ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Asset and Liabilities Businesses Held for Sale

The following table summarizes the fair value of the sale proceeds received in connection with the divestiture, which are subject to further post-closing adjustment:

	April 30, 2024
Purchase price	$	400.0
Cash transferred to buyer	66.1
Estimated working capital and other adjustments	(19.5)
Total purchase price	446.6
Direct costs to sell	(7.3)
Fair value of sale consideration, net(1)	$	439.3

(1) The fair value of sale consideration, net includes an immaterial post-close adjustment to the purchase price for which cash has not yet been received.

The following table summarizes the carrying value of the disposal group and resulting loss on sale:

	April 30, 2024
Net assets sold	$	419.4
Noncontrolling Interest	(9.2)
Accumulated Other Comprehensive Income	121.3
Payables to seller	(0.2)
Carrying value of disposal group	$	531.3
Loss on Sale of Businesses	$	(92.0)

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 of December 31, 2023, as shown in the table below:

	December 31, 2023
Assets Held for Sale
Cash and Cash Equivalents	$	61.3
Trade Receivables, Less Allowances	88.3
Inventories	199.7
Prepaid Expenses and Other Current Assets	12.2
Total Current Assets Held for Sale	$	361.5
Net Property, Plant and Equipment	96.0
Operating Lease Assets	18.0
Goodwill	54.7
Intangible Assets, Net of Amortization	2.1
Deferred Income Tax Benefits	11.0
Other Noncurrent Assets	—
Loss on Assets Held for Sale	(87.7)
Total Noncurrent Assets Held for Sale	$	94.1
Liabilities Held for Sale
Accounts Payable	$	67.2
Accrued Compensation and Employee Benefits	11.3
Other Accrued Expenses	21.7
Current Operating Lease Liabilities	3.5
Total Current Liabilities Held for Sale	$	103.7
Pension and Other Post Retirement Benefits	0.9
Noncurrent Operating Lease Liabilities	16.2
Other Noncurrent Liabilities	3.3
Total Noncurrent Liabilities Held for Sale	$	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 September 30, 2023		For the Nine Months Ended September 30, 2023
Net Sales	$	1,649.8	$	5,093.6
Net Loss Attributable to Regal Rexnord Corporation	$	(126.7)	$	(7.2)
Loss Per Share Attributable to Regal Rexnord Corporation:
Basic	$	(1.91)	$	(0.11)
Assuming Dilution	$	(1.91)	$	(0.11)