FAIR VALUE (Tables)

6 Months Ended

Jul. 01, 2017

Summarized below are the liability (related to the parent company guarantees and bank and surety bonds) and asset (related to the cash collateral and guarantee provided by mutares AG) recorded at the time of sale, along with the change in the liability and the asset during the six months ended July 1, 2017.



	Six months ended July 1, 2017
	Guarantees and Bonds Liability			Indemnification Assets
Balance as of December 31, 2016 ^{(1) (2)}	$	9.9		$	4.8
Reduction/Amortization for the period ⁽³⁾	(1.1		)	(1.3		)
Impact of changes in foreign currency rates	0.9			0.5
Balance as of July 1, 2017 ⁽²⁾	$	9.7		$	4.0

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In connection with the sale, we estimated the fair value of the existing parent company guarantees and bank and surety bonds considering the probability of default by Balcke Dürr and an estimate of the amount we would be obligated to pay in the event of a default. Additionally, we estimated the fair value of the cash collateral provided by Balcke Dürr and guarantee provided by mutares AG based on the terms and conditions and relative risk associated with each of these securities (unobservable inputs - Level 3).


⁽²⁾	Balance associated with the guarantees and bonds is reflected within “Other long-term liabilities,” while the balance associated with the indemnification assets is reflected within “Other assets.”


⁽³⁾	We reduce the liability generally at the earlier of the completion of the related underlying project milestones or the expiration of the guarantees or bonds. We amortize the asset based on the expiration terms of each of the securities. We record the reduction of the liability and the amortization of the asset to “Other income (expense), net.”