Gates continues to undertake various restructuring and other strategic initiatives to drive increased productivity in all aspects of our operations. These actions include efforts to consolidate our manufacturing and distribution footprint, scale operations to current demand levels, streamline our selling, general and administrative (“SG&A”) back-office functions and relocate certain operations to lower cost locations.

Overall costs associated with our restructuring and other strategic initiatives have been recognized in the condensed consolidated statements as set forth below. Expenses incurred in relation to certain of these actions qualify as restructuring expenses under U.S. GAAP.


	Three months ended				Nine months ended
(dollars in millions)	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Restructuring expenses:
—Severance expense	$	1.0	$	—	$	0.5	$	4.4
—Non-severance labor and benefit (income) expenses	(0.2)		0.3		(0.1)		1.1
—Consulting expenses	1.1		0.8		2.6		1.7
—Other net restructuring expenses	0.3		1.5		2.0		3.1
	2.2		2.6		5.0		10.3
Restructuring expenses in asset impairments:
—Impairment of fixed and other assets	—		0.1		—		0.1

Restructuring expenses in cost of sales:

—Impairment of inventory	—		0.1		—		0.1

Total restructuring expenses	$	2.2	$	2.8	$	5.0	$	10.5

Expenses related to other strategic initiatives:
—Severance and other expenses (income) included in cost of sales	0.9		(0.1)		0.9		0.4
—Severance and other expenses included in SG&A	1.4		—		1.5		0.9

Total expenses (income) related to other strategic initiatives	$	2.3	$	(0.1)	$	2.4	$	1.3

Restructuring and other strategic initiatives during the three and nine months ended September 28, 2024 included $1.0 million and $2.5 million, respectively, of costs related to the relocation of certain production activities in Mexico. During the three months ended September 28, 2024, we also incurred severance costs of $1.0 million related to the consolidation of production activities across certain North American plants. Other restructuring costs incurred during the three and nine months ended September 28, 2024 included legal and consulting expenses, and costs associated with prior period facility closures or relocations in several countries.

Restructuring and other strategic initiatives during the three and nine months ended September 30, 2023 related primarily to severance and other non-labor costs related to relocating certain production activities in China, Mexico and Europe. During the three months ended September 30, 2023, we also incurred additional non-severance labor and benefit costs of $0.3 million related to relocation and integration of certain support functions into our regional shared service center in Europe. Other restructuring costs incurred during the three months ended September 30, 2023 related to legal and consulting expenses, as well as costs associated with prior period facility closures or relocations in several countries.

As indicated above, restructuring expenses, as defined under U.S. GAAP, form a subset of our total expenses related to restructuring and other strategic initiatives. These expenses include the impairment of inventory if applicable, which is recognized in cost of sales. Analyzed by segment, our restructuring expenses were as follows:


	Three months ended				Nine months ended
(dollars in millions)	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Power Transmission	$	0.6	$	1.5	$	1.4	$	7.2
Fluid Power	1.6		1.3		3.6		3.3
Continuing operations	$	2.2	$	2.8	$	5.0	$	10.5

The following summarizes the reserve for restructuring expenses for the nine months ended September 28, 2024 and September 30, 2023, respectively:


	Nine months ended
(dollars in millions)	September 28, 2024		September 30, 2023
Balance as of the beginning of the period	$	5.1	$	7.5
Utilized during the period	(6.3)		(11.1)
Charge for the period	5.7		10.5
Released during the period	(0.7)		(0.2)
Foreign currency translation	—		(0.1)
Balance as of the end of the period	$	3.8	$	6.6