RESTRUCTURING ACTIVITIES

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

The Company incurred restructuring and restructuring-related costs on projects during three months ended March 31, 2023 and March 31, 2022. The Company has initiated restructuring plans 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 months ended March 31, 2023 and March 31, 2022:

	Three Months Ended
	March 31, 2023		March 31, 2022
Beginning Balance	$	15.1	$	5.0
Acquisition(1)	0.2		—
Provision	5.0		16.8
Less: Payments/ Other	10.2		7.3
Ending Balance	$	10.1	$	14.5

(1) Excludes $12.4 million of severance related to the Altra Transaction, which will be paid in the second quarter 2023.

The following table presents a reconciliation of restructuring and restructuring-related costs for restructuring projects for the three months ended March 31, 2023 and March 31, 2022, respectively:

	Three Months Ended
	March 31, 2023						March 31, 2022
Restructuring Costs:	Cost of Sales		Operating Expenses		Total		Cost of Sales		Operating Expenses		Total
Employee Termination Expenses	$	2.3	$	0.6	$	2.9	$	4.8	$	3.6	$	8.4
Facility Related Costs	0.9		—		0.9		8.0		0.4		8.4
Other Expenses	1.2		—		1.2		—		—		—
Total Restructuring Costs	$	4.4	$	0.6	$	5.0	$	12.8	$	4.0	$	16.8

The following table presents the allocation of restructuring and restructuring-related costs by segment for the three months ended March 31, 2023 and March 31, 2022:

Restructuring Costs - Three Months Ended	Total		Industrial Powertrain Solutions		Power Efficiency Solutions		Automation & Motion Control		Industrial Systems
March 31, 2023	$	5.0	$	(0.4)	$	4.7	$	0.5	$	0.2
March 31, 2022	$	16.8	$	14.3	$	1.0	$	1.5	$	—

The Company's current restructuring activities are expected to continue through 2023. The Company expects to record aggregate future charges of approximately $60 million in 2023. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in future periods in connection with these activities.