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Fair Value Measurements | 3 Months Ended
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Mar. 30, 2018
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 First Quarter of Fiscal 2018 |  | Fair Values as of Fiscal Year End 2017
(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) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 9.6 |  |  | $ | — |  |  | $ | 9.6 |
Corporate debt securities (1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 96.0 |  |  | — |  |  | 96.0 |
Commercial paper (1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 100.1 |  |  | — |  |  | 100.1 |
Total available-for-sale securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 205.7 |  |  | — |  |  | 205.7 |
Deferred compensation plan assets (2) | 29.7 |  |  | — |  |  | — |  |  | 29.7 |  |  | 27.1 |  |  | — |  |  | — |  |  | 27.1 |
Derivative assets (3) | — |  |  | 0.7 |  |  | — |  |  | 0.7 |  |  | — |  |  | 0.5 |  |  | — |  |  | 0.5 |
Total assets measured at fair value | $ | 29.7 |  |  | $ | 0.7 |  |  | $ | — |  |  | $ | 30.4 |  |  | $ | 27.1 |  |  | $ | 206.2 |  |  | $ | — |  |  | $ | 233.3 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred compensation plan liabilities (2) | $ | 29.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 29.7 |  |  | $ | 27.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 27.1 |
Derivative liabilities (3) | — |  |  | 0.2 |  |  | — |  |  | 0.2 |  |  | — |  |  | 0.1 |  |  | — |  |  | 0.1 |
Contingent consideration liabilities (4) | — |  |  | — |  |  | 6.2 |  |  | 6.2 |  |  | — |  |  | — |  |  | 14.2 |  |  | 14.2 |
Total liabilities measured at fair value | $ | 29.7 |  |  | $ | 0.2 |  |  | $ | 6.2 |  |  | $ | 36.1 |  |  | $ | 27.1 |  |  | $ | 0.1 |  |  | $ | 14.2 |  |  | $ | 41.4 |
(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. Derivative assets and liabilities are included in Other current assets and Other current liabilities on the Company's Condensed Consolidated Balance Sheets.
(4) | Contingent consideration liabilities represent arrangements to pay the former owners of certain companies that Trimble acquired. The undiscounted maximum payment under the arrangements is $53.4 million at the end of the first quarter of fiscal 2018. The fair values are estimated using scenario-based methods or option pricing methods 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 | First Quarter of Fiscal 2018 |  | Fiscal Year End 2017
(In millions) |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |
Notes | $ | 400.0 |  |  | $ | 418.5 |  |  | $ | 400.0 |  |  | $ | 430.4 |
2014 Credit Facility | 295.0 |  |  | 295.0 |  |  | 389.0 |  |  | 389.0 |
2018 Interim Credit Facility | 300.0 |  |  | 300.0 |  |  | — |  |  | — |
Uncommitted facilities | 130.0 |  |  | 130.0 |  |  | 128.0 |  |  | 128.0 |
Promissory notes and other debt | 1.4 |  |  | 1.4 |  |  | 1.2 |  |  | 1.2 |
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.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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