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Subsequent Events
3 Months Ended
Mar. 29, 2024
Subsequent Events [Abstract]  
Subsequent Events
NOTE 14. SUBSEQUENT EVENTS
Closing of the Ag Divestiture
On September 28, 2023, we executed a Sale and Contribution Agreement with AGCO that provided for the formation of a joint venture, called PTx Trimble, that operates in the mixed fleet precision agriculture market. The agreement was amended and restated on March 31, 2024, and the transaction closed on April 1, 2024. Under the terms of the agreement, we contributed our Ag business, excluding certain GNSS and guidance technologies, in exchange for $1.9 billion in cash proceeds, subject to working capital adjustments. Following the closing of this transaction, we own 15% and AGCO owns 85% of PTx Trimble, an LLC. In addition to forming PTx Trimble, the parties concurrently entered into agreements that include the following: (i) long-term supply agreement for key GNSS and guidance technologies, (ii) technology transfer and license agreement, (iii) trademark license agreement, (iv) master sale and distribution agreement for the positioning services, and (v) transition services agreement. The agreement provides AGCO with a call option and Trimble with a put option with respect to our interest in PTx Trimble.
In the second quarter of 2024, we derecognized the assets and liabilities that were transferred, recognized the fair value of our equity method investment, and recorded a pre-tax gain of $1.7 billion. See Note 4 “Assets Held for Sale” of this report for more information.
Repayment of Term Loans
On April 1, 2024, we repaid in full $1.0 billion aggregate principal amount of term loans. The funds used for the repayment were a portion of the funds received in connection with the Ag divestiture. See Note 8Debt of this report for more information about our debt.