REPORTING SEGMENTS

(In millions)

(Unaudited)

Reporting Segments

Buildings and
Infrastructure

Geospatial

Resources and
Utilities

Transportation

FIRST QUARTER OF 2023:

Segment revenue

$              399.5

$              152.4

$              208.6

$              154.9

Segment operating income

$              113.3

$                37.3

$                79.1

$                23.4

Segment operating income as a % of segment revenue

28.4 %

24.5 %

37.9 %

15.1 %

FIRST QUARTER OF 2022:

Segment revenue

$              397.6

$              207.5

$              229.9

$              158.7

Segment operating income

$              120.7

$                57.9

$                75.1

$                  9.2

Segment operating income as a % of segment revenue

30.4 %

27.9 %

32.7 %

5.8 %

GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

First Quarter of

2023

2022

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

REVENUE:

GAAP revenue:

$           915.4

$          993.7

GROSS MARGIN:

GAAP gross margin:

$           560.8

61.3 %

$          549.6

55.3 %

Amortization of purchased intangible assets

(A)

23.0

22.5

Acquisition / divestiture items

(B)

0.2

—

Stock-based compensation / deferred compensation

(C)

3.5

2.2

Restructuring and other costs

(D)

0.3

1.1

Non-GAAP gross margin:

$           587.8

64.2 %

$          575.4

57.9 %

OPERATING EXPENSES:

GAAP operating expenses:

$           423.8

46.3 %

$          392.7

39.5 %

Amortization of purchased intangible assets

(A)

(11.7)

(12.1)

Acquisition / divestiture items

(B)

(6.8)

(3.9)

Stock-based compensation / deferred compensation

(C)

(31.9)

(22.8)

Restructuring and other costs

(D)

(11.7)

(11.6)

Non-GAAP operating expenses:

$           361.7

39.5 %

$          342.3

34.4 %

OPERATING INCOME:

GAAP operating income:

$           137.0

15.0 %

$          156.9

15.8 %

Amortization of purchased intangible assets

(A)

34.7

34.6

Acquisition / divestiture items

(B)

7.0

3.9

Stock-based compensation / deferred compensation

(C)

35.4

25.0

Restructuring and other costs

(D)

12.0

12.7

Non-GAAP operating income:

$           226.1

24.7 %

$          233.1

23.5 %

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$             23.6

$           (18.4)

Acquisition / divestiture items

(B)

(31.6)

8.9

Deferred compensation

(C)

(2.0)

3.3

Restructuring and other costs

(D)

1.3

0.1

Non-GAAP non-operating expense, net:

$              (8.7)

$             (6.1)

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

(G)

(G)

INCOME TAX PROVISION:

GAAP income tax provision:

$             31.8

19.8 %

$             28.2

20.4 %

Non-GAAP items tax effected

(E)

11.2

18.1

Difference in GAAP and Non-GAAP tax rate

(F)

(3.5)

(4.1)

Non-GAAP income tax provision:

$             39.5

18.2 %

$             42.2

18.6 %

NET INCOME:

GAAP net income:

$           128.8

$           110.3

Amortization of purchased intangible assets

(A)

34.7

34.6

Acquisition / divestiture items

(B)

(24.6)

12.8

Stock-based compensation / deferred compensation

(C)

33.4

28.3

Restructuring and other costs

(D)

13.3

12.8

Non-GAAP tax adjustments

(E) - (F)

(7.7)

(14.0)

Non-GAAP net income:

$           177.9

$           184.8

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share:

$             0.52

$             0.44

Amortization of purchased intangible assets

(A)

0.14

0.14

Acquisition / divestiture items

(B)

(0.10)

0.05

Stock-based compensation / deferred compensation

(C)

0.14

0.11

Restructuring and other costs

(D)

0.05

0.05

Non-GAAP tax adjustments

(E) - (F)

(0.03)

(0.06)

Non-GAAP diluted net income per share:

$             0.72

$             0.73

ADJUSTED EBITDA:

GAAP net income:

$           128.8

$           110.3

Non-operating income (expense), net and income tax provision

8.2

46.6

GAAP operating income:

137.0

156.9

Amortization of purchased intangible assets

(A)

34.7

34.6

Acquisition / divestiture items

(B)

7.0

3.9

Stock-based compensation / deferred compensation

(C)

35.4

25.0

Restructuring and other costs

(D)

12.0

12.7

Non-GAAP operating income:

226.1

233.1

Depreciation expense and cloud computing amortization

11.3

10.5

Income from equity method investments, net

11.4

9.7

Adjusted EBITDA:

$           248.8

27.2 %

$           253.3

25.5 %