10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-33209

ALTRA INDUSTRIAL MOTION CORP.

(Exact name of registrant as specified in its charter)

Delaware	61-1478870
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
300 Granite Street, Suite 201, Braintree, MA	02184
(Address of principal executive offices)	(Zip Code)

(781) 917-0600

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x   No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company.)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of October 23, 2014, 26,635,336 shares of Common Stock, $0.001 par value per share, were outstanding.

1

TABLE OF CONTENTS

		Page #
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	39
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	40
SIGNATURES		42
EXHIBITS		43
EX-31.1 Section 302 Certification of Chief Executive Officer
EX-31.2 Section 302 Certification of Chief Financial Officer
EX-32.1 Section 906 Certification of Chief Executive Officer
EX-32.2 Section 906 Certification of Chief Financial Officer
EX-101 Certain materials formatted in XBRL

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

3

ALTRA INDUSTRIAL MOTION CORP.

Condensed Consolidated Balance Sheets

Amounts in thousands, except share amounts

	September 30, 2014			December 31, 2013
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	42,994		$	63,604
Trade receivables, less allowance for doubtful accounts of $2,802 and $2,245 at September 30, 2014 and December 31, 2013, respectively	117,872			109,084
Inventories	135,383			143,665
Deferred income taxes	9,821			9,754
Asset held for sale	573			—
Income tax receivable	1,918			5,032
Prepaid expenses and other current assets	8,195			18,066
Total current assets	316,756			349,205
Property, plant and equipment, net	152,776			157,535
Intangible assets, net	115,530			118,768
Goodwill	104,653			104,339
Deferred income taxes	894			934
Other non-current assets, net	4,188			4,895
Total assets	$	694,797		$	735,676
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	43,914		$	51,180
Accrued payroll	24,194			23,983
Accruals and other current liabilities	38,649			34,979
Deferred income taxes	44			44
Income tax payable	4,088			12,963
Current portion of long-term debt	14,532			16,924
Total current liabilities	125,421			140,073
Long-term debt - less current portion and net of unaccreted discount	237,062			261,348
Deferred income taxes	53,822			53,813
Pension liabilities	7,565			8,025
Long-term taxes payable	762			1,038
Other long-term liabilities	844			1,055
Redeemable non-controlling interest	979			991
Commitment and Contingencies (See Note 17)
Stockholders’ equity:
Common stock ($0.001 par value, 90,000,000 shares authorized, 26,515,072 and 26,819,795 issued and outstanding at September 30, 2014 and December 31, 2013, respectively)	27			27
Additional paid-in capital	142,841			154,471
Retained earnings	155,198			133,231
Accumulated other comprehensive loss	(29,724		)	(18,396		)
Total stockholders’ equity	268,342			269,333
Total liabilities, redeemable non-controlling interest and stockholders’ equity	$	694,797		$	735,676

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

4

ALTRA INDUSTRIAL MOTION CORP.

Condensed Consolidated Statements of Operations

Amounts in thousands, except per share data

	Quarter Ended					Year to Date Ended
	September 30, 2014			September 28, 2013		September 30, 2014			September 28, 2013
	(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)
Net sales	$	202,520		$	175,443	$	627,856		$	541,688
Cost of sales	140,187			121,785		437,257			378,112
Gross profit	62,333			53,658		190,599			163,576
Operating expenses:
Selling, general and administrative expenses	39,067			31,672		117,828			96,742
Research and development expenses	3,818			3,002		11,719			9,150
Restructuring costs	1,643			97		1,643			655
	44,528			34,771		131,190			106,547
Income from operations	17,805			18,887		59,409			57,029
Other non-operating income and expense:
Interest expense, net	3,000			2,567		8,991			7,830
Other non-operating expense (income), net	(313		)	686		446			783
	2,687			3,253		9,437			8,613
Income before income taxes	15,118			15,634		49,972			48,416
Provision for income taxes	8,170			5,176		18,843			15,423
Net income	6,948			10,458		31,129			32,993
Net (income) loss attributable to non-controlling interest	(2		)	43		(21		)	77
Net income attributable to Altra Industrial Motion Corp.	$	6,946		$	10,501	$	31,108		$	33,070
Weighted average shares, basic	26,648			26,780		26,785			26,750
Weighted average shares, diluted	27,334			26,836		27,557			26,852
Net income per share:
Basic net income attributable to Altra Industrial Motion Corp.	$	0.26		$	0.39	$	1.16		$	1.24
Diluted net income attributable to Altra Industrial Motion Corp.	$	0.25		$	0.39	$	1.13		$	1.23
Cash dividend declared	$	0.12		$	0.10	$	0.34		$	0.28

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

5

ALTRA INDUSTRIAL MOTION CORP.

Condensed Consolidated Statement of Comprehensive Income

Amounts in thousands

	Quarter Ended						Year to Date Ended
	September 30, 2014			September 28, 2013			September 30, 2014			September 28, 2013
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net Income	$	6,948		$	10,458		$	31,129		$	32,993
Other Comprehensive income (loss):
Foreign currency translation adjustment	(12,341		)	(6,727		)	(11,437		)	(46		)
Change in fair value of interest rate swap, net of tax	229			(346		)	109			191
Other comprehensive income (loss)	(12,112		)	(7,073		)	(11,328		)	145
Comprehensive (loss) income	(5,164		)	3,385			19,801			33,138
Comprehensive (income) loss attributable to noncontrolling interest	105			43			12			77
Comprehensive income (loss) attributable to Altra Industrial Motion Corp.	$	(5,059	)	$	3,428		$	19,813		$	33,215

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

6

ALTRA INDUSTRIAL MOTION CORP.

Condensed Consolidated Statements of Cash Flows

Amounts in thousands

	Year to Date Ended
	September 30, 2014			September 28, 2013
	(Unaudited)			(Unaudited)
Cash flows from operating activities
Net income	$	31,129		$	32,993
Adjustments to reconcile net income to net cash flows:
Depreciation	17,238			16,047
Amortization of intangible assets	6,884			4,882
Amortization of deferred financing costs	699			646
Loss on foreign currency, net	461			593
Amortization of inventory fair value adjustment	2,264			—
Accretion of debt discount, net	2,527			2,331
Loss on disposal of fixed assets	195			—
Provision for deferred taxes	1,350			—
Stock based compensation	2,633			2,397
Changes in assets and liabilities:
Trade receivables	(11,452		)	(8,756		)
Inventories	5,276			3,451
Accounts payable and accrued liabilities	(6,682		)	9,197
Other current assets and liabilities	9,704			254
Other operating assets and liabilities	(188		)	(1,866		)
Net cash from operating activities	62,038			62,169
Cash flows from investing activities
Purchase of property, plant and equipment	(16,464		)	(14,361		)
Proceeds from sale of land	274			—
Acquisition of Guardian, net of $2.0 million cash acquired	(15,092		)	—
Net cash from investing activities	(31,282		)	(14,361		)
Cash flows from financing activities
Payments on term loan facility	(21,478		)	(3,750		)
Payments on revolving credit facility	(9,190		)	(54,304		)
Dividend payments	(8,644		)	(4,852		)
Proceeds from equipment loan	2,245			3,550
Payment of equipment and working capital notes	(1,028		)	(1,100		)
Borrowing under revolving credit facility	5,000			—
Shares surrendered for tax withholding	(1,447		)	(1,166		)
Payments on mortgages and other	(435		)	(540		)
Purchases of common stock under share repurchase program	(12,816		)	—
Net cash from financing activities	(47,793		)	(62,162		)
Effect of exchange rate changes on cash and cash equivalents	(3,573		)	(528		)
Net change in cash and cash equivalents	(20,610		)	(14,882		)
Cash and cash equivalents at beginning of year	63,604			85,154
Cash and cash equivalents at end of period	$	42,994		$	70,272
Cash paid during the period for:
Interest	$	6,504		$	5,561
Income taxes	$	23,333		$	15,156

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

7

ALTRA INDUSTRIAL MOTION CORP.

Consolidated Statement of Stockholders’ Equity

Amounts in thousands

(Unaudited)

	Common Stock		Shares		Additional Paid in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total			Redeemable Non-Controlling Interest
Balance at January 1, 2013	$	27	26,724		$	152,188		$	103,200		$	(23,403	)	$	232,012		$	1,239
Stock-based compensation and vesting of restricted stock	—		94		1,231			—			—			1,231			—
Net income attributable to Altra Industrial Motion Corp.	—		—		—			33,070			—			33,070			—
Net loss attributable to non-controlling interest	—		—		—			(77		)	—			(77		)	(77		)
Dividends declared	—		—		—			(7,471		)				(7,471		)	—
Change in fair value of interest rate swap	—		—		—			—			191			191			—
Cumulative foreign currency translation adjustment	—		—		—			—			(46		)	(46		)	(121		)
Balance at September 28, 2013	$	27	26,818		$	153,419		$	128,722		$	(23,258	)	$	258,910		$	1,041
Balance at January 1, 2014	$	27	26,820		$	154,471		$	133,231		$	(18,396	)	$	269,333		$	991
Stock-based compensation and vesting of restricted stock	—		78		1,186			—			—			1,186			—
Net income loss attributable to Altra Industrial Motion Corp.	—		—		—			31,108			—			31,108			—
Net income attributable to non-controlling interest	—		—		—			—			—			—			21
Dividends declared	—		—		—			(9,141		)	—			(9,141		)	—
Change in fair value of interest rate swap	—		—		—			—			109			109			—
Cumulative foreign currency translation adjustment	—		—		—			—			(11,437		)	(11,437		)	(33		)
Repurchases of common stock - 382,626 shares	—		(383	)	(12,816		)	—			—			(12,816		)	—
Balance at September 30, 2014	$	27	26,515		$	142,841		$	155,198		$	(29,724	)	$	268,342		$	979

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

8

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

1. Organization and Nature of Operations

Headquartered in Braintree, Massachusetts, Altra Industrial Motion Corp. (the “Company” or "Altra"), through its wholly-owned subsidiary Altra Power Transmissions, Inc. (“APT”), is a leading multi-national designer, producer and marketer of a wide range of electro-mechanical power transmission products. The Company brings together strong brands covering over 42 product lines with production facilities in eleven countries. Altra’s leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Lamiflex Couplings, Marland Clutch, Matrix, Nuttall Gear, Stieber Clutch, Svendborg Brakes, TB Wood’s, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch.

In November 2013, Altra Holdings, Inc. changed its name to Altra Industrial Motion Corp., and Altra Industrial Motion, Inc., the Company’s wholly owned subsidiary, changed its name to Altra Power Transmission, Inc.

2. Basis of Presentation

The Company was formed on November 30, 2004 following acquisitions of The Kilian Company (“Kilian”) and certain subsidiaries of Colfax Corporation (“Colfax”). During 2006, the Company acquired Hay Hall Holdings Limited (“Hay Hall”) and Bear Linear. On April 5, 2007, the Company acquired TB Wood’s Corporation (“TB Wood’s”), and on October 5, 2007, the Company acquired substantially all of the assets of All Power Transmission Manufacturing, Inc. On May 29, 2011, the Company acquired substantially all of the assets of Danfoss Bauer GmbH relating to its gear motor business (“Bauer”). On July 11, 2012, the Company acquired 85% of privately held Lamiflex do Brasil Equipamentos Industriais Ltda. (“Lamiflex”). On December 17, 2013, the Company completed the acquisition of Svendborg Brakes A/S, now known as Svendborg Brakes ApS, and S.B. Patent Holding ApS (together “Svendborg”). The Company acquired all the issued and outstanding shares of Svendborg from Friction Holding A/S. On July 1, 2014, the Company acquired all of the issued and outstanding shares of Guardian Ind., Inc. (“Guardian Couplings”).

The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position as of September 30, 2014 and December 31, 2013, results of operations for the quarters and year to date periods ended September 30, 2014 and September 28, 2013, and cash flows for the year to date periods ended September 30, 2014 and September 28, 2013.

The Company modified its quarterly reporting calendar effective at the beginning of fiscal year 2014 to report on a calendar month-end basis with all quarters ending on the last day of the final month of each quarter. Historically, the Company’s reporting calendar for all quarters presented has consisted of thirteen weeks of operations per quarter. The Company’s fiscal year end will remain December 31. The effects of the change in the reporting periods did not have a significant impact on the consolidated financial statements.

3. Fair Value of Financial Instruments

The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities approximate fair value. Debt under the Company’s Credit Agreement including a Term Loan Facility and a Revolving Credit Facility approximate the fair values due to the variable rate nature at current market rates.

The carrying amount of the 2.75% Convertible Notes (the “Convertible Notes”) was $85 million at each of September 30, 2014 and December 31, 2013. The estimated fair value of the Convertible Notes at September 30, 2014 and December 31, 2013 was $102.8 million and $116.5 million, respectively, based on inputs other than quoted prices that are observable for the Convertible Notes (level 2).

Included in cash and cash equivalents as of September 30, 2014 and December 31, 2013 are money market fund investments of $0.3 million and $16.6 million, respectively, which are reported at fair value based on quoted market prices for such investments (level 1).

9

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

4. Changes in Accumulated Other Comprehensive Income (Loss) by Component

The following is a reconciliation of changes in Accumulated Other Comprehensive Income (Loss) by Component for the periods presented:

	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension Plans			Cumulative Foreign Currency Translation Adjustment			Total
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2013	$	—	$	(4,607	)	$	(18,796	)	$	(23,403	)
Net current-period Other Comprehensive Income (Loss)	191		—			(46		)	145
Accumulated Other Comprehensive Income (Loss) by Component, Balance at September 28, 2013	$	191	$	(4,607	)	$	(18,842	)	$	(23,258	)

	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension Plans			Cumulative Foreign Currency Translation Adjustment			Total
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2014	$	135	$	(3,133	)	$	(15,398	)	$	(18,396	)
Net current-period Other Comprehensive Income (Loss)	109		—			(11,437		)	(11,328		)
Accumulated Other Comprehensive Income (Loss) by Component, Balance at September 30, 2014	$	244	$	(3,133	)	$	(26,835	)	$	(29,724	)

5. Net Income per Share

Basic earnings per share is based on the weighted average number of shares of common stock outstanding, and diluted earnings per share is based on the weighted average number of shares of common stock outstanding and all potentially dilutive common stock equivalents outstanding. Common stock equivalents are included in the per share calculations when the effect of their inclusion is dilutive.

The following is a reconciliation of basic to diluted net income per share:

	Quarter Ended				Year to Date Ended
	September 30, 2014		September 28, 2013		September 30, 2014		September 28, 2013
Net income attributable to Altra Industrial Motion Corp.	$	6,946	$	10,501	$	31,108	$	33,070
Shares used in net income per common share - basic	26,648		26,780		26,785		26,750
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock	626		—		687		—
Incremental shares of unvested restricted common stock	60		56		85		102
Shares used in net income per common share - diluted	27,334		26,836		27,557		26,852
Earnings per share:
Basic net income attributable to Altra Industrial Motion Corp.	$	0.26	$	0.39	$	1.16	$	1.24
Diluted net income attributable to Altra Industrial Motion Corp.	$	0.25	$	0.39	$	1.13	$	1.23

During the quarter and year to date periods ended September 30, 2014, the average price of the Company’s common stock exceeded the current conversion price of the Company’s Convertible Notes resulting in additional

10

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

shares being included in the shares used in net income per common share in the diluted earnings per share calculation above (See Note 12).

6. Acquisitions

Guardian Couplings

On July 1, 2014, the Company acquired all of the issued and outstanding shares of Guardian Ind., Inc. (“Guardian Couplings”) for cash consideration of $17.1 million. This transaction is referred to as the Guardian Acquisition. Guardian Couplings is a manufacturer and supplier of flywheel, motion control and general industrial couplings. The Guardian Acquisition provides the Company with increased product coverage in several core markets, including energy, farm and agriculture, and specialty machinery and is expected to provide synergies with the Company's existing product offerings.

The sellers agreed to provide the Company with a limited set of representations and warranties, including those with respect to outstanding and potential liabilities. Claims for a breach of a representation or warranty are secured by a limited escrow. There is no guarantee that the Company would actually be able to recover all or any portion of the sums payable in connection with such breach. The transaction is subject to a working capital adjustment to be agreed upon between the Company and the seller, which is expected to occur by the end of 2014.

As of September 30, 2014, the allocation of the purchase price for the Guardian Acquisition is provisional, pending finalization of the Company’s acquisition accounting. The Company believes that such preliminary allocations provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. The purchase price of $17.1 million, excluding acquisition costs of $0.4 million, is in excess of the fair value of net assets acquired by approximately $2.1 million. Current assets acquired, excluding approximately $2.0 million in cash, totaled approximately $4.0 million, non-current assets totaled approximately $9.2 million and current liabilities totaled approximately $0.2 million.

The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. This goodwill is deductible for income tax purposes over a period of 15 years. The Company expects to develop synergies, such as lower cost country sourcing and global procurement.

The non-current assets acquired included the following intangible assets:

Customer relationships, subject to amortization	$	7,450
Trade names and trademarks, not subject to amortization	650
Total intangible assets	$	8,100

Customer relationships are subject to amortization which will be amortized on a straight-line basis over their estimated useful lives of 14 years, which represents the anticipated period over which the Company estimates it will benefit from the acquired assets.

Svendborg Brakes

In December 2013, the Company consummated an agreement (the “Purchase Agreement”) to acquire all of the issued and outstanding shares of Svendborg for cash consideration of €80.1 million ($110.2 million), less the cash remaining on the balance sheet at close of €5.4 million ($7.5 million). This transaction is referred to as the Svendborg Acquisition. Through the Svendborg Acquisition, the Company acquired the leading global manufacturer of premium quality caliper brakes. With the Svendborg Acquisition, in addition to a presence in Denmark, the Company acquired Svendborg’s well-established sales network in 7 additional countries in Western Europe, China, South America, Australia and the United States as well as a manufacturing facility in China.

Under the Purchase Agreement, the seller agreed to provide the Company with a limited set of representations and warranties, including with respect to outstanding and potential liabilities. Claims for a breach of a representation or warranty are secured by a limited escrow and warranty and indemnity insurance. Damages resulting from a breach of a representation or

11

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

warranty could have a material and adverse effect on the Company’s financial condition and results of operations, and there is no guarantee that the Company would actually be able to recover all or any portion of the sums payable in connection with such breach.

Under the Purchase Agreement, the seller agreed to provide the Company with an indemnification for certain tax liabilities related to transfer pricing (the “Transfer Pricing Claims”) identified as part of an ongoing tax audit in Denmark. As part of the Purchase Agreement, an escrow in the amount of approximately €8.5 million ($11.6 million) was established for the Transfer Pricing Claims. The Company estimated this liability to be $8.1 million and as a result initially recorded a liability included in taxes payable and an escrow receivable in other current assets. The purchase price in the reconciliation below represents cash consideration less the estimated escrow receivable for which the Company expects to be indemnified.

During the year to date period ended September 30, 2014, the Company paid approximately €5.9 million ($8.1 million ) to settle a portion of the Transfer Pricing Claims and received a corresponding amount from the escrow established for the Transfer Pricing Claims.

Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition date. The Company is in the process of finalizing the valuation of certain intangibles, related tax impact and the valuation of certain tax information to finalize fair value. The Company updated the acquisition accounting for the measurement period adjustments noted in the table below during the year to date period ended September 30, 2014.

	At Acquisition Date		Measurement Period Adjustments			At Acquisition Date (As Adjusted)
Purchase price, excluding acquisition costs of approximately $2.5 million	$	102,096	$	—		$	102,096
Cash and cash equivalents	7,483		—			7,483
Trade receivables	21,575		(809		)	20,766
Inventories	25,452		(224		)	25,228
Prepaid and other	5,511		(76		)	5,435
Property, plant and equipment	12,216		—			12,216
Other assets	1,133		—			1,133
Intangible assets	48,893		—			48,893
Total assets acquired	122,263		(1,109		)	121,154
Accounts payable	4,833		—			4,833
Accrued expenses and other current liabilities	9,620		168			9,788
Taxes payable	10,254		—			10,254
Deferred tax liability	11,483		—			11,483
Total liabilities assumed	36,190		168			36,358
Net assets acquired	86,073		(1,277		)	84,796
Excess of purchase price over fair value of net assets acquired	$	16,023	$	1,277		$	17,300

The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. This goodwill is not deductible for income tax purposes. The Company expects to develop synergies, such as lower cost country sourcing, global procurement, the ability to cross-sell product, and the ability to penetrate certain geographic areas, as a result of the acquisition of Svendborg.

Customer relationships, subject to amortization	$	40,050
Trade names and trademarks, not subject to amortization	8,500
Patents	343
Total intangible assets	$	48,893

12

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

Customer relationships are subject to amortization which will be amortized on a straight-line basis over their estimated useful lives of 17 years, which represents the anticipated period over which the Company estimates benefits from the acquired assets will be realized.

Pro forma Results of Operations

The closing date of the Svendborg Acquisition was December 17, 2013, and the closing date of the Guardian Acquisition was July 1, 2014. The Company's consolidated financial statements reflect the results of the operations of the acquired entities for the periods commencing after the acquisition dates.

The following table sets forth the unaudited pro forma results of operations of the Company for the quarter and year to date periods ended September 28, 2013 and the year to date period ended September 30, 2014, as if the Company had acquired Svendborg and Guardian on January 1, 2013. The pro forma information contains the actual operating results of the Company, including Svendborg and Guardian, adjusted to include the pro forma impact of (i) additional depreciation expense as a result of estimated depreciation based on the fair value of fixed assets and; (ii) additional expense as a result of the estimated amortization of identifiable intangible assets; (iii) additional interest expense for borrowings under the Credit Agreement associated with the Svendborg and Guardian Acquisitions. These pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the period or that may be obtained in the future.

	Pro Forma (unaudited)			Pro Forma (unaudited)
	Quarter Ended			Year to Date Period Ended
		September 28, 2013		September 30, 2014		September 28, 2013
Total revenues		$	201,405	$	633,762	$	615,885
Net income attributable to Altra Industrial Motion Corp.		$	12,777	$	31,852	$	39,799
Basic earnings per share:
Net income attributable to Altra Industrial Motion Corp.		$	0.48	$	1.19	$	1.49
Diluted earnings per share:
Net income attributable to Altra Industrial Motion Corp.		$	0.48	$	1.16	$	1.48

7. Inventories

Inventories are generally stated at the lower of cost or market, using the first-in, first-out (“FIFO”) method. Market is defined as net realizable value. Inventories located at certain subsidiaries are stated at the lower of cost or market, principally using the last-in, first-out (“LIFO”) method. Inventories at September 30, 2014 and December 31, 2013 consisted of the following:

13

	September 30, 2014		December 31, 2013
Raw materials	$	40,545	$	56,824
Work in process	16,352		18,432
Finished goods	78,486		68,409
	$	135,383	$	143,665

Approximately 6.7% and 7.5% of total inventories were valued using the LIFO method as of September 30, 2014 and December 31, 2013, respectively. The Company recorded a $0.3 million adjustment as a component of cost of sales to value the inventory on a LIFO basis for the year to date period ended September 30, 2014. There was no provision recorded as a component of cost of sales to value the inventory on a LIFO basis for the quarter and year to date periods ended September 28, 2013.

14

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

8. Goodwill and Intangible Assets

Changes to goodwill from January 1, through September 30, 2014 were as follows:

	2014
Gross goodwill balance as of January 1	$	136,149
Impact of changes in foreign currency	(3,048		)
Adjustment related to the impact of Guardian (See Note 6)	2,085
Measurement period adjustments related to acquisition of Svendborg (See Note 6)	1,277
Gross goodwill balance as of September 30,	136,463
Accumulated impairment as of January 1	(31,810		)
Impairment charge during the period	—
Accumulated impairment as of September 30,	(31,810		)
Net goodwill balance September 30,	$	104,653

Other intangible assets as of September 30, 2014 and December 31, 2013 consisted of the following:

	September 30, 2014					December 31, 2013
	Cost			Accumulated Amortization		Cost			Accumulated Amortization
Other intangible assets
Intangible assets not subject to amortization:
Tradenames and trademarks	$	43,635		$	—	$	42,985		$	—
Intangible assets subject to amortization:
Customer relationships	126,364			49,400		118,914			42,645
Product technology and patents	6,062			5,848		6,062			5,719
Impact of changes in foreign currency	(5,283		)	—		(829		)	—
Total intangible assets	$	170,778		$	55,248	$	167,132		$	48,364

The Company recorded $2.3 million and $1.7 million of amortization expense in the quarters ended September 30, 2014 and September 28, 2013, respectively, and recorded $6.9 million and $4.9 million of amortization in the year to date periods ended September 30, 2014 and September 28, 2013, respectively.

The estimated amortization expense for intangible assets is approximately $2.4 million for the remainder of 2014, $9.3 million in each of the next four years and then $32.3 million thereafter.

9. Warranty Costs

The contractual warranty period generally ranges from 3 months to 2 years with certain warranties extending for longer periods based on the product and application of the product and are recorded in accruals and other current liabilities on the Company's balance sheet. Changes in the carrying amount of accrued product warranty costs for each of the year to date periods ended September 30, 2014 and September 28, 2013 are as follows:

	September 30, 2014			September 28, 2013
Balance at beginning of period	$	8,739		$	5,625
Accrued current period warranty expense	1,314			1,758
Payments	(1,900		)	(1,743		)
Balance at end of period	$	8,153		$	5,640

10. Income Taxes

15

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

The estimated effective income tax rates recorded for the year to date periods ended September 30, 2014 and September 28, 2013, were based upon management’s best estimate of the effective tax rate for the entire year.

The Company and its subsidiaries file a consolidated federal income tax return in the United States as well as consolidated and separate income tax returns in various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in all of these jurisdictions. With the exception of certain foreign jurisdictions, the Company is no longer subject to income tax examinations for the tax years prior to 2010.

Additionally, the Company has indemnification agreements with the sellers of the Guardian, Svendborg, Bauer and Lamiflex entities that generally provide for reimbursement to the Company for payments made in satisfaction of tax liabilities relating to pre-acquisition periods.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense in the condensed consolidated statements of operations. At September 30, 2014 and December 31, 2013, the Company had $0.2 million and $0.4 million of accrued interest and penalties, respectively.

11. Pension and Other Employee Benefits

Defined Benefit (Pension)

The Company sponsors various defined benefit (pension) plans for certain, primarily unionized, active employees (those in the employment of the Company at, and certain employees hired since, November 30, 2004).

The following tables represent the reconciliation of the net periodic benefit cost of the defined benefit (pension) plans as of September 30, 2014 and September 28, 2013:

	Quarter Ended
	Pension Benefits
	September 30, 2014			September 28, 2013
Service cost	$	38		$	37
Interest cost	273			246
Expected return on plan assets	(269		)	(267		)
Amortization of net gain	27			41
Net periodic benefit cost (income)	$	69		$	57

	Year to Date Ended
	Pension Benefits
	September 30, 2014			September 28, 2013
Service cost	$	114		$	113
Interest cost	819			738
Expected return on plan assets	(807		)	(801		)
Amortization of net gain	81			125
Net periodic benefit cost (income)	$	207		$	175

The Company made $0.2 million in contributions during the year to date period ended September 30, 2014. The Company does not have any future required contributions during the remainder of the year ended December 31, 2014.

Partial Pension Settlement

16

During October 2014, the Company initiated a plan to offer lump-sum settlements to vested terminated participants of its domestic pension plan.  Participants were notified of the settlement offers during October 2014.  The acceptance of these offers will trigger partial settlement accounting with a maximum charge to earnings of approximately $0.8 million.  The funds to provide for these settlements will be paid from plan assets.

12. Debt

Outstanding debt obligations at September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014			December 31, 2013
Debt:
Revolving Credit Facility	$	37,000		$	41,198
Convertible Notes	85,000			85,000
Term Loan Facility	137,528			163,245
Equipment Loan	5,334			4,155
Mortgages	340			659
Capital leases	—			178
Other	28			—
Total debt	265,230			294,435
Less: debt discount, net of accretion	(13,636		)	(16,163		)
Total debt, net of unaccreted discount	$	251,594		$	278,272
Less current portion of long-term debt	14,532			16,924
Total long-term debt, net of unaccreted discount	$	237,062		$	261,348

Credit Agreement

In December 2013, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement amends and restates the Company’s former credit agreement, dated November 20, 2012 (the “Former Credit Agreement”). Pursuant to the Former Credit Agreement, the former lenders made available to the Company an initial term loan facility of $100,000,000 and an initial revolving credit facility of $200,000,000.

Pursuant to the Credit Agreement, the lenders made an additional term loan of €50,000,000 (the “Additional Term Loan”) to Altra Industrial Motion Netherlands B.V. The Credit Agreement kept in effect the balance (approximately $94,375,000,000) of the existing term loan facility (the “Initial Term Loan”) made to the domestic borrowers under the Former Credit Agreement (collectively, the two term loans are referred to as the “Term Loan Facility”), as well as the revolving credit facility of $200,000,000 made under the Former Credit Agreement (the “Revolving Credit Facility”). The Credit Agreement continues, even after the making of the Additional Term Loan, to provide for a possible expansion of the credit facilities by an additional $150,000,000, which can be allocated as additional term loans and/or additional revolving credit loans. The amounts available under the Term Loan Facility were used, and amounts available under the Revolving Credit Facility can be used, for general corporate purposes, including acquisitions, and to repay existing indebtedness. The stated maturity of these credit facilities is December 6, 2018, and there are scheduled quarterly principal payments due on the outstanding amount of the Term Loan Facility. With respect to the Initial Term Loan, the scheduled quarterly principal payments due on the outstanding amount have been reset to amortize in accordance with the new December 6, 2018 maturity date. The previous maturity of the Revolving Credit Facility and the Initial Term Loan was November 20, 2017.

17

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

The amounts available under the Revolving Credit Facility may be drawn upon in accordance with the terms of the Credit Agreement. All amounts outstanding under the credit facilities are due on the stated maturity or such earlier time, if any, required under the Credit Agreement. The amounts owed under either of the credit facilities may be prepaid at any time, subject to usual notification and breakage payment provisions. Interest on the amounts outstanding under the credit facilities is calculated using either an ABR Rate or Eurodollar Rate, plus the applicable margin. The applicable margins for Eurodollar Loans are between 1.375% to 1.875%, and for ABR Loans are between 0.375% and 0.875%. The amounts of the margins are calculated based on either a consolidated total net leverage ratio (as defined in the Credit Agreement), or the then applicable credit rating(s) of the Company’s debt if and then to the extent as provided in the Credit Agreement. A portion of the Revolving Credit Facility may also be used for the issuance of letters of credit, and a portion of the amount of the Revolving Credit Facility is available for borrowings in certain agreed upon foreign currencies.

As of September 30, 2014 and December 31, 2013, we had $37.0 million and $41.2 million outstanding on our Revolving Credit Facility, respectively. As of September 30, 2014 and December 31, 2013, we had $10.1 million and $9.8 million in letters of credit outstanding, respectively. We had $152.9 million and $149.0 million available under the Revolving Credit Facility at September 30, 2014 and December 31, 2013, respectively.

The Credit Agreement contains various affirmative and negative covenants and restrictions, which among other things, will require the Company and certain of its subsidiaries to provide certain financial reports to the Lenders, require the Company to maintain certain financial covenants relating to consolidated leverage and interest coverage, limit maximum annual capital expenditures, and limit the ability of the Company and its subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other equity distributions, purchase or redeem capital stock or debt stock or debt, make certain investments, sell assets, engage in certain transactions, and effect a consolidation or merger. The Credit Agreement also contains customary events of default.

Pledge and Security Agreement; Trademark Security Agreement; Patent Security Agreement.

Pursuant to an Omnibus Reaffirmation and Ratification of Collateral Documents entered into on December 6, 2013 in connection with the Credit Agreement by and among the Company, the Loan Parties and the Administrative Agent (the “Ratification Agreement”), the Loan Parties (exclusive of the foreign subsidiary Borrower) have reaffirmed their obligations to the Lenders under the Pledge and Security Agreement. The Credit Agreement provides that the obligation to grant the security interest can cease upon the obtaining of certain corporate family credit ratings for the Company, but the obligation to grant a security interest is subject to subsequent reinstatement if the ratings are not maintained as provided in the Credit Agreement.

Pursuant to the Ratification Agreement, the Loan Parties (other than the foregoing subsidiary Borrower) have also reaffirmed their obligations under each of the Patent Security Agreement and a Trademark Security Agreement.

The Loan Parties and the Administrative Agent entered into a Pledge and Security Agreement (the “Pledge and Security Agreement”), pursuant to which each Loan Party pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Lenders, a security interest in all of its right, title and interest in, to and under all personal property, whether now owned by or owing to, or after acquired by or arising in favor of such Loan Party (including under any trade name or derivations), and whether owned or consigned by or to, or leased from or to, such Loan Party, and regardless of where located, except for specific excluded personal property identified in the Pledge and Security Agreement (collectively, the “Collateral”). Notwithstanding the foregoing, the Collateral does not include, among other items, more than 65% of the capital stock of the first tier foreign subsidiaries of the Company. The Pledge and Security Agreement contains other customary representations, warranties and covenants of the parties. The Credit Agreement provides that the obligation to grant the security interest can cease upon the obtaining of certain corporate family ratings for the Company, but the obligation to grant a security interest is subject to subsequent reinstatement if the ratings are not maintained as provided in the Credit Agreement.

In connection with the Pledge and Security Agreement, certain of the Loan Parties delivered a Patent Security Agreement and a Trademark Security Agreement in favor of the Administrative Agent pursuant to which each of the Loan Parties signatory thereto pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Lenders, a security interest in all of its right, title and interest in, to and under all registered patents, patent applications, registered trademarks and trademark applications owned by such Loan Parties.

18

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

Convertible Senior Notes

In March 2011, the Company issued Convertible Senior Notes (the “Convertible Notes”) due March 1, 2031. The Convertible Notes are guaranteed by the Company’s U.S. domestic subsidiaries. Interest on the Convertible Notes is payable semi-annually in arrears, on March 1 and September 1 of each year, commencing on September 1, 2011 at an annual rate of 2.75%. Proceeds from the offering were $81.3 million, net of fees and expenses that were capitalized. The proceeds from the offering were used to fund the Bauer Acquisition, as well as bolster the Company’s cash position.

The Convertible Notes will mature on March 1, 2031, unless earlier redeemed, repurchased by the Company or converted, and are convertible into cash or shares, or a combination thereof, at the Company’s election. The Convertible Notes are convertible into shares of the Company’s common stock based on an initial conversion rate, subject to adjustment, of 36.0985 shares per $1,000 principal amount of notes (which represents an initial conversion price of approximately $27.70 per share of our common stock), in certain circumstances. The conversion price at September 30, 2014 is $26.82 per share. Prior to March 1, 2030, the Convertible Notes are convertible only in the following circumstances: (1) during any fiscal quarter commencing after June 30, 2011 if the last reported sale price of the Company’s common stock is greater than or equal to 130% of the applicable conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter; (2) during the 5 business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day in the measurement period was less than 97% of the product of the last reported sale price of the Company’s common stock and the conversion rate on such trading day; (3) if the Convertible Notes have been called for redemption; or (4) upon the occurrence of specified corporate transactions.

On or after March 1, 2030, and ending at the close of business on the second business day immediately preceding the maturity date, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of common stock, or a combination thereof, at the Company’s election. The Company intends to settle the principal amount in cash and any additional amounts in shares of stock.

If a fundamental change occurs, the Convertible Notes are redeemable at a price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest (including contingent interest and additional interest, if any) to, but excluding, the repurchase date. The Convertible Notes are also redeemable on each of March 1, 2018, March 1, 2021, and March 1, 2026 for cash at a price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest (including contingent interest and additional interest, if any) to, but excluding, the option repurchase date.

On or after March 1, 2015, the Company may call all or part of the Convertible Notes at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, plus a “make-whole premium” payment in cash, shares of the Company’s common stock, or combination thereof, at the Company’s option, equal to the sum of the present values of the remaining scheduled payments of interest on the Convertible Notes to be redeemed through March 1, 2018 to, but excluding, the redemption date, if the last reported sale price of the Company’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day prior to the date the Company provides notice of redemption exceeds 130% of the conversion price in effect on each such trading day. On or after March 1, 2018, the Company may redeem for cash all or a portion of the notes at a redemption price of 100% of the principle amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest (including contingent and additional interest, if any) to, but not including, the redemption date.

The Company separately accounted for the debt and equity components of the Convertible Notes to reflect the issuer’s non-convertible debt borrowing rate, which interest costs are to be recognized in subsequent periods. The note payable principal balance at the date of issuance of $85.0 million was bifurcated into a debt component of $60.5 million and an equity component of $24.5 million. The difference between the note payable principal balance and the value of the debt component is being accreted to interest expense over the term of the notes. The debt component was recognized at the present value of associated cash flows discounted using a 8.25% discount rate, the borrowing rate at the date of issuance for a similar debt instrument without a conversion feature. The Company paid approximately $3.7 million of issuance costs associated with the Convertible Notes. The Company recorded $1.0 million of debt issuance costs as an offset to additional paid-in capital. The balance of $2.7 million of debt issuance costs is classified as other non-current assets and will be amortized over the term of the notes using the effective interest method.

19

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

The Company reviews the last recorded sale price of the Company's stock price each quarter to determine whether the sales price exceeded 130% of the conversion price, for at least 20 of the last 30 consecutive trading days. During the quarter ended June 30, 2014, the last reported sales price exceeded 130% of the conversion price, for at least 20 of the last 30 consecutive trading days of the quarter and the Convertible Notes became convertible at the election of the holders of the Convertible Notes at any time during the fiscal quarter ending September 30, 2014.

Because the last reported sale price of the Company's common stock did not exceeded 130% of the current conversion price, which was $26.82 for at least 20 of the last 30 consecutive trading days in the fiscal quarter ended September 30, 2014, the Convertible Notes are not convertible at the election of the holders of the Convertible Notes at any time during the fiscal quarter ending December 31, 2014. The future convertibility will be monitored at each quarterly reporting date and will be analyzed dependent upon market prices of the Company's common stock during the prescribed measurement periods.

The carrying amount of the principal amount of the liability component, the unamortized discount, and the net carrying amount are as follows as of September 30, 2014:

Principal amount of debt	$	85,000
Unamortized discount	13,636
Carrying value of debt	$	71,364

Interest expense associated with the Convertible Notes consists of the following:

	Quarter to Date Ended
	September 30, 2014		September 28, 2013
Contractual coupon rate of interest	$	584	$	584
Accretion of Convertible Notes discount and amortization of deferred financing costs	681		879
Interest expense for the convertible notes	$	1,265	$	1,463

	Year to Date Ended
	September 30, 2014		September 28, 2013
Contractual coupon rate of interest	$	1,753	$	1,753
Accretion of Convertible Notes discount and amortization of deferred financing costs	2,527		2,594
Interest expense for the convertible notes	$	4,280	$	4,347

The effective interest yield of the Convertible Notes due in 2031 is 8.5% at September 30, 2014 and the cash coupon interest rate is 2.75%.

Equipment and Working Capital Notes

The Company entered into a loan with a bank to equip its new facility in Changzhou, China during 2013. The Company is allowed to borrow up to 90% of the amount of certain outstanding letters of credit issued by the Company’s U.S. bank in favor of the lending bank in China. As of September 30, 2014, the total available to borrow was 38.7 million RMB ($6.3 million). The note is due in installments from 2014 through 2016, with interest varying between 5.04% and 8.02%. The Company has a 32.8 million RMB ($5.3 million) line of credit outstanding at September 30, 2014. The note is callable by the bank at its discretion and as such, has been included in the current portion of long-term debt in the balance sheet at September 30, 2014.

20

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

Mortgages

The Company has a mortgage with a bank on its facility in Heidelberg, Germany with an interest rate of 2.9% which is payable in monthly installments until September 2015. As of September 30, 2014 and December 31, 2013, the mortgage had a remaining principal balance of €0.2 million or $0.3 million, and €0.5 million or $0.7 million, respectively.

The Company entered an agreement with a bank for €6.0 million or $7.9 million for the construction of its new facility in Esslingen, Germany during August 2014 with an interest rate of 2.5% per year which is payable in annual interest payments of €0.2 million or $0.3 million to be paid in monthly installments. The Company expects to receive the proceeds of this loan during the quarter ended December 31, 2014. The principal portion of the mortgage will be due in a lump-sum payment in May 2019.

Capital Leases

The Company leases certain equipment under capital lease arrangements, whose obligations are included in both short-term and long-term debt. Capital lease obligations amounted to approximately $0.2 million at December 31, 2013. There were no capital lease obligations outstanding at September 30, 2014. Assets subject to capital leases are included in property, plant and equipment with the related amortization recorded as depreciation expense.

Overdraft Agreements

Certain of our foreign subsidiaries maintain overdraft agreements with financial institutions. There were no borrowings as of September 30, 2014 or December 31, 2013 under any of the overdraft agreements.

13. Stockholders’ Equity

On July 23, 2014, the Company declared a dividend of $0.12 per share of common stock related to the quarter ended September 30, 2014. This dividend of $3.2 million was paid on October 2, 2014 to shareholders of record as of the close of business on September 18, 2014 and was accrued for in the balance sheet at September 30, 2014.

Future declarations of quarterly cash dividends are subject to approval by the Board of Directors and to the Board’s continuing determination that the declaration of dividends are in the best interest of the Company’s stockholders and are in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends.

In May 2014, our board of directors approved a new share repurchase program authorizing the buyback of up to $50.0 million of the Company's common stock. The Company expects to purchase shares on the open market, through block trades, in privately negotiated transactions, in compliance with SEC Rule 10b-18 (including through Rule 10b5-1 plans), or in any other appropriate manner. The timing of the shares repurchased will be at the discretion of management and will depend on a number of factors, including price, market conditions and regulatory requirements. Shares acquired through the repurchase program will be retired. The Company retains the right to limit, terminate or extend the share repurchase program at any time without prior notice.

For the three month period ended September 30, 2014, the Company repurchased 300,984 shares of common stock at an average purchase price of $32.91 per share.    As of September 30, 2014, up to $37.2 million was available for repurchase under the repurchase program, which expires on December 31, 2016. The Company expects to fund any further repurchases of its common stock through a combination of cash on hand, cash generated by operations.

Stock-Based Compensation

The Company’s Board of Directors established the 2004 Equity Incentive Plan (as amended, the “Plan”) that provides for various forms of stock-based compensation to independent directors, officers and senior-level employees of the Company. The restricted shares issued pursuant to the Plan generally vest ratably over a period ranging from immediately to 5 years from the date of grant, provided, that the vesting of the restricted shares may accelerate upon the occurrence of certain liquidity events, if approved by the Board of Directors in connection with the transactions. Common stock awarded under the

21

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

Plan is generally subject to restrictions on transfer, repurchase rights, and other limitations and rights as set forth in the applicable award agreements. The shares are valued based on the share price on the date of grant.

The Plan permits the Company to grant, among other things, restricted stock, restricted stock units, and performance share awards to key employees and other persons who make significant contributions to the success of the Company. The restrictions and vesting schedule for restricted stock granted under the Plan are determined by the Personnel and Compensation Committee of the Board of Directors.

Stock-based compensation expense recorded (in selling, general and administrative expense) in the year to date periods ended September 30, 2014 and September 28, 2013, was $2.6 million and $2.4 million, respectively. Stock-based compensation expense recorded during the quarters ended September 30, 2014 and September 28, 2013, was $0.8 million and $0.9 million, respectively. The Company recognizes stock-based compensation expense on a straight-line basis for the shares vesting ratably under the plan and uses the graded-vesting method of recognizing stock-based compensation expense for the performance share awards based on the probability of the specific performance metrics being achieved over the requisite service period.

The following table sets forth the activity of the Company’s restricted stock and performance share grants in the year to date period ended September 30, 2014:

	Shares		Weighted-average grant date fair value
Shares unvested January 1, 2014	149,635		$	23.02
Shares granted	132,441		33.56
Shares for which restrictions lapsed	(122,898	)	29.50
Shares unvested September 30, 2014	159,178		$	28.53

Total remaining unrecognized compensation cost was $4.2 million as of September 30, 2014, which will be recognized over a weighted average remaining period of 3 years. The fair market value of the shares for which the restrictions have lapsed during the quarter ended September 30, 2014 was $0.6 million. Restricted shares granted are valued based on the fair market value of the stock on the date of grant.

14. Derivative Financial Instruments

Interest Rate Swap

In April 2013, the Company entered into an interest rate swap agreement designed to fix the variable interest rate payable on a portion of its outstanding borrowings, currently $85.0 million, under the Credit Agreement, at 0.626% exclusive of the margin under the Former Credit Agreement. The interest rate swap agreement and its terms are also applicable to the variable interest rate borrowings under the current Credit Agreement.

The interest rate swap agreement was designed to manage exposure to interest rates on the Company’s variable rate indebtedness. The Company recognizes all derivatives on its balance sheet at fair value. The Company has designated its interest rate swap agreement, which is forward-dated, as a cash flow hedge. Changes in the fair value of the swap are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swap will be reported by the Company in interest expense. There was no ineffectiveness associated with the swap during the quarter ended September 30, 2014, nor was any amount excluded from ineffectiveness testing for the period.

The estimated fair value of the Company’s interest rate swap agreement with certain financial institutions (“Interest Rate Swap”) was based on inputs other than quoted prices that are observable for the Interest Rate Swap (level 2). Inputs include present value of fixed and projected floating rate cash flows over the term of the swap contract.

The fair value of the swap recognized in other non-current assets, net and in other comprehensive income (loss) is as follows:

22

ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

						Fair Value
	Notional					September 30, 2014		December 31, 2013
Effective Date	Amount		Fixed Rate		Maturity
April 30, 2013	$	85,000	0.626	%	November 30, 2016	$	243	$	213

15. Concentrations of Credit, Segment Data and Workforce

Financial instruments, which are potentially subject to counter party performance and concentrations of credit risk, consist primarily of trade accounts receivable. The Company manages these risks by conducting credit evaluations of customers prior to delivery or commencement of services. When the Company enters into a sales contract, collateral is normally not required from the customer. Payments are typically due within 30 days of billing. An allowance for potential credit losses is maintained, and losses have historically been within management’s expectations. No customer represented greater than 10% of total sales for each of the year to date periods ended September 30, 2014 and September 28, 2013.

The Company is also subject to counter party performance risk of loss in the event of non-performance by counterparties to financial instruments, such as cash and investments. Cash and cash equivalents are held by well-established financial institutions and invested in AAA rated mutual funds. The Company is exposed to swap counterparty credit risk with financial institutions. The Company’s counterparty is a well-established financial institution.

The Company has three operating segments that are regularly reviewed by our chief operating decision maker. Each of these operating segments represents a unit that produces mechanical power transmission products. The Company aggregates all of the operating segments into one reportable segment. The three operating segments are expected to have similar long-term average gross profit margins. All of our products are sold by one global sales force and we have one global marketing function with the exception of the newly acquired Svendborg business for which the Company is in the process of integrating sales and marketing activities. Strategic markets and industries are determined for the entire company and then targeted by the brands. All of our operating segments have common manufacturing and production processes. Each operating segment includes a machine shop which uses similar equipment and manufacturing techniques. Each of our operating segments uses common raw materials, such as aluminum, steel and copper. The materials are purchased and procurement contracts are negotiated by one global purchasing function.

The Company serves the general industrial market by selling to original equipment manufacturers (“OEM”) and distributors. Our OEM and distributor customers serve the general industrial market. Resource allocation decisions such as capital expenditure requirements and headcount requirements are made at a consolidated level and allocated to the individual operating segments.

Discrete financial information is not available by product line at the level necessary for management to assess performance or make resource allocation decisions.

Net sales to third parties by geographic region are as follows:

	Net Sales				Net Sales
	Quarter Ended				Year to Date Ended
	September 30, 2014		September 28, 2013		September 30, 2014		September 28, 2013
North America (primarily U.S.)	$	117,796	$	109,810	$	370,944	$	343,844
Europe	64,116		52,315		199,196		160,895
Asia and other	20,608		13,318		57,716		36,949
Total	$	202,520	$	175,443	$	627,856	$	541,688

Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates.

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ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

The net assets of the Company’s foreign subsidiaries at September 30, 2014 and December 31, 2013 were $143.2 million and $138.7 million, respectively.

16. Restructuring

In the quarter ended December 31, 2012, the Company adopted a restructuring plan (“2012 Altra Plan”) as a result of continued sluggish demand in Europe and general global economic conditions. The actions taken pursuant to the 2012 Altra Plan included reducing headcount and limiting discretionary spending to improve profitability in Europe. The Company did not record any restructuring charges associated with the 2012 Altra Plan in the year to date period ended September 30, 2014.

In the quarter ended September 30, 2014, the Company adopted a restructuring plan (“2014 Altra Plan”) as a result of weak demand in Europe and to make certain adjustments to its existing sales force to reflect the Company's expanding global footprint. The actions taken pursuant to the 2014 Altra Plan included reducing headcount and limiting discretionary spending to improve profitability.

The Company’s total restructuring expense, by major component for the quarter and year to date periods ended September 30, 2014 and September 28, 2013 was as follows:

	Quarter Ended					Year to Date Ended
	September 30, 2014		September 28, 2013			September 30, 2014		September 28, 2013
	2014 Altra Plan		2012 Altra Plan			2014 Altra Plan		2012 Altra Plan
Severance	$	1,161	$	137		$	1,161	$	653
Other	482		(40		)	482		2
Total cash expenses	$	1,643	$	97		$	1,643	$	655

The following is a reconciliation of the accrued restructuring cost:

	All Plans
Balance at January 1, 2014	$	429
Restructuring expense incurred	1,643
Cash payments	(933		)
Balance at September 30, 2014	$	1,139

The total restructuring reserve as of September 30, 2014 relates to severance costs to be paid to employees and is recorded in accruals and other current liabilities on the accompanying condensed consolidated balance sheet.

17. Commitments and Contingencies

General Litigation

The Company is involved in various pending legal proceedings arising out of the ordinary course of business. These proceedings primarily involve commercial claims, product liability claims, personal injury claims, and workers’ compensation claims. None of these legal proceedings are expected to have a material adverse effect on the results of operations, cash flows, or financial condition of the Company. With respect to these proceedings, management believes that the Company will prevail, has adequate insurance coverage or has established appropriate reserves to cover potential liabilities. Any costs that management estimates may be paid related to these proceedings or claims are accrued when the liability is considered probable and the amount can be reasonably estimated. There can be no assurance, however, as to the ultimate outcome of any of these matters, and if all or substantially all of these legal proceedings were to be determined adversely to the Company, there could be a material adverse effect on the results of operations, cash flows, or financial condition of the Company. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. There were no material amounts accrued in the accompanying condensed consolidated balance sheets for potential litigation as of September 30, 2014 or December 31, 2013. For matters where a reserve has not been established and for which we believe a

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ALTRA INDUSTRIAL MOTION CORP.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

Amounts in thousands, unless otherwise noted

loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses, individually and in the aggregate, will not have a material effect on our consolidated financial statements.

The Company also risks exposure to product liability claims in connection with products it has sold and those sold by businesses that the Company acquired. Although in some cases third parties have retained responsibility for product liability claims relating to products manufactured or sold prior to the acquisition of the relevant business and in other cases the persons from whom the Company has acquired a business may be required to indemnify the Company for certain product liability claims subject to certain caps or limitations on indemnification, the Company cannot assure that those third parties will in fact satisfy their obligations with respect to liabilities retained by them or their indemnification obligations. If those third parties become unable to or otherwise do not comply with their respective obligations including indemnity obligations, or if certain product liability claims for which the Company is obligated were not retained by third parties or are not subject to these indemnities, the Company could become subject to significant liabilities or other adverse consequences. Moreover, even in cases where third parties retain responsibility for product liability claims or are required to indemnify the Company, significant claims arising from products that have been acquired could have a material adverse effect on the Company’s ability to realize the benefits from an acquisition, could result in the reduction of the value of goodwill that the Company recorded in connection with an acquisition, or could otherwise have a material adverse effect on the Company’s business, financial condition, or operations.

18. Subsequent Events

The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

On October 22, 2014, the Company declared a cash dividend of $0.12 per share for the quarter ended December 31, 2014, payable on January 2, 2015 to shareholders of record as of December 18, 2014.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company’s current estimates, expectations and projections about the Company’s future results, performance, prospects and opportunities. Forward-looking statements include, among other things, the information concerning the Company’s possible future results of operations including revenue, costs of goods sold, gross margin, future profitability, future economic improvement, business and growth strategies, financing plans, the Company’s competitive position and the effects of competition, the projected growth of the industries in which we operate, and the Company’s ability to consummate strategic acquisitions and other transactions. Forward-looking statements include statements that are not historical facts and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “plan,” “may,” “should,” “will,” “would,” “project,” and similar expressions. These forward-looking statements are based upon information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Important factors that could cause the Company’s actual results to differ materially from the results referred to in the forward-looking statements the Company makes in this report include:

• the effects of intense competition in the markets in which we operate;

• the cyclical nature of the markets in which we operate;

• changes in market conditions in which we operate that would influence the value of the Company’s stock;

• the Company’s ability to achieve its business plans, including with respect to an uncertain economic environment;

• the risks associated with international operations, including currency risks;

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• the Company’s ability to retain existing customers and our ability to attract new customers for growth of our business;

• the effects of the loss or bankruptcy of or default by any significant customer, suppliers, or other entity relevant to the Company’s operations;

• the Company’s ability to complete cost reduction actions and risks associated with such actions;

• the Company’s ability to control costs;

• political and economic conditions nationally, regionally, and in the markets in which we operate;

• natural disasters, war, civil unrest, terrorism, fire, floods, tornadoes, earthquakes, hurricanes, or other matters beyond the Company’s control;

• the Company’s risk of loss not covered by insurance;

• the accuracy of estimated forecasts of OEM customers and the impact of the current global and European economic environment on our customers;

• the risks association with certain minimum purchase agreements we have with suppliers;

• fluctuations in the costs of raw materials used in our products;

• the outcome of litigation to which the Company is a party from time to time, including product liability claims;

• work stoppages and other labor issues;

• changes in employment, environmental, tax and other laws and changes in the enforcement of laws;

• the Company’s ability to attract and retain key executives and other personnel;

• changes in the Company’s pension and retirement liabilities;

• the Company’s ability to successfully pursue the Company’s development activities and successfully integrate new operations and systems, including the realization of revenues, economies of scale, cost savings, and productivity gains associated with such operations;

• the Company’s ability to obtain or protect intellectual property rights;

• the risks associated with the portion of the Company’s total assets comprised of goodwill and indefinite lived intangibles;

• changes in market conditions that would result in the impairment of goodwill or other assets of the Company;

• changes in accounting rules and standards, audits, compliance with the Sarbanes-Oxley Act, and regulatory investigations;

• the effects of unanticipated deficiencies, if any, in the disclosure controls and internal controls of Svendborg;

• the effects of changes to critical accounting estimates; changes in volatility of the Company’s stock price and the risk of litigation following a decline in the price of the Company’s stock;

• failure of the Company’s operating equipment or information technology infrastructure;

• the Company’s ability to implement our new ERP system;

• the Company’s access to capital, credit ratings, indebtedness, and ability to raise additional capital and operate under the terms of the Company’s debt obligations;

• the risks associated with our debt;

• the risks associated with the Company’s exposure to variable interest rates and foreign currency exchange rates;

• the risks associated with interest rate swap contracts;

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• the risks associated with the potential dilution of our common stock as a result of our convertible bonds;

• the risks associated with the Company’s exposure to renewable energy markets;

• the risks related to regulations regarding conflict minerals;

• the risks associated with the global recession and European economic downturn and volatility and disruption in the global financial markets;

• the Company’s ability to successfully execute, manage and integrate key acquisitions and mergers, including the Lamiflex Acquisition, Svendborg Acquisition and the Guardian Acquisition;

• the risks associated with the Company’s investment in a new manufacturing facility in China; and

• other factors, risks, and uncertainties referenced in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” set forth in this document

ALL FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS REPORT. EXCEPT AS REQUIRED BY LAW, WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE OR RELEASE ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO REFLECT ANY EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS REPORT OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS. ALL SUBSEQUENT WRITTEN AND ORAL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO US OR ANY PERSON ACTING ON THE COMPANY’S BEHALF ARE EXPRESSLY QUALIFIED IN THEIR ENTIRETY BY THE CAUTIONARY STATEMENTS CONTAINED OR REFERRED TO IN THIS SECTION AND IN OUR RISK FACTORS SET FORTH IN PART I, ITEM 1A OF THE COMPANY’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2013, AND IN OTHER REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BY THE COMPANY.

The following discussion of the financial condition and results of operations of Altra Industrial Motion Corp. and its subsidiaries should be read together with the audited financial statements of Altra Industrial Motion Corp. and its subsidiaries and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Unless the context requires otherwise, the terms “Altra Industrial Motion Corp.,” “the Company,” “we,” “us,” and “our” refer to Altra Industrial Motion Corp. and its subsidiaries.

General

Altra Industrial Motion Corp. (“Altra” or the “Company”) (formerly Altra Holdings, Inc.) is the parent company of Altra Power Transmission, Inc. (“APT”) (formerly Altra Industrial Motion, Inc.) and owns 100% of APT’s outstanding capital stock. APT, directly or indirectly, owns 100% of the capital stock of 67 of its subsidiaries and 85% of the

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capital stock of one of its subsidiaries located in Brazil. The following chart illustrates a summary of our corporate structure:

Although we were incorporated in Delaware in 2004, much of our current business has its roots with the prior acquisition by Colfax Corporation, or Colfax, of the MPT (mechanical power transmission) group of Zurn Technologies, Inc. in December 1996. Colfax subsequently acquired Industrial Clutch Corp. in May 1997, Nuttall Gear Corp. in July 1997 and the Boston Gear and Delroyd Worm Gear brands in August 1997 as part of Colfax’s acquisition of Imo Industries, Inc. In February 2000, Colfax acquired Warner Electric, Inc., which sold products under the Warner Electric, Formsprag Clutch, Stieber, and Wichita Clutch brands. Colfax formed Power Transmission Holding, LLC or “PTH” in June 2004 to serve as a holding company for all of these power transmission businesses. On November 30, 2004, we acquired our original core business through the acquisition of PTH from Colfax. We refer to this transaction as the PTH Acquisition.

On October 22, 2004, The Kilian Company, or Kilian, a company formed at the direction of Genstar Capital, then the largest stockholder of Altra, acquired Kilian Manufacturing Corporation from Timken U.S. Corporation. At the completion of the PTH Acquisition, (i) all of the outstanding shares of Kilian capital stock were exchanged for shares of our capital stock and (ii) Kilian and its subsidiaries were transferred to APT.

On February 10, 2006, we purchased all of the outstanding share capital of Hay Hall Holdings Limited, or Hay Hall. Hay Hall was a UK-based holding company established in 1996 that was focused primarily on the manufacture of couplings and clutch brakes. Hay Hall consisted of five main businesses that were niche focused and had strong brand names and established reputations within their primary markets. Through Hay Hall, we acquired 15 strong brands in complementary product lines, improved customer leverage and expanded geographic presence in over 11 countries.

On May 18, 2006, we acquired substantially all of the assets of Bear Linear Inc., now known as Warner Linear. Warner Linear manufactures high value-added linear actuators which are electromechanical power transmission devices designed to move and position loads linearly for mobile off-highway and industrial applications.

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On April 5, 2007, we acquired all of the outstanding shares of TB Wood’s Corporation, or TB Wood’s. TB Wood’s is an established designer, manufacturer and marketer of mechanical industrial power transmission products. In December 2007, the Company divested the TB Wood’s electronics division.

On October 5, 2007, we acquired substantially all of the assets of All Power Transmission Manufacturing, Inc., or All Power, a manufacturer of universal joints.

On May 29, 2011, we acquired substantially all of the assets and liabilities of Danfoss Bauer GmbH relating to its gear motor business, or Bauer. We refer to this transaction as the Bauer Acquisition. Bauer is a European manufacturer of high-quality gear motors, offering engineered solutions to a variety of industries, including material handling, metals, food processing, and energy.

On July 11, 2012, we acquired 85% of privately held Lamiflex do Brasil Equipamentos Industriais Ltda., now known as Lamiflex Do Brasil Equipamentos Industriais S.A., or Lamiflex. Lamiflex is one of the premier Brazilian manufacturers of high-speed disc couplings, providing engineered solutions to a variety of industries, including oil and gas, power generation, metals and mining.

On November 22, 2013, we changed our legal corporate name from Altra Holdings, Inc. to Altra Industrial Motion Corp.

On December 17, 2013, we completed the acquisition of Svendborg . We acquired all the issued and outstanding shares of Svendborg from Friction Holding A/S. Svendborg is the leading global manufacturer of premium quality caliper brakes.

On July 1, 2014, we acquired all of the issued and outstanding shares of Guardian Ind., Inc. (“Guardian Couplings”). Through the Guardian Acquisition, the Company acquired a manufacturer and supplier of flywheel, motion control and general industrial couplings. The Guardian Acquisition will provide the Company with increased coverage in several core markets, including energy, farm and agriculture, and specialty machinery.

We are a leading global designer, producer and marketer of a wide range of electromechanical power transmission products with a presence in over 70 countries. Our global sales and marketing network includes over 1,000 direct OEM customers and over 3,000 distributor outlets. Our product portfolio includes industrial clutches and brakes, enclosed gear drives, open gearing, couplings, engineered bearing assemblies, linear components, gear motors, and other related products. Our products serve a wide variety of end markets including energy, general industrial, material handling, mining, transportation and turf and garden. We primarily sell our products to a wide range of OEMs and through long-standing relationships with industrial distributors such as Motion Industries, Applied Industrial Technologies, Kaman Industrial Technologies and W.W. Grainger.

While the power transmission industry has undergone some consolidation, we estimate that in 2013 the top five broad-based electromechanical power transmission companies represented approximately 20% of the U.S. power transmission market. The remainder of the power transmission industry remains fragmented with many small and family-owned companies that cater to a specific market niche often due to their narrow product offerings. We believe that consolidation in our industry will continue because of the increasing demand for global distribution channels, broader product mixes and better brand recognition to compete in this industry.

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Our products, principal brands and markets and sample applications are set forth below:

Products	Principal Brands	Principal Markets	Sample Applications
Clutches and Brakes	Warner Electric, Wichita Clutch, Formsprag Clutch, Stieber Clutch, Svendborg Brakes, Matrix, Inertia Dynamics, Twiflex, Industrial Clutch, Marland Clutch	Aerospace, energy, material handling, metals, turf and garden, mining	Elevators, forklifts, lawn mowers, oil well draw works, punch presses, conveyors
Gearing	Boston Gear, Nuttall Gear, Delroyd, Bauer Gear Motor	Food processing, material handling, metals, transportation	Conveyors, ethanol mixers, packaging machinery, metal processing equipment
Engineered Couplings	Ameridrives, Bibby Transmissions, TB Wood’s, PowerFlex, Guardian Couplings	Energy, metals, plastics, chemical	Extruders, turbines, steel strip mills, pumps
Engineered Bearing Assemblies	Kilian	Aerospace, material handling, transportation	Cargo rollers, seat storage systems, conveyors
Power Transmission Components	Warner Electric, Boston Gear, Huco Dynatork, Warner Linear, Matrix, TB Wood’s	Material handling, metals, turf and garden	Conveyors, lawn mowers, machine tools
Engineered Belted Drives	TB Wood’s	Aggregate, HVAC, material handling	Pumps, sand and gravel conveyors, industrial fans

Our Internet address is www.altramotion.com. By following the link “Investor Relations” and then “SEC filings” on our Internet website, we make available, free of charge, our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as soon as reasonably practicable after such forms are filed with or furnished to the Securities and Exchange Commission. We are not including the information contained on or available through our website as a part of, or incorporating such information by reference into, this Form 10-Q.

Business Outlook

Our future financial performance depends, in large part, on conditions in the markets that we serve and on the U.S., European, and global economies in general.

Our various profit improvement initiatives remain on track. Given the deteriorating economic environment in Europe and prolonged higher medical claims costs, we expect operating results for the remainder of the year to be flat when compared to the comparable prior year period adjusted for the impact of the Svendborg and Guardian acquisitions.

Critical Accounting Policies

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The preparation of our condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make judgments, assumptions and estimates that affect our reported amounts of assets, revenues and expenses, as well as related disclosures of contingent assets and liabilities. We base our estimates on past experiences and other assumptions we believe to be appropriate, and we evaluate these estimates on an on-going basis. See the discussion of critical accounting policies in our Annual Report on Form 10-K for the year ended December 31, 2013. There have been no changes in the identification or application of the Company’s critical accounting policies during the quarter and year to date periods ended September 30, 2014.

Results of Operations

(Amounts in thousands, unless otherwise noted)

	Quarter Ended						Year to Date Ended
	September 30, 2014			September 28, 2013			September 30, 2014			September 28, 2013
Net sales	$	202,520		$	175,443		$	627,856		$	541,688
Cost of sales	140,187			121,785			437,257			378,112
Gross profit	62,333			53,658			190,599			163,576
Gross profit percentage	30.8		%	30.6		%	30.4		%	30.2		%
Selling, general and administrative expenses	39,067			31,672			117,828			96,742
Research and development expenses	3,818			3,002			11,719			9,150
Restructuring costs	1,643			97			1,643			655
Income from operations	17,805			18,887			59,409			57,029
Interest expense, net	3,000			2,567			8,991			7,830
Other non-operating expense, net	(313		)	686			446			783
Income before income taxes	15,118			15,634			49,972			48,416
Provision for income taxes	8,170			5,176			18,843			15,423
Net income	6,948			10,458			31,129			32,993
Net (income) loss attributable to non-controlling interest	(2		)	43			(21		)	77
Net income attributable to Altra Industrial Motion Corp.	$	6,946		$	10,501		$	31,108		$	33,070

Quarter Ended September 30, 2014 compared with Quarter Ended September 28, 2013

(Amounts in thousands, unless otherwise noted)

Amounts in thousands, except percentage data	Quarter-Ended
	September 30, 2014		September 28, 2013
					Change		%
Net sales	$	202,520	$	175,433	$	27,087	15.4	%

The increase in sales during the quarter ended September 30, 2014 was due to the acquisition of Svendborg and Guardian, positive foreign exchange rates, and slightly higher sales levels than in the quarter ended September 28, 2013. Of the increase in sales, approximately $21.3 million and $2.7 million relates to the inclusion of additional sales related to the acquisitions of Svendborg and Guardian, respectively, and $1.1 million relates to the impact of foreign exchange rate increases primarily attributed to the exchange rates for the British Pound compared to the prior year. The remainder of the increase was attributable to sales growth in the North American oil and gas markets. Based on current conditions in our end markets, we expect our order rates to remain stable throughout the remainder of 2014.

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Amounts in thousands, except percentage data	Quarter Ended
	September 30, 2014			September 28, 2013			Change		%
Gross Profit	$	62,333		$	53,658		$	8,675	16.2	%
Gross Profit as a percent of sales	30.8		%	30.6		%

Gross profit as a percentage of sales increased during the quarter due to the inclusion of Svendborg and Guardian for the quarter ended September 30, 2014 as both operations improved the Company's overall gross profit.

Amounts in thousands, except percentage data	Quarter Ended
	September 30, 2014			September 28, 2013			Change		%
Selling, general and administrative expense (“SG&A”)	$	39,067		$	31,672		$	7,395	23.3	%
SG&A as a percent of sales	19.3		%	18.0		%

$5.8 million and $0.7 million of the increase in SG&A is due to the inclusion of SG&A related to the acquisitions of Svendborg and Guardian, respectively. The remainder of the difference relates to $1.4 million in increased costs related to the Company's employer sponsored health care plan in the United States, offset by approximately $0.5 in general cost savings.

Amounts in thousands, except percentage data	Quarter Ended
	September 30, 2014		September 28, 2013		Change		%
Research and development expenses (“R&D”)	$	3,818	$	3,002	$	816	27.2	%

Of the increase in R&D, approximately $0.4 million relates to the inclusion of R&D related to the acquisition of Svendborg.

R&D expenses as a percentage of sales excluding the impact of Svendborg remained consistent with prior year at approximately 1.7% of sales. We expect R&D expenses approximate 1.8% - 2.0% in future periods.

Amounts in thousands, except percentage data	Quarter Ended
	September 30, 2014		September 28, 2013		Change		%
Restructuring	$	1,643	$	97	$	1,546	1,593.8	%

During the quarter ended September 30, 2014, the Company adopted a restructuring plan (“2014 Altra Plan”) as a result of weak demand in Europe and to make certain adjustments to its existing sales force to reflect the Company's expanding global footprint. The actions taken pursuant to the 2014 Altra Plan included reducing headcount and limiting discretionary spending to improve profitability. The Company expects to incur approximately $0.4 million in additional expenses associated with the 2014 Altra Plan during the remainder of 2014.

Amounts in thousands, except percentage data	Quarter Ended
	September 30, 2014		September 28, 2013		Change		%
Interest Expense, net	$	3,000	$	2,567	$	433	16.9	%

Net interest expense increased during the quarter ended September 30, 2014 over the comparable 2013 period, primarily due to the borrowing of approximately €54.5 million for the acquisition of Svendborg during the quarter ended December 31, 2013.

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Amounts in thousands, except percentage data	Quarter Ended
	September 30, 2014			September 28, 2013		Change			%
Other non-operating expense, net	$	(313	)	$	686	$	(999	)	(145.6	)%

Other non-operating expense in each period in the chart above relates primarily to changes in foreign currency, primarily the Euro.

Amounts in thousands, except percentage data	Quarter Ended
	September 30, 2014			September 28, 2013			Change		%
Provision for income taxes	$	8,170		$	5,176		$	2,994	57.8	%
Provision for income taxes as a % of income before income taxes	54.0		%	33.1		%

The increase in the provision for income taxes, as a percentage of income before taxes for the quarter ended September 30, 2014 compared to the quarter ended September 28, 2013 is primarily due to the discrete tax impact of $3.8 million recorded in the quarter ended September 30, 2014. The one time charge is a result of the restructuring of certain of our foreign subsidiaries resulting in additional taxable income in the United States during the quarter ended September 30, 2014. We expect that this restructuring will result in a lower tax rate in future years. This increase was partially offset by the favorable impact of statutory tax rate reductions in the United Kingdom along with the lower statutory tax rates in jurisdictions in which the Svendborg business operates.

Year to Date Period Ended September 30, 2014 compared with Year to Date Period Ended September 28, 2013

(Amounts in thousands, unless otherwise noted)

Amounts in thousands, except percentage data	Year to Date Period Ended
	September 30, 2014		September 28, 2013
					Change		%
Net sales	$	627,856	$	541,688	$	86,168	15.9	%

The increase in sales during the period ended September 30, 2014 was due to the acquisition of Svendborg and Guardian, positive foreign exchange rates, and slightly higher sales levels than in the quarter ended September 28, 2013. Of the increase in sales, approximately $63.7 million and $2.7 million relates to the inclusion of additional sales related to the acquisition of Svendborg and Guardian, respectively, for the year to date period ended September 30, 2014 and $5.1 million relates to the impact of foreign exchange rate increases primarily attributed to the exchange rate for the British Pound compared to the prior year. The remainder of the increase was attributable to sales growth in the North American turf & garden and oil and gas markets. We expect our order rates to remain stable throughout the remainder of 2014.

Amounts in thousands, except percentage data	Year to Date Period Ended
	September 30, 2014			September 28, 2013			Change		%
Gross Profit	$	190,599		$	164,686		$	25,913	15.7	%
Gross Profit as a percent of sales	30.4		%	30.2		%

Gross profit as a percentage of sales increased during the year to date period ended September 30, 2014 due to the inclusion of Svenborg and Guardian as Svendborg's and Guardian’s operations have gross profit percentages of sales greater than the average of the overall Company.

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Amounts in thousands, except percentage data	Year to Date Period Ended
	September 30, 2014			September 28, 2013			Change		%
Selling, general and administrative expense (“SG&A”)	$	117,828		$	96,742		$	21,086	21.8	%
SG&A as a percent of sales	18.8		%	17.9		%

$19.1 million of the increase in SG&A is due to the inclusion of SG&A related to the acquisition of Svendborg and Guardian. The remainder of the difference relates to $2.5 million in increased costs related to the Company's employer sponsored health care plan in the United States, offset by approximately $0.5 in general cost savings.

Amounts in thousands, except percentage data	Year to Date Period Ended
	September 30, 2014		September 28, 2013		Change		%
Research and development expenses (“R&D”)	$	11,719	$	9,150	$	2,569	28.1	%

Of the increase in R&D, approximately $1.4 million relates to the inclusion of R&D related to the acquisition of Svendborg for the year.

Amounts in thousands, except percentage data	Year to Date Period Ended
	September 30, 2014		September 28, 2013		Change		%
Restructuring	$	1,643	$	655	$	988	150.8	%

During the quarter ended September 30, 2014, the Company adopted a restructuring plan (“the 2014 Altra Plan”) as a result of weak demand in Europe and to make certain adjustments to its existing salesforce to reflect the Company's expanding global footprint. The actions taken pursuant to the 2014 Altra Plan included reducing headcount and limiting discretionary spending to improve profitability. The Company expects to incur approximately $0.4 million in additional expenses associated with the 2014 Altra Plan during the remainder of 2014.

Amounts in thousands, except percentage data	Year to Date Period Ended
	September 30, 2014		September 28, 2013		Change		%
Interest Expense, net	$	8,991	$	7,830	$	1,161	14.8	%

Net interest expense increased during the year to date period ended September 30, 2014 over the comparable 2013 period, primarily due to the borrowing of approximately €54.5 million for the acquisition of Svendborg during the quarter ended December 31, 2013.

Amounts in thousands, except percentage data	Year to Date Period Ended
	September 30, 2014		September 28, 2013		Change			%
Other non-operating expense (income), net	$	446	$	783	$	(337	)	(43.0	)%

Other non-operating expense (income) in each period in the chart above relates primarily to changes in foreign currency, primarily the Euro.

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Amounts in thousands, except percentage data	Year to Date Period Ended
	September 30, 2014			September 28, 2013			Change		%
Provision for income taxes	$	18,843		$	15,423		$	3,420	22.2	%
Provision for income taxes as a % of income before income taxes	37.7		%	31.9		%

The increase in the provision for income taxes as a percentage of income before taxes for the year to date period ended September 30, 2014 compared to the year to date period ended September 28, 2013 was primarily due to the discrete tax impact of $3.8 million recorded in the quarter ended September 30, 2014. The one time charge is a result of the restructuring of certain of our foreign subsidiaries resulting in additional taxable income in the United States during the quarter ended September 30, 2014. We expect that this restructuring will result in a lower tax rate in future years. This increase was partially offset by the favorable impact of statutory tax rate reductions in the United Kingdom along with the lower statutory tax rates in jurisdictions in which the Svendborg business operates.

(Amounts in thousands, unless otherwise noted)

Liquidity and Capital Resources

Liquidity and Capital Resources

Overview

We finance our capital and working capital requirements through a combination of cash flows from operating activities and borrowings under our Revolving Credit Facility. We expect that our primary ongoing requirements for cash will be for working capital, debt service, capital expenditures, acquisitions, pensions and dividends. In the event additional funds are needed for operations, we could borrow additional funds available under our existing Revolving Credit Facility, request an expansion by up to $150,000,000 of the amount available to be borrowed under the Credit Agreement, attempt to secure new debt, attempt to refinance our loans under the Credit Agreement, or attempt to raise capital in the equity markets. Presently, we have the ability under our Revolving Credit Facility to borrow an additional $152.9 million, based on current availability calculations. There can be no assurance however that additional debt financing will be available on commercially acceptable terms, if at all. Similarly, there can be no assurance that equity financing will be available on commercially acceptable terms, if at all.

Borrowings

	Amounts in millions
	September 30, 2014		December 31, 2013
Debt:
Revolving Credit Facility	$	37.0	$	41.2
Convertible Notes	85.0		$	85.0
Term Loan Facility	137.5		$	163.2
Equipment Loan	5.3		$	4.1
Mortgages	0.4		$	0.7
Capital leases	—		$	0.2
Total debt	$	265.2	$	294.4

Credit Agreement

In December 2013, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement amends and restates the Company’s former credit agreement, dated November 20, 2012

35

(the “Former Credit Agreement”). Pursuant to the Former Credit Agreement, the former lenders made available to the Company an initial term loan facility of $100,000,000 and an initial revolving credit facility of $200,000,000.

Pursuant to the Credit Agreement, the lenders made an additional term loan of €50,000,000 (the “Additional Term Loan”) to Altra Industrial Motion Netherlands B.V. The Credit Agreement kept in effect the balance (approximately $94,375,000) of the existing term loan facility (the “Initial Term Loan”) made to the domestic borrowers under the Former Credit Agreement (collectively, the two term loans are referred to as the “Term Loan Facility”), as well as the revolving credit facility of $200,000,000 made under the Former Credit Agreement (the “Revolving Credit Facility”). The Credit Agreement continues, even after the making of the Additional Term Loan, to provide for a possible expansion of the credit facilities by an additional $150,000,000, which can be allocated as additional term loans and/or additional revolving credit loans. The amounts available under the Term Loan Facility were used, and amounts available under the Revolving Credit Facility can be used, for general corporate purposes, including acquisitions, and to repay existing indebtedness. The stated maturity of these credit facilities is December 6, 2018, and there are scheduled quarterly principal payments due on the outstanding amount of the Term Loan Facility. With respect to the Initial Term Loan, the scheduled quarterly principal payments due on the outstanding amount have been reset to amortize in accordance with the new December 6, 2018 maturity date. The previous maturity of the Revolving Credit Facility and the Initial Term Loan was November 20, 2017.

The amounts available under the Revolving Credit Facility may be drawn upon in accordance with the terms of the Credit Agreement. All amounts outstanding under the credit facilities are due on the stated maturity or such earlier time, if any, required under the Credit Agreement. The amounts owed under either of the credit facilities may be prepaid at any time, subject to usual notification and breakage payment provisions. Interest on the amounts outstanding under the credit facilities is calculated using either an ABR Rate or Eurodollar Rate, plus the applicable margin. The applicable margins for Eurodollar Loans are between 1.375% to 1.875%, and for ABR Loans are between 0.375% and 0.875%. The amounts of the margins are calculated based on either a consolidated total net leverage ratio (as defined in the Credit Agreement), or the then applicable rating(s) of the Company’s debt if and then to the extent as provided in the Credit Agreement. A portion of the Revolving Credit Facility may also be used for the issuance of letters of credit, and a portion of the amount of the Revolving Credit Facility is available for borrowings in certain agreed upon foreign currencies.

As of September 30, 2014 and December 31, 2013, we had $37.0 million and $41.2 million outstanding on our Revolving Credit Facility, respectively. As of September 30, 2014 and December 31, 2013, we had $10.1 million and $9.8 million in letters of credit outstanding, respectively. We had $152.9 million and $149.0 million available under the Revolving Credit Facility at September 30, 2014 and December 31, 2013, respectively.

The Credit Agreement contains various affirmative and negative covenants and restrictions, which among other things, will require the Company and certain Subsidiaries to provide certain financial reports to the Lenders, require the Company to maintain certain financial covenants relating to consolidated leverage and interest coverage, limit maximum annual capital expenditures, and limit the ability of the Company and its subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other equity distributions, purchase or redeem capital stock or debt stock or debt, make certain investments, sell assets, engage in certain transactions, and effect a consolidation or merger. The Credit Agreement also contains customary events of default.

Hedging Activities

The Company utilizes a derivative instrument, namely an interest rate swap, to manage exposure to interest rates on the Company’s variable rate indebtedness. Our derivative instrument is with a major financial institution and is not for speculative or trading purposes. The Company has designated its interest rate swap agreement which is forward-dated, as a cash flow hedge, and changes in the fair value of the swap are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swap will be reported by the Company in interest expense. For more information on the interest rate swap (see Note 14).

Pledge and Security Agreement; Trademark Security Agreement; Patent Security Agreement.

Pursuant to an Omnibus Reaffirmation and Ratification of Collateral Documents entered into on December 6, 2013 in connection with the Credit Agreement by and among the Company, the Loan Parties and the Administrative Agent (the “Ratification Agreement”), the Loan Parties (exclusive of the foreign subsidiary Borrower) have reaffirmed their obligations to the Lenders under the Pledge and Security Agreement dated November 20, 2012 (the “Pledge and Security Agreement”), pursuant to which each Loan Party pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Lenders, a security interest in all of its right, title and interest in, to and under all personal property, whether now owned by or owing to, or after acquired by or arising in favor of such Loan Party (including

36

under any trade name or derivations), and whether owned or consigned by or to, or leased from or to, such Loan Party, and regardless of where located, except for specific excluded personal property identified in the Pledge and Security Agreement (collectively, the “Collateral”). Notwithstanding the foregoing, the Collateral does not include, among other items, more than 65% of the capital stock of the first tier foreign subsidiaries of the Company. The Pledge and Security Agreement contains other customary representations, warranties and covenants of the parties. The Credit Agreement provides that the obligation to grant the security interest can cease upon the obtaining of certain corporate family credit ratings for the Company, but the obligation to grant a security interest is subject to subsequent reinstatement if the ratings are not maintained as provided in the Credit Agreement.

Pursuant to the Ratification Agreement, the Loan Parties (other than the foregoing subsidiary Borrower) have also reaffirmed their obligations under each of the Patent Security Agreement and a Trademark Security Agreement in favor of the Administrative Agent dated November 20, 2012 pursuant to which each of the Loan Parties signatory thereto pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Lenders, a security interest in all of its right, title and interest in, to and under all registered patents, patent applications, registered trademarks and trademark applications owned by such Loan Parties.

The Loan Parties and the Administrative Agent entered into a Pledge and Security Agreement (the “Pledge and Security Agreement”), pursuant to which each Loan Party pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Lenders, a security interest in all of its right, title and interest in, to and under all personal property, whether now owned by or owing to, or after acquired by or arising in favor of such Loan Party (including under any trade name or derivations), and whether owned or consigned by or to, or leased from or to, such Loan Party, and regardless of where located, except for specific excluded personal property identified in the Pledge and Security Agreement (collectively, the “Collateral”). Notwithstanding the foregoing, the Collateral does not include, among other items, more than 65% of the capital stock of the first tier foreign subsidiaries of the Company. The Pledge and Security Agreement contains other customary representations, warranties, and covenants of the parties. The Credit Agreement provides that the obligation to grant the security interest can cease upon the obtaining of certain corporate family ratings for the Company, but the obligation to grant a security interest is subject to subsequent reinstatement if the ratings are not maintained as provided in the Credit Agreement.

In connection with the Pledge and Security Agreement, certain of the Loan Parties delivered a Patent Security Agreement and a Trademark Security Agreement in favor of the Administrative Agent pursuant to which each of the Loan Parties signatory thereto pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Lenders, a security interest in all of its right, title and interest in, to and under all registered patents, patent applications, registered trademarks and trademark applications owned by such Loan Parties.

We were in compliance in all material respects with all covenants of the indenture governing the Credit Agreement on September 30, 2014.

Convertible Senior Notes

In March 2011, the Company issued Convertible Senior Notes (the “Convertible Notes”) due March 1, 2031. The Convertible Notes are guaranteed by the Company’s U.S. domestic subsidiaries. Interest on the Convertible Notes is payable semi-annually in arrears, on March 1 and September 1 of each year, commencing on September 1, 2011 at an annual rate of 2.75%. Proceeds from the offering were $81.3 million, net of fees and expenses that were capitalized. The proceeds from the offering were used to fund the Bauer Acquisition, as well as bolster the Company’s cash position.

Because the last reported sale price of the Company's common stock did not exceed 130% of the current conversion price, which was $26.82 for at least 20 of the last 30 consecutive trading days in the fiscal quarter ended September 30, 2014, the Convertible Notes are not convertible at the election of the holders of the Convertible Notes at any time during the fiscal quarter ending December 31, 2014. The future convertibility will be monitored at each quarterly reporting date and will be analyzed dependent upon market prices of the Company's common stock during the prescribed measurement periods.

Should the Convertible notes become convertible in future periods, the Company has the ability and intent to fund any potential payments of the principal amount of the debt with additional borrowings under the Revolving Credit Agreement.

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Cash and Cash Equivalents

The following is a summary of our cash balances and cash flows (in thousands) as of and for the year to date periods ended September 30, 2014 and September 28, 2013, respectively:

	September 30, 2014			September 28, 2013			Change
Cash and cash equivalents at the beginning of the period	$	63,604		$	85,154		$	(21,550	)
Cash flows from operating activities	62,038			62,169			(131		)
Cash flows from investing activities	(31,282		)	(14,361		)	(16,921		)
Cash flows from financing activities	(47,793		)	(62,162		)	14,369
Effect of exchange rate changes on cash and cash equivalents	(3,573		)	(528		)	(3,045		)
Cash and cash equivalents at the end of the period	$	42,994		$	70,272		$	(27,278	)

Cash Flows for 2014

The primary sources of funds provided from operating activities of approximately $62.0 million for the year to date period ended September 30, 2014 resulted from cash provided from net income of $31.1 million. The net impact of the add-back of certain items including non-cash depreciation, amortization, stock-based compensation, accretion of debt discount, deferred financing costs, and non-cash loss on foreign currency was approximately $34.3 million. This amount was offset by a net decrease in current assets and liabilities of approximately $3.4 million.

The change in cash flows from operating activities in 2014 as compared to 2013 related to the cash generated from the operations of Svendborg for the year to date period ended September 30, 2014 . While a variety of factors can influence our ability to project future cash flow, we expect to see positive cash flows from operating activities during the remainder of fiscal 2014 due to income from operations, a large number of non-cash charges, a decrease in working capital and profitability initiatives.

Net cash used in investing activities increased compared to the year to date period ended September 28, 2013 due to $15.1 million used for the Guardian acquisition along with increased capital expenditures offset by $0.3 million received from the sale of land during the year to date period ended September 30, 2014.

The change in net cash from financing activities in the year to date period ended September 30, 2014 as compared to the year to date period ended September 28, 2013 related primarily due to an $27.4 million decrease in principal payments made on the company’s Term Loan Facility and Revolving Credit Facility along with $5.0 million in additional borrowings under the Revolving Credit Facility. This was partially offset by a $3.8 million increase in dividend payments made during the year to date period ended September 30, 2014 along with a $12.8 million in stock repurchases related to the Company's new share repurchase program initiated during the period.

We intend to use our remaining existing cash and cash equivalents and cash flow from operations to provide for our working capital needs, to fund potential future acquisitions, debt service, including principal payments, capital expenditures for pension funding, and to pay dividends to our stockholders. We have approximately $36.2 million of cash and cash equivalents held by foreign subsidiaries that are generally subject to U.S. income taxation on repatriation to the U.S. We believe our future operating cash flows will be sufficient to meet our future operating and investing cash needs. Furthermore, the existing cash balances and the availability of additional borrowings under our Revolving Credit Facility provide additional potential sources of liquidity should they be required.

Contractual Obligations

There were no significant changes in our contractual obligations subsequent to December 31, 2013.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various market risk factors such as fluctuating interest rates, changes in foreign currency rates, and changes in commodity prices. During the reporting period, except as set forth below, there have been no material changes to the quantitative and qualitative disclosures regarding our market risk set forth in our Annual Report on Form 10-K for the year ended December 31, 2013.

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During the quarter ended September 30, 2014, we utilized a derivative instrument, namely an interest rate swap, to manage exposure to interest rates on the Company’s variable rate indebtedness. Our derivative instrument is with a major financial institution and is not for speculative or trading purposes. The Company has designated its interest rate swap agreement which is forward-dated, as a cash flow hedge, and changes in the fair value of the swap are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swap will be reported by the Company in interest expense.

We recorded the interest rate swap at fair value, which was $0.2 at September 30, 2014. Hedge ineffectiveness, if any, associated with the swap will be reported by the Company as interest expense. With other variables held constant, a hypothetical 50 basis point decrease in the LIBOR yield curve would have resulted in a decrease of approximately $1.0 million in the fair value of the interest rate swap. See Note 14 for further information.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of September 30, 2014, our management, under the supervision and with the participation of our chief executive officer and chief financial officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in reports filed under the Exchange Act, such as this Form 10-Q, is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to management, including the principal executive and financial officers, as appropriate, to allow timely decisions regarding required disclosures. Based upon that evaluation, our chief executive officer and chief financial officer have concluded that, as of September 30, 2014, our disclosure controls and procedures are effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting (as defined in Rule 13a—15(f) under the Exchange Act) that occurred during our fiscal quarter ended September 30, 2014, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Note Regarding Acquisition

In making its assessment of changes in internal control over financial reporting as of September 30, 2014, management has excluded the operations of various legal entities which make up the Svendborg Acquisition (consolidated by the Company as of December 17, 2013) as noted in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Company is currently assessing the control environment of this acquired business.

The Company’s consolidated financial statements reflect Svendborg’s results of operations from the beginning of business on December 17, 2014 forward. The acquired business’ total revenues were less than 10% of the Company’s total revenue for the nine months ended September 30, 2014.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are, from time to time, party to various legal proceedings arising out of our business. During the reporting period, there have been no material changes to the description of legal proceedings set forth in our Annual Report on Form 10-K for the year ended December 31, 2013.

Item 1A. Risk Factors

The reader should carefully consider the Risk Factors described in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission. Those risk factors described elsewhere in this report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2013 are not the only ones we face, but are considered to be the most material. These risk factors could cause our actual results to differ materially from those stated in forward looking statements contained in this Form 10-Q and elsewhere. All risk factors stated in our Annual Report on Form 10-K for the year ended December 31, 2013 are incorporated herein by reference.

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During the reporting period, there have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table summarizes our share repurchase activity by month for the quarter ended September 30, 2014.

Approximate Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares That May Yet be Purchased Under The Plans or Programs
July 1, 2014 to July 31, 2014	50,012	$	34.32	50,012	$	45,374,678
August 1, 2014 to August 31, 2014	162,611	$	32.82	160,975	$	40,092,228
September 1, 2014 to September 30, 2014	89,997	$	32.31	89,997	$	37,184,409

(1) We repurchased 1,636 of these shares of common stock during August 2014 in connection with the vesting of certain stock awards to cover minimum statutory withholding taxes.

(2) During the quarter ended September 30, 2014, the Company repurchased shares of common stock under its share repurchase program initiated in May 2014, which authorized the buyback of up to $50.0 million of the Company's common stock.  Under the program, the Company is authorized to purchase shares on the open market, through block trades, in privately negotiated transactions, in compliance with SEC Rule 10b-18, or in other appropriate manners. The Company has adopted a Rule 10b5-1 plan under which it is making purchases in compliance with the terms of such plan. The Company is also making open market share repurchases at the discretion of management.  Shares acquired through the repurchase program will be retired. The share repurchase plan terminates on December 31, 2016.  The Company retains the right to limit, terminate or extend the share repurchase program at any time without prior notice.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

Item 6. Exhibits

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The following exhibits are filed as part of this report:

Exhibit Number	Description
3.1(1)	Second Amended and Restated Certificate of Incorporation of the Registrant.
3.2(2)	Second Amended and Restated By laws of the Registrant.
31.1*	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, formatted in XBRL (Extensible Business Reporting Language): (i) the Unaudited Condensed Consolidated Statement of Operations, (ii) the Unaudited Condensed Consolidated Statement of Comprehensive Income, (iii) the Unaudited Condensed Consolidated Balance Sheet, (iv) the Unaudited Condensed Consolidated Statement of Cash Flows, and (v) Notes to Unaudited Condensed Consolidated Financial Statements.

*	Filed herewith.
**	Furnished herewith.

(1) Incorporated by reference to Altra Industrial Motion Corp. Registration Statement on Form S-1A, as amended, filed with the Securities and Exchange Commission on December 4, 2006.

(2) Incorporated by reference to Altra Industrial Motion Corp.’s Current Report on form 8-K filed on October 27, 2008.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		ALTRA INDUSTRIAL MOTION CORP.
October 27, 2014	By:	/s/ Carl R. Christenson
	Name:	Carl R. Christenson
	Title	Chairman and Chief Executive Officer
October 27, 2014	By:	/s/ Christian Storch
	Name:	Christian Storch
	Title:	Vice President and Chief Financial Officer
October 27, 2014	By:	/s/ Todd B. Patriacca
	Name:	Todd B. Patriacca
	Title:	Vice President of Finance, Corporate Controller and Treasurer

42

EXHIBIT INDEX

Exhibit Number	Description
3.1(1)	Second Amended and Restated Certificate of Incorporation of the Registrant.
3.2(2)	Second Amended and Restated Bylaws of the Registrant.
31.1*	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, formatted in XBRL (Extensible Business Reporting Language): (i) the Unaudited Condensed Consolidated Statement of Operations, (ii) the Unaudited Condensed Statement of Comprehensive Income, (iii) the Unaudited Condensed Consolidated Balance Sheet, (iv) the Unaudited Condensed Consolidated Statement of Cash Flows, and (v) Notes to Unaudited Condensed Consolidated Financial Statements.

*	Filed herewith.
**	Furnished herewith.

(1) Incorporated by reference to Altra Industrial Motion Corp. Registration Statement on Form S-1A, as amended, filed with the Securities and Exchange Commission on December 4, 2006.

(2) Incorporated by reference to Altra Industrial Motion Corp. Current Report on form 8-K filed on October 27, 2008.

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EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

I, Carl R. Christenson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Altra Industrial Motion Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 27, 2014	By:	/s/ Carl R. Christenson
	Name:	Carl R. Christenson
	Title:	Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

I, Christian Storch, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Altra Industrial Motion Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 27, 2014	By:	/s/ Christian Storch
	Name:	Christian Storch
	Title:	Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Altra Industrial Motion Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Carl R. Christenson, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 27, 2014	By:	/s/ Carl R. Christenson
	Name:	Carl R. Christenson
	Title:	Chairman and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Altra Industrial Motion Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christian Storch, Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 27, 2014	By:	/s/ Christian Storch
	Name:	Christian Storch
	Title:	Vice President and Chief Financial Officer

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Net Income per Share - Additional Information (Detail) (USD $)	Sep. 30, 2014
Earnings Per Share [Abstract]
Current conversion price per share of convertible notes	$ 26.82

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Debt - Outstanding Debt Obligations (Detail)	9 Months Ended											9 Months Ended
	Sep. 30, 2014 USD ($)	Sep. 30, 2014 EUR (€)	Dec. 31, 2013 USD ($)	Sep. 30, 2014 Revolving Credit Facility [Member] USD ($)	Dec. 31, 2013 Revolving Credit Facility [Member] USD ($)	Sep. 30, 2014 Convertible Notes [Member] USD ($)	Dec. 31, 2013 Convertible Notes [Member] USD ($)	Sep. 30, 2014 Term Loan Facility [Member] USD ($)	Dec. 31, 2013 Term Loan Facility [Member] USD ($)	Sep. 30, 2014 Equipment Loan [Member] USD ($)	Dec. 31, 2013 Equipment Loan [Member] USD ($)	Sep. 30, 2014 Mortgages [Member] USD ($)	Sep. 30, 2014 Mortgages [Member] EUR (€)	Dec. 31, 2013 Mortgages [Member] USD ($)	Sep. 30, 2014 Capital Leases [Member] USD ($)	Dec. 31, 2013 Capital Leases [Member] USD ($)	Sep. 30, 2014 Other [Member] USD ($)	Dec. 31, 2013 Other [Member] USD ($)
Debt Instrument [Line Items]
Construction Loan												$ 7,900,000	€ 6,000,000
Total debt	265,230,000		294,435,000	37,000,000	41,198,000	85,000,000	85,000,000	137,528,000	163,245,000	5,334,000	4,155,000	340,000		659,000	0	178,000	28,000	0
Less: debt discount, net of accretion	(13,636,000)		(16,163,000)
Total debt, net of unaccreted discount	251,594,000		278,272,000
Less current portion of long-term debt	14,532,000		16,924,000
Total long-term debt, net of unaccreted discount	237,062,000		261,348,000
interest rate mortgage												2.50%	2.50%
Debt Instrument, Periodic Payment, Interest	$ 300,000	€ 200,000

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Goodwill And Intangible Assets [Line Items]
Amortization expense	$ 2,300,000	$ 1,700,000	$ 6,884,000	$ 4,882,000
Estimated Amortization Expense for Intangible Assets [Member]
Goodwill And Intangible Assets [Line Items]
Remainder 2014	2,400,000		2,400,000
Each of the next four years after 2014	9,300,000		9,300,000
Year 2015	9,200,000		9,200,000
Year 2016	9,200,000		9,200,000
Year 2017	9,200,000		9,200,000
Year 2018	9,200,000		9,200,000
Thereafter	$ 32,300,000		$ 32,300,000

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Debt - Additional Information (Detail)	9 Months Ended							9 Months Ended	1 Months Ended					9 Months Ended		0 Months Ended			12 Months Ended			9 Months Ended
	Sep. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2014 Initial Conversion Price [Member] USD ($)	Dec. 31, 2013 Additional Term Loan [Member] USD ($)	Dec. 31, 2013 Additional Term Loan [Member] EUR (€)	Sep. 30, 2014 Revolving Credit Facility [Member] USD ($)	Dec. 31, 2013 Revolving Credit Facility [Member] USD ($)	Sep. 30, 2014 Minimum [Member]	Dec. 31, 2013 Minimum [Member] Eurodollar Loan [Member]	Dec. 31, 2013 Minimum [Member] ABR Based Loans [Member]	Dec. 31, 2013 Maximum [Member] USD ($)	Dec. 31, 2013 Maximum [Member] Eurodollar Loan [Member]	Dec. 31, 2013 Maximum [Member] ABR Based Loans [Member]	Sep. 30, 2014 Convertible Debt [Member] USD ($)	Sep. 01, 2011 Convertible Debt [Member]	Sep. 01, 2011 Convertible Notes [Member] USD ($)	Sep. 30, 2014 Convertible Notes [Member] USD ($)	Dec. 31, 2013 Convertible Notes [Member] USD ($)	Dec. 31, 2013 Term Loan Facility [Member] USD ($)	Dec. 31, 2013 Revolving Credit Agreement [Member] USD ($)	Sep. 30, 2014 Revolving Credit Agreement [Member] USD ($)	Sep. 30, 2014 Equipment And Working Capital Notes [Member] USD ($)	Sep. 30, 2014 Equipment And Working Capital Notes [Member] CNY	Sep. 30, 2014 Equipment And Working Capital Notes [Member] Minimum [Member]	Sep. 30, 2014 Equipment And Working Capital Notes [Member] Maximum [Member]	Sep. 30, 2014 Mortgages [Member] USD ($)	Sep. 30, 2014 Mortgages [Member] EUR (€)	Dec. 31, 2013 Mortgages [Member] USD ($)	Dec. 31, 2013 Mortgages [Member] EUR (€)	Sep. 30, 2014 Capital Leases [Member] USD ($)	Dec. 31, 2013 Capital Leases [Member] USD ($)
Debt Instrument [Line Items]
Availability under credit facility agreement				$ 94,375,000,000	€ 50,000,000														$ 100,000,000	$ 200,000,000
Aggregate additional term loans											150,000,000
Credit facility maturity date																				December 6, 2018
Debt instrument, maturity date														Mar. 01, 2031					Dec. 06, 2018
Applicable margins for loans									1.375%	0.375%		1.875%	0.875%
Outstanding on revolving credit facility						37,000,000	41,200,000
Letters of credit outstanding	10,100,000	9,800,000
Amount available under credit facility																				149,000,000	152,900,000
Percentage of capital stock not included in collateral	65.00%
Coupon interest rate														2.75%	2.75%
Proceeds from the offering																81,300,000
Adjustment of shares	36.0985
Principal amount of notes	1,000
Conversion price per share	$ 26.82		$ 27.70
Percentage of sale price of common stock	130.00%
Consecutive trading days	30 days							20 days
Number of business day period	5 days
Number of consecutive trading days in measurement period	10 days
Percentage of measurement period	97.00%
Percentage of convertible notes redeemable	100.00%
Convertible notes redeemable period one	Mar. 01, 2018
Convertible notes redeemable period two	Mar. 01, 2021
Convertible notes redeemable period three	Mar. 01, 2026
Conversion price redemption exceed	130.00%
Total debt														85,000,000			85,000,000	85,000,000												0	200,000
Debt component in note payable														60,500,000
Equity component in note payable														24,500,000
Discount rate for debt component														8.25%
Debt issuance cost														3,700,000
Adjustments to additional paid-in capital of convertible debt	1,000,000
Debt issuance cost, amortized	2,700,000
Effective interest rate of Senior Secured Notes														8.50%
Outstanding letters of credit																									90.00%
Available to borrow loan amount																						6,300,000	38,700,000
Interest rate																								5.04%	8.02%	2.90%	2.90%
Line of credit outstanding loan amount																						5,300,000	32,800,000
Description about maturity date of debt instrument																						The note is due in installments from 2014 through 2016	The note is due in installments from 2014 through 2016
Mortgage remaining principal balance																										300,000	200,000	700,000	500,000
Borrowings under overdraft agreements	0	0
Approximated capital lease obligations		$ 200,000

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Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Gross goodwill, begining balance		$ 136,149
Impact of changes in foreign currency		(3,048)
Measurement period adjustments related to acquisition of Svendborg (See Note 6)	2,085	1,277
Gross goodwill, ending balance	136,463	136,463
Accumulated impairment, begining balance		(31,810)
Impairment charge during the period		0
Accumulated impairment, ending balance	(31,810)	(31,810)
Net goodwill balance June 30	$ 104,653	$ 104,653	$ 104,339

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Summary of Total Restructuring Expense

The Company’s total restructuring expense, by major component for the quarter and year to date periods ended September 30, 2014 and September 28, 2013 was as follows:

	Quarter Ended					Year to Date Ended
	September 30, 2014		September 28, 2013			September 30, 2014		September 28, 2013
	2014 Altra Plan		2012 Altra Plan			2014 Altra Plan		2012 Altra Plan
Severance	$	1,161	$	137		$	1,161	$	653
Other	482		(40		)	482		2
Total cash expenses	$	1,643	$	97		$	1,643	$	655

Reconciliation of Accrued Restructuring Costs

The following is a reconciliation of the accrued restructuring cost:

	All Plans
Balance at January 1, 2014	$	429
Restructuring expense incurred	1,643
Cash payments	(933		)
Balance at September 30, 2014	$	1,139

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Debt - Interest Expense Associated with Convertible Notes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Debt Disclosure [Abstract]
Contractual coupon rate of interest	$ 584	$ 584	$ 1,753	$ 1,753
Accretion of Convertible Notes discount and amortization of deferred financing costs	681	879	2,527	2,594
Interest expense for the convertible notes	$ 1,265	$ 1,463	$ 4,280	$ 4,347

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Inventories (Tables)

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories located at certain subsidiaries are stated at the lower of cost or market, principally using the last-in, first-out (“LIFO”) method. Inventories at September 30, 2014 and December 31, 2013 consisted of the following:

	September 30, 2014		December 31, 2013
Raw materials	$	40,545	$	56,824
Work in process	16,352		18,432
Finished goods	78,486		68,409
	$	135,383	$	143,665

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Warranty Costs - Changes in Carrying Amount of Accrued Product Warranty Costs (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013
Guarantees [Abstract]
Balance at beginning of period	$ 8,739	$ 5,625
Accrued current period warranty expense	1,314	1,758
Payments	(1,900)	(1,743)
Balance at end of period	$ 8,153	$ 5,640

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Acquisitions - Amounts Recorded as Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified		9 Months Ended
	Dec. 17, 2013 Svendborg [Member]	Sep. 30, 2014 Customer Relationships [Member]	Sep. 30, 2014 Customer Relationships [Member] Svendborg [Member]
Intangible Asset Excluding Goodwill [Line Items]
Finite-Lived Intangible Asset, Useful Life		14 years	17 years
Total intangible assets	$ 48,893

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Changes in Accumulated Other Comprehensive Income (Loss) by Component - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) by component, beginning balance			$ (18,396)	$ (23,403)
Net current-period other comprehensive income (loss)	(12,112)	(7,073)	(11,328)	145
Accumulated other comprehensive income (loss) by component, ending balance	(29,724)	(23,258)	(29,724)	(23,258)
Gains and Losses on Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) by component, beginning balance			135	0
Net current-period other comprehensive income (loss)			109	191
Accumulated other comprehensive income (loss) by component, ending balance	244	191	244	191
Defined Benefit Pension Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) by component, beginning balance			(3,133)	(4,607)
Net current-period other comprehensive income (loss)			0	0
Accumulated other comprehensive income (loss) by component, ending balance	(3,133)	(4,607)	(3,133)	(4,607)
Cumulative Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) by component, beginning balance			(15,398)	(18,796)
Net current-period other comprehensive income (loss)			(11,437)	(46)
Accumulated other comprehensive income (loss) by component, ending balance	$ (26,835)	$ (18,842)	$ (26,835)	$ (18,842)

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Pension and Other Employee Benefits - Reconciliation of Benefit Obligation, Fair Value of Plan Assets and Funded Status of Respective Defined Benefit (Pension) and Postretirement Benefit Plans (Detail) (Pension Benefits [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	$ 38	$ 37	$ 114	$ 113
Interest cost	273	246	819	738
Expected return on plan assets	(269)	(267)	(807)	(801)
Amortization of net gain	27	41	81	125
Net periodic benefit cost (income)	$ 69	$ 57	$ 207	$ 175

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Commitments and Contingencies - Additional Information (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Potential litigation	$ 0	$ 0

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Derivative Financial Instruments - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014 Interest Rate Swap [Member]	Apr. 30, 2013 Interest Rate Swap [Member]
Debt Instrument [Line Items]
Outstanding borrowings		$ 85,000,000	$ 85,000,000
Fixed Rate		0.626%	0.626%
Ineffectiveness associated with the swap	$ 0

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Goodwill and Intangible Assets - Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Impact of changes in foreign currency, Cost	$ (5,283)	$ (829)
Total intangible assets, Cost	170,778	167,132
Total intangible assets, Accumulated Amortization	55,248	48,364
Tradenames and Trademarks [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Intangible assets not subject to amortization, Cost	43,635	42,985
Customer Relationships [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Cost	126,364	118,914
Total intangible assets, Accumulated Amortization	49,400	42,645
Product Technology and Patents [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, Cost	6,062	6,062
Total intangible assets, Accumulated Amortization	$ 5,848	$ 5,719

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Basis of Presentation

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Company was formed on November 30, 2004 following acquisitions of The Kilian Company (“Kilian”) and certain subsidiaries of Colfax Corporation (“Colfax”). During 2006, the Company acquired Hay Hall Holdings Limited (“Hay Hall”) and Bear Linear. On April 5, 2007, the Company acquired TB Wood’s Corporation (“TB Wood’s”), and on October 5, 2007, the Company acquired substantially all of the assets of All Power Transmission Manufacturing, Inc. On May 29, 2011, the Company acquired substantially all of the assets of Danfoss Bauer GmbH relating to its gear motor business (“Bauer”). On July 11, 2012, the Company acquired 85% of privately held Lamiflex do Brasil Equipamentos Industriais Ltda. (“Lamiflex”). On December 17, 2013, the Company completed the acquisition of Svendborg Brakes A/S, now known as Svendborg Brakes ApS, and S.B. Patent Holding ApS (together “Svendborg”). The Company acquired all the issued and outstanding shares of Svendborg from Friction Holding A/S. On July 1, 2014, the Company acquired all of the issued and outstanding shares of Guardian Ind., Inc. (“Guardian Couplings”).

The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position as of September 30, 2014 and December 31, 2013, results of operations for the quarters and year to date periods ended September 30, 2014 and September 28, 2013, and cash flows for the year to date periods ended September 30, 2014 and September 28, 2013.

The Company modified its quarterly reporting calendar effective at the beginning of fiscal year 2014 to report on a calendar month-end basis with all quarters ending on the last day of the final month of each quarter. Historically, the Company’s reporting calendar for all quarters presented has consisted of thirteen weeks of operations per quarter. The Company’s fiscal year end will remain December 31. The effects of the change in the reporting periods did not have a significant impact on the consolidated financial statements.

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Derivative Financial Instruments - Summary of Swaps Recognized in Other Long-term Assets and in Other Comprehensive Income (Loss) (Detail) (Interest Rate Swap [Member], USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Apr. 30, 2013
Interest Rate Swap [Member]
Derivative [Line Items]
Effective Date	Apr. 30, 2013
Notional Amount	$ 85,000,000		$ 85,000,000
Fixed Rate	0.626%		0.626%
Maturity	Nov. 30, 2016
Fair Value	$ 243,000	$ 213,000

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Acquisitions - Proforma Amount on Acquisition Occurred (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Business Combinations [Abstract]
Total revenues	$ 201,405	$ 633,762	$ 615,885
Net income attributable to Altra Industrial Motion Corp.	$ 12,777	$ 31,852	$ 39,799
Basic earnings per share:
Net income attributable to Altra Industrial Motion Corp.	$ 0.48	$ 1.19	$ 1.49
Diluted earnings per share:
Net income attributable to Altra Industrial Motion Corp.	$ 0.48	$ 1.16	$ 1.48

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Debt (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Outstanding Debt Obligations

Outstanding debt obligations at September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014			December 31, 2013
Debt:
Revolving Credit Facility	$	37,000		$	41,198
Convertible Notes	85,000			85,000
Term Loan Facility	137,528			163,245
Equipment Loan	5,334			4,155
Mortgages	340			659
Capital leases	—			178
Other	28			—
Total debt	265,230			294,435
Less: debt discount, net of accretion	(13,636		)	(16,163		)
Total debt, net of unaccreted discount	$	251,594		$	278,272
Less current portion of long-term debt	14,532			16,924
Total long-term debt, net of unaccreted discount	$	237,062		$	261,348

Carrying Amount of Debt

The carrying amount of the principal amount of the liability component, the unamortized discount, and the net carrying amount are as follows as of September 30, 2014:

Principal amount of debt	$	85,000
Unamortized discount	13,636
Carrying value of debt	$	71,364

Interest Expense Associated with Convertible Notes

Interest expense associated with the Convertible Notes consists of the following:

	Quarter to Date Ended
	September 30, 2014		September 28, 2013
Contractual coupon rate of interest	$	584	$	584
Accretion of Convertible Notes discount and amortization of deferred financing costs	681		879
Interest expense for the convertible notes	$	1,265	$	1,463

	Year to Date Ended
	September 30, 2014		September 28, 2013
Contractual coupon rate of interest	$	1,753	$	1,753
Accretion of Convertible Notes discount and amortization of deferred financing costs	2,527		2,594
Interest expense for the convertible notes	$	4,280	$	4,347

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Pension and Other Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Reconciliation of Benefit Obligation, Fair Value of Plan Assets and Funded Status of Respective Defined Benefit (Pension) and Postretirement Benefit Plans

The following tables represent the reconciliation of the net periodic benefit cost of the defined benefit (pension) plans as of September 30, 2014 and September 28, 2013:

	Quarter Ended
	Pension Benefits
	September 30, 2014			September 28, 2013
Service cost	$	38		$	37
Interest cost	273			246
Expected return on plan assets	(269		)	(267		)
Amortization of net gain	27			41
Net periodic benefit cost (income)	$	69		$	57

	Year to Date Ended
	Pension Benefits
	September 30, 2014			September 28, 2013
Service cost	$	114		$	113
Interest cost	819			738
Expected return on plan assets	(807		)	(801		)
Amortization of net gain	81			125
Net periodic benefit cost (income)	$	207		$	175

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Debt - Carrying Amount of Debt (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total long-term debt, net of unaccreted discount	$ 237,062	$ 261,348
Convertible Debt [Member]
Debt Instrument [Line Items]
Principal amount of debt	85,000
Unamortized discount	13,636
Total long-term debt, net of unaccreted discount	$ 71,364

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Inventories - Summary of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 40,545	$ 56,824
Work in process	16,352	18,432
Finished goods	78,486	68,409
Inventories, net	$ 135,383	$ 143,665

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Company's Restricted Stock Grants

The following table sets forth the activity of the Company’s restricted stock and performance share grants in the year to date period ended September 30, 2014:

	Shares		Weighted-average grant date fair value
Shares unvested January 1, 2014	149,635		$	23.02
Shares granted	132,441		33.56
Shares for which restrictions lapsed	(122,898	)	29.50
Shares unvested September 30, 2014	159,178		$	28.53

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Swaps Recognized in Other Long-term Assets and in Other Comprehensive Income (Loss)

The fair value of the swap recognized in other non-current assets, net and in other comprehensive income (loss) is as follows:

						Fair Value
	Notional					September 30, 2014		December 31, 2013
Effective Date	Amount		Fixed Rate		Maturity
April 30, 2013	$	85,000	0.626	%	November 30, 2016	$	243	$	213

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Organization and Nature of Operations

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Organization and Nature of Operations

Organization and Nature of Operations

Headquartered in Braintree, Massachusetts, Altra Industrial Motion Corp. (the “Company” or "Altra"), through its wholly-owned subsidiary Altra Power Transmissions, Inc. (“APT”), is a leading multi-national designer, producer and marketer of a wide range of electro-mechanical power transmission products. The Company brings together strong brands covering over 42 product lines with production facilities in eleven countries. Altra’s leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Lamiflex Couplings, Marland Clutch, Matrix, Nuttall Gear, Stieber Clutch, Svendborg Brakes, TB Wood’s, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch.

In November 2013, Altra Holdings, Inc. changed its name to Altra Industrial Motion Corp., and Altra Industrial Motion, Inc., the Company’s wholly owned subsidiary, changed its name to Altra Power Transmission, Inc.

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Concentrations of Credit, Segment Data and Workforce (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Net Sales to Third Parties by Geographic Region

Net sales to third parties by geographic region are as follows:

	Net Sales				Net Sales
	Quarter Ended				Year to Date Ended
	September 30, 2014		September 28, 2013		September 30, 2014		September 28, 2013
North America (primarily U.S.)	$	117,796	$	109,810	$	370,944	$	343,844
Europe	64,116		52,315		199,196		160,895
Asia and other	20,608		13,318		57,716		36,949
Total	$	202,520	$	175,443	$	627,856	$	541,688

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Acquisitions - Additional Information (Detail) In Millions, unless otherwise specified	9 Months Ended		12 Months Ended	9 Months Ended	0 Months Ended	1 Months Ended			9 Months Ended	0 Months Ended
	Sep. 30, 2014 USD ($)	Sep. 30, 2014 EUR (€)	Dec. 31, 2013 Country	Sep. 30, 2014 Customer Relationships [Member]	Dec. 17, 2013 Svendborg [Member] USD ($)	Dec. 31, 2013 Svendborg [Member] USD ($)	Dec. 31, 2013 Svendborg [Member] EUR (€)	Dec. 17, 2013 Svendborg [Member] USD ($)	Sep. 30, 2014 Svendborg [Member] Customer Relationships [Member]	Jul. 01, 2014 GuardianAcquisition [Member] USD ($)
Business Acquisition [Line Items]
Business acquisition cash consideration						$ 110.2	€ 80.1
Cash remaining on the balance sheet upon closing the acquisition						7.5	5.4
Business acquisition number of countries in which entity operates			7
Escrow deposits established for transfer pricing claims						11.6	8.5
Estimated liability for transfer pricing claims by the company						8.1
payment of transfer	8.1	5.9
Estimated receivables from transfer pricing claims by the company								8.1
Estimated useful lives				14 years					17 years
Approximate excluded acquisition costs of purchase price					$ 2.5					$ 0.4

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Pension and Other Employee Benefits - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Minimum cash contribution to pension plan	$ 0.2

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 42,994	$ 63,604
Trade receivables, less allowance for doubtful accounts of $2,802 and $2,245 at September 30, 2014 and December 31, 2013, respectively	117,872	109,084
Inventories	135,383	143,665
Deferred income taxes	9,821	9,754
Assets Held-for-sale, Current	573	0
Income tax receivable	1,918	5,032
Prepaid expenses and other current assets	8,195	18,066
Total current assets	316,756	349,205
Property, plant and equipment, net	152,776	157,535
Intangible assets, net	115,530	118,768
Goodwill	104,653	104,339
Deferred income taxes	894	934
Other non-current assets, net	4,188	4,895
Total assets	694,797	735,676
Current liabilities:
Accounts payable	43,914	51,180
Accrued payroll	24,194	23,983
Accruals and other current liabilities	38,649	34,979
Deferred income taxes	44	44
Income tax payable	4,088	12,963
Current portion of long-term debt	14,532	16,924
Total current liabilities	125,421	140,073
Long-term debt - less current portion and net of unaccreted discount	237,062	261,348
Deferred income taxes	53,822	53,813
Pension liabilities	7,565	8,025
Long-term taxes payable	762	1,038
Other long-term liabilities	844	1,055
Redeemable non-controlling interest	979	991
Commitment and Contingencies (See Note 17)
Stockholders’ equity:
Common stock ($0.001 par value, 90,000,000 shares authorized, 26,515,072 and 26,819,795 issued and outstanding at September 30, 2014 and December 31, 2013, respectively)	27	27
Additional paid-in capital	142,841	154,471
Retained earnings	155,198	133,231
Accumulated other comprehensive loss	(29,724)	(18,396)
Total stockholders’ equity	268,342	269,333
Total liabilities, redeemable non-controlling interest and stockholders’ equity	$ 694,797	$ 735,676

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Inventories - Additional Information (Detail) (USD $)	9 Months Ended			3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014 Inventory Valuation by LIFO Method [Member]	Dec. 31, 2013 Inventory Valuation by LIFO Method [Member]	Sep. 28, 2013 Inventory Valuation Provision [Member]	Sep. 28, 2013 Inventory Valuation Provision [Member]
Inventory [Line Items]
Portion of total inventory valued by LIFO method		6.70%	7.50%
Inventory, LIFO Reserve, Effect on Income, Net	$ 300,000
Provision for valuation of sales component				$ 0	$ 0

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013
Cash flows from operating activities
Net Income	$ 31,129	$ 32,993
Adjustments to reconcile net income to net cash flows:
Depreciation	17,238	16,047
Amortization of intangible assets	6,884	4,882
Amortization of deferred financing costs	699	646
Loss on foreign currency, net	461	593
Amortization of inventory fair value adjustment	2,264	0
Accretion of debt discount, net	2,527	2,331
Loss on disposal of fixed assets	195	0
Provision for deferred taxes	1,350	0
Stock based compensation	2,633	2,397
Changes in assets and liabilities:
Trade receivables	(11,452)	(8,756)
Inventories	5,276	3,451
Accounts payable and accrued liabilities	(6,682)	9,197
Other current assets and liabilities	9,704	254
Other operating assets and liabilities	(188)	(1,866)
Net cash from operating activities	62,038	62,169
Cash flows from investing activities
Purchase of property, plant and equipment	(16,464)	(14,361)
Proceeds from Sale of Land Held-for-use	274	0
Payments to Acquire Businesses, Net of Cash Acquired	(15,092)	0
Net cash from investing activities	(31,282)	(14,361)
Cash flows from financing activities
Payments on term loan facility	(21,478)	(3,750)
Payments on revolving credit facility	(9,190)	(54,304)
Dividend payments	(8,644)	(4,852)
Proceeds from equipment loan	2,245	3,550
Payment of equipment and working capital notes	(1,028)	(1,100)
Borrowing under revolving credit facility	5,000	0
Shares surrendered for tax withholding	(1,447)	(1,166)
Payments on mortgages and other	(435)	(540)
Purchases of common stock under share repurchase program	(12,816)	0
Net cash from financing activities	(47,793)	(62,162)
Effect of exchange rate changes on cash and cash equivalents	(3,573)	(528)
Net change in cash and cash equivalents	(20,610)	(14,882)
Cash and cash equivalents at beginning of year	63,604	85,154
Cash and cash equivalents at end of period	42,994	70,272
Cash paid during the period for:
Interest	6,504	5,561
Income taxes	$ 23,333	$ 15,156

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Stockholders' Equity - Company's Unvested Restricted Stock Grants (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares unvested, beginning balance	149,635
Shares granted	132,441
Shares for which restrictions lapsed	(122,898)
Shares unvested, ending balance	159,178
Weighted-average grant date fair value, beginning balance	$ 23.02
Weighted-average grant date fair value, Shares granted	$ 33.56
Weighted-average grant date fair value, Shares for which restrictions lapsed	$ 29.50
Weighted-average grant date fair value, ending balance	$ 28.53

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Basis of Presentation - Additional Information (Detail)	Jul. 11, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of ownership acquired	85.00%

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Restructuring - Summary of Total Restructuring Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Restructuring Cost and Reserve [Line Items]
Total cash expenses	$ 1,643	$ 97	$ 1,643	$ 655
2012 Altra Plan [Member]
Restructuring Cost and Reserve [Line Items]
Severance	1,161	137	1,161	653
Other	482	(40)	482	2
Total cash expenses	$ 1,643	$ 97	$ 1,643	$ 655

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Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables)

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss) by Component

The following is a reconciliation of changes in Accumulated Other Comprehensive Income (Loss) by Component for the periods presented:

	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension Plans			Cumulative Foreign Currency Translation Adjustment			Total
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2013	$	—	$	(4,607	)	$	(18,796	)	$	(23,403	)
Net current-period Other Comprehensive Income (Loss)	191		—			(46		)	145
Accumulated Other Comprehensive Income (Loss) by Component, Balance at September 28, 2013	$	191	$	(4,607	)	$	(18,842	)	$	(23,258	)

	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension Plans			Cumulative Foreign Currency Translation Adjustment			Total
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2014	$	135	$	(3,133	)	$	(15,398	)	$	(18,396	)
Net current-period Other Comprehensive Income (Loss)	109		—			(11,437		)	(11,328		)
Accumulated Other Comprehensive Income (Loss) by Component, Balance at September 30, 2014	$	244	$	(3,133	)	$	(26,835	)	$	(29,724	)

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Fair Value of Financial Instruments - Additional Information (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest on notes	2.75%	2.75%
Carrying amount of financial instruments	$ 85,000,000	$ 85,000,000
Estimated fair value of financial instruments	102,800,000	116,500,000
Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 300,000	$ 16,600,000

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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2014

Svendborg [Member]

Preliminary Purchase Price Allocation as of Acquisition Date

	At Acquisition Date		Measurement Period Adjustments			At Acquisition Date (As Adjusted)
Purchase price, excluding acquisition costs of approximately $2.5 million	$	102,096	$	—		$	102,096
Cash and cash equivalents	7,483		—			7,483
Trade receivables	21,575		(809		)	20,766
Inventories	25,452		(224		)	25,228
Prepaid and other	5,511		(76		)	5,435
Property, plant and equipment	12,216		—			12,216
Other assets	1,133		—			1,133
Intangible assets	48,893		—			48,893
Total assets acquired	122,263		(1,109		)	121,154
Accounts payable	4,833		—			4,833
Accrued expenses and other current liabilities	9,620		168			9,788
Taxes payable	10,254		—			10,254
Deferred tax liability	11,483		—			11,483
Total liabilities assumed	36,190		168			36,358
Net assets acquired	86,073		(1,277		)	84,796
Excess of purchase price over fair value of net assets acquired	$	16,023	$	1,277		$	17,300

Amounts Recorded as Intangible Assets

Proforma Amount on Acquisition Occurred

These pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the period or that may be obtained in the future.

	Pro Forma (unaudited)			Pro Forma (unaudited)
	Quarter Ended			Year to Date Period Ended
		September 28, 2013		September 30, 2014		September 28, 2013
Total revenues		$	201,405	$	633,762	$	615,885
Net income attributable to Altra Industrial Motion Corp.		$	12,777	$	31,852	$	39,799
Basic earnings per share:
Net income attributable to Altra Industrial Motion Corp.		$	0.48	$	1.19	$	1.49
Diluted earnings per share:
Net income attributable to Altra Industrial Motion Corp.		$	0.48	$	1.16	$	1.48

GuardianAcquisition [Member]

Amounts Recorded as Intangible Assets

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Subsequent Events - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended		0 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013	Jan. 02, 2015 Subsequent Event [Member]	Dec. 18, 2014 Subsequent Event [Member]	Oct. 22, 2014 Subsequent Event [Member]
Subsequent Event [Line Items]
Dividend declared date							Oct. 22, 2014
Dividend per share	$ 0.12	$ 0.10	$ 0.34	$ 0.28			$ 0.12
Dividend payable date					Jan. 02, 2015
Dividend record date						Dec. 18, 2014

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Consolidated Statement of Stockholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock [Member]	Additional Paid in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) [Member]	Redeemable Non-Controlling Interest [Member]
Beginning balance at Dec. 31, 2012	$ 232,012	$ 27	$ 152,188	$ 103,200	$ (23,403)	$ 1,239
Beginning balance, shares at Dec. 31, 2012		26,724,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation and vesting of restricted stock	1,231		1,231
Stock-based compensation and vesting of restricted stock, Shares		94,000
Net income attributable to Altra Industrial Motion Corp.	33,070			33,070
Net loss attributable to non-controlling interest	77					(77)
Dividends declared	(7,471)			(7,471)
Change in fair value of interest rate swap	191				191
Cumulative foreign currency translation adjustment	(46)				(46)
Ending balance at Sep. 28, 2013	258,910	27	153,419	128,722	(23,258)	1,041
Ending balance, shares at Sep. 28, 2013		26,818,000
Beginning balance at Dec. 31, 2013	269,333	27	154,471	133,231	(18,396)	991
Beginning balance, shares at Dec. 31, 2013		26,820,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation and vesting of restricted stock	1,186		1,186
Stock-based compensation and vesting of restricted stock, Shares		78,000
Net income attributable to Altra Industrial Motion Corp.	31,108			31,108
Net loss attributable to non-controlling interest	(21)					21
Dividends declared	(9,141)			(9,141)
Change in fair value of interest rate swap	109				109
Cumulative foreign currency translation adjustment	(11,437)				(11,437)	(33)
Repurchase of common stock	(12,816)		(12,816)
Repurchase of common stock, shares		(383,000)
Ending balance at Sep. 30, 2014	$ 268,342	$ 27	$ 142,841	$ 155,198	$ (29,724)	$ 979
Ending balance, shares at Sep. 30, 2014		26,515,000

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,761	$ 2,245
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	26,761,559	26,819,795
Common stock, shares outstanding	26,761,559	26,819,795

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Interest Rate Swap

In April 2013, the Company entered into an interest rate swap agreement designed to fix the variable interest rate payable on a portion of its outstanding borrowings, currently $85.0 million, under the Credit Agreement, at 0.626% exclusive of the margin under the Former Credit Agreement. The interest rate swap agreement and its terms are also applicable to the variable interest rate borrowings under the current Credit Agreement.

The interest rate swap agreement was designed to manage exposure to interest rates on the Company’s variable rate indebtedness. The Company recognizes all derivatives on its balance sheet at fair value. The Company has designated its interest rate swap agreement, which is forward-dated, as a cash flow hedge. Changes in the fair value of the swap are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swap will be reported by the Company in interest expense. There was no ineffectiveness associated with the swap during the quarter ended September 30, 2014, nor was any amount excluded from ineffectiveness testing for the period.

The estimated fair value of the Company’s interest rate swap agreement with certain financial institutions (“Interest Rate Swap”) was based on inputs other than quoted prices that are observable for the Interest Rate Swap (level 2). Inputs include present value of fixed and projected floating rate cash flows over the term of the swap contract.

The fair value of the swap recognized in other non-current assets, net and in other comprehensive income (loss) is as follows:

						Fair Value
	Notional					September 30, 2014		December 31, 2013
Effective Date	Amount		Fixed Rate		Maturity
April 30, 2013	$	85,000	0.626	%	November 30, 2016	$	243	$	213

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Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 23, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Entity Registrant Name	ALTRA INDUSTRIAL MOTION CORP.
Entity Central Index Key	0001374535
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		26,635,336

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Concentrations of Credit, Segment Data and Workforce

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Concentrations of Credit, Segment Data and Workforce

Concentrations of Credit, Segment Data and Workforce

Financial instruments, which are potentially subject to counter party performance and concentrations of credit risk, consist primarily of trade accounts receivable. The Company manages these risks by conducting credit evaluations of customers prior to delivery or commencement of services. When the Company enters into a sales contract, collateral is normally not required from the customer. Payments are typically due within 30 days of billing. An allowance for potential credit losses is maintained, and losses have historically been within management’s expectations. No customer represented greater than 10% of total sales for each of the year to date periods ended September 30, 2014 and September 28, 2013.

The Company is also subject to counter party performance risk of loss in the event of non-performance by counterparties to financial instruments, such as cash and investments. Cash and cash equivalents are held by well-established financial institutions and invested in AAA rated mutual funds. The Company is exposed to swap counterparty credit risk with financial institutions. The Company’s counterparty is a well-established financial institution.

The Company has three operating segments that are regularly reviewed by our chief operating decision maker. Each of these operating segments represents a unit that produces mechanical power transmission products. The Company aggregates all of the operating segments into one reportable segment. The three operating segments are expected to have similar long-term average gross profit margins. All of our products are sold by one global sales force and we have one global marketing function with the exception of the newly acquired Svendborg business for which the Company is in the process of integrating sales and marketing activities. Strategic markets and industries are determined for the entire company and then targeted by the brands. All of our operating segments have common manufacturing and production processes. Each operating segment includes a machine shop which uses similar equipment and manufacturing techniques. Each of our operating segments uses common raw materials, such as aluminum, steel and copper. The materials are purchased and procurement contracts are negotiated by one global purchasing function.

The Company serves the general industrial market by selling to original equipment manufacturers (“OEM”) and distributors. Our OEM and distributor customers serve the general industrial market. Resource allocation decisions such as capital expenditure requirements and headcount requirements are made at a consolidated level and allocated to the individual operating segments.

Discrete financial information is not available by product line at the level necessary for management to assess performance or make resource allocation decisions.

Net sales to third parties by geographic region are as follows:

	Net Sales				Net Sales
	Quarter Ended				Year to Date Ended
	September 30, 2014		September 28, 2013		September 30, 2014		September 28, 2013
North America (primarily U.S.)	$	117,796	$	109,810	$	370,944	$	343,844
Europe	64,116		52,315		199,196		160,895
Asia and other	20,608		13,318		57,716		36,949
Total	$	202,520	$	175,443	$	627,856	$	541,688

Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates.

The net assets of the Company’s foreign subsidiaries at September 30, 2014 and December 31, 2013 were $143.2 million and $138.7 million, respectively.

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Income Statement [Abstract]
Net sales	$ 202,520	$ 175,443	$ 627,856	$ 541,688
Cost of sales	140,187	121,785	437,257	378,112
Gross profit	62,333	53,658	190,599	163,576
Operating expenses:
Selling, general and administrative expenses	39,067	31,672	117,828	96,742
Research and development expenses	3,818	3,002	11,719	9,150
Restructuring costs	1,643	97	1,643	655
Total operating expenses	44,528	34,771	131,190	106,547
Income from operations	17,805	18,887	59,409	57,029
Other non-operating income and expense:
Interest expense, net	3,000	2,567	8,991	7,830
Other non-operating expense (income), net	(313)	686	446	783
Total other non-operating income expense, net	2,687	3,253	9,437	8,613
Income before income taxes	15,118	15,634	49,972	48,416
Provision for income taxes	8,170	5,176	18,843	15,423
Net income	6,948	10,458	31,129	32,993
Net (income) loss attributable to non-controlling interest	(2)	43	(21)	77
Net income attributable to Altra Industrial Motion Corp.	$ 6,946	$ 10,501	$ 31,108	$ 33,070
Weighted average shares, basic (in shares)	26,648	26,780	26,785	26,750
Weighted average shares, diluted (in shares)	27,334	26,836	27,557	26,852
Net income per share:
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share)	$ 0.26	$ 0.39	$ 1.16	$ 1.24
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share)	$ 0.25	$ 0.39	$ 1.13	$ 1.23
Cash dividend declared (in usd per share)	$ 0.12	$ 0.10	$ 0.34	$ 0.28

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Net Income per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Net Income per Share

Net Income per Share

Basic earnings per share is based on the weighted average number of shares of common stock outstanding, and diluted earnings per share is based on the weighted average number of shares of common stock outstanding and all potentially dilutive common stock equivalents outstanding. Common stock equivalents are included in the per share calculations when the effect of their inclusion is dilutive.

The following is a reconciliation of basic to diluted net income per share:

	Quarter Ended				Year to Date Ended
	September 30, 2014		September 28, 2013		September 30, 2014		September 28, 2013
Net income attributable to Altra Industrial Motion Corp.	$	6,946	$	10,501	$	31,108	$	33,070
Shares used in net income per common share - basic	26,648		26,780		26,785		26,750
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock	626		—		687		—
Incremental shares of unvested restricted common stock	60		56		85		102
Shares used in net income per common share - diluted	27,334		26,836		27,557		26,852
Earnings per share:
Basic net income attributable to Altra Industrial Motion Corp.	$	0.26	$	0.39	$	1.16	$	1.24
Diluted net income attributable to Altra Industrial Motion Corp.	$	0.25	$	0.39	$	1.13	$	1.23

During the quarter and year to date periods ended September 30, 2014, the average price of the Company’s common stock exceeded the current conversion price of the Company’s Convertible Notes resulting in additional shares being included in the shares used in net income per common share in the diluted earnings per share calculation above (See Note 12).

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Changes in Accumulated Other Comprehensive Income (Loss) by Component

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Changes in Accumulated Other Comprehensive Income (Loss) by Component

The following is a reconciliation of changes in Accumulated Other Comprehensive Income (Loss) by Component for the periods presented:

	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension Plans			Cumulative Foreign Currency Translation Adjustment			Total
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2013	$	—	$	(4,607	)	$	(18,796	)	$	(23,403	)
Net current-period Other Comprehensive Income (Loss)	191		—			(46		)	145
Accumulated Other Comprehensive Income (Loss) by Component, Balance at September 28, 2013	$	191	$	(4,607	)	$	(18,842	)	$	(23,258	)

	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension Plans			Cumulative Foreign Currency Translation Adjustment			Total
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2014	$	135	$	(3,133	)	$	(15,398	)	$	(18,396	)
Net current-period Other Comprehensive Income (Loss)	109		—			(11,437		)	(11,328		)
Accumulated Other Comprehensive Income (Loss) by Component, Balance at September 30, 2014	$	244	$	(3,133	)	$	(26,835	)	$	(29,724	)

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Net Income per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Reconciliation of Basic to Diluted Net Income per Share

The following is a reconciliation of basic to diluted net income per share:

	Quarter Ended				Year to Date Ended
	September 30, 2014		September 28, 2013		September 30, 2014		September 28, 2013
Net income attributable to Altra Industrial Motion Corp.	$	6,946	$	10,501	$	31,108	$	33,070
Shares used in net income per common share - basic	26,648		26,780		26,785		26,750
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock	626		—		687		—
Incremental shares of unvested restricted common stock	60		56		85		102
Shares used in net income per common share - diluted	27,334		26,836		27,557		26,852
Earnings per share:
Basic net income attributable to Altra Industrial Motion Corp.	$	0.26	$	0.39	$	1.16	$	1.24
Diluted net income attributable to Altra Industrial Motion Corp.	$	0.25	$	0.39	$	1.13	$	1.23

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Restructuring

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

In the quarter ended December 31, 2012, the Company adopted a restructuring plan (“2012 Altra Plan”) as a result of continued sluggish demand in Europe and general global economic conditions. The actions taken pursuant to the 2012 Altra Plan included reducing headcount and limiting discretionary spending to improve profitability in Europe. The Company did not record any restructuring charges associated with the 2012 Altra Plan in the year to date period ended September 30, 2014.

In the quarter ended September 30, 2014, the Company adopted a restructuring plan (“2014 Altra Plan”) as a result of weak demand in Europe and to make certain adjustments to its existing sales force to reflect the Company's expanding global footprint. The actions taken pursuant to the 2014 Altra Plan included reducing headcount and limiting discretionary spending to improve profitability.

The Company’s total restructuring expense, by major component for the quarter and year to date periods ended September 30, 2014 and September 28, 2013 was as follows:

	Quarter Ended					Year to Date Ended
	September 30, 2014		September 28, 2013			September 30, 2014		September 28, 2013
	2014 Altra Plan		2012 Altra Plan			2014 Altra Plan		2012 Altra Plan
Severance	$	1,161	$	137		$	1,161	$	653
Other	482		(40		)	482		2
Total cash expenses	$	1,643	$	97		$	1,643	$	655

The following is a reconciliation of the accrued restructuring cost:

	All Plans
Balance at January 1, 2014	$	429
Restructuring expense incurred	1,643
Cash payments	(933		)
Balance at September 30, 2014	$	1,139

The total restructuring reserve as of September 30, 2014 relates to severance costs to be paid to employees and is recorded in accruals and other current liabilities on the accompanying condensed consolidated balance sheet.

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The estimated effective income tax rates recorded for the year to date periods ended September 30, 2014 and September 28, 2013, were based upon management’s best estimate of the effective tax rate for the entire year.

The Company and its subsidiaries file a consolidated federal income tax return in the United States as well as consolidated and separate income tax returns in various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in all of these jurisdictions. With the exception of certain foreign jurisdictions, the Company is no longer subject to income tax examinations for the tax years prior to 2010.

Additionally, the Company has indemnification agreements with the sellers of the Guardian, Svendborg, Bauer and Lamiflex entities that generally provide for reimbursement to the Company for payments made in satisfaction of tax liabilities relating to pre-acquisition periods.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense in the condensed consolidated statements of operations. At September 30, 2014 and December 31, 2013, the Company had $0.2 million and $0.4 million of accrued interest and penalties, respectively.

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Stockholders' Equity Dividends (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014
Dividends Payable [Line Items]
Dividends Payable	$ 3.2

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Inventories

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are generally stated at the lower of cost or market, using the first-in, first-out (“FIFO”) method. Market is defined as net realizable value. Inventories located at certain subsidiaries are stated at the lower of cost or market, principally using the last-in, first-out (“LIFO”) method. Inventories at September 30, 2014 and December 31, 2013 consisted of the following:

	September 30, 2014		December 31, 2013
Raw materials	$	40,545	$	56,824
Work in process	16,352		18,432
Finished goods	78,486		68,409
	$	135,383	$	143,665

Approximately 6.7% and 7.5% of total inventories were valued using the LIFO method as of September 30, 2014 and December 31, 2013, respectively. The Company recorded a $0.3 million adjustment as a component of cost of sales to value the inventory on a LIFO basis for the year to date period ended September 30, 2014. There was no provision recorded as a component of cost of sales to value the inventory on a LIFO basis for the quarter and year to date periods ended September 28, 2013.

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Warranty Costs

9 Months Ended

Sep. 30, 2014

Guarantees [Abstract]

Warranty Costs

Warranty Costs

The contractual warranty period generally ranges from 3 months to 2 years with certain warranties extending for longer periods based on the product and application of the product and are recorded in accruals and other current liabilities on the Company's balance sheet. Changes in the carrying amount of accrued product warranty costs for each of the year to date periods ended September 30, 2014 and September 28, 2013 are as follows:

	September 30, 2014			September 28, 2013
Balance at beginning of period	$	8,739		$	5,625
Accrued current period warranty expense	1,314			1,758
Payments	(1,900		)	(1,743		)
Balance at end of period	$	8,153		$	5,640

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Pension and Other Employee Benefits

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Employee Benefits

Pension and Other Employee Benefits

Defined Benefit (Pension)

The Company sponsors various defined benefit (pension) plans for certain, primarily unionized, active employees (those in the employment of the Company at, and certain employees hired since, November 30, 2004).

The following tables represent the reconciliation of the net periodic benefit cost of the defined benefit (pension) plans as of September 30, 2014 and September 28, 2013:

	Quarter Ended
	Pension Benefits
	September 30, 2014			September 28, 2013
Service cost	$	38		$	37
Interest cost	273			246
Expected return on plan assets	(269		)	(267		)
Amortization of net gain	27			41
Net periodic benefit cost (income)	$	69		$	57

	Year to Date Ended
	Pension Benefits
	September 30, 2014			September 28, 2013
Service cost	$	114		$	113
Interest cost	819			738
Expected return on plan assets	(807		)	(801		)
Amortization of net gain	81			125
Net periodic benefit cost (income)	$	207		$	175

The Company made $0.2 million in contributions during the year to date period ended September 30, 2014. The Company does not have any future required contributions during the remainder of the year ended December 31, 2014.

Partial Pension Settlement

During October 2014, the Company initiated a plan to offer lump-sum settlements to vested terminated participants of its domestic pension plan.  Participants were notified of the settlement offers during October 2014.  The acceptance of these offers will trigger partial settlement accounting with a maximum charge to earnings of approximately $0.8 million.  The funds to provide for these settlements will be paid from plan assets.

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Concentrations of Credit, Segment Data and Workforce - Net Sales to Third Parties by Geographic Region (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Concentration Risk [Line Items]
Net sales	$ 202,520	$ 175,443	$ 627,856	$ 541,688
North America (Primarily U.S.) [Member]
Concentration Risk [Line Items]
Net sales	117,796	109,810	370,944	343,844
Europe [Member]
Concentration Risk [Line Items]
Net sales	64,116	52,315	199,196	160,895
Asia and Other [Member]
Concentration Risk [Line Items]
Net sales	$ 20,608	$ 13,318	$ 57,716	$ 36,949

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Restructuring - Reconciliation of Accrued Restructuring Costs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Restructuring and Related Activities [Abstract]
Beginning Balance			$ 429
Restructuring expense incurred	1,643	97	1,643	655
Cash payments			(933)
Ending Balance	$ 1,139		$ 1,139

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Concentrations of Credit, Segment Data and Workforce - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended		9 Months Ended
	Sep. 30, 2014 Segment	Dec. 31, 2013	Sep. 30, 2014 Sales [Member] Customer	Sep. 28, 2013 Sales [Member] Customer
Concentration Risk [Line Items]
Sales contract payments due period	30 days
Maximum revenue percentage from any one customer			10.00%	10.00%
Number of customers representing over 10% of total sales			0	0
Number of operating segments	3
Number of reportable segments	1
Number of operating segments expected to have similar long-term average gross profit margins	3
Net assets of foreign subsidiaries	$ 143.2	$ 138.7

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Organization and Nature of Operations - Additional Information (Detail) (Brand [Member])	9 Months Ended
	Sep. 30, 2014 Country Product
Brand [Member]
Organization And Nature Of Business [Line Items]
Number of product lines	42
Number of countries in which the company has production facilities	11

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Accrued interest and penalties	$ 0.2	$ 0.4

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Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

On October 22, 2014, the Company declared a cash dividend of $0.12 per share for the quarter ended December 31, 2014, payable on January 2, 2015 to shareholders of record as of December 18, 2014.

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Goodwill

Changes to goodwill from January 1, through September 30, 2014 were as follows:

	2014
Gross goodwill balance as of January 1	$	136,149
Impact of changes in foreign currency	(3,048		)
Adjustment related to the impact of Guardian (See Note 6)	2,085
Measurement period adjustments related to acquisition of Svendborg (See Note 6)	1,277
Gross goodwill balance as of September 30,	136,463
Accumulated impairment as of January 1	(31,810		)
Impairment charge during the period	—
Accumulated impairment as of September 30,	(31,810		)
Net goodwill balance September 30,	$	104,653

Other Intangible Assets

Other intangible assets as of September 30, 2014 and December 31, 2013 consisted of the following:

	September 30, 2014					December 31, 2013
	Cost			Accumulated Amortization		Cost			Accumulated Amortization
Other intangible assets
Intangible assets not subject to amortization:
Tradenames and trademarks	$	43,635		$	—	$	42,985		$	—
Intangible assets subject to amortization:
Customer relationships	126,364			49,400		118,914			42,645
Product technology and patents	6,062			5,848		6,062			5,719
Impact of changes in foreign currency	(5,283		)	—		(829		)	—
Total intangible assets	$	170,778		$	55,248	$	167,132		$	48,364

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Warranty Costs - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2014
Maximum [Member]
Guarantor Obligations [Line Items]
Product warranty period	2 years
Minimum [Member]
Guarantor Obligations [Line Items]
Product warranty period	3 months

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Acquisitions - Preliminary Purchase Price Allocation as of Acquisition Date (Detail) (USD $)	0 Months Ended				0 Months Ended
	Dec. 17, 2013 Svendborg [Member]	Dec. 17, 2013 Svendborg [Member]	Dec. 17, 2013 At Acquisition Date [Member] Svendborg [Member]	Dec. 17, 2013 Measurement Period Adjustments [Member] Svendborg [Member]	Jul. 01, 2014 GuardianAcquisition [Member]	Jul. 01, 2014 GuardianAcquisition [Member]
Business Acquisition [Line Items]
Business acquisition cash transfered					$ 17,100,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets						9,200,000
Purchase price, excluding acquisition costs of approximately $2.5 million		102,096,000	102,096,000	0
Cash and cash equivalents		7,483,000	7,483,000	0		2,012,000
Trade receivables		20,766,000	21,575,000	(809,000)		4,000,000
Inventories		25,228,000	25,452,000	(224,000)
Prepaid and other		5,435,000	5,511,000	(76,000)
Property, plant and equipment		12,216,000	12,216,000	0
Other assets		1,133,000	1,133,000	0
Intangible assets		48,893,000	48,893,000	0
Total assets acquired		121,154,000	122,263,000	(1,109,000)
Accounts payable		4,833,000	4,833,000	0
Accrued expenses and other current liabilities		9,788,000	9,620,000	168,000		200,000
Taxes payable		10,254,000	10,254,000	0
Deferred tax liability		11,483,000	11,483,000	0
Total liabilities assumed		36,358,000	36,190,000	168,000
Net assets acquired		84,796,000	86,073,000	(1,277,000)
Excess of purchase price over fair value of net assets acquired		17,300,000	16,023,000	1,277,000		2,085,000
Approximate excluded acquisition costs of purchase price	$ 2,500,000				$ 400,000

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Condensed Consolidated Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Statement of Comprehensive Income [Abstract]
Net Income	$ 6,948	$ 10,458	$ 31,129	$ 32,993
Other Comprehensive income (loss):
Foreign currency translation adjustment	(12,341)	(6,727)	(11,437)	(46)
Change in fair value of interest rate swap, net of tax	229	(346)	109	191
Other comprehensive income (loss)	(12,112)	(7,073)	(11,328)	145
Comprehensive (loss) income	(5,164)	3,385	19,801	33,138
Comprehensive (income) loss attributable to noncontrolling interest	105	43	12	77
Comprehensive income (loss) attributable to Altra Industrial Motion Corp.	$ (5,059)	$ 3,428	$ 19,813	$ 33,215

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities approximate fair value. Debt under the Company’s Credit Agreement including a Term Loan Facility and a Revolving Credit Facility approximate the fair values due to the variable rate nature at current market rates.

The carrying amount of the 2.75% Convertible Notes (the “Convertible Notes”) was $85 million at each of September 30, 2014 and December 31, 2013. The estimated fair value of the Convertible Notes at September 30, 2014 and December 31, 2013 was $102.8 million and $116.5 million, respectively, based on inputs other than quoted prices that are observable for the Convertible Notes (level 2).

Included in cash and cash equivalents as of September 30, 2014 and December 31, 2013 are money market fund investments of $0.3 million and $16.6 million, respectively, which are reported at fair value based on quoted market prices for such investments (level 1).

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Stockholders' Equity - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended		0 Months Ended			9 Months Ended
	May 31, 2014	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013	Dec. 18, 2014 Subsequent Event [Member]	Oct. 22, 2014 Subsequent Event [Member]	Oct. 02, 2014 Subsequent Event [Member]	Sep. 30, 2014 Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividend		$ 0.12	$ 0.10	$ 0.34	$ 0.28		$ 0.12
Payments of Ordinary Dividends, Common Stock								$ 3,200,000
Payments of Dividends				8,644,000	4,852,000
Dividend paid		3,200,000		3,200,000
Dividend paid date								Oct. 02, 2014
Dividends payable date of record						Dec. 18, 2014
Stock repurchase program, authorized amount	50,000,000
Repurchase of common stock, shares		300,984
Treasury stock acquired, average cost per share		$ 32.91
Stock repurchase program, remaining authorized repurchase amount		37,200,000
Restricted shares for vesting period									5 years
Compensation expense		800,000	900,000	2,600,000	2,400,000
Unrecognized compensation cost		4,200,000		4,200,000
Weighted average remaining period				3 years
Fair market value of the shares		$ 600,000

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Warranty Costs (Tables)

9 Months Ended

Sep. 30, 2014

Guarantees [Abstract]

Changes in Carrying Amount of Accrued Product Warranty Costs

Changes in the carrying amount of accrued product warranty costs for each of the year to date periods ended September 30, 2014 and September 28, 2013 are as follows:

	September 30, 2014			September 28, 2013
Balance at beginning of period	$	8,739		$	5,625
Accrued current period warranty expense	1,314			1,758
Payments	(1,900		)	(1,743		)
Balance at end of period	$	8,153		$	5,640

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Net Income per Share - Reconciliation of Basic to Diluted Net Income per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 28, 2013	Sep. 30, 2014	Sep. 28, 2013
Earnings Per Share [Abstract]
Net income attributable to Altra Industrial Motion Corp.	$ 6,946	$ 10,501	$ 31,108	$ 33,070
Shares used in net income per common share - basic	26,648	26,780	26,785	26,750
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock	626	0	687	0
Incremental shares of unvested restricted common stock	60	56	85	102
Shares used in net income per common share - diluted	27,334	26,836	27,557	26,852
Earnings per share:
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share)	$ 0.26	$ 0.39	$ 1.16	$ 1.24
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share)	$ 0.25	$ 0.39	$ 1.13	$ 1.23

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

General Litigation

The Company is involved in various pending legal proceedings arising out of the ordinary course of business. These proceedings primarily involve commercial claims, product liability claims, personal injury claims, and workers’ compensation claims. None of these legal proceedings are expected to have a material adverse effect on the results of operations, cash flows, or financial condition of the Company. With respect to these proceedings, management believes that the Company will prevail, has adequate insurance coverage or has established appropriate reserves to cover potential liabilities. Any costs that management estimates may be paid related to these proceedings or claims are accrued when the liability is considered probable and the amount can be reasonably estimated. There can be no assurance, however, as to the ultimate outcome of any of these matters, and if all or substantially all of these legal proceedings were to be determined adversely to the Company, there could be a material adverse effect on the results of operations, cash flows, or financial condition of the Company. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. There were no material amounts accrued in the accompanying condensed consolidated balance sheets for potential litigation as of September 30, 2014 or December 31, 2013. For matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses, individually and in the aggregate, will not have a material effect on our consolidated financial statements.

The Company also risks exposure to product liability claims in connection with products it has sold and those sold by businesses that the Company acquired. Although in some cases third parties have retained responsibility for product liability claims relating to products manufactured or sold prior to the acquisition of the relevant business and in other cases the persons from whom the Company has acquired a business may be required to indemnify the Company for certain product liability claims subject to certain caps or limitations on indemnification, the Company cannot assure that those third parties will in fact satisfy their obligations with respect to liabilities retained by them or their indemnification obligations. If those third parties become unable to or otherwise do not comply with their respective obligations including indemnity obligations, or if certain product liability claims for which the Company is obligated were not retained by third parties or are not subject to these indemnities, the Company could become subject to significant liabilities or other adverse consequences. Moreover, even in cases where third parties retain responsibility for product liability claims or are required to indemnify the Company, significant claims arising from products that have been acquired could have a material adverse effect on the Company’s ability to realize the benefits from an acquisition, could result in the reduction of the value of goodwill that the Company recorded in connection with an acquisition, or could otherwise have a material adverse effect on the Company’s business, financial condition, or operations.