GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Third Quarter of

First Three Quarters of

2020

2019

2020

2019

Dollar
Amount

% of Revenue

Dollar
Amount

% of Revenue

Dollar
Amount

% of Revenue

Dollar
Amount

% of Revenue

REVENUE:

GAAP revenue:

$

792.1

$

783.9

$

2,318.0

$

2,440.3

Acquired deferred revenue adjustment

(A)

0.7

0.4

4.0

4.3

Non-GAAP revenue:

$

792.8

$

784.3

$

2,322.0

$

2,444.6

GROSS MARGIN:

GAAP gross margin:

$

439.7

55.5

%

$

422.0

53.8

%

$

1,286.4

55.5

%

$

1,320.9

54.1

%

Acquired deferred revenue adjustment

(A)

0.7

0.4

4.0

4.3

Restructuring charges

(B)

0.3

—

0.7

0.2

COVID-19 expenses

(C)

—

—

0.3

—

Amortization of purchased intangible assets

(D)

23.3

23.3

70.0

71.3

Stock-based compensation / deferred compensation

(E)

2.5

1.5

5.2

4.4

Acquisition / divestiture items

(F)

—

—

1.7

—

Non-GAAP gross margin:

$

466.5

58.8

%

$

447.2

57.0

%

$

1,368.3

58.9

%

$

1,401.1

57.3

%

OPERATING EXPENSES:

GAAP operating expenses:

$

337.7

42.6

%

$

330.3

42.1

%

$

988.5

42.6

%

$

1,033.2

42.3

%

Restructuring charges / executive transition costs

(B)

(13.2)

(3.6)

(21.2)

(10.0)

COVID-19 expenses

(C)

(1.2)

—

(4.5)

—

Amortization of purchased intangible assets

(D)

(16.7)

(17.5)

(50.2)

(57.3)

Stock-based compensation / deferred compensation

(E)

(29.5)

(17.0)

(56.7)

(51.5)

Acquisition / divestiture items

(F)

(3.7)

(8.4)

(14.7)

(11.5)

Amortization of acquired capitalized commissions

(G)

1.3

1.5

4.2

4.8

Non-GAAP operating expenses:

$

274.7

34.6

%

$

285.3

36.4

%

$

845.4

36.4

%

$

907.7

37.1

%

OPERATING INCOME:

GAAP operating income:

$

102.0

12.9

%

$

91.7

11.7

%

$

297.9

12.9

%

$

287.7

11.8

%

Acquired deferred revenue adjustment

(A)

0.7

0.4

4.0

4.3

Restructuring charges / executive transition costs

(B)

13.5

3.6

21.9

10.2

COVID-19 expenses

(C)

1.2

—

4.8

—

Amortization of purchased intangible assets

(D)

40.0

40.8

120.2

128.6

Stock-based compensation / deferred compensation

(E)

32.0

18.5

61.9

55.9

Acquisition / divestiture items

(F)

3.7

8.4

16.4

11.5

Amortization of acquired capitalized commissions

(G)

(1.3)

(1.5)

(4.2)

(4.8)

Non-GAAP operating income:

$

191.8

24.2

%

$

161.9

20.6

%

$

522.9

22.5

%

$

493.4

20.2

%

NON-OPERATING EXPENSE, NET:

GAAP non-operating  expense, net:

$

(5.6)

$

(12.8)

$

(31.2)

$

(18.2)

Deferred compensation

(E)

(4.2)

0.1

(4.8)

(3.8)

Acquisition / divestiture items

(F)

0.1

0.3

2.5

(12.5)

Non-GAAP non-operating expense, net:

$

(9.7)

$

(12.4)

$

(33.5)

$

(34.5)

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

(J)

(J)

(J)

(J)

INCOME TAX PROVISION:

GAAP income tax provision:

$

11.6

12.0

%

$

0.8

1.0

%

$

56.8

21.3

%

$

34.4

12.8

%

Non-GAAP items tax effected

(H)

10.3

0.7

46.2

21.4

Difference in GAAP and Non-GAAP tax rate

(I)

7.3

26.9

(20.7)

34.5

Non-GAAP income tax provision:

$

29.2

16.0

%

$

28.4

19.0

%

$

82.3

16.8

%

$

90.3

19.7

%

NET INCOME:

GAAP net income attributable to Trimble Inc.:

$

84.7

$

78.1

$

209.6

$

235.0

Acquired deferred revenue adjustment

(A)

0.7

0.4

4.0

4.3

Restructuring charges / executive transition costs

(B)

13.5

3.6

21.9

10.2

COVID-19 expenses

(C)

1.2

—

4.8

—

Amortization of purchased intangible assets

(D)

40.0

40.8

120.2

128.6

Stock-based compensation / deferred compensation

(E)

27.8

18.6

57.1

52.1

Acquisition / divestiture items

(F)

3.8

8.7

18.9

(1.0)

Amortization of acquired capitalized commissions

(G)

(1.3)

(1.5)

(4.2)

(4.8)

Non-GAAP tax adjustments

(H)-(I)

(17.6)

(27.6)

(25.5)

(55.9)

Non-GAAP net income attributable to Trimble Inc.:

$

152.8

$

121.1

$

406.8

$

368.5

DILUTED NET INCOME PER SHARE:

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

$

0.34

$

0.31

$

0.83

$

0.93

Acquired deferred revenue adjustment

(A)

—

—

0.02

0.01

Restructuring charges / executive transition costs

(B)

0.05

0.01

0.08

0.04

COVID-19 expenses

(C)

—

—

0.02

—

Amortization of purchased intangible assets

(D)

0.16

0.16

0.48

0.51

Stock-based compensation / deferred compensation

(E)

0.11

0.07

0.23

0.20

Acquisition / divestiture items

(F)

0.02

0.03

0.07

—

Amortization of acquired capitalized commissions

(G)

(0.01)

—

(0.02)

(0.02)

Non-GAAP tax adjustments

(H)-(I)

(0.07)

(0.10)

(0.10)

(0.22)

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

$

0.60

$

0.48

$

1.61

$

1.45

ADJUSTED EBITDA:

GAAP net income attributable to Trimble Inc.:

$

84.7

$

78.1

$

209.6

$

235.0

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

17.3

13.6

88.3

52.7

GAAP operating income:

102.0

91.7

297.9

287.7

Acquired deferred revenue adjustment

(A)

0.7

0.4

4.0

4.3

Restructuring charges / executive transition costs

(B)

13.5

3.6

21.9

10.2

COVID-19 expenses

(C)

1.2

—

4.8

—

Amortization of purchased intangible assets

(D)

40.0

40.8

120.2

128.6

Stock-based compensation / deferred compensation

(E)

32.0

18.5

61.9

55.9

Acquisition / divestiture items

(F)

3.7

8.4

16.4

11.5

Amortization of acquired capitalized commissions

(G)

(1.3)

(1.5)

(4.2)

(4.8)

Non-GAAP operating income:

191.8

161.9

522.9

493.4

Depreciation expense

9.9

9.4

29.4

29.7

Income from equity income investments, net

10.8

8.8

29.9

30.5

Adjusted EBITDA:

$

212.5

$

180.1

$

582.2

$

553.6