Commitments and contingencies

9 Months Ended

Sep. 26, 2020

Commitments and Contingencies Disclosure [Abstract]

A. Performance bonds, letters of credit and bank guarantees

As of September 26, 2020, letters of credit totaling $32.0 million were outstanding against the asset-backed revolving facility, compared to $50.1 million as of December 28, 2019. Gates had additional outstanding performance bonds, letters of credit and bank guarantees amounting to $5.8 million, compared to $4.1 million as of December 28, 2019.

B. Contingencies

Gates is, from time to time, party to general legal proceedings and claims, which arise in the ordinary course of business. Gates is also, from time to time, party to legal proceedings and claims in respect of environmental obligations, product liability, intellectual property and other matters which arise in the ordinary course of business and against which management believes Gates has meritorious defenses available.

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.

C. Warranties

The following summarizes the movements in the warranty liability for the nine months ended September 26, 2020 and September 28, 2019, respectively:


	Nine months ended
(dollars in millions)	September 26, 2020		September 28, 2019
Balance as of the beginning of the period	$	17.7	$	14.3
Charge for the period	9.3		10.2
Payments made	(6.6)		(7.4)

Released during the period	(0.7)		(1.0)
Foreign currency translation	0.1		(0.1)
Balance as of the end of the period	$	19.8	$	16.0