GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Third Quarter of

First Three Quarters of

2019

2018

2019

2018

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$

783.9

$

795.2

$

2,440.3

$

2,322.9

Acquired deferred revenue adjustment

(A)

0.4

9.5

4.3

16.2

Non-GAAP revenue:

$

784.3

$

804.7

$

2,444.6

$

2,339.1

GROSS MARGIN:

GAAP gross margin:

$

422.0

53.8

%

$

426.9

53.7

%

$

1,320.9

54.1

%

$

1,245.8

53.6

%

Acquired deferred revenue adjustment

(A)

0.4

9.5

4.3

16.2

Restructuring charges

(B)

—

0.1

0.2

0.5

Amortization of purchased intangible assets

(C)

23.3

28.2

71.3

75.2

Stock-based compensation

(D)

1.5

1.1

4.2

3.3

Acquisition / divestiture items

(E)

—

—

—

2.0

Non-GAAP gross margin:

$

447.2

57.0

%

$

465.8

57.9

%

$

1,400.9

57.3

%

$

1,343.0

57.4

%

OPERATING EXPENSES:

GAAP operating expenses:

$

330.3

42.1

%

$

349.5

44.0

%

$

1,033.2

42.3

%

$

1,014.7

43.7

%

Restructuring charges

(B)

(3.6)

(2.5)

(10.0)

(6.3)

Amortization of purchased intangible assets

(C)

(17.5)

(21.6)

(57.3)

(57.7)

Stock-based compensation

(D)

(17.1)

(17.7)

(47.9)

(49.8)

Acquisition / divestiture items

(E)

(8.4)

(10.7)

(11.5)

(32.8)

Amortization of acquired capitalized commissions

(F)

1.5

1.8

4.8

2.9

Non-GAAP operating expenses:

$

285.2

36.4

%

$

298.8

37.1

%

$

911.3

37.3

%

$

871.0

37.2

%

OPERATING INCOME:

GAAP operating income:

$

91.7

11.7

%

$

77.4

9.7

%

$

287.7

11.8

%

$

231.1

9.9

%

Acquired deferred revenue adjustment

(A)

0.4

9.5

4.3

16.2

Restructuring charges

(B)

3.6

2.6

10.2

6.8

Amortization of purchased intangible assets

(C)

40.8

49.8

128.6

132.9

Stock-based compensation

(D)

18.6

18.8

52.1

53.1

Acquisition / divestiture items

(E)

8.4

10.7

11.5

34.8

Amortization of acquired capitalized commissions

(F)

(1.5)

(1.8)

(4.8)

(2.9)

Non-GAAP operating income:

$

162.0

20.7

%

$

167.0

20.8

%

$

489.6

20.0

%

$

472.0

20.2

%

NON-OPERATING EXPENSE, NET:

GAAP non-operating expense, net:

$

(12.8)

$

(13.3)

$

(18.2)

$

(21.1)

Acquisition / divestiture items

(E)

0.3

0.8

(12.5)

(1.3)

Debt issuance costs

(G)

—

—

—

6.7

Non-GAAP non-operating expense, net:

$

(12.5)

$

(12.5)

$

(30.7)

$

(15.7)

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

(L)

(L)

(L)

(L)

INCOME TAX PROVISION (BENEFIT):

GAAP income tax provision (benefit):

$

0.8

1

%

$

(9.6)

(15)

%

$

34.4

13

%

$

13.5

6

%

Non-GAAP items tax effected

(H)

13.3

12.4

34.0

36.8

Difference in GAAP and Non-GAAP tax rate

(I)

0.3

8.1

7.9

18.0

Tax reform impacts

(J)

—

3.6

—

3.6

Reserve release upon statute of limitations expiration

(K)

14.0

14.8

14.0

14.8

Non-GAAP income tax provision:

$

28.4

19

%

$

29.3

19

%

$

90.3

20

%

$

86.7

19

%

NET INCOME:

GAAP net income attributable to Trimble Inc.:

$

78.1

$

73.7

$

235.0

$

196.3

Acquired deferred revenue adjustment

(A)

0.4

9.5

4.3

16.2

Restructuring charges

(B)

3.6

2.6

10.2

6.8

Amortization of purchased intangible assets

(C)

40.8

49.8

128.6

132.9

Stock-based compensation

(D)

18.6

18.8

52.1

53.1

Acquisition / divestiture items

(E)

8.7

11.5

(1.0)

33.5

Amortization of acquired capitalized commissions

(F)

(1.5)

(1.8)

(4.8)

(2.9)

Debt issuance costs

(G)

—

—

—

6.7

Non-GAAP tax adjustments

(H)-(K)

(27.6)

(38.9)

(55.9)

(73.2)

Non-GAAP net income attributable to Trimble Inc.:

$

121.1

$

125.2

$

368.5

$

369.4

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share attributable to Trimble Inc.:

$

0.31

$

0.29

$

0.93

$

0.78

Acquired deferred revenue adjustment

(A)

—

0.04

0.01

0.06

Restructuring charges

(B)

0.01

0.01

0.04

0.03

Amortization of purchased intangible assets

(C)

0.16

0.20

0.51

0.52

Stock-based compensation

(D)

0.07

0.07

0.20

0.21

Acquisition / divestiture items

(E)

0.03

0.04

—

0.13

Amortization of acquired capitalized commissions

(F)

—

(0.01)

(0.02)

(0.01)

Debt issuance costs

(G)

—

—

—

0.03

Non-GAAP tax adjustments

(H)-(K)

(0.10)

(0.15)

(0.22)

(0.29)

Non-GAAP diluted net income per share attributable to Trimble Inc.:

$

0.48

$

0.49

$

1.45

$

1.46

Fourth Quarter of 2019

Fiscal Year 2019

Low End

High End

Low End

High End

FORECASTED DILUTED NET INCOME PER SHARE:

Forecasted GAAP diluted net income per share attributable to Trimble Inc.:

$

0.20

$

0.24

$

1.08

$

1.13

Acquired deferred revenue adjustment

(A)

0.01

0.01

0.02

0.02

Restructuring charges

(B)

0.05

0.05

0.09

0.09

Amortization of purchased intangible assets

(C)

0.16

0.16

0.67

0.67

Stock-based compensation

(D)

0.10

0.10

0.31

0.31

Acquisition / divestiture items

(E)

0.01

0.01

0.06

0.06

Amortization of acquired capitalized commissions

(F)

(0.01)

(0.01)

(0.02)

(0.02)

Non-GAAP tax adjustments

(H)-(K)

(0.06)

(0.06)

(0.30)

(0.31)

Forecasted non-GAAP diluted net income per share attributable to Trimble Inc.:

$

0.46

$

0.50

$

1.91

$

1.95