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 losses	5.8		12.6		0.6
Write-offs charged against allowance	3.4		(1.1)		(1.3)
Foreign currency translation	(0.5)		—		(0.2)
Balance at end of year	$	24.4	$	15.7	$	4.2

Historical Timeline

Fiscal Year	Filed
2024	Feb 6, 2025	Showing above
2023	Feb 8, 2024

2022	Feb 9, 2023

2021	Feb 10, 2021

2019	Feb 21, 2020

2018	Feb 14, 2019

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Gates Industrial Corp plc Commitments Disclosure

Historical Timeline

About Commitments Disclosures

Other Available Disclosures