GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Third Quarter of

First Three Quarters of

2015

2014

2015

2014

Dollar

% of

Dollar

% of

 Dollar 

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

 Amount 

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$ 298.0

53.0%

$ 316.8

54.2%

$  909.1

52.5%

$    998.3

54.5%

Restructuring charges

( A )

0.3

0.1%

0.1

0.0%

0.8

0.0%

0.3

0.0%

Amortization of purchased intangible assets

( B )

23.3

4.1%

20.1

3.4%

68.8

4.0%

61.0

3.3%

Stock-based compensation

( C )

1.0

0.2%

0.8

0.1%

2.9

0.2%

2.3

0.1%

Amortization of acquisition-related inventory step-up

( D )

-

0.0%

0.5

0.1%

-

0.0%

0.6

0.1%

Non-GAAP gross margin: 

$ 322.6

57.4%

$ 338.3

57.8%

$  981.6

56.7%

$ 1,062.5

58.0%

OPERATING EXPENSES:

GAAP operating expenses:

$ 252.0

44.8%

$ 305.7

52.3%

$  787.6

45.5%

$    814.3

44.5%

Restructuring charges

( A )

(2.7)

-0.5%

(0.2)

0.0%

(9.0)

-0.5%

(1.3)

-0.1%

Amortization of purchased intangible assets

( B )

(17.4)

-3.1%

(19.3)

-3.3%

(53.4)

-3.1%

(56.8)

-3.1%

Stock-based compensation

( C )

(11.8)

-2.1%

(10.2)

-1.8%

(34.4)

-2.0%

(29.8)

-1.6%

Acquisition / divestiture items

( E )

(2.4)

-0.4%

(4.1)

-0.7%

(8.0)

-0.4%

(7.5)

-0.4%

Litigation

( F )

-

0.0%

(52.0)

-8.9%

-

0.0%

(52.0)

-2.9%

Non-GAAP operating expenses:

$ 217.7

38.7%

$ 219.9

37.6%

$  682.8

39.5%

$    666.9

36.4%

OPERATING INCOME:

GAAP operating income:

$   46.0

8.2%

$   11.1

1.9%

$  121.5

7.0%

$    184.0

10.0%

Restructuring charges

( A )

3.0

0.5%

0.3

0.0%

9.8

0.6%

1.6

0.1%

Amortization of purchased intangible assets

( B )

40.7

7.2%

39.4

6.7%

122.2

7.1%

117.8

6.4%

Stock-based compensation

( C )

12.8

2.3%

11.0

1.9%

37.3

2.1%

32.1

1.8%

Amortization of acquisition-related inventory step-up

( D )

-

0.0%

0.5

0.1%

-

0.0%

0.6

0.0%

Acquisition / divestiture items

( E )

2.4

0.5%

4.1

0.7%

8.0

0.5%

7.5

0.4%

Litigation

( F )

-

0.0%

52.0

8.9%

-

0.0%

52.0

2.9%

Non-GAAP operating income: 

$ 104.9

18.7%

$ 118.4

20.2%

$  298.8

17.3%

$    395.6

21.6%

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$    (2.5)

$    (4.0)

$      2.0

$      10.4

Acquisition / divestiture items

( E )

(0.2)

1.7

(5.8)

6.0

Gain on an equity sale

( G )

-

-

-

(15.1)

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

$    (2.7)

$    (2.3)

$     (3.8)

$        1.3

GAAP and 

GAAP and 

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Non-GAAP

Non-GAAP

Tax Rate %

( L )

Tax Rate %

( L )

Tax Rate %

( L )

Tax Rate %

( L )

INCOME TAX PROVISION:

GAAP income tax provision:

$     6.5

15%

$    (4.7)

-66%

$    26.7

22%

$      36.4

19%

Non-GAAP items tax effected 

( H )

8.8

13.9

37.8

36.3

Difference in GAAP and Non-GAAP tax rate

( I )

9.2

-

6.3

-

Tax on gain on an equity sale

( J )

-

-

-

(5.8)

Tax on RDS litigation

( K )

-

19.8

-

19.8

Non-GAAP income tax provision: 

$   24.5

24%

$   29.0

25%

$    70.8

24%

$      86.7

22%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Ltd.

$   37.1

$   11.8

$    97.1

$    158.3

Restructuring charges

( A )

3.0

0.3

9.8

1.6

Amortization of purchased intangible assets

( B )

40.7

39.4

122.2

117.8

Stock-based compensation

( C )

12.8

11.0

37.3

32.1

Amortization of acquisition-related inventory step-up

( D )

-

0.5

-

0.6

Acquisition / divestiture items

( E )

2.2

5.8

2.2

13.5

Gain on an equity sale

( G )

-

-

-

(15.1)

Litigation

( F )

-

52.0

-

52.0

Non-GAAP tax adjustments

( H ) - ( K )

(18.0)

(33.7)

(44.1)

(50.3)

Non-GAAP net income attributable to Trimble Navigation Ltd.

$   77.8

$   87.1

$  224.5

$    310.5

DILUTED NET INCOME PER SHARE:

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

$   0.14

$   0.04

$    0.37

$      0.60

Restructuring charges

( A )

0.01

-

0.04

0.01

Amortization of purchased intangible assets

( B )

0.16

0.15

0.47

0.44

Stock-based compensation

( C )

0.05

0.04

0.14

0.12

Amortization of acquisition-related inventory step-up

( D )

-

-

-

-

Acquisition / divestiture items

( E )

0.01

0.02

0.01

0.05

Gain on an equity sale

( G )

-

-

-

(0.06)

Litigation

( F )

-

0.20

-

0.20

Non-GAAP tax adjustments

( H ) - ( K )

(0.07)

(0.12)

(0.17)

(0.19)

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

$   0.30

$   0.33

$    0.86

$      1.17

OPERATING LEVERAGE:

Increase (decrease) in non-GAAP operating income

$  (13.5)

$     0.2

$   (96.8)

$      46.8

Increase (decrease) in revenue

$  (22.5)

$   28.3

$ (101.0)

$    142.8

Operating leverage (increase in non-GAAP operating 

income as a % of increase in revenue)

N/A

0.7%

N/A

32.8%