GAAP TO NON-GAAP RECONCILIATION

(Dollars in thousands, except per share data)

(Unaudited)

Fourth Quarter of

Fiscal Years

2013

2012

2013

2012

Dollar

% of

Dollar

% of

Dollar

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

Amount

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$   319,454

53.3%

$   256,464

49.7%

$   1,203,822

52.6%

$ 1,046,177

51.3%

Restructuring

( A )

31

0.0%

17

0.0%

860

0.0%

156

0.0%

Amortization of purchased intangible assets

( B )

21,181

3.6%

18,132

3.5%

81,119

3.6%

60,277

3.0%

Stock-based compensation

( C )

757

0.1%

525

0.1%

2,573

0.1%

2,005

0.1%

Amortization of acquisition-related inventory step-up

( D )

-

0.0%

1,680

0.4%

1,505

0.1%

2,357

0.1%

Non-GAAP gross margin: 

$   341,423

57.0%

$   276,818

53.7%

$   1,289,879

56.4%

$ 1,110,972

54.5%

OPERATING EXPENSES:

GAAP operating expenses:

$   252,108

42.1%

$   226,135

43.9%

$     952,085

41.6%

$    833,609

40.9%

Restructuring

( A )

(1,358)

-0.2%

(333)

-0.1%

(5,960)

-0.3%

(2,227)

-0.1%

Amortization of purchased intangible assets

( B )

(20,947)

-3.5%

(18,260)

-3.5%

(81,722)

-3.5%

(65,430)

-3.2%

Stock-based compensation

( C )

(9,527)

-1.6%

(8,507)

-1.7%

(33,869)

-1.4%

(30,655)

-1.5%

Acquisition / divestiture items

( E )

(3,910)

-0.7%

(7,277)

-1.4%

(13,195)

-0.6%

(21,662)

-1.1%

Litigation

( H )

-

0.0%

-

0.0%

(1,335)

-0.1%

-

0.0%

Non-GAAP operating expenses:

$   216,366

36.1%

$   191,758

37.2%

$     816,004

35.7%

$    713,635

35.0%

OPERATING INCOME:

GAAP operating income:

$    67,346

11.2%

$     30,329

5.9%

$     251,737

11.0%

$    212,568

10.4%

Restructuring

( A )

1,389

0.2%

350

0.0%

6,820

0.3%

2,383

0.1%

Amortization of purchased intangible assets

( B )

42,128

7.0%

36,392

7.1%

162,841

7.1%

125,707

6.2%

Stock-based compensation

( C )

10,284

1.7%

9,032

1.8%

36,442

1.5%

32,660

1.6%

Amortization of acquisition-related inventory step-up

( D )

-

0.0%

1,680

0.3%

1,505

0.1%

2,357

0.1%

Acquisition / divestiture items

( E )

3,910

0.8%

7,277

1.4%

13,195

0.6%

21,662

1.1%

Litigation

( H )

-

0.0%

-

0.0%

1,335

0.1%

-

0.0%

Non-GAAP operating income: 

$   125,057

20.9%

$     85,060

16.5%

$     473,875

20.7%

$    397,337

19.5%

NON-OPERATING INCOME, NET:

GAAP non-operating income (loss), net:

$     (1,054)

$      8,655

$         1,127

$      16,856

Acquisition / divestiture items

( E )

2,276

(6,810)

1,430

(7,257)

Debt issuance cost write-off

( F )

-

82

-

82

Foreign exchange loss associated with acquisitions

( G )

-

-

-

1,578

Non-GAAP non-operating income, net: 

$      1,222

$      1,927

$         2,557

$      11,259

GAAP and 

GAAP and 

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Non-GAAP

Non-GAAP

Tax Rate %

( J )

Tax Rate %

( J )

Tax Rate %

( J )

Tax Rate %

( J )

INCOME TAX PROVISION:

GAAP income tax provision:

$      6,631

10%

$      6,305

16%

$       34,698

14%

$      39,708

17%

Non-GAAP items tax effected

( I )

6,001

7,762

30,064

30,635

Non-GAAP income tax provision: 

$    12,632

10%

$     14,067

16%

$       64,762

14%

$      70,343

17%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Ltd.

$    59,997

$     33,186

$     218,855

$    191,060

Restructuring

( A )

1,389

350

6,820

2,383

Amortization of purchased intangible assets

( B )

42,128

36,392

162,841

125,707

Stock-based compensation

( C )

10,284

9,032

36,442

32,660

Amortization of acquisition-related inventory step-up

( D )

-

1,680

1,505

2,357

Acquisition / divestiture items

( E )

6,186

467

14,625

14,405

Debt issuance cost write-off

( F )

-

82

-

82

Foreign exchange loss associated with acquisitions

( G )

-

-

-

1,578

Litigation

( H )

-

-

1,335

-

Non-GAAP items tax affected

( I )

(6,001)

(7,762)

(30,064)

(30,635)

Non-GAAP net income attributable to Trimble Navigation Ltd.

$   113,983

$     73,427

$     412,359

$    339,597

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share attributable to Trimble Navigation Ltd.

$        0.23

$        0.13

$           0.84

$         0.74

Restructuring

( A )

-

-

0.03

0.01

Amortization of purchased intangible assets

( B )

0.16

0.14

0.62

0.49

Stock-based compensation

( C )

0.04

0.03

0.14

0.13

Amortization of acquisition-related inventory step-up

( D )

-

0.01

-

0.01

Acquisition / divestiture items

( E )

0.02

-

0.06

0.05

Debt issuance cost write-off

( F )

-

-

-

-

Foreign exchange loss associated with acquisitions

( G )

-

-

-

0.01

Litigation

( H )

-

-

0.01

-

Non-GAAP items tax affected

( I )

(0.02)

(0.03)

(0.12)

(0.12)

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

$        0.43

$        0.28

$           1.58

$         1.32

OPERATING LEVERAGE:

Increase in non-GAAP operating income

$    39,997

$     16,275

$       76,538

$    105,134

Increase in revenue

$    83,695

$     80,353

$     248,011

$    396,048

Operating leverage (increase in non-GAAP operating income as a % of increase in revenue)

47.8%

20.3%

30.9%

26.5%