Gates Industrial (GTES) 10-K 9 Feb 23 2022 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Feb. 06, 2023	Jul. 02, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
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
Entity Shell Company	false
Entity Public Float			$ 1,062.2
Entity Common Stock, Shares Outstanding		282,603,630
Documents Incorporated by Reference	Portions of the registrant's definitive Proxy Statement to be delivered to stockholders in connection with its 2023 annual general meeting of shareholders are incorporated by reference into Part III.
Entity Central Index Key	0001718512
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	Deloitte & Touche LLP
Auditor Firm ID	34
Auditor Location	Denver, Colorado

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Statement [Abstract]
Net sales	$ 3,554.2	$ 3,474.4	$ 2,793
Cost of sales	2,303.6	2,135.2	1,758.3
Gross profit	1,250.6	1,339.2	1,034.7
Selling, general and administrative expenses	853.7	852.7	776.9
Transaction-related expenses	2.1	3.7	5.2
Asset impairments	1.1	0.6	5.2
Restructuring expenses	9.5	7.4	37.3
Other operating expense (income)	0.2	(9.3)	(1)
Operating income from continuing operations	384	484.1	211.1
Interest expense	139.4	133.5	154.3
Other (income) expense	(13.2)	0.9	(14.2)
Income from continuing operations before taxes	257.8	349.7	71
Income tax expense (benefit)	14.9	18.4	(19.3)
Net income from continuing operations	242.9	331.3	90.3
Loss on disposal of discontinued operations, net of tax, respectively, of $0, $0 and $0	0.4	0	0.3
Net income	242.5	331.3	90
Less: non-controlling interests	21.7	34.2	10.6
Net income attributable to shareholders	$ 220.8	$ 297.1	$ 79.4
Basic
Earnings per share from continuing operations (in usd per share)	$ 0.78	$ 1.02	$ 0.27
Earnings per share from discontinued operations (in usd per share)	0	0	0
Earnings per share (in usd per share)	0.78	1.02	0.27
Diluted
Earnings per share from continuing operations (in usd per share)	0.77	1	0.27
Earnings per share from discontinued operations (in usd per share)	0	0	0
Earnings per share (in usd per share)	$ 0.77	$ 1	$ 0.27

Consolidated Statements of Op_2

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Statement [Abstract]
(Gain) loss on disposal of discontinued operations, tax	$ 0	$ 0	$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Net income	$ 242.5	$ 331.3	$ 90
Foreign currency translation:
—Net translation (loss) gain on foreign operations, net of tax expense, respectively, of $(2.5), $0 and $0	(159.5)	(105.6)	113.1
—Gain (loss) on net investment hedges, net of tax benefit (expense), respectively, of $8.6, $0 and $(0.1)	2.9	33.8	(41.9)
Total foreign currency translation movements	(156.6)	(71.8)	71.2
Cash flow hedges (interest rate derivatives):
—Gain (loss) arising in the period, net of tax (expense) benefit, respectively, of $(15.4), $(2.9) and $5.6	46.3	8.8	(23.5)
—Reclassification to net income, net of tax expense, respectively, of $0.0, $(1.4), $(3.5) and $(5.4)	10.4	16.2	10.2
Total cash flow hedges movements	56.7	25	(13.3)
Post-retirement benefits:
—Current year actuarial movements, net of tax (expense) benefit, respectively, of $11.0, $(5.9) and $(5.8)	(33.4)	21.6	24.8
—Reclassification of prior year actuarial movements to net income, net of tax benefit, respectively, of $0.5, $0 and $0.5	(0.5)	0.1	(1.8)
Total post-retirement benefits movements	(33.9)	21.7	23
Other comprehensive (loss) income	(133.8)	(25.1)	80.9
Comprehensive income for the period	108.7	306.2	170.9
Comprehensive income attributable to shareholders:
Comprehensive (loss) income attributable to parent	128.2	277.3	132.4
Comprehensive (loss) income attributable to non-controlling interests	(19.5)	28.9	38.5
—Income arising from continuing operations
Comprehensive income attributable to shareholders:
Comprehensive (loss) income attributable to parent	128.6	277.3	132.7
—Loss arising from discontinued operations
Comprehensive income attributable to shareholders:
Comprehensive (loss) income attributable to parent	$ (0.4)	$ 0	$ (0.3)

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Foreign currency translation:
Net translation (loss) gain on foreign operations, tax	$ (2.5)	$ 0	$ 0
Gain (loss) on net investment hedges, tax	8.6	0	(0.1)
Cash flow hedges (interest rate derivatives):
Gain (loss) arising in the period, tax expense	(15.4)	(2.9)	5.6
Reclassification to net income, tax expense	(3.5)	(5.4)	(2.5)
Post-retirement benefits:
Current year actuarial movements, net of tax	11	(5.9)	(5.8)
Reclassification of prior year actuarial movements, tax	$ 0.5	$ 0	$ 0.5

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Current assets
Cash and cash equivalents	$ 578.4	$ 658.2
Trade accounts receivable, net	808.6	708.1
Inventories	656.2	682.6
Taxes receivable	13	19.1
Prepaid expenses and other assets	221.2	210.7
Total current assets	2,277.4	2,278.7
Non-current assets
Property, plant and equipment, net	637.5	670.3
Goodwill	1,981.1	2,063
Pension surplus	10.1	75.5
Intangible assets, net	1,490.4	1,642.2
Right-of-use assets	132.2	124.2
Taxes receivable	15.1	15.7
Deferred income taxes	600.3	639.3
Other non-current assets	47.5	24.1
Total assets	7,191.6	7,533
Current liabilities
Debt, current portion	36.6	38.1
Trade accounts payable	469.6	506.6
Taxes payable	23.5	34.1
Accrued expenses and other current liabilities	222.6	277.1
Total current liabilities	752.3	855.9
Non-current liabilities
Debt, less current portion	2,426.4	2,526.5
Post-retirement benefit obligations	76.2	106.2
Lease liabilities	121.9	116.4
Taxes payable	79.5	103.7
Deferred income taxes	192	283.7
Other non-current liabilities	99.7	59.2
Total liabilities	3,748	4,051.6
Commitments and contingencies (Note 22)
Shareholders’ equity
—Shares, par value of $0.01 each - authorized shares: 3,000,000,000; outstanding shares: 282,578,917 (January 1, 2022: authorized shares: 3,000,000,000; outstanding shares: 291,282,137)	2.8	2.9
—Additional paid-in capital	2,542.1	2,484.1
—Accumulated other comprehensive loss	(917.8)	(825.2)
—Retained earnings	1,482.9	1,437.9
Total shareholders’ equity	3,110	3,099.7
Non-controlling interests	333.6	381.7
Total equity	3,443.6	3,481.4
Total liabilities and equity	$ 7,191.6	$ 7,533

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Jan. 01, 2022
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)	282,578,917	291,282,137

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Cash flows from operating activities
Net income	$ 242.5	$ 331.3	$ 90
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	217.2	222.6	218.6
Foreign exchange and other non-cash financing expenses	5.8	33.2	18.9
Share-based compensation expense	44.3	24.6	19.8
Decrease in post-employment benefit obligations, net	(16)	(14.7)	(12.4)
Deferred income taxes	(79.7)	(94.3)	(47.7)
Asset impairments	2.6	2	6.6
Other operating activities	6.6	3.7	9.1
Changes in operating assets and liabilities, net of effects of acquisitions:
—(Increase) decrease in accounts receivable	(129.3)	(22.3)	9.7
—Decrease (increase) in inventories	2.9	(192.4)	(22.1)
—(Decrease) increase in accounts payable	(15.9)	99.6	28.6
—Decrease (increase) in prepaid expenses and other assets	50.3	(41.3)	6.8
—(Decrease) increase in taxes payable	(24.4)	38.7	(48.1)
—(Decrease) increase in other liabilities	(41.1)	(8.3)	31.2
Net cash provided by operating activities	265.8	382.4	309
Cash flows from investing activities
Purchases of property, plant and equipment	(77.6)	(77.7)	(58.2)
Purchases of intangible assets	(9.4)	(9.3)	(9.2)
Cash paid under corporate-owned life insurance policies	(11.6)	(11.2)	(10.9)
Cash received under corporate-owned life insurance policies	6	2.4	1.5
Other investing activities	1.9	9.8	(0.7)
Net cash used in investing activities	(90.7)	(86)	(77.5)
Cash flows from financing activities
Issuance of shares	15.9	4.6	3.1
Repurchase of shares	(175.9)	(10.6)	0
Proceeds from long-term debt	645	0	0
Payments of long-term debt	(676.9)	(91)	(331.2)
Debt issuance costs paid	(23.3)	(11.7)	(0.3)
Dividends paid to non-controlling interests	(28.7)	(26.6)	(19)
Other financing activities	(9.2)	(13.3)	(6.4)
Net cash used in financing activities	(253.1)	(148.6)	(353.8)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(1.5)	(11)	9.8
Net (decrease) increase in cash and cash equivalents and restricted cash	(79.5)	136.8	(112.5)
Cash and cash equivalents and restricted cash at the beginning of the period	660.9	524.1	636.6
Cash and cash equivalents and restricted cash at the end of the period	581.4	660.9	524.1
Supplemental schedule of cash flow information
Interest paid	118.7	121.2	135.7
Income taxes paid	117.8	83	60.4
Accrued capital expenditures	$ 1.9	$ 1	$ 1

Consolidated Statements of Shar

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 Dec. 28, 2019	$ 3,010.7	$ 2,651	$ 2.9	$ 2,434.5	$ (858.4)	$ 1,072	$ 359.7
Increase (Decrease) in Stockholders' Equity
Net income	90	79.4				79.4	10.6
Other comprehensive income (loss), net of tax	80.9	53			53	0	27.9
Total comprehensive (loss) income	170.9	132.4	0	0	53	79.4	38.5
—Issuance of shares	3.1	3.1		3.1
—Shares withheld for employee taxes	(0.3)	(0.3)		(0.3)
—Share-based compensation	19.6	19.5		19.5			0.1
—Dividends paid to non-controlling interests	(19)						(19)
Ending balance at Jan. 02, 2021	3,185	2,805.7	2.9	2,456.8	(805.4)	1,151.4	379.3
Increase (Decrease) in Stockholders' Equity
Net income	331.3	297.1				297.1	34.2
Other comprehensive income (loss), net of tax	(25.1)	(19.8)			(19.8)		(5.3)
Total comprehensive (loss) income	306.2	277.3	0	0	(19.8)	297.1	28.9
—Issuance of shares	4.6	4.6		4.6
—Shares withheld for employee taxes	(0.7)	(0.7)		(0.7)
—Repurchase and cancellation of shares	(10.6)	(10.6)				(10.6)
—Share-based compensation	23.5	23.4		23.4			0.1
—Dividends paid to non-controlling interests	(26.6)						(26.6)
Ending 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 of tax	(133.8)	(92.6)			(92.6)		(41.2)
Total comprehensive (loss) income	108.7	128.2	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	$ 2.8	$ 2,542.1	$ (917.8)	$ 1,482.9	$ 333.6

Background

Background	12 Months Ended
	Dec. 31, 2022
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”, “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 first-fit channels, throughout the world. Gates is comprised of two operating segments: Power Transmission and Fluid Power.

Significant accounting policies

Significant accounting policies	12 Months Ended
	Dec. 31, 2022
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, except for the adoption on the first day of our 2022 fiscal year of the following new Accounting Standard Update (“ASU”): • ASU 2021-10 “ Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” In November 2021, the Financial Accounting Standards Board (“FASB”) issued this ASU to increase the transparency of government assistance, including the disclosure of (i) the types of assistance, (ii) an entity’s accounting for the assistance, and (iii) the effect of the assistance on an entity’s financial statements. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy, including (i) information about the nature of the transactions and the related accounting policy used to account for them, (ii) the line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each line item, and (iii) significant terms and conditions of the transactions, including commitments and contingencies. The amendments are effective for fiscal years beginning after December 15, 2021. The adoption of this ASU did not have any significant impact on our consolidated financial statements. 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 31, 2022 and January 1, 2022 and the related consolidated statements of operations, comprehensive income, cash flows, and shareholders’ equity are presented for the years ended December 31, 2022 (“Fiscal 2022”), January 1, 2022 (“Fiscal 2021”) and January 2, 2021 (“Fiscal 2020”). 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. 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 2022 was $5.7 million, compared to a loss of $7.1 million in Fiscal 2021 and a loss of $7.7 million in Fiscal 2020. We also recognized net financing-related foreign currency transaction gains within other expenses (income) of $10.2 million during Fiscal 2022, compared to a loss of $7.6 million in Fiscal 2021 and a gain of $5.3 million in Fiscal 2020. 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 first-fit 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 2022, we recognized shipping and handling costs of $174.8 million, compared to $170.1 million in Fiscal 2021 and $137.2 million in Fiscal 2020. 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 $69.4 million in Fiscal 2022, compared to $70.7 million in Fiscal 2021 and $67.2 million in Fiscal 2020. 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 2022, we recognized advertising costs of $16.8 million , compared to $12.0 million in Fiscal 2021 and $6.7 million in Fiscal 2020. 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 31, 2022, inventories whose cost was determined on a LIFO basis represented 28.9% of the total carrying amount of inventories compared to 31.2% as of January 1, 2022. Inventories would have been $28.7 million and $9.3 million higher than reported as of December 31, 2022 and January 1, 2022, 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 2022, Fiscal 2021 or Fiscal 2020. 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 improvements Shorter 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 93% of the lease liability under non-cancellable leases as of December 31, 2022. 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 31, 2022, 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 sheet, 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 $3.0 million as of December 31, 2022, compared to $2.7 million and $2.7 million as of January 1, 2022 and January 2, 2021, 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. Global developments related to the COVID-19 pandemic and its impact on our customers’ ability to pay us continue to be closely monitored and taken into account in the determination of our expected credit loss estimates. 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 statement of cash flows. As of December 31, 2022, the collection of $108.2 million of our trade accounts receivable had been accelerated under this program, compared to the accelerated collection of $106.9 million as of January 1, 2022. We incurred costs in respect of this program of $4.9 million during Fiscal 2022, which are recorded under other (income) expense, and $1.4 million during Fiscal 2021. (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 awards 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 statement of operations and accrued interest and penalties are included under the related taxes payable line in the consolidated balance sheet. 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 31, 2022, including those resulting from the continuing impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by our assumptions and estimates.

Recent accounting pronouncement

Recent accounting pronouncements not yet adopted	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Recent accounting pronouncements not yet adopted	Recent accounting pronouncements not yet adoptedNone.

Segment information

Segment information	12 Months Ended
	Dec. 31, 2022
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 first-fit 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 31, January 1, January 2, Power Transmission $ 2,173.7 $ 2,216.3 $ 1,800.2 Fluid Power 1,380.5 1,258.1 992.8 Net sales $ 3,554.2 $ 3,474.4 $ 2,793.0 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, including between emerging and developed markets. The following table summarizes our net sales by key geographic region of origin: For the year ended December 31, 2022 January 1, 2022 January 2, 2021 (dollars in millions) Power Transmission Fluid Power Power Transmission Fluid Power Power Transmission Fluid Power U.S. $ 636.8 $ 733.3 $ 621.8 $ 615.5 $ 538.3 $ 513.9 North America, excluding U.S. 205.6 208.8 179.8 193.8 147.3 146.9 United Kingdom (“U.K.”) 45.1 68.9 50.2 58.3 44.3 28.2 EMEA (1) , excluding U.K. 598.3 200.0 640.6 198.8 487.4 151.0 East Asia and India 295.5 75.4 308.6 86.3 251.8 60.5 Greater China 300.3 44.4 344.2 67.8 279.5 66.9 South America 92.1 49.7 71.1 37.6 51.6 25.4 Net sales $ 2,173.7 $ 1,380.5 $ 2,216.3 $ 1,258.1 $ 1,800.2 $ 992.8 (1) Europe, Middle East and Africa (“EMEA”). The following table summarizes our net sales into emerging and developed markets: For the year ended (dollars in millions) December 31, January 1, January 2, Developed $ 2,281.4 $ 2,214.6 $ 1,787.8 Emerging 1,272.8 1,259.8 1,005.2 Net sales $ 3,554.2 $ 3,474.4 $ 2,793.0 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 (income) expenses, 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: • 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; • impairments of assets; • restructuring expenses, including severance-related expenses; and • fees paid to our private equity sponsor for monitoring, advisory and consulting services. Adjusted EBITDA by segment was as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Power Transmission $ 404.0 $ 500.6 $ 353.0 Fluid Power 276.6 235.2 153.6 Adjusted EBITDA $ 680.6 $ 735.8 $ 506.6 Reconciliation of net income from continuing operations to Adjusted EBITDA: For the year ended (dollars in millions) December 31, January 1, January 2, Net income from continuing operations $ 242.9 $ 331.3 $ 90.3 Income tax expense (benefit) 14.9 18.4 (19.3) Income from continuing operations before taxes 257.8 349.7 71.0 Interest expense 139.4 133.5 154.3 Other (income) expense (13.2) 0.9 (14.2) Operating income from continuing operations 384.0 484.1 211.1 Depreciation and amortization 217.2 222.6 218.6 Transaction-related expenses (1) 2.1 3.7 5.2 Asset impairments 1.1 0.6 5.2 Restructuring expenses 9.5 7.4 37.3 Share-based compensation expense 44.3 24.6 19.8 Sponsor fees (included in other operating expense) — — 1.9 Inventory impairments and adjustments (2) (included in cost of sales) 20.9 1.4 1.4 Severance expenses (included in cost of sales) 0.8 — 1.0 Severance expenses (included in SG&A) 0.5 0.7 8.0 Other items not directly related to current operations 0.2 (9.3) (2.9) Adjusted EBITDA $ 680.6 $ 735.8 $ 506.6 (1) 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. (2) Inventory impairments and adjustments include $19.4 million 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. E. Selected geographic information (dollars in millions) As of December 31, 2022 As of January 1, 2022 Property, plant and equipment, net by geographic location U.S. $ 166.5 $ 172.9 Rest of North America 125.8 127.1 U.K. 28.6 32.8 Rest of EMEA 160.7 151.3 East Asia and India 38.9 45.7 Greater China 100.1 124.8 South America 16.9 15.7 $ 637.5 $ 670.3 F. Information about major customers Gates has a significant concentration of sales in the U.S., which accounted for 39.6% of Gates’ net sales by destination from continuing operations during Fiscal 2022, compared to 36.3% during Fiscal 2021 and 39.0% during Fiscal 2020. During Fiscal 2022, Fiscal 2021 and Fiscal 2020, no single customer accounted for more than 10% of Gates’ net sales. Two customers of our North America businesses accounted for 15.3% and 8.4%, respectively, of our total trade accounts receivable balance as of December 31, 2022, compared to 13.9% and 10.0%, respectively, as of January 1, 2022. These concentrations are due to the extended payment terms common in the industry in which these businesses operate.

Restructuring and other strateg

Restructuring and other strategic initiatives	12 Months Ended
	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring and other strategic initiatives	Restructuring and other strategic initiatives Gates continues to undertake various restructuring and other strategic 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 strategic 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 31, January 1, January 2, Restructuring expenses: —Severance expenses $ 4.9 $ 0.7 $ 24.0 —Non-severance labor and benefit expenses 0.5 2.5 3.8 —Consulting expenses 1.8 2.2 2.1 —Other net restructuring expenses 2.3 2.0 7.4 9.5 7.4 37.3 Restructuring expenses in asset impairments: —Impairment of fixed and other assets 1.1 0.6 5.2 Restructuring expenses in cost of sales: —Impairment of inventory 1.5 1.4 1.4 Total restructuring expenses $ 12.1 $ 9.4 $ 43.9 Expenses related to other strategic initiatives: —Severance expenses included in cost of sales $ 0.8 $ — $ 1.0 —Severance expenses included in SG&A 0.5 0.7 8.0 Total expenses related to other strategic initiatives $ 1.3 $ 0.7 $ 9.0 Restructuring and other strategic initiatives 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 and other strategic initiative costs, including asset impairments, of $9.4 million were recognized during Fiscal 2021, including $3.4 million of primarily severance and other labor-related expenses related to our European reorganization involving office and distribution center closures or downsizings and the implementation of a regional shared service center, and $3.7 million of additional costs related to the closure in 2020 of a manufacturing facility in Korea, including impairment of fixed assets of $0.6 million. Also during Fiscal 2021, we incurred $1.4 million of inventory impairments (recognized in cost of sales), predominantly in North America as part of a strategic product line shift, and we recognized $1.0 million of expenses related to the consolidation of certain of our Middle East businesses. Partially offsetting these costs were gains of $3.1 million on the disposal of buildings in Korea and France that were no longer needed following the completion of certain restructuring initiatives. 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 strategic 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 31, January 1, January 2, Power Transmission $ 5.8 $ 5.6 $ 32.6 Fluid Power 6.3 3.8 11.3 Continuing operations $ 12.1 $ 9.4 $ 43.9 The following summarizes the reserve for restructuring expenses for the year ended December 31, 2022 and January 1, 2022, respectively: For the year ended (dollars in millions) December 31, January 1, Balance as of the beginning of the period $ 6.5 $ 17.9 Utilized during the period (8.1) (18.0) Charge for the period 9.6 8.0 Released during the period (0.1) (0.6) Foreign currency translation (0.4) (0.8) Balance as of the end of the period $ 7.5 $ 6.5 Restructuring reserves, which are expected to be utilized during 2023, are included in the consolidated balance sheet within the accrued expenses and other current liabilities line.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2022
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 31, January 1, January 2, U.K. $ (11.0) $ (32.9) $ (82.7) U.S. 17.1 63.5 (105.3) Other foreign 251.7 319.1 259.0 Income from continuing operations before income taxes $ 257.8 $ 349.7 $ 71.0 Income tax expense (benefit) on income from continuing operations analyzed by tax jurisdiction is as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Current tax U.K. $ (1.7) $ 4.2 $ (0.1) U.S. 42.0 12.9 5.4 Other foreign 54.3 95.6 23.1 Total current tax expense $ 94.6 $ 112.7 $ 28.4 Deferred income tax U.K. $ (2.5) $ (18.1) $ (19.2) U.S. (54.5) (61.7) 2.0 Other foreign (22.7) (14.5) (30.5) Total deferred income tax benefit (79.7) (94.3) (47.7) Income tax expense (benefit) $ 14.9 $ 18.4 $ (19.3) Reconciliation of the applicable statutory income tax rate to the reported effective income tax rate: For the year ended December 31, January 1, January 2, U.K. corporation tax rate 19.0 % 19.0 % 19.0 % Effect of: —State tax provision, net of Federal benefit (0.2 %) 1.4 % (0.9 %) —Provision for unrecognized income tax benefits (9.8 %) (0.4 %) (30.8 %) —Corporate owned life insurance (3.1 %) (2.4 %) (11.3 %) —Tax on international operations (1) 20.6 % (31.2 %) (4.4 %) —Manufacturing incentives (2) (3.9 %) (1.8 %) (4.4 %) —Change in valuation allowance (3) (20.6 %) 36.3 % (2.8 %) —Deferred income tax rate changes (0.1 %) (17.8 %) (3.8 %) —Currency exchange rate movements 1.9 % 0.8 % 8.2 % —Other permanent differences 2.0 % 1.4 % 4.0 % Reported effective income tax rate 5.8 % 5.3 % (27.2 %) (1) “Tax on international operations” includes U.S. tax on foreign earnings, unremitted earnings of foreign subsidiaries, effects of global funding structures, and effects of differences between statutory and foreign tax rates. Fiscal 2021 includes $129.9 million benefit for additional net deferred tax assets, primarily finite-lived net operating losses for 2019 in Luxembourg. Fiscal 2020 include the effects of tax law enactments other than deferred income tax rate changes and the impact of nondeductible transaction-related expenses. (2) “Manufacturing incentives” for Fiscal 2022 totaled $10.0 million, primarily related to $6.7 million of incentives generated in Türkiye and the U.S. during the year. (3) “Change in valuation allowance” is comprised primarily of: For the year ended Expense (benefit) December 31, January 1, January 2, Luxembourg finite-lived net operating losses $ — $ 126.8 $ — Luxembourg indefinite-lived net operating losses $ (14.8) $ 3.1 $ — U.S. foreign tax credits $ (39.9) $ (53.4) $ 5.4 Disallowed interest carryforwards $ — $ — $ (11.7) Rate change $ — $ 48.3 $ — Significant Events CARES Act On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted and signed into law in the U.S. in response to the COVID-19 pandemic. One of the provisions of this law is an increase to the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income for the 2019 and 2020 tax years. This modification significantly increased the current deductible interest expense of the Company for both years, which resulted in a cash benefit while increasing our effective tax rate through requirements to allocate and apportion interest expense for certain other tax purposes, including in determining our global intangible low-taxed income inclusion, deduction for foreign derived intangible income, and the utilization of foreign tax credits. Deferred income tax assets (liabilities) Deferred income tax assets (liabilities) recognized by the Company were as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 Deferred income tax assets: Accounts receivable $ 4.6 $ 3.8 Lease liabilities 39.2 37.2 Accrued expenses 45.3 36.2 Post-retirement benefit obligations 14.0 4.9 Compensation 18.8 19.9 Net operating losses 1,576.0 1,629.4 Capital losses 182.1 200.8 Credits 91.9 117.1 Interest 148.3 140.2 Other items — 4.4 $ 2,120.2 $ 2,193.9 Valuation allowances (1,273.5) (1,349.1) Total deferred income tax assets $ 846.7 $ 844.8 Deferred income tax liabilities: Inventories $ (11.2) $ (16.6) Property, plant and equipment (34.2) (37.8) Lease right-of-use assets (33.3) (31.3) Intangible assets (340.9) (382.5) Undistributed earnings (18.6) (21.0) Other items (0.2) — Total deferred income tax liabilities $ (438.4) $ (489.2) Net deferred income tax assets $ 408.3 $ 355.6 As of December 31, 2022, the Company had the following loss and credit carryforward amounts: • Gates had U.S. federal, U.K. and foreign operating tax losses amounting to $6,299.9 million and U.S. state operating tax losses amounting to $114.3 million. Operating losses of $3,128.4 million can be carried forward indefinitely and $3,285.8 million have expiration dates between 2023 and 2042. We recognized a related deferred income tax asset of $566.6 million after valuation allowance of $1,009.4 million; • Gates had U.S. federal and U.K. capital tax losses amounting to $730.0 million, of which $717.9 million can be carried forward indefinitely and $12.1 million expire in 2026. We recognized no related deferred income tax asset after valuation allowance of $182.1 million; • Gates had U.S. federal foreign tax credits amounting to $89.4 million, which expire between 2023 and 2027. We recognized a related deferred income tax asset of $34.6 million after valuation allowance of $54.8 million; and • Gates had U.S. federal, Luxembourg, Belgium and U.K. interest expense deductions which can be carried forward amounting to $609.1 million. Interest expense carried forward can be carried forward indefinitely. We recognized a related deferred tax asset of $122.0 million after valuation allowance of $26.3 million. As of December 31, 2022, income and withholding taxes in the various tax jurisdictions in which Gates operates have not been provided on approximately $1,660.4 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 $18.6 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 will 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 impact materially our financial statements. After weighing all of the evidence, giving more weight to the evidence that was objectively verifiable, we determined in Fiscal 2022 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. In Fiscal 2021, we determined that it was more likely than not that deferred income tax assets in the U.S. related to foreign tax credits totaling $53.4 million are realizable as a result of changes in estimates of taxable profits against which these credits can be utilized. In Fiscal 2020, the deferred tax assets above included $26.0 million of assets which have no expiration in these jurisdictions. As a result of changes in estimates of future taxable profits in the third quarter of Fiscal 2020, due primarily to anticipated changes to the composition of our intercompany financing arrangements related to proposed international tax law changes, our judgement changed regarding valuation allowances on these deferred tax assets. 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 31, January 1, January 2, At the beginning of the period $ 104.6 $ 121.6 $ 147.3 Increases for tax positions related to the current period 6.5 6.7 6.9 Increases for tax positions related to prior periods 0.4 0.7 0.5 Decreases for tax positions related to prior periods — (12.1) (18.9) Decreases related to settlements (2.8) — (14.0) Decreases due to lapsed statute of limitations (27.6) (7.2) (5.8) Foreign currency translation (5.1) (5.1) 5.6 At the end of the period $ 76.0 $ 104.6 $ 121.6 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. Such amounts represent a reasonable provision for income taxes ultimately expected to be paid and may need to be adjusted over time as more information becomes known. 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 $60.9 million, including all competent authority offsets. As of December 31, 2022, January 1, 2022, and January 2, 2021, Gates had accrued $13.7 million, $14.0 million, and $12.3 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 2022 relates to a change in underlying facts and lapses in statute of limitations. We believe that it is reasonably possible that a decrease of up to $11.5 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 multiple jurisdictions. As of December 31, 2022, Gates remains subject to examination in the US for tax years 2016 to 2021 and in other major jurisdictions for tax years 2008 to 2021.

Earnings per share

Earnings per share	12 Months Ended
	Dec. 31, 2022
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 31, January 1, January 2, Net income attributable to shareholders $ 220.8 $ 297.1 $ 79.4 Weighted average number of shares outstanding 284,063,083 291,623,523 290,681,615 Dilutive effect of share-based awards 3,523,127 5,670,552 1,434,349 Diluted weighted average number of shares outstanding 287,586,210 297,294,075 292,115,964 Number of anti-dilutive shares excluded from diluted earnings per share calculation 7,538,260 3,981,424 5,257,654 Basic earnings per share $ 0.78 $ 1.02 $ 0.27 Diluted earnings per share $ 0.77 $ 1.00 $ 0.27

Inventories

Inventories	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories (dollars in millions) As of December 31, 2022 As of January 1, 2022 Raw materials and supplies $ 195.9 $ 199.6 Work in progress 42.3 43.4 Finished goods 418.0 439.6 Total inventories $ 656.2 $ 682.6

Property, plant and equipment

Property, plant and equipment	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property, plant and equipment	Property, plant and equipment (dollars in millions) As of December 31, 2022 As of January 1, 2022 Cost Land and buildings $ 321.4 $ 329.2 Machinery, equipment and vehicles 884.6 873.3 Assets under construction 100.9 81.0 1,306.9 1,283.5 Less: Accumulated depreciation and impairment (669.4) (613.2) Total $ 637.5 $ 670.3 During Fiscal 2022, the depreciation expense in relation to the above assets was $88.8 million, compared to $90.0 million during Fiscal 2021 and $89.3 million during Fiscal 2020. During Fiscal 2022, impairments of property, plant and equipment of $0.2 million were recognized, compared to $0.6 million in Fiscal 2021, and $5.2 million in Fiscal 2020. Property, plant and equipment includes assets held under finance leases with a carrying amount of $3.5 million as of December 31, 2022, compared to $4.1 million as of January 1, 2022. 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.

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill (dollars in millions) Power Fluid Total Cost and carrying amount As of January 2, 2021 $ 1,434.4 $ 685.8 $ 2,120.2 Foreign currency translation (46.3) (10.9) (57.2) As of January 1, 2022 1,388.1 674.9 2,063.0 Foreign currency translation (72.9) (9.0) (81.9) As of December 31, 2022 $ 1,315.2 $ 665.9 $ 1,981.1

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets As of December 31, 2022 As of January 1, 2022 (dollars in millions) Cost Accumulated Net Cost Accumulated Net Finite-lived: —Customer relationships $ 1,973.7 $ (993.2) $ 980.5 $ 2,031.7 $ (901.6) $ 1,130.1 —Technology 90.4 (89.6) 0.8 90.9 (89.4) 1.5 —Capitalized software 105.4 (65.7) 39.7 97.8 (56.6) 41.2 2,169.5 (1,148.5) 1,021.0 2,220.4 (1,047.6) 1,172.8 Indefinite-lived: —Brands and trade names 513.4 (44.0) 469.4 513.4 (44.0) 469.4 Total intangible assets $ 2,682.9 $ (1,192.5) $ 1,490.4 $ 2,733.8 $ (1,091.6) $ 1,642.2 During Fiscal 2022, the amortization expense recognized in respect of intangible assets was $128.4 million, compared to $132.6 million for Fiscal 2021 and $129.3 million for Fiscal 2020. In addition, movements in foreign currency exchange rates resulted in a decrease in the net carrying value of total intangible assets of $32.9 million in Fiscal 2022, compared to a decrease of $24.3 million in Fiscal 2021. The amortization expense for the next five years is estimated to be as follows: (dollars in millions) Total Fiscal year: —2023 $ 128.7 —2024 $ 127.8 —2025 $ 122.0 —2026 $ 121.1 —2027 $ 120.5

Leases

Leases	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Leases	Leases For the year ended ( dollars in millions ) December 31, January 1, January 2, Lease expenses Operating lease expenses $ 30.5 $ 31.5 $ 29.9 Finance lease expenses: —Finance lease amortization expenses 1.2 1.1 0.9 —Interest on lease liabilities 0.1 0.1 0.1 Short-term lease expenses 7.2 6.7 5.8 Variable lease expenses 6.0 7.9 7.0 Total lease expenses $ 45.0 $ 47.3 $ 43.7 Other information Right-of-use assets obtained in exchange for new operating lease liabilities $ 34.9 $ 29.9 $ 17.7 Assets obtained in exchange for new finance lease liabilities $ 0.8 $ 1.5 $ 2.0 Gain on sale and leaseback transactions, net $ — $ (9.3) $ — 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 leases 27.6 30.1 30.3 —Financing cash flows from finance leases 1.3 1.2 1.0 $ 29.0 $ 31.4 $ 31.3 Weighted-average remaining lease term — finance leases 2.9 years 4.0 years 5.3 years Weighted-average remaining lease term — operating leases 8.5 years 9.0 years 9.4 years Weighted-average discount rate — finance leases 3.2 % 2.5 % 3.0 % Weighted-average discount rate — operating leases 5.4 % 5.1 % 5.5 % Maturity analysis of liabilities ( dollars in millions ) Operating leases Finance leases Next 12 months $ 29.2 $ 1.1 Year 2 24.7 0.7 Year 3 22.6 0.5 Year 4 17.6 0.2 Year 5 15.7 — Year 6 and beyond 68.6 — Total lease payments 178.4 2.5 Interest (34.1) (0.1) Total present value of lease liabilities $ 144.3 $ 2.4 Balance sheet presentation of leases as of December 31, 2022 and January 1, 2022 As of December 31, 2022 As of January 1, 2022 ( dollars in millions ) Operating leases Finance leases Operating leases Finance leases Right-of-use assets $ 132.2 $ 3.5 $ 124.2 $ 4.1 Short-term lease liabilities (included in “Accrued expenses and other current liabilities”) $ 24.0 $ 0.8 $ 20.9 $ 1.1 Long-term lease liabilities 120.3 1.6 114.2 2.2 Total lease liabilities $ 144.3 $ 2.4 $ 135.1 $ 3.3 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 2022 was $22.9 million, compared to $23.7 million and $22.8 million during Fiscal 2021 and Fiscal 2020, 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 31, January 1, January 2, Lease expenses Operating lease expenses $ 30.5 $ 31.5 $ 29.9 Finance lease expenses: —Finance lease amortization expenses 1.2 1.1 0.9 —Interest on lease liabilities 0.1 0.1 0.1 Short-term lease expenses 7.2 6.7 5.8 Variable lease expenses 6.0 7.9 7.0 Total lease expenses $ 45.0 $ 47.3 $ 43.7 Other information Right-of-use assets obtained in exchange for new operating lease liabilities $ 34.9 $ 29.9 $ 17.7 Assets obtained in exchange for new finance lease liabilities $ 0.8 $ 1.5 $ 2.0 Gain on sale and leaseback transactions, net $ — $ (9.3) $ — 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 leases 27.6 30.1 30.3 —Financing cash flows from finance leases 1.3 1.2 1.0 $ 29.0 $ 31.4 $ 31.3 Weighted-average remaining lease term — finance leases 2.9 years 4.0 years 5.3 years Weighted-average remaining lease term — operating leases 8.5 years 9.0 years 9.4 years Weighted-average discount rate — finance leases 3.2 % 2.5 % 3.0 % Weighted-average discount rate — operating leases 5.4 % 5.1 % 5.5 % Maturity analysis of liabilities ( dollars in millions ) Operating leases Finance leases Next 12 months $ 29.2 $ 1.1 Year 2 24.7 0.7 Year 3 22.6 0.5 Year 4 17.6 0.2 Year 5 15.7 — Year 6 and beyond 68.6 — Total lease payments 178.4 2.5 Interest (34.1) (0.1) Total present value of lease liabilities $ 144.3 $ 2.4 Balance sheet presentation of leases as of December 31, 2022 and January 1, 2022 As of December 31, 2022 As of January 1, 2022 ( dollars in millions ) Operating leases Finance leases Operating leases Finance leases Right-of-use assets $ 132.2 $ 3.5 $ 124.2 $ 4.1 Short-term lease liabilities (included in “Accrued expenses and other current liabilities”) $ 24.0 $ 0.8 $ 20.9 $ 1.1 Long-term lease liabilities 120.3 1.6 114.2 2.2 Total lease liabilities $ 144.3 $ 2.4 $ 135.1 $ 3.3 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 2022 was $22.9 million, compared to $23.7 million and $22.8 million during Fiscal 2021 and Fiscal 2020, respectively. This is included in the change in prepaid expenses and other assets line in the consolidated statement of cash flows.

Derivative financial instrument

Derivative financial instruments	12 Months Ended
	Dec. 31, 2022
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 sheet. 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 31, 2022 As of January 1, 2022 (dollars in millions) Prepaid expenses and other assets Other Accrued expenses and other Other Net Prepaid expenses and other assets Other Accrued expenses and other Other Net Derivatives designated as hedging instruments: —Currency swaps $ 9.3 $ — $ — $ (45.2) $ (35.9) $ — $ — $ (19.8) $ — $ (19.8) —Interest rate caps — — — — — — — (1.3) (0.5) (1.8) —Interest rate swaps 33.3 32.7 (10.7) (22.1) 33.2 — 7.7 (12.9) (26.9) (32.1) Derivatives not designated as hedging instruments: —Currency forward contracts 2.2 — (1.4) — 0.8 2.9 — (0.6) — 2.3 $ 44.8 $ 32.7 $ (12.1) $ (67.3) $ (1.9) $ 2.9 $ 7.7 $ (34.6) $ (27.4) $ (51.4) 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 operations. As of December 31, 2022 and January 1, 2022, the notional principal amount of these contracts was €756.1 million and €254.5 million, respectively. 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. Concurrent with the refinancing transactions, we executed additional cross currency swaps that have been designated as net investment hedges of certain of our European operations, 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 the term of our existing cross currency swaps with notional amount of €254.5 million that originally matured in March 2022, to now mature on March 31, 2027. The fair value (losses) gains 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 31, January 1, January 2, Net fair value (losses) gains recognized in OCI in relation to: —Euro-denominated debt $ 10.6 $ 12.4 $ (15.5) —Designated cross currency swaps (16.3) 21.4 (26.3) Total net fair value (losses) gains $ (5.7) $ 33.8 $ (41.8) During Fiscal 2022, a net gain of $5.8 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 $1.8 million and $3.7 million during Fiscal 2021 and Fiscal 2020, 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. In November 2022, we executed additional pay-fixed, receive-floating interest rate swaps to hedge the cash flow risk of interest rate on our new U.S. Dollar debt, as further discussed in Note 15. These additional interest rates swaps have a notional amount of $385.0 million, and mature on November 16, 2027. These instruments are all designated as cash flow hedges. As of December 31, 2022 and January 1, 2022, we held pay-fixed, receive-floating interest rate swaps with an aggregate notional amount of $1,255.0 million and $870.0 million, respectively. The existing interest rate swaps with notional amount of $870.0 million run from June 30, 2020 through June 30, 2025, while the new interest rate swaps of $385.0 million notional amount have the contract term from November 16, 2022 to November 16, 2027. Our interest rate caps involve the receipt of variable rate payments from a counterparty if interest rates rise above the strike rate on the contract in exchange for a premium. As of January 1, 2022, the notional amount of our interest rate caps outstanding was €425.0 million, covering the period from July 1, 2019 to June 30, 2023. During August 2022, we early terminated our 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 31, January 1, January 2, Movement recognized in OCI in relation to: —Fair value gain (loss) on cash flow hedges $ 61.7 $ 11.7 $ (29.1) —Amortization to net income of prior period fair value losses 17.9 17.9 9.1 —Reclassification from OCI to net income (4.0) 3.7 3.6 Total movement $ 75.6 $ 33.3 $ (16.4) As of December 31, 2022, we expect to reclassify an estimated $24.4 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 31, 2022 and January 1, 2022, there were no outstanding currency swaps. As of December 31, 2022, the notional amount of outstanding currency forward contracts that are used to manage operational foreign exchange exposures was $150.5 million, compared to $171.9 million as of January 1, 2022. The fair value gains (losses) 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 31, January 1, January 2, Fair value gains (losses) recognized in relation to: —Currency forward contracts recognized in SG&A $ 6.3 $ 5.1 $ (1.9) —Currency swaps recognized in other expenses — — 0.4 Total $ 6.3 $ 5.1 $ (1.5)

Fair value measurement

Fair value measurement	12 Months Ended
	Dec. 31, 2022
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 31, 2022 As of January 1, 2022 (dollars in millions) Carrying amount Fair value Carrying amount Fair value Current $ 36.6 $ 36.2 $ 38.1 $ 37.9 Non-current 2,426.4 2,408.4 2,526.5 2,553.0 $ 2,463.0 $ 2,444.6 $ 2,564.6 $ 2,590.9 Debt is comprised principally of borrowings under the secured credit facilities and the unsecured senior notes. Loans under the secured credit facilities pay interest at floating rates, subject to a 0.75% LIBOR floor and a 0.50% Term SOFR floor on the two dollar term loans as 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 31, 2022 Derivative assets $ — $ 77.5 $ 77.5 Derivative liabilities $ — $ (79.4) $ (79.4) As of January 1, 2022 Equity investments $ 0.6 $ — $ 0.6 Derivative assets $ — $ 10.6 $ 10.6 Derivative liabilities $ — $ (62.0) $ (62.0) Equity investments represent equity securities that are traded in an active market and therefore are measured using quoted prices in an active market. Derivative assets and liabilities included in Level 2 represent foreign currency exchange forward and swap contracts, and interest rate derivative contracts. 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 2022, an impairment of fixed and other assets of $1.1 million was recognized in relation to the suspension of our operations in Russia. No significant impairment was recognized during Fiscal 2021. During Fiscal 2020, impairments of property, plant and equipment of $5.2 million were recognized in relation to restructuring and other strategic initiatives, primarily the closure of our manufacturing facility in Korea.

Debt

Debt	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt (dollars in millions) As of December 31, 2022 As of January 1, 2022 Secured debt: —Dollar Term Loans $ 1,923.4 $ 1,363.7 —Euro Term Loan — 647.5 Unsecured debt: —6.25% Dollar Senior Notes due 2026 568.0 568.0 Total principal of debt 2,491.4 2,579.2 Deferred issuance costs (45.5) (31.5) Accrued interest 17.1 16.9 Total carrying value of debt 2,463.0 2,564.6 Debt, current portion 36.6 38.1 Debt, less current portion $ 2,426.4 $ 2,526.5 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: —2023 $ 19.5 —2024 19.5 —2025 19.5 —2026 587.5 —2027 1,300.5 Thereafter 544.9 $ 2,491.4 Debt issuances and redemptions During March 2022, we drew $70.0 million under our asset-backed revolving credit facility to partially fund the purchase of shares under our share repurchase program, as discussed further in Note 19 below. As of December 31, 2022, we paid down the borrowings on the asset-backed revolver and have no remaining outstanding balance. On November 16, 2022, we issued a new tranche of $575.0 million of dollar denominated term loans (the “New Dollar Term Loans”) pursuant to an amendment to the credit agreement governing our term loan facilities, using the proceeds to extinguish the entire outstanding principal balance of €563.8 million under our Euro Term Loan facility (the “Euro Term Loan”) plus €1.0 million accrued interest. The New Dollar Term Loans have substantially similar terms as the Existing Dollar Term Loans (as defined herein), bearing interest at the borrower’s option at either Term SOFR (as defined in the credit agreement) plus 3.50% margin per annum, subject to a 0.50% per annum Term SOFR floor, or at the base rate plus 2.50% per annum, subject to a 1.50% per annum base rate floor. The New Dollar Term Loans require scheduled quarterly amortization payments of 1% per annum based on the initial aggregate principal amount and mature in November 2029. The New Dollar Term Loans require a prepayment premium in connection with certain repricing transactions occurring within six months following the closing of the amendment. Issuance discount and costs totaling approximately $23.2 million related to the issuance of the New Dollar Term Loans have been deferred and will be amortized to interest expense over the remaining term of the related borrowings using the effective interest method. The repayment of Euro Term Loan resulted in the accelerated recognition of $2.2 million deferred financing costs (recognized in interest expense). During June 2021, we made a principal debt repayment of €58.7 million ($69.5 million) against our Euro Term Loan facility. As a result of this repayment, we accelerated the recognition of $0.4 million of deferred issuance costs (recognized in interest expense). On December 31, 2020, we made a principal debt repayment of $300.0 million against our Dollar Term Loan facility. As a result of this repayment, we accelerated the recognition of $3.7 million of deferred financing costs (recognized in interest expense). Dollar and Euro Term Loans Our secured credit facilities consist of two loans (collectively, the “Dollar Term Loans”), one of which was drawn on July 3, 2014 (the “Existing Dollar Term Loans”), and the New Dollar Term Loans drawn on November 16, 2022 as described above. These term loan facilities bear interest at a floating rate, which for U.S. dollar debt can be either a base rate as defined in the credit agreement plus an applicable margin, or at our option, LIBOR or Term SOFR (as applicable) plus an applicable margin. The New Dollar Term Loans mature on November 16, 2029. On February 24, 2021, we made amendments to the Existing Dollar Term Loans’ credit agreement, including extending the maturity date of the Existing Dollar Term Loans, from March 31, 2024 to March 31, 2027, reducing the floor applicable to the Existing Dollar Term Loans from 1.00% to 0.75% and modifying the applicable interest rate margin for the Existing Dollar Term Loans to include a 0.25% reduction if our consolidated total net leverage ratio (as defined in the credit agreement) is less than or equal to 3.75 times. In connection with these amendments, we paid accrued interest up to the date of the amendments of $3.7 million, in addition to fees of $8.6 million, of which $6.9 million qualified for deferral and will be amortized to interest expense over the new remaining term of the loan using the effective interest method. The Existing Dollar Term Loans’ interest rate is currently LIBOR, subject to a floor of 0.75%, plus a margin of 2.50%, and as of December 31, 2022, borrowings under this facility bore interest at a rate of 6.88% per annum. This margin reflects the 0.25% reduction described above, as the consolidated total net leverage ratio (as defined in the credit agreement) dropped below 3.75 times during the third quarter of Fiscal 2021. The Existing Dollar Term Loan interest rate is re-set on the last business day of each month. The New Dollar Term Loans’ interest rate is currently at Term SOFR, subject to a floor of 0.50%, plus a margin of 3.50%, and as of December 31, 2022, borrowings under this facility bore interest at a rate of 7.82% per annum. The New Dollar Term Loans’ interest rate is re-set on the last business day of each month. Both 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 2022, we made amortization payments against the Existing Dollar Term Loans, the Euro Term Loans, and New Dollar Term Loans of $13.8 million, $5.1 million, and $1.4 million, respectively. During Fiscal 2021, we made amortization payments against the Dollar Term Loans and the original Euro Term Loan of $13.8 million and $7.6 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 2022 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 2023. During the periods presented, foreign exchange gains were recognized in respect of the Euro Term Loans as summarized in the table below. As 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 (loss) were recognized in OCI. For the year ended (dollars in millions) December 31, January 1, January 2, Gain (loss) recognized in statement of operations $ 45.2 $ 38.2 $ (51.4) Gain (loss) recognized in OCI 10.6 12.4 (15.5) Total gain (loss) $ 55.8 $ 50.6 $ (66.9) The above net foreign exchange gain (loss) recognized in the other (income) expense line of the consolidated statement of operations have been substantially offset by net foreign exchange movements on Euro-denominated intercompany loans as part of our overall hedging strategy. A wholly-owned U.S. subsidiary of Gates Global LLC is the principal obligor under the Dollar Term Loans for U.S. federal income tax purposes and makes the payments due on this tranche of debt. As a result, interest received by lenders of this tranche of debt is U.S. source income. Unsecured Senior Notes As of December 31, 2022, we had $568.0 million of Dollar Senior Notes outstanding that were issued in November 2019. These notes are scheduled to mature on January 15, 2026 and bear interest at an annual fixed rate of 6.25% with semi-annual interest payments. We may redeem the Dollar 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 During the year commencing: —2023 101.563 % —2024 and thereafter 100.000 % Upon the occurrence of a change of control or a certain qualifying asset sale, the holders of the 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) or 100% (in the case of an asset sale) of their principal amount, plus accrued and unpaid interest. Revolving credit facility We have a secured revolving credit facility that provides for multi-currency revolving loans. On November 18, 2021, we amended the credit agreement governing this facility to, among other things, increase the size of the facility from $185.0 million to $250.0 million, extend the maturity date from January 29, 2023 to November 18, 2026 (subject to certain springing maturities related to our Unsecured Senior Notes if more than $500.0 million is outstanding 91 days prior to its maturity), and increase the letter of credit sub-facility from $20.0 million to $75.0 million. In connection with these amendments, we paid fees of $2.0 million, which have been deferred and will, together with existing deferred issuance costs related to this facility, be amortized to interest expense over the new term of the facility on a straight-line basis. As of both December 31, 2022 and January 1, 2022, there were no drawings for cash under the revolving credit facility and there were no letters of credit outstanding. Debt under the revolving credit facility bears interest at a floating rate, which can be either a base rate as defined in the credit agreement plus an applicable margin or, at our option, LIBOR, plus an applicable margin. Asset-backed revolver We also have a revolving credit facility backed by certain of our assets in North America. On November 18, 2021, we amended the credit agreement governing this facility to, among other things, reduce the maximum facility size from $325.0 million to $250.0 million ($214.7 million as of December 31, 2022, compared to $240.4 million as of January 1, 2022, based on the values of the secured assets on those dates), and extended the maturity date from January 29, 2023 to November 18, 2026 (subject to certain springing maturities related to our Unsecured Senior Notes if more than $500.0 million is outstanding 91 days prior to its maturity). The facility also allows for a letter of credit sub-facility of $150.0 million within the $250.0 million maximum. In connection with these amendments, we paid fees of $1.3 million, which have been deferred and will, together with existing deferred issuance costs related to this facility, be amortized to interest expense over the new term of the facility on a straight-line basis. As of both December 31, 2022 and January 1, 2022, there was no cash outstanding under the asset-backed revolver. We drew $70.0 million in March 2022 under this facility and fully paid down the balance during 2022. There were letters of credit outstanding of $25.8 million and $45.3 million, as of December 31, 2022 and January 1, 2022, respectively.

Accrued expenses and other liab

Accrued expenses and other liabilities	12 Months Ended
	Dec. 31, 2022
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 31, 2022 As of January 1, 2022 Accrued compensation $ 60.2 $ 80.2 Current portion of lease obligations 24.8 22.0 Derivative financial instruments 79.4 62.0 Payroll and related taxes payable 18.9 21.9 VAT and other taxes payable 7.2 10.9 Warranty reserve 17.6 18.7 Restructuring reserve 7.5 6.5 Workers’ compensation reserve 8.0 7.9 Other accrued expenses and other liabilities 98.7 106.2 $ 322.3 $ 336.3 The above liabilities are presented in Gates’ balance sheet as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 —Accrued expenses and other current liabilities $ 222.6 $ 277.1 —Other non-current liabilities 99.7 59.2 $ 322.3 $ 336.3 Warranty reserves Changes in warranty reserves (included in accrued expenses and other liabilities) were as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Balance at the beginning of the period $ 18.7 $ 19.8 $ 17.7 Charge for the period 10.8 10.3 11.8 Utilized during the period (10.9) (9.6) (9.5) Released during the period (0.3) (1.9) (0.7) Foreign currency translation (0.7) 0.1 0.5 Balance at the end of the period $ 17.6 $ 18.7 $ 19.8 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 2023, 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.

Post-retirement benefits

Post-retirement benefits	12 Months Ended
	Dec. 31, 2022
Postemployment Benefits [Abstract]
Post-retirement benefits	Post-retirement benefits A. Defined contribution pension plans Gates provides defined contribution pension 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 2022, the expense recognized by Gates in respect of defined contribution pension plans was $20.2 million, compared to $20.6 million in Fiscal 2021 and $19.0 million in Fiscal 2020. B. Defined benefit pension plans Gates operates 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 operated by Gates 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) asset recognized in respect of defined benefit pension plans is presented in the balance sheet as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 Pension surplus $ 10.1 $ 75.5 Accrued expenses and other current liabilities (2.4) (2.6) Post-retirement benefit obligations (50.9) (64.2) Net funded status $ (43.2) $ 8.7 Plans whose projected benefit obligation was in excess of plan assets: —Aggregate projected benefit obligation $ 247.5 $ 341.4 —Aggregate fair value of plan assets $ 194.2 $ 274.6 Plans whose accumulated benefit obligation was in excess of plan assets: —Aggregate accumulated benefit obligation $ 243.4 $ 336.1 —Aggregate fair value of plan assets $ 194.2 $ 274.0 During Fiscal 2022, the net unfunded pension obligation increased by $51.9 million. This increase was driven primarily by an actual loss on plan assets in Fiscal 2022 of $217.5 million and interest on the benefit obligation of $15.2 million, partially offset by an actuarial gain of $180.6 million on remeasurement of the benefit obligation. 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 31, January 1, Benefit obligation at the beginning of the period $ 821.1 $ 905.9 Employer service cost 3.3 4.3 Plan participants’ contributions 0.1 0.1 Interest cost 15.2 13.4 Net actuarial gain (180.6) (43.4) Benefits paid (37.8) (47.6) Expenses paid from assets (1.3) (1.3) Curtailments and settlements (1.9) (1.6) Foreign currency translation (57.6) (8.7) Benefit obligation at the end of the period $ 560.5 $ 821.1 Accumulated benefit obligation $ 556.2 $ 816.3 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 31, January 1, Plan assets at the beginning of the period $ 829.8 $ 881.4 Actual loss on plan assets (217.5) (4.9) Employer contributions 9.2 11.3 Plan participants’ contributions 0.1 0.1 Settlements (1.9) (1.6) Benefits paid (37.8) (47.6) Expenses paid from assets (1.3) (1.3) Foreign currency translation (63.3) (7.6) Plan assets at the end of the period $ 517.3 $ 829.8 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 31, 2022 As of January 1, 2022 (dollars in millions) Quoted prices Significant Significant Total Quoted prices Significant Significant Total Collective investment trusts: Equity Securities $ — $ 106.7 $ — $ 106.7 $ — $ 145.3 $ — $ 145.3 Debt Securities —Corporate bonds — 22.1 — 22.1 — 240.1 — 240.1 —Government bonds — 93.0 — 93.0 — 199.6 — 199.6 Annuities and insurance — — 275.4 275.4 — 21.2 210.5 231.7 Other — 4.7 — 4.7 — 5.6 — 5.6 Cash and cash equivalents 15.4 — — 15.4 7.5 — — 7.5 Total $ 15.4 $ 226.5 $ 275.4 $ 517.3 $ 7.5 $ 611.8 $ 210.5 $ 829.8 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 31, January 1, Fair value at the beginning of the period $ 210.5 $ 239.4 Actual loss on plan assets (54.3) (13.0) Purchases 150.2 1.2 Contributions 0.4 — Impacts of benefits paid (11.9) (12.6) Settlements (0.7) (1.3) Foreign currency translation (18.8) (3.2) Fair value at the end of the period $ 275.4 $ 210.5 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 2023, Gates expects to contribute approximately $9.2 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: —2023 $ 42.0 —2024 $ 42.1 —2025 $ 40.9 —2026 $ 42.2 —2027 $ 41.7 —2028 through 2032 $ 203.8 Net periodic benefit cost Components of the net periodic benefit (income) cost for defined benefit pension plans relating to continuing operations were as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Employer service cost $ 3.3 $ 4.3 $ 5.6 Settlements and curtailments (0.2) 0.1 (2.1) Interest cost 15.2 13.4 18.3 Expected return on plan assets (21.7) (19.3) (22.0) Amortization of prior net actuarial loss 0.3 0.4 0.2 Amortization of prior service cost 0.9 1.0 0.8 Net periodic benefit (income) cost $ (2.2) $ (0.1) $ 0.8 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 31, January 1, January 2, Current period net actuarial loss (gain) $ 58.6 $ (19.1) $ (32.6) Amortization of prior net actuarial loss (0.3) (0.4) (0.2) Prior service cost — — 1.5 Amortization of prior service cost (0.9) (1.0) (0.8) Gain (loss) recognized due to settlements and curtailments 0.2 (0.1) 2.1 Pre-tax changes recognized in OCI other than foreign currency translation 57.6 (20.6) (30.0) Foreign currency translation (0.5) (0.3) 1.7 Total pre-tax changes recognized in OCI $ 57.1 $ (20.9) $ (28.3) Cumulative losses 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 31, January 1, January 2, Actuarial loss (gain) $ 29.4 $ (29.1) $ (9.5) Prior service costs 9.9 10.8 11.8 Pre-tax changes recognized in OCI other than foreign currency translation 39.3 (18.3) 2.3 Foreign currency translation (2.0) (1.5) (1.2) Cumulative total $ 37.3 $ (19.8) $ 1.1 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 31, 2022 As of January 1, 2022 Benefit obligation: —Discount rate 4.598 % 2.003 % —Rate of salary increase 3.511 % 3.095 % Net periodic benefit cost: —Discount rate 2.005 % 1.527 % —Rate of salary increase 3.105 % 3.032 % —Expected return on plan assets 2.881 % 2.380 % 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 cover, 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 31, 2022 As of January 1, 2022 Accrued expenses and other current liabilities $ 3.1 $ 4.0 Post-retirement benefit obligations 25.3 42.0 $ 28.4 $ 46.0 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 31, January 1, Benefit obligation at the beginning of the period $ 46.0 $ 56.7 Interest cost 1.2 1.2 Actuarial gain (13.9) (8.4) Benefits paid (3.3) (3.8) Plan amendments (0.5) — Foreign currency translation (1.1) 0.3 Benefit obligation at the end of the period $ 28.4 $ 46.0 Accumulated benefit obligation $ 28.4 $ 46.0 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 2023, Gates expects to contribute approximately $3.2 million to its other 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: —2023 $ 3.2 —2024 $ 3.1 —2025 $ 2.9 —2026 $ 2.8 —2027 $ 2.6 —2028 through 2032 $ 11.2 Net periodic benefit cost Components of the net periodic benefit (income) cost for other defined benefit plans were as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Interest cost $ 1.2 $ 1.2 $ 1.7 Amortization of prior net actuarial gain (1.8) (1.0) (1.0) Amortization of prior service credit (0.4) (0.4) (0.4) Net periodic benefit (income) cost $ (1.0) $ (0.2) $ 0.3 The net periodic benefit (income) cost 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 31, January 1, January 2, Current period net actuarial (gain) loss $ (13.9) $ (8.4) $ 0.3 Amortization of prior net actuarial gain 1.8 1.0 1.0 Prior service credit (0.5) — — Amortization of prior service credit 0.4 0.4 0.4 Pre-tax changes recognized in OCI other than foreign currency translation (12.2) (7.0) 1.7 Foreign currency translation 0.6 — — Total pre-tax changes recognized in OCI $ (11.6) $ (7.0) $ 1.7 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 31, January 1, January 2, Actuarial gains $ (35.5) $ (23.4) $ (16.0) Prior service credits (2.7) (2.6) (3.0) Other adjustments 0.2 0.2 0.2 Pre-tax changes recognized in OCI other than foreign currency translation (38.0) (25.8) (18.8) Foreign currency translation 0.4 (0.2) (0.2) Cumulative total $ (37.6) $ (26.0) $ (19.0) 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 obligation Net periodic benefit cost As of December 31, 2022 As of January 1, 2022 As of December 31, 2022 As of January 1, 2022 Discount rate 5.44 % 2.81 % 2.81 % 2.30 % The initial healthcare cost trend rate as of December 31, 2022, starts at 5.97%, compared to 5.74% as of January 1, 2022, with an ultimate trend rate of 4.85%, compared to 4.91% as of January 1, 2022, beginning in 2027.

Share-based compensation

Share-based compensation	12 Months Ended
	Dec. 31, 2022
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 2022, we recognized a charge of $44.3 million, compared to $24.6 million and $19.8 million during Fiscal 2021 and Fiscal 2020, 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. No new awards have been granted under this plan since 2017. The options are 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 our majority owners, who are various investment funds managed by affiliates of Blackstone Inc. (“Blackstone” or our “Sponsor”), 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 were required be 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 in the related grant agreements) occurred following the sale by Blackstone of a certain portion of their interest in Gates, resulting in the vesting of the Tier II and IV options as the specified investment returns related to these options had been met. In connection with this vesting, a one-time share-based compensation charge of $16.1 million was recognized. 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, the SAR equivalents of the Tier II and IV awards also vested in March 2022, resulting in a share-based compensation charge of $2.6 million. 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 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 31, 2022 Plan Number of Weighted average exercise price Outstanding at the beginning of the period: —Tier I 2014 Plan 2,752,700 $ 6.91 —Tier II 2014 Plan 3,577,470 $ 6.90 —Tier III 2014 Plan 3,577,470 $ 6.90 —Tier IV 2014 Plan 3,577,470 $ 10.35 —SARs Both plans 829,108 $ 9.31 —Share options 2018 Plan 3,254,097 $ 14.84 —Premium-priced options 2018 Plan 835,469 $ 18.88 18,403,784 $ 9.63 Granted during the period: —SARs 2018 Plan 62,055 $ 15.76 62,055 $ 15.76 Forfeited during the period: —Tier III 2014 Plan (188,157) $ 6.93 —SARs 2018 Plan (20,004) $ 14.11 —Share options 2018 Plan (110,381) $ 14.18 (318,542) $ 9.89 Expired during the period: —Tier III 2014 Plan (3,389,313) $ 6.90 —Tier IV 2014 Plan (79,760) $ 11.80 —SARs Both Plans (183,908) $ 7.55 —Share options 2018 Plan (134,837) $ 15.14 (3,787,818) $ 7.33 Exercised during the period: —Tier I 2014 Plan (231,527) $ 7.09 —Tier II 2014 Plan (887,919) $ 6.70 —Tier IV 2014 Plan (805,159) $ 9.84 —SARs Both Plans (4,164) $ 11.00 —Share options 2018 Plan (28,745) $ 13.42 (1,957,514) $ 8.15 Outstanding at the end of the period: —Tier I 2014 Plan 2,521,173 $ 6.89 —Tier II 2014 Plan 2,689,551 $ 6.97 —Tier III 2014 Plan — $ — —Tier IV 2014 Plan 2,692,551 $ 10.46 —SARs Both plans 683,087 $ 10.22 —Share options 2018 Plan 2,980,134 $ 14.86 —Premium-priced options 2018 Plan 835,469 $ 18.88 12,401,965 $ 10.59 Exercisable at the end of the period 10,881,483 $ 9.85 Vested and expected to vest at the end of the period 12,371,354 $ 10.57 As of December 31, 2022, the aggregate intrinsic value of options that were exercisable was $28.3 million, and these options had a weighted average remaining contractual term of 3.8 years. As of December 31, 2022, the aggregate intrinsic value of options that were vested or expected to vest was $28.3 million, and these options had a weighted average remaining contractual term of 4.2 years. As of December 31, 2022, the unrecognized compensation charge relating to the nonvested options was $1.5 million, which is expected to be recognized over a weighted-average period of 0.9 years. During Fiscal 2022, cash of $15.9 million was received in relation to the exercise of vested options, compared to $4.6 million and $3.1 million during Fiscal 2021 and Fiscal 2020, respectively. The aggregate intrinsic value of options exercised during Fiscal 2022 was $1.0 million, compared to $4.8 million and $2.5 million during Fiscal 2021 and Fiscal 2020, respectively. Summary of movements in RSUs and PRSUs outstanding Year ended December 31, 2022 Number of Weighted average Outstanding at the beginning of the period: —RSUs 1,744,405 $ 13.98 —PRSUs 883,978 $ 16.98 2,628,383 $ 14.99 Granted during the period: —RSUs 2,823,325 $ 13.67 —PRSUs 425,670 $ 17.23 3,248,995 $ 14.14 Forfeited during the period: —RSUs (242,925) $ 14.63 —PRSUs (152,780) $ 21.11 (395,705) $ 17.13 Vested during the period: —RSUs (833,546) $ 13.83 —PRSUs (80,308) 16.46 (913,854) $ 14.06 Outstanding at the end of the period: —RSUs 3,491,259 $ 13.72 —PRSUs 1,076,560 $ 16.53 4,567,819 $ 14.38 As of December 31, 2022, the unrecognized compensation charge relating to nonvested RSUs and PRSUs was $31.3 million, which is expected to be recognized over a weighted average period of 1.9 years, subject, where relevant, to the achievement of the performance conditions described above. The total fair value of RSUs and PRSUs vested Fiscal 2022 was $12.9 million, compared to $12.3 million, and $3.1 million during Fiscal 2021 and Fiscal 2020 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 31, January 1, January 2, Weighted average grant date fair value: —SARs $ 6.94 $ 6.66 $ 4.59 —Share options n/a $ 6.66 $ 4.78 —Premium-priced options n/a $ 6.36 n/a —RSUs $ 13.67 $ 15.16 $ 11.79 —PRSUs $ 17.23 $ 17.92 $ 14.41 Inputs to the model: —Expected volatility - SARs 43.5 % 46.1 % 37.7 % —Expected volatility - share options n/a 46.1 % 37.6 % —Expected volatility - premium-priced options n/a 46.1 % n/a —Expected volatility - PRSUs 49.1 % 50.8 % 40.4 % —Expected option life for SARs (years) 6.0 6.0 6.0 —Expected option life for share options (years) n/a 6.0 6.0 —Expected option life for premium-priced options (years) n/a 6.0 n/a —Risk-free interest rate: SARs 1.91 % 0.95 % 1.25 % Share options n/a 0.95 % 1.33 % Premium-priced options n/a 0.95 % n/a PRSUs 1.72 % 0.27 % 1.29 %

Equity

Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Equity	Equity Movements in the Company’s number of shares in issue for the year ended December 31, 2022 and January 1, 2022, respectively, were as follows: For the year ended (number of shares) December 31, January 1, Balance as of the beginning of the period 291,282,137 290,853,067 Exercise of share options 1,953,350 518,600 Vesting of restricted stock units, net of withholding taxes 809,347 566,921 Shares repurchased and cancelled (11,465,917) (656,451) Balance as of the end of the period 282,578,917 291,282,137 The Company has one class of authorized and issued shares, with a par value of $0.01, and each share has equal voting rights. In November 2021, the Company established a repurchase program allowing for up to $200 million in authorized share repurchases. During Fiscal 2021, 656,451 shares were repurchased and cancelled under this program, at an aggregate cost of $10.6 million. On March 24, 2022, the Company, certain selling shareholders affiliated with Blackstone Inc. and Citigroup Global Markets Inc. (“Citigroup”) entered into an underwriting agreement pursuant to which the selling shareholders agreed to sell to Citigroup 5,000,000 ordinary shares of the Company at a price of $15.14 per ordinary share (the “Offering”). The selling shareholders also granted to Citigroup an option to purchase up to 750,000 additional ordinary shares of the Company; this option was exercised in full on March 25, 2022. The Company did not receive any proceeds from the sale of ordinary shares in the Offering, which closed on March 30, 2022. In connection with the Offering, the Company repurchased 8,000,000 ordinary shares through Citigroup from the same selling shareholders at a price of $15.14 per ordinary share for an aggregate consideration of $121.1 million, plus costs directly related to the transaction of $0.8 million. This repurchase was funded by cash on hand and a borrowing of $70.0 million under Gates’ asset-backed revolving credit facility. During Fiscal 2022, Gates repurchased a total of 11,465,917 ordinary shares at an aggregate cost of $174.7 million, and incurred an additional $1.2 million of costs related directly to these repurchases. All shares repurchased have been cancelled and the program expired on December 31, 2022.

Analysis of accumulated other c

Analysis of accumulated other comprehensive income (loss)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Analysis of accumulated other comprehensive income (loss)	Analysis of accumulated other comprehensive income (loss) Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (dollars in millions) Post- Cumulative Cash flow Accumulated OCI attributable to Non- Accumulated OCI As of December 28, 2019 $ (9.3) $ (812.3) $ (36.8) $ (858.4) $ (46.0) $ (904.4) Foreign currency translation 1.7 42.1 — 43.8 27.4 71.2 Cash flow hedges movements — — (13.3) (13.3) — (13.3) Post-retirement benefit movements 22.5 — — 22.5 0.5 23.0 Other comprehensive income (loss) 24.2 42.1 (13.3) 53.0 27.9 80.9 As of January 2, 2021 14.9 (770.2) (50.1) (805.4) (18.1) (823.5) Foreign currency translation (0.1) (66.5) — (66.6) (5.2) (71.8) Cash flow hedges movements — — 25.0 25.0 — 25.0 Post-retirement benefit movements 21.8 — — 21.8 (0.1) 21.7 Other comprehensive income (loss) 21.7 (66.5) 25.0 (19.8) (5.3) (25.1) 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, 2022 $ 0.6 $ (950.0) $ 31.6 $ (917.8) $ (64.6) $ (982.4)

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related party transactions	Related party transactions A. Entities affiliated with Blackstone In January 2018, Gates and Blackstone Management Partners L.L.C. (“BMP”) and Blackstone Tactical Opportunities Advisors L.L.C., each affiliates of our Sponsor (the “Managers”), entered into a Monitoring Fee Agreement (the “Monitoring Fee Agreement”). Under this agreement, which terminated in January 2020 upon the second anniversary of the closing date of the initial public offering of Gates, the Company and certain of its direct and indirect subsidiaries (collectively the “Monitoring Service Recipients”) engaged the Managers to provide certain monitoring, advisory and consulting services. In consideration of these oversight services, Gates agreed to pay BMP an annual fee of 1% of a covenant EBITDA measure defined under the agreements governing our senior secured credit facilities. In addition, the Monitoring Service Recipients agreed to reimburse the Managers for any related out-of-pocket expenses incurred by the Managers and their affiliates. During Fiscal 2022 and Fiscal 2021, Gates incurred no cost in respect of these oversight services and out-of-pocket expenses, compared to $1.9 million during Fiscal 2020, and there were no amounts owing at December 31, 2022 or January 1, 2022. In connection with the initial public offering, we entered into a Support and Services Agreement with BMP, under which the Company and certain of its direct and indirect subsidiaries reimburse BMP for customary support services provided by Blackstone’s portfolio operations group to the Company at BMP’s direction. BMP will invoice the Company for such services based on the time spent by the relevant personnel providing such services during the applicable period and Blackstone’s allocated costs of such personnel. During the periods presented, no amounts were paid or outstanding under this agreement. This agreement terminates on the date our Sponsor beneficially owns less than 5% of our ordinary shares and such shares have a fair market value of less than $25.0 million, or such earlier date as may be chosen by Blackstone. As described in Note 19, in March 2022, the Company repurchased 8,000,000 ordinary shares through Citigroup from certain shareholders affiliated with Blackstone Inc. for an aggregate consideration of $121.1 million, plus costs directly related to the transaction of $0.8 million. In connection with the issuance of the New Dollar Term Loan on November 16, 2022, Blackstone Alternative Credit Advisors LP, an affiliate of Blackstone, was an initial lender of $50.0 million and received fees of $0.3 million. This transaction was on terms equivalent to those of unaffiliated parties. B. Equity method investees Sales to and purchases from equity method investees were as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Sales $ — $ 0.1 $ 0.9 Purchases $ (16.7) $ (14.9) $ (13.8) Amounts outstanding in respect of these transactions were payables of $2.4 million as of December 31, 2022, compared to $1.0 million as of January 1, 2022. No dividends were received from our equity method investees during the periods presented. C. 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 31, January 1, January 2, Sales $ 59.0 $ 67.3 $ 47.5 Purchases $ (18.4) $ (21.7) $ (18.5) Amounts outstanding in respect of these transactions were as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 Receivables $ 4.7 $ 5.4 Payables $ (3.2) $ (3.6)

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies A. Capital and other commitments As of December 31, 2022, we had entered into contractual commitments for the purchase of property, plant and equipment amounting to $12.1 million, compared to $5.1 million as of January 1, 2022, and for the purchase of non-integral computer software amounting to $6.6 million, compared to $0.7 million as of January 1, 2022. As of December 31, 2022, we had entered into contractual commitments for non-capital items such as raw materials and supplies amounting to $25.3 million, compared to $31.3 million as of January 1, 2022. B. Performance bonds, letters of credit and bank guarantees As of December 31, 2022, letters of credit were outstanding against the asset-backed revolving facility amounting to $25.8 million, compared to $45.3 million as of January 1, 2022. We had additional outstanding performance bonds, letters of credit and bank guarantees amounting to $8.7 million as of December 31, 2022, compared to $6.3 million as of January 1, 2022. C. Company–owned life insurance policies Gates is the beneficiary of a number of corporate-owned life insurance policies against which it borrows from the relevant life insurance company. As of December 31, 2022, the surrender value of the policies was $969.7 million, compared to $966.1 million as of January 1, 2022, and the amount outstanding on the related loans was $967.9 million, compared to $964.3 million as of January 1, 2022. For financial reporting purposes, these amounts are offset as a legal right of offset exists and the net receivable of $1.8 million, compared to $1.8 million as of January 1, 2022, is included in other receivables. D. 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. E. Allowance for expected credit losses Movements in our allowance for expected credit losses were as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Balance at beginning of year $ 5.1 $ 5.2 $ 8.6 Current period provision for expected credit losses 0.6 0.2 0.7 Write-offs charged against allowance (1.3) (0.1) (4.3) Foreign currency translation (0.2) (0.2) 0.2 Balance at end of year $ 4.2 $ 5.1 $ 5.2

Significant accounting polici_2

Significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2022
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, except for the adoption on the first day of our 2022 fiscal year of the following new Accounting Standard Update (“ASU”): • ASU 2021-10 “ Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” In November 2021, the Financial Accounting Standards Board (“FASB”) issued this ASU to increase the transparency of government assistance, including the disclosure of (i) the types of assistance, (ii) an entity’s accounting for the assistance, and (iii) the effect of the assistance on an entity’s financial statements. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy, including (i) information about the nature of the transactions and the related accounting policy used to account for them, (ii) the line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each line item, and (iii) significant terms and conditions of the transactions, including commitments and contingencies. The amendments are effective for fiscal years beginning after December 15, 2021. The adoption of this ASU did not have any significant impact on our consolidated financial statements.
Accounting periods	Accounting periodsThe Company prepares its annual consolidated financial statements as of the Saturday nearest December 31. Accordingly, the consolidated balance sheets are presented as of December 31, 2022 and January 1, 2022 and the related consolidated statements of operations, comprehensive income, cash flows, and shareholders’ equity are presented for the years ended December 31, 2022 (“Fiscal 2022”), January 1, 2022 (“Fiscal 2021”) and January 2, 2021 (“Fiscal 2020”).
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.
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 first-fit 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 expensesShipping and handling costsCosts of outbound shipping and handling are included in SG&A.
Research and development costs	Research and development costsResearch and development costs are charged to net income in the period in which they are incurred.
Advertising costs	Advertising costsAdvertising 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.
Inventory	InventoriesInventories 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 2022, Fiscal 2021 or Fiscal 2020.
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 improvements Shorter 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 93% of the lease liability under non-cancellable leases as of December 31, 2022. 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 31, 2022, 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 sheet, 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. Global developments related to the COVID-19 pandemic and its impact on our customers’ ability to pay us continue to be closely monitored and taken into account in the determination of our expected credit loss estimates. Movements in our allowance for expected credit losses during the periods presented are analyzed in Note 22.
Debt	DebtDebt 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 payableAccounts 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 ValueFair 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 awards 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 statement of operations and accrued interest and penalties are included under the related taxes payable line in the consolidated balance sheet. 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 31, 2022, including those resulting from the continuing impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by our assumptions and estimates.

Significant accounting polici_3

Significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
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
Property plant, and equipment details	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 improvements Shorter of lease term or useful life Machinery, equipment and vehicles 2 to 20 years (dollars in millions) As of December 31, 2022 As of January 1, 2022 Cost Land and buildings $ 321.4 $ 329.2 Machinery, equipment and vehicles 884.6 873.3 Assets under construction 100.9 81.0 1,306.9 1,283.5 Less: Accumulated depreciation and impairment (669.4) (613.2) Total $ 637.5 $ 670.3

Segment information (Tables)

Segment information (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, January 1, January 2, Power Transmission $ 2,173.7 $ 2,216.3 $ 1,800.2 Fluid Power 1,380.5 1,258.1 992.8 Net sales $ 3,554.2 $ 3,474.4 $ 2,793.0 Adjusted EBITDA by segment was as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Power Transmission $ 404.0 $ 500.6 $ 353.0 Fluid Power 276.6 235.2 153.6 Adjusted EBITDA $ 680.6 $ 735.8 $ 506.6
Schedule of net sales by key geographic regions and markets	The following table summarizes our net sales by key geographic region of origin: For the year ended December 31, 2022 January 1, 2022 January 2, 2021 (dollars in millions) Power Transmission Fluid Power Power Transmission Fluid Power Power Transmission Fluid Power U.S. $ 636.8 $ 733.3 $ 621.8 $ 615.5 $ 538.3 $ 513.9 North America, excluding U.S. 205.6 208.8 179.8 193.8 147.3 146.9 United Kingdom (“U.K.”) 45.1 68.9 50.2 58.3 44.3 28.2 EMEA (1) , excluding U.K. 598.3 200.0 640.6 198.8 487.4 151.0 East Asia and India 295.5 75.4 308.6 86.3 251.8 60.5 Greater China 300.3 44.4 344.2 67.8 279.5 66.9 South America 92.1 49.7 71.1 37.6 51.6 25.4 Net sales $ 2,173.7 $ 1,380.5 $ 2,216.3 $ 1,258.1 $ 1,800.2 $ 992.8 (1) Europe, Middle East and Africa (“EMEA”). The following table summarizes our net sales into emerging and developed markets: For the year ended (dollars in millions) December 31, January 1, January 2, Developed $ 2,281.4 $ 2,214.6 $ 1,787.8 Emerging 1,272.8 1,259.8 1,005.2 Net sales $ 3,554.2 $ 3,474.4 $ 2,793.0 (dollars in millions) As of December 31, 2022 As of January 1, 2022 Property, plant and equipment, net by geographic location U.S. $ 166.5 $ 172.9 Rest of North America 125.8 127.1 U.K. 28.6 32.8 Rest of EMEA 160.7 151.3 East Asia and India 38.9 45.7 Greater China 100.1 124.8 South America 16.9 15.7 $ 637.5 $ 670.3
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 31, January 1, January 2, Net income from continuing operations $ 242.9 $ 331.3 $ 90.3 Income tax expense (benefit) 14.9 18.4 (19.3) Income from continuing operations before taxes 257.8 349.7 71.0 Interest expense 139.4 133.5 154.3 Other (income) expense (13.2) 0.9 (14.2) Operating income from continuing operations 384.0 484.1 211.1 Depreciation and amortization 217.2 222.6 218.6 Transaction-related expenses (1) 2.1 3.7 5.2 Asset impairments 1.1 0.6 5.2 Restructuring expenses 9.5 7.4 37.3 Share-based compensation expense 44.3 24.6 19.8 Sponsor fees (included in other operating expense) — — 1.9 Inventory impairments and adjustments (2) (included in cost of sales) 20.9 1.4 1.4 Severance expenses (included in cost of sales) 0.8 — 1.0 Severance expenses (included in SG&A) 0.5 0.7 8.0 Other items not directly related to current operations 0.2 (9.3) (2.9) Adjusted EBITDA $ 680.6 $ 735.8 $ 506.6 (1) 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. (2) Inventory impairments and adjustments include $19.4 million 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.

Restructuring and other strat_2

Restructuring and other strategic initiatives (Tables)	12 Months Ended
	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Schedule of restructuring costs	Overall costs associated with our restructuring and other strategic 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 31, January 1, January 2, Restructuring expenses: —Severance expenses $ 4.9 $ 0.7 $ 24.0 —Non-severance labor and benefit expenses 0.5 2.5 3.8 —Consulting expenses 1.8 2.2 2.1 —Other net restructuring expenses 2.3 2.0 7.4 9.5 7.4 37.3 Restructuring expenses in asset impairments: —Impairment of fixed and other assets 1.1 0.6 5.2 Restructuring expenses in cost of sales: —Impairment of inventory 1.5 1.4 1.4 Total restructuring expenses $ 12.1 $ 9.4 $ 43.9 Expenses related to other strategic initiatives: —Severance expenses included in cost of sales $ 0.8 $ — $ 1.0 —Severance expenses included in SG&A 0.5 0.7 8.0 Total expenses related to other strategic initiatives $ 1.3 $ 0.7 $ 9.0 For the year ended (dollars in millions) December 31, January 1, January 2, Power Transmission $ 5.8 $ 5.6 $ 32.6 Fluid Power 6.3 3.8 11.3 Continuing operations $ 12.1 $ 9.4 $ 43.9
Schedule of restructuring reserves activity	The following summarizes the reserve for restructuring expenses for the year ended December 31, 2022 and January 1, 2022, respectively: For the year ended (dollars in millions) December 31, January 1, Balance as of the beginning of the period $ 6.5 $ 17.9 Utilized during the period (8.1) (18.0) Charge for the period 9.6 8.0 Released during the period (0.1) (0.6) Foreign currency translation (0.4) (0.8) Balance as of the end of the period $ 7.5 $ 6.5

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, January 1, January 2, U.K. $ (11.0) $ (32.9) $ (82.7) U.S. 17.1 63.5 (105.3) Other foreign 251.7 319.1 259.0 Income from continuing operations before income taxes $ 257.8 $ 349.7 $ 71.0
Income tax expense (benefit) on income from continuing operations analyzed by tax jurisdiction	Income tax expense (benefit) on income from continuing operations analyzed by tax jurisdiction is as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Current tax U.K. $ (1.7) $ 4.2 $ (0.1) U.S. 42.0 12.9 5.4 Other foreign 54.3 95.6 23.1 Total current tax expense $ 94.6 $ 112.7 $ 28.4 Deferred income tax U.K. $ (2.5) $ (18.1) $ (19.2) U.S. (54.5) (61.7) 2.0 Other foreign (22.7) (14.5) (30.5) Total deferred income tax benefit (79.7) (94.3) (47.7) Income tax expense (benefit) $ 14.9 $ 18.4 $ (19.3)
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 31, January 1, January 2, U.K. corporation tax rate 19.0 % 19.0 % 19.0 % Effect of: —State tax provision, net of Federal benefit (0.2 %) 1.4 % (0.9 %) —Provision for unrecognized income tax benefits (9.8 %) (0.4 %) (30.8 %) —Corporate owned life insurance (3.1 %) (2.4 %) (11.3 %) —Tax on international operations (1) 20.6 % (31.2 %) (4.4 %) —Manufacturing incentives (2) (3.9 %) (1.8 %) (4.4 %) —Change in valuation allowance (3) (20.6 %) 36.3 % (2.8 %) —Deferred income tax rate changes (0.1 %) (17.8 %) (3.8 %) —Currency exchange rate movements 1.9 % 0.8 % 8.2 % —Other permanent differences 2.0 % 1.4 % 4.0 % Reported effective income tax rate 5.8 % 5.3 % (27.2 %) (1) “Tax on international operations” includes U.S. tax on foreign earnings, unremitted earnings of foreign subsidiaries, effects of global funding structures, and effects of differences between statutory and foreign tax rates. Fiscal 2021 includes $129.9 million benefit for additional net deferred tax assets, primarily finite-lived net operating losses for 2019 in Luxembourg. Fiscal 2020 include the effects of tax law enactments other than deferred income tax rate changes and the impact of nondeductible transaction-related expenses. (2) “Manufacturing incentives” for Fiscal 2022 totaled $10.0 million, primarily related to $6.7 million of incentives generated in Türkiye and the U.S. during the year. (3) “Change in valuation allowance” is comprised primarily of: For the year ended Expense (benefit) December 31, January 1, January 2, Luxembourg finite-lived net operating losses $ — $ 126.8 $ — Luxembourg indefinite-lived net operating losses $ (14.8) $ 3.1 $ — U.S. foreign tax credits $ (39.9) $ (53.4) $ 5.4 Disallowed interest carryforwards $ — $ — $ (11.7) Rate change $ — $ 48.3 $ —
Schedule of deferred tax assets (liabilities)	Deferred income tax assets (liabilities) recognized by the Company were as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 Deferred income tax assets: Accounts receivable $ 4.6 $ 3.8 Lease liabilities 39.2 37.2 Accrued expenses 45.3 36.2 Post-retirement benefit obligations 14.0 4.9 Compensation 18.8 19.9 Net operating losses 1,576.0 1,629.4 Capital losses 182.1 200.8 Credits 91.9 117.1 Interest 148.3 140.2 Other items — 4.4 $ 2,120.2 $ 2,193.9 Valuation allowances (1,273.5) (1,349.1) Total deferred income tax assets $ 846.7 $ 844.8 Deferred income tax liabilities: Inventories $ (11.2) $ (16.6) Property, plant and equipment (34.2) (37.8) Lease right-of-use assets (33.3) (31.3) Intangible assets (340.9) (382.5) Undistributed earnings (18.6) (21.0) Other items (0.2) — Total deferred income tax liabilities $ (438.4) $ (489.2) Net deferred income tax assets $ 408.3 $ 355.6
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 31, January 1, January 2, At the beginning of the period $ 104.6 $ 121.6 $ 147.3 Increases for tax positions related to the current period 6.5 6.7 6.9 Increases for tax positions related to prior periods 0.4 0.7 0.5 Decreases for tax positions related to prior periods — (12.1) (18.9) Decreases related to settlements (2.8) — (14.0) Decreases due to lapsed statute of limitations (27.6) (7.2) (5.8) Foreign currency translation (5.1) (5.1) 5.6 At the end of the period $ 76.0 $ 104.6 $ 121.6

Earnings per share (Tables)

Earnings per share (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, January 1, January 2, Net income attributable to shareholders $ 220.8 $ 297.1 $ 79.4 Weighted average number of shares outstanding 284,063,083 291,623,523 290,681,615 Dilutive effect of share-based awards 3,523,127 5,670,552 1,434,349 Diluted weighted average number of shares outstanding 287,586,210 297,294,075 292,115,964 Number of anti-dilutive shares excluded from diluted earnings per share calculation 7,538,260 3,981,424 5,257,654 Basic earnings per share $ 0.78 $ 1.02 $ 0.27 Diluted earnings per share $ 0.77 $ 1.00 $ 0.27

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Schedule of inventories	(dollars in millions) As of December 31, 2022 As of January 1, 2022 Raw materials and supplies $ 195.9 $ 199.6 Work in progress 42.3 43.4 Finished goods 418.0 439.6 Total inventories $ 656.2 $ 682.6

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property plant, and equipment details	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 improvements Shorter of lease term or useful life Machinery, equipment and vehicles 2 to 20 years (dollars in millions) As of December 31, 2022 As of January 1, 2022 Cost Land and buildings $ 321.4 $ 329.2 Machinery, equipment and vehicles 884.6 873.3 Assets under construction 100.9 81.0 1,306.9 1,283.5 Less: Accumulated depreciation and impairment (669.4) (613.2) Total $ 637.5 $ 670.3

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	(dollars in millions) Power Fluid Total Cost and carrying amount As of January 2, 2021 $ 1,434.4 $ 685.8 $ 2,120.2 Foreign currency translation (46.3) (10.9) (57.2) As of January 1, 2022 1,388.1 674.9 2,063.0 Foreign currency translation (72.9) (9.0) (81.9) As of December 31, 2022 $ 1,315.2 $ 665.9 $ 1,981.1

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of finite-lived intangible assets	As of December 31, 2022 As of January 1, 2022 (dollars in millions) Cost Accumulated Net Cost Accumulated Net Finite-lived: —Customer relationships $ 1,973.7 $ (993.2) $ 980.5 $ 2,031.7 $ (901.6) $ 1,130.1 —Technology 90.4 (89.6) 0.8 90.9 (89.4) 1.5 —Capitalized software 105.4 (65.7) 39.7 97.8 (56.6) 41.2 2,169.5 (1,148.5) 1,021.0 2,220.4 (1,047.6) 1,172.8 Indefinite-lived: —Brands and trade names 513.4 (44.0) 469.4 513.4 (44.0) 469.4 Total intangible assets $ 2,682.9 $ (1,192.5) $ 1,490.4 $ 2,733.8 $ (1,091.6) $ 1,642.2
Schedule of indefinite-lived intangible assets	As of December 31, 2022 As of January 1, 2022 (dollars in millions) Cost Accumulated Net Cost Accumulated Net Finite-lived: —Customer relationships $ 1,973.7 $ (993.2) $ 980.5 $ 2,031.7 $ (901.6) $ 1,130.1 —Technology 90.4 (89.6) 0.8 90.9 (89.4) 1.5 —Capitalized software 105.4 (65.7) 39.7 97.8 (56.6) 41.2 2,169.5 (1,148.5) 1,021.0 2,220.4 (1,047.6) 1,172.8 Indefinite-lived: —Brands and trade names 513.4 (44.0) 469.4 513.4 (44.0) 469.4 Total intangible assets $ 2,682.9 $ (1,192.5) $ 1,490.4 $ 2,733.8 $ (1,091.6) $ 1,642.2
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: —2023 $ 128.7 —2024 $ 127.8 —2025 $ 122.0 —2026 $ 121.1 —2027 $ 120.5

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Lease cost and quantitative disclosures	For the year ended ( dollars in millions ) December 31, January 1, January 2, Lease expenses Operating lease expenses $ 30.5 $ 31.5 $ 29.9 Finance lease expenses: —Finance lease amortization expenses 1.2 1.1 0.9 —Interest on lease liabilities 0.1 0.1 0.1 Short-term lease expenses 7.2 6.7 5.8 Variable lease expenses 6.0 7.9 7.0 Total lease expenses $ 45.0 $ 47.3 $ 43.7 Other information Right-of-use assets obtained in exchange for new operating lease liabilities $ 34.9 $ 29.9 $ 17.7 Assets obtained in exchange for new finance lease liabilities $ 0.8 $ 1.5 $ 2.0 Gain on sale and leaseback transactions, net $ — $ (9.3) $ — 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 leases 27.6 30.1 30.3 —Financing cash flows from finance leases 1.3 1.2 1.0 $ 29.0 $ 31.4 $ 31.3 Weighted-average remaining lease term — finance leases 2.9 years 4.0 years 5.3 years Weighted-average remaining lease term — operating leases 8.5 years 9.0 years 9.4 years Weighted-average discount rate — finance leases 3.2 % 2.5 % 3.0 % Weighted-average discount rate — operating leases 5.4 % 5.1 % 5.5 %
Operating lease - maturity analysis of liability	Maturity analysis of liabilities ( dollars in millions ) Operating leases Finance leases Next 12 months $ 29.2 $ 1.1 Year 2 24.7 0.7 Year 3 22.6 0.5 Year 4 17.6 0.2 Year 5 15.7 — Year 6 and beyond 68.6 — Total lease payments 178.4 2.5 Interest (34.1) (0.1) Total present value of lease liabilities $ 144.3 $ 2.4
Finance lease - maturity analysis of liability	Maturity analysis of liabilities ( dollars in millions ) Operating leases Finance leases Next 12 months $ 29.2 $ 1.1 Year 2 24.7 0.7 Year 3 22.6 0.5 Year 4 17.6 0.2 Year 5 15.7 — Year 6 and beyond 68.6 — Total lease payments 178.4 2.5 Interest (34.1) (0.1) Total present value of lease liabilities $ 144.3 $ 2.4
Balance sheet location	Balance sheet presentation of leases as of December 31, 2022 and January 1, 2022 As of December 31, 2022 As of January 1, 2022 ( dollars in millions ) Operating leases Finance leases Operating leases Finance leases Right-of-use assets $ 132.2 $ 3.5 $ 124.2 $ 4.1 Short-term lease liabilities (included in “Accrued expenses and other current liabilities”) $ 24.0 $ 0.8 $ 20.9 $ 1.1 Long-term lease liabilities 120.3 1.6 114.2 2.2 Total lease liabilities $ 144.3 $ 2.4 $ 135.1 $ 3.3

Derivative financial instrume_2

Derivative financial instruments (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, 2022 As of January 1, 2022 (dollars in millions) Prepaid expenses and other assets Other Accrued expenses and other Other Net Prepaid expenses and other assets Other Accrued expenses and other Other Net Derivatives designated as hedging instruments: —Currency swaps $ 9.3 $ — $ — $ (45.2) $ (35.9) $ — $ — $ (19.8) $ — $ (19.8) —Interest rate caps — — — — — — — (1.3) (0.5) (1.8) —Interest rate swaps 33.3 32.7 (10.7) (22.1) 33.2 — 7.7 (12.9) (26.9) (32.1) Derivatives not designated as hedging instruments: —Currency forward contracts 2.2 — (1.4) — 0.8 2.9 — (0.6) — 2.3 $ 44.8 $ 32.7 $ (12.1) $ (67.3) $ (1.9) $ 2.9 $ 7.7 $ (34.6) $ (27.4) $ (51.4)
Schedule of derivative effect on OCI	The fair value (losses) gains 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 31, January 1, January 2, Net fair value (losses) gains recognized in OCI in relation to: —Euro-denominated debt $ 10.6 $ 12.4 $ (15.5) —Designated cross currency swaps (16.3) 21.4 (26.3) Total net fair value (losses) gains $ (5.7) $ 33.8 $ (41.8) 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 31, January 1, January 2, Movement recognized in OCI in relation to: —Fair value gain (loss) on cash flow hedges $ 61.7 $ 11.7 $ (29.1) —Amortization to net income of prior period fair value losses 17.9 17.9 9.1 —Reclassification from OCI to net income (4.0) 3.7 3.6 Total movement $ 75.6 $ 33.3 $ (16.4)
Gain recognized from derivative instruments	The fair value gains (losses) 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 31, January 1, January 2, Fair value gains (losses) recognized in relation to: —Currency forward contracts recognized in SG&A $ 6.3 $ 5.1 $ (1.9) —Currency swaps recognized in other expenses — — 0.4 Total $ 6.3 $ 5.1 $ (1.5)

Fair value measurement (Tables)

Fair value measurement (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, 2022 As of January 1, 2022 (dollars in millions) Carrying amount Fair value Carrying amount Fair value Current $ 36.6 $ 36.2 $ 38.1 $ 37.9 Non-current 2,426.4 2,408.4 2,526.5 2,553.0 $ 2,463.0 $ 2,444.6 $ 2,564.6 $ 2,590.9
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 31, 2022 Derivative assets $ — $ 77.5 $ 77.5 Derivative liabilities $ — $ (79.4) $ (79.4) As of January 1, 2022 Equity investments $ 0.6 $ — $ 0.6 Derivative assets $ — $ 10.6 $ 10.6 Derivative liabilities $ — $ (62.0) $ (62.0)

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of long-term debt	(dollars in millions) As of December 31, 2022 As of January 1, 2022 Secured debt: —Dollar Term Loans $ 1,923.4 $ 1,363.7 —Euro Term Loan — 647.5 Unsecured debt: —6.25% Dollar Senior Notes due 2026 568.0 568.0 Total principal of debt 2,491.4 2,579.2 Deferred issuance costs (45.5) (31.5) Accrued interest 17.1 16.9 Total carrying value of debt 2,463.0 2,564.6 Debt, current portion 36.6 38.1 Debt, less current portion $ 2,426.4 $ 2,526.5
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: —2023 $ 19.5 —2024 19.5 —2025 19.5 —2026 587.5 —2027 1,300.5 Thereafter 544.9 $ 2,491.4
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. As 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 (loss) were recognized in OCI. For the year ended (dollars in millions) December 31, January 1, January 2, Gain (loss) recognized in statement of operations $ 45.2 $ 38.2 $ (51.4) Gain (loss) recognized in OCI 10.6 12.4 (15.5) Total gain (loss) $ 55.8 $ 50.6 $ (66.9)
Schedule of redemption prices plus accrued and unpaid interest	We may redeem the Dollar 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 During the year commencing: —2023 101.563 % —2024 and thereafter 100.000 %

Accrued expenses and other li_2

Accrued expenses and other liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, 2022 As of January 1, 2022 Accrued compensation $ 60.2 $ 80.2 Current portion of lease obligations 24.8 22.0 Derivative financial instruments 79.4 62.0 Payroll and related taxes payable 18.9 21.9 VAT and other taxes payable 7.2 10.9 Warranty reserve 17.6 18.7 Restructuring reserve 7.5 6.5 Workers’ compensation reserve 8.0 7.9 Other accrued expenses and other liabilities 98.7 106.2 $ 322.3 $ 336.3
Schedule of liabilities	The above liabilities are presented in Gates’ balance sheet as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 —Accrued expenses and other current liabilities $ 222.6 $ 277.1 —Other non-current liabilities 99.7 59.2 $ 322.3 $ 336.3
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 31, January 1, January 2, Balance at the beginning of the period $ 18.7 $ 19.8 $ 17.7 Charge for the period 10.8 10.3 11.8 Utilized during the period (10.9) (9.6) (9.5) Released during the period (0.3) (1.9) (0.7) Foreign currency translation (0.7) 0.1 0.5 Balance at the end of the period $ 17.6 $ 18.7 $ 19.8

Post-retirement benefits (Table

Post-retirement benefits (Tables)	12 Months Ended
	Dec. 31, 2022
Pensions
Defined Benefit Plans and Other Postretirement Benefit Plans
Schedule of funded status and balance sheet location	The net (deficit) asset recognized in respect of defined benefit pension plans is presented in the balance sheet as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 Pension surplus $ 10.1 $ 75.5 Accrued expenses and other current liabilities (2.4) (2.6) Post-retirement benefit obligations (50.9) (64.2) Net funded status $ (43.2) $ 8.7 Plans whose projected benefit obligation was in excess of plan assets: —Aggregate projected benefit obligation $ 247.5 $ 341.4 —Aggregate fair value of plan assets $ 194.2 $ 274.6 Plans whose accumulated benefit obligation was in excess of plan assets: —Aggregate accumulated benefit obligation $ 243.4 $ 336.1 —Aggregate fair value of plan assets $ 194.2 $ 274.0
Schedule of benefit obligation in excess of fair value of plan assets	The net (deficit) asset recognized in respect of defined benefit pension plans is presented in the balance sheet as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 Pension surplus $ 10.1 $ 75.5 Accrued expenses and other current liabilities (2.4) (2.6) Post-retirement benefit obligations (50.9) (64.2) Net funded status $ (43.2) $ 8.7 Plans whose projected benefit obligation was in excess of plan assets: —Aggregate projected benefit obligation $ 247.5 $ 341.4 —Aggregate fair value of plan assets $ 194.2 $ 274.6 Plans whose accumulated benefit obligation was in excess of plan assets: —Aggregate accumulated benefit obligation $ 243.4 $ 336.1 —Aggregate fair value of plan assets $ 194.2 $ 274.0
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 31, January 1, Benefit obligation at the beginning of the period $ 821.1 $ 905.9 Employer service cost 3.3 4.3 Plan participants’ contributions 0.1 0.1 Interest cost 15.2 13.4 Net actuarial gain (180.6) (43.4) Benefits paid (37.8) (47.6) Expenses paid from assets (1.3) (1.3) Curtailments and settlements (1.9) (1.6) Foreign currency translation (57.6) (8.7) Benefit obligation at the end of the period $ 560.5 $ 821.1 Accumulated benefit obligation $ 556.2 $ 816.3
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 31, January 1, Plan assets at the beginning of the period $ 829.8 $ 881.4 Actual loss on plan assets (217.5) (4.9) Employer contributions 9.2 11.3 Plan participants’ contributions 0.1 0.1 Settlements (1.9) (1.6) Benefits paid (37.8) (47.6) Expenses paid from assets (1.3) (1.3) Foreign currency translation (63.3) (7.6) Plan assets at the end of the period $ 517.3 $ 829.8
Schedule of plan asset by category	The fair values of pension plan assets by asset category were as follows: As of December 31, 2022 As of January 1, 2022 (dollars in millions) Quoted prices Significant Significant Total Quoted prices Significant Significant Total Collective investment trusts: Equity Securities $ — $ 106.7 $ — $ 106.7 $ — $ 145.3 $ — $ 145.3 Debt Securities —Corporate bonds — 22.1 — 22.1 — 240.1 — 240.1 —Government bonds — 93.0 — 93.0 — 199.6 — 199.6 Annuities and insurance — — 275.4 275.4 — 21.2 210.5 231.7 Other — 4.7 — 4.7 — 5.6 — 5.6 Cash and cash equivalents 15.4 — — 15.4 7.5 — — 7.5 Total $ 15.4 $ 226.5 $ 275.4 $ 517.3 $ 7.5 $ 611.8 $ 210.5 $ 829.8
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 31, January 1, Fair value at the beginning of the period $ 210.5 $ 239.4 Actual loss on plan assets (54.3) (13.0) Purchases 150.2 1.2 Contributions 0.4 — Impacts of benefits paid (11.9) (12.6) Settlements (0.7) (1.3) Foreign currency translation (18.8) (3.2) Fair value at the end of the period $ 275.4 $ 210.5
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: —2023 $ 42.0 —2024 $ 42.1 —2025 $ 40.9 —2026 $ 42.2 —2027 $ 41.7 —2028 through 2032 $ 203.8
Schedule of components of net periodic benefit income for pensions and other post-retirement benefits	Components of the net periodic benefit (income) cost for defined benefit pension plans relating to continuing operations were as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Employer service cost $ 3.3 $ 4.3 $ 5.6 Settlements and curtailments (0.2) 0.1 (2.1) Interest cost 15.2 13.4 18.3 Expected return on plan assets (21.7) (19.3) (22.0) Amortization of prior net actuarial loss 0.3 0.4 0.2 Amortization of prior service cost 0.9 1.0 0.8 Net periodic benefit (income) cost $ (2.2) $ (0.1) $ 0.8
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 31, January 1, January 2, Current period net actuarial loss (gain) $ 58.6 $ (19.1) $ (32.6) Amortization of prior net actuarial loss (0.3) (0.4) (0.2) Prior service cost — — 1.5 Amortization of prior service cost (0.9) (1.0) (0.8) Gain (loss) recognized due to settlements and curtailments 0.2 (0.1) 2.1 Pre-tax changes recognized in OCI other than foreign currency translation 57.6 (20.6) (30.0) Foreign currency translation (0.5) (0.3) 1.7 Total pre-tax changes recognized in OCI $ 57.1 $ (20.9) $ (28.3) Cumulative losses 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 31, January 1, January 2, Actuarial loss (gain) $ 29.4 $ (29.1) $ (9.5) Prior service costs 9.9 10.8 11.8 Pre-tax changes recognized in OCI other than foreign currency translation 39.3 (18.3) 2.3 Foreign currency translation (2.0) (1.5) (1.2) Cumulative total $ 37.3 $ (19.8) $ 1.1
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 31, 2022 As of January 1, 2022 Benefit obligation: —Discount rate 4.598 % 2.003 % —Rate of salary increase 3.511 % 3.095 % Net periodic benefit cost: —Discount rate 2.005 % 1.527 % —Rate of salary increase 3.105 % 3.032 % —Expected return on plan assets 2.881 % 2.380 %
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 31, January 1, Benefit obligation at the beginning of the period $ 46.0 $ 56.7 Interest cost 1.2 1.2 Actuarial gain (13.9) (8.4) Benefits paid (3.3) (3.8) Plan amendments (0.5) — Foreign currency translation (1.1) 0.3 Benefit obligation at the end of the period $ 28.4 $ 46.0 Accumulated benefit obligation $ 28.4 $ 46.0
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: —2023 $ 3.2 —2024 $ 3.1 —2025 $ 2.9 —2026 $ 2.8 —2027 $ 2.6 —2028 through 2032 $ 11.2
Schedule of components of net periodic benefit income for pensions and other post-retirement benefits	Components of the net periodic benefit (income) cost for other defined benefit plans were as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Interest cost $ 1.2 $ 1.2 $ 1.7 Amortization of prior net actuarial gain (1.8) (1.0) (1.0) Amortization of prior service credit (0.4) (0.4) (0.4) Net periodic benefit (income) cost $ (1.0) $ (0.2) $ 0.3
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 31, January 1, January 2, Current period net actuarial (gain) loss $ (13.9) $ (8.4) $ 0.3 Amortization of prior net actuarial gain 1.8 1.0 1.0 Prior service credit (0.5) — — Amortization of prior service credit 0.4 0.4 0.4 Pre-tax changes recognized in OCI other than foreign currency translation (12.2) (7.0) 1.7 Foreign currency translation 0.6 — — Total pre-tax changes recognized in OCI $ (11.6) $ (7.0) $ 1.7 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 31, January 1, January 2, Actuarial gains $ (35.5) $ (23.4) $ (16.0) Prior service credits (2.7) (2.6) (3.0) Other adjustments 0.2 0.2 0.2 Pre-tax changes recognized in OCI other than foreign currency translation (38.0) (25.8) (18.8) Foreign currency translation 0.4 (0.2) (0.2) Cumulative total $ (37.6) $ (26.0) $ (19.0)
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 obligation Net periodic benefit cost As of December 31, 2022 As of January 1, 2022 As of December 31, 2022 As of January 1, 2022 Discount rate 5.44 % 2.81 % 2.81 % 2.30 %
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 31, 2022 As of January 1, 2022 Accrued expenses and other current liabilities $ 3.1 $ 4.0 Post-retirement benefit obligations 25.3 42.0 $ 28.4 $ 46.0

Share-based compensation (Table

Share-based compensation (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, 2022 Plan Number of Weighted average exercise price Outstanding at the beginning of the period: —Tier I 2014 Plan 2,752,700 $ 6.91 —Tier II 2014 Plan 3,577,470 $ 6.90 —Tier III 2014 Plan 3,577,470 $ 6.90 —Tier IV 2014 Plan 3,577,470 $ 10.35 —SARs Both plans 829,108 $ 9.31 —Share options 2018 Plan 3,254,097 $ 14.84 —Premium-priced options 2018 Plan 835,469 $ 18.88 18,403,784 $ 9.63 Granted during the period: —SARs 2018 Plan 62,055 $ 15.76 62,055 $ 15.76 Forfeited during the period: —Tier III 2014 Plan (188,157) $ 6.93 —SARs 2018 Plan (20,004) $ 14.11 —Share options 2018 Plan (110,381) $ 14.18 (318,542) $ 9.89 Expired during the period: —Tier III 2014 Plan (3,389,313) $ 6.90 —Tier IV 2014 Plan (79,760) $ 11.80 —SARs Both Plans (183,908) $ 7.55 —Share options 2018 Plan (134,837) $ 15.14 (3,787,818) $ 7.33 Exercised during the period: —Tier I 2014 Plan (231,527) $ 7.09 —Tier II 2014 Plan (887,919) $ 6.70 —Tier IV 2014 Plan (805,159) $ 9.84 —SARs Both Plans (4,164) $ 11.00 —Share options 2018 Plan (28,745) $ 13.42 (1,957,514) $ 8.15 Outstanding at the end of the period: —Tier I 2014 Plan 2,521,173 $ 6.89 —Tier II 2014 Plan 2,689,551 $ 6.97 —Tier III 2014 Plan — $ — —Tier IV 2014 Plan 2,692,551 $ 10.46 —SARs Both plans 683,087 $ 10.22 —Share options 2018 Plan 2,980,134 $ 14.86 —Premium-priced options 2018 Plan 835,469 $ 18.88 12,401,965 $ 10.59 Exercisable at the end of the period 10,881,483 $ 9.85 Vested and expected to vest at the end of the period 12,371,354 $ 10.57
Schedule of RSU and PRSU activity	Summary of movements in RSUs and PRSUs outstanding Year ended December 31, 2022 Number of Weighted average Outstanding at the beginning of the period: —RSUs 1,744,405 $ 13.98 —PRSUs 883,978 $ 16.98 2,628,383 $ 14.99 Granted during the period: —RSUs 2,823,325 $ 13.67 —PRSUs 425,670 $ 17.23 3,248,995 $ 14.14 Forfeited during the period: —RSUs (242,925) $ 14.63 —PRSUs (152,780) $ 21.11 (395,705) $ 17.13 Vested during the period: —RSUs (833,546) $ 13.83 —PRSUs (80,308) 16.46 (913,854) $ 14.06 Outstanding at the end of the period: —RSUs 3,491,259 $ 13.72 —PRSUs 1,076,560 $ 16.53 4,567,819 $ 14.38
Schedule of share based compensation valuation techniques	The weighted average fair values and relevant assumptions were as follows: For the year ended December 31, January 1, January 2, Weighted average grant date fair value: —SARs $ 6.94 $ 6.66 $ 4.59 —Share options n/a $ 6.66 $ 4.78 —Premium-priced options n/a $ 6.36 n/a —RSUs $ 13.67 $ 15.16 $ 11.79 —PRSUs $ 17.23 $ 17.92 $ 14.41 Inputs to the model: —Expected volatility - SARs 43.5 % 46.1 % 37.7 % —Expected volatility - share options n/a 46.1 % 37.6 % —Expected volatility - premium-priced options n/a 46.1 % n/a —Expected volatility - PRSUs 49.1 % 50.8 % 40.4 % —Expected option life for SARs (years) 6.0 6.0 6.0 —Expected option life for share options (years) n/a 6.0 6.0 —Expected option life for premium-priced options (years) n/a 6.0 n/a —Risk-free interest rate: SARs 1.91 % 0.95 % 1.25 % Share options n/a 0.95 % 1.33 % Premium-priced options n/a 0.95 % n/a PRSUs 1.72 % 0.27 % 1.29 %

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, 2022 and January 1, 2022, respectively, were as follows: For the year ended (number of shares) December 31, January 1, Balance as of the beginning of the period 291,282,137 290,853,067 Exercise of share options 1,953,350 518,600 Vesting of restricted stock units, net of withholding taxes 809,347 566,921 Shares repurchased and cancelled (11,465,917) (656,451) Balance as of the end of the period 282,578,917 291,282,137

Analysis of accumulated other_2

Analysis of accumulated other comprehensive income (loss) (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (dollars in millions) Post- Cumulative Cash flow Accumulated OCI attributable to Non- Accumulated OCI As of December 28, 2019 $ (9.3) $ (812.3) $ (36.8) $ (858.4) $ (46.0) $ (904.4) Foreign currency translation 1.7 42.1 — 43.8 27.4 71.2 Cash flow hedges movements — — (13.3) (13.3) — (13.3) Post-retirement benefit movements 22.5 — — 22.5 0.5 23.0 Other comprehensive income (loss) 24.2 42.1 (13.3) 53.0 27.9 80.9 As of January 2, 2021 14.9 (770.2) (50.1) (805.4) (18.1) (823.5) Foreign currency translation (0.1) (66.5) — (66.6) (5.2) (71.8) Cash flow hedges movements — — 25.0 25.0 — 25.0 Post-retirement benefit movements 21.8 — — 21.8 (0.1) 21.7 Other comprehensive income (loss) 21.7 (66.5) 25.0 (19.8) (5.3) (25.1) 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, 2022 $ 0.6 $ (950.0) $ 31.6 $ (917.8) $ (64.6) $ (982.4)

Related party transactions (Tab

Related party transactions (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, January 1, January 2, Sales $ — $ 0.1 $ 0.9 Purchases $ (16.7) $ (14.9) $ (13.8) Sales to and purchases from non-Gates entities controlled by non-controlling shareholders were as follows: For the year ended (dollars in millions) December 31, January 1, January 2, Sales $ 59.0 $ 67.3 $ 47.5 Purchases $ (18.4) $ (21.7) $ (18.5) Amounts outstanding in respect of these transactions were as follows: (dollars in millions) As of December 31, 2022 As of January 1, 2022 Receivables $ 4.7 $ 5.4 Payables $ (3.2) $ (3.6)

Commitments and contingencies (

Commitments and contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
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 31, January 1, January 2, Balance at beginning of year $ 5.1 $ 5.2 $ 8.6 Current period provision for expected credit losses 0.6 0.2 0.7 Write-offs charged against allowance (1.3) (0.1) (4.3) Foreign currency translation (0.2) (0.2) 0.2 Balance at end of year $ 4.2 $ 5.1 $ 5.2

Significant accounting polici_4

Significant accounting policies - Foreign currency transaction and translation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
New Accounting Pronouncements or Change in Accounting Principle
Foreign currency transaction gain (loss)	$ (5.8)	$ (33.2)	$ (18.9)
Operating income (loss)
New Accounting Pronouncements or Change in Accounting Principle
Foreign currency transaction gain (loss)	5.7	(7.1)	(7.7)
Other Income
New Accounting Pronouncements or Change in Accounting Principle
Foreign currency transaction gain (loss)	$ 10.2	$ (7.6)	$ 5.3

Significant accounting polici_5

Significant accounting policies - Selling, general and administrative expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Condensed Income Statements
Selling, general and administrative expenses	$ 853.7	$ 852.7	$ 776.9
Shipping and handling
Condensed Income Statements
Selling, general and administrative expenses	$ 174.8	$ 170.1	$ 137.2

Significant accounting polici_6

Significant accounting policies - Research and development costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Research and development costs	$ 69.4	$ 70.7	$ 67.2

Significant accounting polici_7

Significant accounting policies - Advertising costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Advertising cost	$ 16.8	$ 12	$ 6.7

Significant accounting polici_8

Significant accounting policies - Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Accounting Policies [Abstract]
Percentage of LIFO inventory	28.90%	31.20%
Increase in inventory balances if measured with FIFO method	$ 28.7	$ 9.3

Significant accounting polici_9

Significant accounting policies - Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Goodwill impairment loss	$ 0	$ 0	$ 0

Significant accounting polic_10

Significant accounting policies - Other Intangibles (Details)	12 Months Ended
	Dec. 31, 2022
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

Significant accounting polic_11

Significant accounting policies - Property, plant and equipment (Details)	12 Months Ended
	Dec. 31, 2022
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

Significant accounting polic_12

Significant accounting policies - Leases (Details)	Dec. 31, 2022
Real estate
Property, Plant and Equipment
Percentage of total lease liability (percent)	93%

Significant accounting polic_13

Significant accounting policies - Restricted cash (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Restricted cash	$ 3	$ 2.7	$ 2.7

Significant accounting polic_14

Significant accounting policies - Trade accounts receivable (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Accounting Policies [Abstract]
Trade account receivables held for sale	$ 108.2	$ 106.9
Expenses related to the reclassification of receivables	$ 4.9	$ 1.4

Segment information - Sales and

Segment information - Sales and Adjusted EBITDA by Reporting Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Segment Reporting Information
Net sales	$ 3,554.2	$ 3,474.4	$ 2,793
Adjusted EBITDA	680.6	735.8	506.6
Power Transmission
Segment Reporting Information
Net sales	2,173.7	2,216.3	1,800.2
Adjusted EBITDA	404	500.6	353
Fluid Power
Segment Reporting Information
Net sales	1,380.5	1,258.1	992.8
Adjusted EBITDA	$ 276.6	$ 235.2	$ 153.6

Segment information - Net Sales

Segment information - Net Sales by Geographic Regions and Markets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Revenues from External Customers and Long-Lived Assets
Net sales	$ 3,554.2	$ 3,474.4	$ 2,793
Developed
Revenues from External Customers and Long-Lived Assets
Net sales	2,281.4	2,214.6	1,787.8
Emerging
Revenues from External Customers and Long-Lived Assets
Net sales	1,272.8	1,259.8	1,005.2
Power Transmission
Revenues from External Customers and Long-Lived Assets
Net sales	2,173.7	2,216.3	1,800.2
Power Transmission | U.S.
Revenues from External Customers and Long-Lived Assets
Net sales	636.8	621.8	538.3
Power Transmission | North America, excluding U.S.
Revenues from External Customers and Long-Lived Assets
Net sales	205.6	179.8	147.3
Power Transmission | United Kingdom (“U.K.”)
Revenues from External Customers and Long-Lived Assets
Net sales	45.1	50.2	44.3
Power Transmission | EMEA, excluding U.K.
Revenues from External Customers and Long-Lived Assets
Net sales	598.3	640.6	487.4
Power Transmission | East Asia and India
Revenues from External Customers and Long-Lived Assets
Net sales	295.5	308.6	251.8
Power Transmission | Greater China
Revenues from External Customers and Long-Lived Assets
Net sales	300.3	344.2	279.5
Power Transmission | South America
Revenues from External Customers and Long-Lived Assets
Net sales	92.1	71.1	51.6
Fluid Power
Revenues from External Customers and Long-Lived Assets
Net sales	1,380.5	1,258.1	992.8
Fluid Power | U.S.
Revenues from External Customers and Long-Lived Assets
Net sales	733.3	615.5	513.9
Fluid Power | North America, excluding U.S.
Revenues from External Customers and Long-Lived Assets
Net sales	208.8	193.8	146.9
Fluid Power | United Kingdom (“U.K.”)
Revenues from External Customers and Long-Lived Assets
Net sales	68.9	58.3	28.2
Fluid Power | EMEA, excluding U.K.
Revenues from External Customers and Long-Lived Assets
Net sales	200	198.8	151
Fluid Power | East Asia and India
Revenues from External Customers and Long-Lived Assets
Net sales	75.4	86.3	60.5
Fluid Power | Greater China
Revenues from External Customers and Long-Lived Assets
Net sales	44.4	67.8	66.9
Fluid Power | South America
Revenues from External Customers and Long-Lived Assets
Net sales	$ 49.7	$ 37.6	$ 25.4

Segment information - Reconcili

Segment information - Reconciliation of Adjusted EBITDA to Net Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Segment Reporting Information
Net income from continuing operations	$ 242.9	$ 331.3	$ 90.3
Income tax expense (benefit)	14.9	18.4	(19.3)
Income from continuing operations before taxes	257.8	349.7	71
Interest expense	139.4	133.5	154.3
Other (income) expense	(13.2)	0.9	(14.2)
Operating income from continuing operations	384	484.1	211.1
Depreciation and amortization	217.2	222.6	218.6
Transaction-related expenses	2.1	3.7	5.2
Asset impairments	1.1	0.6	5.2
Restructuring expenses	9.5	7.4	37.3
Share-based compensation expense	44.3	24.6	19.8
Sponsor fees (included in other operating expense)	0	0	1.9
Inventory impairments and adjustments (included in cost of sales)	20.9	1.4	1.4
Other items not directly related to current operations	0.2	(9.3)	(2.9)
Adjusted EBITDA	680.6	735.8	506.6
Inventory adjustments	19.4
Cost of Sales
Segment Reporting Information
Severance expenses (included in cost of sales)	0.8	0	1
SG&A
Segment Reporting Information
Severance expenses (included in SG&A)	$ 0.5	$ 0.7	$ 8

Segment information - Long live

Segment information - Long lived assets by geography (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Revenues from External Customers and Long-Lived Assets
Long-lived assets	$ 637.5	$ 670.3
U.S.
Revenues from External Customers and Long-Lived Assets
Long-lived assets	166.5	172.9
Rest of North America
Revenues from External Customers and Long-Lived Assets
Long-lived assets	125.8	127.1
U.K.
Revenues from External Customers and Long-Lived Assets
Long-lived assets	28.6	32.8
Rest of EMEA
Revenues from External Customers and Long-Lived Assets
Long-lived assets	160.7	151.3
East Asia and India
Revenues from External Customers and Long-Lived Assets
Long-lived assets	38.9	45.7
Greater China
Revenues from External Customers and Long-Lived Assets
Long-lived assets	100.1	124.8
South America
Revenues from External Customers and Long-Lived Assets
Long-lived assets	$ 16.9	$ 15.7

Segment information - Narrative

Segment information - Narratives (Details)	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
U.S. | Geographic concentration risk | Revenue
Segment Reporting Information
Concentration risk (percent)	39.60%	36.30%	39%
North America | Customer concentration risk | Accounts receivable | Major customer one
Segment Reporting Information
Concentration risk (percent)	8.40%	13.90%
North America | Customer concentration risk | Accounts receivable | Major customer two
Segment Reporting Information
Concentration risk (percent)	15.30%	10%

Restructuring and other strat_3

Restructuring and other strategic initiatives - Income Statement Location (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Restructuring Cost and Reserve
Total restructuring expenses	$ 12.1	$ 9.4	$ 43.9
—Impairment of fixed and other assets	1.1	0.6	5.2
Total expenses related to other strategic initiatives	1.3	0.7	9
—Impairment of inventory
Restructuring Cost and Reserve
Total restructuring expenses	1.5	1.4	1.4
Restructuring expenses:
Restructuring Cost and Reserve
Total restructuring expenses	9.5	7.4	37.3
Restructuring expenses: | —Severance expenses
Restructuring Cost and Reserve
Total restructuring expenses	4.9	0.7	24
Restructuring expenses: | —Non-severance labor and benefit expenses
Restructuring Cost and Reserve
Total restructuring expenses	0.5	2.5	3.8
Restructuring expenses: | —Consulting expenses
Restructuring Cost and Reserve
Total restructuring expenses	1.8	2.2	2.1
Restructuring expenses: | —Other net restructuring expenses
Restructuring Cost and Reserve
Total restructuring expenses	2.3	2	7.4
Cost of Sales
Restructuring Cost and Reserve
—Severance expenses included in cost of sales / SG&A	0.8	0	1
—Severance expenses included in SG&A
Restructuring Cost and Reserve
—Severance expenses included in cost of sales / SG&A	$ 0.5	$ 0.7	$ 8

Restructuring and other strat_4

Restructuring and other strategic initiatives - Narratives (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Restructuring Cost and Reserve
Restructuring expenses	$ 12.1	$ 9.4	$ 43.9
—Impairment of fixed and other assets	1.1	0.6	5.2
Other Net Restructuring Expenses | Russian Operations
Restructuring Cost and Reserve
Restructuring expenses	3.5
Severance costs	0.7
Impairment of inventory	1.1
—Impairment of fixed and other assets	1.1
Other Net Restructuring Expenses | Middle East Business
Restructuring Cost and Reserve
Restructuring expenses		1
Inventory of Impairment
Restructuring Cost and Reserve
Restructuring expenses	1.5	1.4	$ 1.4
European Office and Distribution Center
Restructuring Cost and Reserve
Severance costs		9.4
European Office and Distribution Center | Severance Costs
Restructuring Cost and Reserve
Restructuring expenses	2.5	3.4
European Office and Distribution Center | Employee Relocation
Restructuring Cost and Reserve
Restructuring expenses	$ 2.4
Korean Facility
Restructuring Cost and Reserve
—Impairment of fixed and other assets		0.6
Korean Facility | Facility Closing
Restructuring Cost and Reserve
Restructuring expenses		3.7
Korean And France
Restructuring Cost and Reserve
Gain on disposal of buildings		3.1
North America | Inventory of Impairment
Restructuring Cost and Reserve
Restructuring expenses		$ 1.4

Restructuring and other strat_5

Restructuring and other strategic initiatives - Restructuring Costs by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Restructuring Cost and Reserve
Restructuring expenses	$ 12.1	$ 9.4	$ 43.9
Power Transmission
Restructuring Cost and Reserve
Restructuring expenses	5.8	5.6	32.6
Fluid Power
Restructuring Cost and Reserve
Restructuring expenses	$ 6.3	$ 3.8	$ 11.3

Restructuring and other strat_6

Restructuring and other strategic initiatives - Restructuring Reserve Activity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Restructuring reserves
Balance as of the beginning of the period	$ 6.5	$ 17.9
Utilized during the period	(8.1)	(18)
Charge for the period	9.6	8
Released during the period	(0.1)	(0.6)
Foreign currency translation	(0.4)	(0.8)
Balance as of the end of the period	$ 7.5	$ 6.5

Income taxes - Income from cont

Income taxes - Income from continuing operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Tax Examination
Income from continuing operations before taxes	$ 257.8	$ 349.7	$ 71
U.K.
Income Tax Examination
Income from domestic operations	(11)	(32.9)	(82.7)
U.S.
Income Tax Examination
Income from foreign operations	17.1	63.5	(105.3)
Other foreign
Income Tax Examination
Income from foreign operations	$ 251.7	$ 319.1	$ 259

Income taxes - Income tax expen

Income taxes - Income tax expense (benefit) on income from continuing operations analyzed (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Current tax
U.S.	$ 42	$ 12.9	$ 5.4
Total current tax expense	94.6	112.7	28.4
Deferred income tax
U.S.	(54.5)	(61.7)	2
Total deferred income tax benefit	(79.7)	(94.3)	(47.7)
Income tax expense (benefit)	14.9	18.4	(19.3)
U.K.
Current tax
Current tax, foreign	(1.7)	4.2	(0.1)
Deferred income tax
Deferred tax, foreign	(2.5)	(18.1)	(19.2)
Other foreign
Current tax
Current tax, foreign	54.3	95.6	23.1
Deferred income tax
Deferred tax, foreign	$ (22.7)	$ (14.5)	$ (30.5)

Income taxes - Schedule of effe

Income taxes - Schedule of effective income tax rate reconciliation (Details)	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Effective Income Tax Rate Reconciliation, Percent
Corporation tax rate	19%	19%	19%
Effect of:
—State tax provision, net of Federal benefit	(0.20%)	1.40%	(0.90%)
—Provision for unrecognized income tax benefits	(9.80%)	(0.40%)	(30.80%)
—Corporate owned life insurance	(3.10%)	(2.40%)	(11.30%)
—Tax on international operations	20.60%	(31.20%)	(4.40%)
—Manufacturing incentives	(3.90%)	(1.80%)	(4.40%)
—Change in valuation allowance	(20.60%)	36.30%	(2.80%)
—Deferred income tax rate changes	(0.10%)	(17.80%)	(3.80%)
—Currency exchange rate movements	1.90%	0.80%	8.20%
—Other permanent differences	2%	1.40%	4%
Reported effective income tax rate	5.80%	5.30%	(27.20%)

Income taxes - Narratives (Deta

Income taxes - Narratives (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Operating Loss Carryforwards
Deferred tax asset, net	$ 846,700,000	$ 844,800,000
Expiration of manufacturing incentives	10,000,000
Operating loss carryforwards, not subject to expiration	3,128,400,000
Operating loss carryforwards, subject to expiration	3,285,800,000
Operating loss carryforward net of valuation allowance	566,600,000
Operating loss carryforwards, valuation allowance	1,009,400,000
Interest expense carryforward	609,100,000
Deferred tax interest expense net of valuation allowance	122,000,000
Deferred tax asset, interest expense valuation allowance	26,300,000
Taxable temporary differences related to investments in subsidiaries	1,660,400,000
Deferred tax liability related to subsidiaries	18,600,000	21,000,000
Disallowed interest carryforward			$ 26,000,000
Unrecognized tax benefit that if recognized would impact tax rate	60,900,000
Accrued taxes interest and penalties	13,700,000	14,000,000	$ 12,300,000
Anticipated decrease in income tax liability from settlement of tax audit	11,500,000
Capital loss carryforward
Operating Loss Carryforwards
Deferred tax asset, net	0
Tax credit carryforward	730,000,000
Tax credit carryforward, valuation allowance	182,100,000
Foreign tax credit carryforward
Operating Loss Carryforwards
Deferred tax asset, net	34,600,000
Tax credit carryforward	89,400,000
Tax credit carryforward, valuation allowance	54,800,000
Luxembourg | Net Operating Loss
Operating Loss Carryforwards
Deferred tax asset, net		129,900,000
Domestic And Foreign Authorities
Operating Loss Carryforwards
Operating loss carry forward	6,299,900,000
State and Local Jurisdiction
Operating Loss Carryforwards
Operating loss carry forward	114,300,000
U.S and U.K
Operating Loss Carryforwards
Operating loss carryforwards, not subject to expiration	717,900,000
Operating loss carryforwards, subject to expiration	12,100,000
U.S.
Operating Loss Carryforwards
Deferred tax asset, net	15,300,000	$ 53,400,000
U.S.
Operating Loss Carryforwards
Manufacturing incentives utilized	$ 6,700,000

Income taxes - Change in deferr

Income taxes - Change in deferred tax asset valuation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Luxembourg finite-lived net operating losses
Valuation Allowance
Change in valuation allowance, amount	$ 0	$ 126.8	$ 0
Luxembourg indefinite-lived net operating losses
Valuation Allowance
Change in valuation allowance, amount	(14.8)	3.1	0
U.S. foreign tax credits
Valuation Allowance
Change in valuation allowance, amount	(39.9)	(53.4)	5.4
Disallowed interest carryforwards
Valuation Allowance
Change in valuation allowance, amount	0	0	(11.7)
Rate change
Valuation Allowance
Change in valuation allowance, amount	$ 0	$ 48.3	$ 0

Income taxes - Schedule of defe

Income taxes - Schedule of deferred tax assets (liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Deferred income tax assets:
Accounts receivable	$ 4.6	$ 3.8
Lease liabilities	39.2	37.2
Accrued expenses	45.3	36.2
Post-retirement benefit obligations	14	4.9
Compensation	18.8	19.9
Net operating losses	1,576	1,629.4
Capital losses	182.1	200.8
Credits	91.9	117.1
Interest	148.3	140.2
Other items	0	4.4
Deferred tax assets, gross	2,120.2	2,193.9
Valuation allowances	(1,273.5)	(1,349.1)
Total deferred income tax assets	846.7	844.8
Deferred income tax liabilities:
Inventories	(11.2)	(16.6)
Property, plant and equipment	(34.2)	(37.8)
Lease right-of-use assets	(33.3)	(31.3)
Intangible assets	(340.9)	(382.5)
Undistributed earnings	(18.6)	(21)
Other items	(0.2)	0
Total deferred income tax liabilities	(438.4)	(489.2)
Net deferred income tax assets	$ 408.3	$ 355.6

Income taxes - Schedule of unre

Income taxes - Schedule of unrecognized tax positions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Reconciliation of Unrecognized Tax Benefits
At the beginning of the period	$ 104.6	$ 121.6	$ 147.3
Increases for tax positions related to the current period	6.5	6.7	6.9
Increases for tax positions related to prior periods	0.4	0.7	0.5
Decreases for tax positions related to prior periods	0	(12.1)	(18.9)
Decreases related to settlements	(2.8)	0	(14)
Decreases due to lapsed statute of limitations	(27.6)	(7.2)	(5.8)
Foreign currency translation	(5.1)	(5.1)
Foreign currency translation			5.6
At the end of the period	$ 76	$ 104.6	$ 121.6

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Earnings Per Share [Abstract]
Net income attributable to shareholders	$ 220.8	$ 297.1	$ 79.4
Weighted average number of shares outstanding (in shares)	284,063,083	291,623,523	290,681,615
Dilutive effect of share-based awards (in shares)	3,523,127	5,670,552	1,434,349
Diluted weighted average number of shares outstanding (in shares)	287,586,210	297,294,075	292,115,964
Number of anti-dilutive shares excluded from diluted earnings per share calculation (in shares)	7,538,260	3,981,424	5,257,654
Basic earnings per share (in usd per share)	$ 0.78	$ 1.02	$ 0.27
Diluted earnings per share (in usd per share)	$ 0.77	$ 1	$ 0.27

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 195.9	$ 199.6
Work in progress	42.3	43.4
Finished goods	418	439.6
Total inventories	$ 656.2	$ 682.6

Property, plant and equipment -

Property, plant and equipment - Schedule of Property Plan and Equipment (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Property, Plant and Equipment
Property, plant and equipment, gross	$ 1,306.9	$ 1,283.5
Less: Accumulated depreciation and impairment	(669.4)	(613.2)
Total	637.5	670.3
Land and buildings
Property, Plant and Equipment
Property, plant and equipment, gross	321.4	329.2
Machinery, equipment and vehicles
Property, Plant and Equipment
Property, plant and equipment, gross	884.6	873.3
Assets under construction
Property, Plant and Equipment
Property, plant and equipment, gross	$ 100.9	$ 81

Property, plant and equipment_2

Property, plant and equipment - Narratives (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Property, Plant and Equipment [Abstract]
Depreciation	$ 88.8	$ 90	$ 89.3
Impairment of fixed assets	0.2	0.6	$ 5.2
Right-of-use assets	$ 3.5	$ 4.1

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Cost and carrying amount
Beginning balance	$ 2,063	$ 2,120.2
Foreign currency translation	(81.9)	(57.2)
Ending balance	1,981.1	2,063
Power Transmission
Cost and carrying amount
Beginning balance	1,388.1	1,434.4
Foreign currency translation	(72.9)	(46.3)
Ending balance	1,315.2	1,388.1
Fluid Power
Cost and carrying amount
Beginning balance	674.9	685.8
Foreign currency translation	(9)	(10.9)
Ending balance	$ 665.9	$ 674.9

Intangible assets - Finite-Live

Intangible assets - Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Finite-Lived Intangible Assets
Finite-lived, cost	$ 2,169.5	$ 2,220.4
Finite-lived, accumulated amortization and impairment	(1,148.5)	(1,047.6)
Finite-lived, net	1,021	1,172.8
Indefinite-lived, cost	513.4	513.4
Indefinite-lived, accumulated amortization and impairment	(44)	(44)
Indefinite-lived, net	469.4	469.4
Cost	2,682.9	2,733.8
Accumulated amortization and impairment	(1,192.5)	(1,091.6)
Net	1,490.4	1,642.2
—Customer relationships
Finite-Lived Intangible Assets
Finite-lived, cost	1,973.7	2,031.7
Finite-lived, accumulated amortization and impairment	(993.2)	(901.6)
Finite-lived, net	980.5	1,130.1
—Technology
Finite-Lived Intangible Assets
Finite-lived, cost	90.4	90.9
Finite-lived, accumulated amortization and impairment	(89.6)	(89.4)
Finite-lived, net	0.8	1.5
—Capitalized software
Finite-Lived Intangible Assets
Finite-lived, cost	105.4	97.8
Finite-lived, accumulated amortization and impairment	(65.7)	(56.6)
Finite-lived, net	$ 39.7	$ 41.2

Intangible assets - Narrative (

Intangible assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 128.4	$ 132.6	$ 129.3
Intangible assets, foreign currency translation gain (loss)	$ (32.9)	$ (24.3)

Intangible assets - Schedule of

Intangible assets - Schedule of future amortization of finite-lived intangible assets (Details) $ in Millions	Dec. 31, 2022 USD ($)
Fiscal year:
—2023	$ 128.7
—2024	127.8
—2025	122
—2026	121.1
—2027	$ 120.5

Leases - Quantitative Disclosur

Leases - Quantitative Disclosures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Lease expenses
Operating lease expenses	$ 30.5	$ 31.5	$ 29.9
—Finance lease amortization expenses	1.2	1.1	0.9
—Interest on lease liabilities	0.1	0.1	0.1
Short-term lease expenses	7.2	6.7	5.8
Variable lease expenses	6	7.9	7
Total lease expenses	45	47.3	43.7
Right-of-use assets obtained in exchange for new operating lease liabilities	34.9	29.9	17.7
Assets obtained in exchange for new finance lease liabilities	0.8	1.5	2
Gain on sale and leaseback transactions, net	0	(9.3)	0
Cash paid for amounts included in the measurement of lease liabilities:
—Operating cash flows from finance leases	0.1	0.1	0
—Operating cash flows from operating leases	27.6	30.1	30.3
—Financing cash flows from finance leases	1.3	1.2	1
Cash paid for amounts included in the measurement of lease liabilities:	$ 29	$ 31.4	$ 31.3
Weighted-average remaining lease term — finance leases	2 years 10 months 24 days	4 years	5 years 3 months 18 days
Weighted-average remaining lease term — operating leases	8 years 6 months	9 years	9 years 4 months 24 days
Weighted-average discount rate — finance leases (percent)	3.20%	2.50%	3%
Weighted-average discount rate — operating leases (percent)	5.40%	5.10%	5.50%

Leases - Minimum Future Payment

Leases - Minimum Future Payments (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Operating leases
Next 12 months	$ 29.2
Year 2	24.7
Year 3	22.6
Year 4	17.6
Year 5	15.7
Year 6 and beyond	68.6
Total lease payments	178.4
Interest	(34.1)
Total present value of lease liabilities	144.3	$ 135.1
Finance leases
Next 12 months	1.1
Year 2	0.7
Year 3	0.5
Year 4	0.2
Year 5	0
Year 6 and beyond	0
Total lease payments	2.5
Interest	(0.1)
Total present value of lease liabilities	$ 2.4	$ 3.3

Leases - Balance Sheet Location

Leases - Balance Sheet Location (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Operating leases
Right-of-use assets	$ 132.2	$ 124.2
Short-term lease liabilities (included in “Accrued expenses and other current liabilities”)	$ 24	$ 20.9
Operating Lease, Liability, Current, Statement of Financial Position	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Long-term lease liabilities	$ 120.3	$ 114.2
Operating Lease, Liability, Noncurrent, Statement of Financial Position	Lease liabilities	Lease liabilities
Total lease liabilities	$ 144.3	$ 135.1
Finance leases
Right-of-use assets	3.5	4.1
Short-term lease liabilities (included in “Accrued expenses and other current liabilities”)	$ 0.8	$ 1.1
Finance Lease, Liability, Current, Statement of Financial Position	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Long-term lease liabilities	$ 1.6	$ 2.2
Finance Lease, Liability, Noncurrent, Statement of Financial Position	Lease liabilities	Lease liabilities
Total lease liabilities	$ 2.4	$ 3.3

Leases - Narratives (Details)

Leases - Narratives (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
Amortization of right of use assets	$ 22.9	$ 23.7	$ 22.8

Derivative financial instrume_3

Derivative financial instruments - Fair Values of Derivative Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Derivatives, Fair Value
Derivative liabilities	$ (79.4)	$ (62)
Net	$ (1.9)	$ (51.4)
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
Prepaid expenses and other assets
Derivatives, Fair Value
Derivative assets	$ 44.8	$ 2.9
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other assets	Prepaid expenses and other assets
Other non- current assets
Derivatives, Fair Value
Derivative assets	$ 32.7	$ 7.7
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other non-current assets	Other non-current assets
Accrued expenses and other current liabilities
Derivatives, Fair Value
Derivative liabilities	$ (12.1)	$ (34.6)
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Other non- current liabilities
Derivatives, Fair Value
Derivative liabilities	$ (67.3)	$ (27.4)
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other non-current liabilities	Other non-current liabilities
Derivatives designated as hedging instruments: | —Currency swaps recognized in other expenses
Derivatives, Fair Value
Net	$ (35.9)	$ (19.8)
Derivatives designated as hedging instruments: | —Currency swaps recognized in other expenses | Prepaid expenses and other assets
Derivatives, Fair Value
Derivative assets	9.3	0
Derivatives designated as hedging instruments: | —Currency swaps recognized in other expenses | Other non- current assets
Derivatives, Fair Value
Derivative assets	0	0
Derivatives designated as hedging instruments: | —Currency swaps recognized in other expenses | Accrued expenses and other current liabilities
Derivatives, Fair Value
Derivative liabilities	0	(19.8)
Derivatives designated as hedging instruments: | —Currency swaps recognized in other expenses | Other non- current liabilities
Derivatives, Fair Value
Derivative liabilities	(45.2)	0
Derivatives designated as hedging instruments: | —Interest rate caps
Derivatives, Fair Value
Net		(1.8)
Derivatives designated as hedging instruments: | —Interest rate caps | Accrued expenses and other current liabilities
Derivatives, Fair Value
Derivative liabilities		(1.3)
Derivatives designated as hedging instruments: | —Interest rate caps | Other non- current liabilities
Derivatives, Fair Value
Derivative liabilities		(0.5)
Derivatives designated as hedging instruments: | —Interest rate swaps
Derivatives, Fair Value
Net	33.2	(32.1)
Derivatives designated as hedging instruments: | —Interest rate swaps | Prepaid expenses and other assets
Derivatives, Fair Value
Derivative assets	33.3	0
Derivatives designated as hedging instruments: | —Interest rate swaps | Other non- current assets
Derivatives, Fair Value
Derivative assets	32.7	7.7
Derivatives designated as hedging instruments: | —Interest rate swaps | Accrued expenses and other current liabilities
Derivatives, Fair Value
Derivative liabilities	(10.7)	(12.9)
Derivatives designated as hedging instruments: | —Interest rate swaps | Other non- current liabilities
Derivatives, Fair Value
Derivative liabilities	(22.1)	(26.9)
Derivatives not designated as hedging instruments: | —Currency forward contracts
Derivatives, Fair Value
Derivative assets	2.2	2.9
Derivative liabilities	(1.4)	(0.6)
Net	$ 0.8	$ 2.3

Derivative financial instrume_4

Derivative financial instruments - Narratives (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2022 USD ($)	Nov. 16, 2022 USD ($)	Jul. 02, 2022 EUR (€)	Jan. 01, 2022 EUR (€)	Jan. 01, 2022 USD ($)
Derivative
Amount of OCI related to interest rate hedge expected to be reclassified to earnings in the next 12 months					$ (24,400,000)
Interest rate swaps due June 30, 2020 through June 30, 2025
Derivative
Notional amount of derivative contracts									$ 870,000,000
July 1, 2019 to June 30, 2023
Derivative
Notional amount of derivative contracts | €								€ 425,000,000
Interest Rate Swaps Due November 10, 2022 Through November 16, 2027
Derivative
Notional amount of derivative contracts						$ 385,000,000
—Interest rate swaps
Derivative
Notional amount of derivative contracts					1,255,000,000				870,000,000
Derivatives not designated as hedging instruments:
Derivative
Gains on derivative, recognized in the income statement	$ 6,300,000	$ 5,100,000	$ (1,500,000)
Derivatives not designated as hedging instruments: | —Currency swaps recognized in other expenses
Derivative
Notional amount of derivative contracts | €				€ 756,100,000				€ 254,500,000
Gains on derivative, recognized in the income statement	0	0	400,000
Derivatives not designated as hedging instruments: | —Currency swaps recognized in other expenses | Euro Term Loan
Derivative
Notional amount of derivative contracts | €				501,600,000
Derivatives not designated as hedging instruments: | —Currency forward contracts recognized in SG&A
Derivative
Notional amount of derivative contracts					0				0
Gains on derivative, recognized in the income statement	6,300,000	5,100,000	(1,900,000)
Derivatives not designated as hedging instruments: | Forward contracts
Derivative
Notional amount of derivative contracts					$ 150,500,000				$ 171,900,000
Derivatives designated as hedging instruments: | Euro Term Loan | Secured Debt | Net Investment Hedges
Derivative
Debt instrument principal amount | €				€ 147,000,000			€ 25,000,000
Derivatives designated as hedging instruments: | —Currency swaps recognized in other expenses | Net Investment Hedges
Derivative
Gains on derivative, recognized in the income statement	$ 5,800,000	$ 1,800,000	$ 3,700,000

Derivative financial instrume_5

Derivative financial instruments - Net Investment Hedging Instruments in OCI (Details) - Net Investment Hedges - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Derivative Instruments, Gain (Loss)
Total net fair value (losses) gains	$ (5.7)	$ 33.8	$ (41.8)
—Euro-denominated debt
Derivative Instruments, Gain (Loss)
Total net fair value (losses) gains	10.6	12.4	(15.5)
—Designated cross currency swaps
Derivative Instruments, Gain (Loss)
Total net fair value (losses) gains	$ (16.3)	$ 21.4	$ (26.3)

Derivative financial instrume_6

Derivative financial instruments - OCI Movement (Details) - Interest Rate Contract - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Movement recognized in OCI in relation to:
—Fair value gain (loss) on cash flow hedges	$ 61.7	$ 11.7	$ (29.1)
—Amortization to net income of prior period fair value losses	17.9	17.9	9.1
—Deferred OCI reclassified to net income	(4)	3.7	3.6
Total movement	$ 75.6	$ 33.3	$ (16.4)

Derivative financial instrume_7

Derivative financial instruments - Gains From Derivative Instruments Not Designated As Hedging Instruments (Details) - Derivatives not designated as hedging instruments: - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Derivative Instruments, Gain (Loss)
Gains on derivative, recognized in the income statement	$ 6.3	$ 5.1	$ (1.5)
—Currency forward contracts recognized in SG&A
Derivative Instruments, Gain (Loss)
Gains on derivative, recognized in the income statement	6.3	5.1	(1.9)
—Currency swaps recognized in other expenses
Derivative Instruments, Gain (Loss)
Gains on derivative, recognized in the income statement	$ 0	$ 0	$ 0.4

Fair value measurement - Schedu

Fair value measurement - Schedule of Carrying Amount and Fair Value of Debt (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Carrying  amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Current	$ 36.6	$ 38.1
Non-current	2,426.4	2,526.5
Fair value of debt	2,463	2,564.6
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Current	36.2	37.9
Non-current	2,408.4	2,553
Fair value of debt	$ 2,444.6	$ 2,590.9

Fair value measurement - Narrat

Fair value measurement - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Debt Instrument
—Impairment of fixed and other assets	$ 1.1	$ 0.6	$ 5.2
Asset impairments	$ 1.1	$ 0.6	$ 5.2
Secured Credit Facilities | Secured Debt | LIBOR
Debt Instrument
Variable rate (percent)	0.75%
Two Dollar Term Loan | Term loan | SOFR
Debt Instrument
Variable rate (percent)	0.50%

Fair value measurement - Sche_2

Fair value measurement - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative liabilities	$ (79.4)	$ (62)
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Equity investments		0.6
Derivative assets	77.5	10.6
Derivative liabilities	(79.4)	(62)
Fair Value, Measurements, Recurring | Quoted prices in active markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Equity investments		0.6
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Significant observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Equity investments		0
Derivative assets	77.5	10.6
Derivative liabilities	$ (79.4)	$ (62)

Debt - Schedule of Long-term de

Debt - Schedule of Long-term debt (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Feb. 24, 2021
Debt Instrument
Total principal of debt	$ 2,491.4	$ 2,579.2
Deferred issuance costs	(45.5)	(31.5)
Accrued interest	17.1	16.9
Total carrying value of debt	2,463	2,564.6
Debt, current portion	36.6	38.1
Debt, less current portion	2,426.4	2,526.5
Secured debt: | —Dollar Term Loan
Debt Instrument
Total principal of debt	1,923.4	1,363.7
Deferred issuance costs			$ (8.6)
Secured debt: | —Euro Term Loan
Debt Instrument
Total principal of debt	0	647.5
Unsecured debt: | —6.25% Dollar Senior Notes due 2026
Debt Instrument
Total principal of debt	$ 568	$ 568
Stated interest rate on debt (percent)	6.25%

Debt - Schedule of principal ma

Debt - Schedule of principal maturities due (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Fiscal year:
—2023	$ 19.5
—2024	19.5
—2025	19.5
—2026	587.5
—2027	1,300.5
Thereafter	544.9
Total carrying value of debt	$ 2,491.4	$ 2,579.2

Debt - Debt Issuances and Redem

Debt - Debt Issuances and Redemptions Narratives (Details) € in Millions					1 Months Ended			12 Months Ended
	Nov. 16, 2022 USD ($)	Nov. 16, 2022 EUR (€)	Nov. 18, 2021 USD ($)	Dec. 31, 2020 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2021 EUR (€)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)
Debt Instrument
Proceeds from long-term debt								$ 645,000,000	$ 0	$ 0
Repayments of debt								$ 676,900,000	$ 91,000,000	$ 331,200,000
—Asset-backed revolver
Debt Instrument
Deferred financing cost recognized			$ 1,300,000
New Dollar Term Loan | Secured debt:
Debt Instrument
Debt instrument principal amount	$ 575,000,000
Stated interest rate on debt (percent)								7.82%
Quarterly amortization payment rate (percent)	1%	1%
Deferred financing cost recognized	$ 23,200,000
New Dollar Term Loan | Secured debt: | Option Two
Debt Instrument
Stated interest rate on debt (percent)	2.50%
New Dollar Term Loan | Secured debt: | Minimum | Option Two
Debt Instrument
Stated interest rate on debt (percent)	1.50%
New Dollar Term Loan | Secured debt: | SOFR | Option One
Debt Instrument
Variable rate (percent)	3.50%	3.50%						3.50%
New Dollar Term Loan | Secured debt: | SOFR | Minimum | Option One
Debt Instrument
Variable rate (percent)	0.50%	0.50%						0.50%
—Euro Term Loan | Secured debt:
Debt Instrument
Repayments of debt		€ 563.8				$ 69,500,000	€ 58.7
Accrued and unpaid interest rate | €		€ 1
Deferred financing cost recognized	$ 2,200,000					$ 400,000
—Dollar Term Loan | Secured debt:
Debt Instrument
Repayments of debt				$ 300,000,000
Quarterly amortization payment rate (percent)								0.25%
Deferred financing cost recognized				$ 3,700,000
Revolving credit facility | —Asset-backed revolver
Debt Instrument
Proceeds from long-term debt					$ 70,000,000

Debt - Dollar and Euro Term Loa

Debt - Dollar and Euro Term Loans Narratives (Details) $ in Millions				12 Months Ended
	Nov. 16, 2022	Feb. 24, 2021 USD ($)	Feb. 23, 2021	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)	Oct. 02, 2021
Debt Instrument
Debt issuance costs, net				$ 45.5	$ 31.5
Secured Debt | Existing DollarTerm Loans
Debt Instrument
Debt instrument, interest rate, decrease		0.25%		(0.25%)
Total net leverage ratio		3.75				3.75
Stated interest rate on debt (percent)				2.50%
Interest rate during period on debt (percent)				6.88%
Quarterly amortization payment on debt				$ 13.8
Secured Debt | Existing DollarTerm Loans | LIBOR
Debt Instrument
Variable interest rate on debt (percent)		0.75%	1%	0.75%
Secured Debt | Dollar Term Loan
Debt Instrument
Interest paid, including capitalized interest, operating and investing activities		$ 3.7
Debt issuance costs, net		8.6
Debt issuance costs, non current		$ 6.9
Quarterly amortization payment rate (percent)				0.25%
Quarterly amortization payment on debt					13.8
Secured Debt | New Dollar Term Loan
Debt Instrument
Stated interest rate on debt (percent)				7.82%
Quarterly amortization payment rate (percent)	1%
Quarterly amortization payment on debt				$ 1.4
Secured Debt | New Dollar Term Loan | SOFR | Option One
Debt Instrument
Variable interest rate on debt (percent)	3.50%			3.50%
Secured Debt | New Dollar Term Loan | SOFR | Option One | Minimum
Debt Instrument
Variable interest rate on debt (percent)	0.50%			0.50%
Secured Debt | Euro Term Loan
Debt Instrument
Quarterly amortization payment on debt				$ 5.1	$ 7.6

Debt - Foreign Exchange Gain (D

Debt - Foreign Exchange Gain (Details) - Secured Debt - Euro Term Loan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Debt Instrument
Gain (loss) recognized in statement of operations	$ 45.2	$ 38.2	$ (51.4)
Gain (loss) recognized in OCI	10.6	12.4	(15.5)
Total gain (loss)	$ 55.8	$ 50.6	$ (66.9)

Debt - Unsecured Senior Notes N

Debt - Unsecured Senior Notes Narratives (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Debt Instrument
Principal amount of debt outstanding	$ 2,491.4	$ 2,579.2
Unsecured debt
Debt Instrument
Redemption price in the event of change in control (percent)	101%
Redemption price in the event of sale (percent)	100%
Unsecured debt | —6.25% Dollar Senior Notes due 2026
Debt Instrument
Principal amount of debt outstanding	$ 568	$ 568
Stated interest rate on debt (percent)	6.25%

Debt - Schedule of Redemption P

Debt - Schedule of Redemption Prices Plus Accrued and Unpaid Interest (Details) - Unsecured debt - —6.25% Dollar Senior Notes due 2026	12 Months Ended
	Dec. 31, 2022
—2023
Debt Instrument, Redemption
Redemption price (percent)	101.563%
—2024 and thereafter
Debt Instrument, Redemption
Redemption price (percent)	100%

Debt - Revolving Credit Facilit

Debt - Revolving Credit Facility Narratives (Details) - Secured multi-currency facility - USD ($)	Nov. 18, 2021	Dec. 31, 2022	Jan. 01, 2022	Nov. 17, 2021
Line of Credit Facility
Outstanding debt trigger	$ 500,000,000
Deferred financing cost recognized	2,000,000
Revolving credit facility
Line of Credit Facility
Maximum borrowing capacity of credit facility	250,000,000			$ 185,000,000
Line of credit carrying value		$ 0	$ 0
Letter of credit sub-facility
Line of Credit Facility
Maximum borrowing capacity of credit facility	$ 75,000,000			$ 20,000,000
Line of credit carrying value		$ 0	$ 0

Debt - Asset-Backed Revolver Na

Debt - Asset-Backed Revolver Narratives (Details) - USD ($)		1 Months Ended	12 Months Ended
	Nov. 18, 2021	Mar. 31, 2022	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021	Nov. 17, 2021
Line of Credit Facility
Proceeds from long-term debt			$ 645,000,000	$ 0	$ 0
—Asset-backed revolver
Line of Credit Facility
Outstanding debt trigger	$ 500,000,000
Deferred financing cost recognized	1,300,000
Revolving credit facility | —Asset-backed revolver
Line of Credit Facility
Maximum borrowing capacity of credit facility	250,000,000					$ 325,000,000
Current borrowing capacity of credit facility			214,700,000	240,400,000
Line of credit carrying value			0	0
Proceeds from long-term debt		$ 70,000,000
Letter of credit sub-facility | —Asset-backed revolver
Line of Credit Facility
Maximum borrowing capacity of credit facility	$ 150,000,000
Line of credit carrying value			$ 25,800,000	$ 45,300,000

Accrued expenses and other li_3

Accrued expenses and other liabilities - Accrued expenses and other liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Payables and Accruals [Abstract]
Accrued compensation	$ 60.2	$ 80.2
Current portion of lease obligations	24.8	22
Derivative financial instruments	79.4	62
Payroll and related taxes payable	18.9	21.9
VAT and other taxes payable	7.2	10.9
Warranty reserve	17.6	18.7	$ 19.8	$ 17.7
Restructuring reserve	7.5	6.5	$ 17.9
Workers’ compensation reserve	8	7.9
Other accrued expenses and other liabilities	98.7	106.2
Accrued expenses and other liabilities	$ 322.3	$ 336.3
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

Accrued expenses and other li_4

Accrued expenses and other liabilities - Classification (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Payables and Accruals [Abstract]
—Accrued expenses and other current liabilities	$ 222.6	$ 277.1
—Other non-current liabilities	99.7	59.2
Accrued expenses and other liabilities	$ 322.3	$ 336.3

Accrued expenses and other li_5

Accrued expenses and other liabilities - Warranty reserves (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Warranty reserves
Balance as of the beginning of the period	$ 18.7	$ 19.8	$ 17.7
Charge for the period	10.8	10.3	11.8
Utilized during the period	(10.9)	(9.6)	(9.5)
Released during the period	(0.3)	(1.9)	(0.7)
Foreign currency translation	(0.7)	0.1	0.5
Balance as of the end of the period	$ 17.6	$ 18.7	$ 19.8

Post-retirement benefits - Narr

Post-retirement benefits - Narratives (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Defined Benefit Plan Disclosure
Benefit obligation, period increase	$ 51.9
Initial health care cost trend (percentage)	5.97%	5.74%
Ultimate health care cost trend (percentage)	4.85%	4.91%
Pensions
Defined Benefit Plan Disclosure
Defined contribution expense	$ 20.2	$ 20.6	$ 19
Actual loss on plan assets	(217.5)	(4.9)
Actuarial gain (loss)	180.6	43.4
Expected future employer contributions in current fiscal year	9.2
Other post-retirement benefits
Defined Benefit Plan Disclosure
Actuarial gain (loss)	13.9	$ 8.4
Expected future employer contributions in current fiscal year	$ 3.2

Post-retirement benefits - Fund

Post-retirement benefits - Funded status (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position
Post-retirement benefit obligations	$ 76.2	$ 106.2
Pensions
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position
Pension surplus	10.1	75.5
Accrued expenses and other current liabilities	2.4	2.6
Post-retirement benefit obligations	50.9	64.2
Net funded status	(43.2)	8.7
Plans whose projected benefit obligation was in excess of plan assets:
—Aggregate projected benefit obligation	247.5	341.4
—Aggregate fair value of plan assets	194.2	274.6
Plans whose accumulated benefit obligation was in excess of plan assets:
—Aggregate accumulated benefit obligation	243.4	336.1
—Aggregate fair value of plan assets	194.2	274
Other post-retirement benefits
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position
Accrued expenses and other current liabilities	3.1	4
Post-retirement benefit obligations	25.3	42
Net funded status	$ (28.4)	$ (46)

Post-retirement benefits - Sche

Post-retirement benefits - Schedule of changes in the projected benefit obligation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Pensions
Defined Benefit Plan, Change in Benefit Obligation
Benefit obligation at the beginning of the period	$ 821.1	$ 905.9
Employer service cost	3.3	4.3
Plan participants’ contributions	0.1	0.1
Interest cost	15.2	13.4	$ 18.3
Net actuarial gain	(180.6)	(43.4)
Benefits paid	(37.8)	(47.6)
Expenses paid from assets	(1.3)	(1.3)
Curtailments and settlements	(1.9)	(1.6)
Foreign currency translation	(57.6)	(8.7)
Benefit obligation at the end of the period	560.5	821.1	905.9
Accumulated benefit obligation	556.2	816.3
Other post-retirement benefits
Defined Benefit Plan, Change in Benefit Obligation
Benefit obligation at the beginning of the period	46	56.7
Interest cost	1.2	1.2	1.7
Net actuarial gain	(13.9)	(8.4)
Benefits paid	(3.3)	(3.8)
Plan amendments	(0.5)	0
Foreign currency translation	(1.1)	0.3
Benefit obligation at the end of the period	28.4	46	$ 56.7
Accumulated benefit obligation	$ 28.4	$ 46

Post-retirement benefits - Chan

Post-retirement benefits - Change in plan assets (Details) - Pensions - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Defined Benefit Plan, Change in Fair Value of Plan Assets
Plan assets at the beginning of the period	$ 829.8	$ 881.4
Actual loss on plan assets	(217.5)	(4.9)
Employer contributions	9.2	11.3
Plan participants’ contributions	0.1	0.1
Settlements	(1.9)	(1.6)
Benefits paid	(37.8)	(47.6)
Expenses paid from assets	(1.3)	(1.3)
Foreign currency translation	(63.3)	(7.6)
Plan assets at the end of the period	$ 517.3	$ 829.8

Post-retirement benefits - Plan

Post-retirement benefits - Plan asset by asset category (Details) - Pensions - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	$ 517.3	$ 829.8	$ 881.4
Total	517.3	829.8
Quoted prices in active markets (Level 1)
Defined Benefit Plans and Other Postretirement Benefit Plans
Total	15.4	7.5
Significant observable inputs (Level 2)
Defined Benefit Plans and Other Postretirement Benefit Plans
Total	226.5	611.8
Significant unobservable inputs (Level 3)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	275.4	210.5	$ 239.4
Total	275.4	210.5
Equity Securities
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	106.7	145.3
Equity Securities | Quoted prices in active markets (Level 1)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
Equity Securities | Significant observable inputs (Level 2)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	106.7	145.3
Equity Securities | Significant unobservable inputs (Level 3)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
—Corporate bonds
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	22.1	240.1
—Corporate bonds | Quoted prices in active markets (Level 1)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
—Corporate bonds | Significant observable inputs (Level 2)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	22.1	240.1
—Corporate bonds | Significant unobservable inputs (Level 3)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
—Government bonds
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	93	199.6
—Government bonds | Quoted prices in active markets (Level 1)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
—Government bonds | Significant observable inputs (Level 2)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	93	199.6
—Government bonds | Significant unobservable inputs (Level 3)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
Annuities and insurance
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	275.4	231.7
Annuities and insurance | Quoted prices in active markets (Level 1)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
Annuities and insurance | Significant observable inputs (Level 2)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	21.2
Annuities and insurance | Significant unobservable inputs (Level 3)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	275.4	210.5
Other
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	4.7	5.6
Other | Quoted prices in active markets (Level 1)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
Other | Significant observable inputs (Level 2)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	4.7	5.6
Other | Significant unobservable inputs (Level 3)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
Cash and cash equivalents
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	15.4	7.5
Cash and cash equivalents | Quoted prices in active markets (Level 1)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	15.4	7.5
Cash and cash equivalents | Significant observable inputs (Level 2)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	0	0
Cash and cash equivalents | Significant unobservable inputs (Level 3)
Defined Benefit Plans and Other Postretirement Benefit Plans
Plan asset	$ 0	$ 0

Post-retirement benefits - Ch_2

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. 31, 2022	Jan. 01, 2022
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation
Plan assets at the beginning of the period	$ 829.8	$ 881.4
Plan assets at the end of the period	517.3	829.8
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	210.5	239.4
Actual loss on plan assets	(54.3)	(13)
Contributions	0.4	0
Purchases	150.2	1.2
Impacts of benefits paid	(11.9)	(12.6)
Settlements	(0.7)	(1.3)
Foreign currency translation	(18.8)	(3.2)
Plan assets at the end of the period	$ 275.4	$ 210.5

Post-retirement benefits - Expe

Post-retirement benefits - Expected future benefit payments (Details) $ in Millions	Dec. 31, 2022 USD ($)
Pensions
Fiscal year:
—2023	$ 42
—2024	42.1
—2025	40.9
—2026	42.2
—2027	41.7
—2028 through 2032	203.8
Other post-retirement benefits
Fiscal year:
—2023	3.2
—2024	3.1
—2025	2.9
—2026	2.8
—2027	2.6
—2028 through 2032	$ 11.2

Post-retirement benefits - Comp

Post-retirement benefits - Components of Net Periodic Benefit (Income) Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Pensions
Defined Benefit Plans and Other Postretirement Benefit Plans
—Employer service cost	$ 3.3	$ 4.3	$ 5.6
—Settlements and curtailments	(0.2)	0.1	(2.1)
—Interest cost	15.2	13.4	18.3
—Expected return on plan assets	(21.7)	(19.3)	(22)
—Net amortization of prior period losses (gains)	0.3	0.4	0.2
Amortization of prior service cost	0.9	1	0.8
Net periodic benefit income	(2.2)	(0.1)	0.8
Other post-retirement benefits
Defined Benefit Plans and Other Postretirement Benefit Plans
—Interest cost	1.2	1.2	1.7
—Net amortization of prior period losses (gains)	(1.8)	(1)	(1)
Amortization of prior service cost	(0.4)	(0.4)	(0.4)
Net periodic benefit income	$ (1)	$ (0.2)	$ 0.3

Post-retirement benefits - Effe

Post-retirement benefits - Effects of pension plan recognized in OCI (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Pensions
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax
Current period net actuarial loss (gain)	$ 58.6	$ (19.1)	$ (32.6)
Amortization of prior net actuarial loss	(0.3)	(0.4)	(0.2)
Prior service cost	0	0	1.5
Amortization of prior service cost	(0.9)	(1)	(0.8)
Gain (loss) recognized due to settlements and curtailments	0.2	(0.1)	2.1
Pre-tax changes recognized in OCI other than foreign currency translation	57.6	(20.6)	(30)
Foreign currency translation	(0.5)	(0.3)	1.7
Total pre-tax changes recognized in OCI	57.1	(20.9)	(28.3)
Other post-retirement benefits
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax
Current period net actuarial loss (gain)	(13.9)	(8.4)	0.3
Amortization of prior net actuarial loss	1.8	1	1
Prior service cost	(0.5)	0	0
Amortization of prior service cost	0.4	0.4	0.4
Pre-tax changes recognized in OCI other than foreign currency translation	(12.2)	(7)	1.7
Foreign currency translation	0.6	0	0
Total pre-tax changes recognized in OCI	$ (11.6)	$ (7)	$ 1.7

Post-retirement benefits - Cumu

Post-retirement benefits - Cumulative losses (gains) not recognized in net period pension plan (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans
Pre-tax changes recognized in OCI other than foreign currency translation	$ 38	$ 25.8	$ 18.8
Pensions
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss (gain)	29.4	(29.1)	(9.5)
Prior service costs	9.9	10.8	11.8
Pre-tax changes recognized in OCI other than foreign currency translation	39.3	(18.3)	2.3
Foreign currency translation	(2)	(1.5)	(1.2)
Cumulative total	37.3	(19.8)	1.1
Other post-retirement benefits
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss (gain)	(35.5)	(23.4)	(16)
Prior service costs	(2.7)	(2.6)	(3)
Other adjustments	0.2	0.2	0.2
Foreign currency translation	0.4	(0.2)	(0.2)
Cumulative total	$ (37.6)	$ (26)	$ (19)

Post-retirement benefits - Sc_2

Post-retirement benefits - Schedule of major assumptions used (Details)	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Pensions
Benefit obligation:
Discount rate (percentage)	4.598%	2.003%
Rate of salary increase (percentage)	3.511%	3.095%
Net periodic benefit cost:
Discount rate (percentage)	2.005%	1.527%
Rate of salary increase (percentage)	3.105%	3.032%
Expected return on plan assets (percentage)	2.881%	2.38%
Other post-retirement benefits
Benefit obligation:
Discount rate (percentage)	5.44%	2.81%
Net periodic benefit cost:
Discount rate (percentage)	2.81%	2.30%

Share-based compensation - Narr

Share-based compensation - Narratives (Details) - USD ($) $ in Millions		12 Months Ended
	Mar. 31, 2022	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award
Share based compensation expense recognized		$ 44.3	$ 24.6	$ 19.8
Share-based compensation expense		44.3	24.6	19.8
Proceeds from stock options exercised		15.9	4.6	3.1
—Share options
Share-based Compensation Arrangement by Share-based Payment Award
Aggregate intrinsic value of options that were vested or expected to vest		$ 28.3
Contractual term of options that were vested or expect to vest		4 years 2 months 12 days
Aggregate intrinsic value of options exercisable		$ 28.3
Contractual term of options exercisable		3 years 9 months 18 days
Unrecognized compensation relating to non-vested awards		$ 1.5
Unrecognized compensation relating to non-vested awards, recognition period (term)		10 months 24 days
Aggregate intrinsic value of options exercised		$ 1	4.8	2.5
—PRSUs
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation relating to non-vested awards, recognition period (term)		1 year 10 months 24 days
Unrecognized compensation relating to non-vested awards other than option		$ 31.3
RSU's and PRSU's
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation relating to non-vested awards, recognition period (term)		1 year 10 months 24 days
Unrecognized compensation relating to non-vested awards other than option		$ 31.3
Aggregate intrinsic value of non options vested		12.9	$ 12.3	$ 3.1
Omaha Topco Ltd. Stock Incentive Plan | —Share options
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	$ 16.1
Omaha Topco Ltd. Stock Incentive Plan | —SARs
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense		$ 2.6
Omaha Topco Ltd. Stock Incentive Plan | —Tier I | —Share options
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period		5 years
Term of award		10 years
Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | —Share options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period		3 years
Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | —Share options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period		4 years
Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | —PRSUs
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 (percentage)		75%	50%
Percentage of shares expected to vest upon achievement of certain relative shareholders return (percentage)		25%	50%
Performance period		3 years
Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | —PRSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period		1 year
Total number of shares expected to vest at term of award arrangement (percentage)		0%
Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | —PRSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Total number of shares expected to vest at term of award arrangement (percentage)		200%
Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | —RSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period		1 year
Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | —RSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period		3 years
Gates Industrial Corporation Plc 2018 Omnibus Incentive Plan | —Premium-priced options
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period		3 years
Term of award		10 years

Share-based compensation - Stoc

Share-based compensation - Stock Option and SAR Rollforward (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Number of options
Beginning balance (shares) | shares	18,403,784
Granted (shares) | shares	62,055
Forfeited (shares) | shares	(318,542)
Expired (shares) | shares	(3,787,818)
Exercised (shares) | shares	(1,957,514)
Ending balance (shares) | shares	12,401,965
Weighted average exercise price $
Beginning balance (usd per share) | $ / shares	$ 9.63
Granted (usd per share) | $ / shares	15.76
Forfeited (usd per share) | $ / shares	9.89
Expired (usd per share) | $ / shares	7.33
Exercised (usd per share) | $ / shares	8.15
Ending balance (usd per share) | $ / shares	$ 10.59
—Share options
Number of options
Beginning balance (shares) | shares	3,254,097
Forfeited (shares) | shares	(110,381)
Expired (shares) | shares	(134,837)
Exercised (shares) | shares	(28,745)
Ending balance (shares) | shares	2,980,134
Weighted average exercise price $
Beginning balance (usd per share) | $ / shares	$ 14.84
Forfeited (usd per share) | $ / shares	14.18
Expired (usd per share) | $ / shares	15.14
Exercised (usd per share) | $ / shares	13.42
Ending balance (usd per share) | $ / shares	$ 14.86
Exercisable at the end of the period (shares) | shares	10,881,483
Exercisable at the end of the period (usd per share) | $ / shares	$ 9.85
Vested and expected to vest at the end of the period (shares) | shares	12,371,354
Vested and expected to vest at the end of the period (usd per share) | $ / shares	$ 10.57
—Share options | —Tier I
Number of options
Beginning balance (shares) | shares	2,752,700
Exercised (shares) | shares	(231,527)
Ending balance (shares) | shares	2,521,173
Weighted average exercise price $
Beginning balance (usd per share) | $ / shares	$ 6.91
Exercised (usd per share) | $ / shares	7.09
Ending balance (usd per share) | $ / shares	$ 6.89
—Share options | —Tier II
Number of options
Beginning balance (shares) | shares	3,577,470
Exercised (shares) | shares	(887,919)
Ending balance (shares) | shares	2,689,551
Weighted average exercise price $
Beginning balance (usd per share) | $ / shares	$ 6.90
Exercised (usd per share) | $ / shares	6.70
Ending balance (usd per share) | $ / shares	$ 6.97
—Share options | —Tier III
Number of options
Beginning balance (shares) | shares	3,577,470
Forfeited (shares) | shares	(188,157)
Expired (shares) | shares	(3,389,313)
Ending balance (shares) | shares	0
Weighted average exercise price $
Beginning balance (usd per share) | $ / shares	$ 6.90
Forfeited (usd per share) | $ / shares	6.93
Expired (usd per share) | $ / shares	6.90
Ending balance (usd per share) | $ / shares	$ 0
—Share options | —Tier IV
Number of options
Beginning balance (shares) | shares	3,577,470
Expired (shares) | shares	(79,760)
Exercised (shares) | shares	(805,159)
Ending balance (shares) | shares	2,692,551
Weighted average exercise price $
Beginning balance (usd per share) | $ / shares	$ 10.35
Expired (usd per share) | $ / shares	11.80
Exercised (usd per share) | $ / shares	9.84
Ending balance (usd per share) | $ / shares	$ 10.46
—SARs
Number of options
Beginning balance (shares) | shares	829,108
Granted (shares) | shares	62,055
Forfeited (shares) | shares	(20,004)
Expired (shares) | shares	(183,908)
Exercised (shares) | shares	(4,164)
Ending balance (shares) | shares	683,087
Weighted average exercise price $
Beginning balance (usd per share) | $ / shares	$ 9.31
Granted (usd per share) | $ / shares	15.76
Forfeited (usd per share) | $ / shares	14.11
Expired (usd per share) | $ / shares	7.55
Exercised (usd per share) | $ / shares	11
Ending balance (usd per share) | $ / shares	$ 10.22
—Premium-priced options
Number of options
Beginning balance (shares) | shares	835,469
Ending balance (shares) | shares	835,469
Weighted average exercise price $
Beginning balance (usd per share) | $ / shares	$ 18.88
Ending balance (usd per share) | $ / shares	$ 18.88

Share-based compensation - RSU

Share-based compensation - RSU and PRSU Rollforward (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Number of awards
Beginning balance (shares) | shares	2,628,383
Granted (shares) | shares	3,248,995
Forfeited (shares) | shares	(395,705)
Vested (shares) | shares	(913,854)
Ending balance (shares) | shares	4,567,819
Weighted average grant date fair value $
Beginning balance (usd per share) | $ / shares	$ 14.99
Granted (usd per share) | $ / shares	14.14
Forfeited (usd per share) | $ / shares	17.13
Vested (usd per share) | $ / shares	14.06
Ending balance (usd per share) | $ / shares	$ 14.38
—RSUs
Number of awards
Beginning balance (shares) | shares	1,744,405
Granted (shares) | shares	2,823,325
Forfeited (shares) | shares	(242,925)
Vested (shares) | shares	(833,546)
Ending balance (shares) | shares	3,491,259
Weighted average grant date fair value $
Beginning balance (usd per share) | $ / shares	$ 13.98
Granted (usd per share) | $ / shares	13.67
Forfeited (usd per share) | $ / shares	14.63
Vested (usd per share) | $ / shares	13.83
Ending balance (usd per share) | $ / shares	$ 13.72
—PRSUs
Number of awards
Beginning balance (shares) | shares	883,978
Granted (shares) | shares	425,670
Forfeited (shares) | shares	(152,780)
Vested (shares) | shares	(80,308)
Ending balance (shares) | shares	1,076,560
Weighted average grant date fair value $
Beginning balance (usd per share) | $ / shares	$ 16.98
Granted (usd per share) | $ / shares	17.23
Forfeited (usd per share) | $ / shares	21.11
Vested (usd per share) | $ / shares	16.46
Ending balance (usd per share) | $ / shares	$ 16.53

Share-based compensation - Fair

Share-based compensation - Fair Value and Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
—SARs
Share-based Compensation Arrangement by Share-based Payment Award
Assumed fair value exercise price (usd per share)	$ 6.94	$ 6.66	$ 4.59
Expected volatility (percentage)	43.50%	46.10%	37.70%
Expected option life (years)	6 years	6 years	6 years
Risk-free interest rate (percentage)	1.91%	0.95%	1.25%
—Share options
Share-based Compensation Arrangement by Share-based Payment Award
Assumed fair value exercise price (usd per share)		$ 6.66	$ 4.78
Expected volatility (percentage)		46.10%	37.60%
Expected option life (years)		6 years	6 years
Risk-free interest rate (percentage)		0.95%	1.33%
—Premium-priced options
Share-based Compensation Arrangement by Share-based Payment Award
Assumed fair value exercise price (usd per share)		$ 6.36
Expected volatility (percentage)		46.10%
Expected option life (years)		6 years
Risk-free interest rate (percentage)		0.95%
—RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Assumed fair value exercise price (usd per share)	$ 13.67	$ 15.16	$ 11.79
—PRSUs
Share-based Compensation Arrangement by Share-based Payment Award
Assumed fair value exercise price (usd per share)	$ 17.23	$ 17.92	$ 14.41
Expected volatility (percentage)	49.10%	50.80%	40.40%
Risk-free interest rate (percentage)	1.72%	0.27%	1.29%

Equity - Movement in Number of

Equity - Movement in Number of Shares in Issue (Details) - shares	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Increase (Decrease) in Stockholders' Equity
Balance as of the beginning of the period (in shares)	291,282,137	290,853,067
Exercise of share options (in shares)	1,953,350	518,600
Vesting of restricted stock units, net of withholding taxes (in shares)	809,347	566,921
Shares repurchased and cancelled (in shares)	(11,465,917)	(656,451)
Balance as of the end of the period (in shares)	282,578,917	291,282,137

Equity - Narrative (Details)

Equity - Narrative (Details)			1 Months Ended	12 Months Ended
	Mar. 30, 2022 USD ($) $ / shares shares	Mar. 24, 2022 $ / shares shares	Mar. 31, 2022 USD ($) shares	Dec. 31, 2022 USD ($) class $ / shares shares	Jan. 01, 2022 USD ($) $ / shares shares	Jan. 02, 2021 USD ($)	Nov. 30, 2021 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of classes of stock (class) | class				1
Par value (in usd per share) | $ / shares				$ 0.01	$ 0.01
Repurchase program, authorized amount							$ 200,000,000
Shares repurchased and cancelled (in shares) | shares				11,465,917	656,451
Shares repurchased				$ 175,900,000	$ 10,600,000
Payments for repurchase of common stock				$ 175,900,000	$ 10,600,000	$ 0
Shares repurchased and cancelled, gross (in shares) | shares				11,465,917
Shares repurchased and cancelled, gross, value				$ 174,700,000
Share repurchase additional costs incurred				$ 1,200,000
Citigroup | Affiliated Entity
Schedule of Equity Method Investments [Line Items]
Shares repurchased and cancelled (in shares) | shares	8,000,000		8,000,000
Issuance of shares (in shares) | shares		5,000,000
Offering price (in usd per share) | $ / shares		$ 15.14
Shares exercisable (in shares) | shares		750,000
Share price (in usd per share) | $ / shares	$ 15.14
Payments for repurchase of common stock	$ 121,100,000		$ 121,100,000
Debt instrument, cost related transaction amount	800,000		$ 800,000
—Asset-backed revolver | Citigroup
Schedule of Equity Method Investments [Line Items]
Maximum borrowing capacity of credit facility	$ 70,000,000

Analysis of accumulated other_3

Analysis of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	$ 3,481.4	$ 3,185	$ 3,010.7
Other comprehensive (loss) income, net of tax, attributable to parent	(114.5)	(66.6)	43.8
Other comprehensive income (loss), net of tax	(133.8)	(25.1)	80.9
Ending balance	3,443.6	3,481.4	3,185
Accumulated OCI
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	(848.6)	(823.5)	(904.4)
Ending balance	(982.4)	(848.6)	(823.5)
Accumulated OCI attributable to shareholders
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	(825.2)	(805.4)	(858.4)
Other comprehensive (loss) income, net of tax, attributable to parent	(92.6)	(19.8)	53
Other comprehensive income (loss), net of tax	(92.6)	(19.8)	53
Ending balance	(917.8)	(825.2)	(805.4)
Post- retirement benefits
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	36.6	14.9	(9.3)
Other comprehensive (loss) income, net of tax, attributable to parent	(36)	21.7	24.2
Other comprehensive (loss) income, net of tax, attributable to noncontrolling interest	0.9	(0.1)	0.5
Other comprehensive income (loss), net of tax	(33.9)	21.7	23
Ending balance	0.6	36.6	14.9
Foreign currency translation
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Other comprehensive (loss) income, net of tax, attributable to parent	(1.2)	(0.1)	1.7
Post-retirement benefit movements
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Other comprehensive (loss) income, net of tax, attributable to parent	(34.8)	21.8	22.5
Cumulative translation adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	(836.7)	(770.2)	(812.3)
Other comprehensive (loss) income, net of tax, attributable to parent	(113.3)	(66.5)	42.1
Other comprehensive (loss) income, net of tax, attributable to noncontrolling interest	(42.1)	(5.2)	27.4
Other comprehensive income (loss), net of tax	(156.6)	(71.8)	71.2
Ending balance	(950)	(836.7)	(770.2)
Cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	(25.1)	(50.1)	(36.8)
Other comprehensive (loss) income, net of tax, attributable to parent	56.7	25	(13.3)
Ending balance	31.6	(25.1)	(50.1)
Non-controlling interests
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning balance	(23.4)	(18.1)	(46)
Other comprehensive (loss) income, net of tax, attributable to noncontrolling interest	(41.2)	(5.3)	27.9
Ending balance	$ (64.6)	$ (23.4)	$ (18.1)

Related party transactions - Na

Related party transactions - Narrative (Details) - USD ($)		1 Months Ended		12 Months Ended
	Mar. 30, 2022	Mar. 31, 2022	Jan. 31, 2018	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021	Nov. 16, 2022
Related Party Transaction
Shares repurchased and cancelled (in shares)				11,465,917	656,451
Payments for repurchase of common stock				$ 175,900,000	$ 10,600,000	$ 0
New Dollar Term Loan | Secured debt:
Related Party Transaction
Debt instrument principal amount							$ 575,000,000
Sponsor | Former transaction and monitoring fee agreement
Related Party Transaction
Related party transaction, fee as a percentage of EBITDA				1%
Related party transaction, expenses incurred				$ 0	0	$ 1,900,000
Sponsor | Support and Services Agreement
Related Party Transaction
Related party transaction, ownership percentage threshold which terminates milestone payment			5%
Related party transaction, fair value of equity threshold which terminates milestone payment			$ 25,000,000
Affiliated Entity
Related Party Transaction
Payables to related parties				3,200,000	3,600,000
Affiliated Entity | New Dollar Term Loan | Secured debt:
Related Party Transaction
Debt instrument principal amount							50,000,000
Underwritting fees							$ 300,000
Affiliated Entity | Citigroup
Related Party Transaction
Shares repurchased and cancelled (in shares)	8,000,000	8,000,000
Payments for repurchase of common stock	$ 121,100,000	$ 121,100,000
Debt instrument, cost related transaction amount	$ 800,000	$ 800,000
Equity Method Investees
Related Party Transaction
Payables to related parties				$ 2,400,000	$ 1,000,000

Related party transactions - Sa

Related party transactions - Sales and Purchases with Equity Method Investees (Details) - Equity Method Investees - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Related Party Transaction
Sales	$ 0	$ 0.1	$ 0.9
Purchases	$ (16.7)	$ (14.9)	$ (13.8)

Related party transactions - Tr

Related party transactions - Transactions with Non-Gates Entities (Details) - Affiliated Entity - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Related Party Transaction
Sales	$ 59	$ 67.3	$ 47.5
Purchases	(18.4)	(21.7)	$ (18.5)
Receivables	4.7	5.4
Payables	$ (3.2)	$ (3.6)

Commitments and contingencies -

Commitments and contingencies - Narratives (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Long-term Purchase Commitment
Letters of credit outstanding	$ 25.8	$ 45.3
Bonds, letters of credit, and bank guarantees	8.7	6.3
Cash surrender value	969.7	966.1
Underlying loan for life assurance policy	967.9	964.3
Estimated receivable from policy	1.8	1.8
Property, Plant and Equipment
Long-term Purchase Commitment
Remaining minimum amount committed	12.1	5.1
—Capitalized software
Long-term Purchase Commitment
Remaining minimum amount committed	6.6	0.7
Inventories
Long-term Purchase Commitment
Remaining minimum amount committed	$ 25.3	$ 31.3

Commitments and contingencies_2

Commitments and contingencies - Allowance for Expected Credit Losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Accounts Receivable, Allowance for Credit Loss
Balance at beginning of year	$ 5.1	$ 5.2	$ 8.6
Current period provision for expected credit losses	0.6	0.2	0.7
Write-offs charged against allowance	(1.3)	(0.1)	(4.3)
Foreign currency translation	(0.2)	(0.2)	0.2
Balance at end of year	$ 4.2	$ 5.1	$ 5.2