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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First Quarter of |
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2014 |
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2013 |
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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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GROSS MARGIN: |
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GAAP gross margin: |
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$ 326,892 |
54.1% |
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$ 286,914 |
51.6% |
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Restructuring |
( A ) |
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47 |
0.0% |
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55 |
0.0% |
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Amortization of purchased intangible assets |
( B ) |
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20,888 |
3.5% |
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19,681 |
3.6% |
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Stock-based compensation |
( C ) |
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747 |
0.1% |
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600 |
0.1% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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51 |
0.0% |
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603 |
0.1% |
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Non-GAAP gross margin: |
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$ 348,625 |
57.7% |
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$ 307,853 |
55.4% |
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OPERATING EXPENSES: |
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GAAP operating expenses: |
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$ 251,181 |
41.5% |
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$ 230,457 |
41.4% |
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Restructuring |
( A ) |
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(337) |
-0.1% |
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(1,605) |
-0.3% |
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Amortization of purchased intangible assets |
( B ) |
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(19,681) |
-3.3% |
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(19,651) |
-3.5% |
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Stock-based compensation |
( C ) |
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(9,365) |
-1.5% |
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(8,218) |
-1.5% |
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Acquisition / divestiture items |
( E ) |
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(1,396) |
-0.2% |
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(3,418) |
-0.6% |
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Non-GAAP operating expenses: |
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$ 220,402 |
36.4% |
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$ 197,565 |
35.5% |
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OPERATING INCOME: |
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GAAP operating income: |
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$ 75,711 |
12.5% |
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$ 56,457 |
10.2% |
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Restructuring |
( A ) |
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384 |
0.1% |
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1,660 |
0.3% |
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Amortization of purchased intangible assets |
( B ) |
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40,569 |
6.7% |
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39,332 |
7.0% |
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Stock-based compensation |
( C ) |
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10,112 |
1.7% |
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8,818 |
1.6% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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51 |
0.0% |
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603 |
0.1% |
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Acquisition / divestiture items |
( E ) |
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1,396 |
0.2% |
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3,418 |
0.6% |
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Non-GAAP operating income: |
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$ 128,223 |
21.2% |
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$ 110,288 |
19.8% |
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NON-OPERATING INCOME (LOSS), NET: |
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GAAP non-operating income (loss), net: |
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$ 12,764 |
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$ (2,088) |
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Acquisition / divestiture items |
( E ) |
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1,693 |
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(401) |
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Gain on an equity sale |
( F ) |
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(15,091) |
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- |
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Non-GAAP non-operating loss, net: |
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$ (634) |
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$ (2,489) |
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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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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
INCOME TAX PROVISION: |
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GAAP income tax provision: |
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$ 20,350 |
23% |
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$ 5,437 |
10% |
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Non-GAAP items tax effected |
( G ) |
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11,004 |
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5,343 |
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Tax on gain on an equity sale |
( H ) |
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(5,836) |
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- |
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Non-GAAP income tax provision: |
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$ 25,518 |
20% |
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$ 10,780 |
10% |
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NET INCOME: |
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GAAP net income attributable to Trimble Navigation Ltd. |
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$ 68,624 |
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$ 49,808 |
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Restructuring |
( A ) |
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384 |
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1,660 |
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Amortization of purchased intangible assets |
( B ) |
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40,569 |
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39,332 |
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Stock-based compensation |
( C ) |
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10,112 |
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8,818 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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51 |
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603 |
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Acquisition / divestiture items |
( E ) |
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3,089 |
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3,017 |
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Gain on an equity sale |
( F ) |
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(15,091) |
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- |
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Non-GAAP tax adjustments |
( G ), ( H ) |
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(5,168) |
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(5,343) |
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Non-GAAP net income attributable to Trimble Navigation Ltd. |
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$ 102,570 |
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$ 97,895 |
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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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$ 0.26 |
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$ 0.19 |
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Restructuring |
( A ) |
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- |
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0.01 |
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Amortization of purchased intangible assets |
( B ) |
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0.16 |
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0.15 |
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Stock-based compensation |
( C ) |
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0.04 |
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0.04 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
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- |
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Acquisition / divestiture items |
( E ) |
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0.01 |
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0.01 |
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Gain on an equity sale |
( F ) |
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(0.06) |
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- |
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Non-GAAP tax adjustments |
( G ), ( H ) |
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(0.02) |
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(0.02) |
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Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
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$ 0.39 |
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$ 0.38 |
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OPERATING LEVERAGE: |
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Increase in non-GAAP operating income |
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$ 17,935 |
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$ 8,554 |
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Increase in revenue |
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$ 48,610 |
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$ 53,844 |
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Operating leverage (increase in non-GAAP operating income as a % of increase in revenue) |
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36.9% |
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15.9% |
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