GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
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| Second Quarter of |
| First Two Quarters of | ||||||||||||||||||||
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| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||||||||||||||
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| Dollar
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| Dollar
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| Dollar
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REVENUE: |
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| GAAP revenue: |
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| $ | 733.6 |
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| $ | 854.8 |
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| $ | 1,525.9 |
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| $ | 1,656.4 |
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| Acquired deferred revenue adjustment | (A) |
| 1.6 |
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| 1.0 |
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| 3.3 |
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| 3.9 |
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| Non-GAAP revenue: |
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| $ | 735.2 |
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| $ | 855.8 |
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| $ | 1,529.2 |
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| $ | 1,660.3 |
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GROSS MARGIN: |
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| GAAP gross margin: |
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| $ | 405.7 |
| 55.3 | % |
| $ | 460.6 |
| 53.9 | % |
| $ | 846.7 |
| 55.5 | % |
| $ | 898.9 |
| 54.3 | % | |
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| Acquired deferred revenue adjustment | (A) |
| 1.6 |
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| 1.0 |
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| 3.3 |
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| 3.9 |
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| Restructuring charges | (B) |
| 0.1 |
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|
| — |
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| 0.4 |
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| 0.2 |
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| COVID-19 expenses | (C) |
| 0.3 |
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| — |
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| 0.3 |
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| — |
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| Amortization of purchased intangible assets | (D) |
| 23.2 |
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| 23.8 |
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| 46.7 |
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| 48.0 |
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| Stock-based compensation and deferred compensation | (E) |
| 2.0 |
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| 1.5 |
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| 2.7 |
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| 2.9 |
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| Acquisition / divestiture items | (F) |
| — |
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| — |
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| 1.7 |
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| — |
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| Non-GAAP gross margin: |
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| $ | 432.9 |
| 58.9 | % |
| $ | 486.9 |
| 56.9 | % |
| $ | 901.8 |
| 59.0 | % |
| $ | 953.9 |
| 57.5 | % | |
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OPERATING EXPENSES: |
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| GAAP operating expenses: |
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| $ | 308.1 |
| 42.0 | % |
| $ | 350.9 |
| 41.1 | % |
| $ | 650.8 |
| 42.7 | % |
| $ | 702.9 |
| 42.4 | % | |
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| Restructuring charges | (B) |
| (5.1) |
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| (2.9) |
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| (8.0) |
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| (6.4) |
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| COVID-19 expenses | (C) |
| 0.5 |
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| — |
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| (3.3) |
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| — |
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| Amortization of purchased intangible assets | (D) |
| (16.6) |
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| (19.7) |
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| (33.5) |
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| (39.8) |
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| Stock-based compensation and deferred compensation | (E) |
| (23.4) |
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| (16.8) |
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| (27.2) |
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| (34.5) |
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| Acquisition / divestiture items | (F) |
| (1.9) |
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| (2.0) |
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| (11.0) |
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| (3.1) |
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| Amortization of acquired capitalized commissions | (G) |
| 1.4 |
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| 1.6 |
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| 2.9 |
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| 3.3 |
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| Non-GAAP operating expenses: |
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| $ | 263.0 |
| 35.8 | % |
| $ | 311.1 |
| 36.4 | % |
| $ | 570.7 |
| 37.3 | % |
| $ | 622.4 |
| 37.5 | % | |
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OPERATING INCOME: |
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| GAAP operating income: |
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| $ | 97.6 |
| 13.3 | % |
| $ | 109.7 |
| 12.8 | % |
| $ | 195.9 |
| 12.8 | % |
| $ | 196.0 |
| 11.8 | % | |
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| Acquired deferred revenue adjustment | (A) |
| 1.6 |
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| 1.0 |
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| 3.3 |
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| 3.9 |
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| Restructuring charges | (B) |
| 5.2 |
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| 2.9 |
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| 8.4 |
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| 6.6 |
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| COVID-19 expenses | (C) |
| (0.2) |
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|
| — |
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| 3.6 |
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| — |
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| Amortization of purchased intangible assets | (D) |
| 39.8 |
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| 43.5 |
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| 80.2 |
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| 87.8 |
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| Stock-based compensation and deferred compensation | (E) |
| 25.4 |
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| 18.3 |
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| 29.9 |
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| 37.4 |
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| Acquisition / divestiture items | (F) |
| 1.9 |
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| 2.0 |
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| 12.7 |
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| 3.1 |
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| Amortization of acquired capitalized commissions | (G) |
| (1.4) |
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| (1.6) |
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| (2.9) |
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| (3.3) |
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| Non-GAAP operating income: |
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| $ | 169.9 |
| 23.1 | % |
| $ | 175.8 |
| 20.5 | % |
| $ | 331.1 |
| 21.7 | % |
| $ | 331.5 |
| 20.0 | % | |
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NON-OPERATING INCOME (EXPENSE), NET: |
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| GAAP non-operating income (expense), net: |
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| $ | (6.7) |
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| $ | 5.7 |
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| $ | (25.6) |
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| $ | (5.4) |
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| Deferred compensation | (E) |
| (6.8) |
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| (1.1) |
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| (0.6) |
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| (3.9) |
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| Acquisition / divestiture items | (F) |
| 2.4 |
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| (13.1) |
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| 2.4 |
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| (12.8) |
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| Non-GAAP non-operating expense, net: |
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| $ | (11.1) |
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| $ | (8.5) |
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| $ | (23.8) |
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| $ | (22.1) |
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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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| (J) |
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| (J) |
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| (J) |
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| (J) | ||||||||||||
INCOME TAX PROVISION: |
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| GAAP income tax provision: |
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| $ | 27.7 |
| 30.5 | % |
| $ | 20.8 |
| 18.0 | % |
| $ | 45.2 |
| 26.5 | % |
| $ | 33.6 |
| 17.6 | % | |
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| Non-GAAP items tax effected | (H) |
| 20.7 |
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| 9.3 |
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| 35.9 |
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| 20.7 |
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| Difference in GAAP and Non-GAAP tax rate | (I) |
| (21.3) |
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| 3.3 |
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| (28.0) |
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| 7.6 |
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| Non-GAAP income tax provision: |
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| $ | 27.1 |
| 17.1 | % |
| $ | 33.4 |
| 20.0 | % |
| $ | 53.1 |
| 17.3 | % |
| $ | 61.9 |
| 20.0 | % | |
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NET INCOME: |
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| GAAP net income attributable to Trimble Inc.: |
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| $ | 63.0 |
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| $ | 94.6 |
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| $ | 124.9 |
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| $ | 156.9 |
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| Acquired deferred revenue adjustment | (A) |
| 1.6 |
|
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| 1.0 |
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|
| 3.3 |
|
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| 3.9 |
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| Restructuring charges | (B) |
| 5.2 |
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| 2.9 |
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| 8.4 |
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| 6.6 |
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| COVID-19 expenses | (C) |
| (0.2) |
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|
| — |
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| 3.6 |
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| — |
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| Amortization of purchased intangible assets | (D) |
| 39.8 |
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| 43.5 |
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| 80.2 |
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| 87.8 |
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| Stock-based compensation and deferred compensation | (E) |
| 18.6 |
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| 17.2 |
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| 29.3 |
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| 33.5 |
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| Acquisition / divestiture items | (F) |
| 4.3 |
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| (11.1) |
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| 15.1 |
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| (9.7) |
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| Amortization of acquired capitalized commissions | (G) |
| (1.4) |
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| (1.6) |
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| (2.9) |
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| (3.3) |
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| Non-GAAP tax adjustments | (H)-(I) |
| 0.6 |
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| (12.6) |
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| (7.9) |
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| (28.3) |
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| Non-GAAP net income attributable to Trimble Inc.: |
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| $ | 131.5 |
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| $ | 133.9 |
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| $ | 254.0 |
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| $ | 247.4 |
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DILUTED NET INCOME PER SHARE: |
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| GAAP diluted net income per share attributable to Trimble Inc.: |
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| $ | 0.25 |
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| $ | 0.37 |
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| $ | 0.50 |
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| $ | 0.62 |
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| Acquired deferred revenue adjustment | (A) |
| 0.01 |
|
|
| — |
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| 0.01 |
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|
| 0.01 |
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| Restructuring charges | (B) |
| 0.02 |
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| 0.01 |
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| 0.03 |
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| 0.03 |
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| COVID-19 expenses | (C) |
| — |
|
|
| — |
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|
| 0.01 |
|
|
| — |
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| Amortization of purchased intangible assets | (D) |
| 0.16 |
|
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| 0.17 |
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|
| 0.32 |
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| 0.34 |
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| Stock-based compensation and deferred compensation | (E) |
| 0.07 |
|
|
| 0.07 |
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| 0.12 |
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| 0.13 |
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| Acquisition / divestiture items | (F) |
| 0.02 |
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| (0.04) |
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| 0.06 |
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| (0.04) |
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| Amortization of acquired capitalized commissions | (G) |
| (0.01) |
|
|
| — |
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| (0.01) |
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| (0.01) |
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| Non-GAAP tax adjustments | (H)-(I) |
| — |
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| (0.05) |
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| (0.03) |
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| (0.11) |
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| Non-GAAP diluted net income per share attributable to Trimble Inc.: |
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| $ | 0.52 |
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| $ | 0.53 |
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| $ | 1.01 |
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| $ | 0.97 |
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ADJUSTED EBITDA: |
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| GAAP operating income: |
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| $ | 97.6 |
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| $ | 109.7 |
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| $ | 195.9 |
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| $ | 196.0 |
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| |||||
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| Acquired deferred revenue adjustment | (A) |
| 1.6 |
|
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| 1.0 |
|
|
| 3.3 |
|
|
| 3.9 |
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| Restructuring charges | (B) |
| 5.2 |
|
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| 2.9 |
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| 8.4 |
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| 6.6 |
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| ||||||||
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| COVID-19 expenses | (C) |
| (0.2) |
|
|
| — |
|
|
| 3.6 |
|
|
| — |
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| Amortization of purchased intangible assets | (D) |
| 39.8 |
|
|
| 43.5 |
|
|
| 80.2 |
|
|
| 87.8 |
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| Stock-based compensation and deferred compensation | (E) |
| 25.4 |
|
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| 18.3 |
|
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| 29.9 |
|
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| 37.4 |
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| Acquisition / divestiture items | (F) |
| 1.9 |
|
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| 2.0 |
|
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| 12.7 |
|
|
| 3.1 |
|
| ||||||||
|
| Amortization of acquired capitalized commissions | (G) |
| (1.4) |
|
|
| (1.6) |
|
|
| (2.9) |
|
|
| (3.3) |
|
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| Non-GAAP operating income: |
|
| 169.9 |
|
|
| 175.8 |
|
|
| 331.1 |
|
|
| 331.5 |
|
| |||||||||
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| Depreciation expense |
|
| 9.7 |
|
|
| 10.1 |
|
|
| 19.5 |
|
|
| 20.3 |
|
| ||||||||
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| Income from equity income investments, net |
|
| 9.7 |
|
|
| 12.9 |
|
|
| 19.1 |
|
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| 21.7 |
|
| ||||||||
| Adjusted EBITDA: |
|
| $ | 189.3 |
|
|
| $ | 198.8 |
|
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| $ | 369.7 |
|
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| $ | 373.5 |
|
|
FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION