GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

First Quarter of

2015

2014

Dollar

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$ 307.2

52.7%

$  326.9

54.1%

Restructuring

( A )

0.2

0.0%

0.1

0.0%

Amortization of purchased intangible assets

( B )

22.5

3.9%

20.9

3.4%

Stock-based compensation

( C )

0.9

0.2%

0.7

0.1%

Non-GAAP gross margin: 

$ 330.8

56.8%

$  348.6

57.6%

OPERATING EXPENSES:

GAAP operating expenses:

$ 267.7

45.9%

$  251.2

41.5%

Restructuring

( A )

(1.1)

-0.2%

(0.3)

-0.1%

Amortization of purchased intangible assets

( B )

(18.2)

-3.1%

(19.7)

-3.3%

Stock-based compensation

( C )

(11.6)

-2.0%

(9.4)

-1.5%

Acquisition / divestiture items

( D )

(2.8)

-0.5%

(1.4)

-0.2%

Non-GAAP operating expenses:

$ 234.0

40.1%

$  220.4

36.4%

OPERATING INCOME:

GAAP operating income:

$  39.5

6.8%

$    75.7

12.5%

Restructuring

( A )

1.3

0.2%

0.4

0.1%

Amortization of purchased intangible assets

( B )

40.7

7.0%

40.6

6.7%

Stock-based compensation

( C )

12.5

2.1%

10.1

1.7%

Acquisition / divestiture items

( D )

2.8

0.5%

1.4

0.2%

Non-GAAP operating income: 

$  96.8

16.6%

$  128.2

21.2%

NON-OPERATING INCOME, NET:

GAAP non-operating income, net:

$    4.7

$    12.8

Acquisition / divestiture items

( D )

(5.8)

1.7

Gain on an equity sale

( E )

-

(15.1)

Debt issuance cost write-off

( F )

(0.1)

-

Non-GAAP non-operating loss, net: 

$   (1.2)

$     (0.6)

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Tax Rate %

( I )

Tax Rate %

( I )

INCOME TAX PROVISION:

GAAP income tax provision:

$  10.2

23%

$    20.4

23%

Non-GAAP items tax effected

( G )

12.8

11.0

Tax on gain on an equity sale

( H )

-

(5.8)

Non-GAAP income tax provision: 

$  23.0

24%

$    25.6

20%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Ltd.

$  34.1

$    68.6

Restructuring

( A )

1.3

0.4

Amortization of purchased intangible assets

( B )

40.7

40.6

Stock-based compensation

( C )

12.5

10.1

Acquisition / divestiture items

( D )

(3.0)

3.1

Gain on an equity sale

( E )

-

(15.1)

Debt issuance cost write-off

( F )

(0.1)

-

Non-GAAP tax adjustments

( G ), ( H )

(12.8)

(5.2)

Non-GAAP net income attributable to Trimble Navigation Ltd.

$  72.7

$  102.5

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share attributable to Trimble Navigation Ltd.

$  0.13

$0.26

Restructuring

( A )

-

-

Amortization of purchased intangible assets

( B )

0.16

0.16

Stock-based compensation

( C )

0.05

0.04

Acquisition / divestiture items

( D )

(0.01)

0.01

Gain on an equity sale

( E )

-

(0.06)

Debt issuance cost write-off

( F )

-

-

Non-GAAP tax adjustments

( G ), ( H )

(0.05)

(0.02)

Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd.

$  0.28

$    0.39

OPERATING LEVERAGE:

Increase (decrease) in non-GAAP operating income

$ (31.4)

$    17.9

Increase (decrease) in revenue

$ (22.1)

$    48.6

Operating leverage (increase in non-GAAP operating 

income as a % of increase in revenue)

N/A

36.8%