GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
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Fourth Quarter of |
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Fiscal Years |
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2013 |
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2012 |
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2013 |
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2012 |
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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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$ 319,454 |
53.3% |
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$ 256,464 |
49.7% |
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$ 1,203,822 |
52.6% |
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$ 1,046,177 |
51.3% |
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Restructuring |
( A ) |
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31 |
0.0% |
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17 |
0.0% |
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860 |
0.0% |
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156 |
0.0% |
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Amortization of purchased intangible assets |
( B ) |
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21,181 |
3.6% |
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18,132 |
3.5% |
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81,119 |
3.6% |
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60,277 |
3.0% |
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Stock-based compensation |
( C ) |
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757 |
0.1% |
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525 |
0.1% |
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2,573 |
0.1% |
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2,005 |
0.1% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
0.0% |
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1,680 |
0.4% |
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1,505 |
0.1% |
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2,357 |
0.1% |
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Non-GAAP gross margin: |
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$ 341,423 |
57.0% |
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$ 276,818 |
53.7% |
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$ 1,289,879 |
56.4% |
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$ 1,110,972 |
54.5% |
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OPERATING EXPENSES: |
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GAAP operating expenses: |
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$ 252,108 |
42.1% |
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$ 226,135 |
43.9% |
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$ 952,085 |
41.6% |
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$ 833,609 |
40.9% |
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Restructuring |
( A ) |
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(1,358) |
-0.2% |
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(333) |
-0.1% |
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(5,960) |
-0.3% |
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(2,227) |
-0.1% |
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Amortization of purchased intangible assets |
( B ) |
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(20,947) |
-3.5% |
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(18,260) |
-3.5% |
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(81,722) |
-3.5% |
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(65,430) |
-3.2% |
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Stock-based compensation |
( C ) |
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(9,527) |
-1.6% |
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(8,507) |
-1.7% |
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(33,869) |
-1.4% |
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(30,655) |
-1.5% |
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Acquisition / divestiture items |
( E ) |
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(3,910) |
-0.7% |
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(7,277) |
-1.4% |
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(13,195) |
-0.6% |
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(21,662) |
-1.1% |
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Litigation |
( H ) |
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- |
0.0% |
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- |
0.0% |
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(1,335) |
-0.1% |
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- |
0.0% |
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Non-GAAP operating expenses: |
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$ 216,366 |
36.1% |
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$ 191,758 |
37.2% |
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$ 816,004 |
35.7% |
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$ 713,635 |
35.0% |
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OPERATING INCOME: |
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GAAP operating income: |
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$ 67,346 |
11.2% |
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$ 30,329 |
5.9% |
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$ 251,737 |
11.0% |
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$ 212,568 |
10.4% |
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Restructuring |
( A ) |
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1,389 |
0.2% |
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350 |
0.0% |
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6,820 |
0.3% |
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2,383 |
0.1% |
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Amortization of purchased intangible assets |
( B ) |
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42,128 |
7.0% |
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36,392 |
7.1% |
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162,841 |
7.1% |
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125,707 |
6.2% |
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Stock-based compensation |
( C ) |
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10,284 |
1.7% |
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9,032 |
1.8% |
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36,442 |
1.5% |
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32,660 |
1.6% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
0.0% |
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1,680 |
0.3% |
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1,505 |
0.1% |
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2,357 |
0.1% |
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Acquisition / divestiture items |
( E ) |
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3,910 |
0.8% |
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7,277 |
1.4% |
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13,195 |
0.6% |
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21,662 |
1.1% |
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Litigation |
( H ) |
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- |
0.0% |
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- |
0.0% |
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1,335 |
0.1% |
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- |
0.0% |
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Non-GAAP operating income: |
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$ 125,057 |
20.9% |
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$ 85,060 |
16.5% |
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$ 473,875 |
20.7% |
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$ 397,337 |
19.5% |
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NON-OPERATING INCOME, NET: |
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GAAP non-operating income (loss), net: |
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$ (1,054) |
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$ 8,655 |
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$ 1,127 |
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$ 16,856 |
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Acquisition / divestiture items |
( E ) |
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2,276 |
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(6,810) |
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1,430 |
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(7,257) |
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Debt issuance cost write-off |
( F ) |
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- |
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82 |
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- |
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82 |
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Foreign exchange loss associated with acquisitions |
( G ) |
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- |
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- |
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- |
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1,578 |
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Non-GAAP non-operating income, net: |
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$ 1,222 |
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$ 1,927 |
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$ 2,557 |
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$ 11,259 |
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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 % |
( J ) |
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Tax Rate % |
( J ) |
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Tax Rate % |
( J ) |
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Tax Rate % |
( J ) |
INCOME TAX PROVISION: |
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GAAP income tax provision: |
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$ 6,631 |
10% |
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$ 6,305 |
16% |
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$ 34,698 |
14% |
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$ 39,708 |
17% |
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Non-GAAP items tax effected |
( I ) |
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6,001 |
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7,762 |
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30,064 |
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30,635 |
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Non-GAAP income tax provision: |
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$ 12,632 |
10% |
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$ 14,067 |
16% |
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$ 64,762 |
14% |
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$ 70,343 |
17% |
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NET INCOME: |
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GAAP net income attributable to Trimble Navigation Ltd. |
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$ 59,997 |
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$ 33,186 |
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$ 218,855 |
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$ 191,060 |
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Restructuring |
( A ) |
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1,389 |
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350 |
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6,820 |
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2,383 |
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Amortization of purchased intangible assets |
( B ) |
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42,128 |
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36,392 |
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162,841 |
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125,707 |
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Stock-based compensation |
( C ) |
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10,284 |
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9,032 |
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36,442 |
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32,660 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
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1,680 |
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1,505 |
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2,357 |
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Acquisition / divestiture items |
( E ) |
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6,186 |
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467 |
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14,625 |
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14,405 |
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Debt issuance cost write-off |
( F ) |
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- |
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82 |
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- |
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82 |
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Foreign exchange loss associated with acquisitions |
( G ) |
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- |
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- |
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- |
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1,578 |
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Litigation |
( H ) |
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- |
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- |
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1,335 |
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- |
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Non-GAAP items tax affected |
( I ) |
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(6,001) |
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(7,762) |
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(30,064) |
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(30,635) |
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Non-GAAP net income attributable to Trimble Navigation Ltd. |
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$ 113,983 |
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$ 73,427 |
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$ 412,359 |
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$ 339,597 |
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DILUTED NET INCOME PER SHARE: |
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GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
$ 0.23 |
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$ 0.13 |
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$ 0.84 |
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$ 0.74 |
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Restructuring |
( A ) |
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- |
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- |
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0.03 |
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0.01 |
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Amortization of purchased intangible assets |
( B ) |
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0.16 |
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0.14 |
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0.62 |
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0.49 |
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Stock-based compensation |
( C ) |
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0.04 |
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0.03 |
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0.14 |
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0.13 |
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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 / divestiture items |
( E ) |
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0.02 |
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- |
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0.06 |
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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 exchange loss associated with acquisitions |
( G ) |
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- |
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- |
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- |
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0.01 |
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Litigation |
( H ) |
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- |
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- |
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0.01 |
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- |
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Non-GAAP items tax affected |
( I ) |
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(0.02) |
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(0.03) |
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(0.12) |
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(0.12) |
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Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
$ 0.43 |
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$ 0.28 |
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$ 1.58 |
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$ 1.32 |
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OPERATING LEVERAGE: |
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Increase in non-GAAP operating income |
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$ 39,997 |
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$ 16,275 |
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$ 76,538 |
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$ 105,134 |
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Increase in revenue |
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$ 83,695 |
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$ 80,353 |
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$ 248,011 |
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$ 396,048 |
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Operating leverage (increase in non-GAAP operating income as a % of increase in revenue) |
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47.8% |
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20.3% |
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30.9% |
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26.5% |
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