GAAP TO NON-GAAP RECONCILIATION

(Dollars in thousands, except per share data)

(Unaudited)

First Quarter of

2013

2012

Dollar

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$ 286,914

51.6%

$ 259,150

51.6%

Restructuring

( A )

55

0.0%

45

0.0%

Amortization of purchased intangible assets

( B )

19,681

3.6%

13,121

2.6%

Stock-based compensation

( C )

600

0.1%

520

0.1%

Amortization of acquisition-related inventory step-up

( D )

603

0.1%

8

0.0%

Non-GAAP gross margin: 

$ 307,853

55.4%

$ 272,844

54.3%

OPERATING EXPENSES:

GAAP operating expenses:

$ 230,457

41.4%

$ 199,302

39.7%

Restructuring

( A )

(1,605)

-0.3%

(481)

-0.1%

Amortization of purchased intangible assets

( B )

(19,651)

-3.5%

(15,676)

-3.2%

Stock-based compensation

( C )

(8,218)

-1.5%

(7,269)

-1.4%

Acquisition costs

( E )

(3,418)

-0.6%

(4,766)

-0.9%

Non-GAAP operating expenses:

$ 197,565

35.5%

$ 171,110

34.1%

OPERATING INCOME:

GAAP operating income:

$   56,457

10.2%

$   59,848

11.9%

Restructuring

( A )

1,660

0.3%

526

0.1%

Amortization of purchased intangible assets

( B )

39,332

7.0%

28,797

5.7%

Stock-based compensation

( C )

8,818

1.6%

7,789

1.6%

Amortization of acquisition-related inventory step-up

( D )

603

0.1%

8

0.0%

Acquisition costs

( E )

3,418

0.6%

4,766

1.0%

Non-GAAP operating income: 

$ 110,288

19.8%

$ 101,734

20.3%

NON-OPERATING INCOME, NET:

GAAP non-operating income (expense), net:

$    (2,088)

$       479

Acquisition / divestiture (gain) loss

( E )

(401)

444

Foreign exchange loss associated with acquisitions

( F )

-

1,578

Non-GAAP non-operating income (expense), net: 

$    (2,489)

$     2,501

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Tax Rate %

( H )

Tax Rate %

( H )

INCOME TAX PROVISION:

GAAP income tax provision:

$     5,437

10%

$   10,255

17%

Non-GAAP items tax effected

( G )

5,343

7,464

Non-GAAP income tax provision: 

$   10,780

10%

$   17,719

17%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Ltd.

$   49,808

$   50,818

Restructuring

( A )

1,660

526

Amortization of purchased intangible assets

( B )

39,332

28,797

Stock-based compensation

( C )

8,818

7,789

Amortization of acquisition-related inventory step-up

( D )

603

8

Acquisition / divestiture costs, net

( E )

3,017

5,210

Foreign exchange loss associated with acquisitions

( F )

-

1,578

Non-GAAP items tax affected

( G )

(5,343)

(7,464)

Non-GAAP net income attributable to Trimble Navigation Ltd.

$   97,895

$   87,262

DILUTED NET INCOME PER SHARE:

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

$      0.19

$      0.20

Restructuring

( A )

0.01

-

Amortization of purchased intangible assets

( B )

0.15

0.11

Stock-based compensation

( C )

0.04

0.03

Amortization of acquisition-related inventory step-up

( D )

-

-

Acquisition / divestiture costs, net

( E )

0.01

0.02

Foreign exchange loss associated with acquisitions

( F )

-

0.01

Non-GAAP items tax affected

( G )

(0.02)

(0.03)

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

$      0.38

$      0.34

OPERATING LEVERAGE:

Increase in non-GAAP operating income

$     8,554

$   31,632

Increase in revenue

$   53,844

$ 117,974

Operating leverage (increase in non-GAAP operating 

income as a % of increase in revenue)

15.9%

26.8%