GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
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Third Quarter of |
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First Three 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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$ 316,773 |
54.2% |
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$ 295,053 |
53.0% |
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$ 998,236 |
54.5% |
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$ 884,368 |
52.4% |
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Restructuring |
( A ) |
108 |
0.0% |
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8 |
0.0% |
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325 |
0.0% |
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829 |
0.0% |
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Amortization of purchased intangible assets |
( B ) |
20,057 |
3.4% |
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20,402 |
3.7% |
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60,963 |
3.3% |
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59,938 |
3.6% |
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Stock-based compensation |
( C ) |
776 |
0.1% |
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609 |
0.1% |
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2,286 |
0.1% |
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1,816 |
0.1% |
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Amortization of acquisition-related inventory step-up |
( D ) |
586 |
0.1% |
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378 |
0.1% |
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662 |
0.1% |
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1,505 |
0.1% |
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Non-GAAP gross margin: |
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$ 338,300 |
57.8% |
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$ 316,450 |
56.9% |
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$1,062,472 |
58.0% |
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$ 948,456 |
56.2% |
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OPERATING EXPENSES: |
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GAAP operating expenses: |
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$ 305,684 |
52.3% |
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$ 232,024 |
41.7% |
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$ 814,302 |
44.5% |
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$ 699,977 |
41.4% |
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Restructuring |
( A ) |
(219) |
0.0% |
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(31) |
0.0% |
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(1,345) |
-0.1% |
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(4,602) |
-0.3% |
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Amortization of purchased intangible assets |
( B ) |
(19,269) |
-3.3% |
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(21,216) |
-3.9% |
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(56,806) |
-3.1% |
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(60,775) |
-3.6% |
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Stock-based compensation |
( C ) |
(10,262) |
-1.8% |
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(8,296) |
-1.5% |
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(29,839) |
-1.6% |
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(24,342) |
-1.4% |
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Acquisition / divestiture items |
( E ) |
(4,056) |
-0.7% |
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(2,891) |
-0.5% |
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(7,416) |
-0.4% |
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(9,285) |
-0.5% |
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Litigation |
( G ) |
(52,011) |
-8.9% |
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(1,335) |
-0.2% |
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(52,011) |
-2.9% |
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(1,335) |
-0.1% |
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Non-GAAP operating expenses: |
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$ 219,867 |
37.6% |
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$ 198,255 |
35.6% |
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$ 666,885 |
36.4% |
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$ 599,638 |
35.5% |
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OPERATING INCOME: |
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GAAP operating income: |
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$ 11,089 |
1.9% |
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$ 63,029 |
11.3% |
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$ 183,934 |
10.0% |
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$ 184,391 |
10.9% |
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Restructuring |
( A ) |
327 |
0.1% |
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39 |
0.0% |
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1,670 |
0.1% |
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5,431 |
0.3% |
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Amortization of purchased intangible assets |
( B ) |
39,326 |
6.7% |
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41,618 |
7.5% |
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117,769 |
6.4% |
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120,713 |
7.2% |
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Stock-based compensation |
( C ) |
11,038 |
1.9% |
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8,905 |
1.6% |
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32,125 |
1.8% |
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26,158 |
1.5% |
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Amortization of acquisition-related inventory step-up |
( D ) |
586 |
0.1% |
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378 |
0.1% |
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662 |
0.0% |
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1,505 |
0.1% |
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Acquisition / divestiture items |
( E ) |
4,056 |
0.7% |
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2,891 |
0.5% |
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7,416 |
0.4% |
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9,285 |
0.6% |
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Litigation |
( G ) |
52,011 |
8.9% |
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1,335 |
0.2% |
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52,011 |
2.9% |
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1,335 |
0.1% |
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Non-GAAP operating income: |
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$ 118,433 |
20.3% |
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$ 118,195 |
21.2% |
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$ 395,587 |
21.6% |
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$ 348,818 |
20.7% |
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NON-OPERATING INCOME (LOSS), NET: |
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GAAP non-operating income (loss), net: |
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$ (3,934) |
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$ 483 |
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$ 10,464 |
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$ 2,181 |
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Acquisition / divestiture items |
( E ) |
1,699 |
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14 |
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6,004 |
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(846) |
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Gain on an equity sale |
( F ) |
- |
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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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$ (2,235) |
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$ 497 |
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$ 1,377 |
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$ 1,335 |
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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 % |
( K ) |
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Tax Rate % |
( K ) |
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Tax Rate % |
( K ) |
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Tax Rate % |
( K ) | |
INCOME TAX PROVISION (BENEFIT): |
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GAAP income tax provision (benefit): |
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$ (4,720) |
-66% |
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$ 8,892 |
14% |
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$ 36,371 |
19% |
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$ 28,067 |
15% |
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Non-GAAP items tax effected |
( H ) |
13,930 |
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7,725 |
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36,360 |
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24,062 |
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Tax on gain on an equity sale |
( I ) |
- |
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- |
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(5,836) |
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- |
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Tax on RDS litigation |
( J ) |
19,840 |
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- |
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19,840 |
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- |
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Non-GAAP income tax provision: |
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$ 29,049 |
25% |
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$ 16,617 |
14% |
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$ 86,735 |
22% |
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$ 52,129 |
15% |
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NET INCOME: |
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GAAP net income attributable to Trimble Navigation Ltd. |
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$ 11,832 |
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$ 54,469 |
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$ 158,290 |
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$ 158,858 |
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Restructuring |
( A ) |
327 |
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39 |
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1,670 |
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5,431 |
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Amortization of purchased intangible assets |
( B ) |
39,326 |
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41,618 |
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117,769 |
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120,713 |
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Stock-based compensation |
( C ) |
11,038 |
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8,905 |
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32,125 |
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26,158 |
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Amortization of acquisition-related inventory step-up |
( D ) |
586 |
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378 |
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662 |
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1,505 |
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Acquisition / divestiture items |
( E ) |
5,755 |
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2,905 |
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13,420 |
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8,439 |
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Gain on an equity sale |
( F ) |
- |
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- |
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(15,091) |
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- |
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Litigation |
( G ) |
52,011 |
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1,335 |
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52,011 |
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1,335 |
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Non-GAAP tax adjustments |
(H ), (I), (J) |
(33,770) |
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(7,725) |
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(50,364) |
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(24,062) |
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Non-GAAP net income attributable to Trimble Navigation Ltd. |
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$ 87,105 |
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$ 101,924 |
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$ 310,492 |
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$ 298,377 |
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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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$ 0.04 |
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$ 0.21 |
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$ 0.60 |
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$ 0.61 |
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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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Amortization of purchased intangible assets |
( B ) |
0.15 |
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0.16 |
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0.44 |
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0.45 |
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Stock-based compensation |
( C ) |
0.04 |
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0.03 |
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0.12 |
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0.10 |
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Amortization of acquisition-related inventory step-up |
( D ) |
- |
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- |
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- |
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0.01 |
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Acquisition / divestiture items |
( E ) |
0.02 |
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0.01 |
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0.05 |
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0.03 |
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Gain on an equity sale |
( F ) |
- |
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- |
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(0.06) |
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- |
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Litigation |
( G ) |
0.20 |
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0.01 |
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0.20 |
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0.01 |
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Non-GAAP tax adjustments |
(H ), (I), (J) |
(0.12) |
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(0.03) |
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(0.19) |
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(0.09) |
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Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
$ 0.33 |
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$ 0.39 |
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$ 1.17 |
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$ 1.14 |
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OPERATING LEVERAGE: |
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Increase in non-GAAP operating income |
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$ 238 |
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$ 12,889 |
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$ 46,769 |
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$ 36,541 |
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Increase in revenue |
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$ 28,294 |
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$ 51,739 |
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$ 142,810 |
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$ 164,316 |
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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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0.8% |
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24.9% |
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32.7% |
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22.2% |
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