Regal Rexnord Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Regal Rexnord Corp. has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

REGAL REXNORD CORP (RRX) filed a Annual Report (10-K) with the SEC on February 26, 2024. Regal Rexnord Corp. filed its 2023 Form 10-K on February 26, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is in the Motors & Generators industry (SIC 3621). Regal Rexnord Corporation was formerly known as Regal Beloit Corp. The company is incorporated in Wisconsin.

Why It Matters

For investors and stakeholders tracking REGAL REXNORD CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Regal Rexnord's financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's current standing and future prospects. As a key player in the Motors & Generators industry, the information within this filing is vital for understanding market dynamics, competitive positioning, and potential impacts of industry trends on Regal Rexnord's business.

Risk Assessment

Risk Level: medium — REGAL REXNORD CORP shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies. However, the complexity of financial reporting and the potential for unforeseen market or operational challenges introduce a medium level of risk.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Regal Rexnord's performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-26 — Filing Date (As of date)
• 390875718 — IRS Number (Filer's IRS number)
• WI — State of Incorporation (Company's state of incorporation)

Key Players & Entities

• REGAL REXNORD CORP (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-02-26 (date) — Filing date
• MOTORS & GENERATORS (industry) — Standard Industrial Classification
• 3621 (industry) — Standard Industrial Classification code
• REGAL BELOIT CORP (company) — Former company name

FAQ

Industry Context

Regal Rexnord operates within the Motors & Generators industry, a sector critical for industrial automation, power generation, and various manufacturing processes.

Regulatory Implications

The filing adheres to the regulations set forth by the Securities and Exchange Commission (SEC) for annual reports (Form 10-K), ensuring transparency and standardized disclosure for public companies.

What Investors Should Do

1. Analyze the company's financial statements for revenue, net income, and other key performance indicators.
2. Review the 'Risk Factors' section for potential challenges and uncertainties facing the company.
3. Examine management's discussion and analysis (MD&A) for insights into operational performance and strategic initiatives.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-02-26: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing for the 2023 fiscal year. Comparative data from the previous year will be found within the detailed financial statements and tables of the report.

Key Financial Figures

• $0.01 — Symbol Which Registered Common Stock ($0.01 Par Value) RRX New York Stock Exchange
• $400 million — ing segment, for total consideration of $400 million plus cash transferred at close, subject
• $5.1 b — acquisition of Altra was approximately $5.1 billion, subject to the finalization of p
• $4.0 billion — e Rexnord Transaction was approximately $4.0 billion. See Item 7 – Management's Discussion a
• $315.6 million — rrowhead Systems, LLC ("Arrowhead") for $315.6 million in cash, net of $1.1 million of cash ac
• $1.1 million — ad") for $315.6 million in cash, net of $1.1 million of cash acquired (the "Arrowhead Transa

Filing Documents

• rbc-20231231.htm (10-K) — 3082KB
• rrx2023omnibusincentivepla.htm (EX-10.40) — 29KB
• exhibit212023123110k.htm (EX-21.1) — 25KB
• exhibit2312023123110k.htm (EX-23.1) — 2KB
• exhibit3112023123110k2023.htm (EX-31.1) — 10KB
• exhibit3122023123110k2023.htm (EX-31.2) — 10KB
• exhibit3212023123110k2023.htm (EX-32.1) — 5KB
• exhibit97-recoverypolicy.htm (EX-97) — 12KB
• exhibit97-recoverypolicy001.jpg (GRAPHIC) — 241KB
• exhibit97-recoverypolicy002.jpg (GRAPHIC) — 324KB
• exhibit97-recoverypolicy003.jpg (GRAPHIC) — 289KB
• rbc-20231231_g1.jpg (GRAPHIC) — 195KB
• 0000082811-24-000035.txt (&nbsp;) — 19580KB
• rbc-20231231.xsd (EX-101.SCH) — 89KB
• rbc-20231231_cal.xml (EX-101.CAL) — 172KB
• rbc-20231231_def.xml (EX-101.DEF) — 661KB
• rbc-20231231_lab.xml (EX-101.LAB) — 1340KB
• rbc-20231231_pre.xml (EX-101.PRE) — 1016KB
• rbc-20231231_htm.xml (XML) — 3465KB

Risk Factors

Item 1A Risk Factors 17

Unresolved Staff Comments

Item 1B Unresolved Staff Comments 29

Cybersecurity

Item 1C Cybersecurity 30

Properties

Item 2 Properties 32

Legal Proceedings

Item 3 Legal Proceedings 34

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 34 PART II

Market for the Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Item 5 Market for the Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 35

[Reserved]

Item 6 [Reserved] 36

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 37

Quantitative and Qualitative Disclosures about Market Risk

Item 7A Quantitative and Qualitative Disclosures about Market Risk 49

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 52 Consolidated Statements of Income (Loss) 58 Consolidated Statements of Comprehensive Income (Loss) 59 Consolidated Balance Sheets 60 Consolidated Statements of Equity 61 Consolidated Statements of Cash Flows 62 Notes to the Consolidated Financial Statements 63 (1) Nature of Operations 63 (2) Basis of Presentation 63 (3) Accounting Policies 63 (4) Held for Sale, Acquisitions and Divestitures 71 (5) Goodwill and Intangible Assets 82 (6) Segment Information 83 (7) Debt and Bank Credit Facilities 86 (8) Retirement Plans 88 (9) Leases 93 (10) Shareholders' Equity 95 (11) Income Taxes 99 (12) Contingencies 101 (13) Derivative Financial Instruments 103 (14) Fair Value 107 (15) Restructuring Activities 108

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 109

Controls and Procedures

Item 9A Controls and Procedures 109

Other Information

Item 9B Other Information 110

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 110 PART III 3

Directors, Executive Officers and Corporate Governance

Item 10 Directors, Executive Officers and Corporate Governance 111

Executive Compensation

Item 11 Executive Compensation 111

Security Ownership of Certain Beneficial Owners and Management and Related Stockhol der Matters

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockhol der Matters 111

Certain Relationships and Related Transactions and Director Independence

Item 13 Certain Relationships and Related Transactions and Director Independence 111

Principal Accountant Fees and Services

Item 14 Principal Accountant Fees and Services 111 PART IV

Exhibits and Financial Statement Schedule

Item 15 Exhibits and Financial Statement Schedule 112

Form 10-K Summary

Item 16 Form 10-K Summary 120 4 CAUTIONARY STATEMENT This report contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current estimates, expectations and projections about the Company's future results, performance, prospects and opportunities. Such forward-looking statements may include, among other things, statements about the acquisition of Altra Industrial Motion Corp. ("Altra"), the benefits and synergies of the acquisition of Altra (the "Altra Transaction"), future opportunities for the Company and any other statements regarding the Company's future operations, anticipated economic activity, business levels, credit ratings, future earnings, planned activities, anticipated growth, market opportunities, strategies, competition and other expectations and estimates for future periods. Forward-looking statements include statements that are not historical facts and can be identified by forward-looking words such as "anticipate," "believe," "confident," "estimate," "expect," "intend," "plan," "may," "will," "would," "project," "forecast," "would," "could," "should," and similar expressions. These forward-looking statements are based upon information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the performance, prospects, or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Important factors that could cause actual results to differ materially from the results referred to in the forward-looking statements the Company makes in this report include: the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility after the Altra Transaction; the Company's ability to achieve its objectives on reducing its indebtedness on the desired timeline; depe

- BUSINESS

ITEM 1 - BUSINESS Our Company Regal Rexnord Corporation (NYSE: RRX) is a global leader in the engineering and manufacturing of factory automation sub-systems, industrial powertrain solutions, automation and mechanical power transmission components, electric motors and electronic controls, air moving products and specialty electrical components and systems, serving customers around the world. Through longstanding technology leadership and an intentional focus on producing more energy-efficient products and systems, we help create a better tomorrow – for our customers and for the planet. We are headquartered in Milwaukee, Wisconsin and have manufacturing, sales and service facilities worldwide. Our Company is comprised of four operating segments: Industrial Powertrain Solutions ("IPS"), Power Efficiency Solutions ("PES"), Automation & Motion Control ("AMC") and Industrial Systems. Effective during the first quarter of 2023, in conjunction with the Altra Transaction (as defined in the Acquisitions section below), we realigned our four operating segments with the change to our management structure and operating model. See Note 6 - Segment Information of the Notes to the Consolidated Financial Statements for further information. A description of our four operating segments is as follows: IPS consists of the majority of our previous Motion Control Solutions ("MCS") segment, excluding the conveying and aerospace business units, plus Altra's Power Transmission Technologies segment. The IPS segment designs, produces and services mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, special components products and industrial powertrain components and solutions serving a broad range of markets including food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf & garden and general industrial. PES consists of o

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View this 10-K filing on SEC EDGAR