BRP Inc.
For the period ended Jan 31, 2025. Filed Mar 26, 2025.
View on SEC.govAbout this filing
The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2025 · Filed Mar 26, 2025
Use the contents to explore the available documents and sections.
Contents
EX-99.2 · Sensitivity analysis
Sensitivity analysis
The Company performs sensitivity analysis on the cash flows and discount rates in order to confirm the trademarks and goodwill recoverable amounts. Holding all other variables constant, a 5% decrease in the estimated cash flows or an increase of 100 basis points in the discount rates used would not have resulted in an impairment charge as at January 31, 2025.
| 11. | LEASES |
The main leasing activities of the Company are attributable to the Company’s manufacturing facility located in Finland, to offices located in Canada and to warehouses used for the distribution of parts, accessories and apparel.
The following table explains the changes in
assets during the year ended January 31, 2025:
| Carrying amount as at January 31, 2024 | Additions | Depreciation [a] | Impairment [b] | Effect of foreign currency exchange rate changes | Termination, remeasurement and other | Carrying amount as at January 31, 2025 | |
|---|---|---|---|---|---|---|---|
| Building & land | $152.4 | $36.7 | $(47.5) | $(6.1) | $3.3 | $27.3 | $166.1 |
| Equipment | 17.3 | 5.9 | (7.7) | — | 0.9 | 0.3 | 16.7 |
| Total | $169.7 | $42.6 | $(55.2) | $(6.1) | $4.2 | $27.6 | $182.8 |
[a]
An amount of $28.4 million included in cost of sales.
[b]
Impairment charge of $6.1 million is related to Marine businesses assets held for sale (Note 30).
The following table explains the changes in
assets during the year ended January 31, 2024:
| Carrying amount as at January 31, 2023 | Additions | Depreciation [a] | Effect of foreign currency exchange rate changes | Termination, remeasurement and other | Carrying amount as at January 31, 2024 | |
|---|---|---|---|---|---|---|
| Building & land | $163.2 | $19.0 | $(43.0) | $0.7 | $12.5 | $152.4 |
| Equipment | 17.1 | 8.6 | (7.6) | (0.9) | 0.1 | 17.3 |
| Total | $180.3 | $27.6 | $(50.6) | $(0.2) | $12.6 | $169.7 |
[a]
An amount of $26.2 million included in cost of sales.
The following table explains the changes in lease liabilities during the year ended January 31, 2025:
| Carrying amount as at January 31, 2024 | Issuance | Interest | Repayment [a] | Liabilities associated with assets held for sale (Note 30) | Effect of foreign currency exchange rate changes | Termination, remeasurement and other | Carrying amount as at January 31, 2025 | |
|---|---|---|---|---|---|---|---|---|
| Lease liabilities | $188.3 | $43.1 | $8.5 | $(60.9) | $(6.7) | $7.6 | $25.4 | $205.3 |
[a]
Includes $8.5 million of interest paid.
The following table explains the changes in lease liabilities during the year ended January 31, 2024:
| Carrying amount as at January 31, 2023 | Issuance | Interest | Repayment [a] | Effect of foreign currency exchange rate changes | Termination, remeasurement and other | Carrying amount as at January 31, 2024 | |
|---|---|---|---|---|---|---|---|
| Lease liabilities | $196.9 | $27.3 | $7.7 | $(56.3) | $0.3 | $12.4 | $188.3 |
[a]
Includes $7.7 million of interest paid.
| 12. | TRADE PAYABLES AND ACCRUALS |
The Company’s trade payables and accruals were as follows, as at:
| January 31, 2025 | January 31, 2024 | |
|---|---|---|
| Trade payables | $829.4 | $1,026.8 |
| Wages and related employee accruals | 114.3 | 128.2 |
| Other accruals | 278.4 | 295.4 |
| Total trade payables and accruals | $1,222.1 | $1,450.4 |
| 13. | PROVISIONS |
The Company’s provisions were as follows, as at:
| January 31, 2025 | January 31, 2024 | |
|---|---|---|
| Product-related | $876.1 | $863.9 |
| Restructuring | 20.1 | 4.4 |
| Other | 39.8 | 46.9 |
| Total provisions | $936.0 | $915.2 |
| Current | 790.8 | 766.7 |
| Non-current | 145.2 | 148.5 |
| Total provisions | $936.0 | $915.2 |
Product-related provisions include provisions for regular warranty coverage on products sold, product liability provisions and provisions related to sales programs offered by the Company to its Customers in order to support the retail activity.
The
portion of provisions is mainly attributable to product-related provisions. As at January 31, 2025, the Company estimates that cash outflows related to those
provisions could occur from February 1, 2026 to January 31, 2029.
The changes in provisions were as follows:
| Product-related | Restructuring | Other | Total | |
|---|---|---|---|---|
| Balance as at January 31, 2024 | $863.9 | $4.4 | $46.9 | $915.2 |
| Expensed during the period | 1,301.7 | 84.3 | 48.9 | 1,434.9 |
| Paid during the period | (1,297.6) | (68.5) | (29.2) | (1,395.3) |
| Reversed during the period | (2.6) | (0.4) | (18.1) | (21.1) |
| Effect of foreign currency exchange rate changes | 47.7 | 0.3 | 1.6 | 49.6 |
| Unwinding of discount and effect of changes in discounting estimates | 3.7 | — | — | 3.7 |
| Liabilities associated with assets held for sale (Note 30) | (40.7) | — | (10.3) | (51.0) |
| Balance as at January 31, 2025 | $876.1 | $20.1 | $39.8 | $936.0 |
| 14. | OTHER FINANCIAL LIABILITIES |
The Company’s other financial liabilities were as follows, as at:
| January 31, 2025 | January 31, 2024 | |
|---|---|---|
| Dealer holdback programs and customer deposits | $39.8 | $40.1 |
| Due to Bombardier Inc. | 22.7 | 22.4 |
| Derivative financial instruments | 64.3 | 7.8 |
| Non-controlling interest liability | 23.4 | 26.4 |
| Other | 16.2 | 14.2 |
| Total other financial liabilities | $166.4 | $110.9 |
| Current | 86.2 | 45.8 |
| Non-current [a] | 80.2 | 65.1 |
| Total other financial liabilities | $166.4 | $110.9 |
[a]
The
portion is mainly comprised of the amount due to Bombardier Inc. in connection with indemnification related to income taxes and the amount of the
interest liability.
| 15. | DEBT |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.