CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2019

2018

2019

2018

Revenue:

Product

$

521.1

$

531.0

$

1,009.5

$

1,028.8

Service

174.6

136.1

333.8

264.9

Subscription

159.1

118.4

313.1

234.0

Total revenue

854.8

785.5

1,656.4

1,527.7

Cost of sales:

Product

257.0

250.2

487.7

485.6

Service

69.3

59.6

133.3

119.2

Subscription

44.1

29.1

88.5

57.0

Amortization of purchased intangible assets

23.8

23.9

48.0

47.0

Total cost of sales

394.2

362.8

757.5

708.8

Gross margin

460.6

422.7

898.9

818.9

Gross margin (%)

53.9

%

53.8

%

54.3

%

53.6

%

Operating expense:

Research and development

119.6

110.1

237.8

219.4

Sales and marketing

128.8

112.8

256.2

234.9

General and administrative

79.9

89.4

162.7

171.0

Restructuring charges

2.9

2.2

6.4

3.8

Amortization of purchased intangible assets

19.7

18.7

39.8

36.1

Total operating expense

350.9

333.2

702.9

665.2

Operating income

109.7

89.5

196.0

153.7

Non-operating income (expense), net:

Interest expense, net

(20.6)

(18.6)

(42.5)

(28.1)

Foreign currency transaction gain (loss), net

(1.0)

(3.0)

(1.9)

0.7

Income from equity method investments, net

12.9

9.5

21.7

14.4

Other income, net

14.4

1.8

17.3

5.2

Total non-operating income (expense), net

5.7

(10.3)

(5.4)

(7.8)

Income before taxes

115.4

79.2

190.6

145.9

Income tax provision

20.8

15.1

33.6

23.1

Net income

94.6

64.1

157.0

122.8

Net gain attributable to noncontrolling interests

—

—

0.1

0.2

Net income attributable to Trimble Inc.

$

94.6

$

64.1

$

156.9

$

122.6

Earnings per share attributable to Trimble Inc.:

Basic

$

0.38

$

0.26

$

0.62

$

0.49

Diluted

$

0.37

$

0.25

$

0.62

$

0.49

Shares used in calculating diluted earnings per share:

Basic

251.7

249.5

251.6

249.1

Diluted

254.0

252.2

254.0

252.7