GAAP TO NON-GAAP RECONCILIATION

(Dollars in thousands, except per share data)

(Unaudited)

Fourth Quarter of

Fiscal Years

2014

2013

2014

2013

Dollar

% of

Dollar

% of

Dollar

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

Amount

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$ 292,608

51.9%

$319,454

53.3%

$1,290,844

53.9%

$1,203,822

52.6%

Restructuring

( A )

38

0.0%

31

0.0%

363

0.0%

860

0.0%

Amortization of purchased intangible assets

( B )

21,950

3.9%

21,181

3.6%

82,913

3.5%

81,119

3.6%

Stock-based compensation

( C )

898

0.2%

757

0.1%

3,184

0.1%

2,573

0.1%

Amortization of acquisition-related inventory step-up

( D )

154

0.0%

-

0.0%

816

0.0%

1,505

0.1%

Non-GAAP gross margin: 

$ 315,648

56.0%

$ 341,423

57.0%

$1,378,120

57.5%

$1,289,879

56.4%

OPERATING EXPENSES:

GAAP operating expenses:

$ 215,719

38.3%

$252,108

42.1%

$1,030,021

43.0%

$952,085

41.6%

Restructuring

( A )

(396)

-0.1%

(1,358)

-0.2%

(1,741)

-0.1%

(5,960)

-0.3%

Amortization of purchased intangible assets

( B )

(18,793)

-3.3%

(20,947)

-3.5%

(75,599)

-3.1%

(81,722)

-3.5%

Stock-based compensation

( C )

(10,375)

-1.9%

(9,527)

-1.6%

(40,214)

-1.7%

(33,869)

-1.4%

Acquisition / divestiture items

( E )

(6,033)

-1.1%

(3,910)

-0.7%

(13,449)

-0.6%

(13,195)

-0.6%

Litigation

( H )

51,300

9.1%

-

0.0%

(711)

0.0%

(1,335)

-0.1%

Non-GAAP operating expenses:

$ 231,422

41.0%

$ 216,366

36.1%

$   898,307

37.5%

$816,004

35.7%

OPERATING INCOME:

GAAP operating income:

$   76,889

13.6%

$67,346

11.2%

$   260,823

10.9%

$251,737

11.0%

Restructuring

( A )

434

0.1%

1,389

0.2%

2,104

0.1%

6,820

0.3%

Amortization of purchased intangible assets

( B )

40,743

7.2%

42,128

7.0%

158,512

6.6%

162,841

7.1%

Stock-based compensation

( C )

11,273

2.0%

10,284

1.7%

43,398

1.8%

36,442

1.5%

Amortization of acquisition-related inventory step-up

( D )

154

0.0%

-

0.0%

816

0.0%

1,505

0.1%

Acquisition / divestiture items

( E )

6,033

1.1%

3,910

0.8%

13,449

0.6%

13,195

0.6%

Litigation

( H )

(51,300)

-9.1%

-

0.0%

711

0.0%

1,335

0.1%

Non-GAAP operating income: 

$   84,226

14.9%

$ 125,057

20.9%

$   479,813

20.0%

$473,875

20.7%

NON-OPERATING INCOME (LOSS), NET:

GAAP non-operating income (loss), net:

$    (5,272)

($1,054)

$       5,192

$1,127

Acquisition / divestiture items

( E )

(3,105)

2,276

2,899

1,430

Gain on an equity sale

( F )

-

-

(15,091)

-

Debt issuance cost write-off

( G )

4,205

-

4,205

-

Non-GAAP non-operating income (loss), net: 

$    (4,172)

$    1,222

$      (2,795)

$2,557

GAAP and 

GAAP and 

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Non-GAAP

Non-GAAP

Tax Rate %

( L )

Tax Rate %

( L )

Tax Rate %

( L )

Tax Rate %

( L )

INCOME TAX PROVISION:

GAAP income tax provision:

$   15,756

22%

$6,631

10%

$     52,127

20%

$34,698

14%

Non-GAAP items tax effected

( I )

7,982

6,001

44,342

30,064

Tax on gain on an equity sale

( J )

-

-

(5,836)

-

Tax on RDS litigation

( K )

(19,840)

-

-

-

Non-GAAP income tax provision: 

$     3,898

5%

$  12,632

10%

$     90,633

19%

$     64,762

14%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Ltd.

$   55,828

$  59,997

$   214,118

$   218,855

Restructuring

( A )

434

1,389

2,104

6,820

Amortization of purchased intangible assets

( B )

40,743

42,128

158,512

162,841

Stock-based compensation

( C )

11,273

10,284

43,398

36,442

Amortization of acquisition-related inventory step-up

( D )

154

-

816

1,505

Acquisition / divestiture items

( E )

2,928

6,186

16,348

14,625

Gain on an equity sale

( F )

-

-

(15,091)

-

Debt issuance cost write-off

( G )

4,205

-

4,205

-

Litigation

( H )

(51,300)

-

711

1,335

Non-GAAP tax adjustments

(I), (J), (K)

11,858

(6,001)

(38,506)

(30,064)

Non-GAAP net income attributable to Trimble Navigation Ltd.

$   76,123

$ 113,983

$   386,615

$   412,359

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share attributable to Trimble Navigation Ltd.

$      0.21

$0.23

$        0.81

$0.84

Restructuring

( A )

-

-

0.01

0.03

Amortization of purchased intangible assets

( B )

0.16

0.16

0.60

0.62

Stock-based compensation

( C )

0.04

0.04

0.16

0.14

Amortization of acquisition-related inventory step-up

( D )

-

-

-

-

Acquisition / divestiture items

( E )

0.01

0.02

0.06

0.06

Gain on an equity sale

( F )

-

-

(0.06)

-

Debt issuance cost write-off

( G )

0.02

-

0.02

-

Litigation

( H )

(0.20)

-

-

0.01

Non-GAAP tax adjustments

(I), (J), (K)

0.05

(0.02)

(0.14)

(0.12)

Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd.

$      0.29

$      0.43

$        1.46

$        1.58

OPERATING LEVERAGE:

Increase in non-GAAP operating income

$  (40,831)

$  39,997

$       5,938

$     76,538

Increase in revenue

$  (35,388)

$  83,695

$   107,422

$   248,011

Operating leverage (increase in non-GAAP operating 

income as a % of increase in revenue)

N/A

47.8%

5.5%

30.9%