Gates Industrial Corp plc Goodwill & Intangibles Disclosure
(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 translation | 23.3 | 34.3 | 57.6 | ||||||||||||||
| As of December 30, 2023 | 1,338.5 | 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 | |||||||||||
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 Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.