RESTRUCTURING ACTIVITIES

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

The Company incurred restructuring and restructuring-related costs on projects during fiscal 2022 and 2021. In conjunction with the Rexnord Transaction, the Company initiated a restructuring plan to achieve cost synergies from procurement, distribution efficiencies, footprint rationalization and other general cost savings measures. Restructuring costs include employee termination and plant relocation costs. Restructuring-related costs also 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 recognized when the severance liability is determined to be probable of being paid and reasonably estimable while plant relocation costs and 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 September 30, 2022 and October 2, 2021 (in millions):


	Three Months Ended				Nine Months Ended
	September 30, 2022		October 2, 2021		September 30, 2022		October 2, 2021
Beginning Balance	$	6.4	$	2.5	$	5.0	$	2.0
Provision	20.9		2.2		36.7		5.4
Less: Payments/ Other	13.0		3.1		27.4		5.8
Ending Balance	$	14.3	$	1.6	$	14.3	$	1.6

The following table presents a reconciliation of restructuring and restructuring-related costs for restructuring projects for the three and nine months ended September 30, 2022 and October 2, 2021, respectively (in millions):


	Three Months Ended
	September 30, 2022						October 2, 2021
Restructuring Costs:	Cost of Sales		Operating Expenses		Total		Cost of Sales		Operating Expenses		Total
Employee Termination Expenses	$	13.4	$	1.2	$	14.6	$	0.2	$	0.2	$	0.4
Facility Related Costs	5.9		0.1		6.0		1.5		—		1.5
Other Expenses	0.3		—		0.3		0.2		0.1		0.3
Total Restructuring Costs	$	19.6	$	1.3	$	20.9	$	1.9	$	0.3	$	2.2

	Nine Months Ended
	September 30, 2022						October 2, 2021
Restructuring Costs:	Cost of Sales		Operating Expenses		Total		Cost of Sales		Operating Expenses		Total
Employee Termination Expenses	$	19.6	$	3.8	$	23.4	$	0.6	$	0.8	$	1.4
Facility Related Costs	11.9		0.6		12.5		3.1		0.3		3.4
Other Expenses	0.4		0.4		0.8		0.5		0.1		0.6
Total Restructuring Costs	$	31.9	$	4.8	$	36.7	$	4.2	$	1.2	$	5.4

The following table presents the allocation of restructuring and restructuring-related costs by segment for the three and nine months ended September 30, 2022 and October 2, 2021 (in millions):


Restructuring Costs - Three Months Ended	Total		Commercial Systems		Industrial Systems		Climate Solutions		Motion Control Solutions
September 30, 2022	$	20.9	$	0.4	$	0.1	$	8.2	$	12.2
October 2, 2021	$	2.2	$	0.1	$	0.8	$	0.1	$	1.2

Restructuring Costs - Nine Months Ended	Total		Commercial Systems		Industrial Systems		Climate Solutions		Motion Control Solutions
September 30, 2022	$	36.7	$	1.4	$	0.4	$	8.9	$	26.0
October 2, 2021	$	5.4	$	0.4	$	1.6	$	0.7	$	2.7

The Company's current restructuring activities are expected to continue through 2023. The Company expects to record aggregate future charges of approximately $12.0 million in 2022. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in future periods in connection with these activities.