HELD FOR SALE, ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Asset and Liabilities Businesses Held for Sale

The assets and liabilities related to these businesses have been reclassified to Assets Held for Sale, Noncurrent Assets Held for Sale, Liabilities Held for Sale and Noncurrent Liabilities Held for Sale on the Company's Condensed Consolidated Balance Sheet as of September 30, 2023 as shown in the table below:

	September 30, 2023
Assets Held for Sale
Cash and Cash Equivalents	$	58.2
Trade Receivables, Less Allowances	97.6
Inventories	209.6
Prepaid Expenses and Other Current Assets	15.0
Total Current Assets Held for Sale	$	380.4
Net Property, Plant and Equipment	90.9
Operating Lease Assets	19.1
Goodwill	53.9
Intangible Assets, Net of Amortization	2.2
Other Noncurrent Assets	21.9
Loss on Assets Held for Sale	(112.7)
Total Noncurrent Assets Held for Sale	$	75.3
Liabilities Held for Sale
Accounts Payable	$	70.2
Accrued Compensation and Employee Benefits	12.8
Other Accrued Expenses	18.9
Current Operating Lease Liabilities	3.6
Total Current Liabilities Held for Sale	$	105.5
Deferred Income Taxes	4.6
Pension and Other Post Retirement Benefits	0.2
Noncurrent Operating Lease Liabilities	16.4
Other Noncurrent Liabilities	3.8
Total Noncurrent Liabilities Held for Sale	$	25.0

Schedule of Business Acquisitions

The preliminary purchase price of Altra consisted of the following:

	As of September 30, 2023
Cash paid for outstanding Altra Common Stock(1)	$	4,051.0
Stock based compensation(2)	23.1
Payment of Altra debt(3)	1,061.0
Pre-existing relationships(4)	(0.5)
Preliminary purchase price	$	5,134.6

(1) Cash paid for the common stock component of the preliminary purchase price was based on 65.3 million shares of outstanding Altra Common Stock as of March 27, 2023 at $62.00 per share, in accordance with the Altra Merger Agreement.

(2) Represents fair value of replacement equity-based awards and Company common stock issued in settlement of other Altra share based awards. The portion of the fair value attributable to pre-acquisition service was recorded as part of the consideration transferred in the Altra Transaction of which $17.3 million was paid in cash during the second quarter of 2023.

(3) Cash paid by the Company to settle (a) the term loan facility, (b) the revolving credit facility and (c) 95.28% of the 6.125% senior notes due 2026 of Stevens Holding Company, Inc., a wholly owned subsidiary of Altra (the "Altra Notes"). $18.1 million of the Altra Notes remained outstanding following the closing of the Altra Transaction. See Note 7 - Debt and Bank Credit Facilities for more information.

(4) Represents effective settlement of outstanding payables and receivables between the Company and Altra. No gain or loss was recognized on this settlement.

Schedule of Assets Acquired and Liabilities Assumed

The preliminary fair value and subsequent measurement period adjustments of the assets acquired and liabilities assumed were as follows:

	As Reported as of March 31, 2023		Measurement period adjustments		As of September 30, 2023
Cash and Cash Equivalents	$	259.1	$	—	$	259.1
Trade Receivables	258.1		(0.1)		258.0
Inventories	436.4		(47.4)		389.0
Prepaid Expenses and Other Current Assets	33.0		—		33.0
Property, Plant and Equipment	411.8		(4.3)		407.5
Intangible Assets	2,224.0		(82.0)		2,142.0
Deferred Income Tax Benefits	0.7		—		0.7
Operating Lease Assets	42.3		4.5		46.8
Other Noncurrent Assets	21.6		0.2		21.8
Accounts Payable	(183.2)		—		(183.2)
Accrued Compensation and Benefits	(66.1)		—		(66.1)
Other Accrued Expenses(1)	(145.7)		0.6		(145.1)
Current Operating Lease Liabilities	(12.5)		0.2		(12.3)
Current Maturities of Long-Term Debt	(0.4)		—		(0.4)
Long-Term Debt	(25.3)		—		(25.3)
Deferred Income Taxes	(560.7)		25.7		(535.0)
Pension and Other Post Retirement Benefits	(19.8)		—		(19.8)
Noncurrent Operating Lease Liabilities	(29.7)		0.7		(29.0)
Other Noncurrent Liabilities	(8.3)		—		(8.3)
Total Identifiable Net Assets	2,635.3		(101.9)		2,533.4
Goodwill	2,499.3		101.9		2,601.2
Preliminary purchase price	$	5,134.6	$	—	$	5,134.6

(1) Includes $60.1 million related to Altra Transaction costs paid by the Company at the closing of the Altra Transaction.

Schedule of Fair Value and Weighted Average Useful Life of Identifiable Intangible Assets

The preliminary fair value and weighted average useful life of the identifiable intangible assets are as follows:

	Fair Value		Weighted Average Useful Life (Years)
Customer Relationships(1)	$	1,710.0	14.0
Trademarks(2)	330.0		10.0
Technology(3)	102.0		13.0
Total Identifiable Intangible Assets	$	2,142.0

(1) The fair value of Customer Relationships was valued using a multi-period excess earnings method, a form of the income approach, which incorporates the estimated future cash flows to be generated from Altra's existing customer base.

(2) The Altra Trademarks were valued using the relief from royalty method, which considers both the market approach and the income approach.

(3) The Altra Technology was valued using the relief from royalty method, which considers both the market approach and the income approach.

Schedule of Pro Forma Information

	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net Sales	$	1,649.8	$	1,791.6	$	5,093.6	$	5,449.3
Net (Loss) Income Attributable to Regal Rexnord Corporation	$	(126.7)	$	66.8	$	(7.2)	$	80.5
(Loss) Earnings Per Share Attributable to Regal Rexnord Corporation:
Basic	$	(1.91)	$	1.01	$	(0.11)	$	1.21
Assuming Dilution	$	(1.91)	$	1.00	$	(0.11)	$	1.20