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GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||
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(Dollars in thousands, except per share data) | ||||||||||||||||
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(Unaudited) | ||||||||||||||||
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Second Quarter of |
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First Two Quarters of |
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2012 |
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2011 |
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2012 |
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2011 |
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Dollar |
% of |
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Dollar |
% of |
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Dollar |
% of |
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Dollar |
% of |
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Amount |
Revenue |
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Amount |
Revenue |
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Amount |
Revenue |
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Amount |
Revenue |
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GROSS MARGIN: |
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GAAP gross margin: |
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$ 267,696 |
51.7% |
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$ 208,734 |
51.3% |
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$ 526,846 |
51.7% |
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$ 400,264 |
50.6% |
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Restructuring |
( A ) |
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34 |
0.0% |
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189 |
0.0% |
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79 |
0.0% |
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288 |
0.0% |
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Amortization of purchased intangible assets |
( B ) |
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13,296 |
2.6% |
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6,709 |
1.7% |
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26,417 |
2.6% |
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13,597 |
1.8% |
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Stock-based compensation |
( C ) |
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458 |
0.1% |
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502 |
0.1% |
|
978 |
0.1% |
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970 |
0.1% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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122 |
0.0% |
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1,201 |
0.3% |
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130 |
0.0% |
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1,709 |
0.2% |
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Non-GAAP gross margin: |
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$ 281,606 |
54.4% |
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$ 217,335 |
53.4% |
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$ 554,450 |
54.4% |
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$ 416,828 |
52.7% |
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OPERATING EXPENSES: |
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GAAP operating expenses: |
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$ 208,775 |
40.3% |
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$ 157,167 |
38.5% |
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$ 408,077 |
40.0% |
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$ 305,022 |
38.5% |
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Restructuring |
( A ) |
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(1,112) |
-0.2% |
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(361) |
-0.1% |
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(1,593) |
-0.2% |
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(1,128) |
-0.1% |
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Amortization of purchased intangible assets |
( B ) |
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(15,782) |
-3.0% |
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(9,867) |
-2.4% |
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(31,458) |
-3.1% |
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(19,044) |
-2.4% |
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Stock-based compensation |
( C ) |
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(7,697) |
-1.5% |
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(6,627) |
-1.6% |
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(14,966) |
-1.4% |
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(12,957) |
-1.6% |
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Acquisition costs |
( E ) |
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(7,815) |
-1.5% |
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(3,304) |
-0.8% |
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(12,581) |
-1.2% |
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(5,494) |
-0.7% |
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Non-GAAP operating expenses: |
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$ 176,369 |
34.1% |
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$ 137,008 |
33.6% |
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$ 347,479 |
34.1% |
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$ 266,399 |
33.7% |
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OPERATING INCOME: |
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GAAP operating income: |
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$ 58,921 |
11.4% |
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$ 51,567 |
12.7% |
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$ 118,769 |
11.6% |
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$ 95,242 |
12.0% |
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Restructuring |
( A ) |
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1,146 |
0.2% |
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550 |
0.1% |
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1,672 |
0.2% |
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1,416 |
0.2% |
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Amortization of purchased intangible assets |
( B ) |
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29,078 |
5.6% |
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16,576 |
4.0% |
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57,875 |
5.7% |
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32,641 |
4.1% |
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Stock-based compensation |
( C ) |
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8,155 |
1.6% |
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7,129 |
1.8% |
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15,944 |
1.6% |
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13,927 |
1.8% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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122 |
0.0% |
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1,201 |
0.3% |
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130 |
0.0% |
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1,709 |
0.2% |
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Acquisition costs |
( E ) |
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7,815 |
1.5% |
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3,304 |
0.8% |
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12,581 |
1.2% |
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5,494 |
0.7% |
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Non-GAAP operating income: |
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$ 105,237 |
20.3% |
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$ 80,327 |
19.7% |
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$ 206,971 |
20.3% |
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$ 150,429 |
19.0% |
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NON-OPERATING INCOME, NET: |
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GAAP non-operating income, net: |
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$ 4,370 |
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$ 8,631 |
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$ 4,849 |
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$ 11,237 |
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Acquisition (gain) loss |
( E ) |
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(557) |
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385 |
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(113) |
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1,149 |
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Debt issuance cost write-off |
( F ) |
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- |
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377 |
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- |
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377 |
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Foreign currency exchange (gain) loss associated with acquisitions |
( G ) |
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- |
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(5,646) |
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1,578 |
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(5,646) |
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Non-GAAP non-operating income, net: |
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$ 3,813 |
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$ 3,747 |
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$ 6,314 |
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$ 7,117 |
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GAAP and |
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GAAP and |
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GAAP and |
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GAAP and |
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Non-GAAP |
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Non-GAAP |
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Non-GAAP |
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Non-GAAP |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
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INCOME TAX PROVISION: |
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GAAP income tax provision: |
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$ 10,126 |
16% |
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$ 6,020 |
10% |
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$ 20,381 |
16% |
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$ 13,429 |
13% |
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Non-GAAP items tax effected: |
( H ) |
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7,321 |
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2,388 |
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14,785 |
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6,741 |
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Non-GAAP income tax provision: |
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$ 17,447 |
16% |
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$ 8,408 |
10% |
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$ 35,166 |
16% |
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$ 20,170 |
13% |
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NET INCOME: |
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GAAP net income attributable to Trimble Navigation Ltd. |
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$ 53,692 |
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$ 53,678 |
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$ 104,510 |
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$ 93,381 |
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Restructuring |
( A ) |
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1,146 |
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550 |
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1,672 |
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1,416 |
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Amortization of purchased intangible assets |
( B ) |
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29,078 |
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16,576 |
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57,875 |
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32,641 |
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Stock-based compensation |
( C ) |
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8,155 |
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7,129 |
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15,944 |
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13,927 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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122 |
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1,201 |
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130 |
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1,709 |
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Acquisition (gain) loss |
( E ) |
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7,258 |
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3,689 |
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12,468 |
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6,644 |
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Debt issuance cost write-off |
( F ) |
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- |
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377 |
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- |
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377 |
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Foreign currency exchange (gain) loss associated with acquisitions |
( G ) |
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- |
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(5,646) |
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1,578 |
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(5,646) |
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Non-GAAP tax adjustments |
( H ) |
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(7,321) |
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(2,388) |
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(14,785) |
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(6,741) |
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Non-GAAP net income attributable to Trimble Navigation Ltd. |
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$ 92,130 |
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$ 75,166 |
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$ 179,392 |
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$ 137,708 |
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DILUTED NET INCOME PER SHARE: |
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GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
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$ 0.42 |
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$ 0.43 |
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$ 0.82 |
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$ 0.74 |
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Restructuring |
( A ) |
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0.01 |
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- |
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0.01 |
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0.01 |
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Amortization of purchased intangible assets |
( B ) |
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0.23 |
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0.13 |
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0.46 |
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0.26 |
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Stock-based compensation |
( C ) |
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0.06 |
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0.06 |
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0.12 |
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0.11 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
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0.01 |
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- |
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0.01 |
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Acquisition (gain) loss |
( E ) |
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0.06 |
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0.03 |
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0.10 |
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0.05 |
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Debt issuance cost write-off |
( F ) |
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- |
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- |
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- |
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- |
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Foreign currency exchange (gain) loss associated with acquisitions |
( G ) |
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- |
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(0.04) |
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0.01 |
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(0.04) |
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Non-GAAP tax adjustments |
( H ) |
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(0.06) |
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(0.02) |
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(0.12) |
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(0.05) |
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Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
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$ 0.72 |
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$ 0.60 |
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$ 1.40 |
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$ 1.09 |
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OPERATING LEVERAGE: |
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Increase in non-GAAP operating income |
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$ 24,910 |
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$ 18,672 |
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$ 56,542 |
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$ 31,721 |
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Increase in revenue |
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$ 110,391 |
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$ 73,806 |
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$ 228,365 |
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$ 139,084 |
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Operating leverage (increase in non-GAAP operating |
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income as a % of increase in revenue) |
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22.6% |
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25.3% |
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24.8% |
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22.8% |
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