RESTRUCTURING ACTIVITIES

9 Months Ended

Oct. 02, 2021

Restructuring and Related Activities [Abstract]

The Company incurred restructuring and restructuring-related costs on projects during fiscal 2021 and 2020. Restructuring costs include employee termination and plant relocation costs. Restructuring-related costs include costs directly associated with actions resulting from the Company's simplification initiatives, such as asset write-downs or accelerated depreciation due to shortened useful lives in connection with site closures, discretionary employment benefit costs and other facility rationalization costs. Restructuring costs for employee termination expenses are generally required to be accrued over the employees' remaining service period while restructuring costs for plant relocation costs and restructuring-related costs are generally required to be expensed as incurred.

The following table presents a reconciliation of provisions and payments for the restructuring projects for the three and nine months ended October 2, 2021 and September 26, 2020 (in millions):


	Three Months Ended				Nine Months Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Beginning Balance	$	2.5	$	2.9	$	2.0	$	0.9
Provision	2.2		5.8		5.4		18.7
Less: Payments/ Other	3.1		7.7		5.8		18.6
Ending Balance	$	1.6	$	1.0	$	1.6	$	1.0

The following table presents a reconciliation of restructuring and restructuring-related costs for restructuring projects for the three and nine months ended October 2, 2021 and September 26, 2020, respectively (in millions):


	Three Months Ended
	October 2, 2021						September 26, 2020
Restructuring Costs:	Cost of Sales		Operating Expenses		Total		Cost of Sales		Operating Expenses		Total
Employee Termination Expenses	$	0.2	$	0.2	$	0.4	$	1.5	$	0.5	$	2.0
Facility Related Costs	1.5		—		1.5		2.5		1.6		4.1
Other Expenses	0.2		0.1		0.3		—		(0.3)		(0.3)
Total Restructuring Costs	$	1.9	$	0.3	$	2.2	$	4.0	$	1.8	$	5.8

	Nine Months Ended
	October 2, 2021						September 26, 2020
Restructuring Costs:	Cost of Sales		Operating Expenses		Total		Cost of Sales		Operating Expenses		Total
Employee Termination Expenses	$	0.6	$	0.8	$	1.4	$	4.4	$	3.5	$	7.9
Facility Related Costs	3.1		0.3		3.4		8.4		2.4		10.8
Other Expenses	0.5		0.1		0.6		0.3		(0.3)		—
Total Restructuring Costs	$	4.2	$	1.2	$	5.4	$	13.1	$	5.6	$	18.7

The following table presents the allocation of restructuring and restructuring-related costs by segment for the three and nine months ended October 2, 2021 and September 26, 2020 (in millions):


Restructuring Costs - Three Months Ended	Total		Commercial Systems		Industrial Systems		Climate Solutions		Power Transmission Solutions
October 2, 2021	$	2.2	$	0.1	$	0.8	$	0.1	$	1.2
September 26, 2020	$	5.8	$	0.7	$	2.3	$	0.8	$	2.0

Restructuring Costs - Nine Months Ended	Total		Commercial Systems		Industrial Systems		Climate Solutions		Power Transmission Solutions
October 2, 2021	$	5.4	$	0.4	$	1.6	$	0.7	$	2.7
September 26, 2020	$	18.7	$	4.8	$	5.2	$	3.2	$	5.5

The Company's current restructuring activities are expected to continue. The Company expects to record aggregate future charges of approximately $4.2 million which includes $2.3 million of employee termination expenses and $1.9 million of facility related costs on approved projects. The Company anticipates total restructuring costs of approximately $16.0 million for fiscal 2021 excluding costs related to the Rexnord Transaction.