OTHER FINANCIAL INFORMATION

6 Months Ended

Jun. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Revenue Recognition

The Company recognizes revenue from the sale of premium-efficiency electric motors and air moving subsystems, highly engineered industrial power transmission components and subsystems, and a portfolio of discrete automation products that include controls, actuators, drives, and high-precision servo motors. The Company recognizes revenue when control of the product passes to the customer or the service is provided. Revenue is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services.

The following tables presents the Company’s revenues disaggregated by geographical region:


	Three Months Ended
June 30, 2025	Automation & Motion Control		Industrial Powertrain Solutions		Power Efficiency Solutions		Total
North America	$	270.8	$	432.2	$	344.3	$	1,047.3
Asia	30.8		44.5		42.6		117.9
Europe	89.0		123.4		36.0		248.4
Rest-of-World	20.5		49.7		12.3		82.5
Total	$	411.1	$	649.8	$	435.2	$	1,496.1


	Three Months Ended
June 30, 2024	Automation & Motion Control		Industrial Powertrain Solutions		Power Efficiency Solutions		Industrial Systems		Total
North America	$	284.5	$	456.1	$	314.6	$	20.6	$	1,075.8
Asia	24.1		51.4		45.0		10.3		130.8
Europe	96.1		122.8		35.2		4.2		258.3
Rest-of-World	17.5		45.2		16.1		3.9		82.7
Total	$	422.2	$	675.5	$	410.9	$	39.0	$	1,547.6


	Six Months Ended
June 30, 2025	Automation & Motion Control		Industrial Powertrain Solutions		Power Efficiency Solutions		Total
North America	$	531.7	$	847.1	$	670.8	$	2,049.6
Asia	54.3		78.3		80.3		212.9
Europe	182.4		246.3		69.8		498.5
Rest-of-World	39.0		90.8		23.4		153.2
Total	$	807.4	$	1,262.5	$	844.3	$	2,914.2


	Six Months Ended
June 30, 2024	Automation & Motion Control		Industrial Powertrain Solutions		Power Efficiency Solutions		Industrial Systems		Total
North America	$	547.7	$	875.2	$	611.5	$	79.4	$	2,113.8
Asia	45.2		93.9		82.8		44.3		266.2
Europe	191.9		247.1		69.8		17.6		526.4
Rest-of-World	37.6		102.7		32.1		16.5		188.9
Total	$	822.4	$	1,318.9	$	796.2	$	157.8	$	3,095.3

Trade Receivables

The Company's policy for estimating the allowance for credit losses on trade receivables considers several factors including historical write-off experience, overall customer credit quality in relation to general economic and market conditions, and specific customer account analyses. The specific customer account analysis considers such items as credit worthiness, payment history, and historical bad debt experience. Trade receivables are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Adjustments to the allowance for credit losses are recorded in Operating Expenses.

The Company has an accounts receivable securitization facility (the “Securitization Facility"). The Company accounts for receivables sold under the Securitization Facility as a sale of financial assets pursuant to ASC 860 “Transfers and Servicing” and derecognizes these receivables from its Condensed Consolidated Balance Sheets. See Note 7 - Receivables Securitization for more information.

Inventories

The following table presents approximate percentage distribution between major classes of inventories:


	June 30, 2025	December 31, 2024
Raw Material and Work in Process	65.1%	67.8%
Finished Goods and Purchased Parts	34.9%	32.2%

Inventories are stated at the lower of cost or net realizable value, using the FIFO cost method. Material, labor and factory overhead costs are included in the inventories.

Property, Plant, and Equipment

The following table presents property, plant, and equipment by major classification:


	Useful Life in Years	June 30, 2025		December 31, 2024
Land and Improvements		$	135.4	$	134.5
Buildings and Improvements	3 - 50	429.7		387.2
Machinery and Equipment	3 - 15	1,243.4		1,189.8
Property, Plant and Equipment		1,808.5		1,711.5
Less: Accumulated Depreciation		(866.1)		(790.5)
Net Property, Plant and Equipment		$	942.4	$	921.0

As of June 30, 2025 and December 31, 2024, $66.5 million and $44.7 million of right-of-use assets were included in Net Property, Plant and Equipment, respectively.

Supplier Finance Program

The Company's supplier finance program with Bank of America (the "Bank") offers the Company's designated suppliers the option to receive payments of outstanding invoices in advance of the invoice maturity dates at a discount. The Company's payment obligation to the Bank remains subject to the respective supplier's invoice maturity date. The Bank acts as a payment agent, making payments on invoices the Company confirms are valid. The supplier finance program is offered for open account transactions only and may be terminated by either the Company or the Bank upon 15 days notice. The Company has not pledged any assets under this program. The Company has not incurred any subscription, service or other fees related to the Company's supplier finance program. The Company's outstanding obligations under the supplier finance program, which are classified within Accounts Payable, were $48.7 million and $41.0 million as of June 30, 2025 and December 31, 2024, respectively.

REGAL REXNORD CORP 10-Q