GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
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Second Quarter of |
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First Two Quarters of |
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2018 |
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2017 |
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2018 |
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2017 |
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* As Adjusted |
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* As Adjusted |
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Dollar |
% of |
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Dollar |
% of |
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Dollar |
% of |
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Dollar |
% of |
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Amount |
Revenue |
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Amount |
Revenue |
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Amount |
Revenue |
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Amount |
Revenue |
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GROSS MARGIN: |
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GAAP gross margin: |
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$ 422.7 |
53.8 % |
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$ 342.6 |
51.9 % |
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$ 818.9 |
53.6 % |
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$ 666.9 |
52.5 % |
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Restructuring charges |
( A ) |
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0.6 |
0.1 % |
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0.5 |
0.1 % |
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0.4 |
0.1 % |
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1.0 |
0.1 % |
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Amortization of purchased intangible assets |
( B ) |
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23.9 |
3.0 % |
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20.5 |
3.1 % |
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47.0 |
3.1 % |
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39.5 |
3.1 % |
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Stock-based compensation |
( C ) |
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1.1 |
0.2 % |
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0.9 |
0.1 % |
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2.2 |
0.1 % |
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1.7 |
0.1 % |
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Amortization of acquisition-related inventory step-up |
( D ) |
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— |
—% |
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0.5 |
0.1 % |
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— |
—% |
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0.6 |
0.1 % |
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Acquisition / divestiture items |
( E ) |
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— |
—% |
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— |
—% |
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2.0 |
0.1 % |
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— |
—% |
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Non-GAAP gross margin: |
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$ 448.3 |
57.1 % |
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$ 365.0 |
55.3 % |
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$ 870.5 |
57.0 % |
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$ 709.7 |
55.9 % |
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OPERATING EXPENSES: |
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GAAP operating expenses: |
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$ 333.2 |
42.4 % |
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$ 283.6 |
43.0 % |
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$ 665.2 |
43.5 % |
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$ 553.2 |
43.6 % |
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Restructuring charges |
( A ) |
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(2.2) |
(0.3)% |
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(2.3) |
(0.3)% |
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(3.8) |
(0.2)% |
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(5.2) |
(0.4)% |
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Amortization of purchased intangible assets |
( B ) |
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(18.7) |
(2.4)% |
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(15.3) |
(2.3)% |
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(36.1) |
(2.4)% |
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(29.6) |
(2.3)% |
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Stock-based compensation |
( C ) |
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(15.8) |
(2.0)% |
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(14.3) |
(2.2)% |
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(32.1) |
(2.1)% |
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(27.2) |
(2.2)% |
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Acquisition / divestiture items |
( E ) |
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(8.1) |
(1.0)% |
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(4.3) |
(0.7)% |
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(22.1) |
(1.4)% |
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(6.4) |
(0.5)% |
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Non-GAAP operating expenses: |
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$ 288.4 |
36.7 % |
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$ 247.4 |
37.5 % |
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$ 571.1 |
37.4 % |
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$ 484.8 |
38.2 % |
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OPERATING INCOME: |
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GAAP operating income: |
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$ 89.5 |
11.4 % |
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$ 59.0 |
8.9 % |
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$ 153.7 |
10.1 % |
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$ 113.7 |
8.9 % |
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Restructuring charges |
( A ) |
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2.8 |
0.4 % |
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2.8 |
0.4 % |
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4.2 |
0.3 % |
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6.2 |
0.5 % |
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Amortization of purchased intangible assets |
( B ) |
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42.6 |
5.4 % |
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35.8 |
5.4 % |
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83.1 |
5.5 % |
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69.1 |
5.4 % |
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Stock-based compensation |
( C ) |
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16.9 |
2.2 % |
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15.2 |
2.3 % |
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34.3 |
2.2 % |
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28.9 |
2.3 % |
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Amortization of acquisition-related inventory step-up |
( D ) |
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— |
—% |
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0.5 |
0.1 % |
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— |
—% |
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0.6 |
0.1 % |
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Acquisition / divestiture items |
( E ) |
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8.1 |
1.0 % |
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4.3 |
0.7 % |
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24.1 |
1.5 % |
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6.4 |
0.5 % |
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Non-GAAP operating income: |
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$ 159.9 |
20.4 % |
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$ 117.6 |
17.8 % |
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$ 299.4 |
19.6 % |
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$ 224.9 |
17.7 % |
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NON-OPERATING INCOME (EXPENSE), NET: |
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GAAP non-operating income (expense), net: |
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$ (10.3) |
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$ 5.0 |
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$ (7.8) |
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$ 14.0 |
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Acquisition / divestiture items |
( E ) |
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0.7 |
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(0.8) |
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(2.1) |
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(8.9) |
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Debt issuance costs |
( F ) |
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6.7 |
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— |
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6.7 |
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— |
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Non-GAAP non-operating income (expense), net: |
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$ (2.9) |
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$ 4.2 |
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$ (3.2) |
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$ 5.1 |
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GAAP and |
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GAAP and |
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GAAP and |
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GAAP and |
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Non-GAAP |
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Non-GAAP |
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Non-GAAP |
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Non-GAAP |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
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Tax Rate % |
( I ) |
INCOME TAX PROVISION: |
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GAAP income tax provision: |
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$ 15.1 |
19 % |
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$ 16.7 |
26 % |
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$ 23.1 |
16 % |
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$ 30.6 |
24 % |
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Non-GAAP items tax effected |
( G ) |
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14.8 |
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15.0 |
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23.5 |
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24.8 |
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Difference in GAAP and Non-GAAP tax rate |
( H ) |
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(0.1) |
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(3.7) |
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9.7 |
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(2.5) |
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Non-GAAP income tax provision: |
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$ 29.8 |
19 % |
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$ 28.0 |
23 % |
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$ 56.3 |
19 % |
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$ 52.9 |
23 % |
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NET INCOME: |
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GAAP net income attributable to Trimble Inc.: |
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$ 64.1 |
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$ 47.3 |
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$ 122.6 |
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$ 97.1 |
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Restructuring charges |
( A ) |
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2.8 |
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2.8 |
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4.2 |
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6.2 |
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Amortization of purchased intangible assets |
( B ) |
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42.6 |
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35.8 |
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83.1 |
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69.1 |
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Stock-based compensation |
( C ) |
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16.9 |
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15.2 |
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34.3 |
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28.9 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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— |
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0.5 |
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— |
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0.6 |
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Acquisition / divestiture items |
( E ) |
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8.8 |
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3.5 |
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22.0 |
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(2.5) |
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Debt issuance costs |
( F ) |
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6.7 |
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— |
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6.7 |
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— |
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Non-GAAP tax adjustments |
( G ) + ( H ) |
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(14.7) |
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(11.3) |
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(33.2) |
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(22.3) |
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Non-GAAP net income attributable to Trimble Inc.: |
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$ 127.2 |
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$ 93.8 |
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$ 239.7 |
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$ 177.1 |
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DILUTED NET INCOME PER SHARE: |
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GAAP diluted net income per share attributable to Trimble Inc.: |
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$ 0.25 |
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$ 0.18 |
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$ 0.49 |
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$ 0.38 |
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Restructuring charges |
( A ) |
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0.01 |
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0.01 |
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0.02 |
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0.03 |
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Amortization of purchased intangible assets |
( B ) |
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0.17 |
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0.14 |
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0.33 |
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0.27 |
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Stock-based compensation |
( C ) |
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0.07 |
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0.06 |
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0.13 |
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0.11 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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— |
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— |
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— |
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— |
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Acquisition / divestiture items |
( E ) |
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0.03 |
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0.01 |
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0.09 |
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(0.01) |
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Debt issuance costs |
( F ) |
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0.03 |
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— |
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0.02 |
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— |
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Non-GAAP tax adjustments |
( G ) + ( H ) |
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(0.06) |
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(0.04) |
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(0.13) |
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(0.09) |
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Non-GAAP diluted net income per share attributable to Trimble Inc.: |
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$ 0.50 |
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$ 0.36 |
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$ 0.95 |
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$ 0.69 |
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* Prior-period information has been restated for the adoption of ASC 606, Revenue from Contracts with Customers. |