GAAP TO NON-GAAP RECONCILIATION (Dollars in millions, except per share data) (Unaudited) | |||||||||||||||||||||||||||
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| Third Quarter of |
| First Three Quarters of | ||||||||||||||||||||
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| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||||||||||||||
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| Dollar
| % of Revenue |
| Dollar
| % of Revenue |
| Dollar
| % of Revenue |
| Dollar
| % of Revenue | ||||||||||||
REVENUE: |
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| GAAP revenue: |
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| $ | 792.1 |
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| $ | 783.9 |
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| $ | 2,318.0 |
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| $ | 2,440.3 |
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| Acquired deferred revenue adjustment | (A) |
| 0.7 |
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| 0.4 |
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| 4.0 |
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| 4.3 |
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| Non-GAAP revenue: |
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| $ | 792.8 |
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| $ | 784.3 |
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| $ | 2,322.0 |
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| $ | 2,444.6 |
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GROSS MARGIN: |
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| GAAP gross margin: |
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| $ | 439.7 |
| 55.5 | % |
| $ | 422.0 |
| 53.8 | % |
| $ | 1,286.4 |
| 55.5 | % |
| $ | 1,320.9 |
| 54.1 | % | |
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| Acquired deferred revenue adjustment | (A) |
| 0.7 |
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| 0.4 |
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| 4.0 |
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| 4.3 |
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| Restructuring charges | (B) |
| 0.3 |
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| — |
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| 0.7 |
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| 0.2 |
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| COVID-19 expenses | (C) |
| — |
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| — |
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| 0.3 |
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| — |
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| Amortization of purchased intangible assets | (D) |
| 23.3 |
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| 23.3 |
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| 70.0 |
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| 71.3 |
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| Stock-based compensation / deferred compensation | (E) |
| 2.5 |
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| 1.5 |
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| 5.2 |
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| 4.4 |
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| Acquisition / divestiture items | (F) |
| — |
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| — |
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| 1.7 |
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| — |
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| Non-GAAP gross margin: |
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| $ | 466.5 |
| 58.8 | % |
| $ | 447.2 |
| 57.0 | % |
| $ | 1,368.3 |
| 58.9 | % |
| $ | 1,401.1 |
| 57.3 | % | |
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OPERATING EXPENSES: |
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| GAAP operating expenses: |
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| $ | 337.7 |
| 42.6 | % |
| $ | 330.3 |
| 42.1 | % |
| $ | 988.5 |
| 42.6 | % |
| $ | 1,033.2 |
| 42.3 | % | |
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| Restructuring charges / executive transition costs | (B) |
| (13.2) |
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| (3.6) |
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| (21.2) |
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| (10.0) |
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| COVID-19 expenses | (C) |
| (1.2) |
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| — |
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| (4.5) |
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| — |
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| Amortization of purchased intangible assets | (D) |
| (16.7) |
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| (17.5) |
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| (50.2) |
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| (57.3) |
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| Stock-based compensation / deferred compensation | (E) |
| (29.5) |
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| (17.0) |
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| (56.7) |
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| (51.5) |
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| Acquisition / divestiture items | (F) |
| (3.7) |
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| (8.4) |
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| (14.7) |
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| (11.5) |
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| Amortization of acquired capitalized commissions | (G) |
| 1.3 |
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| 1.5 |
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| 4.2 |
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| 4.8 |
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| Non-GAAP operating expenses: |
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| $ | 274.7 |
| 34.6 | % |
| $ | 285.3 |
| 36.4 | % |
| $ | 845.4 |
| 36.4 | % |
| $ | 907.7 |
| 37.1 | % | |
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OPERATING INCOME: |
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| GAAP operating income: |
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| $ | 102.0 |
| 12.9 | % |
| $ | 91.7 |
| 11.7 | % |
| $ | 297.9 |
| 12.9 | % |
| $ | 287.7 |
| 11.8 | % | |
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| Acquired deferred revenue adjustment | (A) |
| 0.7 |
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| 0.4 |
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| 4.0 |
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| 4.3 |
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| Restructuring charges / executive transition costs | (B) |
| 13.5 |
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| 3.6 |
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| 21.9 |
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| 10.2 |
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| COVID-19 expenses | (C) |
| 1.2 |
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| — |
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| 4.8 |
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| — |
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| Amortization of purchased intangible assets | (D) |
| 40.0 |
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| 40.8 |
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| 120.2 |
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| 128.6 |
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| Stock-based compensation / deferred compensation | (E) |
| 32.0 |
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| 18.5 |
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| 61.9 |
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| 55.9 |
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| Acquisition / divestiture items | (F) |
| 3.7 |
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| 8.4 |
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| 16.4 |
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| 11.5 |
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| Amortization of acquired capitalized commissions | (G) |
| (1.3) |
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| (1.5) |
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| (4.2) |
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| (4.8) |
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| Non-GAAP operating income: |
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| $ | 191.8 |
| 24.2 | % |
| $ | 161.9 |
| 20.6 | % |
| $ | 522.9 |
| 22.5 | % |
| $ | 493.4 |
| 20.2 | % | |
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NON-OPERATING EXPENSE, NET: |
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| GAAP non-operating expense, net: |
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| $ | (5.6) |
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| $ | (12.8) |
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| $ | (31.2) |
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| $ | (18.2) |
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| Deferred compensation | (E) |
| (4.2) |
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| 0.1 |
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| (4.8) |
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| (3.8) |
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| Acquisition / divestiture items | (F) |
| 0.1 |
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| 0.3 |
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| 2.5 |
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| (12.5) |
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| Non-GAAP non-operating expense, net: |
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| $ | (9.7) |
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| $ | (12.4) |
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| $ | (33.5) |
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| $ | (34.5) |
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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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| (J) |
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| (J) |
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| (J) | ||||||||||||
INCOME TAX PROVISION: |
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| GAAP income tax provision: |
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| $ | 11.6 |
| 12.0 | % |
| $ | 0.8 |
| 1.0 | % |
| $ | 56.8 |
| 21.3 | % |
| $ | 34.4 |
| 12.8 | % | |
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| Non-GAAP items tax effected | (H) |
| 10.3 |
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| 0.7 |
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| 46.2 |
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| 21.4 |
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| Difference in GAAP and Non-GAAP tax rate | (I) |
| 7.3 |
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| 26.9 |
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| (20.7) |
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| 34.5 |
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| Non-GAAP income tax provision: |
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| $ | 29.2 |
| 16.0 | % |
| $ | 28.4 |
| 19.0 | % |
| $ | 82.3 |
| 16.8 | % |
| $ | 90.3 |
| 19.7 | % | |
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NET INCOME: |
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| GAAP net income attributable to Trimble Inc.: |
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| $ | 84.7 |
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| $ | 78.1 |
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| $ | 209.6 |
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| $ | 235.0 |
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| Acquired deferred revenue adjustment | (A) |
| 0.7 |
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| 0.4 |
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| 4.0 |
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| 4.3 |
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| Restructuring charges / executive transition costs | (B) |
| 13.5 |
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| 3.6 |
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| 21.9 |
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| 10.2 |
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| COVID-19 expenses | (C) |
| 1.2 |
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| — |
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| 4.8 |
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| — |
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| Amortization of purchased intangible assets | (D) |
| 40.0 |
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| 40.8 |
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| 120.2 |
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| 128.6 |
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| Stock-based compensation / deferred compensation | (E) |
| 27.8 |
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| 18.6 |
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| 57.1 |
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| 52.1 |
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| Acquisition / divestiture items | (F) |
| 3.8 |
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| 8.7 |
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| 18.9 |
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| (1.0) |
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| Amortization of acquired capitalized commissions | (G) |
| (1.3) |
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| (1.5) |
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| (4.2) |
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| (4.8) |
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| Non-GAAP tax adjustments | (H)-(I) |
| (17.6) |
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| (27.6) |
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| (25.5) |
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| (55.9) |
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| Non-GAAP net income attributable to Trimble Inc.: |
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| $ | 152.8 |
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| $ | 121.1 |
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| $ | 406.8 |
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| $ | 368.5 |
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DILUTED NET INCOME PER SHARE: |
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| GAAP diluted net income per share attributable to Trimble Inc.: |
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| $ | 0.34 |
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| $ | 0.31 |
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| $ | 0.83 |
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| $ | 0.93 |
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| Acquired deferred revenue adjustment | (A) |
| — |
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| — |
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| 0.02 |
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| 0.01 |
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| Restructuring charges / executive transition costs | (B) |
| 0.05 |
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| 0.01 |
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| 0.08 |
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| 0.04 |
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| COVID-19 expenses | (C) |
| — |
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| — |
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| 0.02 |
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| — |
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| Amortization of purchased intangible assets | (D) |
| 0.16 |
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| 0.16 |
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| 0.48 |
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| 0.51 |
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| Stock-based compensation / deferred compensation | (E) |
| 0.11 |
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| 0.07 |
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| 0.23 |
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| 0.20 |
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| Acquisition / divestiture items | (F) |
| 0.02 |
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| 0.03 |
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| 0.07 |
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| — |
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| Amortization of acquired capitalized commissions | (G) |
| (0.01) |
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| — |
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| (0.02) |
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| (0.02) |
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| Non-GAAP tax adjustments | (H)-(I) |
| (0.07) |
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| (0.10) |
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| (0.10) |
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| (0.22) |
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| Non-GAAP diluted net income per share attributable to Trimble Inc.: |
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| $ | 0.60 |
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| $ | 0.48 |
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| $ | 1.61 |
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| $ | 1.45 |
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ADJUSTED EBITDA: |
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| GAAP net income attributable to Trimble Inc.: |
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| $ | 84.7 |
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| $ | 78.1 |
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| $ | 209.6 |
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| $ | 235.0 |
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| Non-operating expense, net, income tax provision, and net gain attributable to noncontrolling interests |
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| 17.3 |
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| 13.6 |
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| 88.3 |
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| 52.7 |
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| GAAP operating income: |
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| 102.0 |
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| 91.7 |
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| 297.9 |
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| 287.7 |
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| Acquired deferred revenue adjustment | (A) |
| 0.7 |
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| 0.4 |
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| 4.0 |
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| 4.3 |
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| Restructuring charges / executive transition costs | (B) |
| 13.5 |
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| 3.6 |
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| 21.9 |
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| 10.2 |
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| COVID-19 expenses | (C) |
| 1.2 |
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| — |
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| 4.8 |
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| — |
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| Amortization of purchased intangible assets | (D) |
| 40.0 |
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| 40.8 |
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| 120.2 |
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| 128.6 |
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| Stock-based compensation / deferred compensation | (E) |
| 32.0 |
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| 18.5 |
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| 61.9 |
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| 55.9 |
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| Acquisition / divestiture items | (F) |
| 3.7 |
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| 8.4 |
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| 16.4 |
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| 11.5 |
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| Amortization of acquired capitalized commissions | (G) |
| (1.3) |
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| (1.5) |
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| (4.2) |
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| (4.8) |
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| Non-GAAP operating income: |
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| 191.8 |
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| 161.9 |
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| 522.9 |
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| 493.4 |
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| Depreciation expense |
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| 9.9 |
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| 9.4 |
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| 29.4 |
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| 29.7 |
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| Income from equity income investments, net |
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| 10.8 |
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| 8.8 |
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| 29.9 |
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| 30.5 |
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| Adjusted EBITDA: |
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| $ | 212.5 |
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| $ | 180.1 |
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| $ | 582.2 |
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| $ | 553.6 |
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FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION