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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2015 |
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2014 |
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2015 |
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2014 |
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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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$ 303.9 |
51.9% |
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$ 354.6 |
55.2% |
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$ 611.1 |
52.3% |
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$ 681.5 |
54.7% |
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Restructuring charges |
( A ) |
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0.3 |
0.1% |
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0.1 |
0.0% |
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0.5 |
0.0% |
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0.2 |
0.0% |
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Amortization of purchased intangible assets |
( B ) |
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23.0 |
3.9% |
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20.0 |
3.1% |
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45.5 |
3.9% |
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40.9 |
3.3% |
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Stock-based compensation |
( C ) |
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1.0 |
0.2% |
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0.8 |
0.2% |
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1.9 |
0.2% |
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1.5 |
0.1% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
0.0% |
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0.1 |
0.0% |
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- |
0.0% |
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0.1 |
0.0% |
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Non-GAAP gross margin: |
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$ 328.2 |
56.1% |
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$ 375.6 |
58.5% |
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$ 659.0 |
56.4% |
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$ 724.2 |
58.1% |
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OPERATING EXPENSES: |
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GAAP operating expenses: |
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$ 267.9 |
45.7% |
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$ 257.4 |
40.1% |
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$ 535.6 |
45.8% |
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$ 508.6 |
40.8% |
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Restructuring charges |
( A ) |
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(5.2) |
-0.9% |
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(0.8) |
-0.1% |
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(6.3) |
-0.5% |
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(1.1) |
-0.1% |
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Amortization of purchased intangible assets |
( B ) |
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(17.8) |
-3.0% |
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(17.8) |
-2.8% |
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(36.0) |
-3.1% |
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(37.5) |
-3.0% |
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Stock-based compensation |
( C ) |
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(11.0) |
-1.9% |
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(10.2) |
-1.6% |
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(22.6) |
-1.9% |
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(19.6) |
-1.6% |
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Acquisition / divestiture items |
( E ) |
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(2.8) |
-0.5% |
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(2.0) |
-0.3% |
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(5.6) |
-0.5% |
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(3.4) |
-0.3% |
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Non-GAAP operating expenses: |
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$ 231.1 |
39.4% |
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$ 226.6 |
35.3% |
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$ 465.1 |
39.8% |
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$ 447.0 |
35.8% |
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OPERATING INCOME: |
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GAAP operating income: |
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$ 36.0 |
6.1% |
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$ 97.2 |
15.1% |
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$ 75.5 |
6.5% |
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$ 172.9 |
13.9% |
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Restructuring charges |
( A ) |
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5.5 |
0.9% |
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0.9 |
0.1% |
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6.8 |
0.6% |
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1.3 |
0.1% |
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Amortization of purchased intangible assets |
( B ) |
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40.8 |
7.0% |
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37.8 |
5.9% |
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81.5 |
7.0% |
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78.4 |
6.3% |
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Stock-based compensation |
( C ) |
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12.0 |
2.0% |
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11.0 |
1.8% |
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24.5 |
2.0% |
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21.1 |
1.6% |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
0.0% |
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0.1 |
0.0% |
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- |
0.0% |
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0.1 |
0.0% |
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Acquisition / divestiture items |
( E ) |
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2.8 |
0.6% |
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2.0 |
0.3% |
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5.6 |
0.5% |
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3.4 |
0.3% |
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Non-GAAP operating income: |
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$ 97.1 |
16.6% |
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$ 149.0 |
23.2% |
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$ 193.9 |
16.6% |
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$ 277.2 |
22.2% |
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NON-OPERATING INCOME (LOSS), NET: |
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GAAP non-operating income (loss), net: |
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$ (0.2) |
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$ 1.6 |
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$ 4.5 |
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$ 14.4 |
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Acquisition / divestiture items |
( E ) |
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0.2 |
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2.6 |
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(5.6) |
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4.3 |
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Gain on an equity sale |
( F ) |
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- |
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- |
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- |
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(15.1) |
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Debt issuance cost write-off |
( G ) |
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0.1 |
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- |
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- |
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- |
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Non-GAAP non-operating income (loss), net: |
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$ 0.1 |
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$ 4.2 |
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$ (1.1) |
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$ 3.6 |
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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 % |
( K ) |
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Tax Rate % |
( K ) |
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Tax Rate % |
( K ) |
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Tax Rate % |
( K ) |
INCOME TAX PROVISION: |
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GAAP income tax provision: |
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$ 10.0 |
28% |
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$ 20.7 |
21% |
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$ 20.2 |
25% |
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$ 41.1 |
22% |
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Non-GAAP items tax effected |
( H ) |
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17.2 |
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11.4 |
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29.0 |
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22.4 |
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Difference in GAAP and Non-GAAP tax rate |
( I ) |
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(3.9) |
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- |
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(2.9) |
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- |
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Tax on gain on an equity sale |
( J ) |
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- |
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- |
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- |
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(5.8) |
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Non-GAAP income tax provision: |
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$ 23.3 |
24% |
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$ 32.1 |
21% |
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$ 46.3 |
24% |
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$ 57.7 |
21% |
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NET INCOME: |
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GAAP net income attributable to Trimble Navigation Ltd. |
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$ 25.9 |
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$ 77.9 |
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$ 60.0 |
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$ 146.5 |
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Restructuring charges |
( A ) |
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5.5 |
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0.9 |
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6.8 |
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1.3 |
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Amortization of purchased intangible assets |
( B ) |
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40.8 |
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37.8 |
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81.5 |
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78.4 |
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Stock-based compensation |
( C ) |
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12.0 |
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11.0 |
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24.5 |
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21.1 |
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Amortization of acquisition-related inventory step-up |
( D ) |
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- |
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0.1 |
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- |
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0.1 |
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Acquisition / divestiture items |
( E ) |
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3.0 |
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4.6 |
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- |
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7.7 |
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Gain on an equity sale |
( F ) |
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- |
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- |
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- |
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(15.1) |
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Debt issuance cost write-off |
( G ) |
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0.1 |
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- |
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- |
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- |
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Non-GAAP tax adjustments |
( H ), ( I ), ( J ) |
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(13.3) |
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(11.4) |
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(26.1) |
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(16.6) |
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Non-GAAP net income attributable to Trimble Navigation Ltd. |
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$ 74.0 |
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$ 120.9 |
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$ 146.7 |
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$ 223.4 |
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DILUTED NET INCOME PER SHARE: |
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GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
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$ 0.10 |
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$ 0.29 |
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$ 0.23 |
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$ 0.55 |
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Restructuring charges |
( A ) |
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0.02 |
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- |
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0.03 |
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0.01 |
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Amortization of purchased intangible assets |
( B ) |
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0.16 |
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0.14 |
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0.31 |
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0.30 |
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Stock-based compensation |
( C ) |
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0.04 |
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0.04 |
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0.09 |
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0.08 |
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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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0.01 |
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0.02 |
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- |
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0.03 |
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Gain on an equity sale |
( F ) |
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- |
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- |
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- |
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(0.06) |
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Debt issuance cost write-off |
( G ) |
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- |
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- |
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- |
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- |
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Non-GAAP tax adjustments |
( H ), ( I ), ( J ) |
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(0.05) |
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(0.04) |
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(0.10) |
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(0.07) |
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Non-GAAP diluted net income per share attributable to Trimble Navigation Ltd. |
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$ 0.28 |
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$ 0.45 |
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$ 0.56 |
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$ 0.84 |
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OPERATING LEVERAGE: |
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Increase (decrease) in non-GAAP operating income |
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$ (51.9) |
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$ 28.7 |
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$ (83.3) |
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$ 46.7 |
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Increase (decrease) in revenue |
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$ (56.4) |
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$ 65.9 |
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$ (78.5) |
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$ 114.5 |
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Operating leverage (increase in non-GAAP operating income as a % of increase in revenue) |
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N/A |
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43.6% |
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N/A |
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40.8% |
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