FAIR VALUE (Tables)

3 Months Ended

Mar. 30, 2019

Summarized below are changes in the liability and asset during the three months ended March 30, 2019, and March 31, 2018.



	Three months ended
	March 30, 2019						March 31, 2018
	Guarantees and Bonds Liability ⁽¹⁾			Indemnification Assets ⁽¹⁾			Guarantees and Bonds Liability ⁽¹⁾			Indemnification Assets ⁽¹⁾
Balance at beginning of year	$	4.4		$	1.2		$	8.7		$	2.8
Reduction/Amortization for the period ⁽²⁾	(1.3		)	(0.2		)	(0.7		)	(0.4		)
Impact of changes in foreign currency rates	(0.1		)	—			0.3			0.1
Balance at end of period ⁽³⁾	$	3.0		$	1.0		$	8.3		$	2.5

___________________________

⁽¹⁾

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⁾	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.”


⁽³⁾	The 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.”