NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In millions, except per share data)

(Unaudited)

Q1'17

As Reported

ASC 606 Adjustments

As Adjusted

Revenue:

Product

$           405.4

$                         4.2

$           409.6

Service

106.8

(0.2)

106.6

Subscription

101.7

(7.3)

94.4

Total revenue

613.9

(3.3)

610.6

Cost of sales:

Product

194.4

(1.0)

193.4

Service

47.1

(0.1)

47.0

Subscription

26.8

0.1

26.9

Amortization of purchased intangible assets

19.0

-

19.0

Total cost of sales

287.3

(1.0)

286.3

Gross margin

326.6

(2.3)

324.3

Gross margin (%)

53.2 %

53.1%

Operating expense:

Research and development

88.7

-

88.7

Sales and marketing

94.8

(0.4)

94.4

General and administrative

69.3

-

69.3

Restructuring charges

2.9

-

2.9

Amortization of purchased intangible assets

14.3

-

14.3

Total operating expense

270.0

(0.4)

269.6

Operating income

56.6

(1.9)

54.7

Non-operating income (expense), net:

Interest expense, net

(6.1)

-

(6.1)

Foreign currency transaction gain, net

1.4

-

1.4

Income from equity method investments, net

4.2

-

4.2

Other income (loss), net

9.5

-

9.5

Total non-operating income (expense), net

9.0

-

9.0

Income before taxes

65.6

(1.9)

63.7

Income tax provision

15.1

(1.2)

13.9

Net income (loss)

50.5

(0.7)

49.8

Net gain attributable to noncontrolling interests

-

-

-

Net income (loss) attributable to Trimble Inc.

$             50.5

$                       (0.7)

$             49.8

Net income (loss) per share attributable to Trimble Inc.

Basic

$             0.20

$                           -

$             0.20

Diluted

$             0.20

$                     (0.01)

$             0.19

Shares used in calculating net income (loss) per share:

Basic

252.0

-

252.0

Diluted

255.9

-

255.9