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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Second Quarter of |
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First Two Quarters of |
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2014 |
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2013 |
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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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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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$ 354,571 |
55.2% |
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$ 302,401 |
52.5% |
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$ 681,463 |
54.7% |
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$ 589,315 |
52.0% |
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Restructuring |
( A ) |
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170 |
0.0% |
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766 |
0.1% |
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217 |
0.0% |
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821 |
0.1% |
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Amortization of purchased intangible assets |
( B ) |
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20,018 |
3.1% |
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19,855 |
3.4% |
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40,906 |
3.3% |
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39,536 |
3.5% |
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Stock-based compensation |
( C ) |
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763 |
0.2% |
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607 |
0.1% |
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1,510 |
0.1% |
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1,207 |
0.1% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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25 |
0.0% |
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524 |
0.1% |
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76 |
0.0% |
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1,127 |
0.1% |
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Non-GAAP gross margin: |
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$ 375,547 |
58.5% |
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$ 324,153 |
56.2% |
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$ 724,172 |
58.1% |
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$ 632,006 |
55.8% |
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OPERATING EXPENSES: |
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GAAP operating expenses: |
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$ 257,437 |
40.1% |
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$ 237,496 |
41.2% |
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$ 508,618 |
40.8% |
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$ 467,953 |
41.3% |
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Restructuring |
( A ) |
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(789) |
-0.1% |
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(2,966) |
-0.5% |
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(1,126) |
-0.1% |
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(4,571) |
-0.4% |
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Amortization of purchased intangible assets |
( B ) |
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(17,856) |
-2.8% |
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(19,908) |
-3.5% |
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(37,537) |
-3.0% |
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(39,559) |
-3.5% |
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Stock-based compensation |
( C ) |
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(10,212) |
-1.6% |
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(7,828) |
-1.4% |
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(19,577) |
-1.6% |
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(16,046) |
-1.4% |
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Acquisition / divestiture items |
( E ) |
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(1,964) |
-0.3% |
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(2,976) |
-0.4% |
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(3,360) |
-0.3% |
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(6,394) |
-0.6% |
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Non-GAAP operating expenses: |
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$ 226,616 |
35.3% |
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$ 203,818 |
35.4% |
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$ 447,018 |
35.8% |
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$ 401,383 |
35.4% |
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OPERATING INCOME: |
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GAAP operating income: |
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$ 97,134 |
15.1% |
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$ 64,905 |
11.3% |
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$ 172,845 |
13.9% |
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$ 121,362 |
10.7% |
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Restructuring |
( A ) |
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959 |
0.1% |
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3,732 |
0.6% |
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1,343 |
0.1% |
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5,392 |
0.5% |
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Amortization of purchased intangible assets |
( B ) |
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37,874 |
6.0% |
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39,763 |
6.9% |
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78,443 |
6.3% |
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79,095 |
7.0% |
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Stock-based compensation |
( C ) |
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10,975 |
1.7% |
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8,435 |
1.5% |
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21,087 |
1.6% |
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17,253 |
1.5% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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25 |
0.0% |
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524 |
0.1% |
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76 |
0.0% |
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1,127 |
0.1% |
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Acquisition / divestiture items |
( E ) |
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1,964 |
0.3% |
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2,976 |
0.5% |
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3,360 |
0.3% |
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6,394 |
0.6% |
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Non-GAAP operating income: |
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$ 148,931 |
23.2% |
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$ 120,335 |
20.9% |
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$ 277,154 |
22.2% |
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$ 230,623 |
20.4% |
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NON-OPERATING INCOME, NET: |
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GAAP non-operating income, net: |
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$ 1,634 |
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$ 3,786 |
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$ 14,398 |
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$ 1,698 |
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Acquisition / divestiture items |
( E ) |
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2,612 |
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(459) |
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4,305 |
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(860) |
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Gain on an equity sale |
( F ) |
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- |
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- |
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(15,091) |
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- |
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Non-GAAP non-operating income, net: |
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$ 4,246 |
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$ 3,327 |
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$ 3,612 |
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$ 838 |
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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 ) |
INCOME TAX PROVISION: |
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GAAP income tax provision: |
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$ 20,741 |
21% |
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$ 13,738 |
20% |
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$ 41,091 |
22% |
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$ 19,175 |
16% |
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Non-GAAP items tax effected |
( G ) |
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11,426 |
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10,994 |
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22,430 |
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16,337 |
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Tax on gain on an equity sale |
( H ) |
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- |
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- |
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(5,836) |
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- |
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Non-GAAP income tax provision: |
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$ 32,167 |
21% |
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$ 24,732 |
20% |
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$ 57,685 |
21% |
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$ 35,512 |
16% |
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NET INCOME: |
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GAAP net income attributable to Trimble Navigation Ltd. |
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$ 77,834 |
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$ 54,581 |
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$ 146,458 |
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$ 104,389 |
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Restructuring |
( A ) |
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959 |
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3,732 |
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1,343 |
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5,392 |
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Amortization of purchased intangible assets |
( B ) |
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37,874 |
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39,763 |
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78,443 |
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79,095 |
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Stock-based compensation |
( C ) |
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10,975 |
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8,435 |
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21,087 |
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17,253 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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25 |
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524 |
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76 |
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1,127 |
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Acquisition / divestiture items |
( E ) |
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4,576 |
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2,517 |
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7,665 |
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5,534 |
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Gain on an equity sale |
( F ) |
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- |
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- |
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(15,091) |
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- |
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Non-GAAP tax adjustments |
( G ), ( H ) |
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(11,426) |
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(10,994) |
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(16,594) |
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(16,337) |
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Non-GAAP net income attributable to Trimble Navigation Ltd. |
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$ 120,817 |
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$ 98,558 |
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$ 223,387 |
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$ 196,453 |
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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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$ 0.29 |
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$ 0.21 |
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$ 0.55 |
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$ 0.40 |
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Restructuring |
( A ) |
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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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Amortization of purchased intangible assets |
( B ) |
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0.14 |
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0.15 |
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0.30 |
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0.30 |
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Stock-based compensation |
( C ) |
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0.04 |
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0.04 |
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0.08 |
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0.07 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
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- |
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- |
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- |
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Acquisition / divestiture items |
( E ) |
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0.02 |
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0.01 |
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0.03 |
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0.02 |
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Gain on an equity sale |
( F ) |
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- |
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- |
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(0.06) |
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- |
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Non-GAAP tax adjustments |
( G ), ( H ) |
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(0.04) |
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(0.04) |
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(0.07) |
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(0.06) |
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Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
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$ 0.45 |
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$ 0.38 |
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$ 0.84 |
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$ 0.75 |
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OPERATING LEVERAGE: |
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Increase in non-GAAP operating income |
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$ 28,596 |
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$ 15,098 |
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$ 46,531 |
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$ 23,652 |
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Increase in revenue |
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$ 65,906 |
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$ 58,733 |
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$ 114,516 |
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$ 112,577 |
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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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43.4% |
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25.7% |
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40.6% |
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21.0% |
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