GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2015

2014

2015

2014

Dollar

% of

Dollar

% of

 Dollar 

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

 Amount 

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$ 303.9

51.9%

$ 354.6

55.2%

$   611.1

52.3%

$ 681.5

54.7%

Restructuring charges

( A )

0.3

0.1%

0.1

0.0%

0.5

0.0%

0.2

0.0%

Amortization of purchased intangible assets

( B )

23.0

3.9%

20.0

3.1%

45.5

3.9%

40.9

3.3%

Stock-based compensation

( C )

1.0

0.2%

0.8

0.2%

1.9

0.2%

1.5

0.1%

Amortization of acquisition-related inventory step-up

( D )

-

0.0%

0.1

0.0%

-

0.0%

0.1

0.0%

Non-GAAP gross margin: 

$ 328.2

56.1%

$ 375.6

58.5%

$   659.0

56.4%

$ 724.2

58.1%

OPERATING EXPENSES:

GAAP operating expenses:

$ 267.9

45.7%

$ 257.4

40.1%

$   535.6

45.8%

$ 508.6

40.8%

Restructuring charges

( A )

(5.2)

-0.9%

(0.8)

-0.1%

(6.3)

-0.5%

(1.1)

-0.1%

Amortization of purchased intangible assets

( B )

(17.8)

-3.0%

(17.8)

-2.8%

(36.0)

-3.1%

(37.5)

-3.0%

Stock-based compensation

( C )

(11.0)

-1.9%

(10.2)

-1.6%

(22.6)

-1.9%

(19.6)

-1.6%

Acquisition / divestiture items

( E )

(2.8)

-0.5%

(2.0)

-0.3%

(5.6)

-0.5%

(3.4)

-0.3%

Non-GAAP operating expenses:

$ 231.1

39.4%

$ 226.6

35.3%

$   465.1

39.8%

$ 447.0

35.8%

OPERATING INCOME:

GAAP operating income:

$   36.0

6.1%

$   97.2

15.1%

$     75.5

6.5%

$ 172.9

13.9%

Restructuring charges

( A )

5.5

0.9%

0.9

0.1%

6.8

0.6%

1.3

0.1%

Amortization of purchased intangible assets

( B )

40.8

7.0%

37.8

5.9%

81.5

7.0%

78.4

6.3%

Stock-based compensation

( C )

12.0

2.0%

11.0

1.8%

24.5

2.0%

21.1

1.6%

Amortization of acquisition-related inventory step-up

( D )

-

0.0%

0.1

0.0%

-

0.0%

0.1

0.0%

Acquisition / divestiture items

( E )

2.8

0.6%

2.0

0.3%

5.6

0.5%

3.4

0.3%

Non-GAAP operating income: 

$   97.1

16.6%

$ 149.0

23.2%

$   193.9

16.6%

$ 277.2

22.2%

NON-OPERATING INCOME (LOSS), NET:

GAAP non-operating income (loss), net:

$    (0.2)

$     1.6

$       4.5

$   14.4

Acquisition / divestiture items

( E )

0.2

2.6

(5.6)

4.3

Gain on an equity sale

( F )

-

-

-

(15.1)

Debt issuance cost write-off

( G )

0.1

-

-

-

Non-GAAP non-operating income (loss), net: 

$     0.1

$     4.2

$      (1.1)

$     3.6

GAAP and 

GAAP and 

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Non-GAAP

Non-GAAP

Tax Rate %

( K )

Tax Rate %

( K )

Tax Rate %

( K )

Tax Rate %

( K )

INCOME TAX PROVISION:

GAAP income tax provision:

$   10.0

28%

$   20.7

21%

$     20.2

25%

$   41.1

22%

Non-GAAP items tax effected 

( H )

17.2

11.4

29.0

22.4

Difference in GAAP and Non-GAAP tax rate

( I )

(3.9)

-

(2.9)

-

Tax on gain on an equity sale

( J )

-

-

-

(5.8)

Non-GAAP income tax provision: 

$   23.3

24%

$   32.1

21%

$     46.3

24%

$   57.7

21%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Ltd.

$   25.9

$   77.9

$     60.0

$ 146.5

Restructuring charges

( A )

5.5

0.9

6.8

1.3

Amortization of purchased intangible assets

( B )

40.8

37.8

81.5

78.4

Stock-based compensation

( C )

12.0

11.0

24.5

21.1

Amortization of acquisition-related inventory step-up

( D )

-

0.1

-

0.1

Acquisition / divestiture items

( E )

3.0

4.6

-

7.7

Gain on an equity sale

( F )

-

-

-

(15.1)

Debt issuance cost write-off

( G )

0.1

-

-

-

Non-GAAP tax adjustments

( H ), ( I ), ( J )

(13.3)

(11.4)

(26.1)

(16.6)

Non-GAAP net income attributable to Trimble Navigation Ltd.

$   74.0

$ 120.9

$   146.7

$ 223.4

DILUTED NET INCOME PER SHARE:

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

$   0.10

$   0.29

$     0.23

$   0.55

Restructuring charges

( A )

0.02

-

0.03

0.01

Amortization of purchased intangible assets

( B )

0.16

0.14

0.31

0.30

Stock-based compensation

( C )

0.04

0.04

0.09

0.08

Amortization of acquisition-related inventory step-up

( D )

-

-

-

-

Acquisition / divestiture items

( E )

0.01

0.02

-

0.03

Gain on an equity sale

( F )

-

-

-

(0.06)

Debt issuance cost write-off

( G )

-

-

-

-

Non-GAAP tax adjustments

( H ), ( I ), ( J )

(0.05)

(0.04)

(0.10)

(0.07)

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

$   0.28

$   0.45

$     0.56

$   0.84

OPERATING LEVERAGE:

Increase (decrease) in non-GAAP operating income

$  (51.9)

$   28.7

$    (83.3)

$   46.7

Increase (decrease) in revenue

$  (56.4)

$   65.9

$    (78.5)

$ 114.5

Operating leverage (increase in non-GAAP operating income as a % of increase in revenue)

N/A

43.6%

N/A

40.8%