CRITICAL ACCOUNTING POLICIES AND ESTIMATES Management's Discussion and Analysis of Financial Condition and Results of Operations is based on our Condensed Consolidated Financial Statements. The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles requires us to make judgments, assumptions, and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying Notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Management believes that the Notes to the Condensed Consolidated Financial Statements have had no significant changes during the first quarter of fiscal 2020 as compared to the items that we disclosed as our critical accounting policies and estimates in the Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2019 Annual Report on Form 10-K.



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RECENT ACCOUNTING PRONOUNCEMENTS
For a summary of recent accounting pronouncements applicable to our Condensed
Consolidated Financial Statements, see Note 2 of the Notes to our Condensed
Consolidated Financial Statements in Item 1, which is incorporated herein by
reference.
EXECUTIVE LEVEL OVERVIEW
Trimble began operations in 1978 and was originally incorporated in California
as Trimble Navigation Limited in 1981. On October 1, 2016, Trimble Navigation
Limited changed its name to Trimble Inc. and changed its state of incorporation
from the State of California to the State of Delaware.
Trimble is a leading provider of technology solutions that enable professionals
and field mobile workers to improve or transform their work processes. Our
comprehensive work process solutions are used across a range of industries
including agriculture, architecture, civil engineering, survey and land
administration, construction, geospatial, government, natural resources,
transportation, and utilities. Representative Trimble customers include
engineering and construction firms, contractors, owners, surveying companies,
farmers and agricultural companies, trucking companies, energy, utility
companies, and state, federal, and municipal governments.
Trimble focuses on integrating its broad technological and application
capabilities to create vertically-focused, system-level solutions that transform
how work is done within the industries we serve. The integration of sensors,
software, connectivity, and information in our portfolio gives us the unique
ability to provide an information model specific to the customer's workflow. For
example, in construction, our strategy is centered on the concept of a
"constructible model" that is at the center of our "Connected Construction"
solutions, which provides real-time, connected, and cohesive information
environments for the design, build, and operational phases of construction
projects. In agriculture, we continue to develop "Connected Farm" solutions to
optimize operations across the agriculture workflow. In long haul trucking, our
"Connected Fleet" solutions provide transportation companies with tools to
enhance fuel efficiency, safety, and transparency through connected vehicles and
fleets across the enterprise.
Our growth strategy is centered on multiple elements:
•      Focus on attractive markets with significant growth and profitability
       potential - We focus on large markets historically underserved by
       technology that offer significant potential for long-term revenue growth,
       profitability, and market leadership. Our core industries such as
       construction, agriculture, and transportation markets are each
       multi-trillion dollar global industries that operate in increasingly
       demanding environments with technology adoption in the early phases
       relative to other industries. With the emergence of mobile computing
       capabilities, the increasing technological know-how of end users and the
       compelling return on investment to our customers, we believe many of our
       markets are attractive for substituting Trimble's technology and solutions
       in place of traditional operating methods.


•      Domain knowledge and technological innovation that benefit a diverse
       customer base - We have redefined our technological focus from
       hardware-driven point solutions to integrated work process solutions by
       developing domain expertise and heavily reinvesting in R&D and
       acquisitions. We have been spending approximately 15% of revenue over the
       past two years on R&D and currently have over 1,200 unique patents. We
       intend to continue to take advantage of our technology portfolio and deep
       domain knowledge to quickly and cost-effectively deliver specific,
       targeted solutions to each of the vertical markets we serve. We look for
       opportunities where the potential for technological change is high and
       that have a requirement for the integration of multiple technologies into
       complete vertical solutions.


•      Increasing focus on software and subscription offerings - Software and
       subscription services are increasingly important elements of our solutions
       and are core to our growth strategy. Trimble has an open application
       programming interface philosophy and open vendor environment, which leads
       to increased adoption of our software and subscription offerings. We
       believe that increased recurring revenue from these solutions will provide
       us with enhanced business visibility over time. Professional services
       constitute an additional growth channel that helps our customers integrate
       and optimize the use of our offerings in their environment.


•      Geographic expansion with localization strategy - We view international
       expansion as an important element of our strategy, and we continue to
       position ourselves in geographic markets that will serve as important
       sources of future growth. We currently have a physical presence in over 40
       countries and distribution channels over 85 countries.


•      Optimized go to market strategies to best access our markets - We utilize
       vertically focused distribution channels that leverage domain expertise to
       best serve the needs of individual markets both domestically and abroad.
       These channel capabilities include independent dealers, joint ventures,
       original equipment manufacturers ("OEM"), and sales and distribution
       alliances with key partners, such as CNH Global, Caterpillar, and Nikon,
       as well as direct sales to end-users. This provides us with broad market
       reach and localization capabilities to effectively serve our markets.


•      Strategic acquisitions - Organic growth continues to be our primary focus,
       while acquisitions serve to enhance our market position. We acquire
       businesses that bring domain expertise, technology, products, or
       distribution capabilities that augment



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our portfolio and allow us to penetrate existing markets more effectively, or to
establish a market beachhead. Our success in targeting and effectively
integrating acquisitions is an important aspect of our growth strategy.
Trimble's focus on these growth drivers has led, over time, to growth in revenue
and profitability as well as an increasingly diversified business model.
Software and subscription growth is driving increased recurring revenue and
leading to improved visibility in some of our businesses. As our solutions have
expanded, our go-to-market model has also evolved with a balanced mix between
direct, distribution, and OEM customers, and an increasing number of enterprise
level customer relationships.
We continue to experience a shift in revenue towards a more significant mix of
software, recurring revenue, and services,which represented 58% of first quarter
revenue. Additionally, our recurring revenue, which consists of software
maintenance and subscription revenue, was up 7% year-over-year.
During the first quarter of fiscal 2020, we acquired privately held Kuebix, a
leading transportation management system provider and creator of North America's
largest connected shipping community. This acquisition will enable us to bring
together our network of private fleet and commercial carrier customers, which
collectively represent more than 1.3 million commercial trucks in North America,
with Kuebix's extensive community of more than 21,000 shipping companies,
creating a new platform for planning, execution and, freight demand-capacity
matching.
COVID-19 UPDATE
In early March 2020, a novel coronavirus disease ("COVID-19") was characterized
as a pandemic by the World Health Organization. COVID-19 has spread rapidly,
with most countries and territories worldwide experiencing confirmed cases of
COVID-19, and a high concentration of cases in the United States and many other
countries in which we operate. The rapid spread has resulted in authorities
around the world implementing numerous measures to contain the virus such as
travel bans and restrictions, quarantines, shelter-in-place orders, and business
shutdowns.
As the COVID-19 pandemic unfolded globally, we moved quickly to transition all
our employees to safe working conditions to ensure that our employees have the
flexibility and resources they need to stay safe and healthy. Most of our
employee base is currently working remotely and for those who perform essential
services on-site, we have implemented measures to insure a safe and secure
working environment based upon health authority guidance. To support our
customers, we are continuing to provide the high standard of products and
services they expect. Additionally, our Trimble charitable organization and
employees are helping to support our local communities.
The broader implications of COVID-19 on our results of operations and overall
financial performance remain uncertain. The COVID-19 pandemic and its adverse
effects have become more prevalent in the locations where we, our customers,
suppliers, or third-party business partners conduct business. During the first
two months of 2020, while COVID-19 was primarily limited to specific countries
in Asia and Europe, overall we continued to see growth. During the second half
of March, the contraction of the global economy resulted in a decline in sales.
We expect our hardware and associated software revenue will be impacted in the
second quarter and the rest of the year by economic disruptions related to
COVID-19. In addition, we expect that our Geospatial segment will continue to be
impacted by oil and gas markets. Our recurring revenue, including software
maintenance and subscription, is expected to remain relatively stable. Operating
income was relatively strong for the quarter, however we expect that operating
income in the second quarter and the rest of the year will be impacted by
revenue and gross margin shortfalls. In addition to travel and other natural
reductions in spending from COVID-19 restrictions, we have actively implemented
cost reductions, all of which are expected to partially offset revenue and gross
margin shortfalls. We will continue to evaluate the nature and extent of the
impact to our business, consolidated results of operations, and financial
condition.
See "Risk Factors" below for further discussion of the possible impact of the
COVID-19 pandemic on our business.
RESULTS OF OPERATIONS
Overview
The following table is a summary of revenue, gross margin, and operating income
for the periods indicated and should be read in conjunction with the narrative
descriptions below:

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                                                         First Quarter of
                                                         2020        2019
(In millions)
Revenue:
Product                                               $  463.8     $ 488.4
Service                                                  162.4       159.2
Subscription                                             166.1       154.0
Total revenue                                         $  792.3     $ 801.6
Gross margin                                          $  441.0     $ 438.3
Gross margin as a % of revenue                            55.7 %      54.7 %
Operating income                                      $   98.3     $  86.3
Operating income as a % of revenue                        12.4 %      10.8 %
Diluted earnings per share                            $   0.25     $  0.25

Total non-GAAP revenue *                              $  794.0     $ 804.5
Non-GAAP operating income *                           $  161.2     $ 155.7

Non-GAAP operating income as a % of Non-GAAP Revenue* 20.3 % 19.4 % Non-GAAP diluted earnings per share *

$   0.49     $  0.45


 * See SUPPLEMENTAL DISCLOSURE OF NON-GAAP FINANCIAL MEASURES for a
reconciliation of our GAAP results to our non-GAAP measures.
Revenue
Total revenue decreased $9.3 million or 1% for the first quarter of fiscal 2020,
compared to the corresponding period in fiscal 2019, due to declines in
Geospatial and Transportation, partially offset by organic growth and
acquisition revenue in Resources and Utilities and to a lesser extent, Buildings
and Infrastructure organic growth.
By revenue category, product revenue decreased $24.6 million or 5%, service
revenue increased $3.2 million or 2%, and subscription revenue increased $12.1
million or 8% for the first quarter of fiscal 2020, compared to the
corresponding period in fiscal 2019. Product revenue decreased primarily due to
weakness in our Geospatial and Transportation hardware sales. Service and
subscription revenue increased primarily due to organic growth in Buildings and
Infrastructure and organic growth and acquisition revenue in Resources and
Utilities.
Gross Margin
Gross margin varies due to a combination of factors including product mix,
pricing, and customer mix, including distribution partners and end user sales.
Gross margin increased by $2.7 million for the first quarter of fiscal 2020,
compared to the corresponding period in fiscal 2019, primarily due to Geospatial
product mix and Resources and Utilities revenue growth and product mix,
partially offset by Transportation revenue declines.
Gross margin as a percentage of total revenue was 55.7% for the first quarter of
fiscal 2020, compared to 54.7% for the corresponding period in fiscal 2019,
driven by increased higher margin software sales in Geospatial and Resources and
Utilities.

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Operating Income
Operating income increased by $12.0 million for the first quarter of fiscal
2020, compared to the corresponding period in fiscal 2019, due to strong
operating results in Resources and Utilities and favorable Corporate expense.
This operating income increase was partially offset by Transportation revenue
declines.
Operating income as a percentage of total revenue was 12.4% for the first
quarter of fiscal 2020, compared to 10.8% for the corresponding period in fiscal
2019, due to the same factors described in the preceding paragraph.
Research and Development, Sales and Marketing, and General and Administrative
Expense
Research and development (R&D), sales and marketing (S&M), and general and
administrative (G&A) expense are summarized in the following table:
                              First Quarter of
                              2020        2019
(In millions)
Research and development   $  118.2     $ 118.2
Percentage of revenue          14.9 %      14.7 %
Sales and marketing        $  131.7     $ 127.4
Percentage of revenue          16.6 %      15.9 %
General and administrative $   73.0     $  82.8
Percentage of revenue           9.2 %      10.3 %
Total                      $  322.9     $ 328.4


Overall, R&D, S&M, and G&A expenses decreased by $5.5 million or 2% for the
first quarter of fiscal 2020, compared to the corresponding period in fiscal
2019.
Research and development expense remained flat for the first quarter of fiscal
2020, compared to the corresponding period in fiscal 2019. Research and
development expenses from the Cityworks and Kuebix acquisitions were not
applicable in the prior year and were wholly offset by lower consulting fees and
favorable foreign currency impacts.
Overall, research and development expense was 14.9% of revenue in the first
quarter of fiscal 2020, compared to 14.7% in the corresponding period in fiscal
2019. We believe that the development and introduction of new solutions are
critical to our future success, and we expect to continue active development of
new products.
Sales and marketing expense increased by $4.3 million or 3% for the first
quarter of fiscal 2020, compared to the corresponding period in fiscal 2019. The
increase was due to the Cityworks and Kuebix acquisitions not applicable in the
prior year, partially offset by travel reductions and favorable foreign currency
impacts.
Overall, spending for sales and marketing was 16.6% of revenue in the first
quarter of fiscal 2020, respectively, compared to 15.9% in the corresponding
period in fiscal 2019.
General and administrative expense decreased by $9.8 million or 12% for the
first quarter of fiscal 2020, compared to the corresponding period in fiscal
2019. The expense decrease was due to lower compensation expense, primarily
incentive compensation plans and, to a lesser extent, favorable foreign currency
impacts.
Overall, general and administrative spending was 9.2% of revenue in the first
quarter of fiscal 2020, compared to 10.3% in the corresponding period in fiscal
2019.

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Amortization of Purchased Intangible Assets


                                                        First Quarter of
                                                         2020          2019
(In millions)
Cost of sales                                       $    23.5         $ 24.2
Operating expenses                                       16.9           20.1

Total amortization expense of purchased intangibles $ 40.4 $ 44.3




Total amortization expense of purchased intangibles represented 5% of revenue in
the first quarter of fiscal 2020, compared to 6% in the corresponding period in
fiscal 2019. The expense for the first quarter of fiscal 2020 was lower as
compared to the corresponding period in fiscal 2019 due to the expiration of
prior acquisitions' amortization.
Non-operating Expense, Net
The components of Non-operating expense, net, were as follows:
                                              First Quarter of
                                              2020        2019
(In millions)
Interest expense, net                      $  (20.5 )   $ (21.9 )

Income from equity method investments, net 9.4 8.8 Other income (expense), net

                    (7.8 )       2.0
Total non-operating expense, net           $  (18.9 )   $ (11.1 )

Non-operating expense, net increased by $7.8 million for the first quarter of fiscal 2020, compared to the corresponding period in fiscal 2019. The increase was primarily due to fluctuations in our deferred compensation plan, partially offset by lower interest costs associated with a decrease in interest rates, and an increase in joint venture profitability.



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Income Tax Provision
Our effective income tax rate for the first quarter of fiscal 2020 was 22%, as
compared to 17% in the corresponding period in fiscal 2019. The increase was
primarily due to geographic income mix and a lower tax benefit from stock-based
compensation deductions.
Results by Segment
We report our financial performance, including revenue and operating income,
based on four reportable segments: Buildings and Infrastructure, Geospatial,
Resources and Utilities, and Transportation.
Our Chief Executive Officer (chief operating decision maker) views and evaluates
operations based on the results of our reportable operating segments under our
management reporting system. For additional discussion of our segments, see Note
6 of the Notes to the Condensed Consolidated Financial Statements.
The following table is a summary of revenue and operating income by segment:
                                                            First Quarter of
                                                            2020        2019
(In millions)
Buildings and Infrastructure
Segment revenue                                          $  296.9     $ 294.7
Segment revenue as a percent of total revenue                  37 %        37 %
Segment operating income                                 $   60.8     $  62.5

Segment operating income as a percent of segment revenue 20.5 % 21.2 % Geospatial Segment revenue

$  146.2     $ 161.2
Segment revenue as a percent of total revenue                  18 %        20 %
Segment operating income                                 $   30.5     $  29.4

Segment operating income as a percent of segment revenue 20.9 % 18.2 % Resources and Utilities Segment revenue

$  180.3     $ 159.5
Segment revenue as a percent of total revenue                  23 %        20 %
Segment operating income                                 $   66.9     $  51.1

Segment operating income as a percent of segment revenue 37.1 % 32.0 % Transportation Segment revenue

$  170.6     $ 189.1
Segment revenue as a percent of total revenue                  21 %        23 %
Segment operating income                                 $   16.9     $  31.2

Segment operating income as a percent of segment revenue 9.9 % 16.5 %





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The following table is a reconciliation of our consolidated segment operating income to consolidated income before taxes:


                                                      First Quarter of
                                                      2020        2019
(In millions)
Consolidated segment operating income              $  175.1     $ 174.2
Unallocated corporate expense                         (13.9 )     (18.5 )
Restructuring charges                                  (3.2 )      (3.7 )
COVID-19 expenses                                      (3.8 )         -
Acquired deferred revenue adjustment                   (1.7 )      (2.9 )
Amortization of purchased intangible assets           (40.4 )     (44.3 )

Stock-based compensation and deferred compensation (4.5 ) (19.1 ) Amortization of acquired capitalized commissions 1.5 1.7 Acquisition / divestiture items

                       (10.8 )      (1.1 )
Consolidated operating income                          98.3        86.3
Non-operating expense, net                            (18.9 )     (11.1 )
Consolidated income before taxes                   $   79.4     $  75.2


Buildings and Infrastructure
Buildings and Infrastructure revenue increased by $2.2 million or 1% for the
first quarter of fiscal 2020, compared to the corresponding period in fiscal
2019. Segment operating income decreased $1.7 million or 3% for the first
quarter of fiscal 2020, respectively, compared to the corresponding period in
fiscal 2019.
For the first quarter of fiscal 2020, revenue increased due to continued
strength in services, primarily software maintenance and subscription revenue.
Civil engineering and construction experienced growth in service and
subscription revenue, and Viewpoint experienced subscription revenue growth as
well. Despite a slight revenue increase, segment operating income decreased
slightly for the first quarter of fiscal 2020 due to increased trade show costs.
Geospatial
Geospatial revenue decreased $15.0 million or 9% for the first quarter of fiscal
2020, respectively, compared to the corresponding period in fiscal 2019. Segment
operating income increased by $1.1 million or 4% for the first quarter of fiscal
2020, respectively, compared to the corresponding period in fiscal 2019.
For the first quarter of fiscal 2020, revenue decreased mainly due to weakness
in geospatial survey sales from weak macroeconomic conditions including weakness
in oil and gas markets as well as COVID-19 impacts. Despite the revenue
shortfall, segment operating income increased for the first quarter of fiscal
2020 primarily due to higher margin software survey sales and strong cost
control.
Resources and Utilities
Resources and Utilities revenue increased $20.8 million or 13% for the first
quarter of fiscal 2020, compared to the corresponding period in fiscal 2019.
Segment operating income increased by $15.8 million or 31% for the first quarter
of fiscal 2020, compared to the corresponding period in fiscal 2019.
For the first quarter of fiscal 2020, revenue increased mainly due to relative
strength in agriculture, particularly in Europe and Latin America, as well as
growth in positioning services. Acquisitions, including Cityworks, also
contributed. Segment operating income increased for the first quarter of fiscal
2020 primarily due to revenue and gross margin expansion and strong cost
control.

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Transportation


Transportation revenue decreased by $18.5 million or 10% for the first quarter
of fiscal 2020, compared to the corresponding period in fiscal 2019. Segment
operating income decreased $14.3 million or 46% for the first quarter of fiscal
2020, compared to the corresponding period in fiscal 2019.
For the first quarter of fiscal 2020, revenue decreased primarily due to reduced
hardware upgrades and subscriber declines, attributable in part due to
challenges with the ELD transition, as well as COVID-19 impacts. Segment
operating income decreased for the first quarter of fiscal 2020, primarily due
to the revenue shortfall, as well as higher operating expense primarily from the
Kuebix acquisition.
OFF-BALANCE SHEET FINANCINGS AND LIABILITIES
Other than inventory purchases and other commitments incurred in the normal
course of business, we do not have any off-balance sheet financing arrangements
or liabilities.
In the normal course of business to facilitate sales of our products, we
indemnify other parties, including customers, lessors, and parties to other
transactions with us, with respect to certain matters. We may agree to hold the
other party harmless against losses arising from a breach of representations or
covenants, or out of intellectual property infringement or other claims made
against certain parties. These agreements may limit the time within which an
indemnification claim can be made and the amount of the claim. In connection
with divesting some of our businesses or assets, we may also indemnify
purchasers for certain matters in the normal course of business, such as
breaches of representations, covenants, or excluded liabilities. In addition, we
entered into indemnification agreements with our officers and directors, and our
bylaws contain similar indemnification obligations to our agents.
It is not possible to determine the maximum potential amount under these
indemnification agreements due to the limited history of prior indemnification
claims and the unique facts and circumstances involved in each particular
agreement. Historically, payments made by us under these agreements were not
material and no liabilities have been recorded for these obligations on the
Condensed Consolidated Balance Sheets as of the end of the first quarter of
fiscal 2020 and fiscal year end 2019.

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LIQUIDITY AND CAPITAL RESOURCES


                                                              First Quarter of     Fiscal Year End
As of                                                               2020                2019
(In millions, except percentages)
Cash and cash equivalents                                    $          216.8     $         189.2
As a percentage of total assets                                           3.2 %               2.8 %
Principal balance of outstanding debt                        $        1,985.7     $       1,854.0

                                                                        First Quarter of
                                                                    2020                2019
(In millions)
Cash provided by operating activities                        $          155.7     $         147.6
Cash used in investing activities                                      (214.4 )              (9.6 )
Cash provided by (used in) financing activities                          99.6               (94.3 )
Effect of exchange rate changes on cash and cash equivalents            (13.3 )               0.5
Net increase in cash and cash equivalents                    $           27.6     $          44.2


Cash and Cash Equivalents and Short-Term Investments As of the end of the first quarter of fiscal 2020, cash and cash equivalents totaled $216.8 million compared to $189.2 million as of fiscal year end 2019. Our ability to continue to generate cash from operations will depend in large part on profitability, the rate of collections of accounts receivable, our inventory turns, and our ability to manage other areas of working capital. Our cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions considered to be of reputable credit and to present little credit risk.



We have considered the effects of the current environment, and we believe that
our cash and cash equivalents and borrowings, as described below under the
heading "Debt", along with cash provided by operations will be sufficient to
meet our anticipated operating cash needs, debt service, any stock repurchases
under the stock repurchase program, and planned capital expenditures in the next
twelve months.
Operating Activities
Cash provided by operating activities was $155.7 million for the first quarter
of fiscal 2020, compared to $147.6 million for the first quarter of fiscal 2019.
The increase of $8.1 million was primarily driven by an increase in net income
as adjusted for non-cash items, a decrease in accounts receivable, a decrease in
accrued compensation and benefits, partially offset by an increase in deferred
revenue compared with the first quarter of fiscal 2019.
Investing Activities
Cash used in investing activities was $214.4 million for the first quarter of
fiscal 2020, compared to $9.6 million for the first quarter of fiscal 2019. The
increase of cash used in investing activities of $204.8 million was primarily
due to the Kuebix acquisition.
Financing Activities
Cash provided by financing activities was $99.6 million for the first quarter of
fiscal 2020, compared to cash used in financing activities of $94.3 million for
the first quarter of fiscal 2019. The increase in cash flows from financing
activities of $193.9 million was primarily driven by the increase in debt
proceeds, net of repayment.
Debt
During the first quarter of fiscal 2020, net debt proceeds were $137.3 million.
Each of our debt agreements requires us to maintain compliance with certain debt
covenants, all of which we were in compliance with at the end of the first
quarter of fiscal 2020. On May 4, 2020, the Company entered into a loan
modification with JP Morgan Chase and Bank of America, along with certain other
institutional lenders, to extend the maturity date of the remaining term loan
amount of $225.0 million to July 2, 2022. Refer to Note 7 of the Notes to
Condensed Consolidated Financial Statements for more information regarding our
debt.
SUPPLEMENTAL DISCLOSURE OF NON-GAAP FINANCIAL MEASURES
To supplement our condensed consolidated financial information, we believe that
the following information is helpful to an overall understanding of our past
financial performance and prospects for the future. 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 and detailed explanations to the
adjustments to comparable GAAP measures are below.
                                                                    First Quarter
                                                           2020                       2019
                                                  Dollar        % of          Dollar        % of
(In millions, except per share amounts)           Amount      Revenue         Amount      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                    GAAP and
                                                              Non-GAAP                    Non-GAAP
                                                             Tax Rate %                  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

ADJUSTED EBITDA:
GAAP operating income:                           $  98.3                    $   86.3
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)        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                       155.7
Depreciation expense                                 9.8                        10.2
Income from equity method investments,
net                                                  9.4                         8.8
Adjusted EBITDA                                  $ 180.4                    $  174.7


Non-GAAP Revenue and Operating Income Results
Non-GAAP revenue decreased by $10.5 million or 1% for the first quarter of
fiscal 2020, compared to the corresponding period in fiscal 2019, due to
Geospatial and Transportation declines from market weakness including COVID-19
impacts, partially offset by Resources and Utilities, both organic growth and
acquisition revenue, and to a lesser extent, Buildings and Infrastructure
organic growth.
Non-GAAP operating income increased by $5.5 million or 4% for the first quarter
of fiscal 2020, compared to the corresponding period in fiscal 2019, due to
strong operating results in Resources and Utilities and favorable Corporate
expense, partially offset by Transportation revenue declines. Despite
Geospatial's revenue shortfall, segment operating income increased primarily due
to higher margin software survey sales and strong cost control.
Non-GAAP Explanations
Non-GAAP revenue
We believe this measure helps investors understand the performance of our
business as non-GAAP revenue excludes the effects of certain acquired deferred
revenue that was written down to fair value in purchase accounting. Management
believes that excluding fair value purchase accounting adjustments more closely
correlates with the ordinary and ongoing course of the acquired company's
operations and facilitates analysis of revenue growth and business trends.
Non-GAAP gross margin
We 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 the effects of acquired
deferred revenue that was written down to fair value in purchase accounting,
restructuring charges, amortization of purchased intangible assets, stock-based
compensation, deferred compensation, and acquisition/divestiture items
associated with the acceleration of acquisition stock options from GAAP gross
margin. We believe that these adjustments offer investors additional information
that may be useful to view trends in our gross margin performance.
Non-GAAP operating expenses
We believe this measure is important to investors evaluating our non-GAAP
spending in relation to revenue. Non-GAAP operating expenses exclude
restructuring charges, COVID-19 expenses, amortization of purchased intangible
assets, stock-based compensation, deferred compensation, and
acquisition/divestiture items associated with external and incremental costs
resulting directly from merger and acquisition activities such as: legal, due
diligence, integration, and other costs including the acceleration of
acquisition stock options, adjustment to the fair value of earn-out liabilities,
and the effects of certain acquired capitalized commissions that were eliminated
in purchase accounting from GAAP operating expenses. We believe that these
adjustments offer investors supplemental information to facilitate comparison of
our operating expenses to our prior results.
Non-GAAP operating income
We 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 the effects of purchase accounting adjustments to
certain acquired deferred revenue and acquired capitalized commissions,
restructuring charges, COVID-19 expenses, amortization of purchased intangible
assets, stock-based compensation, deferred compensation, and
acquisition/divestiture items from GAAP operating income. We believe that these
adjustments offer an alternative means for our investors to evaluate current
operating performance compared to results of other periods.
Non-GAAP non-operating expense, net
We believe this measure helps investors evaluate our non-operating income
trends. Non-GAAP non-operating expense, net, excludes deferred compensation,
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 provision
We 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 income
This 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 the effects of purchase accounting adjustments to certain acquired
deferred revenue and acquired capitalized commissions, restructuring charges,
COVID-19 expenses, amortization of purchased intangible assets, stock-based
compensation, deferred compensation, acquisition/divestiture items, and non-GAAP
tax adjustments from GAAP net income. We believe our investors benefit from
understanding these adjustments and from an alternative view of our net income
performance as compared to our past net income performance.
Non-GAAP diluted net income per share
We 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 the effects of purchase accounting adjustments to
certain acquired deferred revenue and acquired capitalized commissions,
restructuring charges, COVID-19 expenses, amortization of purchased intangible
assets, stock-based compensation, deferred compensation, acquisition/divestiture
items, and non-GAAP tax adjustments from GAAP diluted net income per share. We
believe that these adjustments offer investors a useful view of our diluted net
income per share as compared to our past diluted net income per share.
Adjusted EBITDA
We believe that adjusted EBITDA assists investors in comparing our performance
over various reporting periods on a consistent basis. Adjusted EBITDA refers
to non-GAAP operating income plus depreciation and income from equity method
investments.  We also believe the measure provides useful information to
investors in understanding and evaluating our operating results in the same
manner as our management and board of directors.

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 the
effects of purchase accounting adjustments to certain acquired deferred revenue
and acquired capitalized commissions, restructuring charges, COVID-19 expenses,
amortization of purchased intangible assets, stock-based compensation, deferred
compensation, acquisition/divestiture items, and non-GAAP tax adjustments.
(A).  Acquired deferred revenue adjustment. Purchase accounting generally
      requires us to write-down acquired deferred revenue to fair value. Our GAAP
      revenue includes the fair value impact from purchase accounting for
      post-contract support and subscriptions contracts assumed in connection
      with our acquisitions. The non-GAAP adjustment to our revenue is intended
      to reflect the full amount of such revenue.  We believe this adjustment is
      useful to investors as a measure of the ongoing performance of our business
      and facilitates analysis of revenue growth and business trends.


(B).  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.


(C).  COVID-19 expenses. Included in our GAAP presentation of operating expenses,
      COVID-19 expenses consist of costs incurred as a direct impact from the
      COVID-19 virus pandemic, such as cancellation fees of trade shows due to
      public safety issues, additional costs for disinfecting facilities,
      personal protective equipment, and labor. We exclude COVID-19 expenses from
      our non-GAAP measures because we believe they are one-time costs that vary
      significantly in amount and timing and are not indicative of our core
      operating performance.


(D).  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, this provides an alternative way for investors to compare our
      operations pre-acquisition to those post-acquisition 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.


(E).  Stock-based compensation and deferred compensation. Included in our GAAP
      presentation of cost of sales and operating expenses are stock-based
      compensation consists of expenses for employee stock options and awards and
      purchase rights under our employee stock purchase plan. Additionally
      included in our GAAP presentation of cost of sales and operating expenses
      are income or expense associated with movement in our non-qualified
      deferred compensation plan liabilities. Changes in non-qualified deferred
      compensation plan assets, included in non-operating expense, net, offset
      the income or expense in the plan liabilities. We exclude them from our
      non-GAAP measures because some investors may view it as not reflective of
      our core operating performance as they are a non-cash item.


(F).  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 and adjustments to the fair value of earn-out liabilities. Included
      in our GAAP presentation of non-operating 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.


(G).  Amortization of acquired capitalized commissions. Purchase accounting
      generally requires us to eliminate capitalized sales commissions balances
      as of the acquisition date. Our GAAP sales and marketing expenses generally
      do not reflect the amortization of these capitalized sales commissions
      balances. The non-GAAP adjustment to increase our sales and marketing
      expenses is intended to reflect the full amount of amortization related to
      such balances as though the acquired companies operated independently in
      the periods presented.  We believe this adjustment to sales and marketing
      expenses is useful to investors as a measure of the ongoing performance of
      our business.


(H).  Non-GAAP items tax effected. This amount adjusts the provision for income
      taxes to reflect the effect of the non-GAAP items (A) - (G) 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.


(I).  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 expense, net. The non-GAAP
      tax rate excludes net deferred tax impacts resulting from a non-U.S.
      intercompany transfer of intellectual property. 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.


(J).  GAAP and non-GAAP tax rate percentages. 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.

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