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, commercial and contractual disputes, employment matters and other matters which arise in the ordinary course of business and against which management believes Gates has meritorious defenses available. 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 set forth by 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.

The following summarizes the movements in the warranty liability for the three months ended March 29, 2025 and March 30, 2024, respectively:


	Three months ended
(dollars in millions)	March 29, 2025		March 30, 2024
Balance as of the beginning of the period	$	16.4	$	15.9
Charge for the period	2.1		2.4
Payments made	(1.6)		(2.4)


Foreign currency translation	0.1		(0.2)
Balance as of the end of the period	$	17.0	$	15.7