Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | TRMB | |
Entity Registrant Name | TRIMBLE INC. | |
Entity Central Index Key | 864,749 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 253,150,381 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 384.9 | $ 216.1 |
Short-term investments | 101.2 | 111.1 |
Accounts receivable, net | 395.3 | 354.8 |
Other receivables | 26.5 | 35.4 |
Inventories | 223.3 | 218.8 |
Other current assets | 51.9 | 42.5 |
Total current assets | 1,183.1 | 978.7 |
Property and equipment, net | 145.6 | 144.2 |
Goodwill | 2,183.7 | 2,077.6 |
Other purchased intangible assets, net | 363.5 | 333.3 |
Other non-current assets | 162.4 | 140 |
Total assets | 4,038.3 | 3,673.8 |
Current liabilities: | ||
Short-term debt | 147.3 | 130.3 |
Accounts payable | 136.9 | 109.8 |
Accrued compensation and benefits | 117 | 97.5 |
Deferred revenue | 301.7 | 246.5 |
Accrued warranty expense | 17.5 | 17.2 |
Other current liabilities | 106.4 | 86.9 |
Total current liabilities | 826.8 | 688.2 |
Long-term debt | 465 | 489.6 |
Non-current deferred revenue | 39.3 | 37.7 |
Deferred income tax liabilities | 41.7 | 38.8 |
Other non-current liabilities | 147.8 | 113.8 |
Total liabilities | 1,520.6 | 1,368.1 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 3.0 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 360.0 shares authorized; 253.1 and 251.3 shares issued and outstanding as of the end of the second quarter of fiscal 2017 and fiscal year end 2016, respectively | 0.3 | 0.3 |
Additional paid-in-capital | 1,425.7 | 1,348.3 |
Retained earnings | 1,251.8 | 1,177.1 |
Accumulated other comprehensive loss | (160) | (219.9) |
Total Trimble Inc. stockholders' equity | 2,517.8 | 2,305.8 |
Noncontrolling interests | (0.1) | (0.1) |
Total stockholders' equity | 2,517.7 | 2,305.7 |
Total liabilities and stockholders' equity | $ 4,038.3 | $ 3,673.8 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Preferred Stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3 | 3 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 360 | 360 |
Common stock, shares issued | 253.1 | 251.3 |
Common stock, shares outstanding | 253.1 | 251.3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Revenue: | ||||
Product | $ 445.6 | $ 407 | $ 851 | $ 800.6 |
Service | 110 | 109.7 | 216.8 | 211.3 |
Subscription | 106.3 | 92.9 | 208 | 180.7 |
Total revenue | 661.9 | 609.6 | 1,275.8 | 1,192.6 |
Cost of sales: | ||||
Product | 219.8 | 199.4 | 414.2 | 389.4 |
Service | 47.7 | 44 | 94.8 | 85.6 |
Subscription | 27.4 | 26.6 | 54.2 | 53.3 |
Amortization of purchased intangible assets | 20.5 | 24 | 39.5 | 48.1 |
Total cost of sales | 315.4 | 294 | 602.7 | 576.4 |
Gross margin | 346.5 | 315.6 | 673.1 | 616.2 |
Operating expense: | ||||
Research and development | 90.8 | 92 | 179.5 | 179.7 |
Sales and marketing | 100.4 | 97.4 | 195.2 | 194.1 |
General and administrative | 75.1 | 65.6 | 144.4 | 133.9 |
Restructuring charges | 2.3 | 4.5 | 5.2 | 6.3 |
Amortization of purchased intangible assets | 15.3 | 15.6 | 29.6 | 31.8 |
Total operating expense | 283.9 | 275.1 | 553.9 | 545.8 |
Operating income | 62.6 | 40.5 | 119.2 | 70.4 |
Non-operating income (expense), net: | ||||
Interest expense, net | (6) | (6.6) | (12.1) | (13.2) |
Foreign currency transaction gain (loss), net | 0 | (1.5) | 1.4 | (1.6) |
Income from equity method investments, net | 9.9 | 5.8 | 14.1 | 8.7 |
Other income, net | 1.1 | 0.1 | 10.6 | 3.4 |
Total non-operating income (expense), net | 5 | (2.2) | 14 | (2.7) |
Income before taxes | 67.6 | 38.3 | 133.2 | 67.7 |
Income tax provision | 17.7 | 2.7 | 32.8 | 12.4 |
Net income | 49.9 | 35.6 | 100.4 | 55.3 |
Less: Net loss attributable to noncontrolling interests | 0 | (0.1) | 0 | (0.2) |
Net income attributable to Trimble Inc. | $ 49.9 | $ 35.7 | $ 100.4 | $ 55.5 |
Basic earnings per share | $ 0.20 | $ 0.14 | $ 0.40 | $ 0.22 |
Shares used in calculating basic earnings per share | 253 | 250.5 | 252.5 | 250.8 |
Diluted earnings per share | $ 0.19 | $ 0.14 | $ 0.39 | $ 0.22 |
Shares used in calculating diluted earnings per share | 257.1 | 253.7 | 256.5 | 253.9 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Net Income | $ 49.9 | $ 35.6 | $ 100.4 | $ 55.3 |
Foreign currency translation adjustments, net of tax | 34.9 | (21.1) | 60.2 | 7.1 |
Net unrealized loss on short-term investments | 0 | 0 | (0.1) | 0 |
Net unrealized actuarial gain (loss), net of tax | (0.1) | 0.1 | (0.2) | 0 |
Comprehensive income | 84.7 | 14.6 | 160.3 | 62.4 |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | (0.1) | 0 | (0.2) |
Comprehensive income attributable to Trimble Inc. | $ 84.7 | $ 14.7 | $ 160.3 | $ 62.6 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Cash flow from operating activities: | ||
Net Income | $ 100.4 | $ 55.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 17.7 | 18.8 |
Amortization expense | 69.1 | 79.9 |
Provision for doubtful accounts | 0.9 | 2.4 |
Deferred income taxes | (0.2) | 0.5 |
Stock-based compensation | 28.9 | 26.7 |
Income from equity method investments | (14.1) | (8.7) |
Divestiture gain, net | (8) | (2.7) |
Provision for excess and obsolete inventories | 1.6 | 8.8 |
Other non-cash items | (1.6) | 3 |
Decrease (increase) in assets: | ||
Accounts receivable | (31) | (18.2) |
Other receivables | 2.8 | (1.5) |
Inventories | (1.8) | 11.2 |
Other current and non-current assets | (14) | (7.8) |
Increase (decrease) in liabilities: | ||
Accounts payable | 22 | 6.4 |
Accrued compensation and benefits | 14.1 | 2.2 |
Deferred revenue | 49.4 | 53.8 |
Accrued warranty | 0.1 | (0.7) |
Other liabilities | 12.4 | (33.8) |
Net cash provided by operating activities | 248.7 | 195.6 |
Cash flow from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (129.8) | (20) |
Acquisitions of property and equipment | (15.6) | (12.2) |
Purchases of equity method investments | 0 | (1.5) |
Purchases of short-term investments | (137.6) | 0 |
Proceeds from maturities of short-term investments | 56.8 | 0 |
Proceeds from sales of short-term investments | 90.6 | 0 |
Net proceeds from sales of businesses | 20.1 | 10.7 |
Dividends received from equity method investments | 5 | 10.7 |
Other | 0.2 | (0.3) |
Net cash used in investing activities | (110.3) | (12.6) |
Cash flow from financing activities: | ||
Issuance of common stock, net of tax withholdings | 49.8 | 25 |
Repurchases and retirement of common stock | (20.4) | (88.3) |
Proceeds from debt and revolving credit lines | 340 | 202 |
Payments on debt and revolving credit lines | (350.1) | (207) |
Net cash provided by (used in) financing activities | 19.3 | (68.3) |
Effect of exchange rate changes on cash and cash equivalents | 11.1 | 1.2 |
Net increase in cash and cash equivalents | 168.8 | 115.9 |
Cash and cash equivalents - beginning of period | 216.1 | 116 |
Cash and cash equivalents - end of period | $ 384.9 | $ 231.9 |
OVERVIEW AND BASIS OF PRESENTAT
OVERVIEW AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OVERVIEW AND BASIS OF PRESENTATION | OVERVIEW AND BASIS OF PRESENTATION The Company began operations in 1978 and was originally incorporated in California as Trimble Navigation Limited in 1981. On October 1, 2016, Trimble Navigation Limited changed its name to Trimble Inc. ("Trimble" or the "Company") and changed its state of incorporation from the State of California to the State of Delaware. Other than the change in corporate domicile, the reincorporation did not result in any change in the business, physical location, management, assets, liabilities or total stockholders' equity of the Company, nor did it result in any change in location of the Company's employees, including the Company's management. Trimble is a provider of technology solutions that enable professionals and field mobile workers to improve or transform their work processes. Trimble's solutions are used across a range of industries including agriculture, architecture, civil engineering, survey and land administration, construction, geospatial, government, natural resources, transportation and utilities. Representative Trimble customers include engineering and construction firms, surveying companies, farmers and agricultural companies, enterprise firms with large-scale fleets, energy, mining and utility companies, and state, federal and municipal governments. Trimble focuses on integrating broad technological and application capabilities to create system-level solutions that transform how work is done within the industries the Company serves. Products are sold based on return on investment and provide benefits such as lower operational costs, higher productivity, improved quality, enhanced safety and regulatory compliance, and reduced environmental impact. Representative products include equipment that automates large industrial equipment such as tractors and bulldozers; 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 a farm; and building information modeling ("BIM") software that is used throughout the design, build, and operation of buildings. Basis of Presentation The Company has a 52-53 week fiscal year, ending on the Friday nearest to December 31, which for fiscal 2016 was December 30, 2016 . The second quarter of fiscal 2017 and 2016 ended on June 30, 2017 and July 1, 2016 , respectively. Both fiscal 2017 and 2016 are 52-week years. 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 stockholders’ proportionate share of the net assets and results of operations of the Company’s consolidated subsidiaries. Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation, including certain line items within the Consolidated Statement of Cash Flows, due to the adoption of accounting for certain aspects of the share-based payments awards, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements. Reportable Segments In March 2017, the Company effected a change in the reporting of its segment financial results to better reflect the Company's customer base and end markets. Beginning with the first quarter of fiscal 2017, the Company is reporting its financial performance, including revenues and operating income, based on four new reportable segments: Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. Comparative period financial information by reportable segment has been recast to conform with the current presentation. See Note 6 of the Notes to Condensed Consolidated Financial Statements for further information. Unaudited Interim Financial Information The accompanying financial data as of the end of the second quarter of fiscal 2017 and for the second quarter and the first two quarters of fiscal 2017 and 2016 have 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 2016 is derived from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for fiscal year 2016 . The following discussion should be read in conjunction with the Company’s 2016 Annual Report on Form 10-K. In the opinion of management, all adjustments necessary have been made to present a fair statement of financial positions and results for the interim periods presented. The results of operations for the second quarter and the first two quarters of fiscal 2017 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. Use of Estimates 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. Estimates are used for allowances for doubtful accounts, sales returns reserve, allowances for inventory valuation, warranty costs, investments, goodwill impairment, intangibles impairment, purchased intangibles, stock-based compensation, and income taxes among others. 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. The Company has presented revenue and cost of sales separately for products, service and subscriptions. Product revenue includes hardware, software licenses, parts and accessories; service revenue includes maintenance and support for hardware and software products, training and professional services; subscription revenue includes software as a service ("SaaS"). |
UPDATES TO SIGNIFICANT ACCOUNTI
UPDATES TO SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
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 two quarters of fiscal 2017 from those disclosed in the Company’s most recent Form 10-K. Recent Accounting Pronouncements In May 2014, the FASB issued a comprehensive new revenue recognition standard that replaces the current revenue recognition guidance under U.S. GAAP. The new standard requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company expects to adopt this accounting standard update in the first quarter of fiscal 2018. The Company is currently in the process of assessing the adoption methodology, which allows the standard to be applied either retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. The Company's final determination will depend on a number of factors, such as the significance of the impact of the new standard on our financial results, system readiness, and its ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. The Company does not anticipate that its internal control framework will materially change, but rather existing internal controls will be modified and augmented as necessary to implement the new revenue standard. The new standard may impact, in some cases, the timing and amount of revenue recognized. Additionally, direct costs to obtain and fulfill customer contracts, in some cases, may be deferred and amortized under the new standard. The Company has completed an initial assessment of the revenue streams and related direct costs and is currently evaluating the qualitative and quantitative impacts on the financial statements and related disclosures. In January 2016, the FASB issued final guidance that will require entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The amendments are effective for the Company beginning in fiscal 2018, although early adoption is permitted and should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with certain exceptions. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. In February 2016, the FASB issued new guidance that requires a lessee to recognize assets and liabilities arising from leases on the balance sheet. Current GAAP does not require lease assets and liabilities to be recognized for most leases. Additionally, companies are permitted to make an accounting policy election to not recognize lease assets and liabilities for leases with a term of 12 months or less. For both finance leases and operating leases, the lease liability should be initially measured at the present value of the lease payments. This new guidance is effective for the Company beginning in fiscal 2019, although early adoption is permitted. The Company is currently evaluating the effect of this guidance on its consolidated financial statements and related disclosures. In June 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be presented based on the net amount expected to be collected, not based on incurred losses. Further, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new standard is effective for the Company beginning in fiscal 2020. Early adoption for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 is permitted. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. In August 2016, the FASB issued new guidance related to the statement of cash flows. This guidance amended the existing accounting standards for the statement of cash flows and provided guidance on certain classification issues related to the statement of cash flows. The new standard is effective for the Company beginning in fiscal 2018 and early adoption is permitted. The amendments should be applied retrospectively to all periods presented. For issues that are impracticable to apply retrospectively, the amendments may be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of these amendments on its statement of cash flows, which will likely include a reclassification of contingent consideration payments for business combinations from cash flows from investing activities, to both cash flows from operating and financing activities. In October 2016, the FASB issued new guidance related to income taxes. This standard requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The guidance will be effective for the Company in its first quarter of fiscal 2018. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. In January 2017, the FASB issued new guidance that simplifies the accounting for goodwill impairment by requiring impairment charges to be based on the first step in current GAAP's two-step impairment test. The impairment test is performed by comparing the fair value of a reporting unit with its carrying amount and an impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is to be applied on a prospective basis and is effective for the Company beginning in fiscal 2020 and early adoption is permitted. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. In February 2017, the FASB issued new guidance clarifying the scope and application of existing guidance related to the sale or transfer of non-financial assets to non-customers, including partial sales. The amendments are effective at the same time as the new revenue recognition guidance, which the Company expects to adopt in the first quarter of fiscal 2018. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Activities In August 2015, the Company’s Board of Directors approved a stock repurchase program (2015 Stock Repurchase Program), authorizing the Company to repurchase up to $400.0 million of Trimble’s common stock. Under the share repurchase program, the Company may repurchase shares from time to time in open market transactions, privately negotiated transactions, accelerated share buyback programs, tender offers, or by other means. The timing and amount of repurchase transactions will be determined by the Company’s management based on its evaluation of market conditions, share price, legal requirements and other factors. The program may be suspended, modified or discontinued at any time without prior notice. During the first two quarters of fiscal 2017 , the Company repurchased approximately 0.8 million shares of common stock in open market purchases, at an average price of $32.34 per share, for a total of $27.4 million under the 2015 Stock Repurchase Program. Stock repurchases are reflected as a decrease to common stock based on par value and additional-paid-capital based on the average book value per share for all outstanding shares calculated at the time of each individual repurchase transaction. The excess of the purchase price over this average for each repurchase is charged to retained earnings. As a result of the 2017 repurchases, retained earnings was reduced by $22.7 million in the first two quarters of fiscal 2017 . Common stock repurchases under the program were recorded based upon the trade date for accounting purposes. At the end of the first two quarters of fiscal 2017 , the 2015 Stock Repurchase Program had remaining authorized funds of $103.0 million . Stock-Based Compensation Expense Stock compensation expense is recognized 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 following table summarizes stock-based compensation expense for the second quarter and first two quarters of fiscal 2017 and 2016 . Second Quarter of First Two Quarters of 2017 2016 2017 2016 (In millions) Cost of sales $ 0.9 $ 0.9 $ 1.7 $ 1.9 Research and development 2.6 2.4 5.0 4.7 Sales and marketing 2.4 2.2 4.6 4.2 General and administrative 9.3 7.5 17.6 15.9 Total operating expense 14.3 12.1 27.2 24.8 Total stock-based compensation expense $ 15.2 $ 13.0 $ 28.9 $ 26.7 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS During the first two quarters of fiscal 2017 , the Company acquired seven businesses, with total cash consideration of $158.0 million . The Condensed Consolidated Statements of Income include the operating results of the businesses from the dates of acquisition. The acquisitions were not significant individually or in the aggregate. The largest acquisition was a manufacturer of vision-based automatic wayside inspection systems for the railroad industry. In the aggregate, the businesses acquired during the first two quarters of fiscal 2017 contributed less than one percent to the Company's total revenue during the first two quarters of fiscal 2017 . In the beginning of the third quarter of fiscal 2017, the Company acquired privately-held Müller-Elektronik, a German company specializing in implement control and precision farming solutions. The acquisition was purchased with a portion of the Company's existing foreign cash. 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 the last two quarters of fiscal 2016 and the first two quarters of fiscal 2017 , 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. The fair value of identifiable assets acquired and liabilities assumed were determined under the acquisition method of accounting for business combinations. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair value of intangible assets acquired is generally determined based on a discounted cash flow analysis. Acquisition costs directly related to the acquisitions, including the changes in the fair value of the contingent consideration liabilities, of $4.3 million and $6.4 million for the second quarter and the first two quarters of fiscal 2017 , respectively, and $0.9 million and $2.5 million for the second quarter and the first two quarters of fiscal 2016 , respectively, were expensed as incurred and were included in General and administrative expense in the Condensed Consolidated Statements of Income. The following table summarizes the Company’s business combinations completed during the first two quarters of fiscal 2017 : First Two Quarters of 2017 (In millions) Fair value of total purchase consideration $ 158.0 Less fair value of net assets acquired: Net tangible assets acquired 7.0 Identifiable intangible assets 91.5 Deferred income taxes (5.9 ) Goodwill $ 65.4 Intangible Assets The following table presents details of the Company’s total intangible assets: As of Second Quarter of Fiscal 2017 Fiscal Year End 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying (In millions) Amount Amortization Amount Amount Amortization Amount Developed product technology $ 853.5 $ (672.9 ) $ 180.6 $ 794.8 $ (620.6 ) $ 174.2 Trade names and trademarks 54.7 (45.7 ) 9.0 50.9 (42.9 ) 8.0 Customer relationships 487.4 (321.9 ) 165.5 438.7 (294.1 ) 144.6 Distribution rights and other intellectual properties 67.2 (58.8 ) 8.4 64.3 (57.8 ) 6.5 $ 1,462.8 $ (1,099.3 ) $ 363.5 $ 1,348.7 $ (1,015.4 ) $ 333.3 The estimated future amortization expense of purchased intangible assets as of the end of the second quarter of fiscal 2017 was as follows: (In millions) 2017 (Remaining) $ 72.6 2018 117.8 2019 77.1 2020 48.7 2021 27.0 Thereafter 20.3 Total $ 363.5 Goodwill In March 2017, the information used to allocate resources and assess performance that is provided to the Company's chief operating decision maker, its Chief Executive Officer, changed to better reflect the Company's customer base and end markets. The new reporting structure consists of four operating segments, each representing a single reporting unit: Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. Goodwill was reassigned to the new reporting units using the relative fair values and, as a result of this reassignment, an impairment assessment was performed immediately before and after the reorganization of the Company’s reporting structure. There was no goodwill impairment resulting from this assessment in the first quarter of fiscal 2017. The changes in the carrying amount of goodwill by segment for the first two quarters of fiscal 2017 were as follows: Buildings and Infrastructure Geospatial Resources and Utilities Transportation Total (In millions) Balance as of fiscal year end 2016 $ 663.7 $ 405.1 $ 217.7 $ 791.1 $ 2,077.6 Additions due to acquisitions — 31.9 33.5 65.4 Purchase price adjustments- prior years' acquisitions (0.1 ) — — — (0.1 ) Foreign currency translation adjustments 27.2 10.8 5.1 4.6 47.7 Divestiture (1) — (6.9 ) — — (6.9 ) Balance as of the end of the second quarter of fiscal 2017 $ 690.8 $ 409.0 $ 254.7 $ 829.2 $ 2,183.7 (1) In the first quarter of 2017, the Company sold its ThingMagic business, which was part of the Geospatial segment. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2017 | |
Inventory, Net [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: Second Quarter of Fiscal Year End As of 2017 2016 (In millions) Raw materials $ 72.5 $ 77.9 Work-in-process 9.6 6.8 Finished goods 141.2 134.1 Total inventories $ 223.3 $ 218.8 Finished goods includes $17.4 million and $14.4 million at the end of the second quarter of fiscal 2017 and fiscal year end 2016 for costs of sales that have been deferred in connection with deferred revenue arrangements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company's Chief Executive Officer (our chief operating decision maker or "CODM") in deciding how to allocate resources and assess performance. The CODM evaluates each segment’s performance and allocates resources based on segment operating income before income taxes and 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 impracticable to segregate and identify revenue for each of the individual products or group of products. Stock-based compensation is shown in the aggregate within unallocated corporate expense and is not reflected in the segment results, which is consistent with the way the CODM evaluates each segment's performance and allocates resources. Prior to fiscal 2017, the Company operated its business in four reportable segments - Engineering and Construction, Field Solutions, Mobile Solutions, and Advanced Devices. In March 2017, the Company effected a change in the reporting of its segment financial results to better reflect the Company’s customer base and end markets. Over time, the Company has experienced significant growth both organically and through strategic business acquisitions, resulting in an increasingly diversified business model. As a result of the Company’s evolution, the CODM changed the information he regularly reviews to allocate resources and assess performance. Beginning with the first fiscal quarter of 2017, the Company reports its financial performance based on four new reportable segments - Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. The Company’s reportable segments are described below: • Buildings and Infrastructure: This segment primarily serves customers working in architecture, engineering, construction, and operations and maintenance. • Geospatial: This segment primarily serves customers working in surveying, engineering, government, and land management. • Resources and Utilities: This segment primarily serves customers working in agriculture, forestry, and utilities. • Transportation: This segment primarily serves customers working in transportation, including transportation and logistics, automotive, rail, and military aviation. The following tables present revenue, operating income, depreciation expense and identifiable assets for the four reportable segments. Operating income is revenue less cost of sales and operating expense, excluding unallocated corporate expenses, restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition and divestiture items, and executive transition costs. The identifiable assets that the CODM views by segment are accounts receivable, inventories and goodwill. Reporting Segments Buildings and Infrastructure Geospatial Resources and Utilities Transportation Total (In millions) Second Quarter of Fiscal 2017 Revenue $ 222.7 $ 165.3 $ 111.0 $ 162.9 $ 661.9 Operating income 50.4 30.2 34.8 26.2 141.6 Depreciation expense 1.5 1.5 0.6 1.4 5.0 Second Quarter of Fiscal 2016 Revenue $ 202.8 $ 163.9 $ 99.0 $ 143.9 $ 609.6 Operating income 38.9 28.5 29.9 20.4 117.7 Depreciation expense 1.9 1.9 0.5 1.3 5.6 First Two Quarters of Fiscal 2017 Segment revenue $ 410.8 $ 315.1 $ 230.9 $ 319.0 $ 1,275.8 Operating income 83.1 58.1 77.0 51.0 269.2 Depreciation expense 3.3 2.8 1.2 2.8 10.1 First Two Quarters of Fiscal 2016 Segment revenue $ 376.5 $ 316.1 $ 212.8 $ 287.2 $ 1,192.6 Operating income 61.3 54.6 64.8 44.2 224.9 Depreciation expense 3.7 3.5 1.0 2.6 10.8 As of the Second Quarter of Fiscal 2017 Accounts receivable, net $ 127.4 $ 118.7 $ 64.7 $ 84.5 $ 395.3 Inventories 50.3 100.9 30.7 41.4 223.3 Goodwill 690.8 409.0 254.7 829.2 2,183.7 As of Fiscal Year End 2016 Accounts receivable, net $ 104.7 $ 108.3 $ 65.5 $ 76.3 $ 354.8 Inventories 51.3 100.4 31.0 36.1 218.8 Goodwill 663.7 405.1 217.7 791.1 2,077.6 A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows: Second Quarter of First Two Quarters of 2017 2016 2017 2016 (In millions) Consolidated segment operating income $ 141.6 $ 117.7 $ 269.2 $ 224.9 Unallocated corporate expense (20.4 ) (18.7 ) (38.8 ) (37.4 ) Restructuring charges (2.8 ) (4.9 ) (6.2 ) (7.0 ) Amortization of purchased intangible assets (35.8 ) (39.6 ) (69.1 ) (79.9 ) Stock-based compensation (15.2 ) (13.0 ) (28.9 ) (26.7 ) Amortization of acquisition-related inventory step-up (0.5 ) — (0.6 ) — Acquisition and divestiture items (4.3 ) (0.9 ) (6.4 ) (2.5 ) Executive transition costs — (0.1 ) — (1.0 ) Consolidated operating income 62.6 40.5 119.2 70.4 Non-operating income (expense), net: 5.0 (2.2 ) 14.0 (2.7 ) Consolidated income before taxes $ 67.6 $ 38.3 $ 133.2 $ 67.7 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
DEBT, COMMITMENTS AND CONTINGENCIES | DEBT Debt consisted of the following: Second Quarter of Fiscal Year End As of 2017 2016 (In millions) Notes: Principal amount $ 400.0 $ 400.0 Unamortized discount on Notes (2.3 ) (2.5 ) Debt issuance costs (2.3 ) (2.4 ) Credit Facilities: 2014 Credit Facility 69.0 94.0 Uncommitted facilities 147.0 130.0 Promissory notes and other debt 0.9 0.8 Total debt 612.3 619.9 Less: Short-term debt 147.3 130.3 Long-term debt $ 465.0 $ 489.6 Notes In November 2014, the Company issued $400.0 million of Senior Notes (the "Notes") in a public offering registered with the Securities and Exchange Commission. The Notes mature on December 1, 2024 and accrue interest at a rate of 4.75% per annum, payable semiannually in arrears in cash on December 1 and June 1 of each year. The Notes are classified as long-term in the Condensed Consolidated Balance Sheet and are presented net of unamortized discount and debt issuance costs. The discount and debt issuance costs are being amortized to interest expense using the effective interest rate method over the term of the Notes. In connection with the Notes offering, Trimble entered into an Indenture with U.S. Bank National Association, as trustee. Trimble may redeem the Notes at its option at any time, in accordance with the terms and conditions set forth in the Indenture. The Indenture contains no financial covenants. Further details regarding the terms of the Notes, including the redemption rights, and the Indenture, are provided in the Company’s fiscal 2016 Annual Report on Form 10-K. Credit Facilities 2014 Credit Facility In November 2014, the Company entered into a five -year credit agreement with a group of lenders, which provides for an unsecured revolving loan facility of $1.0 billion (the "2014 Credit Facility"). Under the 2014 Credit Facility, the Company may borrow, repay and reborrow funds under the revolving loan facility until its maturity on November 24, 2019, at which time the revolving facility will terminate, and all outstanding loans, together with all accrued and unpaid interest, must be repaid. The interest rate on the non-current debt outstanding under the 2014 Credit Facility was 2.26% and 1.80% at the end of the second quarter of fiscal 2017 and fiscal year end 2016 , respectively, and is payable on a quarterly basis. Amounts not borrowed under the revolving facility will be subject to a commitment fee. The outstanding balance of $69.0 million as of the end of the second quarter of fiscal 2017 and $94.0 million at the end of fiscal 2016 are classified as long-term debt in the Condensed Consolidated Balance Sheet. Unamortized debt issuance costs associated with the 2014 Credit Facility are presented as assets in the Condensed Consolidated Balance sheet and are being amortized to interest expense using the effective interest rate method over the term of the 2014 Credit Facility. In February 2016, the Company entered into an amendment to the 2014 Credit Facility to facilitate the Company's reincorporation from California to Delaware and to effect other non-financial terms. In August 2016, the Company entered into a second amendment to revise a definition used in determining when a change of control of the Company may occur. The Company was in compliance with all covenants pertaining to the 2014 Credit Facility at the end of the second quarter of fiscal 2017 . Uncommitted Facilities The Company also has two $75 million revolving credit facilities which are uncommitted (the "Uncommitted Facilities"). The Uncommitted Facilities may be called by the lenders at any time, have no covenants and no specified expiration date. The $147.0 million outstanding at the end of the second quarter of fiscal 2017 and the $130.0 million outstanding at the end of fiscal 2016 under the Uncommitted Facilities are classified as short-term debt in the Condensed Consolidated Balance Sheet. The weighted average interest rate on the Uncommitted Facilities was 1.91% at the end of the second quarter of fiscal 2017 and 1.65% at the end of fiscal 2016 . Promissory Notes and Other Debt At the end of the second quarter of fiscal 2017 and the year end of fiscal 2016 , the Company had promissory notes and other notes payable totaling approximately $0.9 million and $0.8 million , respectively, of which $0.6 million and $0.5 million , respectively, was classified as long-term in the Condensed Consolidated Balance Sheet. Debt Maturities At the end of the second quarter of fiscal 2017 , the Company's debt maturities based on outstanding principal were as follows (in millions): Year Payable 2017 (Remaining) $ 147.3 2018 0.2 2019 0.2 2020 69.2 2021 — Thereafter 400.0 Total $ 616.9 |
CASH EQUIVALENTS AND INVESTMENT
CASH EQUIVALENTS AND INVESTMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents, and Short-term Investments | CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company started to invest in available-for-sale securities in the third quarter of fiscal 2016. The following table summarizes the Company’s available-for-sale securities at the end of the second quarter of fiscal 2017 and at the end of fiscal 2016. Second Quarter of Fiscal 2017 At the end of Fiscal 2016 (In millions) Available-for-sale securities: U.S. Treasury securities $ 11.7 $ 11.7 Municipal debt securities — 10.0 Corporate debt securities 73.9 31.7 Time deposit — 2.4 Commercial paper 28.8 77.5 Total available-for-sale securities $ 114.4 $ 133.3 Reported as: Cash equivalents $ 13.2 $ 22.2 Short-term investments 101.2 111.1 Total $ 114.4 $ 133.3 The Company did not realize any gains or losses on its available-for-sale securities during the second quarter of 2017 , and the net unrealized loss was $0.1 million which was included in Accumulated other comprehensive loss at the end of the second quarter of 2017 . The following table presents the contractual maturities of the Company's available-for-sale investments at the end of the second quarter of fiscal 2017 . Second Quarter of Fiscal 2017 (In millions) Amortized Cost Due in less than 1 year $ 106.2 Due in 1 to 5 years 8.2 Due in 5-10 years — Due after 10 years — Total $ 114.4 The Company’s available-for-sale securities are liquid and may be sold in the future to fund future operating needs. As a result, the Company recorded all of its available-for-sale securities, not classified as Cash equivalents, in Short-term investments regardless of the contractual maturity date of the securities. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
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 at the measurement date. 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. 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 end of the Second Quarter of Fiscal 2017 Fair Values as of Fiscal Year End 2016 (In millions) Level I Level II Level III Total Level I Level II Level III Total Assets Available-for-sale securities: U.S. Treasury securities (1) $ — $ 11.7 $ — $ 11.7 $ — $ 11.7 $ — $ 11.7 Municipal debt securities (1) — — — — — 10.0 — 10.0 Corporate debt securities (1) — 73.9 — 73.9 — 31.7 — 31.7 Time deposit (1) — — — — — 2.4 — 2.4 Commercial paper (1) — 28.8 — 28.8 — 77.5 — 77.5 Total available-for-sale securities — 114.4 — 114.4 — 133.3 — 133.3 Deferred compensation plan assets (2) 25.8 — — 25.8 22.6 — — 22.6 Derivative assets (3) — 1.0 — 1.0 — 0.2 — 0.2 Contingent consideration assets (4) — — 7.0 7.0 — — 7.0 7.0 Total assets measured at fair value $ 25.8 $ 115.4 $ 7.0 $ 148.2 $ 22.6 $ 133.5 $ 7.0 $ 163.1 Liabilities Deferred compensation plan liabilities (2) $ 25.8 $ — $ — $ 25.8 $ 22.6 $ — $ — $ 22.6 Derivative liabilities (3) — 0.4 — 0.4 — 0.1 — 0.1 Contingent consideration liabilities (5) — — 21.2 21.2 — — 4.5 4.5 Total liabilities measured at fair value $ 25.8 $ 0.4 $ 21.2 $ 47.4 $ 22.6 $ 0.1 $ 4.5 $ 27.2 (1) The Company’s available-for sale securities are valued using readily available pricing sources for comparable instruments, or model-driven valuations using significant inputs derived from or corroborated by observable market data, including yield curves and credit ratings. (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, respectively, 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. The fair values are determined using inputs based on observable quoted prices. 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 assets represent arrangements for buyers to pay the Company for certain businesses that it has divested. The fair values are determined based on the Company's expectations of future receipts and the effects of the application of discount rates. The minimum amount to be received under these arrangements is $3.5 million . Contingent consideration assets are included in Other receivables and Other non-current assets on the Company's Condensed Consolidated Balance Sheets. (5) Contingent consideration liabilities represent arrangements to pay the former owners of certain companies that Trimble acquired. The undiscounted maximum payments under the arrangements is $56.9 million at the end of the second quarter of fiscal 2017 . The fair values are determined using the expected cash flow approach based upon estimated future revenues, gross margins or other milestones. 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 outstanding financial instruments: Carrying Amount Fair Value Carrying Amount Fair Value As of Second Quarter of Fiscal 2017 Fiscal Year End 2016 (In millions) Liabilities: Notes $ 400.0 $ 431.0 $ 400.0 $ 410.6 2014 Credit Facility 69.0 69.0 94.0 94.0 Uncommitted facilities 147.0 147.0 130.0 130.0 Promissory notes and other debt 0.9 0.9 0.8 0.8 The fair value of the Notes was determined based on observable market prices in less active markets and is categorized accordingly as Level II 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 | 6 Months Ended |
Jun. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
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. When products sold include warranty provisions, they are covered by a warranty for periods ranging generally from 1 year to 2 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 two quarters of fiscal 2017 are as follows: (In millions) Balance as of fiscal year end 2016 $ 17.2 Acquired warranties 0.2 Accruals for warranties issued 9.0 Changes in estimates (0.3 ) Warranty settlements (in cash or in kind) (8.6 ) Balance as of the end of the second quarter of fiscal 2017 $ 17.5 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing Net income attributable to Trimble Inc. 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 Inc.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, restricted stock units and contingently issuable shares. 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: Second Quarter of First Two Quarters of 2017 2016 2017 2016 (In millions, except per share amounts) Numerator: Net income attributable to Trimble Inc. $ 49.9 $ 35.7 $ 100.4 $ 55.5 Denominator: Weighted average number of common shares used in basic earnings per share 253.0 250.5 252.5 250.8 Effect of dilutive securities 4.1 3.2 4.0 3.1 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 257.1 253.7 256.5 253.9 Basic earnings per share $ 0.20 $ 0.14 $ 0.40 $ 0.22 Diluted earnings per share $ 0.19 $ 0.14 $ 0.39 $ 0.22 For the second quarter of fiscal 2017 and 2016 , the Company excluded 0.7 million and 4.5 million shares of outstanding stock options, respectively, from the calculation of diluted earnings per share because their effect would have been antidilutive. For the first two quarters of fiscal 2017 and 2016 , the Company excluded 0.7 million and 4.8 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 | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the second quarter of fiscal 2017 , the Company’s effective income tax rate was 26% as compared to 7% in the corresponding period in fiscal 2016 , primarily due to a one time discrete tax benefit from the divestiture of the Advanced Public Safety (APS) business in the second quarter of 2016. For the first two quarters of fiscal 2017 , the Company's effective income tax rate was 25% as compared to 18% in the corresponding period in fiscal 2016, primarily due to a one time discrete tax benefit from the APS divestiture in the second quarter of 2016, partially offset by a favorable change in the geographic mix of pre-tax income in fiscal 2017. Historically, the Company's effective tax rate has been lower than the U.S. federal statutory rate of 35% primarily due to the tax rates associated with certain earnings from operations in lower-tax jurisdictions. The Company has not provided for U.S. taxes on such earnings due to the indefinite reinvestment of such earnings outside the U.S. 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 (the "IRS") as well as various state and foreign taxing authorities. In the first quarter of fiscal 2015, the Company received a Notice of Proposed Adjustment from the IRS for the fiscal years 2010 and 2011. The proposed adjustments primarily relate to the valuations of intercompany transfers of acquired intellectual property. The assessments of tax, interest and penalties for the years in question total $67.0 million . The Company does not agree with the IRS position and filed a protest with the IRS Appeals Office in April 2015. The IRS appeals process commenced in March 2016. Although the Company continues to believe in the merits of its positions, during the fourth quarter of fiscal 2016, the Company submitted a written proposal to the IRS to settle certain aspects of the assessments constituting $15.8 million of the total $67.0 million assessment. The Company intends to vigorously contest the IRS position on the remaining items, and believes that its existing reserves are adequate. Although timing of the resolution and/or closure of audits is not certain, the Company believes it is reasonably possible that its gross unrecognized tax benefits could decrease (whether by payment, release or a combination of both) in the next 12 months by up to $8.6 million primarily related to the IRS partial settlement discussed above. The unrecognized tax benefits of $66.9 million and $60.5 million as of the end of the second quarter of fiscal 2017 and fiscal year end 2016, 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. As of the end of the second quarter of fiscal 2017 and fiscal year end 2016, the Company had accrued $10.1 million and $9.3 million , respectively, for interest and penalties, which are recorded in Other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases and Other Commitments The estimated future minimum operating lease commitments as of the end of the second quarter of fiscal 2017 are as follows (in millions): 2017 (Remaining) $ 17.7 2018 33.1 2019 25.0 2020 18.7 2021 15.1 Thereafter 40.3 Total $ 149.9 As of the end of the second quarter of fiscal 2017 , the Company had unconditional purchase obligations of approximately $186.0 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. Additionally, the Company has certain acquisitions which include additional earn-out cash payments based on estimated future revenues, gross margins or other milestones. As of the end of the second quarter of fiscal 2017 , the Company had $21.2 million included in Other current liabilities and Other non-current liabilities related to these earn-outs, representing the fair value of the contingent consideration. Litigation On September 2, 2011, Recreational Data Services, LLC filed a lawsuit in the Superior Court for the State of Alaska in Anchorage against Trimble Navigation Limited, Cabela’s Incorporated, AT&T Mobility and Alascom, Inc., alleging breach of contract, breach of fiduciary duty, interference with contract, promissory estoppel, fraud, and negligent misrepresentation. The case was tried in front of a jury in Alaska beginning on September 9, 2014. On September 26, 2014, the jury returned a verdict in favor of the plaintiff and awarded the plaintiff damages of $51.3 million . On January 29, 2015, the court granted our Motion for Judgment Notwithstanding the Verdict, and on March 18, 2015, the Court awarded the Company a portion of its incurred attorneys’ fees and costs, and entered Final Judgment in the Company’s favor in the amount of $0.6 million . The Final Judgment also provides that the plaintiff take nothing on its claims. On April 17, 2015, the plaintiff filed a Notice of Appeal to the Alaska Supreme Court. On March 24, 2017, the Alaska Supreme Court affirmed, in part, and reversed, in part, the trial court's decision. The Alaska Supreme Court affirmed the trial court's determination that Plaintiff had not proven damages and was not entitled to recover any lost profits, but remanded the case to the trial court for an award of nominal damages to Plaintiff. On April 17, 2017, Plaintiff filed a Motion for Rehearing with the Alaska Supreme Court. On August 3, 2017, the Alaska Supreme Court denied rehearing on the finding that Plaintiff had failed to prove damages, returning the case to the trial court to award nominal damages. From time to time, the Company is also involved in litigation arising out of the ordinary course of its 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 ACCOUN20
UPDATES TO SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Reclassification Policy, Reportable Segments | Reportable Segments In March 2017, the Company effected a change in the reporting of its segment financial results to better reflect the Company's customer base and end markets. Beginning with the first quarter of fiscal 2017, the Company is reporting its financial performance, including revenues and operating income, based on four new reportable segments: Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. Comparative period financial information by reportable segment has been recast to conform with the current presentation. See Note 6 of the Notes to Condensed Consolidated Financial Statements for further information. |
Use of Estimates, Policy | Use of Estimates 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. Estimates are used for allowances for doubtful accounts, sales returns reserve, allowances for inventory valuation, warranty costs, investments, goodwill impairment, intangibles impairment, purchased intangibles, stock-based compensation, and income taxes among others. 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. |
Revenue Recognition, Policy | The Company has presented revenue and cost of sales separately for products, service and subscriptions. Product revenue includes hardware, software licenses, parts and accessories; service revenue includes maintenance and support for hardware and software products, training and professional services; subscription revenue includes software as a service ("SaaS"). |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements In May 2014, the FASB issued a comprehensive new revenue recognition standard that replaces the current revenue recognition guidance under U.S. GAAP. The new standard requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company expects to adopt this accounting standard update in the first quarter of fiscal 2018. The Company is currently in the process of assessing the adoption methodology, which allows the standard to be applied either retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. The Company's final determination will depend on a number of factors, such as the significance of the impact of the new standard on our financial results, system readiness, and its ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. The Company does not anticipate that its internal control framework will materially change, but rather existing internal controls will be modified and augmented as necessary to implement the new revenue standard. The new standard may impact, in some cases, the timing and amount of revenue recognized. Additionally, direct costs to obtain and fulfill customer contracts, in some cases, may be deferred and amortized under the new standard. The Company has completed an initial assessment of the revenue streams and related direct costs and is currently evaluating the qualitative and quantitative impacts on the financial statements and related disclosures. In January 2016, the FASB issued final guidance that will require entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The amendments are effective for the Company beginning in fiscal 2018, although early adoption is permitted and should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with certain exceptions. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. In February 2016, the FASB issued new guidance that requires a lessee to recognize assets and liabilities arising from leases on the balance sheet. Current GAAP does not require lease assets and liabilities to be recognized for most leases. Additionally, companies are permitted to make an accounting policy election to not recognize lease assets and liabilities for leases with a term of 12 months or less. For both finance leases and operating leases, the lease liability should be initially measured at the present value of the lease payments. This new guidance is effective for the Company beginning in fiscal 2019, although early adoption is permitted. The Company is currently evaluating the effect of this guidance on its consolidated financial statements and related disclosures. In June 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be presented based on the net amount expected to be collected, not based on incurred losses. Further, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new standard is effective for the Company beginning in fiscal 2020. Early adoption for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 is permitted. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. In August 2016, the FASB issued new guidance related to the statement of cash flows. This guidance amended the existing accounting standards for the statement of cash flows and provided guidance on certain classification issues related to the statement of cash flows. The new standard is effective for the Company beginning in fiscal 2018 and early adoption is permitted. The amendments should be applied retrospectively to all periods presented. For issues that are impracticable to apply retrospectively, the amendments may be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of these amendments on its statement of cash flows, which will likely include a reclassification of contingent consideration payments for business combinations from cash flows from investing activities, to both cash flows from operating and financing activities. In October 2016, the FASB issued new guidance related to income taxes. This standard requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The guidance will be effective for the Company in its first quarter of fiscal 2018. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. In January 2017, the FASB issued new guidance that simplifies the accounting for goodwill impairment by requiring impairment charges to be based on the first step in current GAAP's two-step impairment test. The impairment test is performed by comparing the fair value of a reporting unit with its carrying amount and an impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is to be applied on a prospective basis and is effective for the Company beginning in fiscal 2020 and early adoption is permitted. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. In February 2017, the FASB issued new guidance clarifying the scope and application of existing guidance related to the sale or transfer of non-financial assets to non-customers, including partial sales. The amendments are effective at the same time as the new revenue recognition guidance, which the Company expects to adopt in the first quarter of fiscal 2018. The Company is currently evaluating the effect of the updated standard on its consolidated financial statements and related disclosures. |
Share-based Compensation Policy | Stock compensation expense is recognized 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. |
Business Combinations Policy | 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 the last two quarters of fiscal 2016 and the first two quarters of fiscal 2017 , 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. The fair value of identifiable assets acquired and liabilities assumed were determined under the acquisition method of accounting for business combinations. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair value of intangible assets acquired is generally determined based on a discounted cash flow analysis. Acquisition costs directly related to the acquisitions, including the changes in the fair value of the contingent consideration liabilities, of $4.3 million and $6.4 million for the second quarter and the first two quarters of fiscal 2017 , respectively, and $0.9 million and $2.5 million for the second quarter and the first two quarters of fiscal 2016 , respectively, were expensed as incurred and were included in General and administrative expense in the Condensed Consolidated Statements of Income. |
Goodwill, Policy | Goodwill In March 2017, the information used to allocate resources and assess performance that is provided to the Company's chief operating decision maker, its Chief Executive Officer, changed to better reflect the Company's customer base and end markets. The new reporting structure consists of four operating segments, each representing a single reporting unit: Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. Goodwill was reassigned to the new reporting units using the relative fair values and, as a result of this reassignment, an impairment assessment was performed immediately before and after the reorganization of the Company’s reporting structure. |
Available-for-sale Securities, Policy | The Company’s available-for-sale securities are liquid and may be sold in the future to fund future operating needs. As a result, the Company recorded all of its available-for-sale securities, not classified as Cash equivalents, in Short-term investments regardless of the contractual maturity date of the securities. |
Derivatives Asset and Liabilities Policy | 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. The fair values are determined using inputs based on observable quoted prices. Derivative assets and liabilities are included in Other current assets and Other current liabilities on the Company's Condensed Consolidated Balance Sheets. |
Product Warranties 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. When products sold include warranty provisions, they are covered by a warranty for periods ranging generally from 1 year to 2 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. |
Earnings Per Share, Policy | Basic earnings per share is computed by dividing Net income attributable to Trimble Inc. 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 Inc.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, restricted stock units and contingently issuable shares. 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. |
Income Tax, Policy | The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of the end of the second quarter of fiscal 2017 and fiscal year end 2016, the Company had accrued $10.1 million and $9.3 million , respectively, for interest and penalties, which are recorded in Other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Summary Of Stock-Based Compensation Expense, Net Of Tax | The following table summarizes stock-based compensation expense for the second quarter and first two quarters of fiscal 2017 and 2016 . Second Quarter of First Two Quarters of 2017 2016 2017 2016 (In millions) Cost of sales $ 0.9 $ 0.9 $ 1.7 $ 1.9 Research and development 2.6 2.4 5.0 4.7 Sales and marketing 2.4 2.2 4.6 4.2 General and administrative 9.3 7.5 17.6 15.9 Total operating expense 14.3 12.1 27.2 24.8 Total stock-based compensation expense $ 15.2 $ 13.0 $ 28.9 $ 26.7 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Schedule Of Intangible Assets | The following table presents details of the Company’s total intangible assets: As of Second Quarter of Fiscal 2017 Fiscal Year End 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying (In millions) Amount Amortization Amount Amount Amortization Amount Developed product technology $ 853.5 $ (672.9 ) $ 180.6 $ 794.8 $ (620.6 ) $ 174.2 Trade names and trademarks 54.7 (45.7 ) 9.0 50.9 (42.9 ) 8.0 Customer relationships 487.4 (321.9 ) 165.5 438.7 (294.1 ) 144.6 Distribution rights and other intellectual properties 67.2 (58.8 ) 8.4 64.3 (57.8 ) 6.5 $ 1,462.8 $ (1,099.3 ) $ 363.5 $ 1,348.7 $ (1,015.4 ) $ 333.3 |
Schedule Of Estimated Future Amortization Expense | The estimated future amortization expense of purchased intangible assets as of the end of the second quarter of fiscal 2017 was as follows: (In millions) 2017 (Remaining) $ 72.6 2018 117.8 2019 77.1 2020 48.7 2021 27.0 Thereafter 20.3 Total $ 363.5 |
Changes In Carrying Amount Of Goodwill By Operating Segment | The changes in the carrying amount of goodwill by segment for the first two quarters of fiscal 2017 were as follows: Buildings and Infrastructure Geospatial Resources and Utilities Transportation Total (In millions) Balance as of fiscal year end 2016 $ 663.7 $ 405.1 $ 217.7 $ 791.1 $ 2,077.6 Additions due to acquisitions — 31.9 33.5 65.4 Purchase price adjustments- prior years' acquisitions (0.1 ) — — — (0.1 ) Foreign currency translation adjustments 27.2 10.8 5.1 4.6 47.7 Divestiture (1) — (6.9 ) — — (6.9 ) Balance as of the end of the second quarter of fiscal 2017 $ 690.8 $ 409.0 $ 254.7 $ 829.2 $ 2,183.7 |
Series of Individually Immaterial Business Acquisitions [Member] | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Business Combination, Separately Recognized Transactions | The following table summarizes the Company’s business combinations completed during the first two quarters of fiscal 2017 : First Two Quarters of 2017 (In millions) Fair value of total purchase consideration $ 158.0 Less fair value of net assets acquired: Net tangible assets acquired 7.0 Identifiable intangible assets 91.5 Deferred income taxes (5.9 ) Goodwill $ 65.4 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory, Net [Abstract] | |
Components Of Net Inventories | Inventories consisted of the following: Second Quarter of Fiscal Year End As of 2017 2016 (In millions) Raw materials $ 72.5 $ 77.9 Work-in-process 9.6 6.8 Finished goods 141.2 134.1 Total inventories $ 223.3 $ 218.8 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Schedule Of Revenue, Operating Income And Identifiable Assets By Segment | four reportable segments. Operating income is revenue less cost of sales and operating expense, excluding unallocated corporate expenses, restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition and divestiture items, and executive transition costs. The identifiable assets that the CODM views by segment are accounts receivable, inventories and goodwill. Reporting Segments Buildings and Infrastructure Geospatial Resources and Utilities Transportation Total (In millions) Second Quarter of Fiscal 2017 Revenue $ 222.7 $ 165.3 $ 111.0 $ 162.9 $ 661.9 Operating income 50.4 30.2 34.8 26.2 141.6 Depreciation expense 1.5 1.5 0.6 1.4 5.0 Second Quarter of Fiscal 2016 Revenue $ 202.8 $ 163.9 $ 99.0 $ 143.9 $ 609.6 Operating income 38.9 28.5 29.9 20.4 117.7 Depreciation expense 1.9 1.9 0.5 1.3 5.6 First Two Quarters of Fiscal 2017 Segment revenue $ 410.8 $ 315.1 $ 230.9 $ 319.0 $ 1,275.8 Operating income 83.1 58.1 77.0 51.0 269.2 Depreciation expense 3.3 2.8 1.2 2.8 10.1 First Two Quarters of Fiscal 2016 Segment revenue $ 376.5 $ 316.1 $ 212.8 $ 287.2 $ 1,192.6 Operating income 61.3 54.6 64.8 44.2 224.9 Depreciation expense 3.7 3.5 1.0 2.6 10.8 As of the Second Quarter of Fiscal 2017 Accounts receivable, net $ 127.4 $ 118.7 $ 64.7 $ 84.5 $ 395.3 Inventories 50.3 100.9 30.7 41.4 223.3 Goodwill 690.8 409.0 254.7 829.2 2,183.7 As of Fiscal Year End 2016 Accounts receivable, net $ 104.7 $ 108.3 $ 65.5 $ 76.3 $ 354.8 Inventories 51.3 100.4 31.0 36.1 218.8 Goodwill 663.7 405.1 217.7 791.1 2,077.6 |
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: Second Quarter of First Two Quarters of 2017 2016 2017 2016 (In millions) Consolidated segment operating income $ 141.6 $ 117.7 $ 269.2 $ 224.9 Unallocated corporate expense (20.4 ) (18.7 ) (38.8 ) (37.4 ) Restructuring charges (2.8 ) (4.9 ) (6.2 ) (7.0 ) Amortization of purchased intangible assets (35.8 ) (39.6 ) (69.1 ) (79.9 ) Stock-based compensation (15.2 ) (13.0 ) (28.9 ) (26.7 ) Amortization of acquisition-related inventory step-up (0.5 ) — (0.6 ) — Acquisition and divestiture items (4.3 ) (0.9 ) (6.4 ) (2.5 ) Executive transition costs — (0.1 ) — (1.0 ) Consolidated operating income 62.6 40.5 119.2 70.4 Non-operating income (expense), net: 5.0 (2.2 ) 14.0 (2.7 ) Consolidated income before taxes $ 67.6 $ 38.3 $ 133.2 $ 67.7 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Schedule Of Debt | Debt consisted of the following: Second Quarter of Fiscal Year End As of 2017 2016 (In millions) Notes: Principal amount $ 400.0 $ 400.0 Unamortized discount on Notes (2.3 ) (2.5 ) Debt issuance costs (2.3 ) (2.4 ) Credit Facilities: 2014 Credit Facility 69.0 94.0 Uncommitted facilities 147.0 130.0 Promissory notes and other debt 0.9 0.8 Total debt 612.3 619.9 Less: Short-term debt 147.3 130.3 Long-term debt $ 465.0 $ 489.6 |
Schedule of Maturities of Long-term Debt | At the end of the second quarter of fiscal 2017 , the Company's debt maturities based on outstanding principal were as follows (in millions): Year Payable 2017 (Remaining) $ 147.3 2018 0.2 2019 0.2 2020 69.2 2021 — Thereafter 400.0 Total $ 616.9 |
CASH EQUIVALENTS AND INVESTME26
CASH EQUIVALENTS AND INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The following table summarizes the Company’s available-for-sale securities at the end of the second quarter of fiscal 2017 and at the end of fiscal 2016. Second Quarter of Fiscal 2017 At the end of Fiscal 2016 (In millions) Available-for-sale securities: U.S. Treasury securities $ 11.7 $ 11.7 Municipal debt securities — 10.0 Corporate debt securities 73.9 31.7 Time deposit — 2.4 Commercial paper 28.8 77.5 Total available-for-sale securities $ 114.4 $ 133.3 Reported as: Cash equivalents $ 13.2 $ 22.2 Short-term investments 101.2 111.1 Total $ 114.4 $ 133.3 |
Investments Classified by Contractual Maturity Date | The following table presents the contractual maturities of the Company's available-for-sale investments at the end of the second quarter of fiscal 2017 . Second Quarter of Fiscal 2017 (In millions) Amortized Cost Due in less than 1 year $ 106.2 Due in 1 to 5 years 8.2 Due in 5-10 years — Due after 10 years — Total $ 114.4 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
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 end of the Second Quarter of Fiscal 2017 Fair Values as of Fiscal Year End 2016 (In millions) Level I Level II Level III Total Level I Level II Level III Total Assets Available-for-sale securities: U.S. Treasury securities (1) $ — $ 11.7 $ — $ 11.7 $ — $ 11.7 $ — $ 11.7 Municipal debt securities (1) — — — — — 10.0 — 10.0 Corporate debt securities (1) — 73.9 — 73.9 — 31.7 — 31.7 Time deposit (1) — — — — — 2.4 — 2.4 Commercial paper (1) — 28.8 — 28.8 — 77.5 — 77.5 Total available-for-sale securities — 114.4 — 114.4 — 133.3 — 133.3 Deferred compensation plan assets (2) 25.8 — — 25.8 22.6 — — 22.6 Derivative assets (3) — 1.0 — 1.0 — 0.2 — 0.2 Contingent consideration assets (4) — — 7.0 7.0 — — 7.0 7.0 Total assets measured at fair value $ 25.8 $ 115.4 $ 7.0 $ 148.2 $ 22.6 $ 133.5 $ 7.0 $ 163.1 Liabilities Deferred compensation plan liabilities (2) $ 25.8 $ — $ — $ 25.8 $ 22.6 $ — $ — $ 22.6 Derivative liabilities (3) — 0.4 — 0.4 — 0.1 — 0.1 Contingent consideration liabilities (5) — — 21.2 21.2 — — 4.5 4.5 Total liabilities measured at fair value $ 25.8 $ 0.4 $ 21.2 $ 47.4 $ 22.6 $ 0.1 $ 4.5 $ 27.2 (1) The Company’s available-for sale securities are valued using readily available pricing sources for comparable instruments, or model-driven valuations using significant inputs derived from or corroborated by observable market data, including yield curves and credit ratings. (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, respectively, 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. The fair values are determined using inputs based on observable quoted prices. 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 assets represent arrangements for buyers to pay the Company for certain businesses that it has divested. The fair values are determined based on the Company's expectations of future receipts and the effects of the application of discount rates. The minimum amount to be received under these arrangements is $3.5 million . Contingent consideration assets are included in Other receivables and Other non-current assets on the Company's Condensed Consolidated Balance Sheets. (5) Contingent consideration liabilities represent arrangements to pay the former owners of certain companies that Trimble acquired. The undiscounted maximum payments under the arrangements is $56.9 million at the end of the second quarter of fiscal 2017 . The fair values are determined using the expected cash flow approach based upon estimated future revenues, gross margins or other milestones. 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 outstanding financial instruments: Carrying Amount Fair Value Carrying Amount Fair Value As of Second Quarter of Fiscal 2017 Fiscal Year End 2016 (In millions) Liabilities: Notes $ 400.0 $ 431.0 $ 400.0 $ 410.6 2014 Credit Facility 69.0 69.0 94.0 94.0 Uncommitted facilities 147.0 147.0 130.0 130.0 Promissory notes and other debt 0.9 0.9 0.8 0.8 |
PRODUCT WARRANTIES (Tables)
PRODUCT WARRANTIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Changes In Product Warranty Liability | Changes in the Company’s product warranty liability during the first two quarters of fiscal 2017 are as follows: (In millions) Balance as of fiscal year end 2016 $ 17.2 Acquired warranties 0.2 Accruals for warranties issued 9.0 Changes in estimates (0.3 ) Warranty settlements (in cash or in kind) (8.6 ) Balance as of the end of the second quarter of fiscal 2017 $ 17.5 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation Of Earnings Per Share And Effect On Weighted-Average Number Of Shares | The following table shows the computation of basic and diluted earnings per share: Second Quarter of First Two Quarters of 2017 2016 2017 2016 (In millions, except per share amounts) Numerator: Net income attributable to Trimble Inc. $ 49.9 $ 35.7 $ 100.4 $ 55.5 Denominator: Weighted average number of common shares used in basic earnings per share 253.0 250.5 252.5 250.8 Effect of dilutive securities 4.1 3.2 4.0 3.1 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 257.1 253.7 256.5 253.9 Basic earnings per share $ 0.20 $ 0.14 $ 0.40 $ 0.22 Diluted earnings per share $ 0.19 $ 0.14 $ 0.39 $ 0.22 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Leases and Other Commitments The estimated future minimum operating lease commitments as of the end of the second quarter of fiscal 2017 are as follows (in millions): 2017 (Remaining) $ 17.7 2018 33.1 2019 25.0 2020 18.7 2021 15.1 Thereafter 40.3 Total $ 149.9 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Aug. 31, 2015 | |
2015 Stock Repurchase Program [Member] | ||
Equity, Class of Stock [Line Items] | ||
Stock repurchase program approved amount | $ 400 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 103 | |
Retained Earnings [Member] | ||
Equity, Class of Stock [Line Items] | ||
Stock Repurchased During Period, Value | $ 22.7 | |
Open Market Purchases [Member] | 2015 Stock Repurchase Program [Member] | ||
Equity, Class of Stock [Line Items] | ||
Stock Repurchased During Period, Shares | 0.8 | |
Accelerated Share Repurchases, Final Price Paid Per Share | $ 32.34 | |
Stock Repurchased During Period, Value | $ 27.4 |
Shareholders' Equity (Summary O
Shareholders' Equity (Summary Of Stock-Based Compensation Expense) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 15.2 | $ 13 | $ 28.9 | $ 26.7 |
Cost Of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 0.9 | 0.9 | 1.7 | 1.9 |
Research And Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 2.6 | 2.4 | 5 | 4.7 |
Sales And Marketing Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 2.4 | 2.2 | 4.6 | 4.2 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 9.3 | 7.5 | 17.6 | 15.9 |
Total Operating Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 14.3 | $ 12.1 | $ 27.2 | $ 24.8 |
Business Combinations (Narrativ
Business Combinations (Narratives) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($)segment | Jul. 01, 2016USD ($) | Jun. 30, 2017USD ($)segmentacquisition | Jul. 01, 2016USD ($) | Dec. 30, 2016segment | |
Business Acquisition [Line Items] | ||||||
Number of Reportable Segments | segment | 4 | 4 | 4 | |||
Gain (Loss) on Disposition of Business | $ 8,000,000 | $ 2,700,000 | ||||
Number of Businesses Acquired | acquisition | 7 | |||||
Business Acquisition, Transaction Costs | $ 4,300,000 | $ 900,000 | $ 6,400,000 | 2,500,000 | ||
Goodwill, Impairment Loss | $ 0 | |||||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Revenue of Business Acquiree Since Acquisition Date Percentage of Total Revenue | 1.00% | |||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash Payments to Acquire Businesses | $ 158,000,000 | |||||
General and Administrative Expense [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Transaction Costs | $ 4,300,000 | $ 900,000 | $ 6,400,000 | $ 2,500,000 |
Business Combinations (Separate
Business Combinations (Separately Recognized Transactions) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 30, 2016 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 2,183.7 | $ 2,077.6 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of total purchase consideration | 158 | |
Net tangible assets acquired | 7 | |
Identifiable intangible assets | 91.5 | |
Deferred income taxes | (5.9) | |
Goodwill | $ 65.4 |
Business Combinations (Schedule
Business Combinations (Schedule Of Intangible Assets) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Carrying Amount | $ 1,462.8 | $ 1,348.7 |
Intangible Assets, Accumulated Amortization | (1,099.3) | (1,015.4) |
Total | 363.5 | 333.3 |
Developed Product Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Carrying Amount | 853.5 | 794.8 |
Intangible Assets, Accumulated Amortization | (672.9) | (620.6) |
Total | 180.6 | 174.2 |
Trade Names And Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Carrying Amount | 54.7 | 50.9 |
Intangible Assets, Accumulated Amortization | (45.7) | (42.9) |
Total | 9 | 8 |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Carrying Amount | 487.4 | 438.7 |
Intangible Assets, Accumulated Amortization | (321.9) | (294.1) |
Total | 165.5 | 144.6 |
Distribution Rights And Other Intellectual Properties [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Carrying Amount | 67.2 | 64.3 |
Intangible Assets, Accumulated Amortization | (58.8) | (57.8) |
Total | $ 8.4 | $ 6.5 |
Business Combinations (Schedu36
Business Combinations (Schedule Of Estimated Future Amortization Expense) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2017 (Remaining) | $ 72.6 | |
2,018 | 117.8 | |
2,019 | 77.1 | |
2,020 | 48.7 | |
2,021 | 27 | |
Thereafter | 20.3 | |
Total | $ 363.5 | $ 333.3 |
Business Combinations (Changes
Business Combinations (Changes In Carrying Amount Of Goodwill By Operating Segment) (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($) | ||
Goodwill [Line Items] | ||
Balance as of fiscal year 2016 | $ 2,077.6 | |
Additions due to acquisitions | 65.4 | |
Purchase price adjustments- prior years' acquisitions | (0.1) | |
Foreign currency translation adjustments | 47.7 | |
Divestiture (1) | (6.9) | [1] |
Balance as of the end of the second quarter of fiscal 2017 | 2,183.7 | |
Buildings and Infrastructure [Member] | ||
Goodwill [Line Items] | ||
Balance as of fiscal year 2016 | 663.7 | |
Additions due to acquisitions | ||
Purchase price adjustments- prior years' acquisitions | (0.1) | |
Foreign currency translation adjustments | 27.2 | |
Divestiture (1) | 0 | [1] |
Balance as of the end of the second quarter of fiscal 2017 | 690.8 | |
Geospatial [Member] | ||
Goodwill [Line Items] | ||
Balance as of fiscal year 2016 | 405.1 | |
Additions due to acquisitions | 0 | |
Purchase price adjustments- prior years' acquisitions | 0 | |
Foreign currency translation adjustments | 10.8 | |
Divestiture (1) | (6.9) | [1] |
Balance as of the end of the second quarter of fiscal 2017 | 409 | |
Resources and Utilities [Member] | ||
Goodwill [Line Items] | ||
Balance as of fiscal year 2016 | 217.7 | |
Additions due to acquisitions | 31.9 | |
Purchase price adjustments- prior years' acquisitions | 0 | |
Foreign currency translation adjustments | 5.1 | |
Divestiture (1) | 0 | [1] |
Balance as of the end of the second quarter of fiscal 2017 | 254.7 | |
Transportation [Member] | ||
Goodwill [Line Items] | ||
Balance as of fiscal year 2016 | 791.1 | |
Additions due to acquisitions | 33.5 | |
Purchase price adjustments- prior years' acquisitions | 0 | |
Foreign currency translation adjustments | 4.6 | |
Divestiture (1) | 0 | [1] |
Balance as of the end of the second quarter of fiscal 2017 | $ 829.2 | |
[1] | In the first quarter of 2017, the Company sold its ThingMagic business, which was part of the Geospatial segment. |
Components Of Net Inventories (
Components Of Net Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Inventory, Net [Abstract] | ||
Raw materials | $ 72.5 | $ 77.9 |
Work-in-process | 9.6 | 6.8 |
Finished goods | 141.2 | 134.1 |
Total inventories | $ 223.3 | $ 218.8 |
Inventories Components (Narrati
Inventories Components (Narrative) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Deferred costs of revenue included in finished goods | $ 17.4 | $ 14.4 |
Segment Information (Narrative)
Segment Information (Narrative) (Detail) - segment | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2017 | Dec. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 4 | 4 | 4 |
Segment Information (Schedule O
Segment Information (Schedule Of Revenue, Operating Income And Identifiable Assets By Segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | Dec. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 661.9 | $ 609.6 | $ 1,275.8 | $ 1,192.6 | |
Consolidated segment operating income | 62.6 | 40.5 | 119.2 | 70.4 | |
Depreciation expense | 17.7 | 18.8 | |||
Accounts receivable | 395.3 | 395.3 | $ 354.8 | ||
Inventories | 223.3 | 223.3 | 218.8 | ||
Goodwill | 2,183.7 | 2,183.7 | 2,077.6 | ||
Buildings and Infrastructure [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 222.7 | 202.8 | 410.8 | 376.5 | |
Accounts receivable | 127.4 | 127.4 | 104.7 | ||
Inventories | 50.3 | 50.3 | 51.3 | ||
Goodwill | 690.8 | 690.8 | 663.7 | ||
Geospatial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 165.3 | 163.9 | 315.1 | 316.1 | |
Accounts receivable | 118.7 | 118.7 | 108.3 | ||
Inventories | 100.9 | 100.9 | 100.4 | ||
Goodwill | 409 | 409 | 405.1 | ||
Resources and Utilities [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 111 | 99 | 230.9 | 212.8 | |
Accounts receivable | 64.7 | 64.7 | 65.5 | ||
Inventories | 30.7 | 30.7 | 31 | ||
Goodwill | 254.7 | 254.7 | 217.7 | ||
Transportation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 162.9 | 143.9 | 319 | 287.2 | |
Accounts receivable | 84.5 | 84.5 | 76.3 | ||
Inventories | 41.4 | 41.4 | 36.1 | ||
Goodwill | 829.2 | 829.2 | $ 791.1 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated segment operating income | 141.6 | 117.7 | 269.2 | 224.9 | |
Depreciation expense | 5 | 5.6 | 10.1 | 10.8 | |
Operating Segments [Member] | Buildings and Infrastructure [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated segment operating income | 50.4 | 38.9 | 83.1 | 61.3 | |
Depreciation expense | 1.5 | 1.9 | 3.3 | 3.7 | |
Operating Segments [Member] | Geospatial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated segment operating income | 30.2 | 28.5 | 58.1 | 54.6 | |
Depreciation expense | 1.5 | 1.9 | 2.8 | 3.5 | |
Operating Segments [Member] | Resources and Utilities [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated segment operating income | 34.8 | 29.9 | 77 | 64.8 | |
Depreciation expense | 0.6 | 0.5 | 1.2 | 1 | |
Operating Segments [Member] | Transportation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated segment operating income | 26.2 | 20.4 | 51 | 44.2 | |
Depreciation expense | $ 1.4 | $ 1.3 | $ 2.8 | $ 2.6 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Company's Consolidated Segment Operating Income To Consolidated Income Before Income Taxes) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Segment Reporting Information [Line Items] | ||||
Consolidated operating income | $ 62.6 | $ 40.5 | $ 119.2 | $ 70.4 |
Unallocated corporate expense | (283.9) | (275.1) | (553.9) | (545.8) |
Restructuring charges | (2.8) | (4.9) | (6.2) | (7) |
Amortization of purchased intangible assets | (35.8) | (39.6) | (69.1) | (79.9) |
Stock-based compensation | (15.2) | (13) | (28.9) | (26.7) |
Amortization of acquisition-related inventory step-up | (0.5) | 0 | (0.6) | 0 |
Acquisition and divestiture items | (4.3) | (0.9) | (6.4) | (2.5) |
Executive transition costs | 0 | (0.1) | 0 | (1) |
Non-operating income (expense), net: | 5 | (2.2) | 14 | (2.7) |
Consolidated income before taxes | 67.6 | 38.3 | 133.2 | 67.7 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated operating income | 141.6 | 117.7 | 269.2 | 224.9 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expense | $ (20.4) | $ (18.7) | $ (38.8) | $ (37.4) |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 612.3 | $ 619.9 |
Less: Short-term debt | 147.3 | 130.3 |
Long-term debt | 465 | 489.6 |
Uncommitted Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 147 | 130 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 400 | 400 |
Unamortized discount on Notes | (2.3) | (2.5) |
Debt issuance costs | (2.3) | (2.4) |
Note Payable Fair Value | 431 | 410.6 |
Promissory Notes And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 0.6 | 0.5 |
Total debt | 0.9 | 0.8 |
Note Payable Fair Value | 0.9 | 0.8 |
2014 Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 69 | $ 94 |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) $ in Millions | Nov. 24, 2014USD ($) | Jun. 30, 2017USD ($)loan | Dec. 30, 2016USD ($) |
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 400 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||
Long-term debt | $ 465 | $ 489.6 | |
Total debt | 612.3 | 619.9 | |
2014 Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 5 years | ||
Uncommitted Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 147 | 130 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes Payable, Noncurrent | 400 | 400 | |
Revolving Credit Facility [Member] | 2014 Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 69 | 94 | |
Promissory Notes And Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 0.9 | 0.8 | |
Notes Payable, Noncurrent | 0.6 | 0.5 | |
Revolving Credit Facility [Member] | Uncommitted Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 75 | ||
Number Of Revolving Loan Facilities | loan | 2 | ||
Short-term Debt | $ 147 | $ 130 | |
Short-term Debt, Weighted Average Interest Rate | 1.91% | 1.65% | |
Revolving Credit Facility [Member] | Unsecured Debt [Member] | 2014 Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000 | ||
Long-term Debt, Weighted Average Interest Rate | 2.26% | 1.80% | |
Long-term debt | $ 69 | $ 94 | |
Revolving Credit Facility [Member] | Uncommitted Facility Two [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 75 |
Debt (Schedule of Debt Maturiti
Debt (Schedule of Debt Maturities) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2017 (Remaining) | $ 147.3 |
2,018 | 0.2 |
2,019 | 0.2 |
2,020 | 69.2 |
2,021 | 0 |
Thereafter | 400 |
Total | $ 616.9 |
Cash Equivalents and Investme46
Cash Equivalents and Investments (Available for sales securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | Dec. 30, 2016 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | $ 114.4 | $ 114.4 | $ 133.3 | |||
Cash Equivalents | 13.2 | 13.2 | 22.2 | |||
Short-term investments | 101.2 | 101.2 | 111.1 | |||
Available-for-sale Debt Securities, Amortized Cost | 114.4 | 114.4 | 133.3 | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Securities | 0 | $ 0 | 0.1 | $ 0 | ||
Available-for-sale Securities, Gross Realized Gain (Loss) | 0 | |||||
US Treasury Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | [1] | 11.7 | 11.7 | 11.7 | ||
Municipal Bonds [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | [1] | 0 | 0 | 10 | ||
Corporate Debt Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | [1] | 73.9 | 73.9 | 31.7 | ||
Bank Time Deposits [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Time Deposits | [1] | 0 | 0 | 2.4 | ||
Commercial Paper [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | [1] | 28.8 | 28.8 | 77.5 | ||
Fair Value, Inputs, Level 2 [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | 114.4 | 114.4 | 133.3 | |||
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | [1] | 11.7 | 11.7 | 11.7 | ||
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | [1] | 0 | 0 | 10 | ||
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | [1] | 73.9 | 73.9 | 31.7 | ||
Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Time Deposits | [1] | 0 | 0 | 2.4 | ||
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Debt Securities, Fair Value | [1] | $ 28.8 | $ 28.8 | $ 77.5 | ||
[1] | The Company’s available-for sale securities are valued using readily available pricing sources for comparable instruments, or model-driven valuations using significant inputs derived from or corroborated by observable market data, including yield curves and credit ratings. |
Cash Equivalents and Investme47
Cash Equivalents and Investments (Contractual Maturities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in less than 1 year | $ 106.2 | |
Due in 1 to 5 years | 8.2 | |
Due in 5-10 years | 0 | |
Due after 10 years | 0 | |
Available-for-sale Debt Securities, Amortized Cost | $ 114.4 | $ 133.3 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | $ 114.4 | $ 133.3 | |
Contingent Consideration, Asset | [1] | 7 | 7 |
Total Assets Measured at Fair Value, Recurring | 148.2 | 163.1 | |
Contingent Consideration, Liability | [2] | 21.2 | 4.5 |
Total Liabilities Measured at Fair Value, Recurring | 47.4 | 27.2 | |
Other Current and Non Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Consideration, Liability | 56.9 | ||
Deferred Compensation Plan Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | [3] | 25.8 | 22.6 |
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 | [4] | 1 | 0.2 |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Assets Measured at Fair Value, Recurring | 25.8 | 22.6 | |
Total Liabilities Measured at Fair Value, Recurring | 25.8 | 22.6 | |
Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Plan Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | [3] | 25.8 | 22.6 |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | 114.4 | 133.3 | |
Total Assets Measured at Fair Value, Recurring | 115.4 | 133.5 | |
Total Liabilities Measured at Fair Value, Recurring | 0.4 | 0.1 | |
Fair Value, Inputs, Level 2 [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 | [4] | 1 | 0.2 |
Fair Value Inputs, Level III [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Consideration, Asset | [1] | 7 | 7 |
Total Assets Measured at Fair Value, Recurring | 7 | 7 | |
Contingent Consideration, Liability | [2] | 21.2 | 4.5 |
Total Liabilities Measured at Fair Value, Recurring | 21.2 | 4.5 | |
Deferred Compensation Plan Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan liabilities | [3] | 25.8 | 22.6 |
Deferred Compensation Plan Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan liabilities | [3] | 25.8 | 22.6 |
Derivative Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contracts, Liability, Fair Value Disclosure | [4] | 0.4 | 0.1 |
Derivative Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contracts, Liability, Fair Value Disclosure | [4] | 0.4 | 0.1 |
Minimum | Other Noncurrent Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration, Asset, Noncurrent | 3.5 | ||
US Treasury Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | [5] | 11.7 | 11.7 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | [5] | 11.7 | 11.7 |
Municipal Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | [5] | 0 | 10 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | [5] | 0 | 10 |
Corporate Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | [5] | 73.9 | 31.7 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | [5] | 73.9 | 31.7 |
Bank Time Deposits [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Time Deposits | [5] | 0 | 2.4 |
Bank Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Time Deposits | [5] | 0 | 2.4 |
Commercial Paper [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | [5] | 28.8 | 77.5 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities, Fair Value | [5] | $ 28.8 | $ 77.5 |
[1] | Contingent consideration assets represent arrangements for buyers to pay the Company for certain businesses that it has divested. The fair values are determined based on the Company's expectations of future receipts and the effects of the application of discount rates. The minimum amount to be received under these arrangements is $3.5 million. Contingent consideration assets are included in Other receivables and Other non-current assets on the Company's Condensed Consolidated Balance Sheets. | ||
[2] | Contingent consideration liabilities represent arrangements to pay the former owners of certain companies that Trimble acquired. The undiscounted maximum payments under the arrangements is $56.9 million at the end of the second quarter of fiscal 2017. The fair values are determined using the expected cash flow approach based upon estimated future revenues, gross margins or other milestones. Contingent consideration liabilities are included in Other current liabilities and Other non-current liabilities on the Company's Condensed Consolidated Balance Sheets. | ||
[3] | The Company maintains a self-directed, non-qualified deferred compensation plan for certain executives and other highly compensated employees. The plan assets and liabilities are invested in actively traded mutual funds and individual stocks valued using observable quoted prices in active markets. Deferred compensation plan assets and liabilities are included in Other non-current assets and Other non-current liabilities, respectively, on the Company's Condensed Consolidated Balance Sheets. | ||
[4] | Derivative assets and liabilities primarily represent forward currency exchange contracts. The Company typically enters into these contracts to minimize the short-term impact of foreign currency exchange rates on certain trade and inter-company receivables and payables. The fair values are determined using inputs based on observable quoted prices. Derivative assets and liabilities are included in Other current assets and Other current liabilities on the Company's Condensed Consolidated Balance Sheets. | ||
[5] | The Company’s available-for sale securities are valued using readily available pricing sources for comparable instruments, or model-driven valuations using significant inputs derived from or corroborated by observable market data, including yield curves and credit ratings. |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Fair Value Information Relating To Company's Financial Instruments Outstanding) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 612.3 | $ 619.9 |
Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes Payable, Noncurrent | 400 | 400 |
Note Payable Fair Value | 431 | 410.6 |
Uncommitted Facilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 147 | 130 |
Long-term Debt, Fair Value | 147 | 130 |
Promissory Notes And Other Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes Payable, Noncurrent | 0.6 | 0.5 |
Note Payable Fair Value | 0.9 | 0.8 |
Total debt | 0.9 | 0.8 |
Two Thousand Fourteen Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 69 | 94 |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 69 | $ 94 |
Product Warranties (Narrative)
Product Warranties (Narrative) (Detail) | 6 Months Ended |
Jun. 30, 2017 | |
Minimum | |
Product Warranty Liability [Line Items] | |
Warranty periods for products sold, in months and years | 1 year |
Maximum | |
Product Warranty Liability [Line Items] | |
Warranty periods for products sold, in months and years | 2 years |
Product Warranties (Changes In
Product Warranties (Changes In Product Warranty Liability) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance as of fiscal year end 2016 | $ 17.2 |
Acquired warranties | 0.2 |
Accruals for warranties issued | 9 |
Changes in estimates | (0.3) |
Warranty settlements (in cash or in kind) | (8.6) |
Balance as of the end of the second quarter of fiscal 2017 | $ 17.5 |
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 ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income attributable to Trimble Inc. | $ 49.9 | $ 35.7 | $ 100.4 | $ 55.5 |
Weighted average number of common shares used in basic earnings per share | 253 | 250.5 | 252.5 | 250.8 |
Effect of dilutive securities | 4.1 | 3.2 | 4 | 3.1 |
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share | 257.1 | 253.7 | 256.5 | 253.9 |
Basic earnings per share | $ 0.20 | $ 0.14 | $ 0.40 | $ 0.22 |
Diluted earnings per share | $ 0.19 | $ 0.14 | $ 0.39 | $ 0.22 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from calculation of diluted income per share | 0.7 | 4.5 | 0.7 | 4.8 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jul. 01, 2016 | Apr. 03, 2015 | Jun. 30, 2017 | Jul. 01, 2016 | Dec. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||||
Effective income tax rate | 26.00% | 7.00% | 25.00% | 18.00% | ||
Statutory federal income tax rate | 35.00% | 35.00% | ||||
Unrecognized tax benefits that would impact effective tax rate | $ 66.9 | $ 66.9 | $ 60.5 | |||
Unrecognized tax benefit liabilities include interest and penalties | 10.1 | 10.1 | 9.3 | |||
Tax Year 2010 and 2011 [Member] | Internal Revenue Service (IRS) [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Proposed Adjustments on Income Tax Assessments | $ 67 | |||||
Written proposal to IRS assessment | $ 15.8 | |||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 8.6 | $ 8.6 |
Commitment and Contingencies (L
Commitment and Contingencies (Leases and Other Commitments) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2017 (Remaining) | $ 17.7 |
2,018 | 33.1 |
2,019 | 25 |
2,020 | 18.7 |
2,021 | 15.1 |
Thereafter | 40.3 |
Total | $ 149.9 |
Commitments and Contingencies56
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Sep. 26, 2014 | Jun. 30, 2017 | Dec. 30, 2016 | Mar. 18, 2015 | |
Loss Contingencies [Line Items] | |||||
Unconditional purchase obligations | $ 186 | ||||
Business Combination, Contingent Consideration, Liability | [1] | $ 21.2 | $ 4.5 | ||
Pending Litigation [Member] | Recreational Data Services Plaintiff [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Awarded, Value | $ 51.3 | ||||
Final Judgment In Favor of Company | $ 0.6 | ||||
[1] | Contingent consideration liabilities represent arrangements to pay the former owners of certain companies that Trimble acquired. The undiscounted maximum payments under the arrangements is $56.9 million at the end of the second quarter of fiscal 2017. The fair values are determined using the expected cash flow approach based upon estimated future revenues, gross margins or other milestones. Contingent consideration liabilities are included in Other current liabilities and Other non-current liabilities on the Company's Condensed Consolidated Balance Sheets. |