Regal Rexnord RRX Proceeds from IEEPA tariff refund

On April 20, 2026, the US Customs and Border Protection (“CBP”) launched the Consolidated Administration and Processing of Entries (“CAPE”) system to manage the initial phases of refund claims. Based on the CBP-established eligibility criteria, we submitted $38.1 million of IEEPA tariff refund claims to date, of which we have received $21.0 million in cash as of June 30, 2026. Under a loss recovery model, we concluded that all submitted and accepted IEEPA tariff refund claims are probable of recovery and, therefore, recognized $38.1 million in the second quarter 2026. Of the $38.1 million, $32.0 million was recorded as a reduction to Cost of Sales and $1.0 million as Interest Income in the Condensed Consolidated Statement of Income and $5.1 million as a reduction to Inventories in the Condensed Consolidated Balance Sheet. We recorded a receivable of $17.1 million in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheet as of June 30, 2026.