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OTHER FINANCIAL INFORMATION
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
OTHER FINANCIAL INFORMATION OTHER FINANCIAL INFORMATION
Revenue Recognition

The Company recognizes revenue from the sale of premium-efficiency electric motors and air moving subsystems, highly engineered industrial power transmission components and subsystems, and a portfolio of discrete automation products that include controls, actuators, drives, and high-precision servo motors. 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, 2025Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal
North America$260.9 $414.9 $326.5 $1,002.3 
Asia23.5 33.8 37.7 95.0 
Europe93.4 122.9 33.8 250.1 
Rest-of-World18.5 41.1 11.1 70.7 
Total$396.3 $612.7 $409.1 $1,418.1 
Three Months Ended
March 31, 2024Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsIndustrial SystemsTotal
North America$263.2 $406.9 $296.9 $58.8 $1,025.8 
Asia21.1 35.7 37.8 34.0 128.6 
Europe95.8 150.0 34.6 13.4 293.8 
Rest-of-World20.1 50.8 16.0 12.6 99.5 
Total$400.2 $643.4 $385.3 $118.8 $1,547.7 
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, 2025December 31, 2024
Raw Material and Work in Process66.7%67.8%
Finished Goods and Purchased Parts33.3%32.2%
Inventories are stated at the lower of cost or net realizable value, using the FIFO cost method. Material, labor and factory overhead costs are included in the inventories.
Property, Plant, and Equipment

The following table presents property, plant, and equipment by major classification:
Useful Life in YearsMarch 31, 2025December 31, 2024
Land and Improvements$130.4 $134.5 
Buildings and Improvements
3 - 50
393.0 387.2 
Machinery and Equipment
3 - 15
1,205.7 1,189.8 
Property, Plant and Equipment1,729.1 1,711.5 
Less: Accumulated Depreciation(824.6)(790.5)
Net Property, Plant and Equipment$904.5 $921.0 

As of March 31, 2025 and December 31, 2024, $43.7 million and $44.7 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 following information presents changes to the Company's outstanding obligations under the supplier finance program, which are classified within Accounts Payable, during the three months ended March 31, 2025:

Balance as of December 31, 2024$41.0 
Plus: Obligations Added38.3 
Less: Obligations Settled37.3 
Balance as of March 31, 2025$42.0