GAAP TO NON-GAAP RECONCILIATION
(Dollars in millions, except per share data)
(Unaudited)

First Quarter of

2021

2020

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

REVENUE:

GAAP revenue:

$

886.5

$

792.3

Acquired deferred revenue adjustment

(A)

0.2

1.7

Non-GAAP revenue:

$

886.7

$

794.0

GROSS MARGIN:

GAAP gross margin:

$

493.3

55.6

%

$

441.0

55.7

%

Acquired deferred revenue adjustment

(A)

0.2

1.7

Amortization of purchased intangible assets

(C)

22.1

23.5

Acquisition / divestiture items

(D)

—

1.7

Stock-based compensation / deferred compensation

(E)

2.0

0.7

Restructuring and other exit costs

(F)

—

0.3

Non-GAAP gross margin:

$

517.6

58.4

%

$

468.9

59.1

%

OPERATING EXPENSES:

GAAP operating expenses:

$

352.4

39.8

%

$

342.7

43.3

%

Amortization of acquired capitalized commissions

(B)

1.2

1.5

Amortization of purchased intangible assets

(C)

(13.7)

(16.9)

Acquisition / divestiture items

(D)

(3.5)

(9.1)

Stock-based compensation / deferred compensation

(E)

(26.7)

(3.8)

Restructuring and other exit costs

(F)

(1.5)

(2.9)

COVID-19 expenses

(G)

0.2

(3.8)

Non-GAAP operating expenses:

$

308.4

34.8

%

$

307.7

38.8

%

OPERATING INCOME:

GAAP operating income:

$

140.9

15.9

%

$

98.3

12.4

%

Acquired deferred revenue adjustment

(A)

0.2

1.7

Amortization of acquired capitalized commissions

(B)

(1.2)

(1.5)

Amortization of purchased intangible assets

(C)

35.8

40.4

Acquisition / divestiture items

(D)

3.5

10.8

Stock-based compensation / deferred compensation

(E)

28.7

4.5

Restructuring and other exit costs

(F)

1.5

3.2

COVID-19 expenses

(G)

(0.2)

3.8

Non-GAAP operating income:

$

209.2

23.6

%

$

161.2

20.3

%

NON-OPERATING EXPENSE, NET:

GAAP non-operating expense, net:

$

(3.5)

$

(18.9)

Acquisition / divestiture items

(D)

(2.1)

—

Deferred compensation

(E)

(1.5)

6.2

Non-GAAP non-operating expense, net:

$

(7.1)

$

(12.7)

GAAP and Non-GAAP Tax Rate %

GAAP and Non-GAAP Tax Rate %

(J)

(J)

INCOME TAX PROVISION:

GAAP income tax provision:

$

22.8

16.6

%

$

17.5

22.0

%

Non-GAAP items tax effected

(H)

10.7

15.2

Difference in GAAP and Non-GAAP tax rate

(I)

1.5

(6.7)

Non-GAAP income tax provision:

$

35.0

17.3

%

$

26.0

17.5

%

NET INCOME:

GAAP net income attributable to Trimble Inc.:

$

114.5

$

61.9

Acquired deferred revenue adjustment

(A)

0.2

1.7

Amortization of acquired capitalized commissions

(B)

(1.2)

(1.5)

Amortization of purchased intangible assets

(C)

35.8

40.4

Acquisition / divestiture items

(D)

1.4

10.8

Stock-based compensation / deferred compensation

(E)

27.2

10.7

Restructuring and other exit costs

(F)

1.5

3.2

COVID-19 expenses

(G)

(0.2)

3.8

Non-GAAP tax adjustments

(H) - (I)

(12.2)

(8.5)

Non-GAAP net income attributable to Trimble Inc.:

$

167.0

$

122.5

DILUTED NET INCOME PER SHARE:

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

$

0.45

$

0.25

Acquired deferred revenue adjustment

(A)

—

0.01

Amortization of acquired capitalized commissions

(B)

—

(0.01)

Amortization of purchased intangible assets

(C)

0.14

0.16

Acquisition / divestiture items

(D)

—

0.04

Stock-based compensation / deferred compensation

(E)

0.11

0.04

Restructuring and other exit costs

(F)

0.01

0.01

COVID-19 expenses

(G)

—

0.02

Non-GAAP tax adjustments

(H) - (I)

(0.05)

(0.03)

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

$

0.66

$

0.49

ADJUSTED EBITDA:

GAAP net income attributable to Trimble Inc.:

$

114.5

$

61.9

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

26.4

36.4

GAAP operating income:

140.9

98.3

Acquired deferred revenue adjustment

(A)

0.2

1.7

Amortization of acquired capitalized commissions

(B)

(1.2)

(1.5)

Amortization of purchased intangible assets

(C)

35.8

40.4

Acquisition / divestiture items

(D)

3.5

10.8

Stock-based compensation / deferred compensation

(E)

28.7

4.5

Restructuring and other exit costs

(F)

1.5

3.2

COVID-19 expenses

(G)

(0.2)

3.8

Non-GAAP operating income:

209.2

161.2

Depreciation expense

10.3

9.8

Income from equity method investments, net

11.8

9.4

Adjusted EBITDA:

$

231.3

$

180.4

Fiscal Year 2021

Low End

High End

FORECASTED DILUTED NET INCOME PER SHARE:

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

$

1.49

$

1.68

Acquired deferred revenue adjustment

(A)

—

—

Amortization of acquired capitalized commissions

(B)

(0.02)

(0.02)

Amortization of purchased intangible assets

(C)

0.54

0.54

Acquisition / divestiture items

(D)

(0.03)

(0.03)

Stock-based compensation / deferred compensation

(E)

0.43

0.43

Restructuring and other exit costs

(F)

0.03

0.03

Non-GAAP tax adjustments

(H) - (I)

(0.14)

(0.13)

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

$

2.30

$

2.50