|
GAAP TO NON-GAAP RECONCILIATION |
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(Dollars in thousands, except per share data) |
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(Unaudited) |
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Fourth Quarter of |
Fiscal Years |
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|
2014 |
2013 |
2014 |
2013 |
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|
Dollar |
% of |
Dollar |
% of |
Dollar |
% of |
Dollar |
% of |
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|
Amount |
Revenue |
Amount |
Revenue |
Amount |
Revenue |
Amount |
Revenue |
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|
GROSS MARGIN: |
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|
GAAP gross margin: |
$ 292,608 |
51.9% |
$319,454 |
53.3% |
$1,290,844 |
53.9% |
$1,203,822 |
52.6% |
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|
Restructuring |
( A ) |
38 |
0.0% |
31 |
0.0% |
363 |
0.0% |
860 |
0.0% |
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|
Amortization of purchased intangible assets |
( B ) |
21,950 |
3.9% |
21,181 |
3.6% |
82,913 |
3.5% |
81,119 |
3.6% |
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|
Stock-based compensation |
( C ) |
898 |
0.2% |
757 |
0.1% |
3,184 |
0.1% |
2,573 |
0.1% |
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|
Amortization of acquisition-related inventory step-up |
( D ) |
154 |
0.0% |
- |
0.0% |
816 |
0.0% |
1,505 |
0.1% |
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|
Non-GAAP gross margin: |
$ 315,648 |
56.0% |
$ 341,423 |
57.0% |
$1,378,120 |
57.5% |
$1,289,879 |
56.4% |
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|
OPERATING EXPENSES: |
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|
GAAP operating expenses: |
$ 215,719 |
38.3% |
$252,108 |
42.1% |
$1,030,021 |
43.0% |
$952,085 |
41.6% |
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|
Restructuring |
( A ) |
(396) |
-0.1% |
(1,358) |
-0.2% |
(1,741) |
-0.1% |
(5,960) |
-0.3% |
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|
Amortization of purchased intangible assets |
( B ) |
(18,793) |
-3.3% |
(20,947) |
-3.5% |
(75,599) |
-3.1% |
(81,722) |
-3.5% |
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|
Stock-based compensation |
( C ) |
(10,375) |
-1.9% |
(9,527) |
-1.6% |
(40,214) |
-1.7% |
(33,869) |
-1.4% |
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|
Acquisition / divestiture items |
( E ) |
(6,033) |
-1.1% |
(3,910) |
-0.7% |
(13,449) |
-0.6% |
(13,195) |
-0.6% |
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|
Litigation |
( H ) |
51,300 |
9.1% |
- |
0.0% |
(711) |
0.0% |
(1,335) |
-0.1% |
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|
Non-GAAP operating expenses: |
$ 231,422 |
41.0% |
$ 216,366 |
36.1% |
$ 898,307 |
37.5% |
$816,004 |
35.7% |
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|
OPERATING INCOME: |
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|
GAAP operating income: |
$ 76,889 |
13.6% |
$67,346 |
11.2% |
$ 260,823 |
10.9% |
$251,737 |
11.0% |
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|
Restructuring |
( A ) |
434 |
0.1% |
1,389 |
0.2% |
2,104 |
0.1% |
6,820 |
0.3% |
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|
Amortization of purchased intangible assets |
( B ) |
40,743 |
7.2% |
42,128 |
7.0% |
158,512 |
6.6% |
162,841 |
7.1% |
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|
Stock-based compensation |
( C ) |
11,273 |
2.0% |
10,284 |
1.7% |
43,398 |
1.8% |
36,442 |
1.5% |
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|
Amortization of acquisition-related inventory step-up |
( D ) |
154 |
0.0% |
- |
0.0% |
816 |
0.0% |
1,505 |
0.1% |
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|
Acquisition / divestiture items |
( E ) |
6,033 |
1.1% |
3,910 |
0.8% |
13,449 |
0.6% |
13,195 |
0.6% |
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|
Litigation |
( H ) |
(51,300) |
-9.1% |
- |
0.0% |
711 |
0.0% |
1,335 |
0.1% |
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|
Non-GAAP operating income: |
$ 84,226 |
14.9% |
$ 125,057 |
20.9% |
$ 479,813 |
20.0% |
$473,875 |
20.7% |
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NON-OPERATING INCOME (LOSS), NET: |
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|
GAAP non-operating income (loss), net: |
$ (5,272) |
($1,054) |
$ 5,192 |
$1,127 |
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|
Acquisition / divestiture items |
( E ) |
(3,105) |
2,276 |
2,899 |
1,430 |
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|
Gain on an equity sale |
( F ) |
- |
- |
(15,091) |
- |
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|
Debt issuance cost write-off |
( G ) |
4,205 |
- |
4,205 |
- |
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|
Non-GAAP non-operating income (loss), net: |
$ (4,172) |
$ 1,222 |
$ (2,795) |
$2,557 |
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|
GAAP and |
GAAP and |
GAAP and |
GAAP and |
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|
Non-GAAP |
Non-GAAP |
Non-GAAP |
Non-GAAP |
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|
Tax Rate % |
( L ) |
Tax Rate % |
( L ) |
Tax Rate % |
( L ) |
Tax Rate % |
( L ) |
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|
INCOME TAX PROVISION: |
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|
GAAP income tax provision: |
$ 15,756 |
22% |
$6,631 |
10% |
$ 52,127 |
20% |
$34,698 |
14% |
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|
Non-GAAP items tax effected |
( I ) |
7,982 |
6,001 |
44,342 |
30,064 |
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|
Tax on gain on an equity sale |
( J ) |
- |
- |
(5,836) |
- |
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|
Tax on RDS litigation |
( K ) |
(19,840) |
- |
- |
- |
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|
Non-GAAP income tax provision: |
$ 3,898 |
5% |
$ 12,632 |
10% |
$ 90,633 |
19% |
$ 64,762 |
14% |
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|
NET INCOME: |
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|
GAAP net income attributable to Trimble Navigation Ltd. |
$ 55,828 |
$ 59,997 |
$ 214,118 |
$ 218,855 |
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|
Restructuring |
( A ) |
434 |
1,389 |
2,104 |
6,820 |
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|
Amortization of purchased intangible assets |
( B ) |
40,743 |
42,128 |
158,512 |
162,841 |
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|
Stock-based compensation |
( C ) |
11,273 |
10,284 |
43,398 |
36,442 |
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|
Amortization of acquisition-related inventory step-up |
( D ) |
154 |
- |
816 |
1,505 |
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|
Acquisition / divestiture items |
( E ) |
2,928 |
6,186 |
16,348 |
14,625 |
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|
Gain on an equity sale |
( F ) |
- |
- |
(15,091) |
- |
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|
Debt issuance cost write-off |
( G ) |
4,205 |
- |
4,205 |
- |
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|
Litigation |
( H ) |
(51,300) |
- |
711 |
1,335 |
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|
Non-GAAP tax adjustments |
(I), (J), (K) |
11,858 |
(6,001) |
(38,506) |
(30,064) |
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|
Non-GAAP net income attributable to Trimble Navigation Ltd. |
$ 76,123 |
$ 113,983 |
$ 386,615 |
$ 412,359 |
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DILUTED NET INCOME PER SHARE: |
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|
GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
$ 0.21 |
$0.23 |
$ 0.81 |
$0.84 |
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|
Restructuring |
( A ) |
- |
- |
0.01 |
0.03 |
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|
Amortization of purchased intangible assets |
( B ) |
0.16 |
0.16 |
0.60 |
0.62 |
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|
Stock-based compensation |
( C ) |
0.04 |
0.04 |
0.16 |
0.14 |
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|
Amortization of acquisition-related inventory step-up |
( D ) |
- |
- |
- |
- |
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|
Acquisition / divestiture items |
( E ) |
0.01 |
0.02 |
0.06 |
0.06 |
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|
Gain on an equity sale |
( F ) |
- |
- |
(0.06) |
- |
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|
Debt issuance cost write-off |
( G ) |
0.02 |
- |
0.02 |
- |
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|
Litigation |
( H ) |
(0.20) |
- |
- |
0.01 |
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|
Non-GAAP tax adjustments |
(I), (J), (K) |
0.05 |
(0.02) |
(0.14) |
(0.12) |
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|
Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
$ 0.29 |
$ 0.43 |
$ 1.46 |
$ 1.58 |
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OPERATING LEVERAGE: |
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|
Increase in non-GAAP operating income |
$ (40,831) |
$ 39,997 |
$ 5,938 |
$ 76,538 |
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|
Increase in revenue |
$ (35,388) |
$ 83,695 |
$ 107,422 |
$ 248,011 |
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Operating leverage (increase in non-GAAP operating |
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|
income as a % of increase in revenue) |
N/A |
47.8% |
5.5% |
30.9% |
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