GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Fourth Quarter of

Fiscal Years

2020

2019

2020

2019

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$

829.7

$

824.0

$

3,147.7

$

3,264.3

Acquired deferred revenue
adjustment

(A)

0.3

2.7

4.3

7.0

Non-GAAP revenue:

$

830.0

$

826.7

$

3,152.0

$

3,271.3

GROSS MARGIN:

GAAP gross margin:

$

468.5

56.5

%

$

460.0

55.8

%

$

1,754.9

55.8

%

$

1,780.9

54.6

%

Acquired deferred revenue
adjustment

(A)

0.3

2.7

4.3

7.0

Amortization of purchased
intangible assets

(C)

22.3

22.8

92.3

94.1

Acquisition / divestiture items

(D)

—

—

1.7

—

Stock-based compensation /
deferred compensation

(E)

2.0

1.5

7.2

5.9

Restructuring charges

(F)

0.1

0.9

0.8

1.1

COVID-19 expenses

(G)

0.1

—

0.4

—

Non-GAAP gross margin:

$

493.3

59.4

%

$

487.9

59.0

%

$

1,861.6

59.1

%

$

1,889.0

57.7

%

OPERATING EXPENSES:

GAAP operating expenses:

$

346.6

41.8

%

$

371.8

45.1

%

$

1,335.1

42.4

%

$

1,405.0

43.0

%

Amortization of acquired
capitalized commissions

(B)

1.3

1.5

5.5

6.3

Amortization of purchased
intangible assets

(C)

(15.3)

(16.4)

(65.5)

(73.7)

Acquisition / divestiture items

(D)

(5.0)

(9.0)

(19.7)

(20.5)

Stock-based compensation /
deferred compensation

(E)

(26.5)

(23.8)

(83.2)

(75.3)

Restructuring charges /
executive transition costs

(F)

(6.2)

(16.8)

(27.4)

(26.8)

COVID-19 expenses

(G)

1.7

—

(2.8)

—

Non-GAAP operating expenses:

$

296.6

35.7

%

$

307.3

37.2

%

$

1,142.0

36.2

%

$

1,215.0

37.1

%

OPERATING INCOME:

GAAP operating income:

$

121.9

14.7

%

$

88.2

10.7

%

$

419.8

13.3

%

$

375.9

11.5

%

Acquired deferred revenue
adjustment

(A)

0.3

2.7

4.3

7.0

Amortization of acquired
capitalized commissions

(B)

(1.3)

(1.5)

(5.5)

(6.3)

Amortization of purchased
intangible assets

(C)

37.6

39.2

157.8

167.8

Acquisition / divestiture items

(D)

5.0

9.0

21.4

20.5

Stock-based compensation /
deferred compensation

(E)

28.5

25.3

90.4

81.2

Restructuring charges / executive
transition costs

(F)

6.3

17.7

28.2

27.9

COVID-19 expenses

(G)

(1.6)

—

3.2

—

Non-GAAP operating income:

$

196.7

23.7

%

$

180.6

21.8

%

$

719.6

22.8

%

$

674.0

20.6

%

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income
(expense), net:

$

6.4

$

(12.9)

$

(24.8)

$

(31.1)

Acquisition / divestiture items

(D)

(14.7)

0.4

(12.2)

(12.1)

Deferred compensation

(E)

(2.7)

(2.5)

(7.5)

(6.3)

Non-GAAP non-operating expense,
net:

$

(11.0)

$

(15.0)

$

(44.5)

$

(49.5)

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

(K)

(K)

(K)

(K)

INCOME TAX (BENEFIT) PROVISION:

GAAP income tax (benefit) provision:

$

(52.4)

(40.8)

%

$

(204.1)

(271.0)

%

$

4.4

1.1

%

$

(169.7)

(49.2)

%

Non-GAAP items tax effected

(H)

2.3

8.2

48.5

29.6

Difference in GAAP and Non-
GAAP tax rate

(I)

15.8

21.1

(4.9)

55.6

IP restructuring and tax law
change impacts

(J)

64.0

206.3

64.0

206.3

Non-GAAP income tax provision:

$

29.7

16.0

%

$

31.5

19.0

%

$

112.0

16.6

%

$

121.8

19.5

%

NET INCOME:

GAAP net income attributable to
Trimble Inc.:

$

180.3

$

279.3

$

389.9

$

514.3

Acquired deferred revenue
adjustment

(A)

0.3

2.7

4.3

7.0

Amortization of acquired
capitalized commissions

(B)

(1.3)

(1.5)

(5.5)

(6.3)

Amortization of purchased
intangible assets

(C)

37.6

39.2

157.8

167.8

Acquisition / divestiture items

(D)

(9.7)

9.4

9.2

8.4

Stock-based compensation /
deferred compensation

(E)

25.8

22.8

82.9

74.9

Restructuring charges / executive
transition costs

(F)

6.3

17.7

28.2

27.9

COVID-19 expenses

(G)

(1.6)

—

3.2

—

Non-GAAP tax adjustments

(H) - (J)

(82.1)

(235.6)

(107.6)

(291.5)

Non-GAAP net income attributable
to Trimble Inc.:

$

155.6

$

134.0

$

562.4

$

502.5

DILUTED NET INCOME PER SHARE:

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

$

0.71

$

1.11

$

1.55

$

2.03

Acquired deferred revenue
adjustment

(A)

—

0.01

0.02

0.03

Amortization of acquired
capitalized commissions

(B)

—

(0.01)

(0.02)

(0.02)

Amortization of purchased
intangible assets

(C)

0.15

0.16

0.62

0.66

Acquisition / divestiture items

(D)

(0.04)

0.04

0.04

0.03

Stock-based compensation /
deferred compensation

(E)

0.10

0.09

0.33

0.30

Restructuring charges / executive
transition costs

(F)

0.02

0.07

0.11

0.11

COVID-19 expenses

(G)

(0.01)

—

0.01

—

Non-GAAP tax adjustments

(H) - (J)

(0.32)

(0.94)

(0.43)

(1.15)

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

$

0.61

$

0.53

$

2.23

$

1.99

ADJUSTED EBITDA:

GAAP net income attributable to
Trimble Inc.:

$

180.3

$

279.3

$

389.9

$

514.3

Non-operating income (expense),
net, income tax provision
(benefit), and net gain
attributable to noncontrolling
interests

(58.4)

(191.1)

29.9

(138.4)

GAAP operating income:

121.9

88.2

419.8

375.9

Acquired deferred revenue
adjustment

(A)

0.3

2.7

4.3

7.0

Amortization of acquired
capitalized commissions

(B)

(1.3)

(1.5)

(5.5)

(6.3)

Amortization of purchased
intangible assets

(C)

37.6

39.2

157.8

167.8

Acquisition / divestiture items

(D)

5.0

9.0

21.4

20.5

Stock-based compensation /
deferred compensation

(E)

28.5

25.3

90.4

81.2

Restructuring charges / executive
transition costs

(F)

6.3

17.7

28.2

27.9

COVID-19 expenses

(G)

(1.6)

—

3.2

—

Non-GAAP operating income:

196.7

180.6

719.6

674.0

Depreciation expense

10.3

9.7

39.7

39.4

Income from equity method
investments, net

9.5

5.3

39.4

35.8

Adjusted EBITDA:

$

216.5

$

195.6

$

798.7

$

749.2

Fiscal Year 2021

Low End

High End

FORECASTED DILUTED NET INCOME PER SHARE:

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

$

1.31

$

1.54

Acquired deferred revenue
adjustment

(A)

—

—

Amortization of acquired
capitalized commissions

(B)

(0.02)

(0.02)

Amortization of purchased
intangible assets

(C)

0.55

0.55

Acquisition / divestiture items

(D)

0.06

0.06

Stock-based compensation /
deferred compensation

(E)

0.36

0.36

Restructuring charges / executive
transition costs

(F)

0.05

0.05

Non-GAAP tax adjustments

(H) - (J)

(0.06)

(0.09)

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

$

2.25

$

2.45