CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

First Quarter of

2020

2019

Revenue:

Product

$

463.8

$

488.4

Service

162.4

159.2

Subscription

166.1

154.0

Total revenue

792.3

801.6

Cost of sales:

Product

210.1

230.7

Service

63.6

64.0

Subscription

54.1

44.4

Amortization of purchased intangible assets

23.5

24.2

Total cost of sales

351.3

363.3

Gross margin

441.0

438.3

Gross margin (%)

55.7

%

54.7

%

Operating expense:

Research and development

118.2

118.2

Sales and marketing

131.7

127.4

General and administrative

73.0

82.8

Restructuring charges

2.9

3.5

Amortization of purchased intangible assets

16.9

20.1

Total operating expense

342.7

352.0

Operating income

98.3

86.3

Non-operating expense, net:

Interest expense, net

(20.5)

(21.9)

Income from equity method investments, net

9.4

8.8

Other income (expense), net

(7.8)

2.0

Total non-operating expense, net

(18.9)

(11.1)

Income before taxes

79.4

75.2

Income tax provision

17.5

12.8

Net income

61.9

62.4

Net gain attributable to noncontrolling interests

—

0.1

Net income attributable to Trimble Inc.

$

61.9

$

62.3

Earnings per share attributable to Trimble Inc.:

Basic

$

0.25

$

0.25

Diluted

$

0.25

$

0.25

Shares used in calculating diluted earnings per share:

Basic

249.9

251.5

Diluted

251.7

254.0