Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 04, 2014 | 7-May-14 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 4-Apr-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'TRMB | ' |
Entity Registrant Name | 'TRIMBLE NAVIGATION LTD /CA/ | ' |
Entity Central Index Key | '0000864749 | ' |
Current Fiscal Year End Date | '--01-02 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 260,879,910 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Apr. 04, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $165,226 | $147,227 |
Accounts receivable, net | 397,740 | 337,932 |
Other receivables | 21,505 | 23,143 |
Inventories, net | 266,700 | 254,311 |
Deferred income taxes | 40,186 | 38,597 |
Other current assets | 39,514 | 35,807 |
Total current assets | 930,871 | 837,017 |
Property and equipment, net | 149,609 | 142,975 |
Goodwill | 1,990,457 | 1,989,470 |
Other purchased intangible assets, net | 583,075 | 619,399 |
Other non-current assets | 123,571 | 111,979 |
Total assets | 3,777,583 | 3,700,840 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 52,054 | 106,402 |
Accounts payable | 120,148 | 112,522 |
Accrued compensation and benefits | 83,011 | 95,866 |
Deferred revenue | 207,497 | 159,295 |
Accrued warranty expense | 18,136 | 17,781 |
Other current liabilities | 82,126 | 85,124 |
Total current liabilities | 562,972 | 576,990 |
Non-current portion of long-term debt | 612,598 | 652,056 |
Non-current deferred revenue | 23,127 | 20,431 |
Deferred income taxes | 138,962 | 136,399 |
Other non-current liabilities | 86,373 | 80,982 |
Total liabilities | 1,424,032 | 1,466,858 |
Commitments and contingencies | ' | ' |
Shareholders’ equity: | ' | ' |
Preferred stock, no par value; 3,000 shares authorized; none outstanding | ' | ' |
Common stock, no par value; 360,000 shares authorized; 260,832 and 258,711 shares issued and outstanding as of the first quarter of fiscal 2014 and fiscal year end 2013, respectively | 1,159,907 | 1,106,017 |
Retained earnings | 1,150,304 | 1,081,695 |
Accumulated other comprehensive income | 31,802 | 33,194 |
Total Trimble Navigation Ltd. shareholders’ equity | 2,342,013 | 2,220,906 |
Noncontrolling interests | 11,538 | 13,076 |
Total equity | 2,353,551 | 2,233,982 |
Total liabilities and equity | $3,777,583 | $3,700,840 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 04, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Preferred stock, no par value | ' | ' |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value | ' | ' |
Common stock, shares authorized | 360,000 | 360,000 |
Common stock, shares issued | 260,832 | 258,711 |
Common stock, shares outstanding | 260,832 | 258,711 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 |
Revenue: | ' | ' |
Product | $442,569 | $412,787 |
Service | 93,319 | 81,596 |
Subscription | 68,833 | 61,728 |
Total revenue | 604,721 | 556,111 |
Cost of sales: | ' | ' |
Product | 203,752 | 198,701 |
Service | 34,179 | 30,843 |
Subscription | 19,010 | 19,972 |
Amortization of purchased intangible assets | 20,888 | 19,681 |
Total cost of sales | 277,829 | 269,197 |
Gross margin | 326,892 | 286,914 |
Operating expense | ' | ' |
Research and development | 76,376 | 73,608 |
Sales and marketing | 97,354 | 83,623 |
General and administrative | 57,433 | 51,970 |
Restructuring charges | 337 | 1,605 |
Amortization of purchased intangible assets | 19,681 | 19,651 |
Total operating expense | 251,181 | 230,457 |
Operating income | 75,711 | 56,457 |
Non-operating income (loss), net | ' | ' |
Interest expense, net | -3,683 | -5,071 |
Foreign currency transaction loss | -155 | -1,569 |
Income from equity method investments | 3,463 | 4,257 |
Other income, net | 13,139 | 295 |
Total non-operating income (loss), net | 12,764 | -2,088 |
Income before taxes | 88,475 | 54,369 |
Income tax provision | 20,350 | 5,437 |
Net income | 68,125 | 48,932 |
Less: Net loss attributable to noncontrolling interests | -499 | -876 |
Net income attributable to Trimble Navigation Ltd. | $68,624 | $49,808 |
Basic earnings per share | $0.26 | $0.20 |
Shares used in calculating basic earnings per share | 259,789 | 255,181 |
Diluted earnings per share | $0.26 | $0.19 |
Shares used in calculating diluted earnings per share | 264,784 | 260,299 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 |
Net income | $68,125 | $48,932 |
Foreign currency translation adjustments | -1,402 | -25,683 |
Net unrealized actuarial gain (loss) | 9 | -71 |
Comprehensive income | 66,732 | 23,178 |
Less: Comprehensive loss attributable to noncontrolling interests | -499 | -876 |
Comprehensive income attributable to Trimble Navigation Ltd. | $67,231 | $24,054 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 |
Cash flow from operating activities: | ' | ' |
Net income | $68,125 | $48,932 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation expense | 7,520 | 6,193 |
Amortization expense | 40,569 | 39,332 |
Provision for doubtful accounts | 516 | 65 |
Deferred income taxes | -1,454 | -11,809 |
Stock-based compensation | 10,112 | 8,818 |
Income from equity method investments | -3,463 | -4,257 |
Gain on an equity sale | -15,091 | 0 |
Excess tax benefit for stock-based compensation | -10,211 | -4,784 |
Provision for excess and obsolete inventories | 1,089 | 584 |
Other non-cash items | -728 | 104 |
Add decrease (increase) in assets: | ' | ' |
Accounts receivable | -61,875 | -61,956 |
Other receivables | -1,661 | 5,027 |
Inventories | -13,395 | -20,218 |
Other current and non-current assets | -2,224 | -10,867 |
Add increase (decrease) in liabilities: | ' | ' |
Accounts payable | 10,487 | -6,081 |
Accrued compensation and benefits | -11,503 | -12,037 |
Deferred revenue | 47,077 | 51,964 |
Accrued warranty expense | 382 | 439 |
Other liabilities | 19,123 | 7,939 |
Net cash provided by operating activities | 83,395 | 37,388 |
Cash flow from investing activities: | ' | ' |
Acquisitions of businesses, net of cash acquired | -10,961 | -65,192 |
Acquisitions of property and equipment | -13,574 | -14,927 |
Dividends received from equity method investments | 12,443 | 1,284 |
Other | -2,050 | 2,430 |
Net cash used in investing activities | -14,142 | -76,405 |
Cash flow from financing activities: | ' | ' |
Issuances of common stock, net of tax withholding | 32,465 | 14,437 |
Excess tax benefit for stock-based compensation | 10,211 | 4,784 |
Proceeds from debt and revolving credit lines | 17,000 | 113,000 |
Payments on debt and revolving credit lines | -110,805 | -103,981 |
Net cash provided by (used in) financing activities | -51,129 | 28,240 |
Effect of exchange rate changes on cash and cash equivalents | -125 | -3,442 |
Net increase (decrease) in cash and cash equivalents | 17,999 | -14,219 |
Cash and cash equivalents, beginning of period | 147,227 | 157,771 |
Cash and cash equivalents, end of period | $165,226 | $143,552 |
OVERVIEW_AND_BASIS_OF_PRESENTA
OVERVIEW AND BASIS OF PRESENTATION | 3 Months Ended |
Apr. 04, 2014 | |
OVERVIEW AND BASIS OF PRESENTATION | ' |
OVERVIEW AND BASIS OF PRESENTATION | |
Trimble Navigation Limited (Trimble or the Company) began operations in 1978 and incorporated in California in 1981. The Company provides technology solutions that enable professionals and field mobile workers to improve or transform their work processes. The solutions are used across a range of industries including agriculture, architecture, civil engineering, construction, environmental management, government, natural resources, transportation and utilities. Representative customers include engineering and construction firms, contractors, surveying companies, farmers and agricultural companies, enterprise firms with large-scale fleets, energy, mining and utility companies, and state, federal and municipal governments. | |
Products frequently provide a good return on investment for customers through lower operational costs, higher productivity, improved quality, enhanced safety and compliance and reduced environmental impact. Product examples include: equipment that automates large industrial equipment such as tractors and bulldozers; surveying instruments; integrated systems that track fleets of vehicles and workers and provide real-time information and powerful analytics to the back-office; data collection systems that enable the management of large amounts of geo-referenced information; software solutions that connect all aspects of a construction site or farm; and building information modeling (BIM) software that is used throughout the design, build, and operation of buildings. The Company also manufactures components for in-vehicle navigation and telematics systems and timing modules used in the synchronization of wireless networks. | |
The Company has a 52-53 week fiscal year, ending on the Friday nearest to December 31, which for fiscal 2013 was January 3, 2014. The first quarter of fiscal 2014 and 2013 ended on April 4, 2014 and March 29, 2013, respectively. Fiscal 2014 is a 52-week year and 2013 is a 53-week year. Unless otherwise stated, all dates refer to the Company’s fiscal year and fiscal periods. | |
The Condensed Consolidated Financial Statements include the results of the Company and its consolidated subsidiaries. Inter-company accounts and transactions have been eliminated. Noncontrolling interests represent the noncontrolling shareholders’ proportionate share of the net assets and results of operations of the Company’s consolidated subsidiaries. | |
The accompanying financial data as of the first quarter of fiscal 2014 and for the first quarter of fiscal 2014 and 2013 has been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements, prepared in accordance with U.S. generally accepted accounting principles, have been condensed or omitted pursuant to such rules and regulations. The Condensed Consolidated Balance Sheet as of fiscal year end 2013 is derived from the audited Consolidated Financial Statements included in the Annual Report on Form 10-K of Trimble Navigation Limited for fiscal year 2013. The following discussion should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K. | |
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in its Condensed Consolidated Financial Statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates. | |
In the opinion of management, all adjustments necessary have been made to present a fair statement of results for the interim periods presented. The results of operations for the first quarter of fiscal 2014 are not necessarily indicative of the operating results for the full fiscal year or any future periods. Individual segment revenue may be affected by seasonal buying patterns and general economic conditions. | |
The Company has evaluated all subsequent events through the date that these financial statements have been filed with the Securities and Exchange Commission. | |
The Company has presented revenue and cost of sales separately for products, service and subscriptions. Product revenue includes primarily hardware, software licenses, parts and accessories; service revenue includes primarily hardware and software maintenance and support, training and professional services; subscription revenue includes software as a service (SaaS). | |
On March 20, 2013 the Company effected a 2-for-1 split of all outstanding shares of the Company's Common Stock to shareholders of record on March 6, 2013. All shares and per share information presented has been adjusted to reflect the stock split on a retroactive basis for all periods presented. | |
Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation, including certain line items within the Condensed Consolidated Statement of Cash Flows. |
UPDATES_TO_SIGNIFICANT_ACCOUNT
UPDATES TO SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Apr. 04, 2014 | |
UPDATES TO SIGNIFICANT ACCOUNTING POLICIES | ' |
UPDATES TO SIGNIFICANT ACCOUNTING POLICIES | |
There have been no material changes to the Company’s significant accounting polices during the first quarter of fiscal 2014 from those disclosed in the Company’s 2013 Form 10-K. | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued a new accounting standard that generally requires the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Condensed Consolidated Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Trimble adopted this new standard on a prospective basis in the first quarter of fiscal 2014. The implementation had no material impact on its Condensed Consolidated Financial Statements. | |
In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014; however, early adoption is permitted as is a retrospective application. The Company will adopt the amendments beginning in the first quarter of fiscal 2015. The Company does not anticipate a material impact on its Condensed Consolidated Financial Statements as a result of this change. |
GAIN_ON_EQUITY_SALE
GAIN ON EQUITY SALE | 3 Months Ended |
Apr. 04, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
GAIN ON EQUITY SALE | ' |
GAIN ON EQUITY SALE | |
In October, 2008, VirtualSite Solutions (VSS), a business formed by the Company and Caterpillar began operations. The Company originally had a 65% ownership and Caterpillar had a 35% ownership in VSS. VSS develops software for fleet management and connected worksite solutions for both Caterpillar and Trimble and in turn, sells software subscription services to Caterpillar and Trimble, which are sold through Caterpillar's and the Company's respective distribution channels. For financial reporting purposes, VSS’s assets and liabilities were consolidated with those of the Company, as were its results of operations, which were reported under the Engineering and Construction segment. Caterpillar’s 35% interest was included in the overall Consolidated Financial Statements as Noncontrolling interest. | |
Effective January 4, 2014, the Company sold 15% of its ownership in VSS to Caterpillar resulting in both the Company and Caterpillar owning 50% of the VSS joint venture. Following closing the Company no longer held a controlling interest in VSS. The sale of the 15% ownership resulted in the deconsolidation of VSS and a gain in the amount of $15.1 million. Of this amount, $8.5 million relates to the remeasurement of the Company's retained interest to fair value which was measured using a combination of the income and market approaches. The total gain is included in Other income, net on the Company's Condensed Consolidated Statements of Income. The new 50% investment in VSS is classified as an equity method investment. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
SHAREHOLDERS' EQUITY | ' | |||||||
SHAREHOLDERS’ EQUITY | ||||||||
Stock Repurchase Activities | ||||||||
In October 2011, the Company’s Board of Directors approved a stock repurchase program (“2011 Stock Repurchase Program”), authorizing the Company to repurchase up to $100.0 million of Trimble’s common stock. No shares of common stock were repurchased during the first quarter of fiscal 2014 or 2013. The timing and actual number of future shares repurchased will depend on a variety of factors including price, regulatory requirements, capital availability and other market conditions. The program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time without public notice. | ||||||||
Stock-Based Compensation Expense | ||||||||
The Company accounts for its employee stock options, restricted stock units and employee stock purchase plan (ESPP) under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized as expense over the related employees’ requisite service periods in the Company’s Condensed Consolidated Statements of Income. | ||||||||
The following table summarizes stock-based compensation expense related to employee stock-based compensation (for all plans) included in the unaudited Condensed Consolidated Statements of Income for the first quarter of fiscal 2014 and 2013. | ||||||||
First Quarter of | ||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | ||||||||
Cost of sales | $ | 747 | $ | 600 | ||||
Research and development | 1,477 | 1,147 | ||||||
Sales and marketing | 1,862 | 1,764 | ||||||
General and administrative | 6,026 | 5,307 | ||||||
Total operating expenses | 9,365 | 8,218 | ||||||
Total stock-based compensation expense | $ | 10,112 | $ | 8,818 | ||||
Fair value of Trimble Options | ||||||||
Stock option expense recognized in the unaudited Condensed Consolidated Statements of Income is based on the fair value of the portion of share-based payment awards that is expected to vest during the period and is net of estimated forfeitures. The Company’s compensation expense for stock options is recognized using the straight-line single option method. The fair values for stock options are estimated on the date of grant using the binomial valuation model. The binomial model takes into account variables such as volatility, dividend yield rate and risk free interest rate. In addition, the binomial model incorporates actual option-pricing behavior and changes in volatility over the option’s contractual term. For options granted during the first quarter of fiscal 2014 and 2013, the following weighted average assumptions were used: | ||||||||
First Quarter of | ||||||||
2014 | 2013 | |||||||
Expected dividend yield | — | — | ||||||
Expected stock price volatility | 35.40% | 40.30% | ||||||
Risk free interest rate | 0.90% | 0.60% | ||||||
Expected life of options | 3.8 years | 4.1 years | ||||||
Expected Dividend Yield – The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. | ||||||||
Expected Stock Price Volatility – The Company’s computation of expected volatility is based on a combination of implied volatilities from traded options on the Company’s stock and historical volatility, commensurate with the expected life of the stock options. | ||||||||
Expected Risk Free Interest Rate – The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected life of the stock options. | ||||||||
Expected Life Of Options – The Company’s expected life represents the period that the Company’s stock options are expected to be outstanding and is determined based on historical experience of similar stock options with consideration to the contractual terms of the stock options, vesting schedules and expectations of future employee behavior. | ||||||||
Fair value of Restricted Stock Units | ||||||||
Restricted stock units are converted into shares of Trimble common stock upon vesting on a one-for-one basis. Vesting of restricted stock units is subject to the employee’s continuing service to the Company. The compensation expense related to these awards is determined using the fair value of Trimble’s common stock on the date of grant, and the expense is recognized on a straight-line basis over the vesting period. Restricted stock units typically vest at the end of three years. | ||||||||
Fair value of Employee Stock Purchase Plan | ||||||||
Under the Employee Stock Purchase Plan, rights to purchase shares are generally granted during the second and fourth quarter of each year. The fair value of rights granted under the Employee Stock Purchase Plan was estimated at the date of grant using the Black-Scholes option-pricing model. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended | |||||||||||||||||||||||
Apr. 04, 2014 | ||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible Assets consisted of the following: | ||||||||||||||||||||||||
First Quarter of Fiscal 2014 | Fiscal Year End 2013 | |||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||
As of | Carrying | Accumulated | Net Carrying | Carrying | Accumulated | Net Carrying | ||||||||||||||||||
(Dollars in thousands) | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||
Developed product technology | $ | 704,027 | $ | (388,228 | ) | $ | 315,799 | $ | 699,479 | $ | (363,389 | ) | $ | 336,090 | ||||||||||
Trade names and trademarks | 46,257 | (30,175 | ) | 16,082 | 46,195 | (28,699 | ) | 17,496 | ||||||||||||||||
Customer relationships | 424,597 | (201,697 | ) | 222,900 | 424,630 | (189,338 | ) | 235,292 | ||||||||||||||||
Distribution rights and other intellectual properties | 79,553 | (51,259 | ) | 28,294 | 79,844 | (49,323 | ) | 30,521 | ||||||||||||||||
$ | 1,254,434 | $ | (671,359 | ) | $ | 583,075 | $ | 1,250,148 | $ | (630,749 | ) | $ | 619,399 | |||||||||||
The estimated future amortization expense of purchased intangible assets as of the first quarter of fiscal 2014 was as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
2014 (Remaining) | $ | 111,334 | ||||||||||||||||||||||
2015 | 139,355 | |||||||||||||||||||||||
2016 | 120,590 | |||||||||||||||||||||||
2017 | 98,843 | |||||||||||||||||||||||
2018 | 68,474 | |||||||||||||||||||||||
Thereafter | 44,479 | |||||||||||||||||||||||
Total | $ | 583,075 | ||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The changes in the carrying amount of goodwill by segment for the first quarter of fiscal 2014 were as follows: | ||||||||||||||||||||||||
Engineering | Field | Mobile | Advanced | Total | ||||||||||||||||||||
and | Solutions | Solutions | Devices | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Balance as of fiscal year end 2013 | $ | 1,080,240 | $ | 88,651 | $ | 796,094 | $ | 24,485 | $ | 1,989,470 | ||||||||||||||
Additions due to acquisitions | 1,553 | — | — | — | 1,553 | |||||||||||||||||||
Purchase price adjustments | 574 | 46 | — | — | 620 | |||||||||||||||||||
Foreign currency translation adjustments | 990 | 18 | (1,188 | ) | (533 | ) | (713 | ) | ||||||||||||||||
Write off | $ | — | $ | — | $ | (473 | ) | $ | — | $ | (473 | ) | ||||||||||||
Balance as of the first quarter of fiscal 2014 | $ | 1,083,357 | $ | 88,715 | $ | 794,433 | $ | 23,952 | $ | 1,990,457 | ||||||||||||||
The Company determined the total consideration paid for each of its acquisitions as well as the fair value of the assets acquired and liabilities assumed as of the date of acquisition. For certain acquisitions completed in fiscal 2013 and the first quarter of fiscal 2014, the fair value of the assets acquired and liabilities assumed are preliminary and may be adjusted as the Company obtains additional information, primarily related to adjustments for the true up of acquired net working capital in accordance with certain purchase agreements, and estimated values of certain net tangible assets and liabilities including tax balances, pending the completion of final studies and analyses. If there are adjustments made for these items, the fair value of intangible assets and goodwill could be impacted. Thus the provisional measurements of fair value are subject to change. Such changes could be significant. The Company expects to finalize the valuation of the net tangible and intangible assets as soon as practicable, but not later than one-year from the acquisition date. |
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories, net, consisted of the following: | ||||||||
First Quarter of | Fiscal Year End | |||||||
As of | 2014 | 2013 | ||||||
(Dollars in thousands) | ||||||||
Raw materials | $ | 93,084 | $ | 94,988 | ||||
Work-in-process | 7,444 | 6,871 | ||||||
Finished goods | 166,172 | 152,452 | ||||||
Total inventories, net | $ | 266,700 | $ | 254,311 | ||||
Deferred costs of sales for the short-term deferral of hardware and related product revenues are included within finished goods and were $12.2 million as of the first quarter of fiscal 2014 and $12.6 million as of fiscal year end 2013. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2014 | ||||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||
Trimble is a designer and distributor of positioning products and applications enabled by GPS, optical, laser, and wireless communications technology. The Company provides products for diverse applications in its targeted markets. | ||||||||||||||||||||
To achieve distribution, marketing, production and technology advantages, the Company manages its operations in the following four segments: | ||||||||||||||||||||
• | Engineering and Construction — Consists of hardware and software solutions for a variety of applications including: survey, heavy civil and building construction, infrastructure, geospatial, railway, mining and utilities. | |||||||||||||||||||
• | Field Solutions — Consists of hardware and software solutions for applications including agriculture, mapping and geographic information systems (GIS), utilities, and energy distribution. | |||||||||||||||||||
• | Mobile Solutions — Consists of hardware and software solutions that enable end-users to monitor and manage their mobile work, mobile workers and mobile assets. | |||||||||||||||||||
• | Advanced Devices — The various operations that comprise this segment are aggregated on the basis that these operations, taken as a whole, do not exceed 10% of the Company’s total revenue, operating income and assets. This segment is comprised of the Embedded Technologies and Timing, Military and Advanced Systems, Applanix, Trimble Outdoors, and ThingMagic businesses. | |||||||||||||||||||
The Company’s Chief Operating Decision Maker (CODM), its Chief Executive Officer, evaluates each of its segment’s performance and allocates resources based on segment operating income before income taxes and some corporate allocations. The Company and each of its segments employ consistent accounting policies. In each of its segments the Company sells many individual products. For this reason it is impractical to segregate and identify revenue for each of these individual products or groups of products. | ||||||||||||||||||||
The following table presents revenue, operating income, depreciation expense and identifiable assets for the four segments. Operating income is revenue less cost of sales and operating expense, excluding general corporate expense, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, acquisition costs and restructuring costs. The identifiable assets that CODM views by segment are accounts receivable, inventories and goodwill. | ||||||||||||||||||||
Reporting Segments | ||||||||||||||||||||
Engineering | Field | Mobile | Advanced | Total | ||||||||||||||||
and | Solutions | Solutions | Devices | |||||||||||||||||
Construction | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
First Quarter of Fiscal 2014 | ||||||||||||||||||||
Segment revenue | $ | 309,276 | $ | 138,165 | $ | 118,628 | $ | 38,652 | $ | 604,721 | ||||||||||
Operating income | 57,515 | 52,937 | 16,170 | 11,676 | 138,298 | |||||||||||||||
Depreciation expense | 3,157 | 164 | 1,222 | 179 | 4,722 | |||||||||||||||
First Quarter of Fiscal 2013 | ||||||||||||||||||||
Segment revenue | $ | 266,871 | $ | 147,481 | $ | 110,164 | $ | 31,595 | $ | 556,111 | ||||||||||
Operating income | 42,973 | 59,526 | 11,573 | 6,485 | 120,557 | |||||||||||||||
Depreciation expense | 2,968 | 134 | 979 | 197 | 4,278 | |||||||||||||||
As of the First Quarter of Fiscal 2014 | ||||||||||||||||||||
Accounts receivable | $ | 212,770 | $ | 86,554 | $ | 71,250 | $ | 27,166 | $ | 397,740 | ||||||||||
Inventories | 174,158 | 50,574 | 26,416 | 15,552 | 266,700 | |||||||||||||||
Goodwill | 1,083,357 | 88,715 | 794,433 | 23,952 | 1,990,457 | |||||||||||||||
As of Fiscal Year End 2013 | ||||||||||||||||||||
Accounts receivable | $ | 185,634 | $ | 62,859 | $ | 70,174 | $ | 19,265 | $ | 337,932 | ||||||||||
Inventories | 171,863 | 39,554 | 27,664 | 15,230 | 254,311 | |||||||||||||||
Goodwill | 1,080,240 | 88,651 | 796,094 | 24,485 | 1,989,470 | |||||||||||||||
A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows: | ||||||||||||||||||||
First Quarter of | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Consolidated segment operating income | $ | 138,298 | $ | 120,557 | ||||||||||||||||
Unallocated corporate expense | (20,622 | ) | (21,350 | ) | ||||||||||||||||
Amortization of purchased intangible assets | (40,569 | ) | (39,332 | ) | ||||||||||||||||
Acquisition costs | (1,396 | ) | (3,418 | ) | ||||||||||||||||
Consolidated operating income | 75,711 | 56,457 | ||||||||||||||||||
Non-operating income (loss), net | 12,764 | (2,088 | ) | |||||||||||||||||
Consolidated income before taxes | $ | 88,475 | $ | 54,369 | ||||||||||||||||
Unallocated corporate expense includes general corporate expense, amortization of acquisition-related inventory step-up and restructuring costs. |
DEBT_COMMITMENTS_AND_CONTINGEN
DEBT, COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
DEBT, COMMITMENTS AND CONTINGENCIES | ' | |||||||
DEBT, COMMITMENTS AND CONTINGENCIES | ||||||||
Debt consisted of the following: | ||||||||
First Quarter of | Fiscal Year End | |||||||
As of | 2014 | 2013 | ||||||
(Dollars in thousands) | ||||||||
Credit Facilities: | ||||||||
Term loan | $ | 656,250 | $ | 665,000 | ||||
Revolving credit facility | — | 85,000 | ||||||
Promissory notes and other debt | 8,402 | 8,458 | ||||||
Total debt | 664,652 | 758,458 | ||||||
Less current portion of long-term debt | 52,054 | 106,402 | ||||||
Non-current portion | $ | 612,598 | $ | 652,056 | ||||
Credit Facilities | ||||||||
On November 21, 2012, the Company entered into an amended and restated credit agreement with a group of lenders (the “2012 Credit Facility”). This credit facility provides for unsecured credit facilities in the aggregate principal amount of $1.4 billion, comprised of a five-year revolving loan facility of $700.0 million and a five-year $700.0 million term loan facility. Subject to the terms of the 2012 Credit Facility, the revolving loan facility may be increased, and/or additional term loan commitments may be established, in an aggregate principal amount up to $300.0 million. The Company also has two $75 million uncommitted revolving loan facilities (the “Uncommitted Facilities”), which are callable by the bank at any time and have no covenants. The interest rate for the Uncommitted Facilities is 0.9% to 1.00% plus either LIBOR or the bank’s cost of funds or as otherwise agreed upon by the bank and the Company. | ||||||||
As of the first quarter of fiscal 2014, total debt was comprised primarily of a term loan of $656.3 million. Of the total outstanding balance, $612.5 million of the term loan is classified as long-term in the Condensed Consolidated Balance Sheet. | ||||||||
The funds available under the 2012 Credit Facility may be used for general corporate purposes, the financing of certain acquisitions and the payment of transaction fees and expenses related to such acquisitions. Under the 2012 Credit Facility, the Company may borrow, repay and reborrow funds under the revolving loan facility until its maturity on November 21, 2017, at which time the revolving facility will terminate, and all outstanding loans, together with all accrued and unpaid interest, must be repaid. Amounts not borrowed under the revolving facility will be subject to a commitment fee, to be paid in arrears on the last day of each fiscal quarter, ranging from 0.15% to 0.35% per annum depending on the Company's leverage ratio as of the most recently ended fiscal quarter. The term loan will be repaid in quarterly installments, with the last quarterly payment to be made on September 29, 2017, with the remaining outstanding balance being due and payable at maturity on November 21, 2017. On an annualized basis, the amortization of the term loan is as follows: 5%, 5%, 10%, 10% and 70% for years one through five respectively. The term loan may be prepaid in whole or in part, subject to certain minimum thresholds, without penalty or premium. Amounts repaid or prepaid with respect to the term loan facility may not be reborrowed. | ||||||||
The Company may borrow funds under the 2012 Credit Facility in U.S. Dollars, Euros or in certain other agreed currencies, and borrowings will bear interest, at the Company’s option, at either: (i) a floating per annum base rate based on the administrative agent’s prime rate or other agreed-upon rate, depending on the currency borrowed, plus a margin of between 0.00% and 1.00%, depending on the Company's leverage ratio as of the most recently ended fiscal quarter, or (ii) a reserve-adjusted fixed per annum rate based on LIBOR, EURIBOR, or other agreed-upon rate, depending on the currency borrowed, plus a margin of between 1.00% and 2.00%, depending on the Company's leverage ratio as of the most recently ended fiscal quarter. Interest will be paid on the last day of each fiscal quarter with respect to borrowings bearing interest based on a floating rate, or on the last day of an interest period, but at least every three months, with respect to borrowings bearing interest at a fixed rate. The Company's obligations under the 2012 Credit Facility are guaranteed by several of the Company's domestic subsidiaries. | ||||||||
The 2012 Credit Facility contains various customary representations and warranties by the Company, which include customary use of materiality, material adverse effect and knowledge qualifiers. The 2012 Credit Facility also contains customary affirmative and negative covenants including, among other requirements, negative covenants that restrict the Company's ability to dispose of assets, create liens, incur indebtedness, repurchase stock, pay dividends, make acquisitions and make investments. Further, the 2012 Credit Facility contains financial covenants that require the maintenance of minimum interest coverage and maximum leverage ratios. Specifically, the Company must maintain as of the end of each fiscal quarter a ratio of (a) EBITDA (as defined in the 2012 Credit Facility) to (b) interest expenses for the most recently ended period of four fiscal quarters of not less than 3.00 to 1. The Company must also maintain, at the end of each fiscal quarter, a ratio of (x) total indebtedness to (y) EBITDA (as defined in the 2012 Credit Facility) for the most recently ended period of four fiscal quarters of not greater than 3 to 1; provided, that on the completion of a material acquisition, the Company may increase the ratio by 0.25 for the fiscal quarter during which such acquisition occurred and each of the three subsequent fiscal quarters. | ||||||||
The Company was in compliance with these covenants as of the first quarter of fiscal 2014. | ||||||||
The 2012 Credit Facility contains events of default that include, among others, non-payment of principal, interest or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events, material judgments and events constituting a change of control. Upon the occurrence and during the continuance of an event of default, interest on the obligations will accrue at an increased rate and the lenders may accelerate the Company's obligations under the 2012 Credit Facility, however that acceleration will be automatic in the case of bankruptcy and insolvency events of default. | ||||||||
The weighted average interest rate on the current portion of the long-term debt outstanding under the 2012 Credit Facility and Uncommitted Facilities was 1.66% and 1.31% at the end of the first quarter of fiscal 2014 and fiscal year end 2013, respectively. The interest rate on the non-current debt outstanding under the 2012 Credit Facility was 1.66% and 1.67% at the end of the first quarter of fiscal 2014 and fiscal year end 2013, respectively. | ||||||||
Promissory Notes and Other Debt | ||||||||
As of the first quarter of fiscal 2014 and fiscal year end 2013, the Company had promissory notes and other debt totaling approximately $8.4 million and $8.5 million, respectively, of which $0.1 million for both periods was classified as long-term in the Condensed Consolidated Balance Sheet. | ||||||||
Leases and Other Commitments | ||||||||
The estimated future minimum operating lease commitments as of the first quarter of fiscal 2014 are as follows (dollars in thousands): | ||||||||
2014 (Remaining) | $ | 23,515 | ||||||
2015 | 24,347 | |||||||
2016 | 18,753 | |||||||
2017 | 13,383 | |||||||
2018 | 8,370 | |||||||
Thereafter | 26,067 | |||||||
Total | $ | 114,435 | ||||||
As of the first quarter of fiscal 2014, the Company had unconditional purchase obligations of approximately $137.2 million. These unconditional purchase obligations primarily represent open non-cancelable purchase orders for material purchases with the Company’s vendors. Purchase obligations exclude agreements that are cancelable without penalty. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||||||||||||||||||
Apr. 04, 2014 | ||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||
The Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Where available, fair value is based on observable market prices or parameters. Where observable prices or inputs are not available, valuation models are applied. Hierarchical levels, defined by the guidance on fair value measurements are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, and are as follows: | ||||||||||||||||||||||||||||||||
Level I—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||||||||||||||||||||||||||||||
Level II—Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | ||||||||||||||||||||||||||||||||
Level III—Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | ||||||||||||||||||||||||||||||||
Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations. | ||||||||||||||||||||||||||||||||
Fair Values as of the First Quarter of Fiscal 2014 | Fair Values as of Fiscal Year End 2013 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Total | Level I | Level II | Level III | Total | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market funds(1) | $ | 2 | $ | — | $ | — | $ | 2 | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||
Deferred compensation plan assets (2) | 17,468 | — | — | 17,468 | 16,545 | — | — | 16,545 | ||||||||||||||||||||||||
Derivative assets (3) | — | 1,012 | — | 1,012 | — | 196 | — | 196 | ||||||||||||||||||||||||
Total | $ | 17,470 | $ | 1,012 | $ | — | $ | 18,482 | $ | 16,547 | $ | 196 | $ | — | $ | 16,743 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Deferred compensation plan liabilities (2) | $ | 17,468 | $ | — | $ | — | $ | 17,468 | $ | 16,545 | $ | — | $ | — | $ | 16,545 | ||||||||||||||||
Derivative liabilities (3) | — | 350 | — | 350 | — | 635 | — | 635 | ||||||||||||||||||||||||
Contingent consideration liabilities (4) | — | — | 5,414 | 5,414 | — | — | 2,401 | 2,401 | ||||||||||||||||||||||||
Total | $ | 17,468 | $ | 350 | $ | 5,414 | $ | 23,232 | $ | 16,545 | $ | 635 | $ | 2,401 | $ | 19,581 | ||||||||||||||||
-1 | The money market funds are highly liquid investments. The fair values are determined using observable quoted prices in active markets. Money market funds are included in Cash and cash equivalents on the Company’s Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
-2 | The Company maintains a self-directed, non-qualified deferred compensation plan for certain executives and other highly compensated employees. The plan assets and liabilities are invested in actively traded mutual funds and individual stocks valued using observable quoted prices in active markets. Deferred compensation plan assets and liabilities are included in Other non-current assets and Other non-current liabilities on the Company's Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
-3 | Derivative assets and liabilities primarily represent forward currency exchange contracts. The Company typically enters into these contracts to minimize the short-term impact of foreign currency exchange rates on certain trade and inter-company receivables and payables. Derivative assets and liabilities are included in Other current assets and Other current liabilities on the Company's Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
-4 | Contingent consideration liabilities represent arrangements to pay the former owners of certain companies the Company acquired. The undiscounted maximum payment under the arrangements is $12.7 million at the end of the first quarter of fiscal 2014, based on estimated future revenues or gross margins. Contingent consideration liabilities are included in Other current liabilities and Other non-current liabilities on the Company's Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
Additional Fair Value Information | ||||||||||||||||||||||||||||||||
The following table provides additional fair value information relating to the Company’s financial instruments outstanding: | ||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||||||||||
As of | First Quarter of Fiscal 2014 | Fiscal Year End 2013 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 165,226 | $ | 165,226 | $ | 147,227 | $ | 147,227 | ||||||||||||||||||||||||
Forward foreign currency exchange contracts | 1,012 | 1,012 | 196 | 196 | ||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Credit facilities | $ | 656,250 | $ | 656,250 | $ | 750,000 | $ | 750,000 | ||||||||||||||||||||||||
Forward foreign currency exchange contracts | 350 | 350 | 635 | 635 | ||||||||||||||||||||||||||||
Promissory notes and other debt | 8,402 | 8,402 | 8,458 | 8,458 | ||||||||||||||||||||||||||||
The fair value of cash and cash equivalents is based on quoted prices in active markets for identical assets or liabilities, and is categorized as Level I in the fair value hierarchy. The fair value of the bank borrowings and promissory notes has been calculated using an estimate of the interest rate the Company would have had to pay on the issuance of notes with a similar maturity and discounting the cash flows at that rate, and is categorized as Level II in the fair value hierarchy. The fair values do not give an indication of the amount that the Company would currently have to pay to extinguish any of this debt. |
PRODUCT_WARRANTIES
PRODUCT WARRANTIES | 3 Months Ended | |||
Apr. 04, 2014 | ||||
PRODUCT WARRANTIES | ' | |||
PRODUCT WARRANTIES | ||||
The Company accrues for warranty costs as part of its cost of sales based on associated material product costs, technical support, labor costs, and costs incurred by third parties performing work on the Company’s behalf. The Company’s expected future costs are primarily estimated based upon historical trends in the volume of product returns within the warranty period and the costs to repair or replace the equipment. The products sold are generally covered by a warranty for periods ranging from 90 days to 5.5 years. | ||||
While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of component suppliers, its warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage, or service delivery costs differ from the estimates, revisions to the estimated warranty accrual and related costs may be required. | ||||
Changes in the Company’s product warranty liability during the first quarter of fiscal 2014 are as follows: | ||||
(Dollars in thousands) | ||||
Balance as of fiscal year end 2013 | $ | 17,781 | ||
Acquired warranties | 18 | |||
Accruals for warranties issued | 4,356 | |||
Changes in estimates | 340 | |||
Warranty settlements (in cash or in kind) | (4,359 | ) | ||
Balance as of the first quarter of fiscal 2014 | $ | 18,136 | ||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
EARNINGS PER SHARE | ' | |||||||
EARNINGS PER SHARE | ||||||||
Basic earnings per share is computed by dividing Net income attributable to Trimble Navigation Ltd. by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing Net income attributable to Trimble Navigation Ltd. by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. | ||||||||
The following table shows the computation of basic and diluted earnings per share: | ||||||||
First Quarter of | ||||||||
2014 | 2013 | |||||||
(Dollars in thousands, except per share amounts) | ||||||||
Numerator: | ||||||||
Net income attributable to Trimble Navigation Ltd. | $ | 68,624 | $ | 49,808 | ||||
Denominator: | ||||||||
Weighted average number of common shares used in basic earnings per share | 259,789 | 255,181 | ||||||
Effect of dilutive securities | 4,995 | 5,118 | ||||||
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share | 264,784 | 260,299 | ||||||
Basic earnings per share | $ | 0.26 | $ | 0.2 | ||||
Diluted earnings per share | $ | 0.26 | $ | 0.19 | ||||
For the first quarter of fiscal 2014 and 2013, the Company excluded 0.1 million and 2.5 million shares of outstanding stock options, respectively, from the calculation of diluted earnings per share because their effect would have been antidilutive. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Apr. 04, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | |
In the first quarter of fiscal 2014, the Company’s effective income tax rate was 23% as compared to 10% in the corresponding period in 2013, primarily due to the tax effect of a gain on a partial equity sale of VSS, the retroactive reinstatement of the 2012 federal R&D credit in the first quarter of 2013 as well as the expiration of the federal R&D credit for tax years after December 31, 2013 and the differences in the geographic mix of pretax income. | |
The Company's effective tax rates for the first quarter of fiscal years 2014 and 2013 are lower than the U.S. federal statutory rate of 35% primarily due to favorable tax rates associated with certain earnings from operations in lower-tax jurisdictions. The Company has not provided U.S. taxes for all of such earnings due to the indefinite reinvestment of some of those earnings outside the U.S. The effective tax rate for the first quarter of fiscal year 2013 also reflects the reinstatement of the 2012 federal R&D credit. | |
The Company and its subsidiaries are subject to U.S. federal and state, and foreign income tax. The Company is currently in different stages of multiple year examinations by the Internal Revenue Service as well as various state and foreign taxing authorities. Although timing of the resolution of audits is highly uncertain, the Company does not believe it is reasonably possible that the unrecognized tax benefits as of April 4, 2014 will materially change in the next twelve months. | |
The unrecognized tax benefits of $40.1 million and $38.1 million as of the first quarter of fiscal 2014 and fiscal year end 2013, respectively, if recognized, would favorably affect the effective income tax rate in future periods. Unrecognized tax benefits are recorded in Other non-current liabilities and in the deferred tax accounts in the accompanying Condensed Consolidated Balance Sheets. | |
The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company's unrecognized tax benefit liabilities include interest and penalties as of the first quarter of fiscal 2014 and fiscal year end 2013, of $4.3 million and $3.6 million, respectively, which were recorded in Other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets. |
LITIGATION
LITIGATION | 3 Months Ended |
Apr. 04, 2014 | |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
LITIGATION | ' |
LITIGATION | |
On August 9, 2013, the Harbinger Plaintiffs filed a lawsuit against Deere & Co., Garmin International, Inc., the Company and two other defendants in the U.S. District Court in Manhattan in connection with the Harbinger Plaintiffs’ investment in LightSquared. The Harbinger Plaintiffs allege, among other things, fraud and negligent misrepresentation, claiming that the defendants were aware of material facts that caused the Federal Communications Commission to take adverse action against LightSquared and affirmatively misrepresented and failed to disclose those facts prior to the Harbinger Plaintiffs’ investment in LightSquared. The Harbinger Plaintiffs seek $1.9 billion in damages from the defendants. On November 1, 2013, debtor LightSquared, Inc. and two related parties (“LightSquared Plaintiffs”) filed suit against the same defendants in the U.S. Bankruptcy Court in Manhattan. The LightSquared Plaintiffs assert claims similar to those made by the Harbinger Plaintiffs, as well as additional claims, including breach of contract and tortious interference, and allege that LightSquared invested billions of dollars in reliance on the promises and representations of defendants. On January 31, 2014, the U.S. District Court granted defendants’ motion to withdraw the LightSquared action from the U.S. Bankruptcy Court so it will proceed together with the Harbinger action before the U.S. District Court. Although an unfavorable outcome of these litigation matters may have a material adverse effect on the Company's operating results, liquidity, or financial position, the Company believes the claims in these lawsuits are without merit and intends to vigorously contest these lawsuits. | |
From time to time, the Company is also involved in litigation arising out of the ordinary course of our business. There are no other material legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or of which any of the Company's or its subsidiaries' property is subject. |
UPDATES_TO_SIGNIFICANT_ACCOUNT1
UPDATES TO SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies (Policies) | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
Significant Accounting Policies [Abstract] | ' | |||||||
Revenue Recognition, Policy | ' | |||||||
The Company has presented revenue and cost of sales separately for products, service and subscriptions. Product revenue includes primarily hardware, software licenses, parts and accessories; service revenue includes primarily hardware and software maintenance and support, training and professional services; subscription revenue includes software as a service (SaaS). | ||||||||
Reclassification, Policy | ' | |||||||
Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation, including certain line items within the Condensed Consolidated Statement of Cash Flows. | ||||||||
Standard Product Warranty Policy | ' | |||||||
The Company accrues for warranty costs as part of its cost of sales based on associated material product costs, technical support, labor costs, and costs incurred by third parties performing work on the Company’s behalf. The Company’s expected future costs are primarily estimated based upon historical trends in the volume of product returns within the warranty period and the costs to repair or replace the equipment. The products sold are generally covered by a warranty for periods ranging from 90 days to 5.5 years. | ||||||||
While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of component suppliers, its warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage, or service delivery costs differ from the estimates, revisions to the estimated warranty accrual and related costs may be required. | ||||||||
New Accounting Pronouncements, Policy | ' | |||||||
Recent Accounting Pronouncements | ||||||||
In July 2013, the Financial Accounting Standards Board ("FASB") issued a new accounting standard that generally requires the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Condensed Consolidated Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Trimble adopted this new standard on a prospective basis in the first quarter of fiscal 2014. The implementation had no material impact on its Condensed Consolidated Financial Statements. | ||||||||
In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014; however, early adoption is permitted as is a retrospective application. The Company will adopt the amendments beginning in the first quarter of fiscal 2015. The Company does not anticipate a material impact on its Condensed Consolidated Financial Statements as a result of this change. | ||||||||
Share-based Compensation, Option and Incentive Plans Policy | ' | |||||||
Stock-Based Compensation Expense | ||||||||
The Company accounts for its employee stock options, restricted stock units and employee stock purchase plan (ESPP) under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized as expense over the related employees’ requisite service periods in the Company’s Condensed Consolidated Statements of Income. | ||||||||
The following table summarizes stock-based compensation expense related to employee stock-based compensation (for all plans) included in the unaudited Condensed Consolidated Statements of Income for the first quarter of fiscal 2014 and 2013. | ||||||||
First Quarter of | ||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | ||||||||
Cost of sales | $ | 747 | $ | 600 | ||||
Research and development | 1,477 | 1,147 | ||||||
Sales and marketing | 1,862 | 1,764 | ||||||
General and administrative | 6,026 | 5,307 | ||||||
Total operating expenses | 9,365 | 8,218 | ||||||
Total stock-based compensation expense | $ | 10,112 | $ | 8,818 | ||||
Fair value of Trimble Options | ||||||||
Stock option expense recognized in the unaudited Condensed Consolidated Statements of Income is based on the fair value of the portion of share-based payment awards that is expected to vest during the period and is net of estimated forfeitures. The Company’s compensation expense for stock options is recognized using the straight-line single option method. The fair values for stock options are estimated on the date of grant using the binomial valuation model. The binomial model takes into account variables such as volatility, dividend yield rate and risk free interest rate. In addition, the binomial model incorporates actual option-pricing behavior and changes in volatility over the option’s contractual term. For options granted during the first quarter of fiscal 2014 and 2013, the following weighted average assumptions were used: | ||||||||
First Quarter of | ||||||||
2014 | 2013 | |||||||
Expected dividend yield | — | — | ||||||
Expected stock price volatility | 35.40% | 40.30% | ||||||
Risk free interest rate | 0.90% | 0.60% | ||||||
Expected life of options | 3.8 years | 4.1 years | ||||||
Expected Dividend Yield – The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. | ||||||||
Expected Stock Price Volatility – The Company’s computation of expected volatility is based on a combination of implied volatilities from traded options on the Company’s stock and historical volatility, commensurate with the expected life of the stock options. | ||||||||
Expected Risk Free Interest Rate – The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected life of the stock options. | ||||||||
Expected Life Of Options – The Company’s expected life represents the period that the Company’s stock options are expected to be outstanding and is determined based on historical experience of similar stock options with consideration to the contractual terms of the stock options, vesting schedules and expectations of future employee behavior. | ||||||||
Fair value of Restricted Stock Units | ||||||||
Restricted stock units are converted into shares of Trimble common stock upon vesting on a one-for-one basis. Vesting of restricted stock units is subject to the employee’s continuing service to the Company. The compensation expense related to these awards is determined using the fair value of Trimble’s common stock on the date of grant, and the expense is recognized on a straight-line basis over the vesting period. Restricted stock units typically vest at the end of three years. | ||||||||
Fair value of Employee Stock Purchase Plan | ||||||||
Under the Employee Stock Purchase Plan, rights to purchase shares are generally granted during the second and fourth quarter of each year. The fair value of rights granted under the Employee Stock Purchase Plan was estimated at the date of grant using the Black-Scholes option-pricing model. | ||||||||
Income Tax, Policy | ' | |||||||
The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company's unrecognized tax benefit liabilities include interest and penalties as of the first quarter of fiscal 2014 and fiscal year end 2013, of $4.3 million and $3.6 million, respectively, which were recorded in Other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets. |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
Summary Of Stock-Based Compensation Expense, Net Of Tax | ' | |||||||
The following table summarizes stock-based compensation expense related to employee stock-based compensation (for all plans) included in the unaudited Condensed Consolidated Statements of Income for the first quarter of fiscal 2014 and 2013. | ||||||||
First Quarter of | ||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | ||||||||
Cost of sales | $ | 747 | $ | 600 | ||||
Research and development | 1,477 | 1,147 | ||||||
Sales and marketing | 1,862 | 1,764 | ||||||
General and administrative | 6,026 | 5,307 | ||||||
Total operating expenses | 9,365 | 8,218 | ||||||
Total stock-based compensation expense | $ | 10,112 | $ | 8,818 | ||||
Schedule Of Weighted Average Assumptions Used In Stock Options Granted | ' | |||||||
For options granted during the first quarter of fiscal 2014 and 2013, the following weighted average assumptions were used: | ||||||||
First Quarter of | ||||||||
2014 | 2013 | |||||||
Expected dividend yield | — | — | ||||||
Expected stock price volatility | 35.40% | 40.30% | ||||||
Risk free interest rate | 0.90% | 0.60% | ||||||
Expected life of options | 3.8 years | 4.1 years |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||||||||||||||||
Apr. 04, 2014 | ||||||||||||||||||||||||
Schedule Of Intangible Assets | ' | |||||||||||||||||||||||
Intangible Assets consisted of the following: | ||||||||||||||||||||||||
First Quarter of Fiscal 2014 | Fiscal Year End 2013 | |||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||
As of | Carrying | Accumulated | Net Carrying | Carrying | Accumulated | Net Carrying | ||||||||||||||||||
(Dollars in thousands) | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||
Developed product technology | $ | 704,027 | $ | (388,228 | ) | $ | 315,799 | $ | 699,479 | $ | (363,389 | ) | $ | 336,090 | ||||||||||
Trade names and trademarks | 46,257 | (30,175 | ) | 16,082 | 46,195 | (28,699 | ) | 17,496 | ||||||||||||||||
Customer relationships | 424,597 | (201,697 | ) | 222,900 | 424,630 | (189,338 | ) | 235,292 | ||||||||||||||||
Distribution rights and other intellectual properties | 79,553 | (51,259 | ) | 28,294 | 79,844 | (49,323 | ) | 30,521 | ||||||||||||||||
$ | 1,254,434 | $ | (671,359 | ) | $ | 583,075 | $ | 1,250,148 | $ | (630,749 | ) | $ | 619,399 | |||||||||||
Schedule Of Estimated Future Amortization Expense | ' | |||||||||||||||||||||||
The estimated future amortization expense of purchased intangible assets as of the first quarter of fiscal 2014 was as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
2014 (Remaining) | $ | 111,334 | ||||||||||||||||||||||
2015 | 139,355 | |||||||||||||||||||||||
2016 | 120,590 | |||||||||||||||||||||||
2017 | 98,843 | |||||||||||||||||||||||
2018 | 68,474 | |||||||||||||||||||||||
Thereafter | 44,479 | |||||||||||||||||||||||
Total | $ | 583,075 | ||||||||||||||||||||||
Changes In Carrying Amount Of Goodwill By Operating Segment | ' | |||||||||||||||||||||||
The changes in the carrying amount of goodwill by segment for the first quarter of fiscal 2014 were as follows: | ||||||||||||||||||||||||
Engineering | Field | Mobile | Advanced | Total | ||||||||||||||||||||
and | Solutions | Solutions | Devices | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Balance as of fiscal year end 2013 | $ | 1,080,240 | $ | 88,651 | $ | 796,094 | $ | 24,485 | $ | 1,989,470 | ||||||||||||||
Additions due to acquisitions | 1,553 | — | — | — | 1,553 | |||||||||||||||||||
Purchase price adjustments | 574 | 46 | — | — | 620 | |||||||||||||||||||
Foreign currency translation adjustments | 990 | 18 | (1,188 | ) | (533 | ) | (713 | ) | ||||||||||||||||
Write off | $ | — | $ | — | $ | (473 | ) | $ | — | $ | (473 | ) | ||||||||||||
Balance as of the first quarter of fiscal 2014 | $ | 1,083,357 | $ | 88,715 | $ | 794,433 | $ | 23,952 | $ | 1,990,457 | ||||||||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
Components Of Net Inventories | ' | |||||||
Inventories, net, consisted of the following: | ||||||||
First Quarter of | Fiscal Year End | |||||||
As of | 2014 | 2013 | ||||||
(Dollars in thousands) | ||||||||
Raw materials | $ | 93,084 | $ | 94,988 | ||||
Work-in-process | 7,444 | 6,871 | ||||||
Finished goods | 166,172 | 152,452 | ||||||
Total inventories, net | $ | 266,700 | $ | 254,311 | ||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2014 | ||||||||||||||||||||
Schedule Of Revenue, Operating Income And Identifiable Assets By Segment | ' | |||||||||||||||||||
The following table presents revenue, operating income, depreciation expense and identifiable assets for the four segments. Operating income is revenue less cost of sales and operating expense, excluding general corporate expense, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, acquisition costs and restructuring costs. The identifiable assets that CODM views by segment are accounts receivable, inventories and goodwill. | ||||||||||||||||||||
Reporting Segments | ||||||||||||||||||||
Engineering | Field | Mobile | Advanced | Total | ||||||||||||||||
and | Solutions | Solutions | Devices | |||||||||||||||||
Construction | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
First Quarter of Fiscal 2014 | ||||||||||||||||||||
Segment revenue | $ | 309,276 | $ | 138,165 | $ | 118,628 | $ | 38,652 | $ | 604,721 | ||||||||||
Operating income | 57,515 | 52,937 | 16,170 | 11,676 | 138,298 | |||||||||||||||
Depreciation expense | 3,157 | 164 | 1,222 | 179 | 4,722 | |||||||||||||||
First Quarter of Fiscal 2013 | ||||||||||||||||||||
Segment revenue | $ | 266,871 | $ | 147,481 | $ | 110,164 | $ | 31,595 | $ | 556,111 | ||||||||||
Operating income | 42,973 | 59,526 | 11,573 | 6,485 | 120,557 | |||||||||||||||
Depreciation expense | 2,968 | 134 | 979 | 197 | 4,278 | |||||||||||||||
As of the First Quarter of Fiscal 2014 | ||||||||||||||||||||
Accounts receivable | $ | 212,770 | $ | 86,554 | $ | 71,250 | $ | 27,166 | $ | 397,740 | ||||||||||
Inventories | 174,158 | 50,574 | 26,416 | 15,552 | 266,700 | |||||||||||||||
Goodwill | 1,083,357 | 88,715 | 794,433 | 23,952 | 1,990,457 | |||||||||||||||
As of Fiscal Year End 2013 | ||||||||||||||||||||
Accounts receivable | $ | 185,634 | $ | 62,859 | $ | 70,174 | $ | 19,265 | $ | 337,932 | ||||||||||
Inventories | 171,863 | 39,554 | 27,664 | 15,230 | 254,311 | |||||||||||||||
Goodwill | 1,080,240 | 88,651 | 796,094 | 24,485 | 1,989,470 | |||||||||||||||
Reconciliation Of The Company's Consolidated Segment Operating Income To Consolidated Income Before Income Taxes | ' | |||||||||||||||||||
A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows: | ||||||||||||||||||||
First Quarter of | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Consolidated segment operating income | $ | 138,298 | $ | 120,557 | ||||||||||||||||
Unallocated corporate expense | (20,622 | ) | (21,350 | ) | ||||||||||||||||
Amortization of purchased intangible assets | (40,569 | ) | (39,332 | ) | ||||||||||||||||
Acquisition costs | (1,396 | ) | (3,418 | ) | ||||||||||||||||
Consolidated operating income | 75,711 | 56,457 | ||||||||||||||||||
Non-operating income (loss), net | 12,764 | (2,088 | ) | |||||||||||||||||
Consolidated income before taxes | $ | 88,475 | $ | 54,369 | ||||||||||||||||
DEBT_COMMITMENTS_AND_CONTINGEN1
DEBT, COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
Schedule Of Debt | ' | |||||||
Debt consisted of the following: | ||||||||
First Quarter of | Fiscal Year End | |||||||
As of | 2014 | 2013 | ||||||
(Dollars in thousands) | ||||||||
Credit Facilities: | ||||||||
Term loan | $ | 656,250 | $ | 665,000 | ||||
Revolving credit facility | — | 85,000 | ||||||
Promissory notes and other debt | 8,402 | 8,458 | ||||||
Total debt | 664,652 | 758,458 | ||||||
Less current portion of long-term debt | 52,054 | 106,402 | ||||||
Non-current portion | $ | 612,598 | $ | 652,056 | ||||
Schedule Of Estimated Future Minimum Operating Lease Commitments | ' | |||||||
The estimated future minimum operating lease commitments as of the first quarter of fiscal 2014 are as follows (dollars in thousands): | ||||||||
2014 (Remaining) | $ | 23,515 | ||||||
2015 | 24,347 | |||||||
2016 | 18,753 | |||||||
2017 | 13,383 | |||||||
2018 | 8,370 | |||||||
Thereafter | 26,067 | |||||||
Total | $ | 114,435 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Apr. 04, 2014 | ||||||||||||||||||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | |||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations. | ||||||||||||||||||||||||||||||||
Fair Values as of the First Quarter of Fiscal 2014 | Fair Values as of Fiscal Year End 2013 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Total | Level I | Level II | Level III | Total | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market funds(1) | $ | 2 | $ | — | $ | — | $ | 2 | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||
Deferred compensation plan assets (2) | 17,468 | — | — | 17,468 | 16,545 | — | — | 16,545 | ||||||||||||||||||||||||
Derivative assets (3) | — | 1,012 | — | 1,012 | — | 196 | — | 196 | ||||||||||||||||||||||||
Total | $ | 17,470 | $ | 1,012 | $ | — | $ | 18,482 | $ | 16,547 | $ | 196 | $ | — | $ | 16,743 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Deferred compensation plan liabilities (2) | $ | 17,468 | $ | — | $ | — | $ | 17,468 | $ | 16,545 | $ | — | $ | — | $ | 16,545 | ||||||||||||||||
Derivative liabilities (3) | — | 350 | — | 350 | — | 635 | — | 635 | ||||||||||||||||||||||||
Contingent consideration liabilities (4) | — | — | 5,414 | 5,414 | — | — | 2,401 | 2,401 | ||||||||||||||||||||||||
Total | $ | 17,468 | $ | 350 | $ | 5,414 | $ | 23,232 | $ | 16,545 | $ | 635 | $ | 2,401 | $ | 19,581 | ||||||||||||||||
-1 | The money market funds are highly liquid investments. The fair values are determined using observable quoted prices in active markets. Money market funds are included in Cash and cash equivalents on the Company’s Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
-2 | The Company maintains a self-directed, non-qualified deferred compensation plan for certain executives and other highly compensated employees. The plan assets and liabilities are invested in actively traded mutual funds and individual stocks valued using observable quoted prices in active markets. Deferred compensation plan assets and liabilities are included in Other non-current assets and Other non-current liabilities on the Company's Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
-3 | Derivative assets and liabilities primarily represent forward currency exchange contracts. The Company typically enters into these contracts to minimize the short-term impact of foreign currency exchange rates on certain trade and inter-company receivables and payables. Derivative assets and liabilities are included in Other current assets and Other current liabilities on the Company's Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
-4 | Contingent consideration liabilities represent arrangements to pay the former owners of certain companies the Company acquired. The undiscounted maximum payment under the arrangements is $12.7 million at the end of the first quarter of fiscal 2014, based on estimated future revenues or gross margins. Contingent consideration liabilities are included in Other current liabilities and Other non-current liabilities on the Company's Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
Additional Fair Value Information Relating To The Company's Financial Instruments Outstanding | ' | |||||||||||||||||||||||||||||||
The following table provides additional fair value information relating to the Company’s financial instruments outstanding: | ||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||||||||||
As of | First Quarter of Fiscal 2014 | Fiscal Year End 2013 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 165,226 | $ | 165,226 | $ | 147,227 | $ | 147,227 | ||||||||||||||||||||||||
Forward foreign currency exchange contracts | 1,012 | 1,012 | 196 | 196 | ||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Credit facilities | $ | 656,250 | $ | 656,250 | $ | 750,000 | $ | 750,000 | ||||||||||||||||||||||||
Forward foreign currency exchange contracts | 350 | 350 | 635 | 635 | ||||||||||||||||||||||||||||
Promissory notes and other debt | 8,402 | 8,402 | 8,458 | 8,458 | ||||||||||||||||||||||||||||
PRODUCT_WARRANTIES_Tables
PRODUCT WARRANTIES (Tables) | 3 Months Ended | |||
Apr. 04, 2014 | ||||
Changes In Product Warranty Liability | ' | |||
Changes in the Company’s product warranty liability during the first quarter of fiscal 2014 are as follows: | ||||
(Dollars in thousands) | ||||
Balance as of fiscal year end 2013 | $ | 17,781 | ||
Acquired warranties | 18 | |||
Accruals for warranties issued | 4,356 | |||
Changes in estimates | 340 | |||
Warranty settlements (in cash or in kind) | (4,359 | ) | ||
Balance as of the first quarter of fiscal 2014 | $ | 18,136 | ||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Apr. 04, 2014 | ||||||||
Schedule Of Computation Of Earnings Per Share And Effect On Weighted-Average Number Of Shares | ' | |||||||
First Quarter of | ||||||||
2014 | 2013 | |||||||
(Dollars in thousands, except per share amounts) | ||||||||
Numerator: | ||||||||
Net income attributable to Trimble Navigation Ltd. | $ | 68,624 | $ | 49,808 | ||||
Denominator: | ||||||||
Weighted average number of common shares used in basic earnings per share | 259,789 | 255,181 | ||||||
Effect of dilutive securities | 4,995 | 5,118 | ||||||
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share | 264,784 | 260,299 | ||||||
Basic earnings per share | $ | 0.26 | $ | 0.2 | ||||
Diluted earnings per share | $ | 0.26 | $ | 0.19 | ||||
OVERVIEW_AND_BASIS_OF_PRESENTA1
OVERVIEW AND BASIS OF PRESENTATION Stock split (Details) | 0 Months Ended |
Mar. 20, 2013 | |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 |
Gain_on_Equity_Sale_Narratives
Gain on Equity Sale (Narratives) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
Apr. 04, 2014 | Mar. 29, 2013 | Apr. 04, 2014 | Jan. 03, 2014 | Apr. 04, 2014 | |
VirtualSite Solutions [Member] | VirtualSite Solutions [Member] | Corporate Joint Venture [Member] | |||
VirtualSite Solutions [Member] | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Percentage of Shares Ownership Sold | ' | ' | 15.00% | ' | ' |
Percentage of Ownership before Transaction | ' | ' | ' | 65.00% | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | 35.00% | 50.00% |
Percentage of Ownership after Transaction | ' | ' | ' | ' | 50.00% |
Deconsolidation, Gain (Loss), Amount | $15,091,000 | $0 | ' | ' | ' |
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount | $8,500,000 | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 50.00% | ' | ' |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 | Apr. 04, 2014 | Oct. 31, 2011 |
Restricted Stock Units (RSUs) [Member] | 2011 Stock Repurchase Program [Member] | |||
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Restricted Stock Unit Award Vesting Period | ' | ' | '3 years | ' |
Stock repurchase program approved amount | ' | ' | ' | $100 |
Stock repurchased during period, shares | 0 | 0 | ' | ' |
Shareholders_Equity_Summary_Of
Shareholders' Equity (Summary Of Stock-Based Compensation Expense, Net Of Tax) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 |
Stockholders Equity [Line Items] | ' | ' |
Total stock-based compensation expense | $10,112 | $8,818 |
Cost Of Sales [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Total stock-based compensation expense | 747 | 600 |
Research And Development Expense [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Total stock-based compensation expense | 1,477 | 1,147 |
Selling And Marketing Expense [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Total stock-based compensation expense | 1,862 | 1,764 |
General And Administrative [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Total stock-based compensation expense | 6,026 | 5,307 |
Total Operating Expenses [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Total stock-based compensation expense | $9,365 | $8,218 |
Shareholders_Equity_Schedule_O
Shareholders' Equity (Schedule Of Weighted Average Assumptions Used In Stock Options Granted) (Detail) | 3 Months Ended | |
Apr. 04, 2014 | Mar. 29, 2013 | |
Stockholders Equity [Line Items] | ' | ' |
Expected dividend yield | 0.00% | 0.00% |
Expected stock price volatility | 35.40% | 40.30% |
Risk free interest rate | 0.90% | 0.60% |
Expected life of options | '3 years 9 months 5 days | '4 years 1 month 6 days |
Recovered_Sheet1
Goodwill And Intangible Assets (Schedule Of Intangible Assets) (Detail) (USD $) | Apr. 04, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Intangible Assets, Gross Carrying Amount | $1,254,434 | $1,250,148 |
Intangible Assets, Accumulated Amortization | -671,359 | -630,749 |
Total | 583,075 | 619,399 |
Developed Technology Rights [Member] | ' | ' |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Intangible Assets, Gross Carrying Amount | 704,027 | 699,479 |
Intangible Assets, Accumulated Amortization | -388,228 | -363,389 |
Total | 315,799 | 336,090 |
Trade Names And Trademarks [Member] | ' | ' |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Intangible Assets, Gross Carrying Amount | 46,257 | 46,195 |
Intangible Assets, Accumulated Amortization | -30,175 | -28,699 |
Total | 16,082 | 17,496 |
Customer Relationships [Member] | ' | ' |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Intangible Assets, Gross Carrying Amount | 424,597 | 424,630 |
Intangible Assets, Accumulated Amortization | -201,697 | -189,338 |
Total | 222,900 | 235,292 |
Distribution Rights And Other Intellectual Properties [Member] | ' | ' |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Intangible Assets, Gross Carrying Amount | 79,553 | 79,844 |
Intangible Assets, Accumulated Amortization | -51,259 | -49,323 |
Total | $28,294 | $30,521 |
Recovered_Sheet2
Goodwill And Intangible Assets (Schedule Of Estimated Future Amortization Expense) (Detail) (USD $) | Apr. 04, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets [Line Items] | ' | ' |
2014 (Remaining) | $111,334 | ' |
2015 | 139,355 | ' |
2016 | 120,590 | ' |
2017 | 98,843 | ' |
2018 | 68,474 | ' |
Thereafter | 44,479 | ' |
Total | $583,075 | $619,399 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill By Operating Segment) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2014 |
Goodwill And Intangible Assets [Line Items] | ' |
Balance as of fiscal year end 2013 | $1,989,470 |
Additions due to acquisitions | 1,553 |
Purchase price adjustments | 620 |
Foreign currency translation adjustments | -713 |
Write off | -473 |
Balance as of the first quarter of fiscal 2014 | 1,990,457 |
Engineering And Construction [Member] | ' |
Goodwill And Intangible Assets [Line Items] | ' |
Balance as of fiscal year end 2013 | 1,080,240 |
Additions due to acquisitions | 1,553 |
Purchase price adjustments | 574 |
Foreign currency translation adjustments | 990 |
Write off | 0 |
Balance as of the first quarter of fiscal 2014 | 1,083,357 |
Field Solutions [Member] | ' |
Goodwill And Intangible Assets [Line Items] | ' |
Balance as of fiscal year end 2013 | 88,651 |
Additions due to acquisitions | 0 |
Purchase price adjustments | 46 |
Foreign currency translation adjustments | 18 |
Write off | 0 |
Balance as of the first quarter of fiscal 2014 | 88,715 |
Mobile Solutions [Member] | ' |
Goodwill And Intangible Assets [Line Items] | ' |
Balance as of fiscal year end 2013 | 796,094 |
Additions due to acquisitions | 0 |
Purchase price adjustments | 0 |
Foreign currency translation adjustments | -1,188 |
Write off | -473 |
Balance as of the first quarter of fiscal 2014 | 794,433 |
Advanced Devices [Member] | ' |
Goodwill And Intangible Assets [Line Items] | ' |
Balance as of fiscal year end 2013 | 24,485 |
Additions due to acquisitions | 0 |
Purchase price adjustments | 0 |
Foreign currency translation adjustments | -533 |
Write off | 0 |
Balance as of the first quarter of fiscal 2014 | $23,952 |
Inventories_Components_Narrati
Inventories Components (Narrative) (Detail) (USD $) | Apr. 04, 2014 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Certain Balance Sheet Information [Line Items] | ' | ' |
Deferred costs of revenue included in finished goods | $12.20 | $12.60 |
Components_Of_Net_Inventories_
Components Of Net Inventories (Detail) (USD $) | Apr. 04, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Raw materials | $93,084 | $94,988 |
Work-in-process | 7,444 | 6,871 |
Finished goods | 166,172 | 152,452 |
Total inventories, net | $266,700 | $254,311 |
Segment_Information_Narrative_
Segment Information (Narrative) (Detail) (Advanced Devices [Member]) | 3 Months Ended |
Apr. 04, 2014 | |
Advanced Devices [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Maximum percentage of operation accounts for Company's total revenue, operating income, and assets | 10.00% |
Segment_Information_Schedule_O
Segment Information (Schedule Of Revenue, Operating Income And Identifiable Assets By Segment) (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 | Jan. 03, 2014 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Segment revenue | $604,721 | $556,111 | ' |
Operating Income | 75,711 | 56,457 | ' |
Depreciation expense | 7,520 | 6,193 | ' |
Accounts receivable | 397,740 | ' | 337,932 |
Inventories | 266,700 | ' | 254,311 |
Goodwill | 1,990,457 | ' | 1,989,470 |
Engineering And Construction [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Segment revenue | 309,276 | 266,871 | ' |
Accounts receivable | 212,770 | ' | 185,634 |
Inventories | 174,158 | ' | 171,863 |
Goodwill | 1,083,357 | ' | 1,080,240 |
Field Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Segment revenue | 138,165 | 147,481 | ' |
Accounts receivable | 86,554 | ' | 62,859 |
Inventories | 50,574 | ' | 39,554 |
Goodwill | 88,715 | ' | 88,651 |
Mobile Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Segment revenue | 118,628 | 110,164 | ' |
Accounts receivable | 71,250 | ' | 70,174 |
Inventories | 26,416 | ' | 27,664 |
Goodwill | 794,433 | ' | 796,094 |
Advanced Devices [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Segment revenue | 38,652 | 31,595 | ' |
Accounts receivable | 27,166 | ' | 19,265 |
Inventories | 15,552 | ' | 15,230 |
Goodwill | 23,952 | ' | 24,485 |
Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Income | 138,298 | 120,557 | ' |
Operating Segments [Member] | Engineering And Construction [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Income | 57,515 | 42,973 | ' |
Operating Segments [Member] | Field Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Income | 52,937 | 59,526 | ' |
Operating Segments [Member] | Mobile Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Income | 16,170 | 11,573 | ' |
Operating Segments [Member] | Advanced Devices [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Income | 11,676 | 6,485 | ' |
Segment Reconciling Items [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 4,722 | 4,278 | ' |
Segment Reconciling Items [Member] | Engineering And Construction [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 3,157 | 2,968 | ' |
Segment Reconciling Items [Member] | Field Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 164 | 134 | ' |
Segment Reconciling Items [Member] | Mobile Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 1,222 | 979 | ' |
Segment Reconciling Items [Member] | Advanced Devices [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | $179 | $197 | ' |
Segment_Information_Reconcilia
Segment Information (Reconciliation Of Company's Consolidated Segment Operating Income To Consolidated Income Before Income Taxes) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Unallocated corporate expense | ($251,181) | ($230,457) |
Amortization of purchased intangible assets | -40,569 | -39,332 |
Acquisition costs | -1,396 | -3,418 |
Consolidated operating income | 75,711 | 56,457 |
Non-operating income (loss), net | 12,764 | -2,088 |
Consolidated income before taxes | 88,475 | 54,369 |
Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Consolidated operating income | 138,298 | 120,557 |
Corporate, Non-Segment [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Unallocated corporate expense | ($20,622) | ($21,350) |
Recovered_Sheet3
Debt, Commitments And Contingencies (Narrative) (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||
Apr. 04, 2014 | Jan. 03, 2014 | Nov. 21, 2012 | Apr. 04, 2014 | Jan. 03, 2014 | Nov. 21, 2012 | Apr. 04, 2014 | Jan. 03, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Mar. 29, 2013 | Nov. 21, 2012 | Apr. 04, 2014 | Jan. 03, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | |
Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | Two Thousand Twelve Credit Facility & Two Thousand Thirteen Uncommitted Facility [Member] | Two Thousand Twelve Credit Facility & Two Thousand Thirteen Uncommitted Facility [Member] | Promissory Notes And Other Debt [Member] | Promissory Notes And Other Debt [Member] | Promissory Notes And Other Debt [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||
Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | Uncommitted Facility [Member] | Uncommitted Facility [Member] | Uncommitted Facility [Member] | |||||||||||||||||
Floating Per Annum Rate [Member] | Reserve-Adjusted Rate [Member] | Floating Per Annum Rate [Member] | Reserve-Adjusted Rate [Member] | Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt, Weighted Average Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.66% | 1.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Weighted Average Interest Rate | ' | ' | ' | ' | ' | ' | 1.66% | 1.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate availability of revolving credit line | ' | ' | $700,000,000 | ' | ' | $1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $700,000,000 | ' | ' | ' | ' | $75,000,000 | ' | ' |
Line of Credit Facility, Expiration Period | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Increase in available revolving credit line | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
number of uncommitted revolving loan facilities | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured revolving credit facility, initiation date | ' | ' | ' | ' | ' | 21-Nov-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility interest rate in addition to specific base rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 1.00% | ' | 1.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.90% | 1.00% |
Total debt | 664,652,000 | 758,458,000 | ' | 656,250,000 | 665,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,402,000 | 8,458,000 | 3,158,000 | ' | 0 | 85,000,000 | ' | ' | ' | ' | ' |
Non-current portion of long-term debt | 612,598,000 | 652,056,000 | ' | 612,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility commitment fee, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | 0.35% | ' | ' | ' |
Amortization of credit facility percentage year one | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of credit facility percentage year two | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of credit facility percentage year three | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of credit facility percentage year four | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of credit facility percentage year five | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment Of Borrowings Bearing Interest At A Fixed Rate | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant Ratio Increase upon acquisition | ' | ' | ' | ' | ' | ' | 0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured revolving credit facility, expiration date | ' | ' | ' | 21-Nov-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21-Nov-17 | ' | ' | ' | ' | ' | ' |
Minimum Interest Coverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage Ratio On Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of total indebtedness to EBITDA | 'The 2012 Credit Facility contains various customary representations and warranties by the Company, which include customary use of materiality, material adverse effect and knowledge qualifiers. The 2012 Credit Facility also contains customary affirmative and negative covenants including, among other requirements, negative covenants that restrict the Company's ability to dispose of assets, create liens, incur indebtedness, repurchase stock, pay dividends, make acquisitions and make investments. Further, the 2012 Credit Facility contains financial covenants that require the maintenance of minimum interest coverage and maximum leverage ratios. Specifically, the Company must maintain as of the end of each fiscal quarter a ratio of (a)Â EBITDA (as defined in the 2012 Credit Facility) to (b)Â interest expenses for the most recently ended period of four fiscal quarters of not less than 3.00 to 1. The Company must also maintain, at the end of each fiscal quarter, a ratio of (x)Â total indebtedness to (y)Â EBITDA (as defined in the 2012 Credit Facility) for the most recently ended period of four fiscal quarters of not greater than 3 to 1; provided, that on the completion of a material acquisition, the Company may increase the ratio by 0.25 for the fiscal quarter during which such acquisition occurred and each of the three subsequent fiscal quarters. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restrictive covenants | 'The Company was in compliance with these covenants as of the first quarter of fiscal 2014. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unconditional purchase obligations | $137,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet4
Debt, Commitments And Contingencies (Schedule Of Debt) (Detail) (USD $) | Apr. 04, 2014 | Jan. 03, 2014 | Mar. 29, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Total debt | $664,652 | $758,458 | ' |
Less current portion of long-term debt | 52,054 | 106,402 | ' |
Non-current portion | 612,598 | 652,056 | ' |
Term Loan [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Total debt | 656,250 | 665,000 | ' |
Non-current portion | 612,500 | ' | ' |
Promissory Notes And Other Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Total debt | 8,402 | 8,458 | 3,158 |
Non-current portion | 100 | 100 | ' |
Revolving Credit Facility [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Total debt | $0 | $85,000 | ' |
Debt_Commitments_And_Contingen2
Debt, Commitments And Contingencies (Schedule Of Estimated Future Minimum Operating Lease Commitments) (Detail) (USD $) | Apr. 04, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
2014 (Remaining) | $23,515 |
2015 | 24,347 |
2016 | 18,753 |
2017 | 13,383 |
2018 | 8,370 |
Thereafter | 26,067 |
Total | $114,435 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) (USD $) | Apr. 04, 2014 | Jan. 03, 2014 | ||
Other Current and Non Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Business Combination, Contingent Consideration, Liability | $12,700,000 | ' | ||
Level I [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value | 17,470,000 | 16,547,000 | ||
Liabilities, Fair Value | 17,468,000 | 16,545,000 | ||
Level I [Member] | Money Market Funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value | 2,000 | [1] | 2,000 | [1] |
Level I [Member] | Deferred Compensation Plan Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value | 17,468,000 | [2] | 16,545,000 | [2] |
Level II [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value | 1,012,000 | 196,000 | ||
Liabilities, Fair Value | 350,000 | 635,000 | ||
Level II [Member] | Derivative Financial Instruments, Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1,012,000 | [3] | 196,000 | [3] |
Level III [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Liabilities, Fair Value | 5,414,000 | 2,401,000 | ||
Total [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value | 18,482,000 | 16,743,000 | ||
Liabilities, Fair Value | 23,232,000 | 19,581,000 | ||
Total [Member] | Money Market Funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value | 2,000 | [1] | 2,000 | [1] |
Total [Member] | Deferred Compensation Plan Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value | 17,468,000 | [2] | 16,545,000 | [2] |
Total [Member] | Derivative Financial Instruments, Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value | 1,012,000 | [3] | 196,000 | [3] |
Deferred Compensation Plan Liabilities [Member] | Level I [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Liabilities, Fair Value | 17,468,000 | [2] | 16,545,000 | [2] |
Deferred Compensation Plan Liabilities [Member] | Total [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Liabilities, Fair Value | 17,468,000 | [2] | 16,545,000 | [2] |
Derivative Liabilities [Member] | Level II [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Derivative Liabilities at Fair Value | 350,000 | [3] | 635,000 | [3] |
Derivative Liabilities [Member] | Total [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Liabilities, Fair Value | 350,000 | [3] | 635,000 | [3] |
Contingent Consideration Liabilities [Member] | Level III [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Liabilities, Fair Value | 5,414,000 | [4] | 2,401,000 | [4] |
Contingent Consideration Liabilities [Member] | Total [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Liabilities, Fair Value | $5,414,000 | [4] | $2,401,000 | [4] |
[1] | The money market funds are highly liquid investments. The fair values are determined using observable quoted prices in active markets. Money market funds are included in Cash and cash equivalents on the Company’s Condensed Consolidated Balance Sheets. | |||
[2] | The Company maintains a self-directed, non-qualified deferred compensation plan for certain executives and other highly compensated employees. The plan assets and liabilities are invested in actively traded mutual funds and individual stocks valued using observable quoted prices in active markets. Deferred compensation plan assets and liabilities are included in Other non-current assets and Other non-current liabilities on the Company's Condensed Consolidated Balance Sheets. | |||
[3] | Derivative assets and liabilities primarily represent forward currency exchange contracts. The Company typically enters into these contracts to minimize the short-term impact of foreign currency exchange rates on certain trade and inter-company receivables and payables. Derivative assets and liabilities are included in Other current assets and Other current liabilities on the Company's Condensed Consolidated Balance Sheets. | |||
[4] | Contingent consideration liabilities represent arrangements to pay the former owners of certain companies the Company acquired. The undiscounted maximum payment under the arrangements is $12.7 million at the end of the first quarter of fiscal 2014, based on estimated future revenues or gross margins. Contingent consideration liabilities are included in Other current liabilities and Other non-current liabilities on the Company's Condensed Consolidated Balance Sheets. |
Fair_Value_Measurements_Additi
Fair Value Measurements (Additional Fair Value Information Relating To Company's Financial Instruments Outstanding) (Detail) (USD $) | Apr. 04, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Carrying Amount [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | $165,226 | $147,227 |
Forward foreign currency exchange contracts | 1,012 | 196 |
Credit facilities | 656,250 | 750,000 |
Forward foreign currency exchange contracts | 350 | 635 |
Promissory note and other debt | 8,402 | 8,458 |
Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | 165,226 | 147,227 |
Forward foreign currency exchange contracts | 1,012 | 196 |
Credit facilities | 656,250 | 750,000 |
Forward foreign currency exchange contracts | 350 | 635 |
Promissory note and other debt | $8,402 | $8,458 |
Product_Warranties_Narrative_D
Product Warranties (Narrative) (Detail) | 3 Months Ended |
Apr. 04, 2014 | |
Minimum | ' |
Product Warranty Liability [Line Items] | ' |
Warranty periods for products sold, in months and years | '90 days |
Maximum | ' |
Product Warranty Liability [Line Items] | ' |
Warranty periods for products sold, in months and years | '5 years 6 months |
Product_Warranties_Changes_In_
Product Warranties (Changes In Product Warranty Liability) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2014 |
Product Warranty Liability [Line Items] | ' |
Balance as of fiscal year end 2013 | $17,781 |
Acquired warranties | 18 |
Accruals for warranties issued | 4,356 |
Changes in estimates | 340 |
Warranty settlements (in cash or in kind) | -4,359 |
Balance as of the first quarter of fiscal 2014 | $18,136 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 |
Earnings Per Share [Line Items] | ' | ' |
Shares excluded from calculation of diluted earnings per share | 0.1 | 2.5 |
Earnings_Per_Share_Schedule_Of
Earnings Per Share (Schedule Of Computation Of Earnings Per Share And Effect On Weighted-Average Number Of Shares) (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2014 | Mar. 29, 2013 |
Earnings Per Share [Line Items] | ' | ' |
Net income attributable to Trimble Navigation Ltd. | $68,624 | $49,808 |
Weighted average number of common shares used in basic earnings per share | 259,789 | 255,181 |
Effect of dilutive securities | 4,995 | 5,118 |
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share | 264,784 | 260,299 |
Basic earnings per share | $0.26 | $0.20 |
Diluted earnings per share | $0.26 | $0.19 |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 3 Months Ended | ||
Apr. 04, 2014 | Mar. 29, 2013 | Jan. 03, 2014 | |
Income Tax Contingency [Line Items] | ' | ' | ' |
Effective income tax rate | 23.00% | 10.00% | ' |
Unrecognized tax benefit liabilities include interest and penalties | $4.30 | ' | $3.60 |
Statutory federal income tax rate | 35.00% | 35.00% | ' |
Unrecognized tax benefits that would impact effective tax rate | $40.10 | ' | $38.10 |
Litigation_Narrative_Details
Litigation (Narrative) (Details) (USD $) | 3 Months Ended |
In Billions, unless otherwise specified | Apr. 04, 2014 |
Harbiner Plaintiffs [Member] | ' |
Loss Contingencies [Line Items] | ' |
Loss Contingency, Damages Sought, Value | $1.90 |
Loss Contingency, Number of Defendants | 5 |
LightSquared Plaintiffs [Member] | ' |
Loss Contingencies [Line Items] | ' |
Loss Contingency, Number of Plaintiffs | 3 |