CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

First Quarter of

2017

* As Adjusted

Revenue:

Product

$ 497.8

$ 409.6

Service

128.8

106.6

Subscription

115.6

94.4

Total revenue

742.2

610.6

Cost of sales:

Product

235.4

193.4

Service

59.6

47.0

Subscription

27.9

26.9

Amortization of purchased intangible assets

23.1

19.0

Total cost of sales

346.0

286.3

Gross margin

396.2

324.3

Gross margin (%)

53.4 %

53.1 %

Operating expense:

Research and development

109.3

88.7

Sales and marketing

122.1

94.4

General and administrative

81.6

69.3

Restructuring charges

1.6

2.9

Amortization of purchased intangible assets

17.4

14.3

Total operating expense

332.0

269.6

Operating income

64.2

54.7

Non-operating income, net:

Interest expense, net

(9.5)

(6.1)

Foreign currency transaction gain, net

3.7

1.4

Income from equity method investments, net

4.9

4.2

Other income, net

3.4

9.5

Total non-operating income, net

2.5

9.0

Income before taxes

66.7

63.7

Income tax provision

8.0

13.9

Net income

58.7

49.8

Net gain attributable to noncontrolling interests

0.2

—

Net income attributable to Trimble Inc.

$ 58.5

$ 49.8

Earnings per share attributable to Trimble Inc.:

Basic

$ 0.24

$ 0.20

Diluted

$ 0.23

$ 0.19

Shares used in calculating earnings per share:

Basic

248.8

252.0

Diluted

253.2

255.9

* Prior-period information has been restated for the adoption of ASC 606, Revenue from Contracts with Customers.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

First Quarter of

Fiscal Year End

2018

2017

As of

* As Adjusted

Assets

Current assets:

Cash and cash equivalents

$ 274.5

$ 358.5

Short-term investments

—

178.9

Accounts receivable, net

475.7

427.7

Other receivables

33.4

42.8

Inventories

289.1

264.6

Other current assets

51.9

39.2

Total current assets

1,124.6

1,311.7

Property and equipment, net

184.3

174.0

Goodwill

2,726.4

2,287.1

Other purchased intangible assets, net

466.2

364.8

Deferred costs, non-current

35.6

35.0

Other non-current assets

136.6

143.7

Total assets

$ 4,673.7

$ 4,316.3

Liabilities and Shareholders' Equity

Current liabilities:

Short-term debt

$ 430.5

$ 128.4

Accounts payable

157.4

146.0

Accrued compensation and benefits

105.8

143.9

Deferred revenue

324.2

237.6

Accrued warranty expense

18.9

18.3

Other current liabilities

110.0

99.2

Total current liabilities

1,146.8

Long-term debt

691.8

785.5

Non-current deferred revenue

36.2

39.0

Deferred income tax liabilities

49.8

47.8

Income taxes payable

80.4

94.1

Other non-current liabilities

168.8

162.0

Total liabilities

2,173.8

1,901.8

Stockholders' equity:

Common stock

0.2

0.2

Additional paid-in-capital

1,497.0

1,461.1

Retained earnings

1,103.6

1,084.6

Accumulated other comprehensive loss

(101.1)

(131.4)

Total Trimble Inc. stockholders' equity

2,499.7

2,414.5

Noncontrolling interests

0.2

—

Total stockholders' equity

2,499.9

2,414.5

Total liabilities and stockholders' equity

$ 4,673.7

$ 4,316.3

* Prior-period information has been restated for the adoption of ASC 606, Revenue from Contracts with Customers.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

First Quarter of

2018

2017

* As Adjusted

Cash flow from operating activities:

Net income

$ 58.7

$ 49.8

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation expense

8.5

8.9

Amortization expense

40.5

33.3

Stock-based compensation

17.4

13.7

Income from equity method investments

(0.1)

(2.7)

Other non-cash items

(7.4)

(9.7)

Decrease (increase) in assets:

Accounts receivable

(29.4)

(34.0)

Inventories

(21.7)

(2.4)

Other current and non-current assets

(10.6)

(4.7)

Increase (decrease) in liabilities:

Accounts payable

11.1

3.5

Accrued compensation and benefits

(41.6)

(14.8)

Deferred revenue

69.6

53.3

Other liabilities

(12.1)

9.8

Net cash provided by operating activities

82.9

104.0

Cash flow from investing activities:

Acquisitions of businesses, net of cash acquired

(518.7)

(78.5)

Acquisitions of property and equipment

(18.2)

(5.7)

Purchases of short-term investments

(24.0)

(59.0)

Proceeds from maturities of short-term investments

6.2

24.4

Proceeds from sales of short-term investments

196.8

3.9

Other

4.4

19.6

Net cash used in investing activities

(353.5)

(95.3)

Cash flow from financing activities:

Issuance of common stock, net of tax withholdings

25.3

39.6

Repurchases of common stock

(53.0)

(14.2)

Proceeds from debt and revolving credit lines

591.0

252.0

Payments on debt and revolving credit lines

(383.0)

(226.1)

Other

—

(0.3)

Net cash provided by financing activities

180.3

51.0

Effect of exchange rate changes on cash and cash equivalents

6.3

5.0

Net increase (decrease) in cash and cash equivalents

(84.0)

64.7

Cash and cash equivalents - beginning of period

358.5

216.1

Cash and cash equivalents - end of period

$ 274.5

$ 280.8

* Prior period information has been restated for the adoption of ASC 606, Revenue from Contracts with Customers, and ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.

REPORTING SEGMENTS

(Dollars in millions)

(Unaudited)

Reporting Segments

Buildings

Resources

and

and

Infrastructure

Geospatial

Utilities

Transportation

FIRST QUARTER OF FISCAL 2018 :

Revenue

$ 224.7

$ 174.5

$ 159.2

$ 183.8

Operating income before corporate allocations

$ 43.5

$ 37.3

$ 51.7

$ 30.4

Operating margin (% of segment external net revenue)

19.4 %

21.4 %

32.5 %

16.5 %

FIRST QUARTER OF FISCAL 2017 as adjusted :

Revenue

$ 186.5

$ 149.6

$ 120.2

$ 154.3

Operating income before corporate allocations

$ 31.7

$ 27.9

$ 42.6

$ 23.5

Operating margin (% of segment external net revenue)

17.0 %

18.6 %

35.4 %

15.2 %

Note: First quarter of fiscal 2017 information has been restated for the adoption of ASC 606, Revenue from Contracts with Customers.

GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

First Quarter of

2017

* As Adjusted

Dollar

% of

Dollar

% of

Amount

Revenue

Amount

Revenue

GROSS MARGIN:

GAAP gross margin:

$ 396.2

53.4 %

$ 324.3

53.1 %

Restructuring charges

( A )

(0.2)

—%

0.5

0.1 %

Amortization of purchased intangible assets

( B )

23.1

3.1 %

19.0

3.1 %

Stock-based compensation

( C )

1.1

0.1 %

0.8

0.2 %

Amortization of acquisition-related inventory step-up

( D )

—

—%

0.1

—%

Acquisition / divestiture items

( E )

2.0

0.3 %

—

—%

Non-GAAP gross margin:

$ 422.2

56.9 %

$ 344.7

56.5 %

OPERATING EXPENSES:

GAAP operating expenses:

$ 332.0

44.8 %

$ 269.6

44.1 %

Restructuring charges

( A )

(1.6)

(0.2)%

(2.9)

(0.5)%

Amortization of purchased intangible assets

( B )

(17.4)

(2.3)%

(14.3)

(2.3)%

Stock-based compensation

( C )

(16.3)

(2.3)%

(12.9)

(2.1)%

Acquisition / divestiture items

( E )

(14.0)

(1.9)%

(2.1)

(0.3)%

Non-GAAP operating expenses:

$ 282.7

38.1 %

$ 237.4

38.9 %

OPERATING INCOME:

GAAP operating income:

$ 64.2

8.6 %

$ 54.7

9.0 %

Restructuring charges

( A )

1.4

0.2 %

3.4

0.6 %

Amortization of purchased intangible assets

( B )

40.5

5.4 %

33.3

5.4 %

Stock-based compensation

( C )

17.4

2.4 %

13.7

2.3 %

Amortization of acquisition-related inventory step-up

( D )

—

—%

0.1

—%

Acquisition / divestiture items

( E )

16.0

2.2 %

2.1

0.3 %

Non-GAAP operating income:

$ 139.5

18.8 %

$ 107.3

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income, net:

$ 2.5

$ 9.0

Acquisition / divestiture items

( E )

(2.8)

(8.1)

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

$ (0.3)

$ 0.9

GAAP and

GAAP and

Non-GAAP

Non-GAAP

Tax Rate %

( H )

Tax Rate %

( H )

INCOME TAX PROVISION:

GAAP income tax provision:

$ 8.0

12 %

$ 13.9

22 %

Non-GAAP items tax effected

( F )

8.7

9.8

Difference in GAAP and Non-GAAP tax rate

( G )

9.8

1.2

Non-GAAP income tax provision:

$ 26.5

19 %

23 %

NET INCOME:

GAAP net income attributable to Trimble Inc.:

$ 58.5

$ 49.8

Restructuring charges

( A )

1.4

3.4

Amortization of purchased intangible assets

( B )

40.5

33.3

Stock-based compensation

( C )

17.4

13.7

Amortization of acquisition-related inventory step-up

( D )

—

0.1

Acquisition / divestiture items

( E )

13.2

(6.0)

Non-GAAP tax adjustments

( F ) + ( G )

(18.5)

(11.0)

Non-GAAP net income attributable to Trimble Inc.:

$ 112.5

$ 83.3

DILUTED NET INCOME PER SHARE:

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

$ 0.23

$ 0.19

Restructuring charges

( A )

—

0.01

Amortization of purchased intangible assets

( B )

0.16

0.13

Stock-based compensation

( C )

0.07

0.05

Amortization of acquisition-related inventory step-up

( D )

—

—

Acquisition / divestiture items

( E )

0.05

(0.02)

Non-GAAP tax adjustments

( F ) + ( G )

(0.07)

(0.03)

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

$ 0.44

$ 0.33

* Prior-period information has been restated for the adoption of ASC 606, Revenue from Contracts with Customers.

FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION

(Unaudited)

Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures. The non-GAAP financial measures included in the previous table as well as detailed explanations to the adjustments to comparable GAAP measures, are set forth below:

Non-GAAP gross marginWe believe our investors benefit by understanding our non-GAAP gross margin as a way of understanding how product mix, pricing decisions and manufacturing costs influence our business. Non-GAAP gross margin excludes restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, and acquisition/divestiture items associated with the acceleration of acquisition stock options from GAAP gross margin. We believe that these exclusions offer investors additional information that may be useful to view trends in our gross margin performance.

Non-GAAP operating expensesWe believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue. Non-GAAP operating expenses exclude restructuring charges, amortization of purchased intangible assets, stock-based compensation, acquisition/divestiture items associated with external and incremental costs resulting directly from merger and acquisition activities such as legal, due diligence, integration, and other required closing costs including the acceleration of acquisition stock options from GAAP operating expenses. We believe that these exclusions offer investors supplemental information to facilitate comparison of our operating expenses to our prior results.

Non-GAAP operating incomeWe believe our investors benefit by understanding our non-GAAP operating income trends which are driven by revenue, gross margin, and spending. Non-GAAP operating income excludes restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition/divestiture items associated with external and incremental costs resulting directly from merger and acquisition activities such as legal, due diligence, integration, and other required closing costs including the acceleration of acquisition stock options. We believe that these exclusions offer an alternative means for our investors to evaluate current operating performance compared to results of other periods.

Non-GAAP non-operating income (expense), netWe believe this measure helps investors evaluate our non-operating income trends. Non-GAAP non-operating income (expense), net excludes acquisition/divestiture gains/losses associated with unusual acquisition related items such as intangible asset impairment charges, gains or losses related to the acquisitions, or sale of certain businesses and investments. We believe that these exclusions provide investors with a supplemental view of our ongoing financial results.

Non-GAAP income tax provisionWe believe that providing investors with the non-GAAP income tax provision is beneficial because it provides for consistent treatment of the excluded items in our non-GAAP presentation.

Non-GAAP net incomeThis measure provides a supplemental view of net income trends which are driven by non-GAAP income before taxes and our non-GAAP tax rate. Non-GAAP net income excludes restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition/divestiture items, and non-GAAP tax adjustments from GAAP net income. We believe our investors benefit from understanding these exclusions and from an alternative view of our net income performance as compared to our past net income performance.

Non-GAAP diluted net income per shareWe believe our investors benefit by understanding our non-GAAP operating performance as reflected in a per share calculation as a way of measuring non-GAAP operating performance by ownership in the company. Non-GAAP diluted net income per share excludes restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition/divestiture items, and non-GAAP tax adjustments from GAAP diluted net income per share. We believe that these exclusions offer investors a useful view of our diluted net income per share as compared to our past diluted net income per share.

These non-GAAP measures can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors. We believe some of our investors track our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Core operating performance excludes items that are non-cash, not expected to recur or not reflective of ongoing financial results. Management also believes that looking at our core operating performance provides a supplemental way to provide consistency in period to period comparisons. Accordingly, management excludes from non-GAAP those items relating to restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition/divestiture items, and non-GAAP tax adjustments. For detailed explanations of the adjustments made to comparable GAAP measures, see items (A) - ( H ) below.

( A )

Restructuring charges.Included in our GAAP presentation of cost of sales and operating expenses, restructuring charges recorded are primarily for employee compensation resulting from reductions in employee headcount in connection with our company restructurings. We exclude restructuring charges from our non-GAAP measures because we believe they do not reflect expected future operating expenses, they are not indicative of our core operating performance, and they are not meaningful in comparisons to our past operating performance. We have incurred restructuring expense in each of the periods presented. However the amount incurred can vary significantly based on whether a restructuring has occurred in the period and the timing of headcount reductions.

( B )

Amortization of purchased intangible assets.Included in our GAAP presentation of gross margin and operating expenses is amortization of purchased intangible assets. U.S. GAAP accounting requires that intangible assets are recorded at fair value and amortized over their useful lives. Consequently, the timing and size of our acquisitions will cause our operating results to vary from period to period, making a comparison to past performance difficult for investors. This accounting treatment may cause differences when comparing our results to companies that grow internally because the fair value assigned to the intangible assets acquired through acquisition may significantly exceed the equivalent expenses that a company may incur for similar efforts when performed internally. Furthermore, the useful life that we use to amortize our intangible assets over may be substantially different from the time period that an internal growth company incurs and recognizes such expenses. We believe that by excluding the amortization of purchased intangible assets, which primarily represents technology and/or customer relationships already developed, it provides an alternative way for investors to compare our operations pre-acquisition to those post-acquisitions and to those of our competitors that have pursued internal growth strategies. However, we note that companies that grow internally will incur costs to develop intangible assets that will be expensed in the period incurred, which may make a direct comparison more difficult.

( C )

Stock-based compensation. Included in our GAAP presentation of cost of sales and operating expenses, stock-based compensation consists of expenses for employee stock options and awards and purchase rights under our employee stock purchase plan. We exclude stock-based compensation expense from our non-GAAP measures because some investors may view it as not reflective of our core operating performance as it is a non-cash expense. For the first quarter of fiscal years 2018 and 2017, stock-based compensation was allocated as follows:

First Quarter of

(Dollars in millions)

2018

Cost of sales

$ 0.8

Research and development

3.1

2.4

Sales and marketing

2.3

2.2

General and administrative

10.9

8.3

Total stock-based compensation

$ 13.7

( D )

Amortization of acquisition-related inventory step-up. The purchase accounting entries associated with our business acquisitions require us to record inventory at its fair value, which is sometimes greater than the previous book value of the inventory. Included in our GAAP presentation, the increase in inventory value is amortized to cost of sales over the period that the related product is sold. We exclude inventory step-up amortization from our non-GAAP measures because it is a non-cash expense that we do not believe is indicative of our ongoing operating results. We further believe that excluding this item from our non-GAAP results is useful to investors in that it allows for period-over-period comparability.

( E )

Acquisition / divestiture items. Included in our GAAP presentation of cost of sales and operating expenses, acquisition costs consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal, due diligence, integration, and other closing costs, including the acceleration of acquisition stock options, as well as adjustments to the fair value of earn-out liabilities. Included in our GAAP presentation of non-operating income (expense), net, acquisition/divestiture items includes unusual acquisition, investment, and/or divestiture gains/losses. Although we do numerous acquisitions, the costs that have been excluded from the non-GAAP measures are costs specific to particular acquisitions. These are one-time costs that vary significantly in amount and timing and are not indicative of our core operating performance.

( F )

Non-GAAP items tax effected. This amount adjusts the provision for income taxes to reflect the effect of the non-GAAP items ( A ) - ( E ) on non-GAAP net income. We believe this information is useful to investors because it provides for consistent treatment of the excluded items in this non-GAAP presentation.

( G )

Difference in GAAP and Non-GAAP tax rate. This amount represents the difference between the GAAP and Non-GAAP tax rates applied to the Non-GAAP operating income plus the Non-GAAP non-operating income (expense), net. We believe that investors benefit from excluding this amount from our non-GAAP income tax provision because it facilitates a comparison of the non-GAAP tax provision in the current and prior periods.

( H )

GAAP and non-GAAP tax rate %. These percentages are defined as GAAP income tax provision as a percentage of GAAP income before taxes and non-GAAP income tax provision as a percentage of non-GAAP income before taxes. We believe that investors benefit from a presentation of non-GAAP tax rate percentage as a way of facilitating a comparison to non-GAAP tax rates in prior periods.

NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

As Reported

ASC 606 Adjustments

As Adjusted

Fiscal Year End

Fiscal Year End

Fiscal Year End

Fiscal Year End

Fiscal Year End

Fiscal Year End

As of

2017

2016

2017

2016

2017

2016

Assets

Current assets:

Cash and cash equivalents

$ 358.5

$ 216.1

$ —

$ —

$ 358.5

$ 216.1

Short term investments

178.9

111.1

—

—

178.9

111.1

Accounts receivable, net

414.8

354.8

12.9

11.4

427.7

366.2

Other receivables

42.8

35.4

—

—

42.8

35.4

Inventories

271.8

218.8

(7.2)

(5.5)

264.6

213.3

Other current assets

50.3

42.5

(11.1)

(2.7)

39.2

39.8

Total current assets

1,317.1

978.7

(5.4)

3.2

1,311.7

981.9

Property and equipment, net

174.0

144.2

—

—

174.0

144.2

Goodwill

2,287.1

2,077.6

—

—

2,287.1

2,077.6

Other purchased intangible assets, net

364.8

333.3

—

—

364.8

333.3

Deferred costs, non-current

—

—

35.0

30.3

35.0

30.3

Other non-current assets

155.2

140.0

(11.5)

(15.1)

143.7

124.9

Total assets

$ 4,298.2

$ 3,673.8

$ 18.1

$ 18.4

$ 4,316.3

$ 3,692.2

Liabilities and Stockholders' Equity

Current liabilities:

Short-term debt

$ 128.4

$ 130.3

$ —

$ —

$ 128.4

$ 130.3

Accounts payable

146.1

109.8

(0.1)

0.1

146.0

109.9

Accrued compensation and benefits

143.0

97.5

0.9

0.6

143.9

98.1

Deferred revenue

272.4

246.5

(34.8)

(34.7)

237.6

211.8

Accrued warranty expense

18.3

17.2

—

—

18.3

17.2

Other current liabilities

101.0

86.9

(1.8)

(4.0)

99.2

82.9

Total current liabilities

809.2

688.2

(35.8)

(38.0)

773.4

650.2

Long-term debt

785.5

489.6

—

—

785.5

489.6

Non-current deferred revenue

41.0

37.7

(2.0)

(3.1)

39.0

34.6

Deferred income tax liabilities

40.4

38.8

7.4

10.0

47.8

48.8

Income taxes payable

94.1

—

—

—

94.1

—

Other non-current liabilities

162.0

113.8

—

—

162.0

113.8

Total liabilities

1,932.2

1,368.1

(30.4)

(31.1)

1,901.8

1,337.0

Stockholders' equity:

Common stock

0.2

0.3

—

—

0.2

0.3

Additional paid-in capital

1,461.1

1,348.3

—

—

1,461.1

1,348.3

Retained earnings

1,035.9

1,177.1

48.7

51.4

1,084.6

1,228.5

Accumulated other comprehensive loss

(131.2)

(219.9)

(0.2)

(1.9)

(131.4)

(221.8)

Total Trimble Inc. stockholders' equity

2,366.0

2,305.8

48.5

49.5

2,414.5

2,355.3

Noncontrolling interests

—

(0.1)

—

—

—

(0.1)

Total stockholders' equity

2,366.0

2,305.7

48.5

49.5

2,414.5

2,355.2

Total liabilities and stockholders' equity

$ 4,298.2

$ 3,673.8

$ 18.1

$ 18.4

$ 4,316.3

$ 3,692.2

NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

As Reported

ASC 606 & ASU 2017-07 Adjustments

As Adjusted

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

2017

2016

2017

2016

2017

2016

Revenue:

Product

$ 1,763.8

$ 1,562.0

$ -

$ 8.6

$ 1,763.8

$ 1,570.6

Service

461.6

430.2

13.8

6.5

475.4

436.7

Subscription

428.8

370.0

(21.5)

(15.2)

407.3

354.8

Total revenue

2,654.2

2,362.2

(7.7)

(0.1)

2,646.5

2,362.1

Cost of sales:

Product

866.5

760.8

9.1

3.2

875.6

764.0

Service

196.3

169.9

(1.9)

0.2

194.4

170.1

Subscription

113.0

104.9

0.1

-

113.1

104.9

Amortization of purchased intangible assets

85.8

88.6

-

-

85.8

88.6

Total cost of sales

1,261.6

1,124.2

7.3

3.4

1,268.9

1,127.6

Gross margin

1,392.6

1,238.0

(15.0)

(3.5)

1,377.6

1,234.5

Gross margin (%)

52.5%

52.4%

52.1%

52.3%

Operating expense:

Research and development

370.2

349.6

-

-

370.2

349.6

Sales and marketing

404.2

377.6

(4.1)

(2.9)

400.1

374.7

General and administrative

302.3

256.0

(0.6)

-

301.7

256.0

Restructuring charges

6.9

11.6

-

-

6.9

11.6

Amortization of purchased intangible assets

63.0

62.2

-

-

63.0

62.2

Total operating expense

1,146.6

1,057.0

(4.7)

(2.9)

1,141.9

1,054.1

Operating income

246.0

181.0

(10.3)

(0.6)

235.7

180.4

Non-operating income (expense), net:

Interest expense, net

(25.0)

(25.9)

(0.2)

-

(25.2)

(25.9)

Foreign currency transaction gain (loss), net

3.3

(1.9)

-

-

3.3

(1.9)

Income from equity method investments, net

29.5

17.6

-

-

29.5

17.6

Other income, net

5.3

5.9

(0.4)

-

4.9

5.9

Total non-operating income (expense), net

13.1

(4.3)

(0.6)

-

12.5

(4.3)

Income before taxes

259.1

176.7

(10.9)

(0.6)

248.2

176.1

Income tax provision

137.9

44.5

(8.2)

(0.6)

129.7

43.9

Net income

121.2

132.2

(2.7)

-

118.5

132.2

Net gain (loss) attributable to noncontrolling interests

0.1

(0.2)

-

-

0.1

(0.2)

Net income attributable to Trimble Inc.

$ 121.1

$ 132.4

$ (2.7)

$ 118.4

$ 132.4

Net income per share attributable to Trimble Inc.

Basic

$ 0.48

$ 0.53

$ (0.01)

$ -

$ 0.47

$ 0.53

Diluted

$ 0.47

$ 0.52

$ (0.01)

$ -

$ 0.46

$ 0.52

Shares used in calculating net income per share:

Basic

252.1

250.5

-

-

252.1

250.5

Diluted

256.7

253.9

-

-

256.7

253.9

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

NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

As Reported

ASC 606 Adjustments *ASU 2016-15 Adjustments

As Adjusted

Fiscal Years

Fiscal Years

Fiscal Years

2017

2016

2017

2016

2017

2016

Cash flow from operating activities:

Net income

$ 121.2

$ 132.2

$ (2.7)

$ —

$ 118.5

$ 132.2

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation expense

34.6

37.0

—

—

34.6

37.0

Amortization expense

148.8

150.8

—

—

148.8

150.8

Stock-based compensation

64.8

52.6

—

—

64.8

52.6

Income from equity method investments

(29.5)

(17.6)

18.1

*

17.6

*

(11.4)

—

Other non-cash items

6.9

19.0

(8.2)

(0.6)

(1.3)

18.4

Decrease (increase) in assets:

Accounts receivable

(41.6)

1.2

(1.1)

2.6

(42.7)

3.8

Inventories

(38.7)

24.0

1.4

2.2

(37.3)

26.2

Other current and non-current assets

(15.5)

0.2

5.5

2.0

(10.0)

2.2

Increase (decrease) in liabilities:

Accounts payable

25.9

10.9

(0.2)

(0.1)

25.7

10.8

Accrued compensation and benefits

33.7

0.6

0.3

(0.3)

34.0

0.3

Deferred revenue

16.4

26.1

2.9

(6.6)

19.3

19.5

Income taxes payable

88.2

(16.1)

—

—

88.2

(16.1)

Accrued liabilities

(3.3)

(7.3)

1.8

*

0.7

*

(1.5)

(6.6)

Net cash provided by operating activities

411.9

413.6

17.8

17.5

429.7

431.1

Cash flow from investing activities:

Acquisitions of businesses, net of cash acquired

(293.1)

(38.8)

12.9

*

15.1

*

(280.2)

(23.7)

Acquisitions of property and equipment

(43.7)

(26.0)

—

—

(43.7)

(26.0)

Purchases of short-term investments

(288.0)

(113.3)

—

—

(288.0)

(113.3)

Proceeds from maturities of short-term investments

122.1

2.4

—

—

122.1

2.4

Proceeds from sales of short-term investments

97.7

—

—

—

97.7

—

Dividends received from equity method investments