GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Fourth Quarter of

Fiscal Years

2015

2014

2015

2014

Dollar

% of

Dollar

% of

 Dollar 

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

 Amount 

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$  293.1

52.4%

$  292.5

51.9%

$  1,202.2

52.5%

$  1,290.8

53.9%

Restructuring charges

( A )

0.6

0.1%

0.1

0.0%

1.4

0.1%

0.4

0.0%

Amortization of purchased intangible assets

( B )

23.8

4.2%

21.9

3.9%

92.6

4.0%

82.9

3.5%

Stock-based compensation

( C )

1.0

0.2%

0.9

0.2%

3.9

0.2%

3.2

0.1%

Amortization of acquisition-related inventory step-up

( D )

-

0.0%

0.2

0.0%

-

0.0%

0.8

0.0%

Non-GAAP gross margin: 

$  318.5

56.9%

$  315.6

56.0%

$  1,300.1

56.8%

$  1,378.1

57.5%

OPERATING EXPENSES:

GAAP operating expenses:

$  260.2

46.5%

$  215.7

38.3%

$  1,047.8

45.7%

$  1,030.0

43.0%

Restructuring charges

( A )

(2.4)

-0.4%

(0.4)

-0.1%

(11.4)

-0.5%

(1.7)

-0.1%

Amortization of purchased intangible assets

( B )

(16.4)

-2.9%

(18.8)

-3.3%

(69.8)

-3.1%

(75.6)

-3.2%

Stock-based compensation

( C )

(11.8)

-2.1%

(10.4)

-1.9%

(46.2)

-2.0%

(40.2)

-1.7%

Acquisition / divestiture items

( E )

(1.9)

-0.4%

(6.0)

-1.1%

(9.9)

-0.4%

(13.5)

-0.5%

Litigation

( F )

(0.3)

-0.1%

51.3

9.1%

(0.3)

0.0%

(0.7)

0.0%

Non-GAAP operating expenses:

$  227.4

40.6%

$  231.4

41.0%

$    910.2

39.7%

$    898.3

37.5%

OPERATING INCOME:

GAAP operating income:

$   32.9

5.9%

$   76.8

13.6%

$    154.4

6.7%

$    260.8

10.9%

Restructuring charges

( A )

3.0

0.5%

0.5

0.1%

12.8

0.6%

2.1

0.1%

Amortization of purchased intangible assets

( B )

40.2

7.2%

40.7

7.2%

162.4

7.1%

158.5

6.6%

Stock-based compensation

( C )

12.8

2.3%

11.3

2.0%

50.1

2.2%

43.4

1.8%

Amortization of acquisition-related inventory step-up

( D )

-

0.0%

0.2

0.0%

-

0.0%

0.8

0.0%

Acquisition / divestiture items

( E )

1.9

0.3%

6.0

1.1%

9.9

0.4%

13.5

0.6%

Litigation

( F )

0.3

0.1%

(51.3)

-9.1%

0.3

0.0%

0.7

0.0%

Non-GAAP operating income: 

$   91.1

16.3%

$   84.2

14.9%

$    389.9

17.0%

$    479.8

20.0%

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$    (4.6)

$    (5.2)

$       (2.6)

$        5.2

Acquisition / divestiture items

( E )

1.9

(3.1)

(3.9)

2.9

Gain on an equity sale

( G )

-

-

-

(15.1)

Debt issuance cost write-off

( H )

-

4.2

-

4.2

Non-GAAP non-operating expense, net: 

$    (2.7)

$    (4.1)

$       (6.5)

$       (2.8)

GAAP and 

GAAP and 

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Non-GAAP

Non-GAAP

Tax Rate %

( M )

Tax Rate %

( M )

Tax Rate %

( M )

Tax Rate %

( M )

INCOME TAX PROVISION:

GAAP income tax provision:

$     4.4

16%

$   15.7

22%

$      31.1

20%

$      52.1

20%

Non-GAAP items tax effected 

( I )

9.3

8.0

47.1

44.3

Difference in GAAP and Non-GAAP tax rate

( J )

7.5

-

13.8

-

Tax on gain on an equity sale

( K )

-

-

-

(5.8)

Tax on RDS litigation

( L )

-

(19.8)

-

-

Non-GAAP income tax provision: 

$   21.2

24%

$     3.9

5%

$      92.0

24%

$      90.6

19%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Ltd.

$   24.0

$   55.8

$    121.1

$    214.1

Restructuring charges

( A )

3.0

0.5

12.8

2.1

Amortization of purchased intangible assets

( B )

40.2

40.7

162.4

158.5

Stock-based compensation

( C )

12.8

11.3

50.1

43.4

Amortization of acquisition-related inventory step-up

( D )

-

0.2

-

0.8

Acquisition / divestiture items

( E )

3.8

2.9

6.0

16.4

Litigation

( F )

0.3

(51.3)

0.3

0.7

Gain on an equity sale

( G )

-

-

-

(15.1)

Debt issuance cost write-off

( H )

-

4.2

-

4.2

Non-GAAP tax adjustments

( I ) - ( L )

(16.8)

11.8

(60.9)

(38.5)

Non-GAAP net income attributable to Trimble Navigation Ltd.

$   67.3

$   76.1

$    291.8

$    386.6

DILUTED NET INCOME PER SHARE:

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

$   0.09

$   0.21

$      0.47

$      0.81

Restructuring charges

( A )

0.01

-

0.05

0.01

Amortization of purchased intangible assets

( B )

0.16

0.16

0.63

0.60

Stock-based compensation

( C )

0.05

0.04

0.19

0.16

Amortization of acquisition-related inventory step-up

( D )

-

-

-

-

Acquisition / divestiture items

( E )

0.02

0.01

0.02

0.06

Litigation

( F )

-

(0.20)

-

-

Gain on an equity sale

( G )

-

-

-

(0.06)

Debt issuance cost write-off

( H )

-

0.02

-

0.02

Non-GAAP tax adjustments

( I ) - ( L )

(0.06)

0.05

(0.23)

(0.14)

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

$   0.27

$   0.29

$      1.13

$      1.46

OPERATING LEVERAGE:

Increase (decrease) in non-GAAP operating income

$     6.9

$  (40.8)

$     (89.9)

$        5.9

Increase (decrease) in revenue

$    (4.1)

$  (35.4)

$   (105.1)

$    107.4

Operating leverage (increase in non-GAAP operating 

income as a % of increase in revenue)

N/A

N/A

N/A

5.5%