Restructuring Activities

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

The Company incurred restructuring and restructuring-related costs on projects during 2024, 2023 and 2022. The Company has initiated restructuring plans to achieve cost synergies from procurement, distribution efficiencies, footprint rationalization and other general cost savings measures. Restructuring costs include employee termination and plant relocation costs. Restructuring-related costs include costs directly associated with actions resulting from the Company's simplification initiatives, such as asset write-downs or accelerated depreciation due to shortened useful lives in connection with site closures, discretionary employment benefit costs and other facility rationalization costs. Restructuring costs for employee termination expenses are generally recognized when the severance liability is determined to be probable of being paid and reasonably estimable while plant relocation costs and related costs are generally required to be expensed as incurred.

The following is a reconciliation of provisions and payments for the restructuring projects for 2024 and 2023:

	December 31, 2024		December 31, 2023
Beginning Balance	$	29.1	$	15.1
Acquisition(1)	—		0.2
Provision(2)	41.3		42.2
Less: Payments	54.1		28.4
Ending Balance	$	16.3	$	29.1

(1) Excludes $12.4 million of severance related to the Altra Transaction, which was paid in the second quarter 2023.

(2) Excludes equipment related write-offs and restructuring related depreciation adjustments. The twelve month period ended December 31, 2023 excludes $19.3 million of accelerated depreciation.

The following is a reconciliation of expenses by type for the restructuring projects in 2024, 2023 and 2022:

	2024						2023						2022
Restructuring Costs:	Cost of Sales		Operating Expenses		Total		Cost of Sales		Operating Expenses		Total		Cost of Sales		Operating Expenses		Total
Severance Expense	$	11.2	$	14.7	$	25.9	$	12.1	$	15.2	$	27.3	$	25.1	$	6.4	$	31.5
Facility Related Costs	7.8		1.5		9.3		25.5		0.3		25.8		13.5		1.1		14.6
Other Expenses	6.5		2.4		8.9		7.8		0.6		8.4		0.3		0.4		0.7
Total Restructuring Costs	$	25.5	$	18.6	$	44.1	$	45.4	$	16.1	$	61.5	$	38.9	$	7.9	$	46.8

The following table shows the allocation of Restructuring Expenses by segment for 2024, 2023 and 2022:

	Total		Industrial Powertrain Solutions		Power Efficiency Solutions		Automation & Motion Control		Industrial Systems
Restructuring Expenses - 2024	$	44.1	$	21.7	$	11.3	$	10.1	$	1.0
Restructuring Expenses - 2023	$	61.5	$	27.0	$	30.4	$	3.2	$	0.9
Restructuring Expenses - 2022	$	46.8	$	11.8	$	19.4	$	14.1	$	1.5

The Company expects to record aggregate future charges of approximately $29.8 million in 2025. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in future periods in connection with these activities.