Gates continues to undertake various restructuring and restructuring-related 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 restructuring-related 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
(dollars in millions)	March 29, 2025		March 30, 2024
Restructuring expenses:
—Severance expense	$	0.1	$	(0.6)

—Professional service fees	1.3		1.0
—Other net restructuring expenses	0.2		0.8
Total restructuring expenses	1.6		1.2

Asset impairments related to restructuring	0.6		—





Total restructuring expenses and asset impairments	$	2.2	$	1.2

Other restructuring-related expenses:
—Severance and restructuring-related expenses included in cost of sales	$	1.2	$	—
—Severance and restructuring-related expenses included in SG&A	1.5		0.1
Total restructuring-related expenses	$	2.7	$	0.1

Restructuring and other restructuring-related expenses during the three months ended March 29, 2025 primarily included $2.3 million of costs related to the relocation of certain production activities and reorganization of our operations in Mexico, as well as severance and professional service fees.

Restructuring and other restructuring-related expenses during the three months ended March 30, 2024 related to professional service fees, relocation of certain production activities in Mexico, and other restructuring costs associated with prior period facility closures or relocations in several countries.

As indicated above, restructuring expenses form a subset of our total expenses related to restructuring and other restructuring-related initiatives. Analyzed by segment, our restructuring expenses and restructuring-related asset impairments were as follows:


	Three months ended
(dollars in millions)	March 29, 2025		March 30, 2024
Power Transmission	$	1.2	$	0.3
Fluid Power	1.0		0.9
Total restructuring expenses and asset impairments	$	2.2	$	1.2

The following summarizes the reserve for restructuring expenses for the three months ended March 29, 2025 and March 30, 2024, respectively:


	Three months ended
(dollars in millions)	March 29, 2025		March 30, 2024
Balance as of the beginning of the period	$	2.8	$	5.1
Utilized during the period	(1.6)		(2.7)
Charge for the period	1.7		1.9
Released during the period	(0.1)		(0.7)
Foreign currency translation	0.1		(0.1)
Balance as of the end of the period	$	2.9	$	3.5

Restructuring reserves, which are expected to be utilized during 2025, are included in the condensed consolidated balance sheet within the accrued expenses and other current liabilities line.