GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2020

2019

2020

2019

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$

733.6

$

854.8

$

1,525.9

$

1,656.4

Acquired deferred revenue adjustment

(A)

1.6

1.0

3.3

3.9

Non-GAAP revenue:

$

735.2

$

855.8

$

1,529.2

$

1,660.3

GROSS MARGIN:

GAAP gross margin:

$

405.7

55.3

%

$

460.6

53.9

%

$

846.7

55.5

%

$

898.9

54.3

%

Acquired deferred revenue adjustment

(A)

1.6

1.0

3.3

3.9

Restructuring charges

(B)

0.1

—

0.4

0.2

COVID-19 expenses

(C)

0.3

—

0.3

—

Amortization of purchased intangible assets

(D)

23.2

23.8

46.7

48.0

Stock-based compensation and deferred compensation

(E)

2.0

1.5

2.7

2.9

Acquisition / divestiture items

(F)

—

—

1.7

—

Non-GAAP gross margin:

$

432.9

58.9

%

$

486.9

56.9

%

$

901.8

59.0

%

$

953.9

57.5

%

OPERATING EXPENSES:

GAAP operating expenses:

$

308.1

42.0

%

$

350.9

41.1

%

$

650.8

42.7

%

$

702.9

42.4

%

Restructuring charges

(B)

(5.1)

(2.9)

(8.0)

(6.4)

COVID-19 expenses

(C)

0.5

—

(3.3)

—

Amortization of purchased intangible assets

(D)

(16.6)

(19.7)

(33.5)

(39.8)

Stock-based compensation and deferred compensation

(E)

(23.4)

(16.8)

(27.2)

(34.5)

Acquisition / divestiture items

(F)

(1.9)

(2.0)

(11.0)

(3.1)

Amortization of acquired capitalized commissions

(G)

1.4

1.6

2.9

3.3

Non-GAAP operating expenses:

$

263.0

35.8

%

$

311.1

36.4

%

$

570.7

37.3

%

$

622.4

37.5

%

OPERATING INCOME:

GAAP operating income:

$

97.6

13.3

%

$

109.7

12.8

%

$

195.9

12.8

%

$

196.0

11.8

%

Acquired deferred revenue adjustment

(A)

1.6

1.0

3.3

3.9

Restructuring charges

(B)

5.2

2.9

8.4

6.6

COVID-19 expenses

(C)

(0.2)

—

3.6

—

Amortization of purchased intangible assets

(D)

39.8

43.5

80.2

87.8

Stock-based compensation and deferred compensation

(E)

25.4

18.3

29.9

37.4

Acquisition / divestiture items

(F)

1.9

2.0

12.7

3.1

Amortization of acquired capitalized commissions

(G)

(1.4)

(1.6)

(2.9)

(3.3)

Non-GAAP operating income:

$

169.9

23.1

%

$

175.8

20.5

%

$

331.1

21.7

%

$

331.5

20.0

%

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$

(6.7)

$

5.7

$

(25.6)

$

(5.4)

Deferred compensation

(E)

(6.8)

(1.1)

(0.6)

(3.9)

Acquisition / divestiture items

(F)

2.4

(13.1)

2.4

(12.8)

Non-GAAP non-operating expense, net:

$

(11.1)

$

(8.5)

$

(23.8)

$

(22.1)

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

GAAP and
Non-GAAP
Tax Rate %

(J)

(J)

(J)

(J)

INCOME TAX PROVISION:

GAAP income tax provision:

$

27.7

30.5

%

$

20.8

18.0

%

$

45.2

26.5

%

$

33.6

17.6

%

Non-GAAP items tax effected

(H)

20.7

9.3

35.9

20.7

Difference in GAAP and Non-GAAP tax rate

(I)

(21.3)

3.3

(28.0)

7.6

Non-GAAP income tax provision:

$

27.1

17.1

%

$

33.4

20.0

%

$

53.1

17.3

%

$

61.9

20.0

%

NET INCOME:

GAAP net income attributable to Trimble Inc.:

$

63.0

$

94.6

$

124.9

$

156.9

Acquired deferred revenue adjustment

(A)

1.6

1.0

3.3

3.9

Restructuring charges

(B)

5.2

2.9

8.4

6.6

COVID-19 expenses

(C)

(0.2)

—

3.6

—

Amortization of purchased intangible assets

(D)

39.8

43.5

80.2

87.8

Stock-based compensation and deferred compensation

(E)

18.6

17.2

29.3

33.5

Acquisition / divestiture items

(F)

4.3

(11.1)

15.1

(9.7)

Amortization of acquired capitalized commissions

(G)

(1.4)

(1.6)

(2.9)

(3.3)

Non-GAAP tax adjustments

(H)-(I)

0.6

(12.6)

(7.9)

(28.3)

Non-GAAP net income attributable to Trimble Inc.:

$

131.5

$

133.9

$

254.0

$

247.4

DILUTED NET INCOME PER SHARE:

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

$

0.25

$

0.37

$

0.50

$

0.62

Acquired deferred revenue adjustment

(A)

0.01

—

0.01

0.01

Restructuring charges

(B)

0.02

0.01

0.03

0.03

COVID-19 expenses

(C)

—

—

0.01

—

Amortization of purchased intangible assets

(D)

0.16

0.17

0.32

0.34

Stock-based compensation and deferred compensation

(E)

0.07

0.07

0.12

0.13

Acquisition / divestiture items

(F)

0.02

(0.04)

0.06

(0.04)

Amortization of acquired capitalized commissions

(G)

(0.01)

—

(0.01)

(0.01)

Non-GAAP tax adjustments

(H)-(I)

—

(0.05)

(0.03)

(0.11)

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

$

0.52

$

0.53

$

1.01

$

0.97

ADJUSTED EBITDA:

GAAP operating income:

$

97.6

$

109.7

$

195.9

$

196.0

Acquired deferred revenue adjustment

(A)

1.6

1.0

3.3

3.9

Restructuring charges

(B)

5.2

2.9

8.4

6.6

COVID-19 expenses

(C)

(0.2)

—

3.6

—

Amortization of purchased intangible assets

(D)

39.8

43.5

80.2

87.8

Stock-based compensation and deferred compensation

(E)

25.4

18.3

29.9

37.4

Acquisition / divestiture items

(F)

1.9

2.0

12.7

3.1

Amortization of acquired capitalized commissions

(G)

(1.4)

(1.6)

(2.9)

(3.3)

Non-GAAP operating income:

169.9

175.8

331.1

331.5

 Depreciation expense

9.7

10.1

19.5

20.3

Income from equity income investments, net

9.7

12.9

19.1

21.7

Adjusted EBITDA:

$

189.3

$

198.8

$

369.7

$

373.5