GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Fourth Quarter of

Fiscal Years

2019

2018

2019

2018

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$

824.0

$

785.5

$

3,264.3

$

3,108.4

Acquired deferred revenue adjustment

(A)

2.7

7.4

7.0

23.6

Non-GAAP revenue:

$

826.7

$

792.9

$

3,271.3

$

3,132.0

GROSS MARGIN:

GAAP gross margin:

$

460.0

55.8

%

$

435.2

55.4

%

$

1,780.9

54.6

%

$

1,681.0

54.1

%

Acquired deferred revenue adjustment

(A)

2.7

7.4

7.0

23.6

Restructuring charges

(B)

0.9

—

1.1

0.5

Amortization of purchased intangible assets

(C)

22.8

28.0

94.1

103.2

Stock-based compensation

(D)

1.4

1.2

5.6

4.5

Amortization of acquisition-related inventory step-up

(E)

—

0.2

—

0.2

Acquisition / divestiture items

(F)

—

—

—

2.0

Non-GAAP gross margin:

$

487.8

59.0

%

$

472.0

59.5

%

$

1,888.7

57.7

%

$

1,815.0

58.0

%

OPERATING EXPENSES:

GAAP operating expenses:

$

371.8

45.1

%

$

345.6

44.0

%

$

1,405.0

43.0

%

$

1,360.3

43.8

%

Restructuring charges

(B)

(16.8)

(1.9)

(26.8)

(8.2)

Amortization of purchased intangible assets

(C)

(16.4)

(18.7)

(73.7)

(76.4)

Stock-based compensation

(D)

(21.5)

(22.6)

(69.4)

(72.4)

Acquisition / divestiture items

(F)

(9.0)

(4.1)

(20.5)

(36.9)

Amortization of acquired capitalized commissions

(G)

1.5

1.8

6.3

4.7

Non-GAAP operating expenses:

$

309.6

37.5

%

$

300.1

37.8

%

$

1,220.9

37.3

%

$

1,171.1

37.4

%

OPERATING INCOME:

GAAP operating income:

$

88.2

10.7

%

$

89.6

11.4

%

$

375.9

11.5

%

$

320.7

10.3

%

Acquired deferred revenue adjustment

(A)

2.7

7.4

7.0

23.6

Restructuring charges

(B)

17.7

1.9

27.9

8.7

Amortization of purchased intangible assets

(C)

39.2

46.7

167.8

179.6

Stock-based compensation

(D)

22.9

23.8

75.0

76.9

Amortization of acquisition-related inventory step-up

(E)

—

0.2

—

0.2

Acquisition / divestiture items

(F)

9.0

4.1

20.5

38.9

Amortization of acquired capitalized commissions

(G)

(1.5)

(1.8)

(6.3)

(4.7)

Non-GAAP operating income:

$

178.2

21.6

%

$

171.9

21.7

%

$

667.8

20.4

%

$

643.9

20.6

%

NON-OPERATING EXPENSE, NET:

GAAP non-operating expense, net:

$

(12.9)

$

(21.6)

$

(31.1)

$

(42.7)

Acquisition / divestiture items

(F)

0.4

1.0

(12.1)

(0.3)

Debt issuance costs

(H)

—

—

—

6.7

Non-GAAP non-operating expense, net:

$

(12.5)

$

(20.6)

$

(43.2)

$

(36.3)

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

(N)

(N)

(N)

(N)

INCOME TAX PROVISION (BENEFIT):

GAAP income tax benefit:

$

(204.1)

(271)

%

$

(18.8)

(28)

%

$

(169.7)

(49)

%

$

(5.3)

(2)

%

Non-GAAP items tax effected

(I)

7.1

11.0

41.1

47.8

Difference in GAAP and Non-GAAP tax rate

(J)

22.2

9.3

30.1

27.3

Tax reform impacts

(K)

—

17.7

—

21.3

Reserve release upon statute of limitations expiration

(L)

—

9.5

14.0

24.3

IP restructuring impacts

(M)

206.3

—

206.3

—

Non-GAAP income tax provision:

$

31.5

19

%

$

28.7

19

%

$

121.8

20

%

$

115.4

19

%

NET INCOME:

GAAP net income attributable to Trimble Inc.:

$

279.3

$

86.5

$

514.3

$

282.8

Acquired deferred revenue adjustment

(A)

2.7

7.4

7.0

23.6

Restructuring charges

(B)

17.7

1.9

27.9

8.7

Amortization of purchased intangible assets

(C)

39.2

46.7

167.8

179.6

Stock-based compensation

(D)

22.9

23.8

75.0

76.9

Amortization of acquisition-related inventory step-up

(E)

—

0.2

—

0.2

Acquisition / divestiture items

(F)

9.4

5.1

8.4

38.6

Amortization of acquired capitalized commissions

(G)

(1.5)

(1.8)

(6.3)

(4.7)

Debt issuance costs

(H)

—

—

—

6.7

Non-GAAP tax adjustments

(I) - (M)

(235.6)

(47.5)

(291.5)

(120.7)

Non-GAAP net income attributable to Trimble Inc.:

$

134.1

$

122.3

$

502.6

$

491.7

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share attributable to Trimble Inc.:

$

1.11

$

0.34

$

2.03

$

1.12

Acquired deferred revenue adjustment

(A)

0.01

0.03

0.03

0.09

Restructuring charges

(B)

0.07

0.01

0.11

0.04

Amortization of purchased intangible assets

(C)

0.16

0.18

0.66

0.71

Stock-based compensation

(D)

0.09

0.10

0.30

0.30

Amortization of acquisition-related inventory step-up

(E)

—

—

—

—

Acquisition / divestiture items

(F)

0.04

0.02

0.03

0.15

Amortization of acquired capitalized commissions

(G)

(0.01)

(0.01)

(0.02)

(0.02)

Debt issuance costs

(H)

—

—

—

0.03

Non-GAAP tax adjustments

(I) - (M)

(0.94)

(0.19)

(1.15)

(0.48)

Non-GAAP diluted net income per share attributable to Trimble Inc.:

$

0.53

$

0.48

$

1.99

$

1.94

First Quarter of 2020

Low End

High End

FORECASTED DILUTED NET INCOME PER SHARE:

Forecasted GAAP diluted net income per share attributable to Trimble Inc.:

$

0.14

$

0.18

Acquired deferred revenue adjustment

(A)

0.01

0.01

Restructuring charges

(B)

0.06

0.06

Amortization of purchased intangible assets

(C)

0.15

0.15

Stock-based compensation

(D)

0.10

0.10

Acquisition / divestiture items

(F)

0.01

0.01

Amortization of acquired capitalized commissions

(G)

(0.01)

(0.01)

Non-GAAP tax adjustments

(I) - (M)

(0.06)

(0.05)

Forecasted non-GAAP diluted net income per share attributable to Trimble Inc.:

$

0.40

$

0.45