GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

First Quarter of

2016

2015

Dollar

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$  300.6

51.6%

$  307.2

52.7%

Restructuring charges

( A )

0.3

0.1%

0.2

0.0%

Amortization of purchased intangible assets

( B )

24.1

4.0%

22.5

3.9%

Stock-based compensation

( C )

1.0

0.2%

0.9

0.2%

Non-GAAP gross margin: 

$  326.0

55.9%

$  330.8

56.8%

OPERATING EXPENSES:

GAAP operating expenses:

$  270.7

46.4%

$  267.7

45.9%

Restructuring charges

( A )

(1.8)

-0.3%

(1.1)

-0.2%

Amortization of purchased intangible assets

( B )

(16.2)

-2.8%

(18.2)

-3.1%

Stock-based compensation

( C )

(12.7)

-2.2%

(11.6)

-2.0%

Acquisition / divestiture items

( D )

(1.6)

-0.3%

(2.8)

-0.5%

Executive transition costs

( E )

(0.9)

-0.1%

-

0.0%

Non-GAAP operating expenses:

$  237.5

40.7%

$  234.0

40.1%

OPERATING INCOME:

GAAP operating income:

$   29.9

5.1%

$   39.5

6.8%

Restructuring charges

( A )

2.1

0.4%

1.3

0.2%

Amortization of purchased intangible assets

( B )

40.3

6.8%

40.7

7.0%

Stock-based compensation

( C )

13.7

2.4%

12.5

2.1%

Acquisition / divestiture items

( D )

1.6

0.3%

2.8

0.5%

Executive transition costs

( E )

0.9

0.1%

-

0.0%

Non-GAAP operating income: 

$   88.5

15.1%

$   96.8

16.6%

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$    (0.5)

$     4.7

Acquisition / divestiture items

( D )

(3.1)

(5.8)

Debt issuance cost write-off

( F )

-

(0.1)

Non-GAAP non-operating expense, net: 

$    (3.6)

$    (1.2)

GAAP and 

GAAP and 

Non-GAAP

Non-GAAP

Tax Rate %

( I )

Tax Rate %

( I )

INCOME TAX PROVISION:

GAAP income tax provision:

$     9.7

33%

$   10.2

23%

Non-GAAP items tax effected 

( G )

18.3

11.8

Difference in GAAP and Non-GAAP tax rate

( H )

(7.5)

1.0

Non-GAAP income tax provision: 

$   20.5

24%

$   23.0

24%

NET INCOME:  

GAAP net income attributable to Trimble Navigation Limited

$   19.8

$   34.1

Restructuring charges

( A )

2.1

1.3

Amortization of purchased intangible assets

( B )

40.3

40.7

Stock-based compensation

( C )

13.7

12.5

Acquisition / divestiture items

( D )

(1.5)

(3.0)

Executive transition costs

( E )

0.9

-

Debt issuance cost write-off

( F )

-

(0.1)

Non-GAAP tax adjustments

( G ) + ( H )

(10.8)

(12.8)

Non-GAAP net income attributable to Trimble Navigation Limited

$   64.5

$   72.7

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share attributable to Trimble Navigation Limited

$   0.08

$   0.13

Restructuring charges

( A )

0.01

-

Amortization of purchased intangible assets

( B )

0.16

0.16

Stock-based compensation

( C )

0.05

0.05

Acquisition / divestiture items

( D )

(0.01)

(0.01)

Executive transition costs

( E )

-

-

Debt issuance cost write-off

( F )

-

-

Non-GAAP tax adjustments

( G ) + ( H )

(0.04)

(0.05)

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

$   0.25

$   0.28