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OTHER FINANCIAL INFORMATION
 6 Months Ended
Jun. 30, 2026
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.
Nature of Performance Obligations
For performance obligations related to substantially all of the Company's product sales, the Company determines that the customer obtains control upon shipment and recognizes revenue accordingly. Once a product has shipped, the customer is able to direct the use of and obtain substantially all of the remaining benefits from the asset. The Company considers control to have transferred upon shipment because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset.
For certain contracts, the Company transfers control and recognizes revenue over time. The Company generally recognizes revenue over time on contracts for which the Company is creating an asset with no alternative use and has an enforceable right to payment for performance completed to date. The Company satisfies its performance obligations over time and uses a cost-based input method to measure progress. In applying the cost-based method of revenue recognition, the Company uses actual costs incurred to date relative to the total estimated costs for the contract in conjunction with the customer's commitment to perform in determining the amount of revenue to recognize. The Company has determined that the cost-based input method best depicts the transfer of control of goods or services to the customer.
For contracts recognized using the cost-based input method, the Company determines the contract asset or contract liability position at each reporting period. Contract assets relate to the Company's right to consideration for work completed but not billed at the reporting date and are recorded in Prepaid Expenses and Other Current Assets and Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. Contract liabilities relate to advance consideration received from customers or advance billings for which revenue has not been recognized and are recorded in Other Accrued Expenses on the Condensed Consolidated Balance Sheets.
The following table presents contract assets and contract liabilities as of June 30, 2026 and December 31, 2025:
Current Contract AssetsNoncurrent Contract AssetsCurrent Contract Liabilities
Balance as of June 30, 2026$127.1 $3.7 $20.8 
Balance as of December 31, 202583.5 — 34.5 
For the six months ended June 30, 2026, the company recognized revenue of $23.9 million from contract liabilities which existed as of December 31, 2025. Contract assets and contract liabilities were not material as of June 30, 2025 and December 31, 2024.

Transaction Price Allocated to Remaining Performance Obligations

As of June 30, 2026, we estimated that approximately $884.0 million in revenue is expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied), with 11.9% expected to be recognized in the remainder of 2026, 71.4% in 2027, and 16.7% thereafter. These amounts exclude revenue allocated to remaining performance obligations for contracts with original terms of 12 months or less.

Disaggregation of Revenue
The following tables presents the Company’s revenues disaggregated by geographical region:
Three Months Ended
June 30, 2026Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal
North America$340.6 $440.4 $300.4 $1,081.4 
Asia22.9 48.7 61.0 132.6 
Europe96.5 129.0 36.6 262.1 
Rest-of-World17.7 51.3 13.3 82.3 
Total$477.7 $669.4 $411.3 $1,558.4 
Three Months Ended
June 30, 2025Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal
North America$270.8 $432.2 $344.3 $1,047.3 
Asia30.8 44.5 42.6 117.9 
Europe89.0 123.4 36.0 248.4 
Rest-of-World20.5 49.7 12.3 82.5 
Total$411.1 $649.8 $435.2 $1,496.1 
Six Months Ended
June 30, 2026Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal
North America$655.3 $868.3 $578.6 $2,102.2 
Asia43.4 90.9 111.7 246.0 
Europe199.6 257.5 70.5 527.6 
Rest-of-World36.5 101.0 24.2 161.7 
Total$934.8 $1,317.7 $785.0 $3,037.5 
Six Months Ended
June 30, 2025Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal
North America$531.7 $847.1 $670.8 $2,049.6 
Asia54.3 78.3 80.3 212.9 
Europe182.4 246.3 69.8 498.5 
Rest-of-World39.0 90.8 23.4 153.2 
Total$807.4 $1,262.5 $844.3 $2,914.2 

Inventories

The following table presents approximate percentage distribution between major classes of inventories:
June 30, 2026December 31, 2025
Raw Material and Work in Process62.0%63.4%
Finished Goods and Purchased Parts38.0%36.6%
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 YearsJune 30, 2026December 31, 2025
Land and Improvements$128.3 $130.6 
Buildings and Improvements
3 - 50
431.0 434.8 
Machinery and Equipment
3 - 15
1,338.0 1,314.8 
Property, Plant and Equipment1,897.3 1,880.2 
Less: Accumulated Depreciation(1,028.6)(968.4)
Net Property, Plant and Equipment$868.7 $911.8 

As of June 30, 2026 and December 31, 2025, $66.1 million and $66.7 million of right-of-use assets arising from finance leases 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, were $49.8 million and $42.0 million as of June 30, 2026 and December 31, 2025, respectively.

Tariffs

On February 20, 2026, the US Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were not authorized by the statute. The Company is the importer of record for certain raw materials and products that were previously subject to such tariffs under IEEPA.
On April 20, 2026, the US Customs and Border Protection (“CBP”) launched the Consolidated Administration and Processing of Entries (“CAPE”) system to manage the initial phases of refund claims. Based on the CBP-established eligibility criteria, we submitted $38.1 million of IEEPA tariff refund claims to date, of which we have received $21.0 million in cash as of June 30, 2026. Under a loss recovery model, we concluded that all submitted and accepted IEEPA tariff refund claims are probable of recovery and, therefore, recognized $38.1 million in the second quarter 2026. Of the $38.1 million, $32.0 million was recorded as a reduction to Cost of Sales and $1.0 million as Interest Income in the Condensed Consolidated Statement of Income and $5.1 million as a reduction to Inventories in the Condensed Consolidated Balance Sheet. We recorded a receivable of $17.1 million in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheet as of June 30, 2026.