GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

First Quarter of

2020

2019

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$

792.3

$

801.6

Acquired deferred revenue adjustment

(A)

1.7

2.9

Non-GAAP revenue:

$

794.0

$

804.5

GROSS MARGIN:

GAAP gross margin:

$

441.0

55.7

%

$

438.3

54.7

%

Acquired deferred revenue adjustment

(A)

1.7

2.9

Restructuring charges

(B)

0.3

0.2

Amortization of purchased intangible assets

(D)

23.5

24.2

Stock-based compensation and deferred compensation

(E)

0.7

1.4

Acquisition / divestiture items

(F)

1.7

—

Non-GAAP gross margin:

$

468.9

59.1

%

$

467.0

58.0

%

OPERATING EXPENSES:

GAAP operating expenses:

$

342.7

43.3

%

$

352.0

43.9

%

Restructuring charges

(B)

(2.9)

(3.5)

COVID-19 expenses

(C)

(3.8)

—

Amortization of purchased intangible assets

(D)

(16.9)

(20.1)

Stock-based compensation and deferred compensation

(E)

(3.8)

(17.7)

Acquisition / divestiture items

(F)

(9.1)

(1.1)

Amortization of acquired capitalized commissions

(G)

1.5

1.7

Non-GAAP operating expenses:

$

307.7

38.8

%

$

311.3

38.7

%

OPERATING INCOME:

GAAP operating income:

$

98.3

12.4

%

$

86.3

10.8

%

Acquired deferred revenue adjustment

(A)

1.7

2.9

Restructuring charges

(B)

3.2

3.7

COVID-19 expenses

(C)

3.8

—

Amortization of purchased intangible assets

(D)

40.4

44.3

Stock-based compensation and deferred compensation

(E)

4.5

19.1

Acquisition / divestiture items

(F)

10.8

1.1

Amortization of acquired capitalized commissions

(G)

(1.5)

(1.7)

Non-GAAP operating income:

$

161.2

20.3

%

$

155.7

19.4

%

NON-OPERATING EXPENSE, NET:

GAAP non-operating expense, net:

$

(18.9)

$

(11.1)

Deferred compensation

(E)

6.2

(2.8)

Acquisition / divestiture items

(F)

—

0.3

Non-GAAP non-operating expense, net:

$

(12.7)

$

(13.6)

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

(J)

(J)

INCOME TAX PROVISION:

GAAP income tax provision:

$

17.5

22.0

%

$

12.8

17.0

%

Non-GAAP items tax effected

(H)

15.2

11.4

Difference in GAAP and Non-GAAP tax rate

(I)

(6.7)

4.3

Non-GAAP income tax provision:

$

26.0

17.5

%

$

28.5

20.0

%

NET INCOME:

GAAP net income attributable to Trimble Inc.:

$

61.9

$

62.3

Acquired deferred revenue adjustment

(A)

1.7

2.9

Restructuring charges

(B)

3.2

3.7

COVID-19 expenses

(C)

3.8

—

Amortization of purchased intangible assets

(D)

40.4

44.3

Stock-based compensation and deferred compensation

(E)

10.7

16.3

Acquisition / divestiture items

(F)

10.8

1.4

Amortization of acquired capitalized commissions

(G)

(1.5)

(1.7)

Non-GAAP tax adjustments

(H)-(I)

(8.5)

(15.7)

Non-GAAP net income attributable to Trimble Inc.:

$

122.5

$

113.5

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share attributable to Trimble Inc.:

$

0.25

$

0.25

Acquired deferred revenue adjustment

(A)

0.01

0.01

Restructuring charges

(B)

0.01

0.02

COVID-19 expenses

(C)

0.02

—

Amortization of purchased intangible assets

(D)

0.16

0.17

Stock-based compensation and deferred compensation

(E)

0.04

0.06

Acquisition / divestiture items

(F)

0.04

0.01

Amortization of acquired capitalized commissions

(G)

(0.01)

(0.01)

Non-GAAP tax adjustments

(H)-(I)

(0.03)

(0.06)

Non-GAAP diluted net income per share attributable to Trimble Inc.:

$

0.49

$

0.45