Reporting Segment And Geographic Information

12 Months Ended

Jan. 01, 2016

Segment Reporting, Measurement Disclosures [Abstract]

Reporting Segment And Geographic Information

REPORTING SEGMENT AND GEOGRAPHIC INFORMATION

To achieve distribution, marketing, production, and technology advantages, the Company manages its operations in the following four segments:

• Engineering and Construction: This segment primarily serves customers working in architecture, engineering, construction, geospatial and government. Within this segment our most substantial product portfolios are focused on civil engineering and construction, building construction, and geospatial.

• Field Solutions: This segment provides solutions for the farming, government and consumer markets, with its products focused on agriculture and geographic information systems (GIS).

• Mobile Solutions: This segment provides solutions that enable end-users to monitor and manage their mobile work, mobile workers and mobile assets in the areas of transportation and logistics and field services management.

• Advanced Devices - The various operations that comprise this segment are aggregated on the basis that these operations, taken as a whole, do not exceed 10% of the Company's total revenue, operating income or assets. This segment is comprised of the Embedded Technologies, Timing, Applanix, Military and Advanced Systems and ThingMagic businesses.

The Company’s CODM, its Chief Executive Officer, evaluates each of its segment’s performance and allocates resources based on segment operating income before income taxes and some corporate allocations. The Company and each of its segments employ consistent accounting policies. In each of its segments the Company sells many individual products. For this reason it is impracticable to segregate and identify revenue for each of the individual products or group of products.

The following tables present revenue, operating income, depreciation expense and identifiable assets for the four segments. Operating income is revenue less cost of sales and operating expense, excluding general corporate expense, acquisition costs, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, restructuring charges, stock-based compensation and litigation reserves. The identifiable assets that the CODM views by segment are accounts receivable, inventories and goodwill.

Fiscal Years	2015		2014		2013
(In millions)
Engineering and Construction
Revenue	$	1,283.3	$	1,348.1	$	1,222.0
Operating income	218.8		284.1		263.6
Depreciation expense	14.1		13.4		12.0
Field Solutions
Revenue	$	355.3	$	422.1	$	473.9
Operating income	108.6		137.8		176.2
Depreciation expense	1.2		0.9		0.6
Mobile Solutions
Revenue	$	520.3	$	486.8	$	465.1
Operating income	85.6		78.0		68.0
Depreciation expense	5.4		5.3		4.6
Advanced Devices
Revenue	$	131.5	$	138.5	$	127.1
Operating income	46.9		44.3		29.8
Depreciation expense	0.6		0.6		0.8
Total
Revenue	$	2,290.4	$	2,395.5	$	2,288.1
Operating income	459.9		544.2		537.6
Depreciation expense	21.3		20.2		18.0

At the End of Fiscal Year	2015		2014		2013
(Dollars in millions)
Engineering and Construction
Accounts receivable	$	215.9	$	227.7	$	185.6
Inventories	178.0		185.2		171.9
Goodwill	1,140.1		1,170.6		1,076.0
Field Solutions
Accounts receivable	$	57.1	$	51.6	$	62.8
Inventories	36.0		51.0		39.5
Goodwill	125.7		96.0		88.7
Mobile Solutions
Accounts receivable	$	69.6	$	62.9	$	70.2
Inventories	30.4		26.1		27.7
Goodwill	820.7		796.0		796.1
Advanced Devices
Accounts receivable	$	19.3	$	19.8	$	19.3
Inventories	16.7		15.8		15.2
Goodwill	19.9		23.2		24.5
Total
Accounts receivable	$	361.9	$	362.0	$	337.9
Inventories	261.1		278.1		254.3
Goodwill	2,106.4		2,085.8		1,985.3

Historically, the Company allocated stock-based compensation to each segment. Beginning with the first quarter of fiscal 2015, the Company changed its methodology for allocating stock-based compensation to its segments. Stock-based compensation is shown in the aggregate within unallocated corporate expense and not reflected in the segment results, which is consistent with the way the CODM evaluates each of the segment's performance and allocates resources. The Company has adjusted the presentation of segment information for fiscal 2014 and 2013 to conform to the current year methodology. The following table shows the amount of stock-based compensation that had been previously allocated to the business segments in the fiscal 2014 and 2013 and the impact to those segments' Operating income.

	Reporting Segments
	Engineering and Construction			Field Solutions			Mobile Solutions			Advanced Devices			Total
(In millions)
Fiscal 2014
Operating income	$	284.1		$	137.8		$	78.0		$	44.3		$	544.2
Previously allocated stock-based compensation	(15.2		)	(3.6		)	(5.1		)	(1.9		)	(25.8		)
Previously reported operating income	$	268.9		$	134.2		$	72.9		$	42.4		$	518.4
Fiscal 2013
Operating income	$	263.6		$	176.2		$	68.0		$	29.8		$	537.6
Previously allocated stock-based compensation	(12.3		)	(3.1		)	(4.0		)	(3.2		)	(22.6		)
Previously reported operating income	$	251.3		$	173.1		$	64.0		$	26.6		$	515.0

A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows:

Fiscal Years	2015			2014			2013
(In millions)
Consolidated segment operating income	$	459.9		$	544.2		$	537.6
Unallocated corporate expense	(80.2		)	(79.4		)	(79.8		)
Restructuring charges	(12.8		)	(2.1		)	(6.8		)
Stock-based compensation	(50.1		)	(43.4		)	(36.5		)
Amortization of purchased intangible assets	(162.4		)	(158.5		)	(162.8		)
Consolidated operating income	154.4			260.8			251.7
Non-operating income (expense), net	(2.6		)	5.2			1.2
Consolidated income before taxes	$	151.8		$	266.0		$	252.9

Unallocated corporate expense includes general corporate expense, amortization of acquisition-related inventory step-up, acquisition/divestiture costs and litigation expenses.

The geographic distribution of Trimble’s revenue and long-lived assets is summarized in the tables below. Other non-US geographies include Canada, and countries in South and Central America, the Middle East, and Africa. Revenue is defined as revenue from external customers.

Fiscal Years	2015		2014		2013
(In millions)
Revenue (1):
United States	$	1,142.1	$	1,147.7	$	1,131.2
Europe	557.2		581.7		535.6
Asia Pacific	321.1		345.6		317.2
Other non-US countries	270.0		320.5		304.1
Total consolidated revenue	$	2,290.4	$	2,395.5	$	2,288.1

(1) Revenue is attributed to countries based on the location of the customer.

No single customer or country other than the United States accounted for 10% or more of Trimble’s total revenue in fiscal years 2015, 2014 and 2013. No single customer accounted for 10% or more of Trimble's accounts receivable as of fiscal years ended 2015 and 2014.

Property and equipment, net by geographic area was as follows:

At the End of Fiscal Year	2015		2014
(In millions)
Property and equipment, net:
United States	$	130.4	$	124.5
Europe	18.9		21.2
Asia Pacific and other non-US countries	9.9		11.7
Total property and equipment, net	$	159.2	$	157.4