CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2016

2015

2016

2015

Revenue:

        Product

$  407.0

$  394.6

$  800.6

$  795.2

        Service

109.7

105.7

211.3

206.6

        Subscription

92.9

85.5

180.7

166.6

Total revenue

609.6

585.8

1,192.6

1,168.4

Cost of sales:

        Product

199.4

190.8

389.4

378.5

        Service

44.0

42.2

85.6

83.6

        Subscription

26.6

25.9

53.3

49.7

        Amortization of purchased intangible assets

24.0

23.0

48.1

45.5

Total cost of sales

294.0

281.9

576.4

557.3

Gross margin

315.6

303.9

616.2

611.1

Gross margin (%)

51.8%

51.9%

51.7%

52.3%

Operating expense:

    Research and development

92.0

84.5

179.7

171.7

    Sales and marketing

97.4

96.2

194.1

192.7

    General and administrative

65.6

64.2

133.9

128.9

    Restructuring charges

4.5

5.2

6.3

6.3

    Amortization of purchased intangible assets

15.6

17.8

31.8

36.0

       Total operating expense

275.1

267.9

545.8

535.6

Operating income 

40.5

36.0

70.4

75.5

Non-operating income (expense), net:

    Interest expense

(6.6)

(6.3)

(13.2)

(12.7)

    Foreign currency transaction gain (loss), net

(1.5)

-

(1.6)

1.1

    Income from equity method investments, net

5.8

6.4

8.7

9.4

    Other income, net

0.1

(0.3)

3.4

6.7

       Total non-operating income (expense), net

(2.2)

(0.2)

(2.7)

4.5

Income before taxes

38.3

35.8

67.7

80.0

Income tax provision

2.7

10.0

12.4

20.2

Net income

35.6

25.8

55.3

59.8

(0.1)

(0.1)

(0.2)

(0.2)

Net income attributable to Trimble Navigation Limited

$   35.7

$   25.9

$   55.5

$   60.0

Earnings per share attributable to Trimble Navigation Limited:

     Basic

$   0.14

$   0.10

$    0.22

$   0.23

     Diluted

$   0.14

$   0.10

$    0.22

$   0.23

Shares used in calculating earnings per share:

    Basic

250.5

258.4

250.8

258.9

    Diluted

253.7

261.4

253.9

261.9