GATES INDUSTRIAL CORP PLC, 10-K filed on 2/6/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Feb. 03, 2025
Jun. 29, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 28, 2024    
Document Fiscal Year Focus 2024    
Document Transition Report false    
Entity File Number 001-38366    
Entity Registrant Name Gates Industrial Corporation plc    
Entity Incorporation, Country Code X0    
Entity Tax Identification Number 98-1395184    
Entity Address, Street Address 1144 Fifteenth Street    
Entity Address, City Denver    
Entity Address, State CO    
Entity Address, Postal Zip Code 80202    
City Area Code 303    
Local Phone Number 744-1911    
Title of each class Ordinary Shares, $0.01 par value per share    
Trading Symbol(s) GTES    
Name of each exchange on which registered NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 3,194.1
Entity Common Stock, Shares Outstanding   255,413,513  
Documents Incorporated by Reference
Portions of the registrant's definitive Proxy Statement to be delivered to stockholders in connection with its 2025 annual general meeting of shareholders are incorporated by reference into Part III.
   
Entity Central Index Key 0001718512    
Current Fiscal Year End Date --12-28    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
12 Months Ended
Dec. 28, 2024
Audit Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Firm ID 34
Auditor Location Denver, Colorado
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Consolidated Statements of Operations - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Net sales $ 3,408.2 $ 3,570.2 $ 3,554.2
Cost of sales 2,049.7 2,211.3 2,303.6
Gross profit 1,358.5 1,358.9 1,250.6
Selling, general and administrative expenses 870.0 882.2 853.7
Transaction-related expenses 3.3 2.2 2.1
Asset impairments 0.0 0.1 1.1
Restructuring expenses 6.5 11.6 9.5
Other operating expenses 0.0 0.2 0.2
Operating income from continuing operations 478.7 462.6 384.0
Interest expense 155.8 163.2 139.4
Loss on deconsolidation of Russian Subsidiary 12.7 0.0 0.0
Other (income) expenses (17.8) 14.1 (13.2)
Income from continuing operations before taxes 328.0 285.3 257.8
Income tax expense 107.5 28.3 14.9
Net income from continuing operations 220.5 257.0 242.9
Loss on disposal of discontinued operations, net of tax, respectively, of $0, $0 and $0 0.6 0.6 0.4
Net income 219.9 256.4 242.5
Less: non-controlling interests 25.0 23.5 21.7
Net income attributable to shareholders $ 194.9 $ 232.9 $ 220.8
Basic      
Earnings per share from continuing operations (in usd per share) $ 0.75 $ 0.86 $ 0.78
Earnings per share from discontinued operations (in usd per share) 0 0 0
Earnings per share (in usd per share) 0.75 0.86 0.78
Diluted      
Earnings per share from continuing operations (in usd per share) 0.74 0.84 0.77
Earnings per share from discontinued operations (in usd per share) 0 0 0
Earnings per share (in usd per share) $ 0.74 $ 0.84 $ 0.77
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Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Income Statement [Abstract]    
Loss on disposal of discontinued operations, net of tax $ 0 $ 0
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Net income $ 219.9 $ 256.4 $ 242.5
Foreign currency translation:      
—Net translation (loss) gain on foreign operations, net of tax benefit (expense), respectively, of $5.4, $(4.3) and $(2.5) (293.5) 128.5 (159.5)
—Gain (loss) on net investment hedges, net of tax benefit, respectively, of $0, $5.4 and $8.6 49.8 (27.8) 2.9
Total foreign currency translation movements (243.7) 100.7 (156.6)
Cash flow hedges (interest rate derivatives):      
—Gain arising in the period, net of tax expense, respectively, of $(3.2), $(1.8) and $(15.4) 9.7 5.6 46.3
—Reclassification to net income, net of tax benefit (expense), respectively, of $8.7, $6.0 and $(3.5) (26.0) (18.1) 10.4
Total cash flow hedges movements (16.3) (12.5) 56.7
Post-retirement benefits:      
—Current year actuarial movements, net of tax benefit, respectively, of $1.4, $3.6 and $11.0 (5.2) (10.3) (33.4)
—Reclassification of prior year actuarial movements to net income, net of tax (expense) benefit, respectively, of $(0.2), $1.1 and $0.5 (2.6) (2.4) (0.5)
Total post-retirement benefits movements (7.8) (12.7) (33.9)
Other comprehensive (loss) income (267.8) 75.5 (133.8)
Comprehensive (loss) income for the period (47.9) 331.9 108.7
Comprehensive (loss) income attributable to shareholders:      
Comprehensive (loss) income attributable to shareholders: (53.8) 322.2 128.2
Comprehensive income (loss) attributable to non-controlling interests 5.9 9.7 (19.5)
Comprehensive (loss) income for the period (47.9) 331.9 108.7
—(Loss) income arising from continuing operations      
Comprehensive (loss) income attributable to shareholders:      
Comprehensive (loss) income attributable to shareholders: (53.2) 322.8 128.6
—Loss arising from discontinued operations      
Comprehensive (loss) income attributable to shareholders:      
Comprehensive (loss) income attributable to shareholders: $ (0.6) $ (0.6) $ (0.4)
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Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Foreign currency translation:      
Net translation gain (loss) on foreign operations, tax $ 5.4 $ (4.3) $ (2.5)
(Loss) gain on net investment hedges, tax 0.0 5.4 8.6
Cash flow hedges (interest rate derivatives):      
(Loss) gain arising in the period, tax expense (3.2) (1.8) (15.4)
Reclassification to net income, net of tax benefit 8.7 6.0 (3.5)
Post-retirement benefits:      
Other comprehensive income (loss), defined benefit plan, gain (loss) arising during period, tax 1.4 3.6 11.0
Reclassification of prior year actuarial movements to net income, net of tax benefit $ (0.2) $ 1.1 $ 0.5
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Current assets    
Cash and cash equivalents $ 682.0 $ 720.6
Trade accounts receivable, net 722.7 768.2
Inventories 676.0 647.2
Taxes receivable 28.6 30.4
Prepaid expenses and other assets 196.7 234.9
Total current assets 2,306.0 2,401.3
Non-current assets    
Property, plant and equipment, net 579.5 630.0
Goodwill 1,908.9 2,038.7
Pension surplus 5.7 8.6
Intangible assets, net 1,248.6 1,386.1
Right-of-use assets 139.4 120.1
Taxes receivable 20.7 18.5
Deferred income taxes 553.5 622.4
Other non-current assets 24.0 28.8
Total assets 6,786.3 7,254.5
Current liabilities    
Debt, current portion 39.1 36.5
Trade accounts payable 408.2 457.7
Taxes payable 22.9 36.6
Accrued expenses and other current liabilities 251.3 248.5
Total current liabilities 721.5 779.3
Non-current liabilities    
Debt, less current portion 2,311.5 2,415.0
Post-retirement benefit obligations 78.0 83.8
Lease liabilities 127.3 110.6
Taxes payable 82.2 79.4
Deferred income taxes 56.8 119.4
Other non-current liabilities 68.7 123.1
Total liabilities 3,446.0 3,710.6
Commitments and contingencies (Note 22)
Shareholders’ equity    
—Shares, par value of $0.01 each - authorized shares: 3,000,000,000; outstanding shares: 255,203,987 (December 30, 2023: authorized shares: 3,000,000,000; outstanding shares: 264,259,788) 2.6 2.6
—Additional paid-in capital 2,618.6 2,583.8
—Accumulated other comprehensive loss (1,077.2) (828.5)
—Retained earnings 1,479.6 1,462.3
Total shareholders’ equity 3,023.6 3,220.2
Non-controlling interests 316.7 323.7
Total equity 3,340.3 3,543.9
Total liabilities and equity $ 6,786.3 $ 7,254.5
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Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 28, 2024
Dec. 30, 2023
Statement of Financial Position [Abstract]    
Par value (in usd per share) $ 0.01 $ 0.01
Authorized shares (in shares) 3,000,000,000 3,000,000,000
Outstanding shares ( in shares) 255,203,987 264,259,788
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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net income $ 219.9 $ 256.4 $ 242.5
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 216.9 217.5 217.2
Foreign exchange and other non-cash financing (income) expense (44.2) (24.8) 5.8
Share-based compensation expense 28.8 27.4 44.3
Decrease in post-employment benefit obligations, net (9.0) (9.9) (16.0)
Deferred income taxes (12.1) (65.7) (79.7)
Asset impairments 0.0 0.1 2.6
Loss on deconsolidation of Russian subsidiary 12.7 0.0 0.0
Gain on disposal of property, plant and equipment (7.3) 0.0 0.0
Other operating activities (0.1) 5.3 6.6
Changes in operating assets and liabilities:      
—Accounts receivable 8.4 45.6 (129.3)
—Inventories (64.0) 24.5 2.9
—Accounts payable (27.6) (17.8) (15.9)
—Prepaid expenses and other assets 37.3 22.3 50.3
—Taxes payable (0.9) (14.5) (24.4)
—Other liabilities 20.8 14.6 (41.1)
Net cash provided by operating activities 379.6 481.0 265.8
Cash flows from investing activities      
Purchases of property, plant and equipment (83.1) (61.2) (77.6)
Purchases of intangible assets (23.6) (10.2) (9.4)
Purchases of investments (11.3) 0.0 0.0
Proceeds from sale of investments 5.0 0.0 0.0
Cash paid under company-owned life insurance policies (5.4) (18.2) (11.6)
Cash received under company-owned life insurance policies 14.5 6.6 6.0
Proceeds from the sale of property, plant and equipment 12.0 1.2 0.0
Cash deconsolidated from previously controlled subsidiary (12.5) 0.0
Other investing activities 0.0 0.0 1.9
Net cash used in investing activities (104.4) (81.8) (90.7)
Cash flows from financing activities      
Issuance of shares 14.9 18.7 15.9
Repurchase of shares (176.1) (251.7) (175.9)
Proceeds from long-term debt 1,840.0 100.0 645.0
Payments of long-term debt (1,948.4) (119.6) (676.9)
Debt issuance costs paid (21.6) (1.3) (23.3)
Dividends paid to non-controlling interests (13.0) (18.2) (28.7)
Other financing activities 17.5 13.8 (9.2)
Net cash used in financing activities (286.7) (258.3) (253.1)
Effect of exchange rate changes on cash and cash equivalents and restricted cash (27.7) 1.7 (1.5)
Net (decrease) increase in cash and cash equivalents and restricted cash (39.2) 142.6 (79.5)
Cash and cash equivalents and restricted cash at the beginning of the period 724.0 581.4 660.9
Cash and cash equivalents and restricted cash at the end of the period 684.8 724.0 581.4
Supplemental schedule of cash flow information      
Interest paid 132.6 155.1 118.7
Income taxes paid 122.3 110.5 117.8
Accrued capital expenditures $ 1.2 $ 0.6 $ 1.9
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Consolidated Statements of Shareholders’ Equity - USD ($)
$ in Millions
Total
Total shareholders’ equity
Share capital
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Non-controlling interests
Beginning balance at Jan. 01, 2022 $ 3,481.4 $ 3,099.7 $ 2.9 $ 2,484.1 $ (825.2) $ 1,437.9 $ 381.7
Increase (Decrease) in Stockholders' Equity              
Net income 242.5 220.8       220.8 21.7
Other comprehensive income (loss), net (133.8) (92.6)     (92.6)   (41.2)
Total comprehensive (loss) income 108.7 128.2 0.0 0.0 (92.6) 220.8 (19.5)
—Issuance of shares 15.9 15.9   15.9      
—Shares withheld for employee taxes (1.4) (1.4)   (1.4)      
—Repurchase and cancellation of shares (175.9) (175.9) (0.1)     (175.8)  
—Share-based compensation 43.6 43.5   43.5     0.1
—Dividends paid to non-controlling interests (28.7)           (28.7)
Ending balance at Dec. 31, 2022 3,443.6 3,110.0 2.8 2,542.1 (917.8) 1,482.9 333.6
Increase (Decrease) in Stockholders' Equity              
Net income 256.4 232.9       232.9 23.5
Other comprehensive income (loss), net 75.5 89.3     89.3   (13.8)
Total comprehensive (loss) income 331.9 322.2 0.0 0.0 89.3 232.9 9.7
—Issuance of shares 18.7 18.7   18.7      
—Shares withheld for employee taxes (3.3) (3.3)   (3.3)      
—Repurchase and cancellation of shares (253.7) (253.7) (0.2)     (253.5)  
—Share-based compensation 26.4 26.3   26.3     0.1
—Dividends paid to non-controlling interests (19.7)           (19.7)
Ending balance at Dec. 30, 2023 3,543.9 3,220.2 2.6 2,583.8 (828.5) 1,462.3 323.7
Increase (Decrease) in Stockholders' Equity              
Net income 219.9 194.9       194.9 25.0
Other comprehensive income (loss), net (267.8) (248.7)     (248.7)   (19.1)
Total comprehensive (loss) income (47.9) (53.8) 0.0 0.0 (248.7) 194.9 5.9
—Issuance of shares 14.9 14.9 0.1 14.8      
—Shares withheld for employee taxes (4.7) (4.7)   (4.7)      
—Repurchase and cancellation of shares (177.7) (177.7) (0.1)     (177.6)  
—Share-based compensation 24.8 24.7   24.7     0.1
—Dividends paid to non-controlling interests (13.0)           (13.0)
Ending balance at Dec. 28, 2024 $ 3,340.3 $ 3,023.6 $ 2.6 $ 2,618.6 $ (1,077.2) $ 1,479.6 $ 316.7
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Background
12 Months Ended
Dec. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background Background
Gates Industrial Corporation plc (the “Company”) is a public limited company that was incorporated in the United Kingdom and registered in England and Wales on September 25, 2017.
In these consolidated financial statements and related notes, all references to “Gates”, “we”, “us”, and “our” refer, unless the context requires otherwise, to the Company and its subsidiaries.
Gates manufactures a wide range of power transmission and fluid power products and components for a large variety of industrial and automotive applications, both in the aftermarket and OEM channels, throughout the world. Gates is comprised of two operating segments: Power Transmission and Fluid Power.
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Significant accounting policies
12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Significant accounting policies Significant accounting policies
A. Basis of presentation
The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are presented in U.S. dollars unless otherwise indicated. The accounting policies used in preparing these consolidated financial statements and related notes are the same as those applied in the prior year.
B. Accounting periods
The Company prepares its annual consolidated financial statements as of the Saturday nearest December 31. Accordingly, the consolidated balance sheets are presented as of December 28, 2024 and December 30, 2023 and the related consolidated statements of operations, comprehensive income, cash flows, and shareholders’ equity are presented for the years ended December 28, 2024 (“Fiscal 2024”), December 30, 2023 (“Fiscal 2023”) and December 31, 2022 (“Fiscal 2022”).
C. Basis of consolidation
The consolidated financial statements include the results of operations, cash flows and assets and liabilities of Gates and its majority-owned subsidiaries, and our share of the results of our equity method investees.
We consolidate entities in which we have a controlling interest or when we are considered the primary beneficiary of a variable interest entity. The consolidated financial statements reflect the assets, liabilities, revenues and expenses of consolidated subsidiaries and the non-controlling parties’ ownership interest is presented as a non-controlling interest. Intercompany transactions and balances, and any unrealized profits or losses arising from intercompany transactions, are eliminated on consolidation.
In 2022, as a result of the conflict between Russia and Ukraine, the Company began exiting substantially all its activities in Russia with only residual cash and de minimis administrative costs remaining in 2024. During the year ended December 28, 2024, the Company concluded that the inability to repatriate remaining cash coupled with the significant government regulations and restrictions currently in place, which are expected to continue or worsen, severely limits its ability to manage and control its Russian subsidiary. As a result, the Company's Russian subsidiary was deconsolidated as of December 28, 2024. The impact of the deconsolidation was a $12.7 million loss included in the results of operations for the year ended December 28, 2024.
D. Foreign currency transactions and translation
Transactions denominated in currencies other than an entity’s functional currency (foreign currencies) are translated into the entity’s functional currency at the exchange rates prevailing on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing on the reporting date. Exchange differences arising from changes in exchange rates are recognized in net income for the period. The net foreign currency transaction gain included in operating income from continuing operations during Fiscal 2024 was $6.5 million, compared to a gain of $2.5 million in Fiscal 2023 and a gain of $5.7 million in Fiscal 2022. We also recognized net financing-related foreign currency transaction gains within other expenses (income) of $13.7 million during Fiscal 2024, compared to a loss of $4.2 million in Fiscal 2023 and a gain of $10.2 million in Fiscal 2022.
On consolidation, the results of operations of entities whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the weighted average exchange rate for the period and their assets and liabilities are translated into U.S. dollars at the exchange rate prevailing on the balance sheet date. Currency translation differences are recognized within other comprehensive income (“OCI”) as a separate component of accumulated OCI. In the event that a foreign operation is sold, or substantially liquidated, the cumulative currency translation differences that are attributable to the operation are reclassified to net income.
In the statement of cash flows, the cash flows of operations whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the weighted average exchange rate for the period.
E. Net sales
Gates derives its net sales primarily from the sale of a wide range of power transmission and fluid power products and components for a large variety of industrial and automotive applications, both in the aftermarket and OEM channels, throughout the world.
Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We apply the five-step model under Topic 606 (“Revenue from Contracts with Customers”) to all contracts. The five steps are: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) we satisfy a performance obligation.
In most of our agreements with customers, we consider accepted customer purchase orders, which in some cases are governed by master sales agreements, to represent the contracts with our customers. Revenue from the sale of goods under these contracts is measured at the invoiced amount, net of estimated returns, early settlement discounts and rebates. Taxes collected from customers relating to product sales and remitted to government authorities are excluded from revenues. Where a customer has the right to return goods, future returns are estimated based on historical returns profiles. Settlement discounts that may apply to unpaid invoices are estimated based on the settlement histories of the relevant customers. Our transaction prices often include variable consideration, usually in the form of discounts and rebates that may apply to issued invoices. The reduction in the transaction price for variable consideration requires that we make estimations of the expected total qualifying sales to the relevant customers. These estimates, including an analysis for potential constraint on variable consideration, take into account factors such as the nature of the rebate program, historical information and expectations of customer and consumer behavior. Overall, the transaction price is reduced to reflect our estimate of the consideration that is not probable of significant reversal.
We allocate the transaction price to each distinct performance obligation based on their relative standalone selling price. The product price as specified on the accepted purchase order is considered to be the standalone selling price.
In substantially all of our contracts with customers, our performance obligations are satisfied at a point in time, rather than over a period of time, when control of the product is transferred to the customer. This occurs typically at shipment. In determining whether control has transferred and the customer is consequently able to control the use of the product for their own benefit, we consider if there is a present right to payment, legal title and physical possession has been transferred, whether the risks and rewards of ownership have transferred to the customer, and if acceptance of the asset by the customer is more than perfunctory.
F. Selling, general and administrative expenses
Shipping and handling costs
Costs of outbound shipping and handling are included in SG&A. During Fiscal 2024, we recognized shipping and handling costs of $177.6 million, compared to $167.2 million in Fiscal 2023 and $174.8 million in Fiscal 2022.
Research and development costs
Research and development costs are charged to net income in the period in which they are incurred. Our research and development expense was $66.5 million in Fiscal 2024, compared to $66.0 million in Fiscal 2023 and $69.4 million in Fiscal 2022. These costs related primarily to product development and also to technology to enhance manufacturing processes.
Advertising costs
Advertising costs are expensed as incurred and included in SG&A. During Fiscal 2024, we recognized advertising costs of $15.6 million, compared to $14.0 million in Fiscal 2023 and $16.8 million in Fiscal 2022.
G. Restructuring expenses
Restructuring expenses are incurred in major projects undertaken to rationalize and improve our cost competitiveness. Restructuring expenses incurred during the periods presented are analyzed in Note 5.
Liabilities in respect of termination benefits provided to employees who are involuntarily terminated under the terms of a one-time benefit arrangement are recognized over the future service period when those employees are required to render services to the entity beyond the minimum retention period. If employees are not required to render service until they are terminated or if they will not be retained to render service beyond 60 days or a longer legal notification period, the liability is recognized on the communication date.
Termination benefits that are covered by a contract or an ongoing benefit arrangement are recognized when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. Benefits that are offered for a short period of time in exchange for voluntary termination are recognized when the employees accept the offer.
Restructuring expenses other than termination benefits and lease exit costs are recognized only when the Company has incurred a related liability.
H. Inventories
Inventories are stated at the lower of cost or net realizable value. A valuation adjustment is made to inventory for any excess, obsolete or slow-moving items based on management’s review of on-hand inventories compared to historical and estimated future sales and usage profiles. Any consequent write-down of inventory results in a new cost basis for inventory.
Cost represents the expenditure incurred in bringing inventories to their existing location and condition, which may include the cost of raw materials, direct labor costs, other direct costs and related production overheads. Cost is generally determined on a first in, first out (“FIFO”) basis, but the cost of certain inventories is determined on a last in, first out (“LIFO”) basis. As of December 28, 2024, inventories whose cost was determined on a LIFO basis represented 34.6% of the total carrying amount of inventories compared to 33.3% as of December 30, 2023. Inventories would have been $58.3 million and $36.0 million higher than reported as of December 28, 2024 and December 30, 2023, respectively, had all inventories been valued on a FIFO basis, which approximates current cost.
I. Goodwill
Goodwill arising in a business combination is allocated to the reporting unit that is expected to benefit from the synergies of the acquisition.
Where goodwill is attributable to more than one reporting unit, the goodwill is determined by allocating the purchase consideration in proportion to their respective business enterprise values and comparing the allocated purchase consideration with the fair value of the identifiable assets and liabilities of the reporting unit. Goodwill is not amortized but is tested for impairment on the first day of the fourth quarter or more frequently whenever events or changes in circumstances indicate that the carrying value may not be recoverable and is carried at cost less any recognized impairment. For both reporting units, which are also our reportable segments, the fair values exceeded the carrying values and no goodwill impairments were therefore recognized during Fiscal 2024, Fiscal 2023 or Fiscal 2022.
To identify a potential impairment of goodwill, the fair value of the reporting unit to which the goodwill is allocated is compared to its carrying amount, including goodwill. We calculate fair values using a weighted blend of income and market approaches. If the fair value of the reporting unit exceeds its carrying amount, the goodwill of the reporting unit is not considered impaired. If the fair value is lower than the carrying amount, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the amount of goodwill allocated to that reporting unit.
J. Other intangible assets
Other intangible assets are stated at cost less accumulated amortization and any recognized impairment.
(i) Assets acquired in business combinations
An acquired intangible asset with a finite useful life is amortized on a straight-line basis so as to charge its cost, which represents its fair value at the date of acquisition, to net income over the Company’s expectation of its useful life, as follows:
Customer relationships
15 to 17 years
Technology
5 to 7 years
Acquired brands and trade names are considered to have an indefinite useful life and are not amortized but are tested at least annually for impairment and are carried at cost less any recognized impairment.
(ii) Computer software
Computer software that is not integral to an item of property, plant and equipment is recognized separately as an intangible asset. Computer software is amortized on a straight-line basis over its estimated useful life, which ranges from 2 to 6 years.
K. Property, plant and equipment
Property, plant and equipment is recorded at cost less accumulated depreciation and any recognized impairment losses. Major improvements are capitalized. Expenditures for repairs and maintenance that do not significantly extend the useful life of the asset are expensed as incurred.
Land and assets under construction are not depreciated. Depreciation of property, plant and equipment, other than land and assets under construction, is generally expensed on a straight-line basis over their estimated useful lives. The Company’s estimated useful lives of items of property, plant and equipment are generally in the following ranges:
Buildings and improvements
30 to 40 years
Leasehold improvementsShorter of lease term or useful life
Machinery, equipment and vehicles
2 to 20 years
L. Leases
Gates has a large number of leases covering a wide variety of tangible assets that are used in our operations across the world. The value of our global leases is concentrated in a relatively small number of real estate leases, which accounted for approximately 92% of the lease liability under non-cancellable leases as of December 28, 2024. The remaining leases are predominantly comprised of equipment and vehicle leases.
In determining the impact of renewal options on the lease term, we consider various economic factors, including real estate strategies, the nature, length and underlying terms of the agreement, as well as the uncertainty of the condition of leased equipment at the end of the lease term.
Certain payments under our lease agreements, such as property taxes and utility costs, are excluded from the measurement of our right-of-use assets and lease liabilities and are recognized instead as variable payments in the period in which the obligation for those payments is incurred. A number of our leases, particularly real estate leases, include base rent escalation clauses. The majority of these are based on the change in a local consumer price or similar inflation index. Payments that vary based on an index or rate are included in the measurement of our right-of-use assets and lease liabilities at the rate as of the commencement date with any subsequent changes to those payments being recognized as variable payments in the period in which they occur.
Gates does not have any significant leases containing residual value guarantees, restrictions or covenants. Additionally, as of December 28, 2024, there were no significant new leases that have not yet commenced.
The discount rate used to calculate the present value of the future minimum lease payments is the rate implicit in the lease, when readily available. As most of our leases do not have a readily determinable implicit rate, we discount the future minimum lease payments using an incremental borrowing rate which represents the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. We determine this rate at a country or lower level and take into account factors including currency, country risk premium, industry risk and adjustments for collateralized debt. Appropriate yield curves are used to derive different debt tenors to approximate the applicable lease term.
The discount rate is reassessed when there is a remeasurement of the lease liability, which happens predominantly when there is a contract modification and that modification does not result in a separate contract.
We have adopted the following practical expedients:
(i)we will not separate the lease component from the non-lease component for all asset classes. We have therefore not allocated consideration in a contract between lease and non-lease components; and
(ii)we recognize the payments on short-term leases (leases with terms at inception of 12 months or fewer) in net income on a straight-line basis over the lease term. No amount is recognized on the balance sheet with respect to these leases.
M. Financial instruments
(i) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits available on demand and other short-term, highly liquid investments with maturities on acquisition of 90 days or less. We have cash concentrations in certain large, highly-rated global financial institutions. Management closely monitors the credit quality of the institutions in which it holds deposits.
(ii) Restricted cash
Restricted cash, which is included in the prepaid expenses and other assets line in the consolidated balance sheets, includes cash given as collateral under letters of credit for insurance and regulatory purposes. Cash and cash equivalents for the purposes of the consolidated statement of cash flows includes restricted cash of $2.8 million as of December 28, 2024, compared to $3.4 million and $3.0 million as of December 30, 2023 and December 31, 2022, respectively.
(iii) Trade accounts receivable
Trade accounts receivable represent the amount of sales of goods to customers, net of discounts and rebates, for which payment has not been received, less an allowance for expected credit losses. Our businesses develop their expected loss estimates based either on the aging profile of outstanding receivables or by applying an experience factor (either a percentage of sales or a percentage of open receivables). These methodologies are based primarily on historical trends and experience, but credit controllers also regularly assess individual customer accounts to identify any potential increases or decreases in the level of expected credit loss needed to be applied to each customer based on current circumstances and future expectations.
Before accepting a new customer, we assess their credit quality and establish a credit limit. Credit quality is assessed by using data maintained by reputable credit rating agencies, by checking of references included in credit applications and, where they are available, by reviewing the customer’s recent financial statements. Credit limits are subject to multiple levels of authorization and are reviewed on a regular basis.
Although Gates has a wide variety of customers from multinational original equipment manufacturers and distributors to small family-owned businesses, the majority of our sales are generated from large companies with low credit risk.
Movements in our allowance for expected credit losses during the periods presented are analyzed in Note 22.
During Fiscal 2021, the Company implemented a program with an unrelated third party under which we may periodically sell trade accounts receivable from one of our aftermarket customers with whom we have extended payment terms as part of a commercial agreement. The purpose of using this program is to generally offset the working capital impact resulting from this terms extension. All eligible accounts receivable from this customer are covered by the program, and any factoring is solely at our option. Following the factoring of a qualifying receivable, because we maintain no continuing involvement in the underlying receivable, and collectability risk is fully transferred to the unrelated third party, we account for these transactions as a sale of a financial asset and derecognize the asset. Cash received under the program is classified as operating cash inflows in the consolidated statements of cash flows. As of December 28, 2024, the collection of $148.6 million of our trade accounts receivable had been accelerated under this program, compared to the accelerated collection of $112.4 million as of December 30, 2023. We incurred costs in respect of this program of $10.2 million during Fiscal 2024, which are recorded under other (income) expenses, compared to $8.0 million during Fiscal 2023.
(iv) Debt
Debt is initially measured at its principal amount, net of directly attributable transaction costs, if any, and is subsequently measured at amortized cost using the effective interest rate method.
(v) Accounts payable
Accounts payable represents the amount of invoices received from suppliers for purchases of goods and services and the amount of goods received but not invoiced, for which payment has not been made.
(vi) Derivative financial instruments
We use derivative financial instruments, principally foreign currency swaps, forward foreign currency contracts, interest rate caps (options) and interest rate swaps, to reduce our exposure to foreign currency risk and interest rate risk. We do not hold or issue derivatives for speculative purposes and monitor closely the credit quality of the institutions with which we transact.
We recognize all derivative financial instruments as either assets or liabilities at fair value on the balance sheet date. The accounting for the change in the fair value is recognized in net income based on the nature of the items being hedged unless the financial instrument has been designated in an effective cash flow or net investment hedging relationship, in which case the change in fair value is recognized in OCI.
(vii) Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities that are held at fair value, or for which fair values are presented in these consolidated financial statements, have been categorized into one of three levels to reflect the degree to which observable inputs are used in determining the fair values. Where a change in the determination of the fair value of a financial asset or liability results in a transfer between the levels of the fair value hierarchy, we recognize that transfer at the end of the reporting period.
N. Post-retirement benefits
Post-retirement benefits comprise pension benefits provided to employees and other benefits, mainly healthcare, provided to certain employees in North America.
We account for our post-retirement benefit plans in accordance with Topic 715 “Compensation – Retirement Benefits”, which is based on the principle that the cost of providing these benefits is recognized in net income over the service periods of the participating employees.
For defined benefit plans, the net obligation or surplus arising from providing the benefits is recognized as a liability or an asset determined by actuarial valuations of each of the plans that are carried out annually by independent qualified actuaries as of the year end balance sheet date. Benefit obligations are measured using the projected unit credit method. Plan assets (if any) are measured at fair value. We recognize the service cost component of our net periodic pension and other post-retirement benefit cost in the lines within operating income to which the relevant employees' other compensation costs are reported. All other components of the net periodic benefit cost (which include the interest cost, the expected return on plan assets, gains or losses on settlements and curtailments, the amortization of prior year service cost or credit and prior year actuarial gains and losses) are included in the other (expenses) income line, outside of operating income from continuing operations.
Actuarial gains and losses represent differences between the expected and actual returns on the plan assets, gains and losses on the plan liabilities and the effect of changes in actuarial assumptions. We use the “corridor approach” whereby, to the extent that cumulative actuarial gains and losses exceed 10% of the greater of the market related value of the plan assets and the projected benefit obligation at the beginning of the fiscal year, they are reclassified from accumulated other comprehensive income to net income over the average remaining service periods of participating employees.
Gains and losses on settlements and curtailments are recognized in net income in the period in which the curtailment or settlement occurs.
O. Share-based compensation
Share-based compensation has historically been provided to certain of our employees under share option, bonus and other share award plans. All share-award plans are equity settled, except for certain awards issued in the form of stock appreciation rights (“SARs”) to employees in China, where local regulations necessitate a cash-settled award. These SARs are therefore accounted for as liabilities rather than equity.
We recognize compensation expense based on the fair value of the awards, measured using either the share price on the date of grant, a Black-Scholes option-pricing model or a Monte-Carlo valuation model, depending on the nature of the award. Fair value is determined at the date of grant and reflects market and performance conditions and all non-vesting conditions.
Generally, the compensation expense for each separately vesting portion of the award is recognized on a straight-line basis over the vesting period for that portion of the award. Compensation expense is recognized for awards containing market conditions regardless of whether or not the market condition is met, whereas compensation expense for awards containing performance conditions is recognized only to the extent that it is probable that those performance conditions will be met. Adjustments are made to reflect expected and actual forfeitures during the vesting period due to failure to satisfy service conditions or performance conditions.
For equity awards, fair value is not subsequently remeasured unless the conditions on which the award was granted are modified. An amount corresponding to the compensation expense for equity awards is recognized in equity as additional paid in capital.
For liability awards, the fair value is remeasured each period and the change in fair value is recognized in net income for the period with a corresponding change in the outstanding liability.
P. Income taxes
Current tax is the amount of tax payable or receivable in respect of the taxable income for the period. Taxable income differs from financial reporting income because it excludes items of income or expense recognized for financial reporting purposes that are either not taxable or deductible for tax purposes or are taxable or deductible in other periods. Current tax is calculated using tax rates that have been enacted at the balance sheet date.
Management assesses unrecognized tax benefits based upon an evaluation of the facts, circumstances and information available at the balance sheet date. Provision is made for unrecognized tax benefits to the extent that the amounts previously taken or expected to be taken in tax returns exceeds the tax benefits that are recognized in the consolidated financial statements in respect of the tax positions. A tax benefit is recognized in the consolidated financial statements only if management considers that it is more likely than not that the tax position will be sustained on examination by the relevant tax authority solely on the technical merits of the position and is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement assuming that the tax authority has full knowledge of all relevant information. Provisions for unrecognized tax benefits are reviewed regularly and are adjusted to reflect events such as the expiration of limitation periods for assessing tax, guidance given by the tax authorities and court decisions.
Interest and penalties relating to unrecognized tax benefits are accrued in accordance with the applicable tax legislation on any excess of the tax benefit claimed or expected to be claimed in a tax return and the tax benefit recognized in the consolidated financial statements. Interest and penalties are recognized as a component of income tax benefit (expense) in the consolidated statements of operations and accrued interest and penalties are included under the related taxes payable line in the consolidated balance sheets.
Deferred tax assets and liabilities are recognized based on the expected future tax consequences of the difference between the financial statement carrying amount and the respective tax basis. Deferred taxes are measured on the enacted rates expected to apply to taxable income at the time the difference is anticipated to reverse. Deferred tax assets are reduced through the establishment of a valuation allowance if it is more likely than not that the deferred tax asset will not be realized taking into account the timing and amount of the reversal of taxable temporary differences, expected future taxable income and tax planning strategies.
Deferred tax is provided on taxable temporary differences arising on investments in foreign subsidiaries, except where we intend, and are able, to reinvest such amounts on a permanent basis or to remit such amounts in a tax-free manner.
Q. Use of estimates
The preparation of consolidated financial statements under U.S. GAAP requires us to make assumptions and estimates concerning the future that affect the reported amounts of assets, liabilities, revenue and expenses. Estimates and assumptions are particularly important in accounting for items such as the timing and amount of revenue recognition, rebates, impairment of long-lived assets, intangible assets and goodwill, inventory valuation, financial instruments, expected credit losses, product warranties, income taxes and post-retirement benefits. Estimates and assumptions used are based on factors such as historical experience, observance of trends in the industries in which we operate and information available from our customers and other outside sources.
Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after December 28, 2024 may result in actual outcomes that differ from those contemplated by our assumptions and estimates.
v3.25.0.1
Recent accounting pronouncements not yet adopted
12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Recent accounting pronouncements not yet adopted Recent accounting pronouncements not yet adopted
The following accounting pronouncements are relevant to Gates’ operations but have not yet been adopted.
Accounting Standards Update (“ASU”) 2024-03 “Income Statement - Reporting Comprehensive Income: Expense Disaggregation Disclosures”
In November 2024, the Financial Accounting Standards Board (“FASB”) issued an ASU to require disclosure of specified information about certain expense amounts comprising of Cost of sales, and Selling, general and administrative expenses, as well as qualitative description of the remaining expense amounts. The amendments in this update are intended to provide investors with additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods. The updated standard is effective for our annual periods beginning in Fiscal 2027 and interim periods beginning in the first quarter of Fiscal 2028, with early adoption permitted. We are currently evaluating the impact the updated standard will have on our consolidated financial statements and disclosures.
ASU 2023-06 “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative
In October 2023, the FASB issued an ASU, to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification (“ASC”). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K as announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. We do not expect the application of this standard to have a material impact on our consolidated financial statements and disclosures.
ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures
In December 2023, the FASB issued an ASU that requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The updated standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The updated standard is effective for our annual periods beginning in Fiscal 2025 and interim periods beginning in the first quarter of Fiscal 2026, with early adoption permitted. We are currently evaluating the impact the updated standard will have on our financial statement disclosures.
v3.25.0.1
Segment information
12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Segment information Segment information
A. Background
The segment information provided in these consolidated financial statements reflects the information that is used by the chief operating decision maker for the purposes of making decisions about allocating resources and in assessing the performance of each segment. The chief executive officer (“CEO”) of Gates serves as the chief operating decision maker. These decisions are based principally on net sales and Adjusted EBITDA (defined below).
B. Operating segments and segment assets
Gates manufactures a wide range of power transmission and fluid power products and components for a large variety of industrial and automotive applications, both in the aftermarket and OEM channels, throughout the world.
Our reportable segments are identified on the basis of our primary product lines, as this is the basis on which information is provided to the CEO for the purposes of allocating resources and assessing the performance of Gates’ businesses. Our operating and reporting segments are therefore Power Transmission and Fluid Power.
Segment asset information is not provided to the chief operating decision maker and therefore segment asset information has not been presented. Due to the nature of Gates’ operations, cash generation and profitability are viewed as the key measures rather than an asset-based measure.
C. Segment net sales and disaggregated net sales
Sales between reporting segments and the impact of such sales on Adjusted EBITDA for each segment are not included in internal reports presented to the CEO and have therefore not been included below.
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Power Transmission
$2,108.1 $2,191.2 $2,173.7 
Fluid Power
1,300.1 1,379.0 1,380.5 
Net sales$3,408.2 $3,570.2 $3,554.2 
Our commercial function is organized by region and therefore, in addition to reviewing net sales by our reporting segments, the CEO also reviews net sales information disaggregated by region and by channels.
The following table summarizes our net sales by key geographic region:
For the year ended
December 28, 2024December 30, 2023December 31, 2022
(dollars in millions)
Power Transmission
Fluid Power
Power Transmission
Fluid Power
Power Transmission
Fluid Power
U.S.$568.1 $688.0 $591.5 $724.5 $636.8 $733.3 
North America, excluding the U.S.239.8 195.0 230.1 214.3 205.6 208.8 
South America104.3 38.1 110.7 43.2 92.1 49.7 
United Kingdom ("U.K.")37.0 67.8 44.4 71.4 45.1 68.9 
Luxembourg252.7 86.6 247.8 88.9 195.4 91.7 
EMEA(1), excluding the U.K. and Luxembourg
337.3 103.8 382.3 121.6 402.9 108.3 
East Asia & India277.8 80.6 287.1 79.7 295.5 75.4 
Greater China291.1 40.2 297.3 35.4 300.3 44.4 
Net sales$2,108.1 $1,300.1 $2,191.2 $1,379.0 $2,173.7 $1,380.5 
(1)    Europe, Middle East and Africa (“EMEA”).
The following table summarizes our segment net sales into OEM and Replacement channels:
For the year ended
December 28, 2024December 30, 2023December 31, 2022
(dollars in millions)Power TransmissionFluid PowerPower TransmissionFluid PowerPower TransmissionFluid Power
Replacement$1,393.0 $910.0 $1,389.2 $909.0 $1,347.9 $900.6 
OEM715.1 390.1 802.0 470.0 825.8 479.9 
Net sales$2,108.1 $1,300.1 $2,191.2 $1,379.0 $2,173.7 $1,380.5 
D. Measure of segment profit or loss
The CEO uses Adjusted EBITDA, as defined below, to measure the profitability of each segment. Adjusted EBITDA is, therefore, the measure of segment profit or loss presented in Gates’ segment disclosures.
“EBITDA” represents net income for the period before net interest and other expenses (income), income taxes, depreciation and amortization.
“Adjusted EBITDA” represents EBITDA before certain items that are considered to hinder comparison of the performance of our businesses on a period-over-period basis or with other businesses. During the periods presented, the items excluded from EBITDA in computing Adjusted EBITDA primarily included:
•    loss on deconsolidation of previously controlled subsidiary;
•    non-cash charges in relation to share-based compensation;
•    transaction-related expenses incurred in relation to major corporate transactions, including the acquisition of businesses, and equity and debt transactions;
•    asset impairments;
•    restructuring expenses, including severance-related expenses;
•    credit loss related to a customer bankruptcy;
•    cybersecurity incident expenses; and
•    inventory adjustments related to certain inventories accounted for on a Last-in First-out (“LIFO”) basis.
Adjusted EBITDA by segment was as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Power Transmission$468.7 $460.6 $404.0 
Fluid Power
292.4 286.4 276.6 
Adjusted EBITDA$761.1 $747.0 $680.6 
The table below represents the segment profit or loss provided to the CEO on a quarterly basis:
For the year ended
December 28, 2024December 30, 2023December 31, 2022
Power TransmissionFluid PowerTotalPower TransmissionFluid PowerTotalPower TransmissionFluid PowerTotal
Net sales$2,108.1 $1,300.1 $3,408.2 $2,191.2 $1,379.0 $3,570.2 $2,173.7 $1,380.5 $3,554.2 
Adjusted cost of sales (1)
(1,241.7)(783.9)(2,025.6)(1,333.3)(870.2)(2,203.5)(1,371.3)(910.6)(2,281.9)
Adjusted selling, general and administrative expenses (2)
(449.7)(270.8)(720.5)(458.2)(276.9)(735.1)(449.9)(240.8)(690.7)
Depreciation and software amortization52.1 47.0 99.1 50.4 48.4 98.8 51.5 47.5 99.0 
Other adjustments:
Credit (gain) loss related to customer bankruptcy (included in SG&A) (3)
(0.1)— (0.1)7.4 4.0 11.4 — — — 
Cybersecurity incident expenses (4)
— — — 3.1 2.1 5.2 — — — 
Adjusted EBITDA$468.7 $292.4 $761.1 $460.6 $286.4 $747.0 $404.0 $276.6 $680.6 
(1)    Adjusted cost of sales excluded inventory impairments and adjustments primarily related to the reversal of the adjustment to remeasure certain inventories on a LIFO basis, and restructuring related expenses (included in cost of sales).
(2)    Adjusted selling, general and administrative expenses excluded acquired intangible assets amortization, share-based compensation expense, and restructuring related expenses (included in SG&A).
(3)    On January 31, 2023, one of our customers filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In connection with the bankruptcy proceedings, we preliminarily evaluated our potential risk and exposure relating to our outstanding pre-petition accounts receivable balance from the customer and recorded an initial pre-tax charge to reflect our estimated recovery. We continue to monitor the circumstances surrounding the bankruptcy and adjust our estimate as necessary.
(4)    On February 11, 2023, Gates determined that it was the target of a malware attack. Cybersecurity incident expenses include legal, consulting, and other costs incurred as a direct result of this incident, some of which may be partially offset by insurance recoveries.
Reconciliation of net income from continuing operations to Adjusted EBITDA:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Income from continuing operations before taxes328.0 285.3 257.8 
Interest expense155.8 163.2 139.4 
Loss on deconsolidation of Russian subsidiary (1)
12.7 — — 
Other (income) expenses(17.8)14.1 (13.2)
Operating income from continuing operations478.7 462.6 384.0 
Depreciation and amortization216.9 217.5 217.2 
Transaction-related expenses (2)
3.3 2.2 2.1 
Asset impairments— 0.1 1.1 
Restructuring expenses6.5 11.6 9.5 
Share-based compensation expense28.8 27.4 44.3 
Inventory impairments and adjustments (included in cost of sales)(3)
22.3 7.4 20.9 
Restructuring related expenses (included in cost of sales)1.8 0.4 0.8 
Restructuring related expenses (included in SG&A)2.9 1.0 0.5 
Credit (gain) loss related to customer bankruptcy (included in SG&A) (4)
(0.1)11.4 — 
Cybersecurity incident expenses (5)
— 5.2 — 
Other items not directly related to current operations— 0.2 0.2 
Adjusted EBITDA$761.1 $747.0 $680.6 

(1)    In July 2022, as a result of the conflict between Russia and Ukraine, Gates suspended our operations in Russia. As of September 28, 2024, we deconsolidated the Russian subsidiary upon loss of control and recognized a deconsolidation loss.
(2)    Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.
(3)    Inventory impairments and adjustments include the reversal of the adjustment to remeasure certain inventories on a LIFO basis. The recent inflationary environment has caused LIFO values to drop below FIFO values because LIFO measurement results in the more recent inflated costs being matched against current sales while historical, lower costs are retained in inventories.
(4)    On January 31, 2023, one of our customers filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In connection with the bankruptcy proceedings, we preliminarily evaluated our potential risk and exposure relating to our outstanding pre-petition accounts receivable balance from the customer and recorded an initial pre-tax charge to reflect our estimated recovery. We continue to monitor the circumstances surrounding the bankruptcy and adjust our estimate as necessary.
(5)    On February 11, 2023, Gates determined that it was the target of a malware attack. Cybersecurity incident expenses include legal, consulting, and other costs incurred as a direct result of this incident, some of which may be partially offset by insurance recoveries.
E. Selected geographic information
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Property, plant and equipment, net by geographic location
U.S.$154.9 $165.0 
Rest of North America116.3 129.1 
U.K.30.4 29.5 
Rest of EMEA151.1 158.8 
East Asia and India36.4 39.2 
Greater China67.9 81.9 
South America22.5 26.5 
$579.5 $630.0 
F. Information about major customers
Gates has a significant concentration of sales in the U.S., which accounted for 38.9% of Gates’ net sales by destination from continuing operations during Fiscal 2024, compared to 38.9% during Fiscal 2023 and 39.6% during Fiscal 2022. During Fiscal 2024, Fiscal 2023 and Fiscal 2022, no single customer accounted for more than 10% of Gates’ net sales. Two customers of our North America businesses accounted for 13.7% and 6.1%, respectively, of our total trade accounts receivable balance as of December 28, 2024, compared to 12.5% and 9.6%, respectively, as of December 30, 2023. These concentrations are due to the extended payment terms common in the industry in which these businesses operate.
v3.25.0.1
Restructuring and restructuring related expenses
12 Months Ended
Dec. 28, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and restructuring related expenses Restructuring and restructuring related expenses
Gates continues to undertake various restructuring and other 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 consolidated statements as set forth below. Expenses incurred in relation to certain of these actions qualify as restructuring expenses under U.S. GAAP.
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Restructuring expenses:
—Severance expense $0.5 $3.7 $4.9 
—Non-severance labor and benefit expenses0.5 1.2 0.5 
—Consulting expenses3.2 3.4 1.8 
—Other net restructuring expenses 2.3 3.3 2.3 
6.5 11.6 9.5 
Restructuring expenses in asset impairments:
—Impairment of fixed and other assets— 0.1 1.1 
Restructuring expenses in cost of sales:
—Impairment of inventory— 0.1 1.5 
Total restructuring expenses$6.5 $11.8 $12.1 
Other restructuring related expenses:
—Severance and restructuring related expenses included in cost of sales$1.8 $0.4 $0.8 
—Severance and restructuring related expenses included in SG&A2.9 1.0 0.5 
Total restructuring related expenses$4.7 $1.4 $1.3 
Restructuring and other restructuring related expenses during Fiscal 2024 included $4.1 million of costs related to the relocation of certain production activities and reorganization of our operations in Mexico. Additionally, we incurred $1.6 million in severance and other costs related to the consolidation of production activities across certain North American plants. Other costs related to restructuring and restructuring related initiatives incurred during Fiscal 2024 included legal and consulting expenses, and costs associated with prior period facility closures or relocations in several countries.
Restructuring and other restructuring related expenses during Fiscal 2023 related primarily to relocating certain production activities in China and Mexico, which included severance and other costs of $4.5 million and $3.0 million, respectively. Additionally, we incurred $0.7 million in severance and other costs related to optimizing production in Europe and $0.9 million of non-severance labor and benefit costs related to relocation and integration of certain support functions into our regional shared service center in Europe. Other restructuring costs during the period included $3.4 million for legal and consulting expenses, as well as activities associated with prior period facility closures or relocations in several countries.
Restructuring and other restructuring related expenses during Fiscal 2022, related primarily to our ongoing European reorganization, including $2.5 million of labor, severance, and other costs related to relocating certain production activities within Europe during Fiscal 2022, in addition to severance costs of $2.4 million during the year related to relocation and integration of certain support functions into our regional shared service center. We also incurred $3.5 million of costs during Fiscal 2022 in relation to the suspension of our operations in Russia, which included severance costs of $0.7 million, an impairment of inventories of $1.1 million (recognized in cost of sales), and an impairment of fixed and other assets of $1.1 million (recognized in asset impairments). Other restructuring costs incurred during the period related to facility relocations and other legal and consulting costs.
Restructuring activities
As indicated above, restructuring expenses, as defined under U.S. GAAP, form a subset of our total expenses related to restructuring and other restructuring related initiatives. These expenses include the impairment of inventory, which is recognized in cost of sales. Analyzed by segment, our restructuring expenses were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Power Transmission$1.8 $7.1 $5.8 
Fluid Power4.7 4.7 6.3 
Continuing operations$6.5 $11.8 $12.1 
The following summarizes the reserve for restructuring expenses for the year ended December 28, 2024 and December 30, 2023, respectively:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
Balance as of the beginning of the period$5.1 $7.5 
Utilized during the period(8.7)(14.1)
Charge for the period7.2 12.4 
Released during the period(0.7)(0.8)
Foreign currency translation(0.1)0.1 
Balance as of the end of the period$2.8 $5.1 
Restructuring reserves, which are expected to be utilized during 2025, are included in the consolidated balance sheet within the accrued expenses and other current liabilities line.
v3.25.0.1
Income taxes
12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
Provision for income taxes
Gates Industrial Corporation plc is domiciled in the United Kingdom. Income from continuing operations before income taxes is summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
U.K.$87.8 $26.4 $(11.0)
U.S.44.0 (58.2)17.1 
Other foreign196.2 317.1 251.7 
Income from continuing operations before income taxes$328.0 $285.3 $257.8 
Income tax expense on income from continuing operations analyzed by tax jurisdiction is as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Current tax
U.K.$(7.6)$0.2 $(1.7)
U.S.44.5 18.9 42.0 
Other foreign82.7 74.9 54.3 
Total current tax expense$119.6 $94.0 $94.6 
Deferred income tax
U.K.$16.1 $9.0 $(2.5)
U.S.(36.0)(48.6)(54.5)
Other foreign7.8 (26.1)(22.7)
Total deferred income tax (benefit)(12.1)(65.7)(79.7)
Income tax expense$107.5 $28.3 $14.9 
Reconciliation of the applicable statutory income tax rate to the reported effective income tax rate:
For the year ended
December 28,
2024
December 30,
2023
December 31,
2022
U.K. corporation tax rate25.0 %23.5 %19.0 %
Effect of:
—State tax provision, net of Federal benefit0.3 %(1.5 %)(0.2 %)
—Provision for unrecognized income tax benefits(3.2 %)(4.3 %)(9.8 %)
—Company-owned life insurance(3.1 %)(3.5 %)(3.1 %)
—Tax on international operations(1)
3.3 %2.6 %20.6 %
—Manufacturing incentives(2)
(0.2 %)(4.7 %)(3.9 %)
—Change in valuation allowance(3)
(13.9 %)(3.1 %)(20.6 %)
—Deferred income tax rate changes(4)
20.7 %0.5 %(0.1 %)
—Currency exchange rate movements2.9 %0.6 %1.9 %
—Other permanent differences1.0 %(0.2 %)2.0 %
Reported effective income tax rate32.8 %9.9 %5.8 %
(1)“Tax on international operations” includes U.S. tax on foreign earnings and unremitted earnings of foreign subsidiaries, foreign deferred tax adjustments, and effects of global funding structures and differences between statutory and foreign tax rates. Fiscal 2022 includes $22.6 million expiration of U.S. foreign tax credits that had a full valuation allowance against them.
(2)“Manufacturing incentives” for Fiscal 2024 totaled $0.7 million, primarily related to incentives generated in the U.S. and Canada. Fiscal 2023 totaled $13.3 million, related to incentives generated in Türkiye, Poland and the U.S. For Fiscal 2022 totaled $10.0 million, primarily related to $6.7 million of incentives generated in Türkiye and the U.S.
(3)“Change in valuation allowance” is comprised primarily of:
For the year ended
Expense (benefit)December 28,
2024
December 30,
2023
December 31,
2022
Luxembourg currency revaluation on indefinite-lived net operating losses$(9.4)$(5.7)$(14.8)
Luxembourg deferred income tax rate change$(42.9)$— $— 
Poland tax credits$3.7 $— $— 
Türkiye net operating losses$5.5 $— $— 
U.S. foreign tax credits$(3.2)$0.4 $(39.9)
U.S. finite-lived net operating losses$3.4 $(2.1)$— 
(4)“Deferred income tax rate changes” includes Luxembourg rate changes which totaled $67.0 million, of which $44.2 million had a full valuation allowance against them.
Deferred income tax assets (liabilities)
Deferred income tax assets (liabilities) recognized by the Company were as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Deferred income tax assets:
Accounts receivable$34.0 $39.4 
Lease liabilities40.9 41.6 
Accrued expenses35.8 35.6 
Post-retirement benefit obligations16.9 17.5 
Compensation22.8 26.4 
Net operating losses1,478.0 1,587.9 
Capital losses190.1 192.5 
Credits67.9 69.8 
Interest212.3 186.5 
Other items8.5 8.0 
$2,107.2 $2,205.2 
Valuation allowances(1,240.6)(1,288.8)
Total deferred income tax assets$866.6 $916.4 
Deferred income tax liabilities:
Inventories$(12.3)$(9.7)
Property, plant and equipment(22.1)(29.3)
Lease right-of-use assets(36.1)(36.1)
Intangible assets(278.7)(316.9)
Undistributed earnings(20.7)(21.4)
Other items— — 
Total deferred income tax liabilities$(369.9)$(413.4)
Net deferred income tax assets$496.7 $503.0 
As of December 28, 2024, the Company had the following loss and credit carryforward amounts:
Gates had net operating losses amounting to $6,264.2 million consisting primarily of $6,017.1 million in Luxembourg, and $131.2 million in the U.S. (federal and state). Operating losses of $2,987.8 million can be carried forward indefinitely consisting primarily of $2,897.1 million in Luxembourg, and $128.1 million in the U.S. and other foreign jurisdictions. The remaining losses of $3,239.0 million have expiration dates between 2024 and 2043, consisting primarily of $3,120.1 million in Luxembourg, and $118.9 million in the U.S. and other foreign jurisdictions. We recognized a related deferred income tax asset of $513.3 million after valuation allowance of $964.7 million;
Gates had capital losses amounting to $761.9 million, consisting of $736.3 million in the U.K., and $25.6 million in the U.S. Capital losses of $750.1 million can be carried forward indefinitely, primarily consisting of $736.3 million in the U.K, and $11.8 million in the U.S. that expire in 2026. We recognized no related deferred income tax asset after valuation allowance of $190.1 million;
Gates had tax credits amounting to $67.9 million, consisting primarily of $61.2 million in U.S. federal foreign tax credits and $6.7 million of other credits, primarily in Poland related to special economic zone business credits which expire between 2025 and 2027. We recognized a related deferred income tax asset of $9.4 million after valuation allowance of $58.5 million; and
Gates had interest expense deductions which can be carried forward amounting to $903.6 million, consisting primarily of $632.3 million in the U.S., $216.7 million in Luxembourg, and $54.6 million in other foreign jurisdictions. Interest expense deductions in these jurisdictions can be carried forward indefinitely. We recognized a related deferred tax asset of $189.9 million after valuation allowance of $22.4 million.
As of December 28, 2024, income and withholding taxes in the various tax jurisdictions in which Gates operates have not been provided on approximately $1,343.3 million of taxable temporary differences related to the investments in the Company’s subsidiaries. These temporary differences represent the estimated excess of the financial reporting over the tax basis in our investments in those subsidiaries, which are primarily the result of purchase accounting adjustments. These temporary differences are not expected to reverse in the foreseeable future but could become subject to income and withholding taxes in the various tax jurisdictions in which Gates operates if they were to reverse. The amount of unrecognized deferred income tax liability on these taxable temporary differences has not been determined because the hypothetical calculation is not practicable due to the uncertainty as to how they may reverse. However, Gates has recognized a deferred income tax liability of $20.7 million on taxable temporary differences related to undistributed earnings of the Company’s subsidiaries.
Recoverability of Deferred Income Tax Assets and Liabilities
We recognize deferred tax assets and liabilities for future tax consequences arising from differences between the carrying amounts of existing assets and liabilities under U.S. GAAP and their respective tax bases, and for net operating loss carryforwards and tax credit carryforwards. We evaluate the recoverability of our deferred tax assets, weighing all positive and negative evidence, and are required to establish or maintain a valuation allowance for these assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized.
As of each reporting date, we consider new evidence, both positive and negative, that could impact our view with regard to the future realization of deferred tax assets. We maintain our positions with regard to future realization of deferred tax assets, including those with respect to which we continue maintaining valuation allowances, until there is sufficient new evidence to support a change in expectations. Such a change in expectations could arise due to many factors, including those impacting our forecasts of future earnings, as well as changes in the international tax laws under which we operate and tax planning. It is not reasonably possible to forecast any such changes at the present time, but it is possible that, should they arise, our view of their effect on the future realization of deferred tax assets may materially impact our financial statements.
After weighing all of the evidence, giving more weight to the evidence that was objectively verifiable, we determined in Fiscal 2024 that it was more likely than not that deferred income tax assets of $5.5 million in Türkiye related to net operating losses, $3.7 million in Poland related to special economic zone business credits, and $3.4 million in the U.S. related to net operating losses, are not realizable. Similarly, we determined in Fiscal 2024 that it is more likely than not that deferred income tax assets in the U.S. related to foreign tax credits totaling $3.2 million are realizable as a result of changes in estimates of taxable profits against which these credits can be utilized.
In Fiscal 2023, we determined that it was more likely than not that deferred income tax assets in the U.S. related to net operating losses totaling $2.1 million are realizable as a result of changes in estimates of taxable profits against which these losses can be utilized. In Fiscal 2022, we determined that it was more likely than not that deferred income tax assets in the U.S. related to foreign tax credits totaling $15.3 million are realizable as a result of changes in estimates of taxable profits against which these credits can be utilized.
Unrecognized income tax benefits
The following is a reconciliation of the gross beginning and ending amount of unrecognized income tax benefits, excluding interest and penalties:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
At the beginning of the period$72.5 $76.0 $104.6 
Increases for tax positions related to the current period10.7 8.5 6.5 
Increases for tax positions related to prior periods4.0 1.8 0.4 
Decreases for tax positions related to prior periods(11.7)(15.0)— 
Decreases related to settlements(2.2)— (2.8)
Decreases due to lapsed statute of limitations— (2.7)(27.6)
Foreign currency translation(4.9)3.9 (5.1)
At the end of the period$68.4 $72.5 $76.0 
Unrecognized income tax benefits represent the difference between the income tax benefits that we are able to recognize for financial reporting purposes and the income tax benefits that we have recognized or expect to recognize in filed tax returns.
If all unrecognized income tax benefits were recognized, the net impact on the provision for income taxes which would impact the annual effective tax rate would be $37.3 million, including all competent authority offsets.
As of December 28, 2024, December 30, 2023, and December 31, 2022, Gates had accrued $17.7 million, $15.6 million, and $13.7 million, respectively, for the payment of worldwide interest and penalties on unrecognized income tax benefits, which are not included in the table above. Gates recognizes interest and penalties relating to unrecognized income tax benefits in the provision for income tax expense.
The primary driver of the reduction in unrecognized income tax benefits during Fiscal 2024 relates to a change in underlying facts and audit settlements. We believe that it is reasonably possible that a decrease of up to $23.4 million in unrecognized income tax benefits will occur in the next 12 months as a result of the expiration of the statutes of limitations in addition to a pending administrative proceeding.
As of December 28, 2024, Gates remains subject to examination in the US for tax years 2016 to 2024 and in other major jurisdictions for tax years 2008 to 2024.
v3.25.0.1
Earnings per share
12 Months Ended
Dec. 28, 2024
Earnings Per Share [Abstract]  
Earnings per share Earnings per share
Basic earnings per share represents net income attributable to shareholders divided by the weighted average number of shares outstanding during the period. Diluted earnings per share considers the dilutive effect of potential shares, unless the inclusion of the potential shares would have an anti-dilutive effect. The treasury stock method is used to determine the potential dilutive shares resulting from assumed exercises of equity-related instruments.
The computation of earnings per share is presented below:
For the year ended
(dollars in millions, except share numbers and per share amounts)
December 28,
2024
December 30,
2023
December 31,
2022
Net income attributable to shareholders
$194.9 $232.9 $220.8 
Weighted average number of shares outstanding
259,483,897 271,880,047 284,063,083 
Dilutive effect of share-based awards
5,191,669 3,768,281 3,523,127 
Diluted weighted average number of shares outstanding
264,675,566 275,648,328 287,586,210 
Number of anti-dilutive shares excluded from diluted earnings per share calculation1,949,256 4,417,967 7,538,260 
Basic earnings per share
$0.75 $0.86 $0.78 
Diluted earnings per share
$0.74 $0.84 $0.77 
v3.25.0.1
Inventories
12 Months Ended
Dec. 28, 2024
Inventory Disclosure [Abstract]  
Inventories Inventories
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Raw materials and supplies$194.3 $168.2 
Work in progress43.1 43.3 
Finished goods438.6 435.7 
Total inventories$676.0 $647.2 
v3.25.0.1
Property, plant and equipment
12 Months Ended
Dec. 28, 2024
Property, Plant and Equipment [Abstract]  
Property, plant and equipment Property, plant and equipment
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Cost
Land and buildings$322.0 $335.0 
Machinery, equipment and vehicles991.2 996.8 
Assets under construction63.3 55.1 
1,376.5 1,386.9 
Less: Accumulated depreciation and impairment(797.0)(756.9)
Total$579.5 $630.0 
During Fiscal 2024, the depreciation expense in relation to the above assets was $88.3 million, compared to $87.7 million during Fiscal 2023 and $88.8 million during Fiscal 2022.
Property, plant and equipment includes assets held under finance leases with a carrying amount of $3.2 million as of December 28, 2024, compared to $2.7 million as of December 30, 2023.
Gates’ secured debt is jointly and severally, irrevocably and fully and unconditionally guaranteed by certain of its subsidiaries and are secured by liens on substantially all of their assets, including property, plant and equipment.
v3.25.0.1
Goodwill
12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
(dollars in millions)
Power
Transmission
Fluid
Power
Total
Cost and carrying amount
As of December 31, 2022$1,315.2 $665.9 $1,981.1 
Foreign currency translation23.3 34.3 57.6 
As of December 30, 20231,338.5 700.2 2,038.7 
Foreign currency translation(81.0)(48.8)(129.8)
As of December 28, 2024$1,257.5 $651.4 $1,908.9 
v3.25.0.1
Intangible assets
12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible assets Intangible assets
As of December 28, 2024As of December 30, 2023
(dollars in millions)
CostAccumulated
amortization and
impairment
NetCostAccumulated
amortization and
impairment
Net
Finite-lived:
—Customer relationships
$1,921.5 $(1,194.7)$726.8 $2,003.6 $(1,127.7)$875.9 
—Technology
90.5 (90.5) 90.6 (90.3)0.3 
—Capitalized software
138.2 (85.8)52.4 117.3 (76.8)40.5 
2,150.2 (1,371.0)779.2 2,211.5 (1,294.8)916.7 
Indefinite-lived:
—Brands and trade names
513.4 (44.0)469.4 513.4 (44.0)469.4 
Total intangible assets
$2,663.6 $(1,415.0)$1,248.6 $2,724.9 $(1,338.8)$1,386.1 
During Fiscal 2024, the amortization expense recognized in respect of intangible assets was $128.6 million, compared to $129.8 million for Fiscal 2023 and $128.4 million for Fiscal 2022. In addition, movements in foreign currency exchange rates resulted in a decrease in the net carrying value of total intangible assets of $32.5 million in Fiscal 2024, compared to an increase of $13.8 million in Fiscal 2023.
The amortization expense for the next five years is estimated to be as follows:
(dollars in millions)Total
Fiscal year:
—2025$126.4 
—2026$128.1 
—2027$122.6 
—2028$118.4 
—2029$118.7 
v3.25.0.1
Leases
12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
Leases Leases
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Lease expenses
Operating lease expenses$36.2 $33.9 $30.5 
Finance lease expenses:
—Finance lease amortization expenses1.3 1.2 1.2 
—Interest on lease liabilities0.1 0.1 0.1 
Short-term lease expenses8.0 8.2 7.2 
Variable lease expenses6.8 6.5 6.0 
Total lease expenses$52.4 $49.9 $45.0 
Other information
Right-of-use assets obtained in exchange for new operating lease liabilities$47.6 $10.2 $34.9 
Assets obtained in exchange for new finance lease liabilities$1.7 $0.3 $0.8 
Cash paid for amounts included in the measurement of lease liabilities:
—Operating cash flows from finance leases$0.1 $— $0.1 
—Operating cash flows from operating leases33.4 30.7 27.6 
—Financing cash flows from finance leases1.1 1.0 1.3 
$34.6 $31.7 $29.0 
Weighted-average remaining lease term — finance leases2.9 years2.5 years2.9 years
Weighted-average remaining lease term — operating leases8.3 years7.9 years8.5 years
Weighted-average discount rate — finance leases7.2 %4.2 %3.2 %
Weighted-average discount rate — operating leases7.5 %5.3 %5.4 %
Maturity analysis of liabilities
(dollars in millions)
Operating leasesFinance leases
Next 12 months$31.6 $1.0 
Year 228.2 0.7 
Year 324.8 0.4 
Year 422.2 0.2 
Year 519.0 0.1 
Year 6 and beyond77.5 — 
Total lease payments203.3 2.4 
Interest(53.0)(0.2)
Total present value of lease liabilities$150.3 $2.2 
Balance sheet presentation of leases as of December 28, 2024 and December 30, 2023
As of December 28, 2024As of December 30, 2023
(dollars in millions)
Operating leasesFinance leasesOperating leasesFinance leases
Right-of-use assets$139.4 $3.2 $120.1 $2.7 
Short-term lease liabilities (included in “Accrued expenses and other current liabilities”)$24.5 $0.7 $22.2 $0.6 
Long-term lease liabilities125.8 1.5 109.5 1.1 
Total lease liabilities$150.3 $2.2 $131.7 $1.7 
Right-of-use assets arising under finance leases are presented in the property, plant and equipment, net line item in the consolidated balance sheet. The amortization of right-of-use operating assets during Fiscal 2024 was $24.6 million, compared to $23.9 million and $22.9 million during Fiscal 2023 and Fiscal 2022, respectively. This is included in the change in prepaid expenses and other assets line in the consolidated statement of cash flows.
Leases Leases
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Lease expenses
Operating lease expenses$36.2 $33.9 $30.5 
Finance lease expenses:
—Finance lease amortization expenses1.3 1.2 1.2 
—Interest on lease liabilities0.1 0.1 0.1 
Short-term lease expenses8.0 8.2 7.2 
Variable lease expenses6.8 6.5 6.0 
Total lease expenses$52.4 $49.9 $45.0 
Other information
Right-of-use assets obtained in exchange for new operating lease liabilities$47.6 $10.2 $34.9 
Assets obtained in exchange for new finance lease liabilities$1.7 $0.3 $0.8 
Cash paid for amounts included in the measurement of lease liabilities:
—Operating cash flows from finance leases$0.1 $— $0.1 
—Operating cash flows from operating leases33.4 30.7 27.6 
—Financing cash flows from finance leases1.1 1.0 1.3 
$34.6 $31.7 $29.0 
Weighted-average remaining lease term — finance leases2.9 years2.5 years2.9 years
Weighted-average remaining lease term — operating leases8.3 years7.9 years8.5 years
Weighted-average discount rate — finance leases7.2 %4.2 %3.2 %
Weighted-average discount rate — operating leases7.5 %5.3 %5.4 %
Maturity analysis of liabilities
(dollars in millions)
Operating leasesFinance leases
Next 12 months$31.6 $1.0 
Year 228.2 0.7 
Year 324.8 0.4 
Year 422.2 0.2 
Year 519.0 0.1 
Year 6 and beyond77.5 — 
Total lease payments203.3 2.4 
Interest(53.0)(0.2)
Total present value of lease liabilities$150.3 $2.2 
Balance sheet presentation of leases as of December 28, 2024 and December 30, 2023
As of December 28, 2024As of December 30, 2023
(dollars in millions)
Operating leasesFinance leasesOperating leasesFinance leases
Right-of-use assets$139.4 $3.2 $120.1 $2.7 
Short-term lease liabilities (included in “Accrued expenses and other current liabilities”)$24.5 $0.7 $22.2 $0.6 
Long-term lease liabilities125.8 1.5 109.5 1.1 
Total lease liabilities$150.3 $2.2 $131.7 $1.7 
Right-of-use assets arising under finance leases are presented in the property, plant and equipment, net line item in the consolidated balance sheet. The amortization of right-of-use operating assets during Fiscal 2024 was $24.6 million, compared to $23.9 million and $22.9 million during Fiscal 2023 and Fiscal 2022, respectively. This is included in the change in prepaid expenses and other assets line in the consolidated statement of cash flows.
v3.25.0.1
Derivative financial instruments
12 Months Ended
Dec. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative financial instruments Derivative financial instruments
We are exposed to certain financial risks relating to our ongoing business operations. From time to time, we use derivative financial instruments, principally foreign currency swaps, forward foreign currency contracts, interest rate caps (options) and interest rate swaps, to reduce our exposure to foreign currency risk and interest rate risk. We do not hold or issue derivatives for speculative purposes and monitor closely the credit quality of the institutions with which we transact.
We recognize derivative instruments as either assets or liabilities in the consolidated balance sheets. We designate certain of our currency swaps as net investment hedges and designate our interest rate caps and interest rate swaps as cash flow hedges. The gain or loss on the designated derivative instrument is recognized in OCI and reclassified into net income in the same period or periods during which the hedged transaction affects earnings.
Derivative instruments that have not been designated in an effective hedging relationship are considered economic hedges, and their change in fair value is recognized in net income in each period.
The period end fair values of derivative financial instruments were as follows:
As of December 28, 2024As of December 30, 2023
(dollars in millions)
Prepaid expenses and other assetsOther
non-
current
assets
Accrued expenses and other
current
liabilities
Other
non-
current
liabilities
NetPrepaid expenses and other assetsOther
non-
current
assets
Accrued expenses and other
current
liabilities
Other 
non-
current
liabilities
Net
Derivatives designated as hedging instruments:
—Currency swaps
$16.3 $1.3 $— $(37.0)$(19.4)$8.5 $— $— $(77.7)$(69.2)
—Interest rate swaps
13.4 0.2 (6.2)(0.3)7.1 29.9 11.8 (9.9)(13.6)18.2 
Derivatives not designated as hedging instruments:
—Currency forward contracts
2.1 — (0.4)— 1.7 3.9 — (1.8)— 2.1 
$31.8 $1.5 $(6.6)$(37.3)$(10.6)$42.3 $11.8 $(11.7)$(91.3)$(48.9)
A. Instruments designated as net investment hedges
We hold cross currency swaps that have been designated as net investment hedges of certain of our European and Chinese operations. In July 2024, we executed a new USD-EUR fixed-to-fixed cross currency swap with a notional principal amount of €277.4 million with a contract term from August 2, 2024 to August 2, 2029. In November 2023, we executed a USD to Chinese Yuan fixed-to-fixed cross currency swap with a notional principal amount of ¥1,784.0 million with a contract term from November 30, 2023 to November 30, 2026. In May 2023, we amended our existing cross currency swaps to transition from a floating rate based on the London Interbank Offered Rate (“LIBOR”) to a floating rate based on a term secured overnight financing rate (“Term SOFR”). During November 2022, we executed additional cross currency swaps with the notional principal amount of €501.6 million and contract term from November 16, 2022 to November 16, 2027. During March 2022, we extended our cross currency swaps existing at that time, which originally matured in March 2022, to now mature on March 31, 2027. As of December 28, 2024, the aggregated notional principal amount of the cross currency swaps was €1,033.5 million and ¥1,784.0 million compared to €756.1 million and ¥1,784.0 million as of December 30, 2023.
In addition, as of January 1, 2022, we had designated €147.0 million of our Euro-denominated debt as a net investment hedge of certain of our European operations. We subsequently reduced the designated amount to €25.0 million during the second quarter of 2022. On November 16, 2022, we extinguished our Euro-denominated term loan and replaced with new Dollar-denominated term loans, and as a result, the net investment hedging designated on our Euro-denominated debt no longer exists.
The fair value gains (losses) before tax recognized in OCI in relation to the instruments designated as net investment hedging instruments were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Net fair value gains (losses) recognized in OCI in relation to:
—Euro-denominated debt
$— $— $10.6 
—Designated cross currency swaps
49.8 (33.2)(16.3)
Total net fair value gains (losses)$49.8 $(33.2)$(5.7)
During Fiscal 2024, a net gain of $14.6 million was recognized in interest expense in relation to our cross currency swaps that have been designated as net investment hedges, compared to a net gain of $10.3 million and $5.8 million during Fiscal 2023 and Fiscal 2022, respectively.
B. Instruments designated as cash flow hedges
We use interest rate swaps and interest rate caps as part of our interest rate risk management strategy to add stability to interest expense and to manage our exposure to interest rate movements. These instruments are all designated as cash flow hedges. As of both December 28, 2024 and December 30, 2023, we held pay-fixed, receive-floating interest rate swaps with an aggregate notional amount of $1,255.0 million. Interest rate swaps with a notional amount of $870.0 million run from June 30, 2020 through June 30, 2025, while interest rate swaps with a notional amount of $385.0 million have the contract term from November 16, 2022 to November 16, 2027.
In May 2023, we amended our then-existing interest rate swaps with a notional amount of $870.0 million to transition from a LIBOR-based floating rate to a Term SOFR-based floating rate.
Our interest rate caps involved the receipt of variable rate payments from a counterparty if interest rates rose above the strike rate on the contract in exchange for a premium, covering the period from July 1, 2019 to June 30, 2023. During August 2022, we early terminated our interest rate caps. As of December 28, 2024 and December 30, 2023, there were no outstanding interest rate caps.
The movements before tax recognized in OCI in relation to our cash flow hedges were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Movement recognized in OCI in relation to:
—Fair value gain on cash flow hedges$13.0 $7.4 $61.7 
—Amortization to net income of prior period fair value losses— 8.9 17.9 
—Reclassification from OCI to net income(34.7)(33.0)(4.0)
Total movement
$(21.7)$(16.7)$75.6 
As of December 28, 2024, we expect to reclassify an estimated $13.4 million of losses in OCI to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions.
C. Derivative instruments not designated as hedging instruments
We do not designate our currency forward contracts, which are used primarily in respect of operational currency exposures related to payables, receivables and material procurement, or the currency swap contracts that are used to manage the currency profile of Gates’ cash as hedging instruments for the purposes of hedge accounting.
As of December 28, 2024 and December 30, 2023, there were no outstanding currency swaps.
As of December 28, 2024, the notional amount of outstanding currency forward contracts that are used to manage operational foreign exchange exposures was $147.5 million, compared to $140.8 million as of December 30, 2023.
The fair value gains recognized in net income in relation to derivative instruments that have not been designated as hedging instruments were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Fair value gains recognized in relation to:
—Currency forward contracts recognized in SG&A
$5.7 $5.6 $6.3 
Total
$5.7 $5.6 $6.3 
v3.25.0.1
Fair value measurement
12 Months Ended
Dec. 28, 2024
Fair Value Disclosures [Abstract]  
Fair value measurement Fair value measurement
A. Fair value hierarchy
We account for certain assets and liabilities at fair value. Topic 820 “Fair Value Measurements and Disclosures” establishes the following hierarchy for the inputs that are used in fair value measurement:
“Level 1” inputs are unadjusted quoted prices in active markets for identical assets or liabilities;
“Level 2” inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
“Level 3” inputs are not based on observable market data (unobservable inputs).
Assets and liabilities that are measured at fair value are categorized in one of the three levels on the basis of the lowest-level input that is significant to its valuation.
B. Financial instruments not held at fair value
Certain financial assets and liabilities are not measured at fair value; however, items such as cash and cash equivalents, restricted cash, drawings under revolving credit facilities and bank overdrafts generally attract interest at floating rates and accordingly their carrying amounts are considered to approximate fair value. Due to their short maturities, the carrying amounts of accounts receivable and accounts payable are also considered to approximate their fair values.
The carrying amount and fair value of our debt are set out below:
As of December 28, 2024As of December 30, 2023
(dollars in millions)
Carrying 
amount
Fair value
Carrying 
amount
Fair value
Current$39.1 $38.7 $36.5 $36.5 
Non-current2,311.5 2,314.3 2,415.0 2,444.7 
$2,350.6 $2,353.0 $2,451.5 $2,481.2 
Debt is comprised principally of borrowings under the secured credit facility and the unsecured senior notes. The dollar term loans under the secured credit facilities pay interest at floating rates, subject to a 0.50% Term SOFR floor further described in Note 15. The fair values of the term loans are derived from a market price, discounted for illiquidity. The unsecured senior notes have fixed interest rates, are traded by “Qualified Institutional Buyers” and certain other eligible investors, and their fair value is derived from their quoted market price.
C. Assets and liabilities measured at fair value on a recurring basis
The following table categorizes the assets and liabilities that are measured at fair value on a recurring basis:
(dollars in millions)
Quoted prices in active
markets (Level 1)
Significant observable
inputs (Level 2)
Total
As of December 28, 2024
Derivative assets$— $33.3 $33.3 
Derivative liabilities$— $(43.9)$(43.9)
Cash equivalents$41.5 $30.8 $72.3 
As of December 30, 2023
Derivative assets$— $54.1 $54.1 
Derivative liabilities$— $(103.0)$(103.0)
Cash equivalents$76.2 $52.8 $129.0 
Derivative assets and liabilities included in Level 2 represent foreign currency exchange forward and swap contracts, and interest rate derivative contracts. Cash equivalents included in Level 1 represent treasury bills and money market funds, while Level 2 represent certificates of deposit and commercial paper.
We value our foreign currency exchange derivatives using models consistent with those used by a market participant that maximize the use of market observable inputs including forward prices for currencies.
We value our interest rate derivative contracts using a widely accepted discounted cash flow valuation methodology that reflects the contractual terms of each derivative, including the period to maturity. The methodology derives the fair values of the derivatives using the market standard methodology of netting the discounted future cash payments and the discounted expected receipts. The inputs used in the calculation are based on observable market-based inputs, including interest rate curves, implied volatilities and credit spreads.
We incorporate credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements.
Transfers between levels of the fair value hierarchy
During the periods presented, there were no transfers between Levels 1 and 2, and Gates had no assets or liabilities measured at fair value on a recurring basis using Level 3 inputs.
D. Assets measured at fair value on a non-recurring basis
Gates has non-recurring fair value measurements related to certain assets, including goodwill, intangible assets, and property, plant, and equipment. During Fiscal 2024, no significant impairment of fixed and other assets were recognized. During Fiscal 2023, an impairment of fixed and other assets of $0.1 million was recognized. During Fiscal 2022, an impairment of fixed and other assets of $1.1 million was recognized in relation to the suspension of our operations in Russia. During April 2024, Gates made a $5.0 million equity investment in a privately held company. Gates does not have the ability to exercise significant influence over the investee and the investment does not have a readily determinable fair value. We elected to recognize the investment at its cost in accordance with ASC 321 “Investments – Equity Securities” and will adjust the fair value of the investment if we identify any observable price changes in orderly transactions.
v3.25.0.1
Debt
12 Months Ended
Dec. 28, 2024
Debt Disclosure [Abstract]  
Debt Debt
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Secured debt:
—2024 Dollar Term Loans due June 4, 2031$1,300.0 $— 
—2022 Dollar Term Loans due November 16, 2029563.5 567.8 
—2021 Dollar Term Loans due November 16, 2029— 1,336.1 
—Revolving credit facility— — 
Unsecured debt:
—6.875% Dollar Senior Notes due July 1, 2029
500.0 — 
—6.250% Dollar Senior Notes due January 16, 2026
— 568.0 
Total principal of debt2,363.5 2,471.9 
Deferred issuance costs(33.2)(37.4)
Accrued interest20.3 17.0 
Total carrying value of debt2,350.6 2,451.5 
Debt, current portion39.1 36.5 
Debt, less current portion$2,311.5 $2,415.0 
Weighted average interest rate6.44 %7.66 %
Gates’ secured debt is jointly and severally, irrevocably and fully and unconditionally guaranteed by certain of its subsidiaries and is secured by liens on substantially all of their assets.
Gates is subject to covenants, representations and warranties under certain of its debt facilities. During the periods covered by these consolidated financial statements, we were in compliance with the applicable financial covenants. Also under the agreements governing our debt facilities, our ability to engage in activities such as incurring certain additional indebtedness, making certain investments and paying certain dividends is dependent, in part, on our ability to satisfy tests based on measures determined under those agreements.
The principal payments due under our financing agreements over the next five years and thereafter are as follows:
(dollars in millions)
Total
Fiscal year:
—2025$23.4 
—202618.8 
—202718.8 
—202818.8 
—20291,052.1 
Thereafter1,231.6 
$2,363.5 
Debt issuances and redemptions
On June 4, 2024, we entered into an amendment to our credit agreement governing our term loans and our secured revolving credit facility. As part of this amendment, we upsized the revolving credit commitments and issued a new tranche of $1,300.0 million of dollar-denominated term loans (the “2024 Dollar Term Loans”). The proceeds of the 2024 Dollar Term Loans were used to extinguish the entire outstanding principal balance of dollar-denominated term loans of $1,232.6 million, which was issued on February 24, 2021 (the “2021 Dollar Term Loans”), plus $1.1 million of accrued interest and to redeem a portion of the Dollar Senior Notes due 2026. We issued the 2024 Dollar Term Loans with no discount and incurred third party costs totaling approximately $9.5 million, which have been deferred and will be amortized to interest expense over the remaining term of the related borrowings using the effective interest method. The 2024 Dollar Term Loans require a prepayment premium in connection with certain repricing transactions occurring within nine months following the closing of the amendment. The repayment of our 2021 Dollar Term Loans resulted in the accelerated recognition of $11.2 million of deferred issuance costs (recognized in interest expense).
Under the credit agreement amendment, we also repriced our dollar-denominated term loans drawn on November 16, 2022 (the “2022 Dollar Term Loans”), reducing the interest rate spread by 75 basis points from Term SOFR plus 3.00% to Term SOFR plus 2.25%. Third party costs of $0.9 million incurred with the 2022 Dollar Term Loans repricing were recognized in interest expense.
Additionally, as part of the June 2024 amendment to our credit agreement, we increased borrowing capacity under our revolving credit facility from $250.0 million to $500.0 million and extended the maturity from November 18, 2026 to the date that is the earliest of (x) June 4, 2029 and (y) April 1, 2029, if greater than $500.0 million in aggregate principal amount of the Dollar Senior Notes due 2029 (as defined below) are outstanding. We incurred associated third party costs of approximately $2.5 million, which have been deferred and will be amortized to interest expense over the remaining term of the revolving credit facility. Concurrently with this amendment, we terminated the $250.0 million asset-backed revolving credit facility governed by the second amended and restated credit agreement dated as of July 3, 2014 (as amended and restated). The termination of our asset-backed revolving credit facility resulted in the accelerated recognition of $1.0 million of deferred issuance costs (recognized in interest expense).
On June 4, 2024, we also issued new unsecured senior notes of $500.0 million (the “Dollar Senior Notes due 2029”), and fully redeemed our existing unsecured senior notes due 2026 of $568.0 million aggregate principal amount (the “Dollar Senior Notes due 2026”), which included the payment of $13.7 million of accrued interest thereon. We issued the Dollar Senior Notes due 2029 with no discount and incurred third party costs of approximately $7.6 million, which have been deferred and will be amortized to interest expense over the remaining term of the Dollar Senior Notes due 2029 using the effective interest method. The redemption of our Dollar Senior Notes due 2026 resulted in the accelerated recognition of $2.6 million of deferred issuance costs (recognized in interest expense).
In February 2024, we made a voluntary principal debt repayment of $100.0 million against our 2021 Dollar Term Loans. As a result of this repayment, we accelerated the recognition of $1.0 million of deferred issuance costs (recognized in interest expense).
Dollar and Euro Term Loans
Our outstanding secured credit facilities consist of two loans, which include the 2024 Dollar Term Loans and the 2022 Dollar Term Loans described above. These term loan facilities bear interest at a floating rate, at our option, at either a base rate as defined in the credit agreement plus an applicable margin, or Term SOFR plus an applicable margin.
On December 10, 2024, we amended our credit agreement to lower the margin with respect to the 2022 Dollar Term Loans and 2024 Dollar Term Loans by 50 basis points compared to the previous term. The 2022 Dollar Term Loans and 2024 Dollar Term loans bear interest at our option at either Term SOFR (subject to a floor of 0.50%) plus a margin of 1.75% per annum, or the base rate (subject to a floor of 1.50%) plus 0.75% per annum.
As of December 28, 2024, the 2024 Dollar Term Loans’ interest rate was Term SOFR, subject to a floor of 0.50%, plus a margin of 1.75%, and borrowings under this facility bore interest at a rate of 6.32% per annum. The interest rate is currently re-set on the last business day of each month based on the election of one month interest periods. The 2024 Dollar Term Loans mature on June 4, 2031.
As of December 28, 2024, the 2022 Dollar Term Loans’ interest rate as of December 28, 2024 was Term SOFR, subject to a floor of 0.50%, plus a margin of 1.75%, and borrowings under this facility bore interest at a rate of 6.32% per annum.
The 2022 Dollar Term Loans and 2024 Dollar Term Loans are subject to quarterly amortization payments of 0.25%, based on the original principal amount less certain repayments with the balance payable on maturity. During Fiscal 2024, we made amortization payments against the 2021 Dollar Term Loans, the 2024 Dollar Term Loans and the 2022 Dollar Term Loans of $3.4 million, $0 and $4.3 million, respectively. During Fiscal 2023, we made amortization payments against the 2021 Dollar Term Loans and 2022 Dollar Term Loans of $13.8 million and $5.8 million, respectively.
Under the terms of the credit agreement, we are obliged to offer annually to the term loan lenders an “excess cash flow” amount as defined under the agreement, based on the preceding year’s final results. Based on our 2024 results, the leverage ratio as defined under the credit agreement was below the threshold above which payments are required, and therefore no excess cash flow payment is required to be made in 2025.
During the periods presented, foreign exchange gains were recognized in respect of the Euro Term Loans as summarized in the table below. During Fiscal 2022, a portion of the facility was designated as a net investment hedge of certain of our Euro investments, a corresponding portion of the foreign exchange gain were recognized in OCI. As of December 28, 2024 and December 30, 2023, the Euro Term Loan, and the net investment hedging designation on the Euro Term Loan, no longer existed.
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Gain recognized in statement of operations$— $— $45.2 
Gain recognized in OCI— — 10.6 
Total gain$ $ $55.8 
Gates Corporation, a wholly-owned U.S. subsidiary of Gates Industrial Holdco Limited (the parent guarantor and direct subsidiary of Gates Industrial Corporation plc), is the principal obligor under the term loans for U.S. federal income tax purposes and makes the payments due on the term loans. As a result, interest received by lenders of this tranche of debt is U.S. source income.
Unsecured Senior Notes
As of December 28, 2024, we had $500.0 million of 2024 Senior Notes outstanding that were issued on June 4, 2024. The 2024 Unsecured Senior Notes are scheduled to mature on July 1, 2029 and bear interest at an annual fixed rate of 6.875% with semi-annual interest payments.
Prior to July 1, 2026, we may redeem the 2024 Unsecured Senior Notes, at our option, in whole at any time or in part from time to time, at a “make-whole” redemption price. In addition, on or subsequent to July 1, 2026, we may redeem the 2024 Unsecured Senior Notes, at our option, in whole at any time or in part from time to time, at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid interest to the redemption date:
Redemption price
On or subsequent to:
—July 1, 2026103.438 %
—July 1, 2027101.719 %
—July 1, 2028 and thereafter100.000 %
Additionally, net cash proceeds from an equity offering can be utilized at any time prior to July 1. 2026, to redeem up to 40% of the 2024 Unsecured Senior Notes at a redemption price equal to 106.875% of the principal amount thereof, plus accrued and unpaid interest through to the redemption date.
Upon the occurrence of specified types of change of control or of certain qualifying asset sales, the holders of the 2024 Unsecured Senior Notes will have the right to require us to make an offer to repurchase each holder's notes at a price equal to 101% (in the case of a change of control offer) or 100% (in the case of an asset sale offer) of their principal amount, plus accrued and unpaid interest.
As noted above, on June 4, 2024, we redeemed all $568.0 million in aggregate principal amount of our Dollar Senior Notes due 2026 using primarily the proceeds from the issuance of the Dollar Senior Notes due 2029.
Revolving credit facility
We have a secured revolving credit facility that provides for multi-currency revolving loans. On June 4, 2024, we amended the credit agreement governing this facility to increase the size of the facility from $250.0 million to $500.0 million, and extended the maturity date from November 18, 2026 to the date that is the earliest of (x) June 4, 2029 and (y) April 1, 2029, if greater than $500.0 million in aggregate principal amount of the Dollar Senior Notes due 2029 are outstanding. This facility also includes a letter of credit sub-facility of $150.0 million. Debt under the revolving credit facility bears interest at a floating rate, at our option, at either a base rate as defined in the credit agreement plus an applicable margin or the reference rate plus an applicable margin.
On January 21, 2025, we amended our credit agreement to lower the margin with respect to the Revolving Credit Loans by 50 basis points compared to the previous term. The Revolving Credit Loans bear interest at our option either Term SOFR (subject to a floor of —%) plus a margin of 1.75% per annum or the base rate plus 0.75% per annum. The applicable margin for the Revolving Credit Facility borrowings will be subject to one 25 basis step down determined in accordance with Gates Industrial Holdco Limited achieving a certain consolidated first lien net leverage level.
During August 2024, we drew $40.0 million under our revolving credit facility to partially fund the purchase of our ordinary shares under our 2024 share repurchase program, as discussed further in Note 19 below. During September and October 2024, we made payments on this amount and had no balance as of December 28, 2024.
During May 2023, we drew $100.0 million under our former asset-backed revolving credit facility to partially fund the purchase of shares under our share repurchase program, as discussed further in Note 19 below. The balance on the asset-backed revolving credit facility was fully paid off during the year ended December 30, 2023, and the facility was terminated on June 4, 2024.
The letters of credit outstanding under this facility were $28.2 million and $0 million as of December 28, 2024 and December 30, 2023, respectively. In addition, Gates had other outstanding performance bonds, letters of credit and bank guarantees amounting to $12.3 million as of December 28, 2024, compared to $8.4 million as of December 30, 2023.
v3.25.0.1
Accrued expenses and other liabilities
12 Months Ended
Dec. 28, 2024
Payables and Accruals [Abstract]  
Accrued expenses and other liabilities Accrued expenses and other liabilities
Accrued expenses and other liabilities consisted of the following:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Accrued compensation$93.9 $96.2 
Current portion of lease obligations25.3 22.8 
Derivative financial instruments43.9 103.0 
Payroll and related taxes payable16.7 14.9 
VAT and other taxes payable9.9 9.9 
Warranty reserve16.4 15.9 
Restructuring reserve2.8 5.1 
Workers’ compensation reserve8.7 8.6 
Other accrued expenses and other liabilities102.4 95.2 
$320.0 $371.6 
The above liabilities are presented in Gates’ balance sheet as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
—Accrued expenses and other current liabilities$251.3 $248.5 
—Other non-current liabilities68.7 123.1 
$320.0 $371.6 
Warranty reserves
Changes in warranty reserves (included in accrued expenses and other liabilities) were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Balance at the beginning of the period$15.9 $17.6 $18.7 
Charge for the period10.8 6.1 10.8 
Utilized during the period(8.2)(7.7)(10.9)
Released during the period(1.7)— (0.3)
Foreign currency translation(0.4)(0.1)(0.7)
Balance at the end of the period$16.4 $15.9 $17.6 
An accrual is made for warranty claims on various products depending on specific market expectations and the type of product. These estimates are established using historical information on the nature, frequency and average cost of warranty claims. The majority of the warranty accruals are expected to be utilized during 2025, with the remainder estimated to be utilized within the next three years.
An accrual is made for the cost of product recalls if management considers it probable that it will be necessary to recall a specific product and the amount can be reasonably estimated.
v3.25.0.1
Post-retirement benefits
12 Months Ended
Dec. 28, 2024
Postemployment Benefits [Abstract]  
Post-retirement benefits Post-retirement benefits
A. Defined contribution plans
Gates provides defined contribution benefits in most of the countries in which it operates; in particular, the majority of its employees in the U.S. are entitled to such benefits.
During Fiscal 2024, the expense recognized by Gates in respect of defined contribution plans was $20.9 million, compared to $21.0 million in Fiscal 2023 and $20.2 million in Fiscal 2022.
B. Defined benefit pension plans
Gates provides defined benefit pension plans in certain of the countries in which it operates, in particular, in the U.S. and U.K. Generally, the pension benefits provided under these plans are based on pensionable salary and the period of service of the individual employees. Plan assets are held separately from those of Gates in funds that are under the control of trustees. All of the defined benefit pension plans are closed to new entrants. In addition to the funded defined benefit pension plans, Gates has unfunded defined benefit obligations to certain current and former employees.
Funded status
The net deficit recognized in respect of defined benefit pension plans is presented in the balance sheet as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Pension surplus$5.7 $8.6 
Accrued expenses and other current liabilities(2.6)(2.4)
Post-retirement benefit obligations(55.9)(59.3)
Net funded status$(52.8)$(53.1)
Plans whose projected benefit obligation was in excess of plan assets:
—Aggregate projected benefit obligation$440.8 $246.5 
—Aggregate fair value of plan assets$382.3 $184.8 
Plans whose accumulated benefit obligation was in excess of plan assets:
—Aggregate accumulated benefit obligation$436.9 $241.3 
—Aggregate fair value of plan assets$382.3 $184.0 
During Fiscal 2024, the net unfunded pension obligation decreased by $0.3 million. This decrease was driven primarily by an actuarial gain of $41.5 million on remeasurement of the benefit obligation, employer contributions of $8.0 million and a net favorable foreign currency translation impact of $1.6 million, partially offset by interest cost on the benefit obligation of $24.3 million, an actual loss on plan assets of $22.5 million, and employer service costs of $4.0 million.
Benefit obligation
Changes in the projected benefit obligation in relation to defined benefit pension plans were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
Benefit obligation at the beginning of the period$570.2 $560.5 
Employer service cost4.0 3.9 
Plan participants’ contributions0.4 0.1 
Interest cost24.3 25.1 
Net actuarial (gain) loss(41.5)6.7 
Benefits paid(42.4)(42.6)
Expenses paid from assets(1.8)(1.8)
Curtailments and settlements(0.4)(1.3)
Foreign currency translation(11.3)19.6 
Benefit obligation at the end of the period$501.5 $570.2 
Accumulated benefit obligation$498.0 $565.6 
Changes in plan assets
Changes in the fair value of the assets held by defined benefit pension plans were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
Plan assets at the beginning of the period$517.1 $517.3 
Actual (loss) gain on plan assets(22.5)19.3 
Employer contributions8.0 7.7 
Plan participants’ contributions0.4 0.1 
Settlements(0.4)(1.3)
Benefits paid(42.4)(42.6)
Expenses paid from assets(1.8)(1.8)
Foreign currency translation(9.7)18.4 
Plan assets at the end of the period$448.7 $517.1 
Gates’ desired investment objectives for pension plan assets include maintaining an adequate level of diversification to reduce interest rate and market risk, and to provide adequate liquidity to meet immediate and future benefit payment requirements. Outside the U.S., Gates’ defined benefit pension plans target a mix of growth seeking assets, comprising equities, and income generating assets, such as government and corporate bonds, that are considered by the trustees to be appropriate in the circumstances. Plan assets are rebalanced periodically to maintain target asset allocations.
Certain benefit obligations outside the U.S. are matched by insurance contracts.
Investments in equities and fixed income securities are held in pooled investment funds that are managed by investment managers on a passive (or “index-tracking”) basis. The trustees ensure that there is no significant concentration of credit risk in any one financial institution.
Plan assets do not include any financial instruments issued by, any property occupied by, or other assets used by Gates.
The fair values of pension plan assets by asset category were as follows:
 As of December 28, 2024As of December 30, 2023
(dollars in millions)Quoted prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
TotalQuoted prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Total
Collective investment trusts:
     Equity securities$— $35.9 $— $35.9 $— $37.4 $— $37.4 
     Debt securities
     —Corporate bonds— 40.2 — 40.2 — 42.2 — 42.2 
     —Government bonds— 82.1 — 82.1 — 105.6 — 105.6 
Annuities and insurance— — 242.7 242.7 — — 285.1 285.1 
Liquid alternatives— 19.8 — 19.8 — 22.4 — 22.4 
Real estate— 21.4 — 21.4 — 22.0 — 22.0 
Cash and cash equivalents6.6 — — 6.6 2.4 — — 2.4 
Total$6.6 $199.4 $242.7 $448.7 $2.4 $229.6 $285.1 $517.1 
Investments in equities and bonds held in pooled investment funds are measured at the bid price quoted by the investment managers, which reflect the quoted prices of the underlying securities. Insurance contracts are measured at their surrender value quoted by the insurers. Cash and cash equivalents largely attract floating interest rates.
Changes in the fair value of plan assets measured using significant unobservable inputs (level 3) were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
Fair value at the beginning of the period$285.1 $275.4 
Actual (loss) gain on plan assets
(23.2)7.2 
Purchases— 0.7 
Contributions1.5 0.4 
Impacts of benefits paid(16.2)(13.4)
Settlements— (1.1)
Foreign currency translation(4.5)15.9 
Fair value at the end of the period$242.7 $285.1 
Estimated future contributions and benefit payments
Gates’ funding policy for its defined benefit pension plans is to contribute amounts determined annually on an actuarial basis to provide for current and future benefits in accordance with federal law and other regulations. During 2025, Gates expects to contribute approximately $9.0 million to its defined benefit pension plans (including non-qualified supplemental plans).
Benefit payments, reflecting expected future service, are expected to be made by Gates’ defined benefit pension plans as follows:
(dollars in millions)Total
Fiscal year:
—2025$40.7 
—2026$40.8 
—2027$40.3 
—2028$40.8 
—2029$40.6 
—2030 through 2034$196.4 
Net periodic benefit cost (income)
Components of the net periodic benefit cost (income) for defined benefit pension plans relating to continuing operations were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Employer service cost$4.0 $3.9 $3.3 
Settlements and curtailments— (0.1)(0.2)
Interest cost24.3 25.1 15.2 
Expected return on plan assets(25.8)(25.9)(21.7)
Amortization of prior net actuarial (gain) loss(0.1)(1.0)0.3 
Amortization of prior service cost0.9 0.9 0.9 
Net periodic benefit cost (income)$3.3 $2.9 $(2.2)
Other comprehensive income
Changes in plan assets and benefit obligations of defined benefit pension plans recognized in OCI were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Current period net actuarial loss$6.8 $13.4 $58.6 
Amortization of prior net actuarial gain (loss)0.1 1.0 (0.3)
Amortization of prior service cost(0.9)(0.9)(0.9)
Gain recognized due to settlements and curtailments— 0.1 0.2 
Pre-tax changes recognized in OCI other than foreign currency translation6.0 13.6 57.6 
Foreign currency translation(1.4)4.0 (0.5)
Total pre-tax changes recognized in OCI$4.6 $17.6 $57.1 
Cumulative loss before tax recognized in OCI in respect of post-retirement benefits that had not yet been recognized as a component of the net periodic benefit cost were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Actuarial loss$50.8 $43.9 $29.4 
Prior service costs8.1 9.0 9.9 
Pre-tax changes recognized in OCI other than foreign currency translation58.9 52.9 39.3 
Foreign currency translation0.6 2.0 (2.0)
Cumulative total$59.5 $54.9 $37.3 
Assumptions
Major assumptions used in determining the benefit obligation and the net periodic benefit cost for defined benefit pension plans are presented in the following table as weighted averages:
 
As of
December 28, 2024
As of
December 30, 2023
Benefit obligation:
—Discount rate5.081 %4.466 %
—Rate of salary increase3.622 %3.950 %
Net periodic benefit cost:
—Discount rate4.466 %4.598 %
—Rate of salary increase3.953 %3.510 %
—Expected return on plan assets4.987 %4.782 %
In determining the expected return on plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes, and economic and other indicators of future performance. Return projections are validated using a simulation model that incorporates yield curves, credit spreads and risk premiums to project long-term prospective returns.
C. Other defined benefit plans
Gates provides other post-employment benefits, principally health and life insurance coverage, on an unfunded basis to certain of its employees in the U.S. and Canada.
Funded status
The deficit recognized in respect of other defined benefit plans is presented in the balance sheet as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Accrued expenses and other current liabilities$(2.8)$(3.0)
Post-retirement benefit obligations(22.1)(24.5)
$(24.9)$(27.5)
Benefit obligation
Changes in the accumulated benefit obligation in relation to other defined benefit plans were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
Benefit obligation at the beginning of the period$27.5 $28.4 
Interest cost1.3 1.5 
Actuarial (gain) loss
(0.2)0.3 
Benefits paid(2.8)(3.0)
Foreign currency translation(0.9)0.3 
Benefit obligation at the end of the period$24.9 $27.5 
Accumulated benefit obligation$24.9 $27.5 
Estimated future contributions and benefit payments
Contributions are made to our other defined benefit plans as and when benefits are paid from the plans. During 2025, Gates expects to contribute approximately $2.8 million to its other defined benefit plans.
Benefit payments, reflecting expected future service, are expected to be made by Gates’ other defined benefit plans as follows:
(dollars in millions)Total
Fiscal years:
—2025$2.8 
—2026$2.7 
—2027$2.6 
—2028$2.4 
—2029$2.3 
—2030 through 2034$9.6 
Net periodic benefit income
Components of the net periodic benefit income for other defined benefit plans were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Interest cost$1.3 $1.5 $1.2 
Amortization of prior net actuarial gain(2.8)(3.0)(1.8)
Amortization of prior service credit(0.4)(0.5)(0.4)
Net periodic benefit income$(1.9)$(2.0)$(1.0)
The net periodic benefit income relates entirely to continuing operations.
Other comprehensive income
Changes in the benefit obligation of other defined benefit plans recognized in OCI were as follows: 
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Current period net actuarial (gain) loss$(0.2)$0.3 $(13.9)
Amortization of prior net actuarial gain2.8 3.0 1.8 
Prior service credit— — (0.5)
Amortization of prior service credit0.4 0.5 0.4 
Pre-tax changes recognized in OCI other than foreign currency translation3.0 3.8 (12.2)
Foreign currency translation0.9 (0.3)0.6 
Total pre-tax changes recognized in OCI$3.9 $3.5 $(11.6)
Cumulative gains before tax recognized in OCI in respect of other post-retirement benefits that had not yet been recognized as a component of the net periodic benefit cost were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Actuarial gains$(29.6)$(32.2)$(35.5)
Prior service credits(1.8)(2.2)(2.7)
Other adjustments0.2 0.2 0.2 
Pre-tax changes recognized in OCI other than foreign currency translation(31.2)(34.2)(38.0)
Foreign currency translation1.0 0.1 0.4 
Cumulative total$(30.2)$(34.1)$(37.6)
Assumptions
The primary assumption used in determining the benefit obligation and the net periodic benefit cost for other defined benefit plans is the discount rate, the weighted average of which is presented in the following table:
 Benefit obligationNet periodic benefit cost
 
As of
December 28, 2024
As of
December 30, 2023
As of
December 28, 2024
As of
December 30, 2023
Discount rate5.19 %5.00 %5.00 %5.44 %
The initial healthcare cost trend rate as of December 28, 2024 starts at 5.76%, compared to 5.76% as of December 30, 2023, with an ultimate trend rate of 4.85% as of December 28, 2024, compared to 4.84% as of December 30, 2023, beginning in 2028.
v3.25.0.1
Share-based compensation
12 Months Ended
Dec. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Share-based compensation Share-based compensation
The Company operates a share-based incentive plan over its shares to provide incentives to Gates’ senior executives and other eligible employees. During Fiscal 2024, we recognized a charge of $28.8 million, compared to $27.4 million and $44.3 million during Fiscal 2023 and Fiscal 2022, respectively.
Awards issued under the 2014 Omaha Topco Ltd. Stock Incentive Plan (the “2014 Plan”)
Gates has a number of share-based incentive awards issued under the 2014 Plan, which was assumed by the Company and renamed the Gates Industrial Corporation plc Stock Incentive Plan in connection with our initial public offering in January 2018 (our “IPO”). No new awards have been granted under this plan since 2017. The options granted prior to our IPO were split equally into four tiers, each with specific vesting conditions. Tier I options vest evenly over 5 years from the grant date, subject to the participant continuing to provide service to Gates on the vesting date. Tier II, III and IV options vest on achievement of specified investment returns by certain investment funds affiliated with Blackstone Inc. (“Blackstone”) at the time of a defined liquidity event, which is also subject to the participant’s continued provision of service to Gates on the vesting date. The performance conditions associated with Tiers II, III and IV must have been achieved on or prior to July 3, 2022 in order for vesting to occur. All the options expire ten years after the date of grant.
During March 2022, a liquidity event as defined occurred following the sale by Blackstone of a certain portion of their interest in Gates and the Tier II and IV options vested as the specified investment returns related to these options had been met. On July 3, 2022, the performance period for the Tier III options expired and, as the specified investment returns were not achieved, all Tier III awards expired during Fiscal 2022.
Due to Chinese regulatory restrictions on foreign stock ownership, awards granted under this plan to Chinese employees have been issued as stock appreciation rights (“SARs”). The terms of these SARs are identical to those of the options described above with the exception that no share is issued on exercise; instead, cash equivalent to the increase in the value of the shares from the date of grant to the date of exercise is paid to the employee. These awards are therefore treated as liability awards under Topic 718 “Compensation - Stock Compensation” and are revalued to their fair value at each period end. The SARs include option awards with the same vesting terms as the Tier II, III and IV option awards described above, and, due to the vesting event described above. All Tier III SARs expired on July 3, 2022 as the specific performance hurdle was not achieved.
Changes in the awards granted under this plan are summarized in the tables below.
Awards issued under the Gates Industrial Corporation plc 2018 Omnibus Incentive Plan (the “2018 Plan”)
In conjunction with the initial public offering in January 2018, Gates adopted the 2018 Plan, which is a market-based long-term incentive program that allows for the issue of a variety of equity-based and cash-based awards, including stock options, SARs and RSUs.
The SARs issued under this plan take the form of options, except that no share is issued on exercise; instead, cash equivalent to the increase in the value of the shares from the date of grant to the date of exercise is paid to the employee. These awards are therefore treated as liability awards under Topic 718 “Compensation - Stock Compensation” and are revalued to their fair value at each period end. The SARs and the majority of the share options issued under this plan vest evenly over either three years or four years from the grant date. The remainder of the options, the premium-priced options, vest evenly over a three-year period, starting two years from the grant date. All options vest subject to the participant’s continued employment by Gates on the vesting date and expire ten years after the date of grant.
The RSUs issued under the plan consist of time-vesting RSUs and performance-based RSUs (“PRSUs”). The time-vesting RSUs vest evenly over either one or three years from the date of grant, subject to the participant’s continued provision of service to Gates on the vesting date. The PRSUs issued prior to 2022 provided that 50% of the award would generally vest if Gates achieved a certain level of average annual adjusted return on invested capital as defined in the plan (“Adjusted ROIC”) and the remaining 50% of the PRSUs would generally vest if Gates achieved certain relative total shareholder return (“Relative TSR”) goals, in each case, measured over a three-year performance period and subject to the participant’s continued employment through the end of the performance period. Starting in 2022, 75% of the PRSU awards will generally vest based on the specified Adjusted ROIC achievement and the remaining 25% will generally vest based on Relative TSR goal attainment. The total number of PRSUs that vest at the end of the performance period will range from 0% to 200% of the target based on actual performance against a pre-established scale.
New awards and movements in existing awards granted under this plan are summarized in the tables below.
Summary of movements in options outstanding
Year Ended December 28, 2024
PlanNumber of
options
Weighted average exercise price
$
Outstanding at the beginning of the period:
—Tier I2014 Plan1,828,327 $6.98 
—Tier II2014 Plan1,996,017 $7.01 
—Tier IV2014 Plan1,986,416 $10.52 
—SARsBoth plans735,221 $10.47 
—Share options2018 Plan2,345,520 $14.90 
—Premium-priced options2018 Plan835,469 $18.88 
9,726,970 $10.90 
Granted during the period:
—SARs2018 Plan22,100 $14.87 
22,100 $14.87 
Forfeited during the period:
—SARs2018 Plan(3,535)$13.50 
(3,535)$13.50 
Expired during the period:
—SARsBoth Plans(266)$14.04 
—Share options2018 Plan(331,730)$17.27 
(331,996)$17.26 
Exercised during the period:
—Tier I2014 Plan(271,309)$7.15 
—Tier II2014 Plan(273,378)$7.06 
—Tier IV2014 Plan(325,674)$10.74 
—SARsBoth Plans(150,127)$9.74 
—Share options2018 Plan(533,725)$14.37 
(1,554,213)$10.61 
Outstanding at the end of the period:
—Tier I2014 Plan1,557,018 $6.95 
—Tier II2014 Plan1,722,639 $7.00 
—Tier IV2014 Plan1,660,742 $10.48 
—SARsBoth plans603,393 $10.79 
—Share options2018 Plan1,480,065 $14.56 
—Premium-priced options2018 Plan835,469 $18.88 
7,859,326 $10.70 
Exercisable at the end of the period7,785,179 $10.66 
Vested and expected to vest at the end of the period7,858,509 $10.70 
As of December 28, 2024, the aggregate intrinsic value of options that were exercisable was $77.9 million, and these options had a weighted average remaining contractual term of 2.2 years. As of December 28, 2024, the aggregate intrinsic value of options that were vested or expected to vest was $78.4 million, and these options had a weighted average remaining contractual term of 2.3 years.
As of December 28, 2024, the unrecognized compensation charge relating to the nonvested options was $0.3 million, which is expected to be recognized over a weighted-average period of 1.4 years.
During Fiscal 2024, cash of $14.9 million was received in relation to the exercise of vested options, compared to $18.7 million and $15.9 million during Fiscal 2023 and Fiscal 2022, respectively. The aggregate intrinsic value of options exercised during Fiscal 2024 was $6.0 million, compared to $5.2 million and $1.0 million during Fiscal 2023 and Fiscal 2022, respectively.
Summary of movements in RSUs and PRSUs outstanding
Year Ended December 28, 2024
Number of
awards
Weighted average
grant date fair value
$
Outstanding at the beginning of the period:
—RSUs3,032,230 $13.78 
—PRSUs917,661 $16.77 
3,949,891 $14.47 
Granted during the period:
—RSUs1,250,252 $15.16 
—PRSUs426,607 $16.37 
1,676,859 $15.47 
Forfeited during the period:
—RSUs(321,638)$13.75 
—PRSUs(161,848)$15.77 
(483,486)$14.42 
Vested during the period:
—RSUs(1,389,992)$13.79 
—PRSUs(154,274)$15.00 
(1,544,266)$13.91 
Outstanding at the end of the period:
—RSUs2,570,852 $14.45 
—PRSUs1,028,146 $17.03 
3,598,998 $15.19 
As of December 28, 2024, the unrecognized compensation charge relating to nonvested RSUs and PRSUs was $19.0 million, which is expected to be recognized over a weighted average period of 1.4 years, subject, where relevant, to the achievement of the performance conditions described above. The total fair value of RSUs and PRSUs vested Fiscal 2024 was $21.5 million, compared to $21.5 million, and $12.9 million during Fiscal 2023 and Fiscal 2022 respectively.
Valuation of awards granted during the period
The grant date fair value of the options and SARs are measured using a Black-Scholes valuation model. RSUs are valued at the share price on the date of grant. The premium-priced options and PRSUs were valued using Monte Carlo simulations. As Gates only has volatility data for its shares for the period since its initial public offering, this volatility has, where necessary, been weighted with the debt-levered volatility of a peer group of public companies in order to determine the expected volatility over the expected option life. The expected option life represents the period of time for which the options are expected to be outstanding and is based on consideration of the contractual life of the option, option vesting period, and historical exercise patterns. The weighted average fair values and relevant assumptions were as follows:
For the year ended
December 28,
2024
December 30,
2023
December 31,
2022
Weighted average grant date fair value:
—SARs$6.95 $6.57 $6.94 
—Share optionsn/an/an/a
—Premium-priced optionsn/an/an/a
—RSUs$15.16 $13.79 $13.67 
—PRSUs$16.37 $15.88 $17.23 
Inputs to the model:
—Expected volatility - SARs41.7 %42.8 %43.5 %
—Expected volatility - share optionsn/an/an/a
—Expected volatility - premium-priced optionsn/an/an/a
—Expected volatility - PRSUs31.6 %37.7 %49.1 %
—Expected option life for SARs (years)6.06.06.0
—Expected option life for share options (years)n/an/an/a
—Expected option life for premium-priced options (years)n/an/an/a
—Risk-free interest rate:
SARs4.22 %4.03 %1.91 %
Share optionsn/an/an/a
Premium-priced optionsn/an/an/a
PRSUs4.38 %4.60 %1.72 %
v3.25.0.1
Equity
12 Months Ended
Dec. 28, 2024
Equity [Abstract]  
Equity Equity
Movements in the Company’s number of shares in issue for the year ended December 28, 2024 and December 30, 2023, respectively, were as follows:
For the year ended
(number of shares)
December 28,
2024
December 30,
2023
Balance as of the beginning of the period264,259,788 282,578,917 
Exercise of share options, net of withholding taxes1,376,987 2,258,344 
Vesting of restricted stock units, net of withholding taxes1,257,515 1,357,161 
Shares repurchased and cancelled(11,690,303)(21,934,634)
Balance as of the end of the period255,203,987 264,259,788 
In February 2024, the Company’s Board approved a share repurchase program for up to $100.0 million in authorized share repurchases, with an expiration date of October 6, 2024. On February 12, 2024, the Company, certain selling shareholders affiliated with Blackstone, and the representatives of the several underwriters entered into an underwriting agreement pursuant to which the selling shareholders sold to the underwriters 20,125,000 ordinary shares of the Company at a price of $12.045 per ordinary share (the “February 2024 Offering”). The Company did not receive any proceeds from the sale of ordinary shares in the February 2024 Offering, which closed on February 16, 2024. In connection with the February 2024 Offering, the Company repurchased 4,151,100
ordinary shares through Citigroup Global Markets Inc. from the same selling shareholders at a price of $12.045 per ordinary share for an aggregate consideration of approximately $50.0 million (the “February 2024 Repurchase”), plus costs paid directly related to the transaction of $0.3 million. This repurchase was funded by cash on hand. All shares repurchased pursuant to the February 2024 Repurchase have been cancelled.
In July 2024, the Company’s Board cancelled the then existing share repurchase program and approved a new share repurchase program, providing for up to $250.0 million in share repurchases, which expires on December 31, 2025. On August 16, 2024, the Company, certain selling shareholders affiliated with Blackstone, and the representatives of the several underwriters entered into an underwriting agreement pursuant to which the selling shareholders sold to the underwriters 23,000,000 ordinary shares of the Company at a price of $16.58 per ordinary share (the “August 2024 Offering”). The Company did not receive any proceeds from the sale of ordinary shares in the August 2024 Offering, which closed on August 21, 2024. In connection with the August 2024 Offering, the Company repurchased 7,539,203 ordinary shares through Citigroup Global Markets Inc. from the same selling shareholders at a price of $16.58 per ordinary share for an aggregate consideration of approximately $125.0 million (the “August 2024 Repurchase”), plus costs paid directly related to the transaction of $0.8 million. This repurchase was funded by cash on hand and a borrowing of $40.0 million under Gates’ secured revolving credit facility. All shares repurchased pursuant to the August 2024 Repurchase were cancelled, and $125.0 million remained available under the share repurchase program as of December 28, 2024.
In April 2023, the Company’s Board of Directors approved a share repurchase program for up to $250 million in authorized share repurchases. On May 17, 2023, the Company, certain selling shareholders affiliated with Blackstone, and the representatives of the several underwriters entered into an underwriting agreement pursuant to which the selling shareholders agreed to sell to the underwriters 22,500,000 ordinary shares of the Company at a price of $11.3975 per ordinary share (the “May 2023 Offering”). The selling shareholders also granted the underwriters an option to purchase up to 3,375,000 additional ordinary shares of the Company; this option was exercised in full on May 18, 2023. The Company did not receive any proceeds from the sale of ordinary shares in the May 2023 Offering, which closed on May 23, 2023. In connection with the May 2023 Offering, the Company repurchased 21,934,634 ordinary shares through Citigroup from the same selling shareholders at a price of $11.3975 per ordinary share for an aggregate consideration of approximately $250.0 million (the “2023 Repurchase”), plus costs paid directly related to the transaction of $1.7 million. This repurchase was funded by cash on hand and a borrowing of $100.0 million under Gates’ former asset-backed revolving credit facility. All shares repurchased pursuant to the 2023 Repurchase have been cancelled.
v3.25.0.1
Analysis of accumulated other comprehensive (loss) income
12 Months Ended
Dec. 28, 2024
Equity [Abstract]  
Analysis of accumulated other comprehensive (loss) income Analysis of accumulated other comprehensive (loss) income
Changes in accumulated other comprehensive (loss) income by component, net of tax, were as follows:
(dollars in millions)
Post-
retirement
benefit
Cumulative
translation
adjustment
Cash flow
hedges
Accumulated OCI attributable to
shareholders
Non-
controlling
interests
Accumulated OCI
As of January 1, 2022$36.6 $(836.7)$(25.1)$(825.2)$(23.4)$(848.6)
Foreign currency translation(1.2)(113.3)— (114.5)(42.1)(156.6)
Cash flow hedges movements— — 56.7 56.7 — 56.7 
Post-retirement benefit movements(34.8)— — (34.8)0.9 (33.9)
Other comprehensive (loss) income(36.0)(113.3)56.7 (92.6)(41.2)(133.8)
As of December 31, 20220.6 (950.0)31.6 (917.8)(64.6)(982.4)
Foreign currency translation(3.2)117.7 — 114.5 (13.8)100.7 
Cash flow hedges movements— — (12.5)(12.5)— (12.5)
Post-retirement benefit movements(12.7)— — (12.7)— (12.7)
Other comprehensive (loss) income(15.9)117.7 (12.5)89.3 (13.8)75.5 
As of December 30, 2023(15.3)(832.3)19.1 (828.5)(78.4)(906.9)
Foreign currency translation(0.1)(224.5)— (224.6)(19.1)(243.7)
Cash flow hedges movements— — (16.3)(16.3)— (16.3)
Post-retirement benefit movements(7.8)— — (7.8)— (7.8)
Other comprehensive loss(7.9)(224.5)(16.3)(248.7)(19.1)(267.8)
As of December 28, 2024$(23.2)$(1,056.8)$2.8 $(1,077.2)$(97.5)$(1,174.7)
v3.25.0.1
Related party transactions
12 Months Ended
Dec. 28, 2024
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
On October 31, 2024, Blackstone completed a secondary offering which sold to the underwriters 11,635,224 ordinary shares of the Company at a price of $19.3409 per ordinary share (the “October 2024 Offering”). Upon completion of the October 2024 Offering, Blackstone beneficially owned less than 5% of our ordinary shares. As a result, the Support and Services Agreement with Blackstone Management Partners L.L.C. that Gates entered with Blackstone at the time of the initial public offering was terminated. As of December 28, 2024, Blackstone was no longer a related party to Gates under the definition of ASC 850.
A. Equity method investees
Sales to and purchases from equity method investees were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Purchases
$(16.0)$(18.4)$(16.7)
Amounts outstanding in respect of these transactions were payables of $0.1 million as of December 28, 2024, compared to $0.2 million as of December 30, 2023. No dividends were received from our equity method investees during the periods presented.
B. Non-Gates entities controlled by non-controlling shareholders
Sales to and purchases from non-Gates entities controlled by non-controlling shareholders were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Sales
$42.6 $44.1 $59.0 
Purchases
$(14.6)$(15.4)$(18.4)
Amounts outstanding in respect of these transactions were as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Receivables
$3.7 $3.2 
Payables
$(2.8)$(3.2)
v3.25.0.1
Commitments and contingencies
12 Months Ended
Dec. 28, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
A. Capital and other commitments
As of December 28, 2024, we had entered into contractual commitments for the purchase of property, plant and equipment amounting to $8.6 million, compared to $8.7 million as of December 30, 2023, and for the purchase of non-integral computer software amounting to $6.1 million, compared to $1.8 million as of December 30, 2023. As of December 28, 2024, we had entered into contractual commitments for non-capital items such as raw materials and supplies amounting to $62.1 million, compared to $34.9 million as of December 30, 2023.
B. Company–owned life insurance policies
Gates is the beneficiary of a number of company-owned life insurance policies against which it borrows from the relevant life insurance company. As of December 28, 2024, the surrender value of the policies was $934.3 million, compared to $966.5 million as of December 30, 2023, and the amount outstanding on the related loans was $932.2 million, compared to $958.1 million as of December 30, 2023. For financial reporting purposes, these amounts are offset as a legal right of offset exists and the net receivable of $2.1 million, compared to $8.3 million as of December 30, 2023, is included in other receivables.
C. Contingencies
The Company is, from time to time, party to general legal proceedings and claims, which arise in the ordinary course of business including those relating to environmental obligations, product liability, intellectual property, commercial and contractual disputes, employment matters and other business matters. When appropriate, management consults with legal counsel and other appropriate experts to assess claims. If, in management’s opinion, we have incurred a probable loss as determined in accordance with U.S. GAAP, an estimate is made of the loss and the appropriate accrual is reflected in our consolidated financial statements. Currently, there are no material amounts accrued.
While it is not possible to quantify the financial impact or predict the outcome of all pending claims and litigation, management does not anticipate that the outcome of any current proceedings or known claims, either individually or in aggregate, will materially affect Gates’ financial position, results of operations or cash flows.
D. Allowance for expected credit losses
Movements in our allowance for expected credit losses were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Balance at beginning of year$15.7 $4.2 $5.1 
Current period provision for expected credit losses5.8 12.6 0.6 
Write-offs charged against allowance3.4 (1.1)(1.3)
Foreign currency translation(0.5)— (0.2)
Balance at end of year$24.4 $15.7 $4.2 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income attributable to shareholders $ 194.9 $ 232.9 $ 220.8
v3.25.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 28, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 28, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 28, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management and Strategy
The Company’s cybersecurity program is designed to ensure our technology environment is operating and maintained in accordance with best practices, utilizing the International Organization for Standardization framework as a key component of its approach to risk management. To identify, assess, and manage cybersecurity threat risks, the Company:
maintains a 24-hour cybersecurity team to continuously monitor its technology systems and emerging threat types and to respond to identified vulnerabilities;
deploys a variety of defenses, including automatic blocking of potential cybersecurity threats;
utilizes third-party system scanning tools, cybersecurity threat intelligence reports as well as cybersecurity threat reports from its business partners, each of which assists our monitoring efforts;
utilizes a scoring system to prioritize non-urgent mitigation activities;
completes annual third-party testing, the results of which are discussed with the Company’s Audit Committee, and periodic third-party table-top exercises and gap assessments;
maintains a mandatory internal educational program for employees, including phishing simulations, required courses at the time of hire, and microlearning courses throughout the year, to ensure continual awareness of new and emerging threats;
has adopted information technology policies applicable to its employees, including the Company’s Acceptable Use Policy, Dual Use Device Policy, Information Security Policy, Password Policy and Security Incident Response Plan (“SIRP”).
The Company conducts reputational analysis and security reviews for certain of its vendors to manage cybersecurity threats from the use of third-party services.
We continue to make investments to enhance the protection of our information technology systems and our business from cybersecurity incidents, including maintaining a cybersecurity insurance policy. For a discussion of whether and how any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition,
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
The Company’s cybersecurity program is designed to ensure our technology environment is operating and maintained in accordance with best practices, utilizing the International Organization for Standardization framework as a key component of its approach to risk management. To identify, assess, and manage cybersecurity threat risks, the Company:
maintains a 24-hour cybersecurity team to continuously monitor its technology systems and emerging threat types and to respond to identified vulnerabilities;
deploys a variety of defenses, including automatic blocking of potential cybersecurity threats;
utilizes third-party system scanning tools, cybersecurity threat intelligence reports as well as cybersecurity threat reports from its business partners, each of which assists our monitoring efforts;
utilizes a scoring system to prioritize non-urgent mitigation activities;
completes annual third-party testing, the results of which are discussed with the Company’s Audit Committee, and periodic third-party table-top exercises and gap assessments;
maintains a mandatory internal educational program for employees, including phishing simulations, required courses at the time of hire, and microlearning courses throughout the year, to ensure continual awareness of new and emerging threats;
has adopted information technology policies applicable to its employees, including the Company’s Acceptable Use Policy, Dual Use Device Policy, Information Security Policy, Password Policy and Security Incident Response Plan (“SIRP”).
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Governance
Our Board, with the assistance of its audit committee (“Audit Committee”), oversees the Company’s cybersecurity programs and strategies. At least annually, the Board receives a report on the Company’s information technology strategy, including cybersecurity measures, from our Chief Information Officer (“CIO”). The Audit Committee oversees the Company’s guidelines and policies with respect to risk assessment and risk management, including risk exposures related to information security, cybersecurity and data protection, and the steps management has taken to monitor and control such exposures. At least quarterly, the Audit Committee receives a report from our CIO on the Company’s cybersecurity risks and mitigation activities, including reports of any significant cybersecurity incident affecting the Company.
Assessment and management of the Company’s risks from cybersecurity threats is led by our Chief Information Security Officer (“CISO”) and our CIO to whom our CISO reports. Our CISO maintains our SIRP and manages day-to-day incident identification, assessment and management and continuously updates our CIO on such matters. Our CIO and CISO lead our overall cybersecurity risk management program, including ongoing assessments of system vulnerabilities and mitigation efforts. Our CISO or CIO escalates cybersecurity incidents to other members of the Company’s leadership, as appropriate. In addition, to ensure cybersecurity risks are considered within the Company’s ERM process, our CIO serves on our Enterprise Risk Committee which directs the ERM process.
Our CISO has over 12 years of experience assisting organizations in responding to cybersecurity incidents, serving as a chief information security officer for the past six years. He holds a Certified Information Systems Security Professional (CISSP) certification and a master’s degree in information technology management, with an emphasis on cybersecurity. He has also completed several supplemental courses on cyber incident response, including SANS 504 - Hacker Tools, Techniques, and Incident Handling.
Our CIO has over 20 years of experience in cybersecurity. He founded and built Internet start-ups and Internet Service Providers, protecting them from threats, and responding to cybersecurity events. He has rebuilt and directed cybersecurity departments in global public companies for the last seven years. He is an advisory board member for various cybersecurity and technology companies and holds a B.S. in Computer Science and an MBA.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Assessment and management of the Company’s risks from cybersecurity threats is led by our Chief Information Security Officer (“CISO”) and our CIO to whom our CISO reports. Our CISO maintains our SIRP and manages day-to-day incident identification, assessment and management and continuously updates our CIO on such matters.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Assessment and management of the Company’s risks from cybersecurity threats is led by our Chief Information Security Officer (“CISO”) and our CIO to whom our CISO reports. Our CISO maintains our SIRP and manages day-to-day incident identification, assessment and management and continuously updates our CIO on such matters. Our CIO and CISO lead our overall cybersecurity risk management program, including ongoing assessments of system vulnerabilities and mitigation efforts. Our CISO or CIO escalates cybersecurity incidents to other members of the Company’s leadership, as appropriate. In addition, to ensure cybersecurity risks are considered within the Company’s ERM process, our CIO serves on our Enterprise Risk Committee which directs the ERM process.
Cybersecurity Risk Role of Management [Text Block]
Assessment and management of the Company’s risks from cybersecurity threats is led by our Chief Information Security Officer (“CISO”) and our CIO to whom our CISO reports. Our CISO maintains our SIRP and manages day-to-day incident identification, assessment and management and continuously updates our CIO on such matters. Our CIO and CISO lead our overall cybersecurity risk management program, including ongoing assessments of system vulnerabilities and mitigation efforts. Our CISO or CIO escalates cybersecurity incidents to other members of the Company’s leadership, as appropriate. In addition, to ensure cybersecurity risks are considered within the Company’s ERM process, our CIO serves on our Enterprise Risk Committee which directs the ERM process.
Our CISO has over 12 years of experience assisting organizations in responding to cybersecurity incidents, serving as a chief information security officer for the past six years. He holds a Certified Information Systems Security Professional (CISSP) certification and a master’s degree in information technology management, with an emphasis on cybersecurity. He has also completed several supplemental courses on cyber incident response, including SANS 504 - Hacker Tools, Techniques, and Incident Handling.
Our CIO has over 20 years of experience in cybersecurity. He founded and built Internet start-ups and Internet Service Providers, protecting them from threats, and responding to cybersecurity events. He has rebuilt and directed cybersecurity departments in global public companies for the last seven years. He is an advisory board member for various cybersecurity and technology companies and holds a B.S. in Computer Science and an MBA.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our Board, with the assistance of its audit committee (“Audit Committee”), oversees the Company’s cybersecurity programs and strategies. At least annually, the Board receives a report on the Company’s information technology strategy, including cybersecurity measures, from our Chief Information Officer (“CIO”). The Audit Committee oversees the Company’s guidelines and policies with respect to risk assessment and risk management, including risk exposures related to information security, cybersecurity and data protection, and the steps management has taken to monitor and control such exposures. At least quarterly, the Audit Committee receives a report from our CIO on the Company’s cybersecurity risks and mitigation activities, including reports of any significant cybersecurity incident affecting the Company.
Assessment and management of the Company’s risks from cybersecurity threats is led by our Chief Information Security Officer (“CISO”) and our CIO to whom our CISO reports. Our CISO maintains our SIRP and manages day-to-day incident identification, assessment and management and continuously updates our CIO on such matters. Our CIO and CISO lead our overall cybersecurity risk management program, including ongoing assessments of system vulnerabilities and mitigation efforts. Our CISO or CIO escalates cybersecurity incidents to other members of the Company’s leadership, as appropriate. In addition, to ensure cybersecurity risks are considered within the Company’s ERM process, our CIO serves on our Enterprise Risk Committee which directs the ERM process.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
Our CISO has over 12 years of experience assisting organizations in responding to cybersecurity incidents, serving as a chief information security officer for the past six years. He holds a Certified Information Systems Security Professional (CISSP) certification and a master’s degree in information technology management, with an emphasis on cybersecurity. He has also completed several supplemental courses on cyber incident response, including SANS 504 - Hacker Tools, Techniques, and Incident Handling.
Our CIO has over 20 years of experience in cybersecurity. He founded and built Internet start-ups and Internet Service Providers, protecting them from threats, and responding to cybersecurity events. He has rebuilt and directed cybersecurity departments in global public companies for the last seven years. He is an advisory board member for various cybersecurity and technology companies and holds a B.S. in Computer Science and an MBA.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] At least annually, the Board receives a report on the Company’s information technology strategy, including cybersecurity measures, from our Chief Information Officer (“CIO”). The Audit Committee oversees the Company’s guidelines and policies with respect to risk assessment and risk management, including risk exposures related to information security, cybersecurity and data protection, and the steps management has taken to monitor and control such exposures. At least quarterly, the Audit Committee receives a report from our CIO on the Company’s cybersecurity risks and mitigation activities, including reports of any significant cybersecurity incident affecting the Company.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Significant accounting policies (Policies)
12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Basis of preparation Basis of presentationThe consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are presented in U.S. dollars unless otherwise indicated.
New accounting pronouncements adopted and policies not yet adopted The accounting policies used in preparing these consolidated financial statements and related notes are the same as those applied in the prior year.Recent accounting pronouncements not yet adopted
The following accounting pronouncements are relevant to Gates’ operations but have not yet been adopted.
Accounting Standards Update (“ASU”) 2024-03 “Income Statement - Reporting Comprehensive Income: Expense Disaggregation Disclosures”
In November 2024, the Financial Accounting Standards Board (“FASB”) issued an ASU to require disclosure of specified information about certain expense amounts comprising of Cost of sales, and Selling, general and administrative expenses, as well as qualitative description of the remaining expense amounts. The amendments in this update are intended to provide investors with additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods. The updated standard is effective for our annual periods beginning in Fiscal 2027 and interim periods beginning in the first quarter of Fiscal 2028, with early adoption permitted. We are currently evaluating the impact the updated standard will have on our consolidated financial statements and disclosures.
ASU 2023-06 “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative
In October 2023, the FASB issued an ASU, to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification (“ASC”). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K as announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. We do not expect the application of this standard to have a material impact on our consolidated financial statements and disclosures.
ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures
In December 2023, the FASB issued an ASU that requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The updated standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The updated standard is effective for our annual periods beginning in Fiscal 2025 and interim periods beginning in the first quarter of Fiscal 2026, with early adoption permitted. We are currently evaluating the impact the updated standard will have on our financial statement disclosures.
Accounting periods Accounting periods
The Company prepares its annual consolidated financial statements as of the Saturday nearest December 31. Accordingly, the consolidated balance sheets are presented as of December 28, 2024 and December 30, 2023 and the related consolidated statements of operations, comprehensive income, cash flows, and shareholders’ equity are presented for the years ended December 28, 2024 (“Fiscal 2024”), December 30, 2023 (“Fiscal 2023”) and December 31, 2022 (“Fiscal 2022”).
Basis of consolidation Basis of consolidation
The consolidated financial statements include the results of operations, cash flows and assets and liabilities of Gates and its majority-owned subsidiaries, and our share of the results of our equity method investees.
We consolidate entities in which we have a controlling interest or when we are considered the primary beneficiary of a variable interest entity. The consolidated financial statements reflect the assets, liabilities, revenues and expenses of consolidated subsidiaries and the non-controlling parties’ ownership interest is presented as a non-controlling interest. Intercompany transactions and balances, and any unrealized profits or losses arising from intercompany transactions, are eliminated on consolidation.
In 2022, as a result of the conflict between Russia and Ukraine, the Company began exiting substantially all its activities in Russia with only residual cash and de minimis administrative costs remaining in 2024. During the year ended December 28, 2024, the Company concluded that the inability to repatriate remaining cash coupled with the significant government regulations and restrictions currently in place, which are expected to continue or worsen, severely limits its ability to manage and control its Russian subsidiary. As a result, the Company's Russian subsidiary was deconsolidated as of December 28, 2024. The impact of the deconsolidation was a $12.7 million loss included in the results of operations for the year ended December 28, 2024.
Foreign currency transactions and translation Foreign currency transactions and translationTransactions denominated in currencies other than an entity’s functional currency (foreign currencies) are translated into the entity’s functional currency at the exchange rates prevailing on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing on the reporting date. Exchange differences arising from changes in exchange rates are recognized in net income for the period.
On consolidation, the results of operations of entities whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the weighted average exchange rate for the period and their assets and liabilities are translated into U.S. dollars at the exchange rate prevailing on the balance sheet date. Currency translation differences are recognized within other comprehensive income (“OCI”) as a separate component of accumulated OCI. In the event that a foreign operation is sold, or substantially liquidated, the cumulative currency translation differences that are attributable to the operation are reclassified to net income.
In the statement of cash flows, the cash flows of operations whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the weighted average exchange rate for the period.
Net sales Net sales
Gates derives its net sales primarily from the sale of a wide range of power transmission and fluid power products and components for a large variety of industrial and automotive applications, both in the aftermarket and OEM channels, throughout the world.
Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We apply the five-step model under Topic 606 (“Revenue from Contracts with Customers”) to all contracts. The five steps are: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) we satisfy a performance obligation.
In most of our agreements with customers, we consider accepted customer purchase orders, which in some cases are governed by master sales agreements, to represent the contracts with our customers. Revenue from the sale of goods under these contracts is measured at the invoiced amount, net of estimated returns, early settlement discounts and rebates. Taxes collected from customers relating to product sales and remitted to government authorities are excluded from revenues. Where a customer has the right to return goods, future returns are estimated based on historical returns profiles. Settlement discounts that may apply to unpaid invoices are estimated based on the settlement histories of the relevant customers. Our transaction prices often include variable consideration, usually in the form of discounts and rebates that may apply to issued invoices. The reduction in the transaction price for variable consideration requires that we make estimations of the expected total qualifying sales to the relevant customers. These estimates, including an analysis for potential constraint on variable consideration, take into account factors such as the nature of the rebate program, historical information and expectations of customer and consumer behavior. Overall, the transaction price is reduced to reflect our estimate of the consideration that is not probable of significant reversal.
We allocate the transaction price to each distinct performance obligation based on their relative standalone selling price. The product price as specified on the accepted purchase order is considered to be the standalone selling price.
In substantially all of our contracts with customers, our performance obligations are satisfied at a point in time, rather than over a period of time, when control of the product is transferred to the customer. This occurs typically at shipment. In determining whether control has transferred and the customer is consequently able to control the use of the product for their own benefit, we consider if there is a present right to payment, legal title and physical possession has been transferred, whether the risks and rewards of ownership have transferred to the customer, and if acceptance of the asset by the customer is more than perfunctory.
Selling, general and administrative expenses Selling, general and administrative expenses
Shipping and handling costs
Costs of outbound shipping and handling are included in SG&A.
Research and development costs
Research and development costs
Research and development costs are charged to net income in the period in which they are incurred.
Advertising costs
Advertising costs
Advertising costs are expensed as incurred and included in SG&A.
Restructuring expenses Restructuring expenses
Restructuring expenses are incurred in major projects undertaken to rationalize and improve our cost competitiveness. Restructuring expenses incurred during the periods presented are analyzed in Note 5.
Liabilities in respect of termination benefits provided to employees who are involuntarily terminated under the terms of a one-time benefit arrangement are recognized over the future service period when those employees are required to render services to the entity beyond the minimum retention period. If employees are not required to render service until they are terminated or if they will not be retained to render service beyond 60 days or a longer legal notification period, the liability is recognized on the communication date.
Termination benefits that are covered by a contract or an ongoing benefit arrangement are recognized when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. Benefits that are offered for a short period of time in exchange for voluntary termination are recognized when the employees accept the offer.
Restructuring expenses other than termination benefits and lease exit costs are recognized only when the Company has incurred a related liability.
Inventories Inventories
Inventories are stated at the lower of cost or net realizable value. A valuation adjustment is made to inventory for any excess, obsolete or slow-moving items based on management’s review of on-hand inventories compared to historical and estimated future sales and usage profiles. Any consequent write-down of inventory results in a new cost basis for inventory.
Cost represents the expenditure incurred in bringing inventories to their existing location and condition, which may include the cost of raw materials, direct labor costs, other direct costs and related production overheads. Cost is generally determined on a first in, first out (“FIFO”) basis, but the cost of certain inventories is determined on a last in, first out (“LIFO”) basis.
Goodwill Goodwill
Goodwill arising in a business combination is allocated to the reporting unit that is expected to benefit from the synergies of the acquisition.
Where goodwill is attributable to more than one reporting unit, the goodwill is determined by allocating the purchase consideration in proportion to their respective business enterprise values and comparing the allocated purchase consideration with the fair value of the identifiable assets and liabilities of the reporting unit. Goodwill is not amortized but is tested for impairment on the first day of the fourth quarter or more frequently whenever events or changes in circumstances indicate that the carrying value may not be recoverable and is carried at cost less any recognized impairment. For both reporting units, which are also our reportable segments, the fair values exceeded the carrying values and no goodwill impairments were therefore recognized during Fiscal 2024, Fiscal 2023 or Fiscal 2022.
To identify a potential impairment of goodwill, the fair value of the reporting unit to which the goodwill is allocated is compared to its carrying amount, including goodwill. We calculate fair values using a weighted blend of income and market approaches. If the fair value of the reporting unit exceeds its carrying amount, the goodwill of the reporting unit is not considered impaired. If the fair value is lower than the carrying amount, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the amount of goodwill allocated to that reporting unit.
Other intangible assets Other intangible assets
Other intangible assets are stated at cost less accumulated amortization and any recognized impairment.
(i) Assets acquired in business combinations
An acquired intangible asset with a finite useful life is amortized on a straight-line basis so as to charge its cost, which represents its fair value at the date of acquisition, to net income over the Company’s expectation of its useful life, as follows:
Customer relationships
15 to 17 years
Technology
5 to 7 years
Acquired brands and trade names are considered to have an indefinite useful life and are not amortized but are tested at least annually for impairment and are carried at cost less any recognized impairment.
(ii) Computer software
Computer software that is not integral to an item of property, plant and equipment is recognized separately as an intangible asset. Computer software is amortized on a straight-line basis over its estimated useful life, which ranges from 2 to 6 years.
Property, plant and equipment Property, plant and equipment
Property, plant and equipment is recorded at cost less accumulated depreciation and any recognized impairment losses. Major improvements are capitalized. Expenditures for repairs and maintenance that do not significantly extend the useful life of the asset are expensed as incurred.
Land and assets under construction are not depreciated. Depreciation of property, plant and equipment, other than land and assets under construction, is generally expensed on a straight-line basis over their estimated useful lives. The Company’s estimated useful lives of items of property, plant and equipment are generally in the following ranges:
Buildings and improvements
30 to 40 years
Leasehold improvementsShorter of lease term or useful life
Machinery, equipment and vehicles
2 to 20 years
Leases Leases
Gates has a large number of leases covering a wide variety of tangible assets that are used in our operations across the world. The value of our global leases is concentrated in a relatively small number of real estate leases, which accounted for approximately 92% of the lease liability under non-cancellable leases as of December 28, 2024. The remaining leases are predominantly comprised of equipment and vehicle leases.
In determining the impact of renewal options on the lease term, we consider various economic factors, including real estate strategies, the nature, length and underlying terms of the agreement, as well as the uncertainty of the condition of leased equipment at the end of the lease term.
Certain payments under our lease agreements, such as property taxes and utility costs, are excluded from the measurement of our right-of-use assets and lease liabilities and are recognized instead as variable payments in the period in which the obligation for those payments is incurred. A number of our leases, particularly real estate leases, include base rent escalation clauses. The majority of these are based on the change in a local consumer price or similar inflation index. Payments that vary based on an index or rate are included in the measurement of our right-of-use assets and lease liabilities at the rate as of the commencement date with any subsequent changes to those payments being recognized as variable payments in the period in which they occur.
Gates does not have any significant leases containing residual value guarantees, restrictions or covenants. Additionally, as of December 28, 2024, there were no significant new leases that have not yet commenced.
The discount rate used to calculate the present value of the future minimum lease payments is the rate implicit in the lease, when readily available. As most of our leases do not have a readily determinable implicit rate, we discount the future minimum lease payments using an incremental borrowing rate which represents the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. We determine this rate at a country or lower level and take into account factors including currency, country risk premium, industry risk and adjustments for collateralized debt. Appropriate yield curves are used to derive different debt tenors to approximate the applicable lease term.
The discount rate is reassessed when there is a remeasurement of the lease liability, which happens predominantly when there is a contract modification and that modification does not result in a separate contract.
We have adopted the following practical expedients:
(i)we will not separate the lease component from the non-lease component for all asset classes. We have therefore not allocated consideration in a contract between lease and non-lease components; and
(ii)we recognize the payments on short-term leases (leases with terms at inception of 12 months or fewer) in net income on a straight-line basis over the lease term. No amount is recognized on the balance sheet with respect to these leases.
Cash and cash equivalents Cash and cash equivalentsCash and cash equivalents comprise cash on hand, deposits available on demand and other short-term, highly liquid investments with maturities on acquisition of 90 days or less. We have cash concentrations in certain large, highly-rated global financial institutions. Management closely monitors the credit quality of the institutions in which it holds deposits.
Restricted cash Restricted cashRestricted cash, which is included in the prepaid expenses and other assets line in the consolidated balance sheets, includes cash given as collateral under letters of credit for insurance and regulatory purposes.
Trade accounts receivable Trade accounts receivable
Trade accounts receivable represent the amount of sales of goods to customers, net of discounts and rebates, for which payment has not been received, less an allowance for expected credit losses. Our businesses develop their expected loss estimates based either on the aging profile of outstanding receivables or by applying an experience factor (either a percentage of sales or a percentage of open receivables). These methodologies are based primarily on historical trends and experience, but credit controllers also regularly assess individual customer accounts to identify any potential increases or decreases in the level of expected credit loss needed to be applied to each customer based on current circumstances and future expectations.
Before accepting a new customer, we assess their credit quality and establish a credit limit. Credit quality is assessed by using data maintained by reputable credit rating agencies, by checking of references included in credit applications and, where they are available, by reviewing the customer’s recent financial statements. Credit limits are subject to multiple levels of authorization and are reviewed on a regular basis.
Although Gates has a wide variety of customers from multinational original equipment manufacturers and distributors to small family-owned businesses, the majority of our sales are generated from large companies with low credit risk.
Movements in our allowance for expected credit losses during the periods presented are analyzed in Note 22.
During Fiscal 2021, the Company implemented a program with an unrelated third party under which we may periodically sell trade accounts receivable from one of our aftermarket customers with whom we have extended payment terms as part of a commercial agreement. The purpose of using this program is to generally offset the working capital impact resulting from this terms extension. All eligible accounts receivable from this customer are covered by the program, and any factoring is solely at our option. Following the factoring of a qualifying receivable, because we maintain no continuing involvement in the underlying receivable, and collectability risk is fully transferred to the unrelated third party, we account for these transactions as a sale of a financial asset and derecognize the asset. Cash received under the program is classified as operating cash inflows in the consolidated statements of cash flows.
Debt Debt
Debt is initially measured at its principal amount, net of directly attributable transaction costs, if any, and is subsequently measured at amortized cost using the effective interest rate method.
Accounts payable Accounts payable
Accounts payable represents the amount of invoices received from suppliers for purchases of goods and services and the amount of goods received but not invoiced, for which payment has not been made.
Derivative financial instruments Derivative financial instruments
We use derivative financial instruments, principally foreign currency swaps, forward foreign currency contracts, interest rate caps (options) and interest rate swaps, to reduce our exposure to foreign currency risk and interest rate risk. We do not hold or issue derivatives for speculative purposes and monitor closely the credit quality of the institutions with which we transact.
We recognize all derivative financial instruments as either assets or liabilities at fair value on the balance sheet date. The accounting for the change in the fair value is recognized in net income based on the nature of the items being hedged unless the financial instrument has been designated in an effective cash flow or net investment hedging relationship, in which case the change in fair value is recognized in OCI.
Fair Value Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities that are held at fair value, or for which fair values are presented in these consolidated financial statements, have been categorized into one of three levels to reflect the degree to which observable inputs are used in determining the fair values. Where a change in the determination of the fair value of a financial asset or liability results in a transfer between the levels of the fair value hierarchy, we recognize that transfer at the end of the reporting period.
Post-retirement benefits Post-retirement benefits
Post-retirement benefits comprise pension benefits provided to employees and other benefits, mainly healthcare, provided to certain employees in North America.
We account for our post-retirement benefit plans in accordance with Topic 715 “Compensation – Retirement Benefits”, which is based on the principle that the cost of providing these benefits is recognized in net income over the service periods of the participating employees.
For defined benefit plans, the net obligation or surplus arising from providing the benefits is recognized as a liability or an asset determined by actuarial valuations of each of the plans that are carried out annually by independent qualified actuaries as of the year end balance sheet date. Benefit obligations are measured using the projected unit credit method. Plan assets (if any) are measured at fair value. We recognize the service cost component of our net periodic pension and other post-retirement benefit cost in the lines within operating income to which the relevant employees' other compensation costs are reported. All other components of the net periodic benefit cost (which include the interest cost, the expected return on plan assets, gains or losses on settlements and curtailments, the amortization of prior year service cost or credit and prior year actuarial gains and losses) are included in the other (expenses) income line, outside of operating income from continuing operations.
Actuarial gains and losses represent differences between the expected and actual returns on the plan assets, gains and losses on the plan liabilities and the effect of changes in actuarial assumptions. We use the “corridor approach” whereby, to the extent that cumulative actuarial gains and losses exceed 10% of the greater of the market related value of the plan assets and the projected benefit obligation at the beginning of the fiscal year, they are reclassified from accumulated other comprehensive income to net income over the average remaining service periods of participating employees.
Gains and losses on settlements and curtailments are recognized in net income in the period in which the curtailment or settlement occurs.
Share-based compensation Share-based compensation
Share-based compensation has historically been provided to certain of our employees under share option, bonus and other share award plans. All share-award plans are equity settled, except for certain awards issued in the form of stock appreciation rights (“SARs”) to employees in China, where local regulations necessitate a cash-settled award. These SARs are therefore accounted for as liabilities rather than equity.
We recognize compensation expense based on the fair value of the awards, measured using either the share price on the date of grant, a Black-Scholes option-pricing model or a Monte-Carlo valuation model, depending on the nature of the award. Fair value is determined at the date of grant and reflects market and performance conditions and all non-vesting conditions.
Generally, the compensation expense for each separately vesting portion of the award is recognized on a straight-line basis over the vesting period for that portion of the award. Compensation expense is recognized for awards containing market conditions regardless of whether or not the market condition is met, whereas compensation expense for awards containing performance conditions is recognized only to the extent that it is probable that those performance conditions will be met. Adjustments are made to reflect expected and actual forfeitures during the vesting period due to failure to satisfy service conditions or performance conditions.
For equity awards, fair value is not subsequently remeasured unless the conditions on which the award was granted are modified. An amount corresponding to the compensation expense for equity awards is recognized in equity as additional paid in capital.
For liability awards, the fair value is remeasured each period and the change in fair value is recognized in net income for the period with a corresponding change in the outstanding liability.
Income taxes Income taxes
Current tax is the amount of tax payable or receivable in respect of the taxable income for the period. Taxable income differs from financial reporting income because it excludes items of income or expense recognized for financial reporting purposes that are either not taxable or deductible for tax purposes or are taxable or deductible in other periods. Current tax is calculated using tax rates that have been enacted at the balance sheet date.
Management assesses unrecognized tax benefits based upon an evaluation of the facts, circumstances and information available at the balance sheet date. Provision is made for unrecognized tax benefits to the extent that the amounts previously taken or expected to be taken in tax returns exceeds the tax benefits that are recognized in the consolidated financial statements in respect of the tax positions. A tax benefit is recognized in the consolidated financial statements only if management considers that it is more likely than not that the tax position will be sustained on examination by the relevant tax authority solely on the technical merits of the position and is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement assuming that the tax authority has full knowledge of all relevant information. Provisions for unrecognized tax benefits are reviewed regularly and are adjusted to reflect events such as the expiration of limitation periods for assessing tax, guidance given by the tax authorities and court decisions.
Interest and penalties relating to unrecognized tax benefits are accrued in accordance with the applicable tax legislation on any excess of the tax benefit claimed or expected to be claimed in a tax return and the tax benefit recognized in the consolidated financial statements. Interest and penalties are recognized as a component of income tax benefit (expense) in the consolidated statements of operations and accrued interest and penalties are included under the related taxes payable line in the consolidated balance sheets.
Deferred tax assets and liabilities are recognized based on the expected future tax consequences of the difference between the financial statement carrying amount and the respective tax basis. Deferred taxes are measured on the enacted rates expected to apply to taxable income at the time the difference is anticipated to reverse. Deferred tax assets are reduced through the establishment of a valuation allowance if it is more likely than not that the deferred tax asset will not be realized taking into account the timing and amount of the reversal of taxable temporary differences, expected future taxable income and tax planning strategies.
Deferred tax is provided on taxable temporary differences arising on investments in foreign subsidiaries, except where we intend, and are able, to reinvest such amounts on a permanent basis or to remit such amounts in a tax-free manner.
Use of estimates Use of estimates
The preparation of consolidated financial statements under U.S. GAAP requires us to make assumptions and estimates concerning the future that affect the reported amounts of assets, liabilities, revenue and expenses. Estimates and assumptions are particularly important in accounting for items such as the timing and amount of revenue recognition, rebates, impairment of long-lived assets, intangible assets and goodwill, inventory valuation, financial instruments, expected credit losses, product warranties, income taxes and post-retirement benefits. Estimates and assumptions used are based on factors such as historical experience, observance of trends in the industries in which we operate and information available from our customers and other outside sources.
Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after December 28, 2024 may result in actual outcomes that differ from those contemplated by our assumptions and estimates.
v3.25.0.1
Significant accounting policies (Tables)
12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Schedule of Finite-Lived Intangible Assets Acquired Amortization Schedule
An acquired intangible asset with a finite useful life is amortized on a straight-line basis so as to charge its cost, which represents its fair value at the date of acquisition, to net income over the Company’s expectation of its useful life, as follows:
Customer relationships
15 to 17 years
Technology
5 to 7 years
Schedule of Property Plant, and Equipment The Company’s estimated useful lives of items of property, plant and equipment are generally in the following ranges:
Buildings and improvements
30 to 40 years
Leasehold improvementsShorter of lease term or useful life
Machinery, equipment and vehicles
2 to 20 years
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Cost
Land and buildings$322.0 $335.0 
Machinery, equipment and vehicles991.2 996.8 
Assets under construction63.3 55.1 
1,376.5 1,386.9 
Less: Accumulated depreciation and impairment(797.0)(756.9)
Total$579.5 $630.0 
v3.25.0.1
Segment information (Tables)
12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Schedule of Net Sales by Operating Segment
Sales between reporting segments and the impact of such sales on Adjusted EBITDA for each segment are not included in internal reports presented to the CEO and have therefore not been included below.
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Power Transmission
$2,108.1 $2,191.2 $2,173.7 
Fluid Power
1,300.1 1,379.0 1,380.5 
Net sales$3,408.2 $3,570.2 $3,554.2 
Adjusted EBITDA by segment was as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Power Transmission$468.7 $460.6 $404.0 
Fluid Power
292.4 286.4 276.6 
Adjusted EBITDA$761.1 $747.0 $680.6 
The table below represents the segment profit or loss provided to the CEO on a quarterly basis:
For the year ended
December 28, 2024December 30, 2023December 31, 2022
Power TransmissionFluid PowerTotalPower TransmissionFluid PowerTotalPower TransmissionFluid PowerTotal
Net sales$2,108.1 $1,300.1 $3,408.2 $2,191.2 $1,379.0 $3,570.2 $2,173.7 $1,380.5 $3,554.2 
Adjusted cost of sales (1)
(1,241.7)(783.9)(2,025.6)(1,333.3)(870.2)(2,203.5)(1,371.3)(910.6)(2,281.9)
Adjusted selling, general and administrative expenses (2)
(449.7)(270.8)(720.5)(458.2)(276.9)(735.1)(449.9)(240.8)(690.7)
Depreciation and software amortization52.1 47.0 99.1 50.4 48.4 98.8 51.5 47.5 99.0 
Other adjustments:
Credit (gain) loss related to customer bankruptcy (included in SG&A) (3)
(0.1)— (0.1)7.4 4.0 11.4 — — — 
Cybersecurity incident expenses (4)
— — — 3.1 2.1 5.2 — — — 
Adjusted EBITDA$468.7 $292.4 $761.1 $460.6 $286.4 $747.0 $404.0 $276.6 $680.6 
(1)    Adjusted cost of sales excluded inventory impairments and adjustments primarily related to the reversal of the adjustment to remeasure certain inventories on a LIFO basis, and restructuring related expenses (included in cost of sales).
(2)    Adjusted selling, general and administrative expenses excluded acquired intangible assets amortization, share-based compensation expense, and restructuring related expenses (included in SG&A).
(3)    On January 31, 2023, one of our customers filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In connection with the bankruptcy proceedings, we preliminarily evaluated our potential risk and exposure relating to our outstanding pre-petition accounts receivable balance from the customer and recorded an initial pre-tax charge to reflect our estimated recovery. We continue to monitor the circumstances surrounding the bankruptcy and adjust our estimate as necessary.
(4)    On February 11, 2023, Gates determined that it was the target of a malware attack. Cybersecurity incident expenses include legal, consulting, and other costs incurred as a direct result of this incident, some of which may be partially offset by insurance recoveries.
Schedule of Net sales by Key Geographic Regions and Markets
The following table summarizes our net sales by key geographic region:
For the year ended
December 28, 2024December 30, 2023December 31, 2022
(dollars in millions)
Power Transmission
Fluid Power
Power Transmission
Fluid Power
Power Transmission
Fluid Power
U.S.$568.1 $688.0 $591.5 $724.5 $636.8 $733.3 
North America, excluding the U.S.239.8 195.0 230.1 214.3 205.6 208.8 
South America104.3 38.1 110.7 43.2 92.1 49.7 
United Kingdom ("U.K.")37.0 67.8 44.4 71.4 45.1 68.9 
Luxembourg252.7 86.6 247.8 88.9 195.4 91.7 
EMEA(1), excluding the U.K. and Luxembourg
337.3 103.8 382.3 121.6 402.9 108.3 
East Asia & India277.8 80.6 287.1 79.7 295.5 75.4 
Greater China291.1 40.2 297.3 35.4 300.3 44.4 
Net sales$2,108.1 $1,300.1 $2,191.2 $1,379.0 $2,173.7 $1,380.5 
(1)    Europe, Middle East and Africa (“EMEA”).
The following table summarizes our segment net sales into OEM and Replacement channels:
For the year ended
December 28, 2024December 30, 2023December 31, 2022
(dollars in millions)Power TransmissionFluid PowerPower TransmissionFluid PowerPower TransmissionFluid Power
Replacement$1,393.0 $910.0 $1,389.2 $909.0 $1,347.9 $900.6 
OEM715.1 390.1 802.0 470.0 825.8 479.9 
Net sales$2,108.1 $1,300.1 $2,191.2 $1,379.0 $2,173.7 $1,380.5 
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Property, plant and equipment, net by geographic location
U.S.$154.9 $165.0 
Rest of North America116.3 129.1 
U.K.30.4 29.5 
Rest of EMEA151.1 158.8 
East Asia and India36.4 39.2 
Greater China67.9 81.9 
South America22.5 26.5 
$579.5 $630.0 
Schedule of Reconciliation of Adjusted EBITDA to Net Income from Continuing Operations
Reconciliation of net income from continuing operations to Adjusted EBITDA:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Income from continuing operations before taxes328.0 285.3 257.8 
Interest expense155.8 163.2 139.4 
Loss on deconsolidation of Russian subsidiary (1)
12.7 — — 
Other (income) expenses(17.8)14.1 (13.2)
Operating income from continuing operations478.7 462.6 384.0 
Depreciation and amortization216.9 217.5 217.2 
Transaction-related expenses (2)
3.3 2.2 2.1 
Asset impairments— 0.1 1.1 
Restructuring expenses6.5 11.6 9.5 
Share-based compensation expense28.8 27.4 44.3 
Inventory impairments and adjustments (included in cost of sales)(3)
22.3 7.4 20.9 
Restructuring related expenses (included in cost of sales)1.8 0.4 0.8 
Restructuring related expenses (included in SG&A)2.9 1.0 0.5 
Credit (gain) loss related to customer bankruptcy (included in SG&A) (4)
(0.1)11.4 — 
Cybersecurity incident expenses (5)
— 5.2 — 
Other items not directly related to current operations— 0.2 0.2 
Adjusted EBITDA$761.1 $747.0 $680.6 

(1)    In July 2022, as a result of the conflict between Russia and Ukraine, Gates suspended our operations in Russia. As of September 28, 2024, we deconsolidated the Russian subsidiary upon loss of control and recognized a deconsolidation loss.
(2)    Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.
(3)    Inventory impairments and adjustments include the reversal of the adjustment to remeasure certain inventories on a LIFO basis. The recent inflationary environment has caused LIFO values to drop below FIFO values because LIFO measurement results in the more recent inflated costs being matched against current sales while historical, lower costs are retained in inventories.
(4)    On January 31, 2023, one of our customers filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In connection with the bankruptcy proceedings, we preliminarily evaluated our potential risk and exposure relating to our outstanding pre-petition accounts receivable balance from the customer and recorded an initial pre-tax charge to reflect our estimated recovery. We continue to monitor the circumstances surrounding the bankruptcy and adjust our estimate as necessary.
(5)    On February 11, 2023, Gates determined that it was the target of a malware attack. Cybersecurity incident expenses include legal, consulting, and other costs incurred as a direct result of this incident, some of which may be partially offset by insurance recoveries.
v3.25.0.1
Restructuring and restructuring related expenses (Tables)
12 Months Ended
Dec. 28, 2024
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Costs
Overall costs associated with our restructuring and other restructuring related initiatives have been recognized in the consolidated statements as set forth below. Expenses incurred in relation to certain of these actions qualify as restructuring expenses under U.S. GAAP.
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Restructuring expenses:
—Severance expense $0.5 $3.7 $4.9 
—Non-severance labor and benefit expenses0.5 1.2 0.5 
—Consulting expenses3.2 3.4 1.8 
—Other net restructuring expenses 2.3 3.3 2.3 
6.5 11.6 9.5 
Restructuring expenses in asset impairments:
—Impairment of fixed and other assets— 0.1 1.1 
Restructuring expenses in cost of sales:
—Impairment of inventory— 0.1 1.5 
Total restructuring expenses$6.5 $11.8 $12.1 
Other restructuring related expenses:
—Severance and restructuring related expenses included in cost of sales$1.8 $0.4 $0.8 
—Severance and restructuring related expenses included in SG&A2.9 1.0 0.5 
Total restructuring related expenses$4.7 $1.4 $1.3 
These expenses include the impairment of inventory, which is recognized in cost of sales. Analyzed by segment, our restructuring expenses were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Power Transmission$1.8 $7.1 $5.8 
Fluid Power4.7 4.7 6.3 
Continuing operations$6.5 $11.8 $12.1 
Schedule of Restructuring Reserves Activity
The following summarizes the reserve for restructuring expenses for the year ended December 28, 2024 and December 30, 2023, respectively:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
Balance as of the beginning of the period$5.1 $7.5 
Utilized during the period(8.7)(14.1)
Charge for the period7.2 12.4 
Released during the period(0.7)(0.8)
Foreign currency translation(0.1)0.1 
Balance as of the end of the period$2.8 $5.1 
v3.25.0.1
Income taxes (Tables)
12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income from Continuing Operations Before Taxes
Gates Industrial Corporation plc is domiciled in the United Kingdom. Income from continuing operations before income taxes is summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
U.K.$87.8 $26.4 $(11.0)
U.S.44.0 (58.2)17.1 
Other foreign196.2 317.1 251.7 
Income from continuing operations before income taxes$328.0 $285.3 $257.8 
Schedule of Income Tax Expense (Benefit) on Income from Continuing Operations Analyzed by Tax Jurisdiction
Income tax expense on income from continuing operations analyzed by tax jurisdiction is as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Current tax
U.K.$(7.6)$0.2 $(1.7)
U.S.44.5 18.9 42.0 
Other foreign82.7 74.9 54.3 
Total current tax expense$119.6 $94.0 $94.6 
Deferred income tax
U.K.$16.1 $9.0 $(2.5)
U.S.(36.0)(48.6)(54.5)
Other foreign7.8 (26.1)(22.7)
Total deferred income tax (benefit)(12.1)(65.7)(79.7)
Income tax expense$107.5 $28.3 $14.9 
Schedule of Effective Income Tax Rate Reconciliation
Reconciliation of the applicable statutory income tax rate to the reported effective income tax rate:
For the year ended
December 28,
2024
December 30,
2023
December 31,
2022
U.K. corporation tax rate25.0 %23.5 %19.0 %
Effect of:
—State tax provision, net of Federal benefit0.3 %(1.5 %)(0.2 %)
—Provision for unrecognized income tax benefits(3.2 %)(4.3 %)(9.8 %)
—Company-owned life insurance(3.1 %)(3.5 %)(3.1 %)
—Tax on international operations(1)
3.3 %2.6 %20.6 %
—Manufacturing incentives(2)
(0.2 %)(4.7 %)(3.9 %)
—Change in valuation allowance(3)
(13.9 %)(3.1 %)(20.6 %)
—Deferred income tax rate changes(4)
20.7 %0.5 %(0.1 %)
—Currency exchange rate movements2.9 %0.6 %1.9 %
—Other permanent differences1.0 %(0.2 %)2.0 %
Reported effective income tax rate32.8 %9.9 %5.8 %
(1)“Tax on international operations” includes U.S. tax on foreign earnings and unremitted earnings of foreign subsidiaries, foreign deferred tax adjustments, and effects of global funding structures and differences between statutory and foreign tax rates. Fiscal 2022 includes $22.6 million expiration of U.S. foreign tax credits that had a full valuation allowance against them.
(2)“Manufacturing incentives” for Fiscal 2024 totaled $0.7 million, primarily related to incentives generated in the U.S. and Canada. Fiscal 2023 totaled $13.3 million, related to incentives generated in Türkiye, Poland and the U.S. For Fiscal 2022 totaled $10.0 million, primarily related to $6.7 million of incentives generated in Türkiye and the U.S.
(3)“Change in valuation allowance” is comprised primarily of:
For the year ended
Expense (benefit)December 28,
2024
December 30,
2023
December 31,
2022
Luxembourg currency revaluation on indefinite-lived net operating losses$(9.4)$(5.7)$(14.8)
Luxembourg deferred income tax rate change$(42.9)$— $— 
Poland tax credits$3.7 $— $— 
Türkiye net operating losses$5.5 $— $— 
U.S. foreign tax credits$(3.2)$0.4 $(39.9)
U.S. finite-lived net operating losses$3.4 $(2.1)$— 
(4)“Deferred income tax rate changes” includes Luxembourg rate changes which totaled $67.0 million, of which $44.2 million had a full valuation allowance against them.
Schedule of Deferred Tax Assets (Liabilities)
Deferred income tax assets (liabilities) recognized by the Company were as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Deferred income tax assets:
Accounts receivable$34.0 $39.4 
Lease liabilities40.9 41.6 
Accrued expenses35.8 35.6 
Post-retirement benefit obligations16.9 17.5 
Compensation22.8 26.4 
Net operating losses1,478.0 1,587.9 
Capital losses190.1 192.5 
Credits67.9 69.8 
Interest212.3 186.5 
Other items8.5 8.0 
$2,107.2 $2,205.2 
Valuation allowances(1,240.6)(1,288.8)
Total deferred income tax assets$866.6 $916.4 
Deferred income tax liabilities:
Inventories$(12.3)$(9.7)
Property, plant and equipment(22.1)(29.3)
Lease right-of-use assets(36.1)(36.1)
Intangible assets(278.7)(316.9)
Undistributed earnings(20.7)(21.4)
Other items— — 
Total deferred income tax liabilities$(369.9)$(413.4)
Net deferred income tax assets$496.7 $503.0 
Schedule of Unrecognized Tax Positions
The following is a reconciliation of the gross beginning and ending amount of unrecognized income tax benefits, excluding interest and penalties:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
At the beginning of the period$72.5 $76.0 $104.6 
Increases for tax positions related to the current period10.7 8.5 6.5 
Increases for tax positions related to prior periods4.0 1.8 0.4 
Decreases for tax positions related to prior periods(11.7)(15.0)— 
Decreases related to settlements(2.2)— (2.8)
Decreases due to lapsed statute of limitations— (2.7)(27.6)
Foreign currency translation(4.9)3.9 (5.1)
At the end of the period$68.4 $72.5 $76.0 
v3.25.0.1
Earnings per share (Tables)
12 Months Ended
Dec. 28, 2024
Earnings Per Share [Abstract]  
Schedule of Computation of Net Income Per Share
The computation of earnings per share is presented below:
For the year ended
(dollars in millions, except share numbers and per share amounts)
December 28,
2024
December 30,
2023
December 31,
2022
Net income attributable to shareholders
$194.9 $232.9 $220.8 
Weighted average number of shares outstanding
259,483,897 271,880,047 284,063,083 
Dilutive effect of share-based awards
5,191,669 3,768,281 3,523,127 
Diluted weighted average number of shares outstanding
264,675,566 275,648,328 287,586,210 
Number of anti-dilutive shares excluded from diluted earnings per share calculation1,949,256 4,417,967 7,538,260 
Basic earnings per share
$0.75 $0.86 $0.78 
Diluted earnings per share
$0.74 $0.84 $0.77 
v3.25.0.1
Inventories (Tables)
12 Months Ended
Dec. 28, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Raw materials and supplies$194.3 $168.2 
Work in progress43.1 43.3 
Finished goods438.6 435.7 
Total inventories$676.0 $647.2 
v3.25.0.1
Property, plant and equipment (Tables)
12 Months Ended
Dec. 28, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property Plant, and Equipment The Company’s estimated useful lives of items of property, plant and equipment are generally in the following ranges:
Buildings and improvements
30 to 40 years
Leasehold improvementsShorter of lease term or useful life
Machinery, equipment and vehicles
2 to 20 years
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Cost
Land and buildings$322.0 $335.0 
Machinery, equipment and vehicles991.2 996.8 
Assets under construction63.3 55.1 
1,376.5 1,386.9 
Less: Accumulated depreciation and impairment(797.0)(756.9)
Total$579.5 $630.0 
v3.25.0.1
Goodwill (Tables)
12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
(dollars in millions)
Power
Transmission
Fluid
Power
Total
Cost and carrying amount
As of December 31, 2022$1,315.2 $665.9 $1,981.1 
Foreign currency translation23.3 34.3 57.6 
As of December 30, 20231,338.5 700.2 2,038.7 
Foreign currency translation(81.0)(48.8)(129.8)
As of December 28, 2024$1,257.5 $651.4 $1,908.9 
v3.25.0.1
Intangible assets (Tables)
12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
As of December 28, 2024As of December 30, 2023
(dollars in millions)
CostAccumulated
amortization and
impairment
NetCostAccumulated
amortization and
impairment
Net
Finite-lived:
—Customer relationships
$1,921.5 $(1,194.7)$726.8 $2,003.6 $(1,127.7)$875.9 
—Technology
90.5 (90.5) 90.6 (90.3)0.3 
—Capitalized software
138.2 (85.8)52.4 117.3 (76.8)40.5 
2,150.2 (1,371.0)779.2 2,211.5 (1,294.8)916.7 
Indefinite-lived:
—Brands and trade names
513.4 (44.0)469.4 513.4 (44.0)469.4 
Total intangible assets
$2,663.6 $(1,415.0)$1,248.6 $2,724.9 $(1,338.8)$1,386.1 
Schedule of Indefinite-Lived Intangible Assets
As of December 28, 2024As of December 30, 2023
(dollars in millions)
CostAccumulated
amortization and
impairment
NetCostAccumulated
amortization and
impairment
Net
Finite-lived:
—Customer relationships
$1,921.5 $(1,194.7)$726.8 $2,003.6 $(1,127.7)$875.9 
—Technology
90.5 (90.5) 90.6 (90.3)0.3 
—Capitalized software
138.2 (85.8)52.4 117.3 (76.8)40.5 
2,150.2 (1,371.0)779.2 2,211.5 (1,294.8)916.7 
Indefinite-lived:
—Brands and trade names
513.4 (44.0)469.4 513.4 (44.0)469.4 
Total intangible assets
$2,663.6 $(1,415.0)$1,248.6 $2,724.9 $(1,338.8)$1,386.1 
Schedule of Future Amortization of Finite-Lived Intangible Assets
The amortization expense for the next five years is estimated to be as follows:
(dollars in millions)Total
Fiscal year:
—2025$126.4 
—2026$128.1 
—2027$122.6 
—2028$118.4 
—2029$118.7 
v3.25.0.1
Leases (Tables)
12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
Lease Cost and Quantitative Disclosures
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Lease expenses
Operating lease expenses$36.2 $33.9 $30.5 
Finance lease expenses:
—Finance lease amortization expenses1.3 1.2 1.2 
—Interest on lease liabilities0.1 0.1 0.1 
Short-term lease expenses8.0 8.2 7.2 
Variable lease expenses6.8 6.5 6.0 
Total lease expenses$52.4 $49.9 $45.0 
Other information
Right-of-use assets obtained in exchange for new operating lease liabilities$47.6 $10.2 $34.9 
Assets obtained in exchange for new finance lease liabilities$1.7 $0.3 $0.8 
Cash paid for amounts included in the measurement of lease liabilities:
—Operating cash flows from finance leases$0.1 $— $0.1 
—Operating cash flows from operating leases33.4 30.7 27.6 
—Financing cash flows from finance leases1.1 1.0 1.3 
$34.6 $31.7 $29.0 
Weighted-average remaining lease term — finance leases2.9 years2.5 years2.9 years
Weighted-average remaining lease term — operating leases8.3 years7.9 years8.5 years
Weighted-average discount rate — finance leases7.2 %4.2 %3.2 %
Weighted-average discount rate — operating leases7.5 %5.3 %5.4 %
Operating Lease - Maturity Analysis of Liability
Maturity analysis of liabilities
(dollars in millions)
Operating leasesFinance leases
Next 12 months$31.6 $1.0 
Year 228.2 0.7 
Year 324.8 0.4 
Year 422.2 0.2 
Year 519.0 0.1 
Year 6 and beyond77.5 — 
Total lease payments203.3 2.4 
Interest(53.0)(0.2)
Total present value of lease liabilities$150.3 $2.2 
Finance Lease - Maturity Analysis of Liability
Maturity analysis of liabilities
(dollars in millions)
Operating leasesFinance leases
Next 12 months$31.6 $1.0 
Year 228.2 0.7 
Year 324.8 0.4 
Year 422.2 0.2 
Year 519.0 0.1 
Year 6 and beyond77.5 — 
Total lease payments203.3 2.4 
Interest(53.0)(0.2)
Total present value of lease liabilities$150.3 $2.2 
Balance Sheet Location
Balance sheet presentation of leases as of December 28, 2024 and December 30, 2023
As of December 28, 2024As of December 30, 2023
(dollars in millions)
Operating leasesFinance leasesOperating leasesFinance leases
Right-of-use assets$139.4 $3.2 $120.1 $2.7 
Short-term lease liabilities (included in “Accrued expenses and other current liabilities”)$24.5 $0.7 $22.2 $0.6 
Long-term lease liabilities125.8 1.5 109.5 1.1 
Total lease liabilities$150.3 $2.2 $131.7 $1.7 
v3.25.0.1
Derivative financial instruments (Tables)
12 Months Ended
Dec. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Values of Derivative Financial Instruments
The period end fair values of derivative financial instruments were as follows:
As of December 28, 2024As of December 30, 2023
(dollars in millions)
Prepaid expenses and other assetsOther
non-
current
assets
Accrued expenses and other
current
liabilities
Other
non-
current
liabilities
NetPrepaid expenses and other assetsOther
non-
current
assets
Accrued expenses and other
current
liabilities
Other 
non-
current
liabilities
Net
Derivatives designated as hedging instruments:
—Currency swaps
$16.3 $1.3 $— $(37.0)$(19.4)$8.5 $— $— $(77.7)$(69.2)
—Interest rate swaps
13.4 0.2 (6.2)(0.3)7.1 29.9 11.8 (9.9)(13.6)18.2 
Derivatives not designated as hedging instruments:
—Currency forward contracts
2.1 — (0.4)— 1.7 3.9 — (1.8)— 2.1 
$31.8 $1.5 $(6.6)$(37.3)$(10.6)$42.3 $11.8 $(11.7)$(91.3)$(48.9)
Schedule of Derivative Effect on OCI
The fair value gains (losses) before tax recognized in OCI in relation to the instruments designated as net investment hedging instruments were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Net fair value gains (losses) recognized in OCI in relation to:
—Euro-denominated debt
$— $— $10.6 
—Designated cross currency swaps
49.8 (33.2)(16.3)
Total net fair value gains (losses)$49.8 $(33.2)$(5.7)
The movements before tax recognized in OCI in relation to our cash flow hedges were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Movement recognized in OCI in relation to:
—Fair value gain on cash flow hedges$13.0 $7.4 $61.7 
—Amortization to net income of prior period fair value losses— 8.9 17.9 
—Reclassification from OCI to net income(34.7)(33.0)(4.0)
Total movement
$(21.7)$(16.7)$75.6 
Schedule of Gain (Losses) Recognized from Derivative Instruments
The fair value gains recognized in net income in relation to derivative instruments that have not been designated as hedging instruments were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Fair value gains recognized in relation to:
—Currency forward contracts recognized in SG&A
$5.7 $5.6 $6.3 
Total
$5.7 $5.6 $6.3 
v3.25.0.1
Fair value measurement (Tables)
12 Months Ended
Dec. 28, 2024
Fair Value Disclosures [Abstract]  
Schedule of Carrying Amount and Fair Value of Debt
The carrying amount and fair value of our debt are set out below:
As of December 28, 2024As of December 30, 2023
(dollars in millions)
Carrying 
amount
Fair value
Carrying 
amount
Fair value
Current$39.1 $38.7 $36.5 $36.5 
Non-current2,311.5 2,314.3 2,415.0 2,444.7 
$2,350.6 $2,353.0 $2,451.5 $2,481.2 
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table categorizes the assets and liabilities that are measured at fair value on a recurring basis:
(dollars in millions)
Quoted prices in active
markets (Level 1)
Significant observable
inputs (Level 2)
Total
As of December 28, 2024
Derivative assets$— $33.3 $33.3 
Derivative liabilities$— $(43.9)$(43.9)
Cash equivalents$41.5 $30.8 $72.3 
As of December 30, 2023
Derivative assets$— $54.1 $54.1 
Derivative liabilities$— $(103.0)$(103.0)
Cash equivalents$76.2 $52.8 $129.0 
v3.25.0.1
Debt (Tables)
12 Months Ended
Dec. 28, 2024
Debt Disclosure [Abstract]  
Schedule of Long-term Debt
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Secured debt:
—2024 Dollar Term Loans due June 4, 2031$1,300.0 $— 
—2022 Dollar Term Loans due November 16, 2029563.5 567.8 
—2021 Dollar Term Loans due November 16, 2029— 1,336.1 
—Revolving credit facility— — 
Unsecured debt:
—6.875% Dollar Senior Notes due July 1, 2029
500.0 — 
—6.250% Dollar Senior Notes due January 16, 2026
— 568.0 
Total principal of debt2,363.5 2,471.9 
Deferred issuance costs(33.2)(37.4)
Accrued interest20.3 17.0 
Total carrying value of debt2,350.6 2,451.5 
Debt, current portion39.1 36.5 
Debt, less current portion$2,311.5 $2,415.0 
Weighted average interest rate6.44 %7.66 %
Schedule of Principal Maturities Due
The principal payments due under our financing agreements over the next five years and thereafter are as follows:
(dollars in millions)
Total
Fiscal year:
—2025$23.4 
—202618.8 
—202718.8 
—202818.8 
—20291,052.1 
Thereafter1,231.6 
$2,363.5 
Schedule of Foreign Exchange Gain
During the periods presented, foreign exchange gains were recognized in respect of the Euro Term Loans as summarized in the table below. During Fiscal 2022, a portion of the facility was designated as a net investment hedge of certain of our Euro investments, a corresponding portion of the foreign exchange gain were recognized in OCI. As of December 28, 2024 and December 30, 2023, the Euro Term Loan, and the net investment hedging designation on the Euro Term Loan, no longer existed.
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Gain recognized in statement of operations$— $— $45.2 
Gain recognized in OCI— — 10.6 
Total gain$ $ $55.8 
Schedule of Redemption Prices Plus Accrued and Unpaid Interest
Prior to July 1, 2026, we may redeem the 2024 Unsecured Senior Notes, at our option, in whole at any time or in part from time to time, at a “make-whole” redemption price. In addition, on or subsequent to July 1, 2026, we may redeem the 2024 Unsecured Senior Notes, at our option, in whole at any time or in part from time to time, at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid interest to the redemption date:
Redemption price
On or subsequent to:
—July 1, 2026103.438 %
—July 1, 2027101.719 %
—July 1, 2028 and thereafter100.000 %
v3.25.0.1
Accrued expenses and other liabilities (Tables)
12 Months Ended
Dec. 28, 2024
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Accrued compensation$93.9 $96.2 
Current portion of lease obligations25.3 22.8 
Derivative financial instruments43.9 103.0 
Payroll and related taxes payable16.7 14.9 
VAT and other taxes payable9.9 9.9 
Warranty reserve16.4 15.9 
Restructuring reserve2.8 5.1 
Workers’ compensation reserve8.7 8.6 
Other accrued expenses and other liabilities102.4 95.2 
$320.0 $371.6 
Schedule of Liabilities
The above liabilities are presented in Gates’ balance sheet as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
—Accrued expenses and other current liabilities$251.3 $248.5 
—Other non-current liabilities68.7 123.1 
$320.0 $371.6 
Schedule of Warranty Liabilities
Changes in warranty reserves (included in accrued expenses and other liabilities) were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Balance at the beginning of the period$15.9 $17.6 $18.7 
Charge for the period10.8 6.1 10.8 
Utilized during the period(8.2)(7.7)(10.9)
Released during the period(1.7)— (0.3)
Foreign currency translation(0.4)(0.1)(0.7)
Balance at the end of the period$16.4 $15.9 $17.6 
v3.25.0.1
Post-retirement benefits (Tables)
12 Months Ended
Dec. 28, 2024
Pensions  
Defined Benefit Plans and Other Postretirement Benefit Plans  
Schedule of Funded Status and Balance Sheet Location
The net deficit recognized in respect of defined benefit pension plans is presented in the balance sheet as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Pension surplus$5.7 $8.6 
Accrued expenses and other current liabilities(2.6)(2.4)
Post-retirement benefit obligations(55.9)(59.3)
Net funded status$(52.8)$(53.1)
Plans whose projected benefit obligation was in excess of plan assets:
—Aggregate projected benefit obligation$440.8 $246.5 
—Aggregate fair value of plan assets$382.3 $184.8 
Plans whose accumulated benefit obligation was in excess of plan assets:
—Aggregate accumulated benefit obligation$436.9 $241.3 
—Aggregate fair value of plan assets$382.3 $184.0 
Schedule of Benefit Obligation in Excess of Fair Value of Plan Assets
The net deficit recognized in respect of defined benefit pension plans is presented in the balance sheet as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Pension surplus$5.7 $8.6 
Accrued expenses and other current liabilities(2.6)(2.4)
Post-retirement benefit obligations(55.9)(59.3)
Net funded status$(52.8)$(53.1)
Plans whose projected benefit obligation was in excess of plan assets:
—Aggregate projected benefit obligation$440.8 $246.5 
—Aggregate fair value of plan assets$382.3 $184.8 
Plans whose accumulated benefit obligation was in excess of plan assets:
—Aggregate accumulated benefit obligation$436.9 $241.3 
—Aggregate fair value of plan assets$382.3 $184.0 
Schedule of Changes in the Projected Benefit Obligation
Changes in the projected benefit obligation in relation to defined benefit pension plans were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
Benefit obligation at the beginning of the period$570.2 $560.5 
Employer service cost4.0 3.9 
Plan participants’ contributions0.4 0.1 
Interest cost24.3 25.1 
Net actuarial (gain) loss(41.5)6.7 
Benefits paid(42.4)(42.6)
Expenses paid from assets(1.8)(1.8)
Curtailments and settlements(0.4)(1.3)
Foreign currency translation(11.3)19.6 
Benefit obligation at the end of the period$501.5 $570.2 
Accumulated benefit obligation$498.0 $565.6 
Schedule of Changes in the Fair Value of the Assets
Changes in the fair value of the assets held by defined benefit pension plans were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
Plan assets at the beginning of the period$517.1 $517.3 
Actual (loss) gain on plan assets(22.5)19.3 
Employer contributions8.0 7.7 
Plan participants’ contributions0.4 0.1 
Settlements(0.4)(1.3)
Benefits paid(42.4)(42.6)
Expenses paid from assets(1.8)(1.8)
Foreign currency translation(9.7)18.4 
Plan assets at the end of the period$448.7 $517.1 
Schedule of Plan Asset by Category
The fair values of pension plan assets by asset category were as follows:
 As of December 28, 2024As of December 30, 2023
(dollars in millions)Quoted prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
TotalQuoted prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Total
Collective investment trusts:
     Equity securities$— $35.9 $— $35.9 $— $37.4 $— $37.4 
     Debt securities
     —Corporate bonds— 40.2 — 40.2 — 42.2 — 42.2 
     —Government bonds— 82.1 — 82.1 — 105.6 — 105.6 
Annuities and insurance— — 242.7 242.7 — — 285.1 285.1 
Liquid alternatives— 19.8 — 19.8 — 22.4 — 22.4 
Real estate— 21.4 — 21.4 — 22.0 — 22.0 
Cash and cash equivalents6.6 — — 6.6 2.4 — — 2.4 
Total$6.6 $199.4 $242.7 $448.7 $2.4 $229.6 $285.1 $517.1 
Schedule of Changes in the Fair Value of Plan Assets Measured Using Significant Unobservable Inputs
Changes in the fair value of plan assets measured using significant unobservable inputs (level 3) were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
Fair value at the beginning of the period$285.1 $275.4 
Actual (loss) gain on plan assets
(23.2)7.2 
Purchases— 0.7 
Contributions1.5 0.4 
Impacts of benefits paid(16.2)(13.4)
Settlements— (1.1)
Foreign currency translation(4.5)15.9 
Fair value at the end of the period$242.7 $285.1 
Schedule of Estimated Future Payments
Benefit payments, reflecting expected future service, are expected to be made by Gates’ defined benefit pension plans as follows:
(dollars in millions)Total
Fiscal year:
—2025$40.7 
—2026$40.8 
—2027$40.3 
—2028$40.8 
—2029$40.6 
—2030 through 2034$196.4 
Schedule of Components of Net Periodic Benefit Income for Pensions and Other Post-Retirement Benefits
Components of the net periodic benefit cost (income) for defined benefit pension plans relating to continuing operations were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Employer service cost$4.0 $3.9 $3.3 
Settlements and curtailments— (0.1)(0.2)
Interest cost24.3 25.1 15.2 
Expected return on plan assets(25.8)(25.9)(21.7)
Amortization of prior net actuarial (gain) loss(0.1)(1.0)0.3 
Amortization of prior service cost0.9 0.9 0.9 
Net periodic benefit cost (income)$3.3 $2.9 $(2.2)
Schedule of Defined Benefit Amounts Recognized in OCI
Changes in plan assets and benefit obligations of defined benefit pension plans recognized in OCI were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Current period net actuarial loss$6.8 $13.4 $58.6 
Amortization of prior net actuarial gain (loss)0.1 1.0 (0.3)
Amortization of prior service cost(0.9)(0.9)(0.9)
Gain recognized due to settlements and curtailments— 0.1 0.2 
Pre-tax changes recognized in OCI other than foreign currency translation6.0 13.6 57.6 
Foreign currency translation(1.4)4.0 (0.5)
Total pre-tax changes recognized in OCI$4.6 $17.6 $57.1 
Cumulative loss before tax recognized in OCI in respect of post-retirement benefits that had not yet been recognized as a component of the net periodic benefit cost were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Actuarial loss$50.8 $43.9 $29.4 
Prior service costs8.1 9.0 9.9 
Pre-tax changes recognized in OCI other than foreign currency translation58.9 52.9 39.3 
Foreign currency translation0.6 2.0 (2.0)
Cumulative total$59.5 $54.9 $37.3 
Schedule of Major Assumptions Used
Major assumptions used in determining the benefit obligation and the net periodic benefit cost for defined benefit pension plans are presented in the following table as weighted averages:
 
As of
December 28, 2024
As of
December 30, 2023
Benefit obligation:
—Discount rate5.081 %4.466 %
—Rate of salary increase3.622 %3.950 %
Net periodic benefit cost:
—Discount rate4.466 %4.598 %
—Rate of salary increase3.953 %3.510 %
—Expected return on plan assets4.987 %4.782 %
Other post-retirement benefits  
Defined Benefit Plans and Other Postretirement Benefit Plans  
Schedule of Changes in the Projected Benefit Obligation
Changes in the accumulated benefit obligation in relation to other defined benefit plans were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
Benefit obligation at the beginning of the period$27.5 $28.4 
Interest cost1.3 1.5 
Actuarial (gain) loss
(0.2)0.3 
Benefits paid(2.8)(3.0)
Foreign currency translation(0.9)0.3 
Benefit obligation at the end of the period$24.9 $27.5 
Accumulated benefit obligation$24.9 $27.5 
Schedule of Estimated Future Payments
Benefit payments, reflecting expected future service, are expected to be made by Gates’ other defined benefit plans as follows:
(dollars in millions)Total
Fiscal years:
—2025$2.8 
—2026$2.7 
—2027$2.6 
—2028$2.4 
—2029$2.3 
—2030 through 2034$9.6 
Schedule of Components of Net Periodic Benefit Income for Pensions and Other Post-Retirement Benefits
Components of the net periodic benefit income for other defined benefit plans were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Interest cost$1.3 $1.5 $1.2 
Amortization of prior net actuarial gain(2.8)(3.0)(1.8)
Amortization of prior service credit(0.4)(0.5)(0.4)
Net periodic benefit income$(1.9)$(2.0)$(1.0)
Schedule of Defined Benefit Amounts Recognized in OCI
Changes in the benefit obligation of other defined benefit plans recognized in OCI were as follows: 
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Current period net actuarial (gain) loss$(0.2)$0.3 $(13.9)
Amortization of prior net actuarial gain2.8 3.0 1.8 
Prior service credit— — (0.5)
Amortization of prior service credit0.4 0.5 0.4 
Pre-tax changes recognized in OCI other than foreign currency translation3.0 3.8 (12.2)
Foreign currency translation0.9 (0.3)0.6 
Total pre-tax changes recognized in OCI$3.9 $3.5 $(11.6)
Cumulative gains before tax recognized in OCI in respect of other post-retirement benefits that had not yet been recognized as a component of the net periodic benefit cost were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Actuarial gains$(29.6)$(32.2)$(35.5)
Prior service credits(1.8)(2.2)(2.7)
Other adjustments0.2 0.2 0.2 
Pre-tax changes recognized in OCI other than foreign currency translation(31.2)(34.2)(38.0)
Foreign currency translation1.0 0.1 0.4 
Cumulative total$(30.2)$(34.1)$(37.6)
Schedule of Major Assumptions Used
The primary assumption used in determining the benefit obligation and the net periodic benefit cost for other defined benefit plans is the discount rate, the weighted average of which is presented in the following table:
 Benefit obligationNet periodic benefit cost
 
As of
December 28, 2024
As of
December 30, 2023
As of
December 28, 2024
As of
December 30, 2023
Discount rate5.19 %5.00 %5.00 %5.44 %
Schedule of Funded Status and Balance Sheet Location
The deficit recognized in respect of other defined benefit plans is presented in the balance sheet as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Accrued expenses and other current liabilities$(2.8)$(3.0)
Post-retirement benefit obligations(22.1)(24.5)
$(24.9)$(27.5)
v3.25.0.1
Share-based compensation (Tables)
12 Months Ended
Dec. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Option Activity
New awards and movements in existing awards granted under this plan are summarized in the tables below.
Summary of movements in options outstanding
Year Ended December 28, 2024
PlanNumber of
options
Weighted average exercise price
$
Outstanding at the beginning of the period:
—Tier I2014 Plan1,828,327 $6.98 
—Tier II2014 Plan1,996,017 $7.01 
—Tier IV2014 Plan1,986,416 $10.52 
—SARsBoth plans735,221 $10.47 
—Share options2018 Plan2,345,520 $14.90 
—Premium-priced options2018 Plan835,469 $18.88 
9,726,970 $10.90 
Granted during the period:
—SARs2018 Plan22,100 $14.87 
22,100 $14.87 
Forfeited during the period:
—SARs2018 Plan(3,535)$13.50 
(3,535)$13.50 
Expired during the period:
—SARsBoth Plans(266)$14.04 
—Share options2018 Plan(331,730)$17.27 
(331,996)$17.26 
Exercised during the period:
—Tier I2014 Plan(271,309)$7.15 
—Tier II2014 Plan(273,378)$7.06 
—Tier IV2014 Plan(325,674)$10.74 
—SARsBoth Plans(150,127)$9.74 
—Share options2018 Plan(533,725)$14.37 
(1,554,213)$10.61 
Outstanding at the end of the period:
—Tier I2014 Plan1,557,018 $6.95 
—Tier II2014 Plan1,722,639 $7.00 
—Tier IV2014 Plan1,660,742 $10.48 
—SARsBoth plans603,393 $10.79 
—Share options2018 Plan1,480,065 $14.56 
—Premium-priced options2018 Plan835,469 $18.88 
7,859,326 $10.70 
Exercisable at the end of the period7,785,179 $10.66 
Vested and expected to vest at the end of the period7,858,509 $10.70 
Schedule of RSU and PRSU Activity
Summary of movements in RSUs and PRSUs outstanding
Year Ended December 28, 2024
Number of
awards
Weighted average
grant date fair value
$
Outstanding at the beginning of the period:
—RSUs3,032,230 $13.78 
—PRSUs917,661 $16.77 
3,949,891 $14.47 
Granted during the period:
—RSUs1,250,252 $15.16 
—PRSUs426,607 $16.37 
1,676,859 $15.47 
Forfeited during the period:
—RSUs(321,638)$13.75 
—PRSUs(161,848)$15.77 
(483,486)$14.42 
Vested during the period:
—RSUs(1,389,992)$13.79 
—PRSUs(154,274)$15.00 
(1,544,266)$13.91 
Outstanding at the end of the period:
—RSUs2,570,852 $14.45 
—PRSUs1,028,146 $17.03 
3,598,998 $15.19 
Schedule of Share Based Compensation Valuation Techniques The weighted average fair values and relevant assumptions were as follows:
For the year ended
December 28,
2024
December 30,
2023
December 31,
2022
Weighted average grant date fair value:
—SARs$6.95 $6.57 $6.94 
—Share optionsn/an/an/a
—Premium-priced optionsn/an/an/a
—RSUs$15.16 $13.79 $13.67 
—PRSUs$16.37 $15.88 $17.23 
Inputs to the model:
—Expected volatility - SARs41.7 %42.8 %43.5 %
—Expected volatility - share optionsn/an/an/a
—Expected volatility - premium-priced optionsn/an/an/a
—Expected volatility - PRSUs31.6 %37.7 %49.1 %
—Expected option life for SARs (years)6.06.06.0
—Expected option life for share options (years)n/an/an/a
—Expected option life for premium-priced options (years)n/an/an/a
—Risk-free interest rate:
SARs4.22 %4.03 %1.91 %
Share optionsn/an/an/a
Premium-priced optionsn/an/an/a
PRSUs4.38 %4.60 %1.72 %
v3.25.0.1
Equity (Tables)
12 Months Ended
Dec. 28, 2024
Equity [Abstract]  
Schedule of Movement in Number of Shares in Issue
Movements in the Company’s number of shares in issue for the year ended December 28, 2024 and December 30, 2023, respectively, were as follows:
For the year ended
(number of shares)
December 28,
2024
December 30,
2023
Balance as of the beginning of the period264,259,788 282,578,917 
Exercise of share options, net of withholding taxes1,376,987 2,258,344 
Vesting of restricted stock units, net of withholding taxes1,257,515 1,357,161 
Shares repurchased and cancelled(11,690,303)(21,934,634)
Balance as of the end of the period255,203,987 264,259,788 
v3.25.0.1
Analysis of accumulated other comprehensive (loss) income (Tables)
12 Months Ended
Dec. 28, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive (Loss) Income
Changes in accumulated other comprehensive (loss) income by component, net of tax, were as follows:
(dollars in millions)
Post-
retirement
benefit
Cumulative
translation
adjustment
Cash flow
hedges
Accumulated OCI attributable to
shareholders
Non-
controlling
interests
Accumulated OCI
As of January 1, 2022$36.6 $(836.7)$(25.1)$(825.2)$(23.4)$(848.6)
Foreign currency translation(1.2)(113.3)— (114.5)(42.1)(156.6)
Cash flow hedges movements— — 56.7 56.7 — 56.7 
Post-retirement benefit movements(34.8)— — (34.8)0.9 (33.9)
Other comprehensive (loss) income(36.0)(113.3)56.7 (92.6)(41.2)(133.8)
As of December 31, 20220.6 (950.0)31.6 (917.8)(64.6)(982.4)
Foreign currency translation(3.2)117.7 — 114.5 (13.8)100.7 
Cash flow hedges movements— — (12.5)(12.5)— (12.5)
Post-retirement benefit movements(12.7)— — (12.7)— (12.7)
Other comprehensive (loss) income(15.9)117.7 (12.5)89.3 (13.8)75.5 
As of December 30, 2023(15.3)(832.3)19.1 (828.5)(78.4)(906.9)
Foreign currency translation(0.1)(224.5)— (224.6)(19.1)(243.7)
Cash flow hedges movements— — (16.3)(16.3)— (16.3)
Post-retirement benefit movements(7.8)— — (7.8)— (7.8)
Other comprehensive loss(7.9)(224.5)(16.3)(248.7)(19.1)(267.8)
As of December 28, 2024$(23.2)$(1,056.8)$2.8 $(1,077.2)$(97.5)$(1,174.7)
v3.25.0.1
Related party transactions (Tables)
12 Months Ended
Dec. 28, 2024
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
Sales to and purchases from equity method investees were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Purchases
$(16.0)$(18.4)$(16.7)
Sales to and purchases from non-Gates entities controlled by non-controlling shareholders were as follows:
For the year ended
(dollars in millions)
December 28,
2024
December 30,
2023
December 31,
2022
Sales
$42.6 $44.1 $59.0 
Purchases
$(14.6)$(15.4)$(18.4)
Amounts outstanding in respect of these transactions were as follows:
(dollars in millions)
As of
December 28, 2024
As of
December 30, 2023
Receivables
$3.7 $3.2 
Payables
$(2.8)$(3.2)
v3.25.0.1
Commitments and contingencies (Tables)
12 Months Ended
Dec. 28, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Allowance for Expected Credit Losses
Movements in our allowance for expected credit losses were as follows:
For the year ended
(dollars in millions)December 28,
2024
December 30,
2023
December 31,
2022
Balance at beginning of year$15.7 $4.2 $5.1 
Current period provision for expected credit losses5.8 12.6 0.6 
Write-offs charged against allowance3.4 (1.1)(1.3)
Foreign currency translation(0.5)— (0.2)
Balance at end of year$24.4 $15.7 $4.2 
v3.25.0.1
Background (Details)
12 Months Ended
Dec. 28, 2024
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments 2
v3.25.0.1
Significant accounting policies - Basis of Consolidation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Loss on deconsolidation of Russian subsidiary $ 12.7 $ 0.0 $ 0.0
v3.25.0.1
Significant accounting policies - Foreign Currency Transaction and Translation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle      
Foreign currency transaction gain (loss) $ 44.2 $ 24.8 $ (5.8)
Operating Income (Loss)      
New Accounting Pronouncements or Change in Accounting Principle      
Foreign currency transaction gain (loss) 6.5 2.5 5.7
Other Income      
New Accounting Pronouncements or Change in Accounting Principle      
Foreign currency transaction gain (loss) $ 13.7 $ (4.2) $ 10.2
v3.25.0.1
Significant accounting policies - Selling, General and Administrative Expenses (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Condensed Income Statements      
Selling, general and administrative expenses $ 870.0 $ 882.2 $ 853.7
Shipping and Handling      
Condensed Income Statements      
Selling, general and administrative expenses $ 177.6 $ 167.2 $ 174.8
v3.25.0.1
Significant accounting policies - Research and Development Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Research and development costs $ 66.5 $ 66.0 $ 69.4
v3.25.0.1
Significant accounting policies - Advertising Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Advertising cost $ 15.6 $ 14.0 $ 16.8
v3.25.0.1
Significant accounting policies - Inventories (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Accounting Policies [Abstract]    
Percentage of LIFO inventory 34.60% 33.30%
Increase in inventory balances if measured with FIFO method $ 58.3 $ 36.0
v3.25.0.1
Significant accounting policies - Goodwill (Details) - USD ($)
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Goodwill impairment loss $ 0 $ 0 $ 0
v3.25.0.1
Significant accounting policies - Other Intangibles (Details)
Dec. 28, 2024
Customer relationships | Minimum  
Finite-Lived Intangible Assets  
Finite-lived intangible asset (useful life) 15 years
Customer relationships | Maximum  
Finite-Lived Intangible Assets  
Finite-lived intangible asset (useful life) 17 years
Technology | Minimum  
Finite-Lived Intangible Assets  
Finite-lived intangible asset (useful life) 5 years
Technology | Maximum  
Finite-Lived Intangible Assets  
Finite-lived intangible asset (useful life) 7 years
Computer software | Minimum  
Finite-Lived Intangible Assets  
Finite-lived intangible asset (useful life) 2 years
Computer software | Maximum  
Finite-Lived Intangible Assets  
Finite-lived intangible asset (useful life) 6 years
v3.25.0.1
Significant accounting policies - Property, Plant and Equipment (Details)
Dec. 28, 2024
Buildings and improvements | Minimum  
Property, Plant and Equipment  
Fixed assets (useful life) 30 years
Buildings and improvements | Maximum  
Property, Plant and Equipment  
Fixed assets (useful life) 40 years
Machinery, equipment and vehicles | Minimum  
Property, Plant and Equipment  
Fixed assets (useful life) 2 years
Machinery, equipment and vehicles | Maximum  
Property, Plant and Equipment  
Fixed assets (useful life) 20 years
v3.25.0.1
Significant accounting policies - Leases (Details)
Dec. 28, 2024
Real estate  
Property, Plant and Equipment  
Percentage of total lease liability (percent) 92.00%
v3.25.0.1
Significant accounting policies - Restricted Cash (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Restricted cash $ 2.8 $ 3.4 $ 3.0
v3.25.0.1
Significant accounting policies - Trade Accounts Receivable (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Accounting Policies [Abstract]    
Trade account receivables held for sale $ 148.6 $ 112.4
Expenses related to the reclassification of receivables $ 10.2 $ 8.0
v3.25.0.1
Segment information - Net Sales by Geographic Regions and Markets (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets      
Net sales $ 3,408.2 $ 3,570.2 $ 3,554.2
Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 2,108.1 2,191.2 2,173.7
Power Transmission | Replacement      
Revenues from External Customers and Long-Lived Assets      
Net sales 1,393.0 1,389.2 1,347.9
Power Transmission | OEM      
Revenues from External Customers and Long-Lived Assets      
Net sales 715.1 802.0 825.8
Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales 1,300.1 1,379.0 1,380.5
Fluid Power | Replacement      
Revenues from External Customers and Long-Lived Assets      
Net sales 910.0 909.0 900.6
Fluid Power | OEM      
Revenues from External Customers and Long-Lived Assets      
Net sales 390.1 470.0 479.9
U.S. | Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 568.1 591.5 636.8
U.S. | Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales 688.0 724.5 733.3
North America, excluding U.S. | Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 239.8 230.1 205.6
North America, excluding U.S. | Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales 195.0 214.3 208.8
South America | Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 104.3 110.7 92.1
South America | Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales 38.1 43.2 49.7
United Kingdom (“U.K.”) | Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 37.0 44.4 45.1
United Kingdom (“U.K.”) | Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales 67.8 71.4 68.9
LUXEMBOURG | Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 252.7 247.8 195.4
LUXEMBOURG | Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales 86.6 88.9 91.7
EMEA, excluding U.K. | Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 337.3 382.3 402.9
EMEA, excluding U.K. | Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales 103.8 121.6 108.3
East Asia and India | Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 277.8 287.1 295.5
East Asia and India | Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales 80.6 79.7 75.4
Greater China | Power Transmission      
Revenues from External Customers and Long-Lived Assets      
Net sales 291.1 297.3 300.3
Greater China | Fluid Power      
Revenues from External Customers and Long-Lived Assets      
Net sales $ 40.2 $ 35.4 $ 44.4
v3.25.0.1
Segment information - Sales and Adjusted EBITDA by Reporting Segment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Segment Reporting Information      
Adjusted EBITDA $ 761.1 $ 747.0 $ 680.6
Power Transmission      
Segment Reporting Information      
Adjusted EBITDA 468.7 460.6 404.0
Fluid Power      
Segment Reporting Information      
Adjusted EBITDA $ 292.4 $ 286.4 $ 276.6
v3.25.0.1
Segment information - Segment Profit or Loss (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Segment Reporting Information      
Net sales $ 3,408.2 $ 3,570.2 $ 3,554.2
Adjusted cost of sales (2,025.6) (2,203.5) (2,281.9)
Adjusted selling, general and administrative expenses (720.5) (735.1) (690.7)
Depreciation and software amortization 99.1 98.8 99.0
Credit (gain) loss related to customer bankruptcy (included in SG&A) 5.8 12.6 0.6
Cybersecurity incident expenses 0.0 5.2 0.0
Adjusted EBITDA 761.1 747.0 680.6
—Severance and restructuring related expenses included in SG&A      
Segment Reporting Information      
Credit (gain) loss related to customer bankruptcy (included in SG&A) (0.1) 11.4 0.0
Power Transmission      
Segment Reporting Information      
Net sales 2,108.1 2,191.2 2,173.7
Adjusted cost of sales (1,241.7) (1,333.3) (1,371.3)
Adjusted selling, general and administrative expenses (449.7) (458.2) (449.9)
Depreciation and software amortization 52.1 50.4 51.5
Cybersecurity incident expenses 0.0 3.1 0.0
Adjusted EBITDA 468.7 460.6 404.0
Power Transmission | —Severance and restructuring related expenses included in SG&A      
Segment Reporting Information      
Credit (gain) loss related to customer bankruptcy (included in SG&A) (0.1) 7.4 0.0
Fluid Power      
Segment Reporting Information      
Net sales 1,300.1 1,379.0 1,380.5
Adjusted cost of sales (783.9) (870.2) (910.6)
Adjusted selling, general and administrative expenses (270.8) (276.9) (240.8)
Depreciation and software amortization 47.0 48.4 47.5
Cybersecurity incident expenses 0.0 2.1 0.0
Adjusted EBITDA 292.4 286.4 276.6
Fluid Power | —Severance and restructuring related expenses included in SG&A      
Segment Reporting Information      
Credit (gain) loss related to customer bankruptcy (included in SG&A) $ 0.0 $ 4.0 $ 0.0
v3.25.0.1
Segment information - Reconciliation of Adjusted EBITDA to Net Income (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Segment Reporting Information      
Income from continuing operations before taxes $ 328.0 $ 285.3 $ 257.8
Interest expenses 155.8 163.2 139.4
Loss on deconsolidation of Russian subsidiary 12.7 0.0 0.0
Other (income) expenses (17.8) 14.1 (13.2)
Operating income from continuing operations 478.7 462.6 384.0
Depreciation and amortization 216.9 217.5 217.2
Transaction-related expenses 3.3 2.2 2.1
Asset impairments 0.0 0.1 1.1
Restructuring expenses 6.5 11.6 9.5
Share-based compensation expense 28.8 27.4 44.3
Inventory impairments and adjustments (included in cost of sales) 22.3 7.4 20.9
Total restructuring expenses 6.5 11.6 9.5
Credit (gain) loss related to customer bankruptcy (included in SG&A) (0.1) 11.4 0.0
Cybersecurity incident expenses 0.0 5.2 0.0
Other items not directly related to current operations 0.0 0.2 0.2
Adjusted EBITDA 761.1 747.0 680.6
SG&A      
Segment Reporting Information      
Total restructuring expenses $ 2.9 $ 1.0 $ 0.5
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses
Cost of Sales      
Segment Reporting Information      
Total restructuring expenses $ 1.8 $ 0.4 $ 0.8
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of sales Cost of sales Cost of sales
v3.25.0.1
Segment information - Long Lived Assets by Geography (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Revenues from External Customers and Long-Lived Assets    
Long-lived assets $ 579.5 $ 630.0
U.S.    
Revenues from External Customers and Long-Lived Assets    
Long-lived assets 154.9 165.0
Rest of North America    
Revenues from External Customers and Long-Lived Assets    
Long-lived assets 116.3 129.1
U.K.    
Revenues from External Customers and Long-Lived Assets    
Long-lived assets 30.4 29.5
Rest of EMEA    
Revenues from External Customers and Long-Lived Assets    
Long-lived assets 151.1 158.8
East Asia and India    
Revenues from External Customers and Long-Lived Assets    
Long-lived assets 36.4 39.2
Greater China    
Revenues from External Customers and Long-Lived Assets    
Long-lived assets 67.9 81.9
South America    
Revenues from External Customers and Long-Lived Assets    
Long-lived assets $ 22.5 $ 26.5
v3.25.0.1
Segment information - Narratives (Details) - customer
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
U.S. | Geographic concentration risk | Revenue      
Segment Reporting Information      
Concentration risk (percent) 38.90% 38.90% 39.60%
North America | Customer concentration risk | Accounts receivable | Major customer two      
Segment Reporting Information      
Concentration risk (percent) 13.70% 12.50%  
Number of customers (customer) 2 2  
North America | Customer concentration risk | Accounts receivable | Major customer one      
Segment Reporting Information      
Concentration risk (percent) 6.10% 9.60%  
v3.25.0.1
Restructuring and restructuring related expenses - Income Statement Location (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Restructuring Cost and Reserve      
Total restructuring expenses $ 6.5 $ 11.6 $ 9.5
—Impairment of fixed and other assets   0.1 1.1
Total expenses related to other strategic initiatives 6.5 11.8 12.1
Other restructuring related expenses: 4.7 1.4 1.3
Cost of Sales      
Restructuring Cost and Reserve      
Total restructuring expenses 1.8 0.4 0.8
Other restructuring related expenses: $ 1.8 $ 0.4 $ 0.8
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of sales Cost of sales Cost of sales
—Severance and restructuring related expenses included in SG&A      
Restructuring Cost and Reserve      
Total restructuring expenses $ 2.9 $ 1.0 $ 0.5
Other restructuring related expenses: $ 2.9 $ 1.0 $ 0.5
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses
—Severance expense      
Restructuring Cost and Reserve      
Total restructuring expenses $ 0.5 $ 3.7 $ 4.9
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Restructuring expenses Restructuring expenses Restructuring expenses
—Non-severance labor and benefit expenses      
Restructuring Cost and Reserve      
Total restructuring expenses $ 0.5 $ 1.2 $ 0.5
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Restructuring expenses Restructuring expenses Restructuring expenses
—Consulting expenses      
Restructuring Cost and Reserve      
Total restructuring expenses $ 3.2 $ 3.4 $ 1.8
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Restructuring expenses Restructuring expenses Restructuring expenses
—Other net restructuring expenses      
Restructuring Cost and Reserve      
Total restructuring expenses $ 2.3 $ 3.3 $ 2.3
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Restructuring expenses Restructuring expenses Restructuring expenses
—Impairment of fixed and other assets      
Restructuring Cost and Reserve      
—Impairment of fixed and other assets $ 0.0 $ 0.1 $ 1.1
—Impairment of inventory      
Restructuring Cost and Reserve      
Total restructuring expenses $ 0.0 $ 0.1 $ 1.5
v3.25.0.1
Restructuring and restructuring related expenses - Narratives (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Restructuring Cost and Reserve      
Restructuring expenses $ 6.5 $ 11.6 $ 9.5
—Impairment of fixed and other assets   0.1 1.1
Employee Relocation      
Restructuring Cost and Reserve      
Restructuring expenses   0.9  
Employee Relocation | European Office and Distribution Center      
Restructuring Cost and Reserve      
Restructuring expenses     2.4
—Severance expense      
Restructuring Cost and Reserve      
Restructuring expenses 0.5 3.7 4.9
—Severance expense | Greater China      
Restructuring Cost and Reserve      
Restructuring expenses   4.5  
—Severance expense | Mexico      
Restructuring Cost and Reserve      
Restructuring expenses   3.0  
—Severance expense | European Office and Distribution Center      
Restructuring Cost and Reserve      
Restructuring expenses   0.7 2.5
—Other net restructuring expenses      
Restructuring Cost and Reserve      
Restructuring expenses 2.3 3.3 2.3
—Other net restructuring expenses | Russian Operations      
Restructuring Cost and Reserve      
Restructuring expenses     3.5
Severance expenses included in SG&A     0.7
Impairment of inventory     1.1
—Impairment of fixed and other assets     1.1
—Consulting expenses      
Restructuring Cost and Reserve      
Restructuring expenses 3.2 $ 3.4 $ 1.8
Facility Closing | North America      
Restructuring Cost and Reserve      
Restructuring expenses 1.6    
Facility Closing | Mexico      
Restructuring Cost and Reserve      
Restructuring expenses $ 4.1    
v3.25.0.1
Restructuring and restructuring related expenses - Restructuring Costs by Segment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Restructuring Cost and Reserve      
Total expenses related to other strategic initiatives $ 6.5 $ 11.8 $ 12.1
Power Transmission      
Restructuring Cost and Reserve      
Total expenses related to other strategic initiatives 1.8 7.1 5.8
Fluid Power      
Restructuring Cost and Reserve      
Total expenses related to other strategic initiatives $ 4.7 $ 4.7 $ 6.3
v3.25.0.1
Restructuring and restructuring related expenses - Restructuring Reserve Activity (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Restructuring reserves    
Balance as of the beginning of the period $ 5.1 $ 7.5
Utilized during the period (8.7) (14.1)
Charge for the period 7.2 12.4
Released during the period (0.7) (0.8)
Foreign currency translation (0.1) 0.1
Balance as of the end of the period $ 2.8 $ 5.1
v3.25.0.1
Income taxes - Schedule of Income from Continuing Operations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Income Tax Examination      
Income from continuing operations before taxes $ 328.0 $ 285.3 $ 257.8
U.K.      
Income Tax Examination      
Income from domestic operations 87.8 26.4 (11.0)
U.S.      
Income Tax Examination      
Income from foreign operations 44.0 (58.2) 17.1
Other foreign      
Income Tax Examination      
Income from foreign operations $ 196.2 $ 317.1 $ 251.7
v3.25.0.1
Income taxes - Income Tax Expense (Benefit) on Income from Continuing Operations Analyzed (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Current tax      
U.S. $ 44.5 $ 18.9 $ 42.0
Total current tax expense 119.6 94.0 94.6
Deferred income tax      
U.S. (36.0) (48.6) (54.5)
Total deferred income tax (benefit) (12.1) (65.7) (79.7)
Income tax expense 107.5 28.3 14.9
U.K.      
Current tax      
Current tax, foreign (7.6) 0.2 (1.7)
Deferred income tax      
Deferred tax, foreign 16.1 9.0 (2.5)
Other foreign      
Current tax      
Current tax, foreign 82.7 74.9 54.3
Deferred income tax      
Deferred tax, foreign $ 7.8 $ (26.1) $ (22.7)
v3.25.0.1
Income taxes - Effective Income Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Effective Income Tax Rate Reconciliation, Percent      
U.K. corporation tax rate 25.00% 23.50% 19.00%
Effect of:      
—State tax provision, net of Federal benefit 0.30% (1.50%) (0.20%)
—Provision for unrecognized income tax benefits (3.20%) (4.30%) (9.80%)
—Company-owned life insurance (3.10%) (3.50%) (3.10%)
—Tax on international operations 3.30% 2.60% 20.60%
—Manufacturing incentives (0.20%) (4.70%) (3.90%)
—Change in valuation allowance (13.90%) (3.10%) (20.60%)
Deferred income tax rate changes 20.70% 0.50% (0.10%)
—Currency exchange rate movements 2.90% 0.60% 1.90%
—Other permanent differences 1.00% (0.20%) 2.00%
Reported effective income tax rate 32.80% 9.90% 5.80%
v3.25.0.1
Income taxes - Narratives (Details) - USD ($)
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Operating Loss Carryforwards      
Deferred tax asset, net $ 866,600,000 $ 916,400,000  
Expiration of manufacturing incentives 700,000 13,300,000 $ 10,000,000
Operating loss carryforwards, not subject to expiration 2,987,800,000    
Operating loss carryforwards, subject to expiration 3,239,000,000    
Operating loss carryforward net of valuation allowance 513,300,000    
Operating loss carryforwards, valuation allowance 964,700,000    
Net operating losses 1,478,000,000 1,587,900,000  
Interest expense carryforward 903,600,000    
Deferred tax interest expense net of valuation allowance 189,900,000    
Deferred tax asset, interest expense valuation allowance 22,400,000    
Taxable temporary differences related to investments in subsidiaries 1,343,300,000    
Deferred tax liability related to subsidiaries 20,700,000 21,400,000  
Deferred tax assets, valuation allowance 1,240,600,000 1,288,800,000  
Disallowed interest carryforward     15,300,000
Unrecognized tax benefit that if recognized would impact tax rate 37,300,000    
Accrued taxes interest and penalties 17,700,000 15,600,000 13,700,000
Anticipated decrease in income tax liability from settlement of tax audit 23,400,000    
Turkey and hte United States      
Operating Loss Carryforwards      
Expiration of manufacturing incentives     6,700,000
POLAND      
Operating Loss Carryforwards      
Deferred tax assets, valuation allowance 3,700,000    
LUXEMBOURG      
Operating Loss Carryforwards      
Change in valuation allowance, amount 67,000,000    
Deferred tax assets with no future benefit 44,200,000    
Türkiye net operating losses      
Operating Loss Carryforwards      
Change in valuation allowance, amount 5,500,000 0 0
Türkiye net operating losses | Turkey, New Lira      
Operating Loss Carryforwards      
Deferred tax assets, valuation allowance 5,500,000    
U.S. Related To Net Operating Losses | U.S.      
Operating Loss Carryforwards      
Deferred tax assets, valuation allowance 3,400,000    
Capital Loss Carryforward      
Operating Loss Carryforwards      
Deferred tax asset, net 0    
Tax credit carryforward 761,900,000    
Tax credit carryforward, valuation allowance 190,100,000    
Foreign Tax Credit Carryforward      
Operating Loss Carryforwards      
Deferred tax asset, net 9,400,000    
Tax credit carryforward 67,900,000    
Tax credit carryforward, valuation allowance 58,500,000    
Foreign Tax Credit Carryforward | Türkiye net operating losses      
Operating Loss Carryforwards      
Deferred tax asset, net     $ 22,600,000
Luxembourg      
Operating Loss Carryforwards      
Operating loss carry forward 6,017,100,000    
Operating loss carryforwards, not subject to expiration 2,897,100,000    
Operating loss carryforwards, subject to expiration 3,120,100,000    
Interest expense carryforward 216,700,000    
U.S.      
Operating Loss Carryforwards      
Operating loss carryforwards, subject to expiration 11,800,000    
Tax credit carryforward 61,200,000    
Interest expense carryforward 632,300,000    
Foreign      
Operating Loss Carryforwards      
Deferred tax asset, net   $ 2,100,000  
Tax credit carryforward 25,600,000    
Foreign | Türkiye net operating losses      
Operating Loss Carryforwards      
Deferred tax asset, net 3,200,000    
Domestic And Foreign Authorities      
Operating Loss Carryforwards      
Operating loss carry forward 6,264,200,000    
Operating loss carryforwards, not subject to expiration 128,100,000    
Operating loss carryforwards, subject to expiration 118,900,000    
U.S and U.K      
Operating Loss Carryforwards      
Net operating losses 750,100,000    
U.K.      
Operating Loss Carryforwards      
Operating loss carryforwards, subject to expiration 736,300,000    
Tax credit carryforward 736,300,000    
Domestic Authorities      
Operating Loss Carryforwards      
Operating loss carry forward 131,200,000    
Foreign Tax Authorities      
Operating Loss Carryforwards      
Tax credit carryforward 6,700,000    
Interest expense carryforward $ 54,600,000    
v3.25.0.1
Income taxes - Change in Deferred Tax Asset Valuation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Luxembourg currency revaluation on indefinite-lived net operating losses      
Valuation Allowance      
Change in valuation allowance, amount $ (9.4) $ (5.7) $ (14.8)
Luxembourg deferred income tax rate change      
Valuation Allowance      
Change in valuation allowance, amount (42.9) 0.0 0.0
Poland tax credits      
Valuation Allowance      
Change in valuation allowance, amount 3.7 0.0 0.0
Türkiye net operating losses      
Valuation Allowance      
Change in valuation allowance, amount 5.5 0.0 0.0
U.S. foreign tax credits      
Valuation Allowance      
Change in valuation allowance, amount (3.2) 0.4 (39.9)
U.S. finite-lived net operating losses      
Valuation Allowance      
Change in valuation allowance, amount $ 3.4 $ (2.1) $ 0.0
v3.25.0.1
Income taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Deferred income tax assets:    
Accounts receivable $ 34.0 $ 39.4
Lease liabilities 40.9 41.6
Accrued expenses 35.8 35.6
Post-retirement benefit obligations 16.9 17.5
Compensation 22.8 26.4
Net operating losses 1,478.0 1,587.9
Capital losses 190.1 192.5
Credits 67.9 69.8
Interest 212.3 186.5
Other items 8.5 8.0
Deferred tax assets, gross 2,107.2 2,205.2
Valuation allowances (1,240.6) (1,288.8)
Total deferred income tax assets 866.6 916.4
Deferred income tax liabilities:    
Inventories (12.3) (9.7)
Property, plant and equipment (22.1) (29.3)
Lease right-of-use assets (36.1) (36.1)
Intangible assets (278.7) (316.9)
Undistributed earnings (20.7) (21.4)
Other items 0.0 0.0
Total deferred income tax liabilities (369.9) (413.4)
Net deferred income tax assets $ 496.7 $ 503.0
v3.25.0.1
Income taxes - Unrecognized Tax Positions (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Reconciliation of Unrecognized Tax Benefits      
At the beginning of the period $ 72.5 $ 76.0 $ 104.6
Increases for tax positions related to the current period 10.7 8.5 6.5
Increases for tax positions related to prior periods 4.0 1.8 0.4
Decreases for tax positions related to prior periods (11.7) (15.0) 0.0
Decreases related to settlements (2.2) 0.0 (2.8)
Decreases due to lapsed statute of limitations 0.0 (2.7) (27.6)
Foreign currency translation (4.9)   (5.1)
Foreign currency translation   3.9  
At the end of the period $ 68.4 $ 72.5 $ 76.0
v3.25.0.1
Earnings per share (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]      
Net income attributable to shareholders $ 194.9 $ 232.9 $ 220.8
Weighted average number of shares outstanding (in shares) 259,483,897 271,880,047 284,063,083
Dilutive effect of share-based awards (in shares) 5,191,669 3,768,281 3,523,127
Diluted weighted average number of shares outstanding (in shares) 264,675,566 275,648,328 287,586,210
Number of anti-dilutive shares excluded from the diluted earnings per share calculation (in shares) 1,949,256 4,417,967 7,538,260
Basic earnings per share (in usd per share) $ 0.75 $ 0.86 $ 0.78
Diluted earnings per share (in usd per share) $ 0.74 $ 0.84 $ 0.77
v3.25.0.1
Inventories (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 194.3 $ 168.2
Work in progress 43.1 43.3
Finished goods 438.6 435.7
Total inventories $ 676.0 $ 647.2
v3.25.0.1
Property, plant and equipment - Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Property, Plant and Equipment    
Property, plant and equipment, gross $ 1,376.5 $ 1,386.9
Less: Accumulated depreciation and impairment (797.0) (756.9)
Total 579.5 630.0
Land and buildings    
Property, Plant and Equipment    
Property, plant and equipment, gross 322.0 335.0
Machinery, equipment and vehicles    
Property, Plant and Equipment    
Property, plant and equipment, gross 991.2 996.8
Assets under construction    
Property, Plant and Equipment    
Property, plant and equipment, gross $ 63.3 $ 55.1
v3.25.0.1
Property, plant and equipment - Narratives (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation $ 88.3 $ 87.7 $ 88.8
Right-of-use assets $ 3.2 $ 2.7  
v3.25.0.1
Goodwill (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Cost and carrying amount    
Beginning balance $ 2,038.7 $ 1,981.1
Foreign currency translation (129.8) 57.6
Ending balance 1,908.9 2,038.7
Power Transmission    
Cost and carrying amount    
Beginning balance 1,338.5 1,315.2
Foreign currency translation (81.0) 23.3
Ending balance 1,257.5 1,338.5
Fluid Power    
Cost and carrying amount    
Beginning balance 700.2 665.9
Foreign currency translation (48.8) 34.3
Ending balance $ 651.4 $ 700.2
v3.25.0.1
Intangible assets - Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Finite-Lived Intangible Assets    
Finite-lived, cost $ 2,150.2 $ 2,211.5
Finite-lived, accumulated amortization and impairment (1,371.0) (1,294.8)
Finite-lived, net 779.2 916.7
Indefinite-lived, cost 513.4 513.4
Indefinite-lived, accumulated amortization and impairment (44.0) (44.0)
Indefinite-lived, net 469.4 469.4
Cost 2,663.6 2,724.9
Accumulated amortization and impairment (1,415.0) (1,338.8)
Net 1,248.6 1,386.1
—Customer relationships    
Finite-Lived Intangible Assets    
Finite-lived, cost 1,921.5 2,003.6
Finite-lived, accumulated amortization and impairment (1,194.7) (1,127.7)
Finite-lived, net 726.8 875.9
—Technology    
Finite-Lived Intangible Assets    
Finite-lived, cost 90.5 90.6
Finite-lived, accumulated amortization and impairment (90.5) (90.3)
Finite-lived, net 0.0 0.3
—Capitalized software    
Finite-Lived Intangible Assets    
Finite-lived, cost 138.2 117.3
Finite-lived, accumulated amortization and impairment (85.8) (76.8)
Finite-lived, net $ 52.4 $ 40.5
v3.25.0.1
Intangible assets - Narratives (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 128.6 $ 129.8 $ 128.4
Intangible assets, foreign currency translation gain (loss) $ (32.5) $ 13.8  
v3.25.0.1
Intangible assets - Schedule of Future Amortization of Finite-Lived Intangible Assets (Details)
$ in Millions
Dec. 28, 2024
USD ($)
Fiscal year:  
—2025 $ 126.4
—2026 128.1
—2027 122.6
—2028 118.4
—2029 $ 118.7
v3.25.0.1
Leases - Quantitative Disclosures (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Lease expenses      
Operating lease expenses $ 36.2 $ 33.9 $ 30.5
Finance lease expenses:      
—Finance lease amortization expenses 1.3 1.2 1.2
—Interest on lease liabilities 0.1 0.1 0.1
Short-term lease expenses 8.0 8.2 7.2
Variable lease expenses 6.8 6.5 6.0
Total lease expenses 52.4 49.9 45.0
Other information      
Right-of-use assets obtained in exchange for new operating lease liabilities 47.6 10.2 34.9
Assets obtained in exchange for new finance lease liabilities 1.7 0.3 0.8
Cash paid for amounts included in the measurement of lease liabilities:      
—Operating cash flows from finance leases 0.1 0.0 0.1
—Operating cash flows from operating leases 33.4 30.7 27.6
—Financing cash flows from finance leases 1.1 1.0 1.3
Cash paid for amounts included in the measurement of lease liabilities $ 34.6 $ 31.7 $ 29.0
Weighted-average remaining lease term — finance leases 2 years 10 months 24 days 2 years 6 months 2 years 10 months 24 days
Weighted-average remaining lease term — operating leases 8 years 3 months 18 days 7 years 10 months 24 days 8 years 6 months
Weighted-average discount rate — finance leases (percent) 7.20% 4.20% 3.20%
Weighted-average discount rate — operating leases (percent) 7.50% 5.30% 5.40%
v3.25.0.1
Leases - Minimum Future Payments (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Operating leases    
Next 12 months $ 31.6  
Year 2 28.2  
Year 3 24.8  
Year 4 22.2  
Year 5 19.0  
Year 6 and beyond 77.5  
Total lease payments 203.3  
Interest (53.0)  
Total present value of lease liabilities 150.3 $ 131.7
Finance leases    
Next 12 months 1.0  
Year 2 0.7  
Year 3 0.4  
Year 4 0.2  
Year 5 0.1  
Year 6 and beyond 0.0  
Total lease payments 2.4  
Interest (0.2)  
Total present value of lease liabilities $ 2.2 $ 1.7
v3.25.0.1
Leases - Balance Sheet Location (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Operating leases    
Right-of-use assets $ 139.4 $ 120.1
Short-term lease liabilities (included in “Accrued expenses and other current liabilities”) 24.5 22.2
Long-term lease liabilities 125.8 109.5
Total lease liabilities $ 150.3 $ 131.7
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Lease liabilities Lease liabilities
Operating Lease, Liability, Current, Statement of Financial Position Accrued expenses and other current liabilities Accrued expenses and other current liabilities
Finance leases    
Right-of-use assets $ 3.2 $ 2.7
Short-term lease liabilities (included in “Accrued expenses and other current liabilities”) 0.7 0.6
Long-term lease liabilities 1.5 1.1
Total lease liabilities $ 2.2 $ 1.7
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities Accrued expenses and other current liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Lease liabilities Lease liabilities
v3.25.0.1
Leases - Narratives (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Leases [Abstract]      
Amortization of right of use assets $ 24.6 $ 23.9 $ 22.9
v3.25.0.1
Derivative financial instruments - Fair Values of Derivative Instruments (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Derivatives, Fair Value    
Derivative liabilities $ (43.9) $ (103.0)
Net $ (10.6) $ (48.9)
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities, Other non-current liabilities Accrued expenses and other current liabilities, Other non-current liabilities
—Currency swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Net $ (19.4) $ (69.2)
—Interest rate swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Net 7.1 18.2
—Currency forward contracts | Derivatives not designated as hedging instruments:    
Derivatives, Fair Value    
Net 1.7 2.1
Prepaid expenses and other assets    
Derivatives, Fair Value    
Derivative assets $ 31.8 $ 42.3
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other assets Prepaid expenses and other assets
Prepaid expenses and other assets | —Currency swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Derivative assets $ 16.3 $ 8.5
Prepaid expenses and other assets | —Interest rate swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Derivative assets 13.4 29.9
Prepaid expenses and other assets | —Currency forward contracts | Derivatives not designated as hedging instruments:    
Derivatives, Fair Value    
Derivative assets 2.1 3.9
Other non- current assets    
Derivatives, Fair Value    
Derivative assets $ 1.5 $ 11.8
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other non-current assets Other non-current assets
Other non- current assets | —Currency swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Derivative assets $ 1.3 $ 0.0
Other non- current assets | —Interest rate swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Derivative assets 0.2 11.8
Other non- current assets | —Currency forward contracts | Derivatives not designated as hedging instruments:    
Derivatives, Fair Value    
Derivative assets 0.0 0.0
Accrued expenses and other current liabilities    
Derivatives, Fair Value    
Derivative liabilities $ (6.6) $ (11.7)
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities Accrued expenses and other current liabilities
Accrued expenses and other current liabilities | —Currency swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Derivative liabilities $ 0.0 $ 0.0
Accrued expenses and other current liabilities | —Interest rate swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Derivative liabilities (6.2) (9.9)
Accrued expenses and other current liabilities | —Currency forward contracts | Derivatives not designated as hedging instruments:    
Derivatives, Fair Value    
Derivative liabilities (0.4) (1.8)
Other  non- current liabilities    
Derivatives, Fair Value    
Derivative liabilities $ (37.3) $ (91.3)
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other non-current liabilities Other non-current liabilities
Other  non- current liabilities | —Currency swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Derivative liabilities $ (37.0) $ (77.7)
Other  non- current liabilities | —Interest rate swaps | Derivatives designated as hedging instruments:    
Derivatives, Fair Value    
Derivative liabilities (0.3) (13.6)
Other  non- current liabilities | —Currency forward contracts | Derivatives not designated as hedging instruments:    
Derivatives, Fair Value    
Derivative liabilities $ 0.0 $ 0.0
v3.25.0.1
Derivative financial instruments - Narratives (Details)
12 Months Ended
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 28, 2024
EUR (€)
Dec. 28, 2024
CNY (¥)
Dec. 28, 2024
USD ($)
Jul. 31, 2024
EUR (€)
Dec. 30, 2023
EUR (€)
Dec. 30, 2023
CNY (¥)
Dec. 30, 2023
USD ($)
Nov. 30, 2023
CNY (¥)
Nov. 30, 2022
EUR (€)
Jul. 02, 2022
EUR (€)
Jan. 01, 2022
EUR (€)
Net Investment Hedges                            
Derivative                            
Cash flow hedge earnings $ (13,400,000)                          
Derivatives not designated as hedging instruments                            
Derivative                            
Gain on derivative, recognized in the income statement 5,700,000 $ 5,600,000 $ 6,300,000                      
Derivatives designated as hedging instruments | —Euro Term Loan | Net Investment Hedges | Secured debt:                            
Derivative                            
Notional amount of derivative contracts | €                         € 25,000,000  
Debt instrument principal amount | €                           € 147,000,000
Currency swap | Derivatives designated as hedging instruments | Net Investment Hedges                            
Derivative                            
Notional amount of derivative contracts       € 1,033,500,000 ¥ 1,784,000,000   € 277,400,000 € 756,100,000 ¥ 1,784,000,000   ¥ 1,784,000,000      
Gain on derivative, recognized in the income statement 14,600,000 10,300,000 5,800,000                      
Interest rate swaps | Cash Flow Hedging                            
Derivative                            
Notional amount of derivative contracts           $ 1,255,000,000       $ 1,255,000,000        
Interest rate swaps due June 30, 2020 through June 30, 2025 | Cash Flow Hedging                            
Derivative                            
Notional amount of derivative contracts           870,000,000                
Interest rate swaps due November 16, 2022 through November 16, 2027 | Cash Flow Hedging                            
Derivative                            
Notional amount of derivative contracts           385,000,000                
Interest rate swaps due November 16, 2022 through November 16, 2027 | Derivatives designated as hedging instruments | Net Investment Hedges                            
Derivative                            
Notional amount of derivative contracts | €                       € 501,600,000    
—Currency forward contracts | Derivatives not designated as hedging instruments                            
Derivative                            
Notional amount of derivative contracts           147,500,000       140,800,000        
—Currency forward contracts recognized in SG&A | Derivatives not designated as hedging instruments                            
Derivative                            
Notional amount of derivative contracts           $ 0       $ 0        
Gain on derivative, recognized in the income statement $ 5,700,000 $ 5,600,000 $ 6,300,000                      
v3.25.0.1
Derivative financial instruments - Net Investment Hedging Instruments in OCI (Details) - Net Investment Hedges - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Derivative Instruments, Gain (Loss)      
Total net fair value (losses) gains $ 49.8 $ (33.2) $ (5.7)
Interest rate caps      
Derivative Instruments, Gain (Loss)      
Total net fair value (losses) gains 0.0 0.0 10.6
—Designated cross currency swaps      
Derivative Instruments, Gain (Loss)      
Total net fair value (losses) gains $ 49.8 $ (33.2) $ (16.3)
v3.25.0.1
Derivative financial instruments - OCI Movement (Details) - Interest Rate Contract - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Movement recognized in OCI in relation to:      
—Fair value gain on cash flow hedges $ 13.0 $ 7.4 $ 61.7
—Amortization to net income of prior period fair value losses 0.0 8.9 17.9
—Reclassification from OCI to net income (34.7) (33.0) (4.0)
Total movement $ (21.7) $ (16.7) $ 75.6
v3.25.0.1
Derivative financial instruments - Gains (Losses) From Derivative Instruments Not Designated as Hedging Instruments (Details) - Derivatives not designated as hedging instruments - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Derivative Instruments, Gain (Loss)      
Gain (losses) on derivative, recognized in the income statement $ 5.7 $ 5.6 $ 6.3
—Currency forward contracts recognized in SG&A      
Derivative Instruments, Gain (Loss)      
Gain (losses) on derivative, recognized in the income statement $ 5.7 $ 5.6 $ 6.3
v3.25.0.1
Fair value measurement - Carrying Amount and Fair Value of Debt (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Carrying  amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Current $ 39.1 $ 36.5
Non-current 2,311.5 2,415.0
Fair value of debt 2,350.6 2,451.5
Fair value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Current 38.7 36.5
Non-current 2,314.3 2,444.7
Fair value of debt $ 2,353.0 $ 2,481.2
v3.25.0.1
Fair value measurement - Narratives (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Apr. 30, 2024
Debt Instrument        
—Impairment of fixed and other assets   $ 0.1 $ 1.1  
Equity investment in a privately held company       $ 5.0
Two Dollar Term Loan | Term loan        
Debt Instrument        
Variable rate (as a percent) 0.50%      
v3.25.0.1
Fair value measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Derivative liabilities $ (43.9) $ (103.0)
Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Derivative assets 33.3 54.1
Derivative liabilities (43.9) (103.0)
Cash equivalents 72.3 129.0
Quoted prices in active markets (Level 1) | Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Derivative assets 0.0 0.0
Derivative liabilities 0.0 0.0
Cash equivalents 41.5 76.2
Significant observable inputs (Level 2) | Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Derivative assets 33.3 54.1
Derivative liabilities (43.9) (103.0)
Cash equivalents $ 30.8 $ 52.8
v3.25.0.1
Debt - Long-Term Debt (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Jun. 04, 2024
Dec. 30, 2023
Debt Instrument      
Total principal of debt $ 2,363.5   $ 2,471.9
Deferred issuance costs (33.2)   (37.4)
Accrued interest 20.3   17.0
Total carrying value of debt 2,350.6   2,451.5
Debt, current portion 39.1   36.5
Debt, less current portion $ 2,311.5   $ 2,415.0
Weighted average interest rate (as a percent) 6.44%   7.66%
Secured debt: | —Revolving credit facility      
Debt Instrument      
Total principal of debt $ 0.0   $ 0.0
Secured debt: | —2024 Dollar Term Loans due June 4, 2031      
Debt Instrument      
Stated interest rate on debt (as a percent) 0.75%    
Total principal of debt $ 1,300.0   0.0
Deferred issuance costs   $ (9.5)  
Secured debt: | —2022 Dollar Term Loans due November 16, 2029      
Debt Instrument      
Stated interest rate on debt (as a percent) 1.75%    
Total principal of debt $ 563.5   567.8
Secured debt: | —2021 Dollar Term Loans due November 16, 2029      
Debt Instrument      
Total principal of debt $ 0.0   1,336.1
Unsecured debt: | —6.875% Dollar Senior Notes due July 1, 2029      
Debt Instrument      
Stated interest rate on debt (as a percent) 6.875%    
Total principal of debt $ 500.0   0.0
Unsecured debt: | —6.250% Dollar Senior Notes due January 16, 2026      
Debt Instrument      
Stated interest rate on debt (as a percent) 6.25%    
Total principal of debt $ 0.0   $ 568.0
v3.25.0.1
Debt - Principal Maturities Due (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Fiscal year:    
—2025 $ 23.4  
—2026 18.8  
—2027 18.8  
—2028 18.8  
—2029 1,052.1  
Thereafter 1,231.6  
Total carrying value of debt $ 2,363.5 $ 2,471.9
v3.25.0.1
Debt - Debt Issuances and Redemptions Narratives (Details) - USD ($)
1 Months Ended 12 Months Ended
Aug. 16, 2024
Jun. 04, 2024
Jun. 03, 2024
Nov. 16, 2022
Aug. 31, 2024
Feb. 29, 2024
May 31, 2023
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Nov. 18, 2021
Debt Instrument                      
Proceeds from long-term debt               $ 1,840,000,000 $ 100,000,000.0 $ 645,000,000.0  
Total principal of debt               2,363,500,000 2,471,900,000    
Interest paid               132,600,000 155,100,000 118,700,000  
Debt issuance costs, net               33,200,000 37,400,000    
Repayments of debt               1,948,400,000 119,600,000 $ 676,900,000  
—Revolving credit facility                      
Debt Instrument                      
Proceeds from long-term debt $ 40,000,000       $ 40,000,000            
Maximum borrowing capacity of credit facility   $ 500,000,000 $ 250,000,000                
Line of credit, deferred issuance costs   $ 2,500,000                  
Secured debt: | —Revolving credit facility                      
Debt Instrument                      
Total principal of debt               0 0    
—2022 Dollar Term Loans due November 16, 2029 | Secured debt:                      
Debt Instrument                      
Total principal of debt               $ 563,500,000 567,800,000    
Deferred financing cost recognized       $ 900,000              
Decrease in variable rate (percent)   7500.00%                  
Variable rate (as a percent)   2.25% 3.00%         0.50%      
Stated interest rate on debt (as a percent)               1.75%      
Quarterly amortization payment rate (as a percent)               0.25%      
2024 Dollar Term Loans Due 2031 | Secured debt:                      
Debt Instrument                      
Total principal of debt               $ 1,300,000,000 0    
Debt instrument principal amount   $ 1,300,000,000                  
Amortization of debt discount   0                  
Debt issuance costs, net   9,500,000                  
Variable rate (as a percent)               1.50%      
Stated interest rate on debt (as a percent)               0.75%      
Quarterly amortization payment rate (as a percent)               0.25%      
—2021 Dollar Term Loans due November 16, 2029 | Secured debt:                      
Debt Instrument                      
Total principal of debt               $ 0 $ 1,336,100,000    
Redeemable amount   1,232,600,000                  
Interest paid   1,100,000                  
Deferred financing cost recognized   11,200,000                  
Secured Multi-Currency Facility | —Revolving credit facility                      
Debt Instrument                      
Maximum borrowing capacity of credit facility   500,000,000 $ 250,000,000               $ 500,000,000
Secured Multi-Currency Facility | Letter of Credit Sub-Facility                      
Debt Instrument                      
Maximum borrowing capacity of credit facility   150,000,000                  
Asset-backed revolver | —Revolving credit facility                      
Debt Instrument                      
Proceeds from long-term debt             $ 100,000,000        
Deferred financing cost recognized   1,000,000                  
Line of credit facility, borrowing capacity terminated   250,000,000                  
2024 Unsecured Senior Notes | Unsecured debt:                      
Debt Instrument                      
Debt instrument principal amount   500,000,000                  
Debt issuance costs, net   7,600,000                  
Unamortized discount   0                  
2019 Unsecured Senior Notes | Unsecured debt:                      
Debt Instrument                      
Redeemable amount   568,000,000                  
Interest paid   13,700,000                  
Deferred financing cost recognized   $ 2,600,000                  
Existing DollarTerm Loans | Secured debt:                      
Debt Instrument                      
Deferred financing cost recognized           $ 1,000,000          
Repayments of debt           $ 100,000,000          
v3.25.0.1
Debt - Dollar and Euro Term Loans Narratives (Details)
$ in Millions
12 Months Ended
Jun. 04, 2024
USD ($)
Jun. 03, 2024
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Feb. 24, 2021
loan
Debt Instrument          
Debt issuance costs, net     $ 33.2 $ 37.4  
2024 Dollar Term Loans Due 2031 | Secured debt:          
Debt Instrument          
Decrease in basis points     0.50%    
Variable rate (as a percent)     1.50%    
Stated interest rate on debt (as a percent)     0.75%    
Debt issuance costs, net $ 9.5        
Quarterly amortization payment rate (as a percent)     0.25%    
Quarterly amortization payment on debt     $ 4.3    
—2022 Dollar Term Loans due November 16, 2029 | Secured debt:          
Debt Instrument          
Decrease in basis points     0.50%    
Variable rate (as a percent) 2.25% 3.00% 0.50%    
Stated interest rate on debt (as a percent)     1.75%    
Interest rate during period on debt (as a percent)     6.32%    
Quarterly amortization payment rate (as a percent)     0.25%    
Quarterly amortization payment on debt     $ 0.0 5.8  
2021 Dollar Term Loans | Secured debt:          
Debt Instrument          
Quarterly amortization payment on debt     $ 3.4 $ 13.8  
New Dollar Term Loan | Secured debt:          
Debt Instrument          
Number of loans (loan) | loan         2
v3.25.0.1
Debt - Foreign Exchange Gain (Details) - Euro Term Loan - Secured Debt - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Debt Instrument      
Gain recognized in statement of operations $ 0.0 $ 0.0 $ 45.2
Gain recognized in OCI 0.0 0.0 10.6
Total gain $ 0.0 $ 0.0 $ 55.8
v3.25.0.1
Debt - 2024 Unsecured Senior Notes Narratives (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Jun. 04, 2024
Dec. 30, 2023
Debt Instrument      
Total principal of debt $ 2,363.5   $ 2,471.9
Unsecured debt:      
Debt Instrument      
Redemption price in the event of change in control (as a percent) 101.00%    
Redemption price in the event of sale (as a percent) 100.00%    
Unsecured debt: | —6.875% Dollar Senior Notes due July 1, 2029      
Debt Instrument      
Total principal of debt $ 500.0   0.0
Stated interest rate on debt (as a percent) 6.875%    
Equity offering (as a percent) 40.00%    
Unsecured debt: | —6.875% Dollar Senior Notes due July 1, 2029 | Prior to July 1, 2026      
Debt Instrument      
Redemption price (as a percent) 106.875%    
Unsecured debt: | 2019 Unsecured Senior Notes      
Debt Instrument      
Redeemable amount   $ 568.0  
Unsecured debt: | —6.25% Dollar Senior Notes due 2026      
Debt Instrument      
Total principal of debt $ 0.0   $ 568.0
Stated interest rate on debt (as a percent) 6.25%    
Redeemable amount   $ 568.0  
v3.25.0.1
Debt - Redemption Prices Plus Accrued and Unpaid Interest (Details) - —6.875% Dollar Senior Notes due July 1, 2029 - Unsecured Debt
12 Months Ended
Dec. 28, 2024
—July 1, 2026  
Debt Instrument, Redemption  
Redemption price (as a percent) 103.438%
—July 1, 2027  
Debt Instrument, Redemption  
Redemption price (as a percent) 101.719%
—July 1, 2028 and thereafter  
Debt Instrument, Redemption  
Redemption price (as a percent) 100.00%
v3.25.0.1
Debt - Revolving Credit Facility Narratives (Details) - USD ($)
1 Months Ended 12 Months Ended
Jan. 21, 2025
Aug. 16, 2024
Aug. 31, 2024
May 31, 2023
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Jun. 04, 2024
Jun. 03, 2024
Nov. 18, 2021
Line of Credit Facility                    
Proceeds from long-term debt         $ 1,840,000,000 $ 100,000,000.0 $ 645,000,000.0      
Performance Bonds, Letters of Credit and Bank Guarantees                    
Line of Credit Facility                    
Line of credit carrying value         12,300,000 8,400,000        
—Revolving credit facility                    
Line of Credit Facility                    
Maximum borrowing capacity of credit facility               $ 500,000,000 $ 250,000,000  
Proceeds from long-term debt   $ 40,000,000 $ 40,000,000              
—Revolving credit facility | Subsequent Event                    
Line of Credit Facility                    
Decrease in basis points (0.50%)                  
—Revolving credit facility | Subsequent Event | Debt Option One                    
Line of Credit Facility                    
Decrease in basis points 0.25%                  
Stated interest rate on debt (as a percent) 1.75%                  
—Revolving credit facility | Base Rate | Subsequent Event | Debt Option Two                    
Line of Credit Facility                    
Variable rate (as a percent) 0.75%                  
—Revolving credit facility | Secured Overnight Financing Rate (SOFR) | Subsequent Event | Debt Option One                    
Line of Credit Facility                    
Variable rate (as a percent) 0.00%                  
—Revolving credit facility | Secured Multi-Currency Facility                    
Line of Credit Facility                    
Maximum borrowing capacity of credit facility               500,000,000 $ 250,000,000 $ 500,000,000
Line of credit facility, outstanding balance trigger               500,000,000    
—Revolving credit facility | Asset-backed revolver                    
Line of Credit Facility                    
Proceeds from long-term debt       $ 100,000,000            
Letter of Credit Sub-Facility | Secured Multi-Currency Facility                    
Line of Credit Facility                    
Maximum borrowing capacity of credit facility               $ 150,000,000    
Line of credit carrying value         $ 28,200,000 $ 0        
v3.25.0.1
Accrued expenses and other liabilities - Accrued Expenses and Other Liabilities (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Jan. 01, 2022
Payables and Accruals [Abstract]        
Accrued compensation $ 93.9 $ 96.2    
Current portion of lease obligations 25.3 22.8    
Derivative financial instruments 43.9 103.0    
Payroll and related taxes payable 16.7 14.9    
VAT and other taxes payable 9.9 9.9    
Warranty reserve 16.4 15.9 $ 17.6 $ 18.7
Restructuring reserve 2.8 5.1 $ 7.5  
Workers’ compensation reserve 8.7 8.6    
Other accrued expenses and other liabilities 102.4 95.2    
Accrued expenses and other liabilities $ 320.0 $ 371.6    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities, Other non-current liabilities Accrued expenses and other current liabilities, Other non-current liabilities    
v3.25.0.1
Accrued expenses and other liabilities - Classification (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Payables and Accruals [Abstract]    
—Accrued expenses and other current liabilities $ 251.3 $ 248.5
—Other non-current liabilities 68.7 123.1
Accrued expenses and other liabilities $ 320.0 $ 371.6
v3.25.0.1
Accrued expenses and other liabilities - Warranty Reserves (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Warranty reserves      
Balance as of the beginning of the period $ 15.9 $ 17.6 $ 18.7
Charge for the period 10.8 6.1 10.8
Utilized during the period (8.2) (7.7) (10.9)
Released during the period (1.7) 0.0 (0.3)
Foreign currency translation (0.4) (0.1) (0.7)
Balance as of the end of the period $ 16.4 $ 15.9 $ 17.6
v3.25.0.1
Post-retirement benefits - Narratives (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure      
Benefit obligation, period decrease $ 0.3    
Foreign currency translation $ 1.6    
Initial health care cost trend (percentage) 5.76% 5.76%  
Ultimate health care cost trend (percentage) 4.85% 4.84%  
Pensions      
Defined Benefit Plan Disclosure      
Defined contribution expense $ 20.9 $ 21.0 $ 20.2
Actuarial gain (loss) 41.5 (6.7)  
Employer contributions 8.0 7.7  
Foreign currency translation (11.3) 19.6  
Interest cost 24.3 25.1 15.2
Actual loss on plan assets (22.5) 19.3  
Employer service cost 4.0 3.9  
Expected future employer contributions in current fiscal year 9.0    
Other post-retirement benefits      
Defined Benefit Plan Disclosure      
Actuarial gain (loss) 0.2 (0.3)  
Foreign currency translation (0.9) 0.3  
Interest cost 1.3 $ 1.5 $ 1.2
Expected future employer contributions in current fiscal year $ 2.8    
v3.25.0.1
Post-retirement benefits - Funded Status (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position    
Post-retirement benefit obligations $ (78.0) $ (83.8)
Pensions    
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position    
Pension surplus 5.7 8.6
Accrued expenses and other current liabilities (2.6) (2.4)
Post-retirement benefit obligations (55.9) (59.3)
Net funded status 52.8 53.1
Plans whose projected benefit obligation was in excess of plan assets:    
—Aggregate projected benefit obligation 440.8 246.5
—Aggregate fair value of plan assets 382.3 184.8
Plans whose accumulated benefit obligation was in excess of plan assets:    
—Aggregate accumulated benefit obligation 436.9 241.3
—Aggregate fair value of plan assets 382.3 184.0
Other post-retirement benefits    
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position    
Accrued expenses and other current liabilities (2.8) (3.0)
Post-retirement benefit obligations (22.1) (24.5)
Net funded status $ (24.9) $ (27.5)
v3.25.0.1
Post-retirement benefits - Changes in the Projected Benefit Obligation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Defined Benefit Plan, Change in Benefit Obligation      
Foreign currency translation $ 1.6    
Pensions      
Defined Benefit Plan, Change in Benefit Obligation      
Benefit obligation at the beginning of the period 570.2 $ 560.5  
Employer service cost 4.0 3.9  
Plan participants’ contributions 0.4 0.1  
Interest cost 24.3 25.1 $ 15.2
Net actuarial (gain) loss (41.5) 6.7  
Benefits paid (42.4) (42.6)  
Expenses paid from assets (1.8) (1.8)  
Curtailments and settlements (0.4) (1.3)  
Foreign currency translation (11.3) 19.6  
Benefit obligation at the end of the period 501.5 570.2 560.5
Accumulated benefit obligation 498.0 565.6  
Other post-retirement benefits      
Defined Benefit Plan, Change in Benefit Obligation      
Benefit obligation at the beginning of the period 27.5 28.4  
Interest cost 1.3 1.5 1.2
Net actuarial (gain) loss (0.2) 0.3  
Benefits paid (2.8) (3.0)  
Foreign currency translation (0.9) 0.3  
Benefit obligation at the end of the period 24.9 27.5 $ 28.4
Accumulated benefit obligation $ 24.9 $ 27.5  
v3.25.0.1
Post-retirement benefits - Change in Plan Assets (Details) - Pensions - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Defined Benefit Plan, Change in Fair Value of Plan Assets    
Plan assets at the beginning of the period $ 517.1 $ 517.3
Actual (loss) gain on plan assets (22.5) 19.3
Employer contributions 8.0 7.7
Plan participants’ contributions 0.4 0.1
Settlements (0.4) (1.3)
Benefits paid (42.4) (42.6)
Expenses paid from assets (1.8) (1.8)
Foreign currency translation (9.7) 18.4
Plan assets at the end of the period $ 448.7 $ 517.1
v3.25.0.1
Post-retirement benefits - Plan Asset by Asset Category (Details) - Pensions - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset $ 448.7 $ 517.1 $ 517.3
Total 448.7 517.1  
Quoted prices in active markets (Level 1)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Total 6.6 2.4  
Significant observable inputs (Level 2)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Total 199.4 229.6  
Significant unobservable inputs (Level 3)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 242.7 285.1 $ 275.4
Total 242.7 285.1  
Equity securities      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 35.9 37.4  
Equity securities | Quoted prices in active markets (Level 1)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Equity securities | Significant observable inputs (Level 2)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 35.9 37.4  
Equity securities | Significant unobservable inputs (Level 3)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
—Corporate bonds      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 40.2 42.2  
—Corporate bonds | Quoted prices in active markets (Level 1)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
—Corporate bonds | Significant observable inputs (Level 2)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 40.2 42.2  
—Corporate bonds | Significant unobservable inputs (Level 3)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
—Government bonds      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 82.1 105.6  
—Government bonds | Quoted prices in active markets (Level 1)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
—Government bonds | Significant observable inputs (Level 2)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 82.1 105.6  
—Government bonds | Significant unobservable inputs (Level 3)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Annuities and insurance      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 242.7 285.1  
Annuities and insurance | Quoted prices in active markets (Level 1)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Annuities and insurance | Significant observable inputs (Level 2)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Annuities and insurance | Significant unobservable inputs (Level 3)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 242.7 285.1  
Liquid alternatives      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 19.8 22.4  
Liquid alternatives | Quoted prices in active markets (Level 1)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Liquid alternatives | Significant observable inputs (Level 2)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 19.8 22.4  
Liquid alternatives | Significant unobservable inputs (Level 3)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Real estate      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 21.4 22.0  
Real estate | Quoted prices in active markets (Level 1)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Real estate | Significant observable inputs (Level 2)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 21.4 22.0  
Real estate | Significant unobservable inputs (Level 3)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Cash and cash equivalents      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 6.6 2.4  
Cash and cash equivalents | Quoted prices in active markets (Level 1)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 6.6 2.4  
Cash and cash equivalents | Significant observable inputs (Level 2)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset 0.0 0.0  
Cash and cash equivalents | Significant unobservable inputs (Level 3)      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Plan asset $ 0.0 $ 0.0  
v3.25.0.1
Post-retirement benefits - Changes in the Fair Value of Plan Assets Measured Using Significant Unobservable Inputs (Details) - Pensions - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation    
Plan assets at the beginning of the period $ 517.1 $ 517.3
Plan assets at the end of the period 448.7 517.1
Significant unobservable inputs (Level 3)    
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation    
Plan assets at the beginning of the period 285.1 275.4
Actual (loss) gain on plan assets (23.2) 7.2
Purchases 0.0 0.7
Contributions 1.5 0.4
Impacts of benefits paid (16.2) (13.4)
Settlements 0.0 (1.1)
Foreign currency translation (4.5) 15.9
Plan assets at the end of the period $ 242.7 $ 285.1
v3.25.0.1
Post-retirement benefits - Expected Future Benefit Payments (Details)
$ in Millions
Dec. 28, 2024
USD ($)
Pensions  
Fiscal year:  
—2025 $ 40.7
—2026 40.8
—2027 40.3
—2028 40.8
—2029 40.6
—2030 through 2034 196.4
Other post-retirement benefits  
Fiscal year:  
—2025 2.8
—2026 2.7
—2027 2.6
—2028 2.4
—2029 2.3
—2030 through 2034 $ 9.6
v3.25.0.1
Post-retirement benefits - Components of Net Periodic Benefit (Income) Cost (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Pensions      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Employer service cost $ 4.0 $ 3.9 $ 3.3
Settlements and curtailments 0.0 (0.1) (0.2)
Interest cost 24.3 25.1 15.2
Expected return on plan assets (25.8) (25.9) (21.7)
Amortization of prior net actuarial (gain) loss (0.1) (1.0) 0.3
Amortization of prior service cost 0.9 0.9 0.9
Net periodic benefit cost (income) 3.3 2.9 (2.2)
Other post-retirement benefits      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Interest cost 1.3 1.5 1.2
Amortization of prior net actuarial (gain) loss (2.8) (3.0) (1.8)
Amortization of prior service cost (0.4) (0.5) (0.4)
Net periodic benefit cost (income) $ (1.9) $ (2.0) $ (1.0)
v3.25.0.1
Post-retirement benefits - Effects of Pension Plan Recognized in OCI (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Pensions      
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax      
Current period net actuarial loss $ 6.8 $ 13.4 $ 58.6
Amortization of prior net actuarial gain (loss) 0.1 1.0 (0.3)
Amortization of prior service cost (0.9) (0.9) (0.9)
Gain recognized due to settlements and curtailments 0.0 0.1 0.2
Pre-tax changes recognized in OCI other than foreign currency translation 6.0 13.6 57.6
Foreign currency translation (1.4) 4.0 (0.5)
Total pre-tax changes recognized in OCI 4.6 17.6 57.1
Other post-retirement benefits      
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax      
Current period net actuarial loss (0.2) 0.3 (13.9)
Amortization of prior net actuarial gain (loss) 2.8 3.0 1.8
Amortization of prior service cost 0.4 0.5 0.4
Prior service cost 0.0 0.0 (0.5)
Pre-tax changes recognized in OCI other than foreign currency translation 3.0 3.8 (12.2)
Foreign currency translation 0.9 (0.3) 0.6
Total pre-tax changes recognized in OCI $ 3.9 $ 3.5 $ (11.6)
v3.25.0.1
Post-retirement benefits - Cumulative Losses (Gains) Not Recognized in Net Period Pension Plan (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans      
Pre-tax changes recognized in OCI other than foreign currency translation $ (31.2) $ (34.2) $ (38.0)
Pensions      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Actuarial loss 50.8 43.9 29.4
Prior service costs 8.1 9.0 9.9
Pre-tax changes recognized in OCI other than foreign currency translation (58.9) (52.9) (39.3)
Foreign currency translation 0.6 2.0 (2.0)
Cumulative total 59.5 54.9 37.3
Other post-retirement benefits      
Defined Benefit Plans and Other Postretirement Benefit Plans      
Actuarial loss (29.6) (32.2) (35.5)
Prior service costs (1.8) (2.2) (2.7)
Foreign currency translation 1.0 0.1 0.4
Other adjustments 0.2 0.2 0.2
Cumulative total $ (30.2) $ (34.1) $ (37.6)
v3.25.0.1
Post-retirement benefits - Major Assumptions Used (Details)
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Pensions    
Benefit obligation:    
Discount rate (percentage) 5.081% 4.466%
Rate of salary increase (percentage) 3.622% 3.95%
Net periodic benefit cost:    
Discount rate (percentage) 4.466% 4.598%
Rate of salary increase (percentage) 3.953% 3.51%
Expected return on plan assets (percentage) 4.987% 4.782%
Other post-retirement benefits    
Benefit obligation:    
Discount rate (percentage) 5.19% 5.00%
Net periodic benefit cost:    
Discount rate (percentage) 5.00% 5.44%
v3.25.0.1
Share-based compensation - Narratives (Details) - USD ($)
$ in Millions
6 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Jul. 02, 2022
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Jan. 01, 2022
Share-based Compensation Arrangement by Share-based Payment Award              
Share based compensation expense recognized       $ 28.8 $ 27.4 $ 44.3  
Proceeds from stock options exercised       14.9 18.7 15.9  
—Share options              
Share-based Compensation Arrangement by Share-based Payment Award              
Aggregate intrinsic value of options exercisable       $ 77.9      
Contractual term of options exercisable (in years)       2 years 2 months 12 days      
Aggregate intrinsic value of options that were vested or expected to vest       $ 78.4      
Contractual term of options that were vested or expect to vest (in years)       2 years 3 months 18 days      
Unrecognized compensation relating to non-vested awards       $ 0.3      
Unrecognized compensation relating to non-vested awards, recognition period (in years)       1 year 4 months 24 days      
Aggregate intrinsic value of options exercised       $ 6.0 5.2 $ 1.0  
—Share options | Omaha Topco Ltd. Stock Incentive Plan | —Tier I              
Share-based Compensation Arrangement by Share-based Payment Award              
Vesting period (in years)       5 years      
Term of award (in years)       10 years      
—Share options | Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award              
Vesting period (in years)       3 years      
—Share options | Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award              
Vesting period (in years)       4 years      
—Premium-priced options | Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award              
Vesting period (in years)       3 years      
Term of award (in years)       10 years      
Post grant date start date (in years)       2 years      
—RSUs | Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award              
Vesting period (in years)   1 year          
—RSUs | Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award              
Vesting period (in years)   3 years          
—PRSUs              
Share-based Compensation Arrangement by Share-based Payment Award              
Unrecognized compensation relating to non-vested awards other than option       $ 19.0      
—PRSUs | Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award              
Percentage of shares expected to vest upon achievement of average annual adjusted return on invested capital (as a percent) 75.00%         75.00% 50.00%
Percentage of shares expected to vest upon achievement of certain relative shareholders return (as a percent) 25.00%         25.00% 50.00%
Performance period (in years)     3 years        
—PRSUs | Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award              
Vesting period (in years)   1 year          
Total number of shares expected to vest at term of award arrangement (as a percent) 0.00%            
—PRSUs | Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award              
Vesting period (in years)   3 years          
Total number of shares expected to vest at term of award arrangement (as a percent) 200.00%            
RSU's and PRSU's              
Share-based Compensation Arrangement by Share-based Payment Award              
Unrecognized compensation relating to non-vested awards, recognition period (in years)       1 year 4 months 24 days      
Unrecognized compensation relating to non-vested awards other than option       $ 19.0      
Aggregate intrinsic value of non options vested       $ 21.5 $ 21.5 $ 12.9  
v3.25.0.1
Share-based compensation - Stock Option and SAR Rollforward (Details)
12 Months Ended
Dec. 28, 2024
$ / shares
shares
Number of options  
Beginning balance (in shares) | shares 9,726,970
Granted (in shares) | shares 22,100
Forfeited (in shares) | shares (3,535)
Expired (in shares) | shares (331,996)
Exercised (in shares) | shares (1,554,213)
Ending balance (in shares) | shares 7,859,326
Weighted average exercise price  
Beginning balance (in usd per share) | $ / shares $ 10.90
Granted (in usd per share) | $ / shares 14.87
Forfeited (in usd per share) | $ / shares 13.50
Expired (in usd per share) | $ / shares 17.26
Exercised (in usd per share) | $ / shares 10.61
Ending balance (in usd per share) | $ / shares $ 10.70
—Share options  
Number of options  
Beginning balance (in shares) | shares 2,345,520
Expired (in shares) | shares (331,730)
Exercised (in shares) | shares (533,725)
Ending balance (in shares) | shares 1,480,065
Weighted average exercise price  
Beginning balance (in usd per share) | $ / shares $ 14.90
Expired (in usd per share) | $ / shares 17.27
Exercised (in usd per share) | $ / shares 14.37
Ending balance (in usd per share) | $ / shares $ 14.56
Exercisable at the end of the period (in shares) | shares 7,785,179
Exercisable at the end of the period (in usd per share) | $ / shares $ 10.66
Vested and expected to vest at the end of the period (in shares) | shares 7,858,509
Vested and expected to vest at the end of the period (in usd per share) | $ / shares $ 10.70
—SARs  
Number of options  
Beginning balance (in shares) | shares 735,221
Granted (in shares) | shares 22,100
Forfeited (in shares) | shares (3,535)
Expired (in shares) | shares (266)
Exercised (in shares) | shares (150,127)
Ending balance (in shares) | shares 603,393
Weighted average exercise price  
Beginning balance (in usd per share) | $ / shares $ 10.47
Granted (in usd per share) | $ / shares 14.87
Forfeited (in usd per share) | $ / shares 13.50
Expired (in usd per share) | $ / shares 14.04
Exercised (in usd per share) | $ / shares 9.74
Ending balance (in usd per share) | $ / shares $ 10.79
—Premium-priced options  
Number of options  
Beginning balance (in shares) | shares 835,469
Ending balance (in shares) | shares 835,469
Weighted average exercise price  
Beginning balance (in usd per share) | $ / shares $ 18.88
Ending balance (in usd per share) | $ / shares $ 18.88
—Tier I | —Share options  
Number of options  
Beginning balance (in shares) | shares 1,828,327
Exercised (in shares) | shares (271,309)
Ending balance (in shares) | shares 1,557,018
Weighted average exercise price  
Beginning balance (in usd per share) | $ / shares $ 6.98
Exercised (in usd per share) | $ / shares 7.15
Ending balance (in usd per share) | $ / shares $ 6.95
—Tier II | —Share options  
Number of options  
Beginning balance (in shares) | shares 1,996,017
Exercised (in shares) | shares (273,378)
Ending balance (in shares) | shares 1,722,639
Weighted average exercise price  
Beginning balance (in usd per share) | $ / shares $ 7.01
Exercised (in usd per share) | $ / shares 7.06
Ending balance (in usd per share) | $ / shares $ 7.00
—Tier IV | —Share options  
Number of options  
Beginning balance (in shares) | shares 1,986,416
Exercised (in shares) | shares (325,674)
Ending balance (in shares) | shares 1,660,742
Weighted average exercise price  
Beginning balance (in usd per share) | $ / shares $ 10.52
Exercised (in usd per share) | $ / shares 10.74
Ending balance (in usd per share) | $ / shares $ 10.48
v3.25.0.1
Share-based compensation - RSU and PRSU Rollforward (Details)
12 Months Ended
Dec. 28, 2024
$ / shares
shares
Number of awards  
Beginning balance (in shares) | shares 3,949,891
Granted (in shares) | shares 1,676,859
Forfeited (in shares) | shares (483,486)
Vested (in shares) | shares (1,544,266)
Ending balance (in shares) | shares 3,598,998
Weighted average grant date fair value $  
Beginning balance (in usd per share) | $ / shares $ 14.47
Granted (in usd per share) | $ / shares 15.47
Forfeited (in usd per share) | $ / shares 14.42
Vested (in usd per share) | $ / shares 13.91
Ending balance (in usd per share) | $ / shares $ 15.19
—RSUs  
Number of awards  
Beginning balance (in shares) | shares 3,032,230
Granted (in shares) | shares 1,250,252
Forfeited (in shares) | shares (321,638)
Vested (in shares) | shares (1,389,992)
Ending balance (in shares) | shares 2,570,852
Weighted average grant date fair value $  
Beginning balance (in usd per share) | $ / shares $ 13.78
Granted (in usd per share) | $ / shares 15.16
Forfeited (in usd per share) | $ / shares 13.75
Vested (in usd per share) | $ / shares 13.79
Ending balance (in usd per share) | $ / shares $ 14.45
—PRSUs  
Number of awards  
Beginning balance (in shares) | shares 917,661
Granted (in shares) | shares 426,607
Forfeited (in shares) | shares (161,848)
Vested (in shares) | shares (154,274)
Ending balance (in shares) | shares 1,028,146
Weighted average grant date fair value $  
Beginning balance (in usd per share) | $ / shares $ 16.77
Granted (in usd per share) | $ / shares 16.37
Forfeited (in usd per share) | $ / shares 15.77
Vested (in usd per share) | $ / shares 15.00
Ending balance (in usd per share) | $ / shares $ 17.03
v3.25.0.1
Share-based compensation - Fair Value and Valuation Assumptions (Details) - $ / shares
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
—SARs      
Share-based Compensation Arrangement by Share-based Payment Award      
Weighted average grant date fair value (in usd per share) $ 6.95 $ 6.57 $ 6.94
Expected volatility (as a percent) 41.70% 42.80% 43.50%
Expected option life (in years) 6 years 6 years 6 years
Risk-free interest rate (as a percent) 4.22% 4.03% 1.91%
—RSUs      
Share-based Compensation Arrangement by Share-based Payment Award      
Weighted average grant date fair value (in usd per share) $ 15.16 $ 13.79 $ 13.67
—PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award      
Weighted average grant date fair value (in usd per share) $ 16.37 $ 15.88 $ 17.23
Expected volatility (as a percent) 31.60% 37.70% 49.10%
Risk-free interest rate (as a percent) 4.38% 4.60% 1.72%
v3.25.0.1
Equity - Movement in Number of Shares in Issue (Details) - shares
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Increase (Decrease) in Stockholders' Equity    
Balance as of the beginning of the period (in shares) 264,259,788 282,578,917
Exercise of share options (in shares) 1,376,987 2,258,344
Vesting of restricted stock units, net of withholding taxes (in shares) 1,257,515 1,357,161
Shares repurchased and cancelled (in shares) (11,690,303) (21,934,634)
Balance as of the end of the period (in shares) 255,203,987 264,259,788
v3.25.0.1
Equity - Narratives (Details) - USD ($)
1 Months Ended 12 Months Ended
Oct. 31, 2024
Aug. 16, 2024
Feb. 16, 2024
Feb. 12, 2024
May 23, 2023
May 18, 2023
May 17, 2023
Aug. 31, 2024
May 31, 2023
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Jul. 31, 2024
Feb. 29, 2024
Apr. 28, 2023
Equity                              
Repurchase program, authorized amount                         $ 250,000,000 $ 100,000,000 $ 250,000,000
Shares repurchased and cancelled (in shares)                   11,690,303 21,934,634        
Payments for repurchase of common stock                   $ 176,100,000 $ 251,700,000 $ 175,900,000      
Proceeds from long-term debt                   1,840,000,000 $ 100,000,000.0 $ 645,000,000.0      
—Revolving credit facility                              
Equity                              
Proceeds from long-term debt   $ 40,000,000           $ 40,000,000              
—Revolving credit facility | Asset-backed revolver                              
Equity                              
Proceeds from long-term debt                 $ 100,000,000            
Citigroup | Affiliated Entity                              
Equity                              
Share price (in usd per share)     $ 12.045   $ 11.3975                    
Shares repurchased and cancelled (in shares)   7,539,203 4,151,100   21,934,634                    
Payments for repurchase of common stock   $ 125,000,000 $ 50,000,000   $ 250,000,000                    
Equity instrument, cost related transaction amount   $ 800,000 $ 300,000   $ 1,700,000                    
Share repurchase remaining amount                   $ 125,000,000          
Private Placement                              
Equity                              
Issuance of shares (in shares)           3,375,000                  
Private Placement | Affiliated Entity                              
Equity                              
Issuance of shares (in shares) 11,635,224                            
Share price (in usd per share) $ 19.3409                            
Scenario, Plan | Private Placement                              
Equity                              
Issuance of shares (in shares)   23,000,000   20,125,000     22,500,000                
Share price (in usd per share)   $ 16.58   $ 12.045                      
v3.25.0.1
Analysis of accumulated other comprehensive (loss) income (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance $ 3,543.9 $ 3,443.6 $ 3,481.4
Other comprehensive (loss) income, net of tax, attributable to parent (224.6) 114.5 (114.5)
Other comprehensive income (loss) (267.8) 75.5 (133.8)
Ending balance 3,340.3 3,543.9 3,443.6
Accumulated OCI      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance (906.9) (982.4) (848.6)
Ending balance (1,174.7) (906.9) (982.4)
Accumulated OCI attributable to shareholders      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance (828.5) (917.8) (825.2)
Other comprehensive (loss) income, net of tax, attributable to parent (248.7) 89.3 (92.6)
Other comprehensive income (loss) (248.7) 89.3 (92.6)
Ending balance (1,077.2) (828.5) (917.8)
Post- retirement benefit      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance (15.3) 0.6 36.6
Other comprehensive (loss) income, net of tax, attributable to parent (7.9) (15.9) (36.0)
Other comprehensive (loss) income, net of tax, attributable to noncontrolling interest 0.0 0.0 0.9
Other comprehensive income (loss) (7.8) (12.7) (33.9)
Ending balance (23.2) (15.3) 0.6
Foreign currency translation      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Other comprehensive (loss) income, net of tax, attributable to parent (0.1) (3.2) (1.2)
Post-retirement benefit movements      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Other comprehensive (loss) income, net of tax, attributable to parent (7.8) (12.7) (34.8)
Cumulative translation adjustment      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance (832.3) (950.0) (836.7)
Other comprehensive (loss) income, net of tax, attributable to parent (224.5) 117.7 (113.3)
Other comprehensive (loss) income, net of tax, attributable to noncontrolling interest (19.1) (13.8) (42.1)
Other comprehensive income (loss) (243.7) 100.7 (156.6)
Ending balance (1,056.8) (832.3) (950.0)
Cash flow hedges      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance 19.1 31.6 (25.1)
Other comprehensive (loss) income, net of tax, attributable to parent (16.3) (12.5) 56.7
Ending balance 2.8 19.1 31.6
Non- controlling interests      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance (78.4) (64.6) (23.4)
Other comprehensive (loss) income, net of tax, attributable to noncontrolling interest (19.1) (13.8) (41.2)
Ending balance $ (97.5) $ (78.4) $ (64.6)
v3.25.0.1
Related party transactions - Narratives (Details) - USD ($)
$ / shares in Units, $ in Millions
Oct. 31, 2024
May 18, 2023
Dec. 28, 2024
Dec. 30, 2023
Private Placement        
Related Party Transaction        
Issuance of shares (in shares)   3,375,000    
Affiliated Entity        
Related Party Transaction        
Payables to related parties     $ 2.8 $ 3.2
Affiliated Entity | Private Placement        
Related Party Transaction        
Issuance of shares (in shares) 11,635,224      
Share price (in usd per share) $ 19.3409      
Equity Method Investees        
Related Party Transaction        
Payables to related parties     $ 0.1 $ 0.2
v3.25.0.1
Related party transactions - Purchases with Equity Method Investees (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Equity Method Investees      
Related Party Transaction      
Purchases $ (16.0) $ (18.4) $ (16.7)
v3.25.0.1
Related party transactions - Transactions with Non-Gates Entities (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Related Party Transaction      
Net sales $ 3,408.2 $ 3,570.2 $ 3,554.2
Affiliated Entity      
Related Party Transaction      
Net sales 42.6 44.1 59.0
Purchases (14.6) (15.4) $ (18.4)
Receivables 3.7 3.2  
Payables $ (2.8) $ (3.2)  
v3.25.0.1
Commitments and contingencies - Narratives (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Long-term Purchase Commitment    
Cash surrender value $ 934.3 $ 966.5
Underlying loan for life assurance policy 932.2 958.1
Estimated receivable from policy 2.1 8.3
Property, Plant and Equipment    
Long-term Purchase Commitment    
Remaining minimum amount committed 8.6 8.7
Computer software    
Long-term Purchase Commitment    
Remaining minimum amount committed 6.1 1.8
Inventories    
Long-term Purchase Commitment    
Remaining minimum amount committed $ 62.1 $ 34.9
v3.25.0.1
Commitments and contingencies - Allowance for Expected Credit Losses (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss      
Balance at beginning of year $ 15.7 $ 4.2 $ 5.1
Current period provision for expected credit losses 5.8 12.6 0.6
Write-offs charged against allowance 3.4    
Write-offs charged against allowance   (1.1) (1.3)
Foreign currency translation (0.5) 0.0 (0.2)
Balance at end of year $ 24.4 $ 15.7 $ 4.2