GAAP TO NON-GAAP RECONCILIATION

(Dollars in thousands, except per share data)

(Unaudited)

First Quarter of

2012

2011

Dollar

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$ 259,150

51.6%

$ 191,530

49.8%

Restructuring

( A )

45

0.0%

99

0.0%

Amortization of purchased intangible assets

( B )

13,121

2.6%

6,888

1.9%

Stock-based compensation

( C )

520

0.1%

468

0.1%

Amortization of acquisition-related inventory step-up

( D )

8

0.0%

508

0.1%

Non-GAAP gross margin: 

$ 272,844

54.3%

$ 199,493

51.9%

OPERATING EXPENSES:

GAAP operating expenses:

$ 199,302

39.7%

$ 147,855

38.5%

Restructuring

( A )

(481)

-0.1%

(767)

-0.2%

Amortization of purchased intangible assets

( B )

(15,676)

-3.2%

(9,177)

-2.4%

Stock-based compensation

( C )

(7,269)

-1.4%

(6,330)

-1.6%

Acquisition costs

( E )

(4,766)

-0.9%

(2,190)

-0.6%

Non-GAAP operating expenses:

$ 171,110

34.1%

$ 129,391

33.7%

OPERATING INCOME:

GAAP operating income:

$  59,848

11.9%

$  43,675

11.4%

Restructuring

( A )

526

0.1%

866

0.2%

Amortization of purchased intangible assets

( B )

28,797

5.7%

16,065

4.2%

Stock-based compensation

( C )

7,789

1.6%

6,798

1.8%

Amortization of acquisition-related inventory step-up

( D )

8

0.0%

508

0.1%

Acquisition costs

( E )

4,766

1.0%

2,190

0.5%

Non-GAAP operating income: 

$ 101,734

20.3%

$  70,102

18.2%

NON-OPERATING INCOME, NET:

GAAP non-operating income, net:

$       479

$    2,606

Acquisition loss

( E )

444

765

Foreign exchange loss associated with acquisition

( F )

1,578

-

Non-GAAP non-operating income, net: 

$    2,501

$    3,371

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Tax Rate %

( H )

Tax Rate %

( H )

INCOME TAX PROVISION:

GAAP income tax provision:

$  10,255

17%

$    7,409

16%

Non-GAAP items tax effected:

( G )

7,464

4,353

Non-GAAP income tax provision: 

$  17,719

17%

$  11,762

16%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Ltd.

$  50,818

$  39,703

Restructuring

( A )

526

866

Amortization of purchased intangible assets

( B )

28,797

16,065

Stock-based compensation

( C )

7,789

6,798

Amortization of acquisition-related inventory step-up

( D )

8

508

Acquisition costs

( E )

5,210

2,955

Foreign exchange loss associated with acquisition

( F )

1,578

-

Non-GAAP tax adjustments

( G )

(7,464)

(4,353)

Non-GAAP net income attributable to Trimble Navigation Ltd.

$  87,262

$  62,542

DILUTED NET INCOME PER SHARE:

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

$      0.40

$      0.32

Restructuring

( A )

-

0.01

Amortization of purchased intangible assets

( B )

0.23

0.13

Stock-based compensation

( C )

0.06

0.05

Amortization of acquisition-related inventory step-up

( D )

-

-

Acquisition costs

( E )

0.04

0.02

Foreign exchange loss associated with acquisition

( F )

0.01

-

Non-GAAP tax adjustments

( G )

(0.06)

(0.03)

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

$       0.68

$      0.50

OPERATING LEVERAGE:

Increase in non-GAAP operating income

$   31,632

$  13,048

Increase in revenue

$ 117,974

$  65,278

Operating leverage (increase in non-GAAP operating 

income as a % of increase in revenue)

26.8%

20.0%