Gates Industrial Corp plc Leases Disclosure
| For the year ended | |||||||||||||||||
(dollars in millions) | December 31, 2025 | December 28, 2024 | December 30, 2023 | ||||||||||||||
| Lease expenses | |||||||||||||||||
| Operating lease expenses | $ | 37.6 | $ | 36.2 | $ | 33.9 | |||||||||||
| Finance lease expenses: | |||||||||||||||||
| —Finance lease amortization expenses | 1.4 | 1.3 | 1.2 | ||||||||||||||
| —Interest on lease liabilities | 0.2 | 0.1 | 0.1 | ||||||||||||||
| Short-term lease expenses | 8.4 | 8.0 | 8.2 | ||||||||||||||
| Variable lease expenses | 1.5 | 6.8 | 6.5 | ||||||||||||||
| Total lease expenses | $ | 49.1 | $ | 52.4 | $ | 49.9 | |||||||||||
| Other information | |||||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 18.7 | $ | 47.6 | $ | 10.2 | |||||||||||
| Assets obtained in exchange for new finance lease liabilities | $ | 2.1 | $ | 1.7 | $ | 0.3 | |||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| —Operating cash flows from finance leases | $ | 0.2 | $ | 0.1 | $ | — | |||||||||||
| —Operating cash flows from operating leases | 35.3 | 33.4 | 30.7 | ||||||||||||||
| —Financing cash flows from finance leases | 1.2 | 1.1 | 1.0 | ||||||||||||||
| $ | 36.7 | $ | 34.6 | $ | 31.7 | ||||||||||||
| Weighted-average remaining lease term — finance leases | 3.6 years | 2.9 years | 2.5 years | ||||||||||||||
| Weighted-average remaining lease term — operating leases | 7.6 years | 8.3 years | 7.9 years | ||||||||||||||
| Weighted-average discount rate — finance leases | 5.8 | % | 7.2 | % | 4.2 | % | |||||||||||
| Weighted-average discount rate — operating leases | 7.5 | % | 7.5 | % | 5.3 | % | |||||||||||
(dollars in millions) | Operating leases | Finance leases | |||||||||
| Next 12 months | $ | 34.0 | $ | 2.0 | |||||||
| Year 2 | 31.1 | 0.7 | |||||||||
| Year 3 | 26.7 | 0.4 | |||||||||
| Year 4 | 22.1 | 0.4 | |||||||||
| Year 5 | 16.6 | 0.1 | |||||||||
| Year 6 and beyond | 68.1 | — | |||||||||
| Total lease payments | 198.6 | 3.6 | |||||||||
| Interest | (50.7) | (0.3) | |||||||||
| Total present value of lease liabilities | $ | 147.9 | $ | 3.3 | |||||||
| As of December 31, 2025 | As of December 28, 2024 | ||||||||||||||||||||||
(dollars in millions) | Operating leases | Finance leases | Operating leases | Finance leases | |||||||||||||||||||
| Right-of-use assets | $ | 137.1 | $ | 4.3 | $ | 139.4 | $ | 3.2 | |||||||||||||||
| $ | 25.1 | $ | 1.6 | $ | 24.5 | $ | 0.7 | ||||||||||||||||
| 122.8 | 1.7 | 125.8 | 1.5 | ||||||||||||||||||||
| Total lease liabilities | $ | 147.9 | $ | 3.3 | $ | 150.3 | $ | 2.2 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 6, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 10, 2021 | |
| 2019 | Feb 21, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.