NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED STATEMENTS OF INCOME 

(In millions, except per share data)

(Unaudited)

As Reported

ASC 606 & ASU 2017-07 Adjustments 

As Adjusted

Fiscal Year 

Fiscal Year 

Fiscal Year 

Fiscal Year 

Fiscal Year 

Fiscal Year 

2017

2016

2017

2016

2017

2016

Revenue:

Product

$      1,763.8

$      1,562.0

$                -

$          8.6

$      1,763.8

$      1,570.6

Service

461.6

430.2

13.8

6.5

475.4

436.7

Subscription

428.8

370.0

(21.5)

(15.2)

407.3

354.8

Total revenue

2,654.2

2,362.2

(7.7)

(0.1)

2,646.5

2,362.1

Cost of sales:

Product

866.5

760.8

9.1

3.2

875.6

764.0

Service

196.3

169.9

(1.9)

0.2

194.4

170.1

Subscription

113.0

104.9

0.1

-

113.1

104.9

Amortization of purchased intangible assets

85.8

88.6

-

-

85.8

88.6

Total cost of sales

1,261.6

1,124.2

7.3

3.4

1,268.9

1,127.6

Gross margin

1,392.6

1,238.0

(15.0)

(3.5)

1,377.6

1,234.5

Gross margin (%)

52.5%

52.4%

52.1%

52.3%

Operating expense:

Research and development

370.2

349.6

-

-

370.2

349.6

Sales and marketing

404.2

377.6

(4.1)

(2.9)

400.1

374.7

General and administrative

302.3

256.0

(0.6)

-

301.7

256.0

Restructuring charges

6.9

11.6

-

-

6.9

11.6

Amortization of purchased intangible assets

63.0

62.2

-

-

63.0

62.2

Total operating expense

1,146.6

1,057.0

(4.7)

(2.9)

1,141.9

1,054.1

Operating income

246.0

181.0

(10.3)

(0.6)

235.7

180.4

Non-operating income (expense), net:

Interest expense, net

(25.0)

(25.9)

(0.2)

-

(25.2)

(25.9)

Foreign currency transaction gain (loss), net

3.3

(1.9)

-

-

3.3

(1.9)

Income from equity method investments, net

29.5

17.6

-

-

29.5

17.6

Other income, net

5.3

5.9

(0.4)

-

4.9

5.9

Total non-operating income (expense), net

13.1

(4.3)

(0.6)

-

12.5

(4.3)

Income before taxes

259.1

176.7

(10.9)

(0.6)

248.2

176.1

Income tax provision

137.9

44.5

(8.2)

(0.6)

129.7

43.9

Net income 

121.2

132.2

(2.7)

-

118.5

132.2

Net gain (loss) attributable to noncontrolling interests

0.1

(0.2)

-

-

0.1

(0.2)

Net income attributable to Trimble Inc.

$         121.1

$         132.4

$            (2.7)

$         118.4

$         132.4

Net income per share attributable to Trimble Inc.

Basic

$           0.48

$           0.53

$          (0.01)

$             -

$           0.47

$           0.53

Diluted

$           0.47

$           0.52

$          (0.01)

$             -

$           0.46

$           0.52

Shares used in calculating net income per share:

Basic

252.1

250.5

-

-

252.1

250.5

Diluted

256.7

253.9

-

-

256.7

253.9