GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
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| Second Quarter of |
| First Two Quarters of | ||||||||||||||||||||||
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| 2019 |
| 2018 |
| 2019 |
| 2018 | ||||||||||||||||||
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| Dollar
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| Dollar
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| Dollar
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REVENUE: |
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| GAAP revenue: |
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| $ | 854.8 |
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| $ | 785.5 |
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| $ | 1,656.4 |
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| $ | 1,527.7 |
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| Acquired deferred revenue adjustment | (A) |
| 1.0 |
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| 3.8 |
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| 3.9 |
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| 6.7 |
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| Non-GAAP revenue: |
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| $ | 855.8 |
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| $ | 789.3 |
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| $ | 1,660.3 |
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| $ | 1,534.4 |
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GROSS MARGIN: |
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| GAAP gross margin: |
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| $ | 460.6 |
| 53.9 | % |
| $ | 422.7 |
| 53.8 | % |
| $ | 898.9 |
| 54.3 | % |
| $ | 818.9 |
| 53.6 | % | |||
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| Acquired deferred revenue adjustment | (A) |
| 1.0 |
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| 3.8 |
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| 3.9 |
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| 6.7 |
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| Restructuring charges | (B) |
| — |
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| 0.6 |
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| 0.2 |
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| 0.4 |
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| Amortization of purchased intangible assets | (C) |
| 23.8 |
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| 23.9 |
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| 48.0 |
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| 47.0 |
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| Stock-based compensation | (D) |
| 1.4 |
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| 1.1 |
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| 2.7 |
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| 2.2 |
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| Acquisition / divestiture items | (E) |
| — |
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| — |
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| — |
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| 2.0 |
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| Non-GAAP gross margin: |
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| $ | 486.8 |
| 56.9 | % |
| $ | 452.1 |
| 57.3 | % |
| $ | 953.7 |
| 57.4 | % |
| $ | 877.2 |
| 57.2 | % | |||
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OPERATING EXPENSES: |
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| GAAP operating expenses: |
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| $ | 350.9 |
| 41.1 | % |
| $ | 333.2 |
| 42.4 | % |
| $ | 702.9 |
| 42.4 | % |
| $ | 665.2 |
| 43.5 | % | |||
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| Restructuring charges | (B) |
| (2.9) |
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| (2.2) |
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| (6.4) |
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| (3.8) |
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| Amortization of purchased intangible assets | (C) |
| (19.7) |
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| (18.7) |
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| (39.8) |
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| (36.1) |
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| Stock-based compensation | (D) |
| (15.8) |
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| (15.8) |
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| (30.8) |
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| (32.1) |
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| Acquisition / divestiture items | (E) |
| (2.0) |
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| (8.1) |
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| (3.1) |
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| (22.1) |
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| Amortization of acquired capitalized commissions | (F) |
| 1.6 |
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| 0.6 |
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| 3.3 |
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| 1.1 |
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| Non-GAAP operating expenses: |
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| $ | 312.1 |
| 36.5 | % |
| $ | 289.0 |
| 36.6 | % |
| $ | 626.1 |
| 37.7 | % |
| $ | 572.2 |
| 37.3 | % | |||
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OPERATING INCOME: |
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| GAAP operating income: |
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| $ | 109.7 |
| 12.8 | % |
| $ | 89.5 |
| 11.4 | % |
| $ | 196.0 |
| 11.8 | % |
| $ | 153.7 |
| 10.1 | % | |||
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| Acquired deferred revenue adjustment | (A) |
| 1.0 |
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| 3.8 |
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| 3.9 |
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| 6.7 |
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| Restructuring charges | (B) |
| 2.9 |
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| 2.8 |
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| 6.6 |
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| 4.2 |
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| Amortization of purchased intangible assets | (C) |
| 43.5 |
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| 42.6 |
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| 87.8 |
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| 83.1 |
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| Stock-based compensation | (D) |
| 17.2 |
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| 16.9 |
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| 33.5 |
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| 34.3 |
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| Acquisition / divestiture items | (E) |
| 2.0 |
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| 8.1 |
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| 3.1 |
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| 24.1 |
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| Amortization of acquired capitalized commissions | (F) |
| (1.6) |
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| (0.6) |
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| (3.3) |
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| (1.1) |
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| Non-GAAP operating income: |
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| $ | 174.7 |
| 20.4 | % |
| $ | 163.1 |
| 20.7 | % |
| $ | 327.6 |
| 19.7 | % |
| $ | 305.0 |
| 19.9 | % | |||
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NON-OPERATING INCOME (EXPENSE), NET: |
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| GAAP non-operating income (expense), net: |
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| $ | 5.7 |
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| $ | (10.3) |
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| $ | (5.4) |
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| $ | (7.8) |
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| Acquisition / divestiture items | (E) |
| (13.1) |
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| 0.7 |
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| (12.8) |
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| (2.1) |
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| Debt issuance costs | (G) |
| — |
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| 6.7 |
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| — |
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| 6.7 |
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| Non-GAAP non-operating expense, net: |
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| $ | (7.4) |
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| $ | (2.9) |
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| $ | (18.2) |
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| $ | (3.2) |
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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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| (J) |
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| (J) |
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| (J) | ||||||||||||||
INCOME TAX PROVISION: |
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| GAAP income tax provision: |
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| $ | 20.8 |
| 18 | % |
| $ | 15.1 |
| 19 | % |
| $ | 33.6 |
| 18 | % |
| $ | 23.1 |
| 16 | % | |||
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| Non-GAAP items tax effected | (H) |
| 9.3 |
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| 15.4 |
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| 20.7 |
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| 24.4 |
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| Difference in GAAP and Non-GAAP tax rate | (I) |
| 3.4 |
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| — |
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| 7.6 |
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| 9.9 |
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| Non-GAAP income tax provision: |
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| $ | 33.5 |
| 20 | % |
| $ | 30.5 |
| 19 | % |
| $ | 61.9 |
| 20 | % |
| $ | 57.4 |
| 19 | % | |||
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NET INCOME: |
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| GAAP net income attributable to Trimble Inc.: |
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| $ | 94.6 |
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| $ | 64.1 |
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| $ | 156.9 |
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| $ | 122.6 |
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| Acquired deferred revenue adjustment | (A) |
| 1.0 |
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| 3.8 |
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| 3.9 |
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| 6.7 |
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| Restructuring charges | (B) |
| 2.9 |
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| 2.8 |
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| 6.6 |
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| 4.2 |
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| Amortization of purchased intangible assets | (C) |
| 43.5 |
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| 42.6 |
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| 87.8 |
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| 83.1 |
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| Stock-based compensation | (D) |
| 17.2 |
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| 16.9 |
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| 33.5 |
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| 34.3 |
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| Acquisition / divestiture items | (E) |
| (11.1) |
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| 8.8 |
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| (9.7) |
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| 22.0 |
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| Amortization of acquired capitalized commissions | (F) |
| (1.6) |
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| (0.6) |
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| (3.3) |
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| (1.1) |
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| Debt issuance costs | (G) |
| — |
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| 6.7 |
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| — |
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| 6.7 |
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| Non-GAAP tax adjustments | (H)+(I) |
| (12.7) |
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| (15.4) |
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| (28.3) |
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| (34.3) |
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| Non-GAAP net income attributable to Trimble Inc.: |
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| $ | 133.8 |
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| $ | 129.7 |
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| $ | 247.4 |
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| $ | 244.2 |
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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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| $ | 0.37 |
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| $ | 0.25 |
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| $ | 0.62 |
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| $ | 0.49 |
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| Acquired deferred revenue adjustment | (A) |
| — |
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| 0.01 |
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| 0.01 |
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| 0.03 |
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| Restructuring charges | (B) |
| 0.01 |
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| 0.01 |
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| 0.03 |
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| 0.02 |
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| Amortization of purchased intangible assets | (C) |
| 0.17 |
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| 0.17 |
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| 0.34 |
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| 0.33 |
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| Stock-based compensation | (D) |
| 0.07 |
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| 0.07 |
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| 0.13 |
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| 0.13 |
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| Acquisition / divestiture items | (E) |
| (0.04) |
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| 0.03 |
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| (0.04) |
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| 0.09 |
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| Amortization of acquired capitalized commissions | (F) |
| — |
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| — |
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| (0.01) |
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| — |
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| Debt issuance costs | (G) |
| — |
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| 0.03 |
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| — |
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| 0.02 |
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| Non-GAAP tax adjustments | (H)+(I) |
| (0.05) |
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| (0.06) |
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| (0.11) |
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| (0.14) |
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| Non-GAAP diluted net income per share attributable to Trimble Inc.: |
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| $ | 0.53 |
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| $ | 0.51 |
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| $ | 0.97 |
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| $ | 0.97 |
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| Third Quarter of 2019 |
| Fiscal Year 2019 |
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| Low End | High End |
| Low End | High End |
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FORECASTED DILUTED NET INCOME PER SHARE: |
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| Forecasted GAAP diluted net income per share attributable to Trimble Inc.: |
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| $ | 0.24 |
| $ | 0.28 |
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| $ | 1.10 |
| $ | 1.18 |
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| Acquired deferred revenue adjustment | (A) |
| — |
| — |
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| 0.02 |
| 0.02 |
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| Restructuring charges | (B) |
| 0.01 |
| 0.01 |
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| 0.05 |
| 0.05 |
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| Amortization of purchased intangible assets | (C) |
| 0.16 |
| 0.16 |
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| 0.66 |
| 0.66 |
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| Stock-based compensation | (D) |
| 0.08 |
| 0.08 |
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| 0.31 |
| 0.31 |
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| Acquisition / divestiture items | (E) |
| 0.01 |
| 0.01 |
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| 0.04 |
| 0.04 |
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| Amortization of acquired capitalized commissions | (F) |
| (0.01) |
| (0.01) |
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| (0.03) |
| (0.03) |
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| Non-GAAP tax adjustments | (H)+(I) |
| (0.04) |
| (0.04) |
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| (0.24) |
| (0.24) |
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| Forecasted non-GAAP diluted net income per share attributable to Trimble Inc.: |
| $ | 0.45 |
| $ | 0.49 |
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| $ | 1.91 |
| $ | 1.99 |
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FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION