ASSETS HELD FOR SALE

9 Months Ended

Sep. 29, 2023

Discontinued Operations and Disposal Groups [Abstract]

ASSETS HELD FOR SALE

NOTE 4. ASSETS HELD FOR SALE

On September 28, 2023, we executed a definitive agreement with AGCO that provides for the formation of a JV with AGCO in the mixed fleet precision agriculture market (the “Trimble Ag JV Transaction”). Under the terms of the agreement, we will contribute our precision agriculture business (“Trimble Ag”), excluding certain Global Navigation Satellite System (“GNSS”) and guidance technologies, and AGCO will contribute its JCA Technologies business to the JV. We will sell an interest in the JV to AGCO for $2.0 billion in pre-tax cash proceeds, subject to working capital adjustments. Immediately following the closing of the Trimble Ag JV Transaction, we will own 15% of the JV and AGCO will own 85% of the JV.

Additionally, we plan to enter into the following agreements with AGCO as part of the overall transaction:

•a seven-year, renewable Supply Agreement through which we will provide key GNSS and guidance technologies to the JV for use in professional agriculture machines sold by AGCO, on an exclusive basis with limited exceptions;

•a Technology Transfer and License Agreement to govern the licensing of certain non-divested intellectual property and technology for use by the JV in the agriculture field and, upon expiration of the Supply Agreement, to govern fixed and variable royalty payments made to us by the JV;

•a Trademark License Agreement to govern the licensing of certain Trimble trademarks for use by the JV in the agriculture field;

•a Positioning Services Agreement through which the JV will serve as our channel partner for the positioning services in the agriculture market; and

•a Transition Services Agreement to provide contract manufacturing services for the divested products for two years following the closing of the transaction.

The transaction is expected to close in the first half of 2024 and is subject to customary closing conditions, including regulatory approvals. Trimble Ag is reported as a part of our Resources and Utilities segment.

Following the closing of the Trimble Ag JV Transaction, our 15% ownership interest in the JV is expected to be reported as an equity method investment.

The assets and liabilities of Trimble Ag that are subject to the transaction were classified as held for sale in the third quarter of 2023. The following table presents the carrying values of the major classes of assets and liabilities classified as held for sale in our Condensed Consolidated Balance Sheets at the end of the third quarter of 2023:

	As of
	Third Quarter of
(In millions)	2023
Cash and cash equivalents	$	6.1
Accounts receivable, net	11.7
Inventories, net	85.8
Other current assets	3.0
Property and equipment, net	18.8
Other purchased intangible assets, net	19.3
Goodwill	231.1
Other non-current assets	2.9
Total Assets Held for Sale	$	378.7
Accounts payable	$	3.7
Deferred revenue, current	13.3
Other current liabilities	14.8
Deferred revenue, non-current	8.3
Long-term liabilities	6.8
Total Liabilities Held for Sale	$	46.9