GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Fourth Quarter of

Years

2021

2020

2021

2020

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

REVENUE:

GAAP revenue:

$    926.0

$    829.7

$ 3,659.1

$ 3,147.7

Purchase accounting adjustments

(A)

—

0.3

0.3

4.3

Non-GAAP revenue:

$    926.0

$    830.0

$ 3,659.4

$ 3,152.0

GROSS MARGIN:

GAAP gross margin:

$    511.5

55.2  %

$    468.5

56.5  %

$ 2,034.7

55.6  %

$ 1,754.9

55.8  %

Purchase accounting adjustments

(A)

21.6

22.6

88.0

96.6

Acquisition / divestiture items

(B)

—

—

—

1.7

Stock-based compensation / deferred compensation

(C)

2.5

2.0

9.8

7.2

Restructuring and other costs

(D)

—

0.2

0.2

1.2

Non-GAAP gross margin:

$    535.6

57.8  %

$    493.3

59.4  %

$ 2,132.7

58.3  %

$ 1,861.6

59.1  %

OPERATING EXPENSES:

GAAP operating expenses:

$    383.7

41.4  %

$    346.6

41.8  %

$ 1,473.7

40.3  %

$ 1,335.1

42.4  %

Purchase accounting adjustments

(A)

(10.9)

(14.0)

(46.5)

(60.0)

Acquisition / divestiture items

(B)

(11.5)

(5.0)

(21.8)

(19.7)

Stock-based compensation / deferred compensation

(C)

(27.0)

(26.5)

(118.8)

(83.2)

Restructuring and other costs

(D)

(3.2)

(4.5)

(10.9)

(30.2)

Non-GAAP operating expenses:

$    331.1

35.8  %

$    296.6

35.7  %

$ 1,275.7

34.9  %

$ 1,142.0

36.2  %

OPERATING INCOME:

GAAP operating income:

$    127.8

13.8  %

$    121.9

14.7  %

$    561.0

15.3  %

$    419.8

13.3  %

Purchase accounting adjustments

(A)

32.5

36.6

134.5

156.6

Acquisition / divestiture items

(B)

11.5

5.0

21.8

21.4

Stock-based compensation / deferred compensation

(C)

29.5

28.5

128.6

90.4

Restructuring and other costs

(D)

3.2

4.7

11.1

31.4

Non-GAAP operating income:

$    204.5

22.1  %

$    196.7

23.7  %

$    857.0

23.4  %

$    719.6

22.8  %

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$      (9.7)

$       6.4

$     13.6

$    (24.8)

Acquisition / divestiture items

(B)

(0.3)

(14.7)

(42.1)

(12.2)

Deferred compensation

(C)

(2.1)

(2.7)

(6.1)

(7.5)

Non-GAAP non-operating expense, net:

$    (12.1)

$    (11.0)

$    (34.6)

$    (44.5)

GAAP
and
Non-GAAP
Tax Rate %

GAAP
and
Non-GAAP
Tax Rate %

GAAP
and
Non-GAAP
Tax Rate %

GAAP
and
Non-GAAP
Tax Rate %

(H)

(H)

(H)

(H)

INCOME TAX (BENEFIT) PROVISION:

GAAP income tax (benefit) provision:

$       2.8

2.4     %

$    (52.4)

$     81.8

14.2  %

$       4.4

1.1     %

Non-GAAP items tax effected

(E)

11.8

2.3

41.4

48.5

Difference in GAAP and Non-GAAP tax rate

(F)

5.6

15.8

7.5

(4.9)

IP restructuring and tax law change impacts

(G)

14.4

64.0

14.4

64.0

Non-GAAP income tax provision:

$     34.6

18.0  %

$     29.7

16.0  %

$    145.1

17.6  %

$    112.0

16.6  %

NET INCOME:

GAAP net income attributable to Trimble Inc.:

$    115.3

$    180.3

$    492.7

$    389.9

Purchase accounting adjustments

(A)

32.5

36.6

134.5

156.6

Acquisition / divestiture items

(B)

11.2

(9.7)

(20.3)

9.2

Stock-based compensation / deferred compensation

(C)

27.4

25.8

122.5

82.9

Restructuring and other costs

(D)

3.2

4.7

11.1

31.4

Non-GAAP tax adjustments

(E) - (G)

(31.8)

(82.1)

(63.3)

(107.6)

Non-GAAP net income attributable to Trimble Inc.:

$    157.8

$    155.6

$    677.2

$    562.4

DILUTED NET INCOME PER SHARE:

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

$     0.45

$     0.71

$     1.94

$     1.55

Purchase accounting adjustments

(A)

0.13

0.15

0.53

0.62

Acquisition / divestiture items

(B)

0.04

(0.04)

(0.08)

0.04

Stock-based compensation / deferred compensation

(C)

0.11

0.10

0.48

0.33

Restructuring and other costs

(D)

0.01

0.01

0.04

0.12

Non-GAAP tax adjustments

(E) - (G)

(0.12)

(0.32)

(0.25)

(0.43)

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

$     0.62

$     0.61

$     2.66

$     2.23

ADJUSTED EBITDA:

GAAP net income attributable to Trimble Inc.:

$    115.3

$    180.3

$    492.7

$    389.9

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

12.5

(58.4)

68.3

29.9

GAAP operating income:

127.8

121.9

561.0

419.8

Purchase accounting adjustments

(A)

32.5

36.6

134.5

156.6

Acquisition / divestiture items

(B)

11.5

5.0

21.8

21.4

Stock-based compensation / deferred compensation

(C)

29.5

28.5

128.6

90.4

Restructuring and other costs

(D)

3.2

4.7

11.1

31.4

Non-GAAP operating income:

204.5

196.7

857.0

719.6

Depreciation expense

11.0

10.3

42.2

39.7

Income from equity method investments, net

7.4

9.5

37.7

39.4

Adjusted EBITDA:

$    222.9

24.1  %

$    216.5

26.1  %

$    936.9

25.6  %

$    798.7

25.3  %

Year 2022

Low End

High End

FORECASTED DILUTED NET INCOME PER SHARE:

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

$     1.80

$      1.99

Purchase accounting adjustments

(A)

0.49

0.49

Acquisition / divestiture items

(B)

0.06

0.06

Stock-based compensation / deferred compensation

(C)

0.50

0.50

Restructuring and other costs

(D)

0.02

0.02

Non-GAAP tax adjustments

(E) - (G)

(0.12)

(0.11)

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

$     2.75

$      2.95