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GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||
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(Dollars in thousands, except per share data) | ||||||||||||||||
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(Unaudited) | ||||||||||||||||
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Third Quarter of |
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First Three Quarters of |
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2012 |
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2011 |
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2012 |
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2011 |
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Dollar |
% of |
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Dollar |
% of |
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Dollar |
% of |
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Dollar |
% of |
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Amount |
Revenue |
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Amount |
Revenue |
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Amount |
Revenue |
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Amount |
Revenue |
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GROSS MARGIN: |
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GAAP gross margin: |
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$ 262,867 |
52.1% |
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$ 211,559 |
50.7% |
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$ 789,713 |
51.8% |
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$ 611,823 |
50.6% |
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Restructuring |
( A ) |
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60 |
0.0% |
|
47 |
0.0% |
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139 |
0.0% |
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335 |
0.0% |
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Amortization of purchased intangible assets |
( B ) |
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15,728 |
3.1% |
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10,321 |
2.5% |
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42,145 |
2.8% |
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23,918 |
2.0% |
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Stock-based compensation |
( C ) |
|
502 |
0.1% |
|
491 |
0.1% |
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1,480 |
0.1% |
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1,461 |
0.1% |
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Amortization of acquisition-related inventory step-up |
( D ) |
|
547 |
0.1% |
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1,354 |
0.3% |
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677 |
0.0% |
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3,063 |
0.3% |
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Non-GAAP gross margin: |
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$ 279,704 |
55.4% |
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$ 223,772 |
53.6% |
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$ 834,154 |
54.7% |
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$ 640,600 |
53.0% |
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OPERATING EXPENSES: |
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GAAP operating expenses: |
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$ 199,397 |
39.5% |
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$ 179,111 |
42.9% |
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$ 607,474 |
39.8% |
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$ 484,133 |
40.0% |
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Restructuring |
( A ) |
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(301) |
-0.1% |
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(647) |
-0.2% |
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(1,894) |
-0.1% |
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(1,775) |
-0.1% |
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Amortization of purchased intangible assets |
( B ) |
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(15,712) |
-3.1% |
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(13,785) |
-3.3% |
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(47,170) |
-3.1% |
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(32,829) |
-2.7% |
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Stock-based compensation |
( C ) |
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(7,182) |
-1.3% |
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(6,615) |
-1.6% |
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(22,148) |
-1.5% |
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(19,572) |
-1.6% |
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Acquisition costs |
( E ) |
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(1,804) |
-0.4% |
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(7,281) |
-1.7% |
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(14,385) |
-0.9% |
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(12,775) |
-1.1% |
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Non-GAAP operating expenses: |
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$ 174,398 |
34.6% |
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$ 150,783 |
36.1% |
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$ 521,877 |
34.2% |
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$ 417,182 |
34.5% |
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OPERATING INCOME: |
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GAAP operating income: |
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$ 63,470 |
12.6% |
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$ 32,448 |
7.8% |
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$ 182,239 |
12.0% |
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$ 127,690 |
10.6% |
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Restructuring |
( A ) |
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361 |
0.1% |
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694 |
0.2% |
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2,033 |
0.1% |
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2,110 |
0.2% |
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Amortization of purchased intangible assets |
( B ) |
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31,440 |
6.2% |
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24,106 |
5.8% |
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89,315 |
5.9% |
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56,747 |
4.7% |
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Stock-based compensation |
( C ) |
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7,684 |
1.5% |
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7,106 |
1.7% |
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23,628 |
1.6% |
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21,033 |
1.6% |
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Amortization of acquisition-related inventory step-up |
( D ) |
|
547 |
0.1% |
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1,354 |
0.3% |
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677 |
0.0% |
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3,063 |
0.3% |
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Acquisition costs |
( E ) |
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1,804 |
0.4% |
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7,281 |
1.7% |
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14,385 |
0.9% |
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12,775 |
1.1% |
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Non-GAAP operating income: |
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$ 105,306 |
20.9% |
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$ 72,989 |
17.5% |
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$ 312,277 |
20.5% |
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$ 223,418 |
18.5% |
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NON-OPERATING INCOME, NET: |
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GAAP non-operating income, net: |
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$ 3,352 |
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$ (2,563) |
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$ 8,201 |
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$ 8,674 |
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Acquisition gain |
( E ) |
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(334) |
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(1,220) |
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(447) |
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(71) |
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Debt issuance cost write-off |
( F ) |
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- |
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- |
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- |
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377 |
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Foreign exchange (gain) loss associated with acquisitions |
( G ) |
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- |
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2,190 |
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1,578 |
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(3,456) |
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Non-GAAP non-operating income, net: |
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$ 3,018 |
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$ (1,593) |
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$ 9,332 |
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$ 5,524 |
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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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Non-GAAP |
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Non-GAAP |
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Non-GAAP |
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Non-GAAP |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
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INCOME TAX PROVISION: |
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GAAP income tax provision: |
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$ 13,022 |
19% |
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$ 2,689 |
9% |
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$ 33,403 |
18% |
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$ 16,118 |
12% |
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Non-GAAP items tax effected: |
( H ) |
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8,088 |
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3,737 |
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22,873 |
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10,478 |
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Non-GAAP income tax provision: |
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$ 21,110 |
19% |
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$ 6,426 |
9% |
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$ 56,276 |
18% |
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$ 26,596 |
12% |
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NET INCOME: |
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GAAP net income attributable to Trimble Navigation Ltd. |
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$ 53,364 |
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$ 27,971 |
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$ 157,874 |
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$ 121,352 |
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Restructuring |
( A ) |
|
361 |
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|
694 |
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2,033 |
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2,110 |
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Amortization of purchased intangible assets |
( B ) |
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31,440 |
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24,106 |
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89,315 |
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56,747 |
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Stock-based compensation |
( C ) |
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7,684 |
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7,106 |
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23,628 |
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21,033 |
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Amortization of acquisition-related inventory step-up |
( D ) |
|
547 |
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1,354 |
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677 |
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3,063 |
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Acquisition costs |
( E ) |
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1,470 |
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6,061 |
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13,938 |
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12,705 |
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Debt issuance cost write-off |
( F ) |
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- |
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- |
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- |
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377 |
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Foreign exchange (gain) loss associated with acquisitions |
( G ) |
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- |
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2,190 |
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1,578 |
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(3,456) |
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Non-GAAP tax adjustments |
( H ) |
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(8,088) |
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(3,737) |
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(22,873) |
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(10,478) |
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Non-GAAP net income attributable to Trimble Navigation Ltd. |
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$ 86,778 |
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$ 65,745 |
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$ 266,170 |
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$ 203,453 |
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DILUTED NET INCOME PER SHARE: |
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GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
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$ 0.42 |
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$ 0.22 |
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$ 1.23 |
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$ 0.96 |
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Restructuring |
( A ) |
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- |
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0.01 |
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0.02 |
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0.02 |
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Amortization of purchased intangible assets |
( B ) |
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0.24 |
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0.19 |
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0.70 |
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0.45 |
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Stock-based compensation |
( C ) |
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0.06 |
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0.06 |
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0.18 |
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0.17 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
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0.01 |
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0.01 |
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0.02 |
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Acquisition costs |
( E ) |
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0.01 |
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0.05 |
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0.11 |
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0.10 |
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Debt issuance cost write-off |
( F ) |
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- |
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- |
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- |
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- |
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Foreign exchange (gain) loss associated with acquisitions |
( G ) |
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- |
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0.01 |
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0.01 |
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(0.03) |
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Non-GAAP tax adjustments |
( H ) |
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(0.05) |
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(0.03) |
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(0.18) |
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(0.08) |
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Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
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$ 0.68 |
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$ 0.52 |
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$ 2.08 |
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$ 1.61 |
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OPERATING LEVERAGE: |
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Increase in non-GAAP operating income |
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$ 32,317 |
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$ 20,417 |
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$ 88,859 |
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$ 52,137 |
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Increase in revenue |
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$ 87,330 |
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$ 99,223 |
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$ 315,695 |
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$ 238,307 |
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Operating leverage (increase in non-GAAP operating |
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income as a % of increase in revenue) |
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37.0% |
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20.6% |
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28.1% |
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21.9% |
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