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Restructuring and other strategic initiatives
 9 Months Ended
Sep. 30, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and other strategic initiatives Restructuring and other strategic initiatives
Gates continues to undertake various restructuring and other strategic initiatives to drive increased productivity in all aspects of our operations. These actions include efforts to consolidate our manufacturing and distribution footprint, scale operations to current demand levels, streamline our selling, general and administrative (“SG&A”) back-office functions and relocate certain operations to lower cost locations.
Overall costs associated with our restructuring and other strategic initiatives have been recognized in the condensed consolidated statements as set forth below. Expenses incurred in relation to certain of these actions qualify as restructuring expenses under U.S. GAAP.
Three months endedNine months ended
(dollars in millions)
September 30,
2023		October 1,
2022		September 30,
2023		October 1,
2022
Restructuring expenses:
—Severance expenses$— $2.6 $4.4 $4.9 
—Non-severance labor and benefit expenses0.3 0.3 1.1 0.5 
—Consulting expenses0.8 0.7 1.7 1.1 
—Other net restructuring expenses 1.5 1.1 3.1 1.9 
2.6 4.7 10.3 8.4 
Restructuring expenses in asset impairments:
—Impairment of fixed and other assets0.1 0.5 0.1 1.1 
Restructuring expenses in cost of sales:
—Impairment of inventory0.1 — 0.1 0.3 
Total restructuring expenses$2.8 $5.2 $10.5 $9.8 
Expenses related to other strategic initiatives:
—Severance expenses included in cost of sales(0.1)— 0.4 — 
—Severance expenses included in SG&A— — 0.9 0.4 
Total expenses related to other strategic initiatives$(0.1)$— $1.3 $0.4 
Restructuring and other strategic initiatives during the three and nine months ended September 30, 2023 related primarily to severance and other non-labor costs related to relocating certain production activities in China, Mexico and Europe. During the three months ended September 30, 2023, we also incurred additional non-severance labor and benefit costs of $0.3 million related to relocation and integration of certain support functions into our regional shared service center in Europe. Other restructuring costs incurred during the three months ended September 30, 2023 related to legal and consulting expenses, as well as costs associated with prior period facility closures or relocations in several countries.
Restructuring and other strategic initiatives during the three and nine months ended October 1, 2022 related primarily to our ongoing European reorganization, including $2.2 million of labor and severance costs related to relocating certain production activities within Europe during the three months ended October 1, 2022, in addition to severance costs of $2.3 million during the nine months ended October 1, 2022 related to relocation and integration of certain support functions into our regional shared service center. We also incurred $1.4 million and $2.7 million of costs, respectively, during the three and nine months ended October 1, 2022 in relation to the suspension of our operations in Russia, which included severance costs of $0.7 million, an impairment of inventories of $0.3 million (recognized in cost of sales), and an impairment of fixed and other assets of $1.1 million (recognized in asset impairments) for the nine months ended October 1, 2022 . Other restructuring costs incurred during the period related to non-severance and other labor and benefit costs, prior period facility closures or relocations in several countries.
Restructuring activities
As indicated above, restructuring expenses, as defined under U.S. GAAP, form a subset of our total expenses related to restructuring and other strategic initiatives. These expenses include the impairment of inventory, which is recognized in cost of sales. Analyzed by segment, our restructuring expenses were as follows:
Three months endedNine months ended
(dollars in millions)
September 30,
2023		October 1,
2022		September 30,
2023		October 1,
2022
Power Transmission$1.5 $2.1 $7.2 $5.5 
Fluid Power1.3 3.1 3.3 4.3 
Continuing operations$2.8 $5.2 $10.5 $9.8 
The following summarizes the reserve for restructuring expenses for the nine months ended September 30, 2023 and October 1, 2022, respectively:
Nine months ended
(dollars in millions)
September 30,
2023		October 1,
2022
Balance as of the beginning of the period$7.5 $6.5 
Utilized during the period(11.1)(8.0)
Charge for the period10.5 8.5 
Released during the period(0.2)(0.1)
Foreign currency translation(0.1)(0.9)
Balance as of the end of the period$6.6 $6.0 
Restructuring reserves, which are expected to be utilized during 2023 and 2024, are included in the condensed consolidated balance sheet within the accrued expenses and other current liabilities line.