agent and the lenders named therein, which was subsequently amended on November 17, 2022 (the "First Amendment") and November 30, 2022 (the "Assumption Agreement"), which in combination provide for, among other things: i. an unsecured term loan facility in the initial principal amount of up to $550.0 million, maturing on March 28, 2027, which was upsized by $840.0 million on March 27, 2023 in connection with the Altra Transaction (the "Term Facility"); ii. an unsecured term loan facility in the initial principal amount of $486.8 million, under which the Company's subsidiary Land Newco, Inc. remains the sole borrower, maturing on March 28, 2027 (the "Land Term Facility"); and iii. an unsecured revolving loan in the initial principal amount of up to $1,000.0 million, maturing on March 28, 2027, which was upsized by $570.0 million on March 27, 2023 in connection with the Altra Transaction (the "Multicurrency Revolving Facility"). Borrowings under the Credit Agreement bear interest at floating rates based upon indices determined by the currency of the borrowing (SOFR or an alternative base rate for US Dollar borrowings) or at an alternative base rate, in each case, plus an applicable margin. The weighted average interest rate on the Term Facility for the three months ended March 31, 2024 and March 31, 2023 was 7.2% and 6.0%, respectively. The weighted average interest rate on the Land Term Facility for the three months ended March 31, 2024 and March 31, 2023 was 7.2% and 5.9%, respectively. The Term Facility requires quarterly amortization at 5.0% per annum, unless previously prepaid. Per the terms of the Credit Agreement, prepayments can be made without penalty and are applied to the next payment due. The Land Term Facility has no required amortization. As of March 31, 2024, the Company had no standby letters of credit issued under the Multicurrency Revolving Facility, and $1,543.6 million of available borrowing capacity. For the three months ended March 31, 2024 and March 31, 2023 under the Multicurrency Revolving Facility, the average daily balance in borrowings was $98.5 million and $580.6 million, respectively, and the weighted average interest rate was 7.2% and 5.8%, respectively. The Company paid a non-use fee of 0.25% as of March 31, 2024 on the aggregate unused amount of the Multicurrency Revolving Facility at a rate determined by reference to its consolidated funded debt to consolidated EBITDA ratio. Senior Notes On January 24, 2023, the Company issued $1,100.0 million aggregate principal amount of its 6.05% senior notes due 2026 (the “2026 Senior Notes”), $1,250.0 million aggregate principal amount of its 6.05% senior notes due 2028 (the “2028 Senior Notes”), $1,100.0 million aggregate principal amount of its 6.30% senior notes due 2030 (the “2030 Senior Notes”) and $1,250.0 million aggregate principal amount of its 6.40% senior notes due 2033 (the “2033 Senior Notes” and, together with the 2026 Senior Notes, 2028 Senior Notes and 2030 Senior Notes, collectively, the “Senior Notes”). The 2026 Senior Notes are scheduled to mature on February 15, 2026, the 2028 Senior Notes are scheduled to mature on April 15, 2028, the 2030 Senior Notes are scheduled to mature on February 15, 2030, and the 2033 Senior Notes are scheduled to mature on April 15, 2033. The rate of interest on each series of the Senior Notes is subject to an increase of up to 2.00% in the event of certain downgrades in the debt rating of the Senior Notes. Interest on the 2026 Senior Notes and the 2030 Senior Notes is payable semi-annually on February 15 and August 15 of each year, beginning on August 15, 2023. Interest on the 2028 Senior Notes and the 2033 Senior Notes is payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2023. The Company received $4,647.0 million in net proceeds from the sale of the Senior Notes, after deducting the initial purchasers’ discounts and estimated offering expenses. The Company used a portion of the net proceeds to repay the Company’s outstanding Private Placement Notes and used the remaining net proceeds, together with the incremental term loan commitments under the Term Facility and cash on hand, to fund the consideration for the Altra Transaction, repay certain of Altra’s outstanding indebtedness, and pay certain fees and expenses. Prior to the consummation of the Altra Transaction, the Company used a portion of the proceeds to repay the outstanding borrowings under the Multicurrency Revolving Facility in January 2023 and invested the remaining net proceeds of approximately $3.6 billion in interest bearing accounts. The Company recognized $29.4 million in Interest Income from the investment in interest bearing accounts prior to the close of the Altra Transaction. The Senior Notes were issued and sold in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and persons outside the United States in accordance with Regulation S under the Securities Act. Pursuant to a registration rights agreement, the Company agreed to exchange the Senior Notes with registered notes with terms substantially identical to those of the Senior Notes of the corresponding series (the “New Notes”) within 540 days from the date of issuance. The Company and certain subsidiaries that guarantee the Senior Notes filed a registration statement on Form S-4 with the SEC on March 26, 2024, registering an offer to exchange the Senior Notes validly tendered for New Notes of the corresponding series (the “Exchange Offer”). In May 2024, the Company and the guarantor subsidiaries completed the Exchange Offer, exchanging approximately $4,697.1 million in aggregate principal amount of Senior Notes for approximately $4,697.1 million in aggregate principal amount of New Notes of the corresponding series. The aggregate principal amount of Senior Notes not exchanged, approximately $2.9 million, remained outstanding across the four series of Senior Notes. The New Notes consist of approximately $1,099.0 million aggregate principal amount of 6.050% senior notes due 2026, $1,249.4 million aggregate principal amount of 6.050% senior notes due 2028, $1,099.4 million aggregate principal amount of 6.300% senior notes due 2030 and $1,249.3 million aggregate principal amount of 6.400% senior notes due 2033. Altra Notes On March 27, 2023, in connection with the Altra Transaction, the Company assumed $18.1 million aggregate principal amount of 6.125% senior notes due 2026 (the “Altra Notes”). The Company purchased 95.28% of the outstanding Altra Notes for total consideration of $382.7 million. See Note 3 – Held for Sale, Acquisitions and Divestitures for more information. The Altra Notes will mature on October 1, 2026. The Altra Notes may be redeemed at the option of the issuer on or after October 1, 2023. The Notes are guaranteed on a senior unsecured basis by certain of the Company's domestic subsidiaries. Compliance with Financial Covenants The Credit Agreement requires the Company to meet specified financial ratios and to satisfy certain financial condition tests. The Company was in compliance with all financial covenants as of March 31, 2024. Finance leases The weighted average discount rate associated with the Company's finance leases was 5.2% as of March 31, 2024 and March 31, 2023. Other Disclosures Based on rates for instruments with comparable maturities and credit quality, which are classified as Level 2 inputs (see also Note 14 - Fair Value), the approximate fair value of the Senior Notes was $4,791.7 million and $4,802.4 million as of March 31, 2024 and December 31, 2023, respectively, compared to a carrying value of $4,700.0 million as of March 31, 2024 and December 31, 2023. The Company believes that the fair value of all other debt instruments approximates their carrying value. |
RETIREMENT PLANS
RETIREMENT PLANS | 3 Months Ended |
Mar. 31, 2024 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS The following table presents the Company’s net periodic benefit cost (income) components: Three Months Ended March 31, 2024 March 31, 2023 Service Cost $ 0.5 $ 0.3 Interest Cost 5.4 5.6 Expected Return on Plan Assets (5.0) (6.7) Amortization of Prior Service Cost and Net Actuarial Loss (Gain) 0.2 (0.5) Special Termination Benefits 0.2 — Net Periodic Benefit Expense (Income) $ 1.3 $ (1.3) The service cost component is included in Cost of Sales and Operating Expenses. All other components of net periodic benefit costs are included in Other Expense (Income), Net on the Company's Condensed Consolidated Statements of Income (Loss). For the three months ended March 31, 2024 and March 31, 2023, the Company contributed $1.8 million and $1.5 million, respectively, to retirement plans. The Company expects to make total contributions of $17.8 million in 2024. The Company contributed a total of $8.3 million in 2023. For the three months ended March 31, 2024 and March 31, 2023, the Company contributed $11.6 million and $6.2 million, respectively, to defined contribution plans. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Share-Based Compensation The Company recognized approximately $9.1 million and $21.7 million in share-based compensation expense for the three months ended March 31, 2024 and March 31, 2023, respectively. The expense for the three months ended March 31, 2023 includes $15.7 million related to the accelerated vesting of awards for certain former Altra employees. The total income tax benefit recognized in the Condensed Consolidated Statements of Income (Loss) for share-based compensation expense was $2.1 million and $1.4 million for the three months ended March 31, 2024 and March 31, 2023, respectively. The Company recognizes compensation expense on grants of share-based compensation awards on a straight-line basis over the vesting period of each award. During the three months ended March 31, 2024, the Company granted the following share-based incentive awards: Award Type Number of Awards Weighted Average Grant-Date Fair Value Options and SARs 99,566 $ 62.85 Restricted Stock Units 107,395 $ 167.43 Performance Share Units 53,206 $ 245.81 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rate for the three months ended March 31, 2024 was 34.8% versus 180.9% for the three months ended March 31, 2023, which was due to the non-deductible transaction costs associated with the Altra Transaction incurred in 2023. As of March 31, 2024 and December 31, 2023, the Company had approximately $5.6 million and $8.5 million of unrecognized tax benefits, all of which would impact the effective income tax rate if recognized. Potential interest and penalties related to unrecognized tax benefits are recorded in income tax expense. The Company had approximately $1.2 million and $1.1 million of accrued interest as of March 31, 2024 and December 31, 2023, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Diluted earnings per share is calculated based upon earnings applicable to common shares divided by the weighted-average number of common shares outstanding during the period adjusted for the effect of other dilutive securities. The amount of the anti-dilutive shares was 0.3 million and 0.4 million for the three months ended March 31, 2024 and March 31, 2023, respectively. The following table reconciles the basic and diluted shares used in earnings per share calculations for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 March 31, 2023 Denominator for Basic Earnings Per Share 66.4 66.2 Effect of Dilutive Securities 0.4 0.4 Denominator for Diluted Earnings Per Share 66.8 66.6 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES One of the Company's subsidiaries that it acquired in 2007 is subject to numerous claims filed in various jurisdictions relating to certain sub-fractional motors that were primarily manufactured through 2004 and that were included as components of residential and commercial ventilation units manufactured and sold in high volumes by a third party. These ventilation units are subject to product safety requirements and other potential regulation of their performance by government agencies such as the US Consumer Product Safety Commission (“CPSC”). The claims generally allege that the ventilation units were the cause of fires. The Company has recorded an estimated liability for incurred claims. Based on the current facts, the Company cannot assure that these claims, individually or in the aggregate, will not have a material adverse effect on its subsidiary's financial condition. The Company's subsidiary cannot reasonably predict the outcome of these claims, the nature or extent of any CPSC or other remedial actions, if any, that the Company's subsidiary may need to undertake with respect to motors that remain in the field, or the costs that may be incurred, some of which could be significant. As a result of the Company's acquisition of the Rexnord PMC business, it is entitled to indemnification from third parties to agreements with the Rexnord PMC business against certain contingent liabilities of the Rexnord PMC business, including certain pre-closing environmental liabilities. The Company believes that, pursuant to the transaction documents related to the Rexnord PMC business' acquisition of the Stearns business from Invensys plc ("Invensys"), Invensys (now known as Schneider Electric) is obligated to defend and indemnify us with respect to the matters described below relating to the Ellsworth Industrial Park Site and to various asbestos claims. The indemnity obligations relating to the matters described below are subject, together with indemnity obligations relating to other matters, to an overall dollar cap equal to the purchase price, which is an amount in excess of $900.0 million. In the event that the Company is unable to recover from Invensys with respect to the matters below, it may be entitled to indemnification from Zurn Water Solutions Corporation (formerly known as Rexnord Corporation) ("Zurn"), subject to certain limitations. The following paragraphs summarize the most significant actions and proceedings: • In 2002, the Company's subsidiary, Rexnord Industries, LLC ("Rexnord Industries") was named as a potentially responsible party ("PRP"), together with at least ten other companies, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the "Site"), by the United States Environmental Protection Agency ("USEPA"), and the Illinois Environmental Protection Agency ("IEPA"). Rexnord Industries' Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and IEPA allege there have been one or more releases or threatened releases of chlorinated solvents and other hazardous substances, pollutants or contaminants at the Site, allegedly including but not limited to a release or threatened release on or from Rexnord Industries' property. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of USEPA's past costs. In early 2020, Rexnord Industries entered into an administrative order with the USEPA to do remediation work on its Downers Grove property. The soil excavation work and transporting and disposing of the excavated material was completed in October 2020. An AS/SVE system construction was completed in February 2022 and is anticipated to operate for three years. All previously pending property damage and personal injury lawsuits against Rexnord Industries related to the Site have been settled or dismissed. Pursuant to its indemnity obligation, Invensys continues to defend Rexnord Industries in known matters related to the Site, including the costs of the remediation work pursuant to the 2020 administrative order, and has paid 100% of the costs to date. This indemnification right would not protect Rexnord Industries against liabilities related to environmental conditions that were unknown to Invensys at the time of the acquisition of the Stearns business from Invensys. • Multiple lawsuits (with over 350 claimants) are pending in state or federal court in numerous jurisdictions relating to alleged personal injuries due to the alleged presence of asbestos in certain brakes and clutches previously manufactured by the Rexnord PMC business' Stearns brand of brakes and clutches and/or its predecessor owners. Invensys and FMC, prior owners of the Stearns business, have paid 100% of the costs to date related to the Stearns lawsuits. Similarly, the Rexnord PMC business' Prager subsidiary is the subject of claims by multiple claimants alleging personal injuries due to the alleged presence of asbestos in a product allegedly manufactured by Prager. However, all these claims are currently on the Texas Multi-district Litigation inactive docket, and the Company does not believe that they will become active in the future. To date, the Rexnord PMC business' insurance providers have paid 100% of the costs related to the Prager asbestos matters. We believe that the combination of the Company's insurance coverage and the Invensys indemnity obligations will cover any future costs of these matters. In connection with the Company's acquisition of the Rexnord PMC business, transaction documents related to the Rexnord PMC business’ acquisition of The Falk Corporation from Hamilton Sundstrand Corporation were assigned to Rexnord Industries, and provide Rexnord Industries with indemnification against certain product related asbestos exposure liabilities. The Company believes that, pursuant to such indemnity obligations, Hamilton Sundstrand is obligated to defend and indemnify Rexnord Industries with respect to asbestos claims described below, and that, with respect to these claims, such indemnity obligations are not subject to any time or dollar limitations. The following paragraph summarizes the most significant actions and proceedings for which Hamilton Sundstrand has accepted responsibility: • Rexnord Industries is a defendant in multiple lawsuits pending in state or federal court in numerous jurisdictions relating to alleged personal injuries due to the alleged presence of asbestos in certain clutches and drives previously manufactured by The Falk Corporation. The ultimate outcome of these lawsuits cannot presently be determined. Hamilton Sundstrand is defending Rexnord Industries in these lawsuits pursuant to its indemnity obligations and has paid 100% of the costs to date. The Company is, from time to time, party to litigation and other legal or regulatory proceedings that arise in the normal course of its business operations and the outcomes of which are subject to significant uncertainty, including product warranty and liability claims, contract disputes and environmental, asbestos, intellectual property, employment and other litigation matters. The Company's products are used in a variety of industrial, commercial and residential applications that subject the Company to claims that the use of its products is alleged to have resulted in injury or other damage. Many of these matters will only be resolved when one or more future events occur or fail to occur. Management conducts regular reviews, including updates from legal counsel, to assess the need for accounting recognition or disclosure of these contingencies, and such assessment inherently involves an exercise in judgment. The Company accrues for exposures in amounts that it believes are adequate, and the Company does not believe that the outcome of any such lawsuit individually or collectively will have a material effect on the Company's financial position, its results of operations or its cash flows. The Company recognizes the cost associated with its standard warranty on its products at the time of sale. The amount recognized is based on historical experience. The following table presents a reconciliation of the changes in accrued warranty costs for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 March 31, 2023 Beginning Balance $ 34.5 $ 28.8 Less: Payments (5.7) (3.3) Provisions 5.6 6.2 Acquisitions — 9.8 Translation Adjustments (0.2) — Ending Balance $ 34.2 $ 41.5 These liabilities are included in Other Accrued Expenses and Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative instruments are commodity price risk, currency exchange risk, and interest rate risk. Forward contracts on certain commodities are entered into to manage the price risk associated with forecasted purchases of materials used in the Company's manufacturing process. Forward contracts on certain currencies are entered into to manage forecasted cash flows in certain foreign currencies. Interest rate swaps are utilized to manage interest rate risk associated with the Company's floating rate borrowings. The Company is exposed to credit losses in the event of non-performance by the counterparties to various financial agreements, including its commodity hedging transactions, foreign currency exchange contracts and interest rate swap agreements. Exposure to counterparty credit risk is managed by limiting counterparties to major international banks and financial institutions meeting established credit guidelines and continually monitoring their compliance with the credit guidelines. The Company does not obtain collateral or other security to support financial instruments subject to credit risk. The Company does not anticipate non-performance by its counterparties, but cannot provide assurances. The Company recognizes all derivative instruments as either assets or liabilities at fair value on the Condensed Consolidated Balance Sheets. The Company designates commodity forward contracts as cash flow hedges of forecasted purchases of commodities, currency forward contracts as cash flow hedges of forecasted foreign currency cash flows and interest rate swaps as cash flow hedges of forecasted SOFR-based interest payments. There were no significant collateral deposits on derivative financial instruments as of March 31, 2024 or March 31, 2023. Cash flow hedges The effective of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or changes in market value of derivatives not designated as hedges are recognized in current earnings. As of March 31, 2024 and December 31, 2023, the Company had $14.2 million and $15.1 million, respectively, net of tax, of derivative gains on closed hedge instruments in AOCI that will be realized in earnings when the hedged items impact earnings. The Company has currency forward contracts with maturities extending through March 2027. The notional amounts expressed in terms of the dollar value of the hedged currency were as follows: March 31, 2024 December 31, 2023 Chinese Renminbi $ 312.0 $ 302.3 Mexican Peso 72.1 101.4 Euro 617.4 465.8 Indian Rupee 24.4 30.1 British Pound 12.8 7.1 The Company has commodity forward contracts to hedge forecasted purchases of commodities with maturities extending through February 2025. The notional amounts expressed in terms of the dollar value of the hedged item were as follows: March 31, 2024 December 31, 2023 Copper $ 26.9 $ 37.5 Aluminum 0.9 1.4 The Company entered into two receive variable/pay-fixed forward starting non-amortizing interest rate swaps in June 2020, with a total notional amount of $250.0 million, which were subsequently terminated in March 2022. The cash proceeds of $16.2 million received to settle the terminated swaps is being recognized as a reduction of interest expense via the effective interest rate method through July 2025 when the terminated swaps were scheduled to expire. The Company entered into two additional receive variable/pay-fixed forward starting non-amortizing interest rate swaps in May 2022, with a total notional amount of $250.0 million. These swaps will expire in March 2027. Fair values of derivative instruments as of March 31, 2024 and December 31, 2023 were: March 31, 2024 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Other Accrued Expenses Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ 8.6 $ — Currency Contracts 10.3 — 1.0 Commodity Contracts 1.1 — 0.3 Not Designated as Hedging Instruments: Currency Contracts 1.2 — 0.7 Total Derivatives $ 12.6 $ 8.6 $ 2.0 December 31, 2023 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Other Accrued Expenses Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ 5.3 $ — Currency Contracts 13.1 0.2 1.0 Commodity Contracts 1.0 0.1 0.6 Not Designated as Hedging Instruments: Currency Contracts 1.3 — 5.9 Total Derivatives $ 15.4 $ 5.6 $ 7.5 Derivatives Designated as Cash Flow Hedging Instruments: The effect of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Income (Loss) and Condensed Consolidated Statements of Comprehensive Income (Loss) were: Three Months Ended March 31, 2024 March 31, 2023 Commodity Forwards Currency Forwards Interest Rate Swaps Total Commodity Forwards Currency Forwards Interest Rate Swaps Total Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 2.2 $ 4.0 $ 3.2 $ 9.4 $ 5.5 $ 20.3 $ (3.7) $ 22.1 Amounts Reclassified from Other Comprehensive Income (Loss): (Loss) Gain Recognized in Cost of Sales (0.3) 8.7 — 8.4 (5.0) 2.0 — (3.0) Gain Recognized in Interest Expense — — 1.5 1.5 — — 1.3 1.3 Derivatives Not Designated as Cash Flow Hedging Instruments: The effect of derivative instruments not designated as cash flow hedges on the Condensed Consolidated Statements of Income (Loss) were: Three Months Ended March 31, 2024 March 31, 2023 Commodity Forwards Currency Forwards Commodity Forwards Currency Forwards Gain recognized in Cost of Sales $ — $ — $ 0.2 $ — Gain recognized in Operating Expenses — 10.1 — 1.9 The AOCI balance related to hedging activities consists of a $28.4 million gain net of tax as of March 31, 2024 which includes $20.6 million of net current deferred gains expected to be reclassified to the Consolidated Statement of Comprehensive Income (Loss) in the next twelve months. There were no gains or losses reclassified from AOCI to earnings based on the probability that the forecasted transaction would not occur. The Company's commodity and currency derivative contracts are subject to master netting agreements with the respective counterparties which allow the Company to net settle transactions with a single net amount payable by one party to another party. The Company has elected to present the derivative assets and derivative liabilities on the Condensed Consolidated Balance Sheets on a gross basis as of March 31, 2024 and December 31, 2023. The following table presents on a net basis the derivative assets and liabilities that are subject to right of offset under enforceable master netting agreements: March 31, 2024 Gross Amounts as Presented on the Condensed Consolidated Balance Sheet Derivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis Assets $ 21.2 $ (1.4) $ 19.8 Liabilities 2.0 (1.4) 0.6 December 31, 2023 Gross Amounts as Presented on the Condensed Consolidated Balance Sheet Derivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis Assets $ 15.7 $ (2.6) $ 13.1 Liabilities 7.5 (2.6) 4.9 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability The Company uses the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair values of cash equivalents and short-term deposits approximate their carrying values as of March 31, 2024 and December 31, 2023, due to the short period of time to maturity and are classified using Level 1 inputs. The fair values of trade receivables and accounts payable approximate the carrying values due to the short period of time to maturity. See Note 7 - Debt and Bank Credit Facilities for disclosure of the approximate fair value of the Company's debt as of March 31, 2024 and December 31, 2023. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Classification Assets: Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 11.5 $ 14.4 Level 2 Derivative Commodity Contracts 1.1 1.0 Level 2 Other Noncurrent Assets: Assets Held in Rabbi Trust 14.9 12.7 Level 1 Derivative Currency Contracts — 0.2 Level 2 Derivative Commodity Contracts — 0.1 Level 2 Interest Rate Swap 8.6 5.3 Level 2 Liabilities: Other Accrued Expenses: Derivative Currency Contracts 1.7 6.9 Level 2 Derivative Commodity Contracts 0.3 0.6 Level 2 Level 1 fair value measurements for assets held in a Rabbi Trust are unadjusted quoted prices. Level 2 fair value measurements for derivative assets and liabilities are measured using quoted prices in active markets for similar assets and liabilities. Interest rate swaps are valued based on the discounted cash flows using the SOFR forward yield curve for an instrument with similar contractual terms. Foreign currency forwards are valued based on exchange rates quoted by domestic and foreign banks for similar instruments. Commodity forwards are valued based on observable market transactions of forward commodity prices. Senor Notes are valued based on rates for instruments with comparable maturities and credit quality. See Note 7 - Debt and Bank Credit Facilities for further information. |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES The Company incurred restructuring and restructuring-related costs on projects during the three months ended March 31, 2024 and March 31, 2023. 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 months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 March 31, 2023 Beginning Balance $ 29.1 $ 15.1 Acquisition (1) — 0.2 Provision (2) 7.8 5.0 Less: Payments 16.1 10.2 Ending Balance $ 20.8 $ 10.1 (1) Excludes $12.4 million of severance related to the Altra Transaction, which was paid in the second quarter 2023. (2) Excludes $1.5 million of equipment related write-offs incurred in the first quarter of 2024. The following table presents a reconciliation of restructuring costs for restructuring projects for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 March 31, 2023 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ 4.1 $ 0.7 $ 4.8 $ 2.3 $ 0.6 $ 2.9 Facility Related Costs 2.7 — 2.7 0.9 — 0.9 Other Expenses 1.6 0.2 1.8 1.2 — 1.2 Total Restructuring Costs $ 8.4 $ 0.9 $ 9.3 $ 4.4 $ 0.6 $ 5.0 The following table presents restructuring costs by segment for the three months ended March 31, 2024 and March 31, 2023: Restructuring Costs - Three Months Ended Total Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems March 31, 2024 $ 9.3 $ 3.1 $ 4.9 $ 1.2 $ 0.1 March 31, 2023 $ 5.0 $ (0.4) $ 4.7 $ 0.5 $ 0.2 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS See Note 3 – Held for Sale, Acquisitions and Divestitures for information on the sale of the industrial motors and generators businesses, which closed on April 30, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 19.8 | $ (5.9) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The Condensed Consolidated Financial Statements have been prepared in accordance with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Condensed Consolidated Financial Statements and revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company uses estimates in accounting for, among other items, allowances for credit losses; excess and obsolete inventory; share-based compensation; acquisitions; product warranty obligations; pension and post retirement assets and liabilities; derivative fair values; goodwill and other asset impairments; health care reserves; rebates and incentives; litigation claims and contingencies, including environmental matters; and income taxes. The Company accounts for changes to estimates and assumptions when warranted by factually based experience. |
Reclassifications | Reclassifications Benefit from Deferred Income Taxes for the three months ended March 31, 2023 has been reclassified from Current Liabilities and Other and presented individually in the Condensed Consolidated Statements of Cash Flows to conform to the presentation used for the three months ended March 31, 2024. |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables presents the Company’s revenues disaggregated by geographical region: Three Months Ended March 31, 2024 Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems Total North America $ 406.9 $ 296.9 $ 263.2 $ 58.8 $ 1,025.8 Asia 35.7 37.8 21.1 34.0 128.6 Europe 150.0 34.6 95.8 13.4 293.8 Rest-of-World 50.8 16.0 20.1 12.6 99.5 Total $ 643.4 $ 385.3 $ 400.2 $ 118.8 $ 1,547.7 March 31, 2023 Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems Total North America $ 293.2 $ 367.4 $ 141.8 $ 73.7 $ 876.1 Asia 16.5 43.8 1.4 36.7 98.4 Europe 52.8 42.7 43.8 15.6 154.9 Rest-of-World 51.9 15.6 16.2 11.0 94.7 Total $ 414.4 $ 469.5 $ 203.2 $ 137.0 $ 1,224.1 |
Schedule of Percentage Distribution between Major Classes of Inventory | The following table presents approximate percentage distribution between major classes of inventories: March 31, 2024 December 31, 2023 Raw Material and Work in Process 67.4% 66.7% Finished Goods and Purchased Parts 32.6% 33.3% |
Schedule of Property, Plant, and Equipment by Major Classification | The following table presents property, plant, and equipment by major classification: Useful Life in Years March 31, 2024 December 31, 2023 Land and Improvements $ 132.7 $ 139.2 Buildings and Improvements 3 - 50 389.2 414.5 Machinery and Equipment 3 - 15 1,221.5 1,219.4 Property, Plant and Equipment 1,743.4 1,773.1 Less: Accumulated Depreciation (749.4) (731.9) Net Property, Plant and Equipment $ 994.0 $ 1,041.2 |
HELD FOR SALE, ACQUISITIONS A_2
HELD FOR SALE, ACQUISITIONS AND DIVESTITURES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Asset and Liabilities Businesses Held for Sale | The assets and liabilities related to these businesses were included in Assets Held for Sale, Noncurrent Assets Held for Sale, Liabilities Held for Sale and Noncurrent Liabilities Held for Sale as shown in the table below: March 31, 2024 December 31, 2023 Assets Held for Sale Cash and Cash Equivalents $ 57.1 $ 61.3 Trade Receivables, Less Allowances 92.8 88.3 Inventories 192.5 199.7 Prepaid Expenses and Other Current Assets 13.1 12.2 Total Current Assets Held for Sale $ 355.5 $ 361.5 Net Property, Plant and Equipment 94.4 96.0 Operating Lease Assets 17.4 18.0 Goodwill 54.5 54.7 Intangible Assets, Net of Amortization 1.9 2.1 Deferred Income Tax Benefits 8.0 11.0 Other Noncurrent Assets 1.5 — Loss on Assets Held for Sale (109.2) (87.7) Total Noncurrent Assets Held for Sale $ 68.5 $ 94.1 Liabilities Held for Sale Accounts Payable $ 60.0 $ 67.2 Accrued Compensation and Employee Benefits 7.6 11.3 Other Accrued Expenses 18.6 21.7 Current Operating Lease Liabilities 3.7 3.5 Total Current Liabilities Held for Sale $ 89.9 $ 103.7 Pension and Other Post Retirement Benefits 0.9 0.9 Noncurrent Operating Lease Liabilities 15.4 16.2 Other Noncurrent Liabilities 3.6 3.3 Total Noncurrent Liabilities Held for Sale $ 19.9 $ 20.4 |
Schedule of Business Acquisitions | The total purchase price to acquire Altra was $5.1 billion, which consisted of the following: Cash paid for outstanding Altra Common Stock (1) $ 4,051.0 Stock based compensation (2) 23.1 Payment of Altra debt (3) 1,061.0 Pre-existing relationships (4) (0.5) Purchase price $ 5,134.6 (1) Cash paid for the common stock component of the purchase price was based on 65.3 million shares of outstanding Altra Common Stock as of March 27, 2023 at $62.00 per share, in accordance with the Altra Merger Agreement. (2) Represents fair value of replacement equity-based awards and Company common stock issued in settlement of other Altra share based awards. The portion of the fair value attributable to pre-acquisition service was recorded as part of the consideration transferred in the Altra Transaction of which $17.3 million was paid in cash during the second quarter of 2023. (3) Cash paid by the Company to settle (a) the term loan facility, (b) the revolving credit facility and (c) 95.28% of the 6.125% senior notes due 2026 of Stevens Holding Company, Inc., a wholly owned subsidiary of Altra (the "Altra Notes"). $18.1 million of the Altra Notes remained outstanding following the closing of the Altra Transaction. See Note 7 - Debt and Bank Credit Facilities for more information. (4) Represents effective settlement of outstanding payables and receivables between the Company and Altra. No gain or loss was recognized on this settlement. |
Schedule of Assets Acquired and Liabilities Assumed | The fair value of the assets acquired and liabilities assumed were as follows: As Reported as of December 31, 2023 Measurement period adjustments As of March 31, 2024 Cash and Cash Equivalents $ 259.1 $ — $ 259.1 Trade Receivables 258.1 (1.5) 256.6 Inventories 387.5 (0.5) 387.0 Prepaid Expenses and Other Current Assets 32.4 — 32.4 Property, Plant and Equipment 403.0 (0.5) 402.5 Intangible Assets (2) 2,142.0 — 2,142.0 Deferred Income Tax Benefits 0.7 0.1 0.8 Operating Lease Assets 46.8 — 46.8 Other Noncurrent Assets 12.7 — 12.7 Accounts Payable (183.3) — (183.3) Accrued Compensation and Benefits (66.0) — (66.0) Other Accrued Expenses (1) (144.6) (0.7) (145.3) Current Operating Lease Liabilities (12.3) — (12.3) Current Maturities of Long-Term Debt (0.4) — (0.4) Long-Term Debt (25.3) — (25.3) Deferred Income Taxes (533.3) 8.2 (525.1) Pension and Other Post Retirement Benefits (19.8) — (19.8) Noncurrent Operating Lease Liabilities (29.0) — (29.0) Other Noncurrent Liabilities (8.3) — (8.3) Total Identifiable Net Assets 2,520.0 5.1 2,525.1 Goodwill 2,614.6 (5.1) 2,609.5 Purchase price $ 5,134.6 $ — $ 5,134.6 (1) Includes $60.1 million related to Altra Transaction costs paid by the Company at the closing of the Altra Transaction. (2) Includes $1,710.0 million related to Customer Relationships, $330.0 million related to Trademarks and $102.0 million related to Technology . |
Schedule of Pro Forma Information | The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the Altra Transaction been completed as of the date indicated or the results that may be obtained in the future. For the Three Months Ended March 31, 2023 Net Sales $ 1,675.2 Net Income Attributable to Regal Rexnord Corporation $ 37.6 Earnings Per Share Attributable to Regal Rexnord Corporation: Basic $ 0.57 Assuming Dilution $ 0.56 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Changes In Accumulated Other Comprehensive Income (Loss) By Component, Net Of Tax | The following tables present changes in AOCI by component for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ 28.8 $ (25.0) $ (286.2) $ (282.4) Other Comprehensive Income (Loss) before Reclassifications 9.4 — (87.1) (77.7) Tax Impact (2.3) — — (2.3) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (9.9) 0.2 — (9.7) Tax Impact 2.4 — — 2.4 Net Current Period Other Comprehensive (Loss) Income (0.4) 0.2 (87.1) (87.3) Ending Balance $ 28.4 $ (24.8) $ (373.3) $ (369.7) March 31, 2023 Hedging Activities Pension and Post Retirement Benefit Adjustments Foreign Currency Translation Adjustments Total Beginning Balance $ 17.3 $ (13.3) $ (356.1) $ (352.1) Other Comprehensive Income before Reclassifications 22.1 — 34.2 56.3 Tax Impact (5.3) — — (5.3) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 1.7 (0.5) — 1.2 Tax Impact (0.4) 0.1 — (0.3) Net Current Period Other Comprehensive Income (Loss) 18.1 (0.4) 34.2 51.9 Ending Balance $ 35.4 $ (13.7) $ (321.9) $ (300.2) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents changes to goodwill during the three months ended March 31, 2024: Total Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Balance as of December 31, 2023 $ 6,553.1 $ 3,747.0 $ 753.9 $ 2,052.2 Acquisitions (5.1) (5.8) — 0.7 Translation Adjustments (41.8) (20.1) (2.2) (19.5) Balance as of March 31, 2024 $ 6,506.2 $ 3,721.1 $ 751.7 $ 2,033.4 Cumulative Goodwill Impairment Charges (1) $ 223.6 $ 18.1 $ 200.4 $ 5.1 (1) Excludes impairment charges related to Industrial Systems. |
Schedule of Finite-Lived Intangible Assets | Intangible assets consist of the following: March 31, 2024 December 31, 2023 Weighted Average Amortization Period (Years) Gross Value Accumulated Net Carrying Amount Gross Value Accumulated Net Carrying Amount Customer Relationships 15 $ 4,000.8 $ 804.6 $ 3,196.2 $ 4,028.5 $ 746.2 $ 3,282.3 Technology 13 300.3 97.5 202.8 302.6 92.9 209.7 Trademarks 10 705.5 138.7 566.8 712.1 120.7 591.4 Total Intangibles $ 5,006.6 $ 1,040.8 $ 3,965.8 $ 5,043.2 $ 959.8 $ 4,083.4 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consist of the following: March 31, 2024 December 31, 2023 Weighted Average Amortization Period (Years) Gross Value Accumulated Net Carrying Amount Gross Value Accumulated Net Carrying Amount Customer Relationships 15 $ 4,000.8 $ 804.6 $ 3,196.2 $ 4,028.5 $ 746.2 $ 3,282.3 Technology 13 300.3 97.5 202.8 302.6 92.9 209.7 Trademarks 10 705.5 138.7 566.8 712.1 120.7 591.4 Total Intangibles $ 5,006.6 $ 1,040.8 $ 3,965.8 $ 5,043.2 $ 959.8 $ 4,083.4 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents future estimated annual amortization for intangible assets: Year Estimated Amortization 2025 $ 346.8 2026 343.5 2027 343.4 2028 343.4 2029 341.3 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule Of Reportable Segments | The following sets forth certain financial information attributable to the Company's operating segments for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems Eliminations Total External Sales $ 643.4 $ 385.3 $ 400.2 $ 118.8 $ — $ 1,547.7 Intersegment Sales 2.9 5.1 4.6 0.3 (12.9) — Total Sales 646.3 390.4 404.8 119.1 (12.9) 1,547.7 Gross Profit 264.8 99.3 159.9 29.1 — 553.1 Operating Expenses 182.7 70.8 119.7 24.5 — 397.7 Loss on Assets Held for Sale — — — 21.5 — 21.5 Total Operating Expenses 182.7 70.8 119.7 46.0 — 419.2 Income (Loss) from Operations 82.1 28.5 40.2 (16.9) — 133.9 Depreciation and Amortization 70.2 11.6 45.9 0.5 — 128.2 Capital Expenditures 8.8 3.7 5.9 0.1 — 18.5 March 31, 2023 External Sales $ 414.4 $ 469.5 $ 203.2 $ 137.0 $ — $ 1,224.1 Intersegment Sales 3.5 4.2 5.2 0.7 (13.6) — Total Sales 417.9 473.7 208.4 137.7 (13.6) 1,224.1 Gross Profit 177.4 117.7 75.4 27.6 — 398.1 Operating Expenses 151.5 72.3 80.6 24.8 — 329.2 Total Operating Expenses 151.5 72.3 80.6 24.8 — 329.2 Income (Loss) from Operations 25.9 45.4 (5.2) 2.8 — 68.9 Depreciation and Amortization 41.6 11.7 19.7 3.5 — 76.5 Capital Expenditures 5.4 8.7 3.1 1.5 — 18.7 |
Schedule of Reconciliation of Segment Assets | The following table presents identifiable assets information attributable to the Company's operating segments as of March 31, 2024 and December 31, 2023: Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems Total Identifiable Assets as of March 31, 2024 $ 7,838.1 $ 1,960.4 $ 4,836.6 $ 438.7 $ 15,073.8 Identifiable Assets as of December 31, 2023 8,009.4 2,036.4 4,909.2 476.4 15,431.4 |
DEBT AND BANK CREDIT FACILITI_2
DEBT AND BANK CREDIT FACILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Indebtedness | The following table presents the Company’s indebtedness as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Senior Notes $ 4,700.0 $ 4,700.0 Term Facility 993.5 1,053.5 Land Term Facility 482.0 486.8 Multicurrency Revolving Facility 26.4 98.1 Altra Notes 18.1 18.1 Finance Leases 69.7 70.5 Other 7.1 7.5 Less: Debt Issuance Costs (50.9) (53.6) Total 6,245.9 6,380.9 Less: Current Maturities 3.9 3.9 Long-Term Debt $ 6,242.0 $ 6,377.0 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of Net Periodic Defined Benefit Pension Income | The following table presents the Company’s net periodic benefit cost (income) components: Three Months Ended March 31, 2024 March 31, 2023 Service Cost $ 0.5 $ 0.3 Interest Cost 5.4 5.6 Expected Return on Plan Assets (5.0) (6.7) Amortization of Prior Service Cost and Net Actuarial Loss (Gain) 0.2 (0.5) Special Termination Benefits 0.2 — Net Periodic Benefit Expense (Income) $ 1.3 $ (1.3) |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-Based Compensation Arrangements by Share-Based Payment Award | During the three months ended March 31, 2024, the Company granted the following share-based incentive awards: Award Type Number of Awards Weighted Average Grant-Date Fair Value Options and SARs 99,566 $ 62.85 Restricted Stock Units 107,395 $ 167.43 Performance Share Units 53,206 $ 245.81 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule Of Reconciliation Of Basic And Diluted Shares Used in EPS | The following table reconciles the basic and diluted shares used in earnings per share calculations for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 March 31, 2023 Denominator for Basic Earnings Per Share 66.4 66.2 Effect of Dilutive Securities 0.4 0.4 Denominator for Diluted Earnings Per Share 66.8 66.6 |
CONTINGENCIES (Tables)
CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Accrued Warranty Costs | The following table presents a reconciliation of the changes in accrued warranty costs for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 March 31, 2023 Beginning Balance $ 34.5 $ 28.8 Less: Payments (5.7) (3.3) Provisions 5.6 6.2 Acquisitions — 9.8 Translation Adjustments (0.2) — Ending Balance $ 34.2 $ 41.5 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Forward Contracts | The Company has currency forward contracts with maturities extending through March 2027. The notional amounts expressed in terms of the dollar value of the hedged currency were as follows: March 31, 2024 December 31, 2023 Chinese Renminbi $ 312.0 $ 302.3 Mexican Peso 72.1 101.4 Euro 617.4 465.8 Indian Rupee 24.4 30.1 British Pound 12.8 7.1 The Company has commodity forward contracts to hedge forecasted purchases of commodities with maturities extending through February 2025. The notional amounts expressed in terms of the dollar value of the hedged item were as follows: March 31, 2024 December 31, 2023 Copper $ 26.9 $ 37.5 Aluminum 0.9 1.4 |
Schedule of Fair Values of Derivative Instruments | Fair values of derivative instruments as of March 31, 2024 and December 31, 2023 were: March 31, 2024 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Other Accrued Expenses Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ 8.6 $ — Currency Contracts 10.3 — 1.0 Commodity Contracts 1.1 — 0.3 Not Designated as Hedging Instruments: Currency Contracts 1.2 — 0.7 Total Derivatives $ 12.6 $ 8.6 $ 2.0 December 31, 2023 Prepaid Expenses and Other Current Assets Other Noncurrent Assets Other Accrued Expenses Designated as Hedging Instruments: Interest Rate Swap Contracts $ — $ 5.3 $ — Currency Contracts 13.1 0.2 1.0 Commodity Contracts 1.0 0.1 0.6 Not Designated as Hedging Instruments: Currency Contracts 1.3 — 5.9 Total Derivatives $ 15.4 $ 5.6 $ 7.5 |
Schedule of Cash Flow Hedging Instruments | Derivatives Designated as Cash Flow Hedging Instruments: The effect of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Income (Loss) and Condensed Consolidated Statements of Comprehensive Income (Loss) were: Three Months Ended March 31, 2024 March 31, 2023 Commodity Forwards Currency Forwards Interest Rate Swaps Total Commodity Forwards Currency Forwards Interest Rate Swaps Total Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 2.2 $ 4.0 $ 3.2 $ 9.4 $ 5.5 $ 20.3 $ (3.7) $ 22.1 Amounts Reclassified from Other Comprehensive Income (Loss): (Loss) Gain Recognized in Cost of Sales (0.3) 8.7 — 8.4 (5.0) 2.0 — (3.0) Gain Recognized in Interest Expense — — 1.5 1.5 — — 1.3 1.3 Derivatives Not Designated as Cash Flow Hedging Instruments: The effect of derivative instruments not designated as cash flow hedges on the Condensed Consolidated Statements of Income (Loss) were: Three Months Ended March 31, 2024 March 31, 2023 Commodity Forwards Currency Forwards Commodity Forwards Currency Forwards Gain recognized in Cost of Sales $ — $ — $ 0.2 $ — Gain recognized in Operating Expenses — 10.1 — 1.9 |
Schedule of Derivatives Under Enforceable Master Netting Agreements | The following table presents on a net basis the derivative assets and liabilities that are subject to right of offset under enforceable master netting agreements: March 31, 2024 Gross Amounts as Presented on the Condensed Consolidated Balance Sheet Derivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis Assets $ 21.2 $ (1.4) $ 19.8 Liabilities 2.0 (1.4) 0.6 December 31, 2023 Gross Amounts as Presented on the Condensed Consolidated Balance Sheet Derivative Contract Amounts Subject to Right of Offset Derivative Contracts as Presented on a Net Basis Assets $ 15.7 $ (2.6) $ 13.1 Liabilities 7.5 (2.6) 4.9 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Financial Assets And Liabilities At Fair Value | The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Classification Assets: Prepaid Expenses and Other Current Assets: Derivative Currency Contracts $ 11.5 $ 14.4 Level 2 Derivative Commodity Contracts 1.1 1.0 Level 2 Other Noncurrent Assets: Assets Held in Rabbi Trust 14.9 12.7 Level 1 Derivative Currency Contracts — 0.2 Level 2 Derivative Commodity Contracts — 0.1 Level 2 Interest Rate Swap 8.6 5.3 Level 2 Liabilities: Other Accrued Expenses: Derivative Currency Contracts 1.7 6.9 Level 2 Derivative Commodity Contracts 0.3 0.6 Level 2 |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule Of Restructuring Reserve | The following table presents a reconciliation of provisions and payments for the restructuring projects for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 March 31, 2023 Beginning Balance $ 29.1 $ 15.1 Acquisition (1) — 0.2 Provision (2) 7.8 5.0 Less: Payments 16.1 10.2 Ending Balance $ 20.8 $ 10.1 (1) Excludes $12.4 million of severance related to the Altra Transaction, which was paid in the second quarter 2023. |
Schedule of Reconciliation Of Expenses By Type | The following table presents a reconciliation of restructuring costs for restructuring projects for the three months ended March 31, 2024 and March 31, 2023: Three Months Ended March 31, 2024 March 31, 2023 Restructuring Costs: Cost of Sales Operating Expenses Total Cost of Sales Operating Expenses Total Employee Termination Expenses $ 4.1 $ 0.7 $ 4.8 $ 2.3 $ 0.6 $ 2.9 Facility Related Costs 2.7 — 2.7 0.9 — 0.9 Other Expenses 1.6 0.2 1.8 1.2 — 1.2 Total Restructuring Costs $ 8.4 $ 0.9 $ 9.3 $ 4.4 $ 0.6 $ 5.0 The following table presents restructuring costs by segment for the three months ended March 31, 2024 and March 31, 2023: Restructuring Costs - Three Months Ended Total Industrial Powertrain Solutions Power Efficiency Solutions Automation & Motion Control Industrial Systems March 31, 2024 $ 9.3 $ 3.1 $ 4.9 $ 1.2 $ 0.1 March 31, 2023 $ 5.0 $ (0.4) $ 4.7 $ 0.5 $ 0.2 |
OTHER FINANCIAL INFORMATION (Di
OTHER FINANCIAL INFORMATION (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 1,547.7 | $ 1,224.1 |
Industrial Powertrain Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 643.4 | 414.4 |
Power Efficiency Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 385.3 | 469.5 |
Automation & Motion Control | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 400.2 | 203.2 |
Industrial Systems | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 118.8 | 137 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 1,025.8 | 876.1 |
North America | Industrial Powertrain Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 406.9 | 293.2 |
North America | Power Efficiency Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 296.9 | 367.4 |
North America | Automation & Motion Control | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 263.2 | 141.8 |
North America | Industrial Systems | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 58.8 | 73.7 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 128.6 | 98.4 |
Asia | Industrial Powertrain Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 35.7 | 16.5 |
Asia | Power Efficiency Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 37.8 | 43.8 |
Asia | Automation & Motion Control | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 21.1 | 1.4 |
Asia | Industrial Systems | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 34 | 36.7 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 293.8 | 154.9 |
Europe | Industrial Powertrain Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 150 | 52.8 |
Europe | Power Efficiency Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 34.6 | 42.7 |
Europe | Automation & Motion Control | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 95.8 | 43.8 |
Europe | Industrial Systems | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 13.4 | 15.6 |
Rest-of-World | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 99.5 | 94.7 |
Rest-of-World | Industrial Powertrain Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 50.8 | 51.9 |
Rest-of-World | Power Efficiency Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 16 | 15.6 |
Rest-of-World | Automation & Motion Control | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 20.1 | 16.2 |
Rest-of-World | Industrial Systems | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 12.6 | $ 11 |
OTHER FINANCIAL INFORMATION (Pe
OTHER FINANCIAL INFORMATION (Percentage Distribution Between Major Classes of Inventory) (Details) - Inventory Concentration Risk - Inventories | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Raw Material and Work in Process | ||
Inventory [Line Items] | ||
Percentage of total inventory (in percent) | 67.40% | 66.70% |
Finished Goods and Purchased Parts | ||
Inventory [Line Items] | ||
Percentage of total inventory (in percent) | 32.60% | 33.30% |
OTHER FINANCIAL INFORMATION (Pr
OTHER FINANCIAL INFORMATION (Property, Plant, And Equipment By Major Classification) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 1,743.4 | $ 1,773.1 |
Less: Accumulated Depreciation | (749.4) | (731.9) |
Net Property, Plant and Equipment | 994 | 1,041.2 |
Land and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 132.7 | 139.2 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 389.2 | 414.5 |
Buildings and Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 3 years | |
Buildings and Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 50 years | |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 1,221.5 | $ 1,219.4 |
Machinery and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 3 years | |
Machinery and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 15 years |
OTHER FINANCIAL INFORMATION (Na
OTHER FINANCIAL INFORMATION (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
ROU assets within property, plant and equipment | $ 43.6 | $ 44.4 |
Timing period | 15 days | |
Supplier finance program, obligation, statement of financial position [extensible enumeration] | Accounts Payable, Current | |
Supplier financing obligations | $ 41.6 | $ 60.8 |
HELD FOR SALE, ACQUISITIONS A_3
HELD FOR SALE, ACQUISITIONS AND DIVESTITURES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Sep. 23, 2023 | Mar. 27, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | ||||
Share-based payment arrangement, accelerated cost | $ 15.7 | |||
Altra Merger Agreement | ||||
Business Acquisition [Line Items] | ||||
Share price (in dollars per share) | $ 62 | |||
Purchase price | $ 5,100 | $ 5,134.6 | ||
Payment of Altra transaction expenses | $ 5 | 65.6 | ||
Share-based payment arrangement, accelerated cost | 15.7 | |||
Altra Merger Agreement | Acquisition-related Costs | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 81.3 | |||
Held for sale | Industrial Systems | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 400 | |||
Percentage of consideration deferred | 17% | |||
Proceeds from Divestiture of Businesses | $ 355 |
HELD FOR SALE, ACQUISITIONS A_4
HELD FOR SALE, ACQUISITIONS AND DIVESTITURES (Schedule of Asset and Liabilities Businesses Held for Sale) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Assets Held for Sale | |||
Cash and Cash Equivalents | $ 57.1 | $ 0 | |
Total Current Assets Held for Sale | 377.2 | $ 368.6 | |
Total Noncurrent Assets Held for Sale | 68.5 | 94.1 | |
Liabilities Held for Sale | |||
Liabilities Held for Sale | 89.9 | 103.7 | |
Total Noncurrent Liabilities Held for Sale | 19.9 | 20.4 | |
Held for sale | Industrial Systems | |||
Assets Held for Sale | |||
Cash and Cash Equivalents | 57.1 | 61.3 | |
Trade Receivables, Less Allowances | 92.8 | 88.3 | |
Inventories | 192.5 | 199.7 | |
Prepaid Expenses and Other Current Assets | 13.1 | 12.2 | |
Total Current Assets Held for Sale | 355.5 | 361.5 | |
Net Property, Plant and Equipment | 94.4 | 96 | |
Operating Lease Assets | 17.4 | 18 | |
Goodwill | 54.5 | 54.7 | |
Intangible Assets, Net of Amortization | 1.9 | 2.1 | |
Deferred Income Tax Benefits | 8 | 11 | |
Other Noncurrent Assets | 1.5 | 0 | |
Loss on Assets Held for Sale | (109.2) | (87.7) | |
Total Noncurrent Assets Held for Sale | 68.5 | 94.1 | |
Liabilities Held for Sale | |||
Accounts Payable | 60 | 67.2 | |
Accrued Compensation and Employee Benefits | 7.6 | 11.3 | |
Other Accrued Expenses | 18.6 | 21.7 | |
Current Operating Lease Liabilities | 3.7 | 3.5 | |
Liabilities Held for Sale | 89.9 | 103.7 | |
Pension and Other Post Retirement Benefits | 0.9 | 0.9 | |
Noncurrent Operating Lease Liabilities | 15.4 | 16.2 | |
Other Noncurrent Liabilities | 3.6 | 3.3 | |
Total Noncurrent Liabilities Held for Sale | $ 19.9 | $ 20.4 |
HELD FOR SALE, ACQUISITIONS A_5
HELD FOR SALE, ACQUISITIONS AND DIVESTITURES (Purchase Price) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||||
Mar. 27, 2023 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 24, 2023 | |
Business Acquisition [Line Items] | ||||||
Stock based compensation | $ 9.1 | $ 21.7 | ||||
Common stock, shares outstanding (in shares) | 66.5 | 66.3 | ||||
Long-term debt | $ 6,245.9 | $ 6,380.9 | ||||
Senior Notes Due 2026 | Senior Notes | ||||||
Business Acquisition [Line Items] | ||||||
Debt instrument interest rate (in percent) | 6.05% | |||||
Altra Merger Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for outstanding Altra Common Stock | 4,051 | $ 17.3 | ||||
Stock based compensation | 23.1 | |||||
Payment of Altra debt | 1,061 | |||||
Pre-existing relationships | (0.5) | |||||
Purchase price | $ 5,100 | $ 5,134.6 | ||||
Share price (in dollars per share) | $ 62 | |||||
Altra Merger Agreement | Senior Notes Due 2026 | Senior Notes | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of debt outstanding | 95.28% | 95.28% | ||||
Debt instrument interest rate (in percent) | 6.125% | 6.125% | ||||
Long-term debt | $ 18.1 | $ 18.1 | ||||
Altra Merger Agreement | Altra Industrial Motion Corp | ||||||
Business Acquisition [Line Items] | ||||||
Common stock, shares outstanding (in shares) | 65.3 |
HELD FOR SALE, ACQUISITIONS A_6
HELD FOR SALE, ACQUISITIONS AND DIVESTITURES (Fair Values of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||
Goodwill | $ 6,506.2 | $ 6,553.1 |
Altra Merger Agreement | ||
Business Acquisition [Line Items] | ||
Cash and Cash Equivalents | 259.1 | |
Trade Receivables | 256.6 | |
Inventories | 387 | |
Prepaid Expenses and Other Current Assets | 32.4 | |
Property, Plant and Equipment | 402.5 | |
Intangible Assets | 2,142 | |
Deferred Income Tax Benefits | 0.8 | |
Operating Lease Assets | 46.8 | |
Other Noncurrent Assets | 12.7 | |
Accounts Payable | (183.3) | |
Accrued Compensation and Benefits | (66) | |
Other Accrued Expenses | (145.3) | |
Current Operating Lease Liabilities | (12.3) | |
Current Maturities of Long-Term Debt | (0.4) | |
Long-Term Debt | (25.3) | |
Deferred Income Taxes | (525.1) | |
Pension and Other Post Retirement Benefits | (19.8) | |
Noncurrent Operating Lease Liabilities | (29) | |
Other Noncurrent Liabilities | (8.3) | |
Total Identifiable Net Assets | 2,525.1 | |
Goodwill | 2,609.5 | |
Purchase price | 5,134.6 | |
Transaction costs | 60.1 | |
Altra Merger Agreement | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Intangible Assets | 1,710 | |
Altra Merger Agreement | Trademarks | ||
Business Acquisition [Line Items] | ||
Intangible Assets | 330 | |
Altra Merger Agreement | Technology | ||
Business Acquisition [Line Items] | ||
Intangible Assets | 102 | |
Altra Merger Agreement | As Originally Reported | ||
Business Acquisition [Line Items] | ||
Cash and Cash Equivalents | 259.1 | |
Trade Receivables | 258.1 | |
Inventories | 387.5 | |
Prepaid Expenses and Other Current Assets | 32.4 | |
Property, Plant and Equipment | 403 | |
Intangible Assets | 2,142 | |
Deferred Income Tax Benefits | 0.7 | |
Operating Lease Assets | 46.8 | |
Other Noncurrent Assets | 12.7 | |
Accounts Payable | (183.3) | |
Accrued Compensation and Benefits | (66) | |
Other Accrued Expenses | (144.6) | |
Current Operating Lease Liabilities | (12.3) | |
Current Maturities of Long-Term Debt | (0.4) | |
Long-Term Debt | (25.3) | |
Deferred Income Taxes | (533.3) | |
Pension and Other Post Retirement Benefits | (19.8) | |
Noncurrent Operating Lease Liabilities | (29) | |
Other Noncurrent Liabilities | (8.3) | |
Total Identifiable Net Assets | 2,520 | |
Goodwill | 2,614.6 | |
Purchase price | $ 5,134.6 | |
Altra Merger Agreement | Effect of Change | ||
Business Acquisition [Line Items] | ||
Trade Receivables | (1.5) | |
Inventories | (0.5) | |
Property, Plant and Equipment | (0.5) | |
Deferred Income Tax Benefits | 0.1 | |
Other Accrued Expenses | (0.7) | |
Deferred Income Taxes | 8.2 | |
Total Identifiable Net Assets | 5.1 | |
Goodwill | $ (5.1) |
HELD FOR SALE, ACQUISITIONS A_7
HELD FOR SALE, ACQUISITIONS AND DIVESTITURES (Altra Pro Forma Information) (Details) - Altra Merger Agreement $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares | |
Business Acquisition [Line Items] | |
Net Sales | $ | $ 1,675.2 |
Net Income Attributable to Regal Rexnord Corporation | $ | $ 37.6 |
Basic (in dollars per share) | $ / shares | $ 0.57 |
Assuming Dilution (in dollars per share) | $ / shares | $ 0.56 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 6,365.1 | $ 6,422.6 |
Other Comprehensive Income (Loss) before Reclassifications | (77.7) | 56.3 |
Tax Impact | (2.3) | (5.3) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (9.7) | 1.2 |
Tax Impact | 2.4 | (0.3) |
Net Current Period Other Comprehensive (Loss) Income | (87.3) | 51.9 |
Ending balance | 6,275.5 | 6,455.7 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (282.4) | (352.1) |
Ending balance | (369.7) | (300.2) |
Hedging Activities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 28.8 | 17.3 |
Other Comprehensive Income (Loss) before Reclassifications | 9.4 | 22.1 |
Tax Impact | (2.3) | (5.3) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (9.9) | 1.7 |
Tax Impact | 2.4 | (0.4) |
Net Current Period Other Comprehensive (Loss) Income | (0.4) | 18.1 |
Ending balance | 28.4 | 35.4 |
Pension and Post Retirement Benefit Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (25) | (13.3) |
Other Comprehensive Income (Loss) before Reclassifications | 0 | 0 |
Tax Impact | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 0.2 | (0.5) |
Tax Impact | 0 | 0.1 |
Net Current Period Other Comprehensive (Loss) Income | 0.2 | (0.4) |
Ending balance | (24.8) | (13.7) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (286.2) | (356.1) |
Other Comprehensive Income (Loss) before Reclassifications | (87.1) | 34.2 |
Tax Impact | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Tax Impact | 0 | 0 |
Net Current Period Other Comprehensive (Loss) Income | (87.1) | 34.2 |
Ending balance | $ (373.3) | $ (321.9) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Changes To Goodwill) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 6,553.1 |
Acquisitions | (5.1) |
Translation Adjustments | (41.8) |
Ending balance | 6,506.2 |
Cumulative goodwill impairment charges | 223.6 |
Industrial Powertrain Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 3,747 |
Acquisitions | (5.8) |
Translation Adjustments | (20.1) |
Ending balance | 3,721.1 |
Cumulative goodwill impairment charges | 18.1 |
Power Efficiency Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 753.9 |
Acquisitions | 0 |
Translation Adjustments | (2.2) |
Ending balance | 751.7 |
Cumulative goodwill impairment charges | 200.4 |
Automation & Motion Control | |
Goodwill [Roll Forward] | |
Beginning balance | 2,052.2 |
Acquisitions | 0.7 |
Translation Adjustments | (19.5) |
Ending balance | 2,033.4 |
Cumulative goodwill impairment charges | $ 5.1 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Value | $ 5,006.6 | $ 5,043.2 |
Accumulated Amortization | 1,040.8 | 959.8 |
Net Carrying Amount | $ 3,965.8 | 4,083.4 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 15 years | |
Gross Value | $ 4,000.8 | 4,028.5 |
Accumulated Amortization | 804.6 | 746.2 |
Net Carrying Amount | $ 3,196.2 | 3,282.3 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 13 years | |
Gross Value | $ 300.3 | 302.6 |
Accumulated Amortization | 97.5 | 92.9 |
Net Carrying Amount | $ 202.8 | 209.7 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 10 years | |
Gross Value | $ 705.5 | 712.1 |
Accumulated Amortization | 138.7 | 120.7 |
Net Carrying Amount | $ 566.8 | $ 591.4 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 86.7 | $ 46.3 |
Estimated amortization expense remainder of year | $ 348.7 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Estimated Amortization) (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2025 | $ 346.8 |
2026 | 343.5 |
2027 | 343.4 |
2028 | 343.4 |
2029 | $ 341.3 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 4 | ||
Total Sales | $ 1,547.7 | $ 1,224.1 | |
Gross Profit | 553.1 | 398.1 | |
Operating Expenses | 397.7 | 329.2 | |
Loss on Assets Held for Sale | 21.5 | 0 | |
Total Operating Expenses | 419.2 | 329.2 | |
Income (Loss) from Operations | 133.9 | 68.9 | |
Depreciation and Amortization | 128.2 | 76.5 | |
Capital Expenditures | 18.5 | 18.7 | |
Assets | 15,073.8 | $ 15,431.4 | |
Industrial Powertrain Solutions | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 643.4 | 414.4 | |
Assets | 7,838.1 | 8,009.4 | |
Power Efficiency Solutions | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 385.3 | 469.5 | |
Assets | 1,960.4 | 2,036.4 | |
Automation & Motion Control | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 400.2 | 203.2 | |
Assets | 4,836.6 | 4,909.2 | |
Industrial Systems | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 118.8 | 137 | |
Assets | 438.7 | $ 476.4 | |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 12.9 | 13.6 | |
Intersegment Eliminations | Industrial Powertrain Solutions | |||
Segment Reporting Information [Line Items] | |||
Total Sales | (2.9) | (3.5) | |
Intersegment Eliminations | Power Efficiency Solutions | |||
Segment Reporting Information [Line Items] | |||
Total Sales | (5.1) | (4.2) | |
Intersegment Eliminations | Automation & Motion Control | |||
Segment Reporting Information [Line Items] | |||
Total Sales | (4.6) | (5.2) | |
Intersegment Eliminations | Industrial Systems | |||
Segment Reporting Information [Line Items] | |||
Total Sales | (0.3) | (0.7) | |
Operating Segments | Industrial Powertrain Solutions | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 646.3 | 417.9 | |
Gross Profit | 264.8 | 177.4 | |
Operating Expenses | 182.7 | 151.5 | |
Loss on Assets Held for Sale | 0 | ||
Total Operating Expenses | 182.7 | 151.5 | |
Income (Loss) from Operations | 82.1 | 25.9 | |
Depreciation and Amortization | 70.2 | 41.6 | |
Capital Expenditures | 8.8 | 5.4 | |
Operating Segments | Power Efficiency Solutions | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 390.4 | 473.7 | |
Gross Profit | 99.3 | 117.7 | |
Operating Expenses | 70.8 | 72.3 | |
Loss on Assets Held for Sale | 0 | ||
Total Operating Expenses | 70.8 | 72.3 | |
Income (Loss) from Operations | 28.5 | 45.4 | |
Depreciation and Amortization | 11.6 | 11.7 | |
Capital Expenditures | 3.7 | 8.7 | |
Operating Segments | Automation & Motion Control | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 404.8 | 208.4 | |
Gross Profit | 159.9 | 75.4 | |
Operating Expenses | 119.7 | 80.6 | |
Loss on Assets Held for Sale | 0 | ||
Total Operating Expenses | 119.7 | 80.6 | |
Income (Loss) from Operations | 40.2 | (5.2) | |
Depreciation and Amortization | 45.9 | 19.7 | |
Capital Expenditures | 5.9 | 3.1 | |
Operating Segments | Industrial Systems | |||
Segment Reporting Information [Line Items] | |||
Total Sales | 119.1 | 137.7 | |
Gross Profit | 29.1 | 27.6 | |
Operating Expenses | 24.5 | 24.8 | |
Loss on Assets Held for Sale | 21.5 | ||
Total Operating Expenses | 46 | 24.8 | |
Income (Loss) from Operations | (16.9) | 2.8 | |
Depreciation and Amortization | 0.5 | 3.5 | |
Capital Expenditures | $ 0.1 | $ 1.5 |
DEBT AND BANK CREDIT FACILITI_3
DEBT AND BANK CREDIT FACILITIES (Schedule Of Indebtedness) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 28, 2022 |
Debt Instrument [Line Items] | |||
Finance Leases | $ 69.7 | $ 70.5 | |
Less: Debt Issuance Costs | (50.9) | (53.6) | |
Total | 6,245.9 | 6,380.9 | |
Less: Current Maturities | 3.9 | 3.9 | |
Long-Term Debt | 6,242 | 6,377 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 4,700 | 4,700 | |
Senior Notes | Altra Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 18.1 | 18.1 | |
Line of Credit | Term Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 993.5 | 1,053.5 | |
Line of Credit | Land Term Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 482 | 486.8 | $ 486.8 |
Line of Credit | Multicurrency Revolving Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 26.4 | 98.1 | |
Other | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 7.1 | $ 7.5 |
DEBT AND BANK CREDIT FACILITI_4
DEBT AND BANK CREDIT FACILITIES (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Mar. 28, 2022 | |
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 570,000,000 | |||
Term Facility | ||||
Debt Instrument [Line Items] | ||||
Amortization rate per annum (in percent) | 5% | |||
Term Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 550,000,000 | |||
Additional borrowing capacity | 840,000,000 | |||
Long-term debt, gross | $ 993,500,000 | $ 1,053,500,000 | ||
Weighted average interest rate, over time | 7.20% | 6% | ||
Land Term Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 482,000,000 | 486,800,000 | 486,800,000 | |
Weighted average interest rate (in percent) | 7.20% | 5.90% | ||
Multicurrency Revolving Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,000,000,000 | |||
Long-term debt, gross | $ 26,400,000 | $ 98,100,000 | ||
Weighted average interest rate, over time | 7.20% | 5.80% | ||
Available borrowing capacity | $ 1,543,600,000 | |||
Average daily balance | $ 98,500,000 | $ 580,600,000 | ||
Non-use fee, percentage (in percent) | 0.25% | |||
Multicurrency Revolving Facility | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | $ 0 |
DEBT AND BANK CREDIT FACILITI_5
DEBT AND BANK CREDIT FACILITIES (Senior Notes) (Details) - USD ($) | 3 Months Ended | |||
May 02, 2024 | Jan. 24, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 6,245,900,000 | $ 6,380,900,000 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Possible increase in interest rate (in percent) | 2% | |||
Proceeds from senior notes | $ 4,647,000,000 | |||
Interest bearing deposits | 3,600,000,000 | |||
Interest income | $ 29,400,000 | |||
Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 4,697,100,000 | |||
Term of debt | 540 days | |||
Extinguishment of debt | $ 4,697,100,000 | |||
Long-term debt | 2,900,000 | |||
Senior Notes Due 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,100,000,000 | |||
Debt instrument interest rate (in percent) | 6.05% | |||
Senior Notes Due 2026 | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,099,000,000 | |||
Debt instrument interest rate (in percent) | 6.05% | |||
Senior Notes Due 2028 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,250,000,000 | |||
Debt instrument interest rate (in percent) | 6.05% | |||
Senior Notes Due 2028 | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,249,400,000 | |||
Debt instrument interest rate (in percent) | 6.05% | |||
Senior Notes Due 2030 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,100,000,000 | |||
Debt instrument interest rate (in percent) | 6.30% | |||
Senior Notes Due 2030 | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,099,400,000 | |||
Debt instrument interest rate (in percent) | 6.30% | |||
Senior Notes Due 2033 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,250,000,000 | |||
Debt instrument interest rate (in percent) | 6.40% | |||
Senior Notes Due 2033 | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,249,300,000 | |||
Debt instrument interest rate (in percent) | 6.40% |
DEBT AND BANK CREDIT FACILITI_6
DEBT AND BANK CREDIT FACILITIES (Other Disclosures) (Details) - USD ($) $ in Millions | Mar. 27, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Jan. 24, 2023 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 6,245.9 | $ 6,380.9 | |||
Finance Leases | 5.20% | 5.20% | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Fair value of debt | $ 4,791.7 | 4,802.4 | |||
Long-term debt, gross | 4,700 | $ 4,700 | |||
Senior Notes Due 2026 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate (in percent) | 6.05% | ||||
Altra Merger Agreement | Senior Notes Due 2026 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 18.1 | $ 18.1 | |||
Debt instrument interest rate (in percent) | 6.125% | 6.125% | |||
Percentage of debt outstanding | 95.28% | 95.28% | |||
Debt assumed | $ 382.7 |
RETIREMENT PLANS (Schedule Of N
RETIREMENT PLANS (Schedule Of Net Periodic Defined Benefit Pension Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||
Service Cost | $ 0.5 | $ 0.3 |
Interest Cost | 5.4 | 5.6 |
Expected Return on Plan Assets | (5) | (6.7) |
Amortization of Prior Service Cost and Net Actuarial Loss (Gain) | 0.2 | (0.5) |
Special Termination Benefits | 0.2 | 0 |
Net Periodic Benefit Expense (Income) | $ 1.3 | $ (1.3) |
RETIREMENT PLANS (Narrative) (D
RETIREMENT PLANS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Other Postretirement Benefits Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Contributions | $ 1.8 | $ 1.5 | $ 8.3 |
Expected contributions | 17.8 | ||
Pension Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Contributions | $ 11.6 | $ 6.2 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | ||
Compensation expense | $ 9.1 | $ 21.7 |
Share-based payment arrangement, accelerated cost | 15.7 | |
Excess income tax benefit recognized related to share-based compensation | $ 2.1 | $ 1.4 |
SHAREHOLDERS' EQUITY (Summary O
SHAREHOLDERS' EQUITY (Summary Of Share-Based Incentive Plan Grant Activity For Options and SAR's) (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Options and SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted (in shares) | shares | 99,566 |
Options granted, weighted average exercise price (in dollars per share) | $ / shares | $ 62.85 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards other than options granted (in shares) | shares | 107,395 |
Awards other than options granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 167.43 |
Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards other than options granted (in shares) | shares | 53,206 |
Awards other than options granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 245.81 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 34.80% | 180.90% | |
Unrecognized tax benefits | $ 5.6 | $ 8.5 | |
Accrued interest | $ 1.2 | $ 1.1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Shares excluded from the calculation of the effect of dilutive securities (in shares) | 0.3 | 0.4 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Denominator for basic earnings per share (in shares) | 66.4 | 66.2 |
Effect of dilutive securities (in shares) | 0.4 | 0.4 |
Denominator for diluted earnings per share (in shares) | 66.8 | 66.6 |
CONTINGENCIES (Narrative) (Deta
CONTINGENCIES (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) subsidiary claimant | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of subsidiaries involved in litigation | subsidiary | 1 |
Long-term purchase commitment | $ | $ 900 |
Loss contingency, full amount paid | 100% |
Loss contingency, claims settled and dismissed, number | claimant | 350 |
CONTINGENCIES (Changes in Accru
CONTINGENCIES (Changes in Accrued Warranty) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning Balance | $ 34.5 | $ 28.8 |
Less: Payments | (5.7) | (3.3) |
Provisions | 5.6 | 6.2 |
Acquisitions | 0 | 9.8 |
Translation Adjustments | (0.2) | 0 |
Ending Balance | $ 34.2 | $ 41.5 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | May 31, 2022 USD ($) derivative_instrument | Jun. 30, 2020 USD ($) derivative_instrument | |
Derivative [Line Items] | |||||
Derivative gains, net of tax | $ 14,200,000 | $ 15,100,000 | |||
Net AOCI hedging component | 28,400,000 | ||||
Net current deferred gain expected to be realized in the next twelve months | $ 20,600,000 | ||||
Forward Contracts | |||||
Derivative [Line Items] | |||||
Number of derivative instruments | derivative_instrument | 2 | 2 | |||
Notional amount of instrument | $ 250,000,000 | $ 250,000,000 | |||
Proceeds from derivative instrument | $ 16,200,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Notional Amounts Of Forward Contracts) (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | May 31, 2022 | Jun. 30, 2020 |
Forward Contracts | ||||
Derivative [Line Items] | ||||
Notional amount of instrument | $ 250,000,000 | $ 250,000,000 | ||
Forward Contracts | Chinese Renminbi | ||||
Derivative [Line Items] | ||||
Notional amount of instrument | $ 312,000,000 | $ 302,300,000 | ||
Forward Contracts | Mexican Peso | ||||
Derivative [Line Items] | ||||
Notional amount of instrument | 72,100,000 | 101,400,000 | ||
Forward Contracts | Euro | ||||
Derivative [Line Items] | ||||
Notional amount of instrument | 617,400,000 | 465,800,000 | ||
Forward Contracts | Indian Rupee | ||||
Derivative [Line Items] | ||||
Notional amount of instrument | 24,400,000 | 30,100,000 | ||
Forward Contracts | British Pound | ||||
Derivative [Line Items] | ||||
Notional amount of instrument | 12,800,000 | 7,100,000 | ||
Commodity Contracts | Copper | ||||
Derivative [Line Items] | ||||
Notional amount of instrument | 26,900,000 | 37,500,000 | ||
Commodity Contracts | Aluminum | ||||
Derivative [Line Items] | ||||
Notional amount of instrument | $ 900,000 | $ 1,400,000 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Fair Values Of Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Derivative asset, current | $ 12.6 | $ 15.4 |
Derivative asset, noncurrent | 8.6 | 5.6 |
Derivative liability, current | $ 2 | $ 7.5 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Designated as Hedging Instruments: | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative asset, current | $ 0 | $ 0 |
Derivative asset, noncurrent | 8.6 | 5.3 |
Derivative liability, current | 0 | 0 |
Designated as Hedging Instruments: | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative asset, current | 10.3 | 13.1 |
Derivative asset, noncurrent | 0 | 0.2 |
Derivative liability, current | 1 | 1 |
Designated as Hedging Instruments: | Commodity Contracts | ||
Derivative [Line Items] | ||
Derivative asset, current | 1.1 | 1 |
Derivative asset, noncurrent | 0 | 0.1 |
Derivative liability, current | 0.3 | 0.6 |
Not Designated as Hedging Instruments: | Currency Contracts | ||
Derivative [Line Items] | ||
Derivative asset, current | 1.2 | 1.3 |
Derivative asset, noncurrent | 0 | 0 |
Derivative liability, current | $ 0.7 | $ 5.9 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Cash Flow Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ 14.2 | $ 15.1 | |
Cash Flow Hedging | Designated as Hedging Instruments: | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 9.4 | $ 22.1 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 8.4 | (3) | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Expense | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 1.5 | 1.3 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Commodity Forwards | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 2.2 | 5.5 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Commodity Forwards | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | (0.3) | (5) | |
Cash Flow Hedging | Designated as Hedging Instruments: | Commodity Forwards | Interest Expense | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Currency Forwards | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 4 | 20.3 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Currency Forwards | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 8.7 | 2 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Currency Forwards | Interest Expense | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Rate Swaps | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 3.2 | (3.7) | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Rate Swaps | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instruments: | Interest Rate Swaps | Interest Expense | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 1.5 | 1.3 | |
Cash Flow Hedging | Not Designated as Hedging Instruments: | Commodity Forwards | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 0 | 0.2 | |
Cash Flow Hedging | Not Designated as Hedging Instruments: | Commodity Forwards | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 0 | 0 | |
Cash Flow Hedging | Not Designated as Hedging Instruments: | Currency Forwards | Cost of Sales | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | 0 | 0 | |
Cash Flow Hedging | Not Designated as Hedging Instruments: | Currency Forwards | Operating Expenses | |||
Derivative [Line Items] | |||
Amounts Reclassified from Other Comprehensive Income (Loss) | $ 10.1 | $ 1.9 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS (Offsetting) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts as Presented on the Condensed Consolidated Balance Sheet | $ 21.2 | $ 15.7 |
Derivative Contract Amounts Subject to Right of Offset | (1.4) | (2.6) |
Derivative Contracts as Presented on a Net Basis | 19.8 | 13.1 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts as Presented on the Condensed Consolidated Balance Sheet | 2 | 7.5 |
Derivative Contract Amounts Subject to Right of Offset | (1.4) | (2.6) |
Derivative Contracts as Presented on a Net Basis | $ 0.6 | $ 4.9 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset, current | $ 12.6 | $ 15.4 |
Derivative asset, noncurrent | 8.6 | 5.6 |
Derivative liability, current | 2 | 7.5 |
Assets Held in Rabbi Trust | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset, noncurrent | 14.9 | 12.7 |
Derivative Currency Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset, current | 11.5 | 14.4 |
Derivative asset, noncurrent | 0 | 0.2 |
Derivative liability, current | 1.7 | 6.9 |
Derivative Commodity Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset, current | 1.1 | 1 |
Derivative asset, noncurrent | 0 | 0.1 |
Derivative liability, current | 0.3 | 0.6 |
Interest Rate Swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset, noncurrent | $ 8.6 | $ 5.3 |
RESTRUCTURING ACTIVITIES (Sched
RESTRUCTURING ACTIVITIES (Schedule Of Restructuring Reserve) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 29.1 | $ 10.1 | $ 15.1 |
Acquisition | 0 | 0.2 | |
Provision | 7.8 | 5 | |
Less: Payments | 16.1 | 10.2 | |
Ending Balance | 20.8 | $ 10.1 | |
Equipment related write-offs | $ 1.5 | ||
Altra Merger Agreement | |||
Restructuring Reserve [Roll Forward] | |||
Severance costs | $ 12.4 |
RESTRUCTURING ACTIVITIES (Recon
RESTRUCTURING ACTIVITIES (Reconciliation Of Expenses By Type) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 9.3 | $ 5 |
Total restructuring and restructuring-related costs | 9.3 | 5 |
Industrial Powertrain Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and restructuring-related costs | 3.1 | (0.4) |
Power Efficiency Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and restructuring-related costs | 4.9 | 4.7 |
Automation & Motion Control | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and restructuring-related costs | 1.2 | 0.5 |
Industrial Systems | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and restructuring-related costs | 0.1 | 0.2 |
Employee Termination Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4.8 | 2.9 |
Facility Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2.7 | 0.9 |
Other Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1.8 | 1.2 |
Cost of Sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 8.4 | 4.4 |
Cost of Sales | Employee Termination Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4.1 | 2.3 |
Cost of Sales | Facility Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2.7 | 0.9 |
Cost of Sales | Other Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1.6 | 1.2 |
Operating Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.9 | 0.6 |
Operating Expenses | Employee Termination Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.7 | 0.6 |
Operating Expenses | Facility Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 0 |
Operating Expenses | Other Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0.2 | $ 0 |
RESTRUCTURING ACTIVITIES (Narra
RESTRUCTURING ACTIVITIES (Narrative) (Details) $ in Millions | Dec. 31, 2024 USD ($) |
Forecast | |
Restructuring Cost and Reserve [Line Items] | |
Expected future restructuring charges | $ 32 |