Restructuring Costs

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring Costs

14. Restructuring Costs

From time to time, the Company has initiated various restructuring programs and incurred severance and other restructuring costs.

During 2017, the Company commenced a restructuring plan (“2017 Altra Plan”) as a result of the Company’s acquisition of Stromag and to rationalize its global renewable energy business. The actions taken pursuant to the 2017 Altra Plan included reducing headcount, facility consolidations and the elimination of certain costs. The Company did not incur any costs as a result of the 2017 Altra Plan during the quarter and year to date period ended September 30, 2022. The Company does not expect to incur any additional material costs as a result of the 2017 Altra Plan.

During 2019, the Company commenced a restructuring plan (“2019 Altra Plan”) to drive efficiencies, reduce the number of facilities and optimize its operating margin. Subject to the closing of the Merger with Regal Rexnord, the Company expects to incur an additional $1.0 - $2.0 million in restructuring expenses under the 2019 Altra Plan over the next two years, primarily related to headcount reductions and plant consolidations. Refer to Footnote 18 for further information on the Merger. During the quarter and year to date period ended September 30, 2022, the Company incurred expenses of $3.9 million and $4.8 million, respectively, comprised mainly of severance costs.

The following is a reconciliation of the accrued restructuring costs between January 1, 2022 and September 30, 2022:

	2017 Altra Plan		2019 Altra Plan			Total All Plans
Balance at January 1, 2022	$	—	$	0.5		$	0.5
Restructuring expense incurred		—		0.4			0.4
Cash payments		—		(0.3	)		(0.3	)
Balance at March 31, 2022	$	—	$	0.6		$	0.6
Restructuring expense incurred		—		0.5			0.5
Cash payments		—		(0.5	)		(0.5	)
Balance at June 30, 2022		—		0.6			0.6
Restructuring expense incurred		—		3.9			3.9
Cash payments		—		(0.5	)		(0.5	)
Balance at September 30, 2022	$	—	$	4.0		$	4.0

The following is a reconciliation of the accrued restructuring costs between January 1, 2021 and September 30, 2021:

	2017 Altra Plan			2019 Altra Plan			Total All Plans
Balance at January 1, 2021	$	0.5		$	1.8		$	2.3
Restructuring expense incurred		—			0.9			0.9
Cash payments		(0.1	)		(1.4	)		(1.5	)
Balance at March 31, 2021	$	0.4		$	1.3		$	1.7
Restructuring expense incurred		—			0.8			0.8
Cash payments		(0.1	)		(1.3	)		(1.4	)
Balance at June 30, 2021		0.3			0.8			1.1
Restructuring expense incurred		—			0.7			0.7
Cash payments		(0.1	)		(1.1	)		(1.2	)
Balance at September 30, 2021	$	0.2		$	0.4		$	0.6

The following is a reconciliation of restructuring expense by segment for the quarter ended September 30, 2022:

	2017 Altra Plan		2019 Altra Plan		Total All Plans
Power Transmission Technologies	$	—	$	3.9	$	3.9
Automation & Specialty		—		—		—
Total restructuring expense	$	—	$	3.9	$	3.9

The following is a reconciliation of restructuring expense by segment for the quarter ended September 30, 2021:

	2017 Altra Plan		2019 Altra Plan		Total All Plans
Power Transmission Technologies	$	—	$	0.4	$	0.4
Automation & Specialty		—		0.3		0.3
Total restructuring expense	$	—	$	0.7	$	0.7

The following is a reconciliation of restructuring expense by segment for the year to date period ended September 30, 2022:

	2017 Altra Plan		2019 Altra Plan		Total All Plans
Power Transmission Technologies	$	—	$	4.1	$	4.1
Automation & Specialty		—		0.7		0.7
Total restructuring expense	$	—	$	4.8	$	4.8

The following is a reconciliation of restructuring expense by segment for the year to date period ended September 30, 2021:

	2017 Altra Plan		2019 Altra Plan		Total All Plans
Power Transmission Technologies	$	—	$	1.4	$	1.4
Automation & Specialty		—		1.0		1.0
Total restructuring expense	$	—	$	2.4	$	2.4

The total accrued restructuring reserve as of September 30, 2022, relates to severance to be paid to former employees and facility consolidation and relocation costs under the 2019 Altra Plan and is recorded in accruals and other current liabilities on the accompanying unaudited condensed consolidated balance sheet.