GAAP TO NON-GAAP RECONCILIATION
(Dollars in millions, except per share data)
(Unaudited)

Second Quarter of

First Two Quarters of

2016

2015

2016

2015

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

GROSS MARGIN:

GAAP gross margin:

$  315.6

51.8%

$  303.9

51.9%

$   616.2

51.7%

$  611.1

52.3%

Restructuring charges

( A )

0.4

0.1%

0.3

0.1%

0.7

0.1%

0.5

0.0%

Amortization of purchased intangible assets

( B )

24.0

3.9%

23.0

3.9%

48.1

4.0%

45.5

3.9%

Stock-based compensation

( C )

0.9

0.1%

1.0

0.2%

1.9

0.1%

1.9

0.2%

Non-GAAP gross margin: 

$  340.9

55.9%

$  328.2

56.1%

$   666.9

55.9%

$  659.0

56.4%

OPERATING EXPENSES:

GAAP operating expenses:

$  275.1

45.1%

$  267.9

45.7%

$   545.8

45.8%

$  535.6

45.8%

Restructuring charges

( A )

(4.5)

-0.7%

(5.2)

-0.9%

(6.3)

-0.5%

(6.3)

-0.5%

Amortization of purchased intangible assets

( B )

(15.6)

-2.6%

(17.8)

-3.0%

(31.8)

-2.7%

(36.0)

-3.1%

Stock-based compensation

( C )

(12.1)

-2.0%

(11.0)

-1.9%

(24.8)

-2.1%

(22.6)

-1.9%

Acquisition / divestiture items

( D )

(0.9)

-0.1%

(2.8)

-0.5%

(2.5)

-0.2%

(5.6)

-0.5%

Executive transition costs

( E )

(0.1)

0.0%

-

0.0%

(1.0)

-0.1%

-

0.0%

Non-GAAP operating expenses:

$  241.9

39.7%

$  231.1

39.4%

$   479.4

40.2%

$  465.1

39.8%

OPERATING INCOME:

GAAP operating income:

$   40.5

6.7%

$   36.0

6.1%

$     70.4

5.9%

$   75.5

6.5%

Restructuring charges

( A )

4.9

0.8%

5.5

0.9%

7.0

0.6%

6.8

0.6%

Amortization of purchased intangible assets

( B )

39.6

6.5%

40.8

7.0%

79.9

6.7%

81.5

7.0%

Stock-based compensation

( C )

13.0

2.1%

12.0

2.0%

26.7

2.2%

24.5

2.0%

Acquisition / divestiture items

( D )

0.9

0.1%

2.8

0.0%

2.5

0.2%

5.6

0.5%

Executive transition costs

( E )

0.1

0.0%

-

0.6%

1.0

0.1%

-

0.0%

Non-GAAP operating income: 

$   99.0

16.2%

$   97.1

16.6%

$   187.5

15.7%

$  193.9

16.6%

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$    (2.2)

$    (0.2)

$     (2.7)

$     4.5

Acquisition / divestiture items

( D )

0.4

0.2

(2.7)

(5.6)

Debt issuance cost write-off

( F )

-

0.1

-

-

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

$    (1.8)

$     0.1

$     (5.4)

$    (1.1)

GAAP and 

GAAP and 

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Non-GAAP

Non-GAAP

Tax Rate %

( I )

Tax Rate %

( I )

Tax Rate %

( I )

Tax Rate %

INCOME TAX PROVISION:

GAAP income tax provision:

$     2.7

7%

$   10.0

28%

$     12.4

18%

$   20.2

25%

Non-GAAP items tax effected 

( G )

4.1

17.2

21.0

29.0

Difference in GAAP and Non-GAAP tax rate

( H )

16.4

(3.9)

10.3

(2.9)

Non-GAAP income tax provision: 

$   23.2

24%

$   23.3

24%

$     43.7

24%

$   46.3

24%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Limited

$   35.7

$   25.9

$     55.5

$   60.0

Restructuring charges

( A )

4.9

5.5

7.0

6.8

Amortization of purchased intangible assets

( B )

39.6

40.8

79.9

81.5

Stock-based compensation

( C )

13.0

12.0

26.7

24.5

Acquisition / divestiture items

( D )

1.3

3.0

(0.2)

-

Executive transition costs

( E )

0.1

-

1.0

-

Debt issuance cost write-off

( F )

-

0.1

-

-

Non-GAAP tax adjustments

( G ) + ( H )

(20.5)

(13.3)

(31.3)

(26.1)

Non-GAAP net income attributable to Trimble Navigation Limited

$   74.1

$   74.0

$   138.6

$  146.7

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share attributable to Trimble Navigation Limited

$   0.14

$   0.10

$     0.22

$   0.23

Restructuring charges

( A )

0.02

0.02

0.03

0.03

Amortization of purchased intangible assets

( B )

0.15

0.16

0.31

0.31

Stock-based compensation

( C )

0.05

0.04

0.11

0.09

Acquisition / divestiture items

( D )

0.01

0.01

-

-

Executive transition costs

( E )

-

-

-

-

Debt issuance cost write-off

( F )

-

-

-

-

Non-GAAP tax adjustments

( G ) + ( H )

(0.08)

(0.05)

(0.12)

(0.10)

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

$   0.29

$   0.28

$     0.55

$   0.56