SUNNYVALE, Calif., Aug. 4, 2021 /PRNewswire/ -- Trimble Inc.
(NASDAQ: TRMB) today announced financial results for the second
quarter of 2021.
Second Quarter 2021 Financial Highlights
- GAAP revenue of $945.2 million,
up 29 percent year over year, and non-GAAP revenue of $945.3 million, up 29 percent year over year
- Annualized recurring revenue (ARR) was $1.35 billion, up 11 percent year over year
- GAAP operating income was $144.8
million and non-GAAP operating income was $228.6 million
- GAAP net income was $138.9
million and non-GAAP net income was $183.8 million
- Diluted earnings per share was $0.55 on a GAAP basis and $0.72 on a non-GAAP basis
- Adjusted EBITDA of $249.3
million, 26.4 percent of revenue
- Operating cash flow on a trailing twelve months basis was
$797.6 million, up 42 percent year
over year
Executive Quote
"Our second quarter results exceeded expectations," said
Rob Painter, Trimble's president and
chief executive officer. "Growth in total revenue, annualized
recurring revenue, and adjusted EBITDA reflect increasing end
market strength and execution of our Connect and Scale 2025
strategy."
Forward Looking Guidance
For the full year 2021, Trimble now expects to report GAAP
revenue between $3,550 million and
$3,650 million and GAAP earnings per
share of $1.53 to $1.71, and non-GAAP revenue between $3,550 million and $3,650
million and non-GAAP earnings per share of $2.45 and $2.65.
GAAP guidance assumes a tax rate of 17.0 to 18.0 percent and
non-GAAP guidance assumes a tax rate of 17.5 percent. Both GAAP and
non-GAAP earnings per share assume approximately 254 million shares
outstanding. A reconciliation of the non-GAAP measures to the most
directly comparable GAAP measures and other information relating to
these non-GAAP measures are included in the supplemental
reconciliation scheduled attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on August 4, 2021 at
2:00 p.m. PT to review its second
quarter 2021 results. An accompanying slide presentation will be
made available on the "Investors" section of the Trimble website,
www.trimble.com, under the subheading "Events & Presentations."
The call will be broadcast live on the web at
http://investor.trimble.com. Investors without internet access may
dial into the call at (800) 528-9198 (U.S.) or (702) 928-6633
(international). The passcode is 6077528. The replay will also be
available on the web at the address above.
About Trimble
Trimble is an industrial technology company transforming the way
the world works by delivering solutions that enable our customers
to thrive. Core technologies in positioning, modeling, connectivity
and data analytics connect the digital and physical worlds to
improve productivity, quality, safety, transparency and
sustainability. From purpose-built products to enterprise lifecycle
solutions, Trimble is transforming industries such as agriculture,
construction, geospatial and transportation. For more information
about Trimble (NASDAQ: TRMB), visit: www.trimble.com.
Safe Harbor
Certain statements made in this press release are
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and are made pursuant
to the safe harbor provisions of the Securities Litigation Reform
Act of 1995. These statements include expectations about our future
financial and operational results. These forward-looking statements
are subject to change, and actual results may materially differ due
to certain risks and uncertainties. The Company's results may be
adversely affected if the Company is unable to market, manufacture
and ship new products, obtain new customers, or effectively
integrate new acquisitions. The Company's results would also be
negatively impacted by deterioration in economic conditions as a
result of the COVID-19 pandemic, supply chain shortages and
disruptions, resulting in increases in costs and reduced revenue,
adverse geopolitical developments, weakening in the macro
environment, foreign exchange fluctuations, the pace we transition
our business model towards a subscription model, and the imposition
of barriers to international trade. Any failure to achieve
predicted results could negatively impact the Company's revenue,
cash flow from operations, and other financial results. The
Company's financial results will also depend on a number of other
factors and risks detailed from time to time in reports filed with
the SEC, including its quarterly reports on Form 10-Q and its
annual report on Form 10-K. Undue reliance should not be placed on
any forward-looking statement contained herein. These statements
reflect the Company's position as of the date of this release. The
Company expressly disclaims any undertaking to release publicly any
updates or revisions to any statements to reflect any change in the
Company's expectations or any change of events, conditions, or
circumstances on which any such statement is based.
FTRMB
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In millions, except
per share data)
|
(Unaudited)
|
|
|
Second Quarter
of
|
|
First Two Quarters
of
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
|
594.9
|
|
|
$
|
412.4
|
|
|
$
|
1,134.3
|
|
|
$
|
876.2
|
|
Service
|
162.1
|
|
|
156.6
|
|
|
324.4
|
|
|
319.0
|
|
Subscription
|
188.2
|
|
|
164.6
|
|
|
373.0
|
|
|
330.7
|
|
Total
revenue
|
945.2
|
|
|
733.6
|
|
|
1,831.7
|
|
|
1,525.9
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
Product
|
286.0
|
|
|
199.4
|
|
|
541.7
|
|
|
409.5
|
|
Service
|
58.0
|
|
|
56.0
|
|
|
117.6
|
|
|
119.6
|
|
Subscription
|
53.8
|
|
|
49.3
|
|
|
109.6
|
|
|
103.4
|
|
Amortization of
purchased intangible assets
|
22.0
|
|
|
23.2
|
|
|
44.1
|
|
|
46.7
|
|
Total cost of
sales
|
419.8
|
|
|
327.9
|
|
|
813.0
|
|
|
679.2
|
|
Gross
margin
|
525.4
|
|
|
405.7
|
|
|
1,018.7
|
|
|
846.7
|
|
Gross margin
(%)
|
55.6
|
%
|
|
55.3
|
%
|
|
55.6
|
%
|
|
55.5
|
%
|
Operating
expense:
|
|
|
|
|
|
|
|
Research and
development
|
138.3
|
|
|
114.0
|
|
|
267.7
|
|
|
232.2
|
|
Sales and
marketing
|
125.2
|
|
|
103.6
|
|
|
247.6
|
|
|
235.3
|
|
General and
administrative
|
99.6
|
|
|
68.8
|
|
|
185.0
|
|
|
141.8
|
|
Restructuring
charges
|
4.5
|
|
|
5.1
|
|
|
6.0
|
|
|
8.0
|
|
Amortization of
purchased intangible assets
|
13.0
|
|
|
16.6
|
|
|
26.7
|
|
|
33.5
|
|
Total operating
expense
|
380.6
|
|
|
308.1
|
|
|
733.0
|
|
|
650.8
|
|
Operating
income
|
144.8
|
|
|
97.6
|
|
|
285.7
|
|
|
195.9
|
|
Non-operating income
(expense), net:
|
|
|
|
|
|
|
|
Interest expense,
net
|
(16.6)
|
|
|
(19.6)
|
|
|
(33.5)
|
|
|
(40.1)
|
|
Income from equity
method investments, net
|
10.0
|
|
|
9.7
|
|
|
21.8
|
|
|
19.1
|
|
Other income
(expense), net
|
24.2
|
|
|
3.2
|
|
|
25.8
|
|
|
(4.6)
|
|
Total non-operating
income (expense), net
|
17.6
|
|
|
(6.7)
|
|
|
14.1
|
|
|
(25.6)
|
|
Income before
taxes
|
162.4
|
|
|
90.9
|
|
|
299.8
|
|
|
170.3
|
|
Income tax
provision
|
23.5
|
|
|
27.7
|
|
|
46.3
|
|
|
45.2
|
|
Net income
|
138.9
|
|
|
63.2
|
|
|
253.5
|
|
|
125.1
|
|
Net gain attributable
to noncontrolling interests
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
Net income
attributable to Trimble Inc.
|
$
|
138.9
|
|
|
$
|
63.0
|
|
|
$
|
253.4
|
|
|
$
|
124.9
|
|
Earnings per share
attributable to Trimble Inc.:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.55
|
|
|
$
|
0.25
|
|
|
$
|
1.01
|
|
|
$
|
0.50
|
|
Diluted
|
$
|
0.55
|
|
|
$
|
0.25
|
|
|
$
|
1.00
|
|
|
$
|
0.50
|
|
Shares used in
calculating earnings per share:
|
|
|
|
|
|
|
|
Basic
|
251.5
|
|
|
250.0
|
|
|
251.3
|
|
|
250.0
|
|
Diluted
|
254.2
|
|
|
251.2
|
|
|
254.2
|
|
|
251.5
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
(Unaudited)
|
|
|
Second Quarter
of
|
|
Fiscal Year
End
|
As of
|
2021
|
|
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
484.4
|
|
|
$
|
237.7
|
|
Accounts receivable,
net
|
583.2
|
|
|
620.5
|
|
Inventories
|
298.5
|
|
|
301.7
|
|
Other current
assets
|
128.4
|
|
|
121.5
|
|
Total current
assets
|
1,494.5
|
|
|
1,281.4
|
|
Property and
equipment, net
|
229.3
|
|
|
251.8
|
|
Operating lease
right-of-use assets
|
114.4
|
|
|
128.9
|
|
Goodwill
|
3,846.8
|
|
|
3,876.5
|
|
Other purchased
intangible assets, net
|
508.3
|
|
|
580.1
|
|
Deferred income tax
assets
|
504.7
|
|
|
510.2
|
|
Other non-current
assets
|
264.2
|
|
|
248.0
|
|
Total
assets
|
$
|
6,962.2
|
|
|
$
|
6,876.9
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
89.1
|
|
|
$
|
255.8
|
|
Accounts
payable
|
181.4
|
|
|
143.2
|
|
Accrued compensation
and benefits
|
180.2
|
|
|
166.8
|
|
Deferred
revenue
|
536.5
|
|
|
560.5
|
|
Other current
liabilities
|
181.3
|
|
|
185.0
|
|
Total current
liabilities
|
1,168.5
|
|
|
1,311.3
|
|
Long-term
debt
|
1,292.3
|
|
|
1,291.4
|
|
Deferred revenue,
non-current
|
69.6
|
|
|
53.3
|
|
Deferred income tax
liabilities
|
288.8
|
|
|
300.3
|
|
Income taxes
payable
|
54.5
|
|
|
62.2
|
|
Operating lease
liabilities
|
96.8
|
|
|
109.2
|
|
Other non-current
liabilities
|
153.1
|
|
|
150.6
|
|
Total
liabilities
|
3,123.6
|
|
|
3,278.3
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
0.3
|
|
|
0.3
|
|
Additional
paid-in-capital
|
1,873.0
|
|
|
1,801.7
|
|
Retained
earnings
|
2,077.2
|
|
|
1,893.4
|
|
Accumulated other
comprehensive loss
|
(111.9)
|
|
|
(98.5)
|
|
Total Trimble Inc.
stockholders' equity
|
3,838.6
|
|
|
3,596.9
|
|
Noncontrolling
interests
|
—
|
|
|
1.7
|
|
Total stockholders'
equity
|
3,838.6
|
|
|
3,598.6
|
|
Total liabilities and
stockholders' equity
|
$
|
6,962.2
|
|
|
$
|
6,876.9
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
First Two Quarters
of
|
|
2021
|
|
2020
|
Cash flow from
operating activities:
|
|
|
|
Net income
|
$
|
253.5
|
|
|
$
|
125.1
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
expense
|
20.8
|
|
|
19.5
|
|
Amortization
expense
|
70.8
|
|
|
80.2
|
|
Deferred income
taxes
|
(4.9)
|
|
|
14.9
|
|
Stock-based
compensation
|
62.8
|
|
|
29.3
|
|
Divestitures (gain)
loss, net
|
(24.0)
|
|
|
2.4
|
|
Other, net
|
3.6
|
|
|
11.3
|
|
(Increase) decrease in
assets:
|
|
|
|
Accounts receivable,
net
|
35.2
|
|
|
115.7
|
|
Inventories
|
(0.3)
|
|
|
(33.2)
|
|
Other current and
non-current assets
|
(22.4)
|
|
|
9.7
|
|
Increase (decrease) in
liabilities:
|
|
|
|
Accounts
payable
|
39.2
|
|
|
(31.1)
|
|
Accrued compensation
and benefits
|
6.3
|
|
|
9.1
|
|
Deferred
revenue
|
3.9
|
|
|
(8.4)
|
|
Other current and
non-current liabilities
|
(15.7)
|
|
|
(41.3)
|
|
Net cash provided by
operating activities
|
428.8
|
|
|
303.2
|
|
Cash flow from
investing activities:
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
(1.2)
|
|
|
(198.0)
|
|
Purchases of property
and equipment
|
(21.4)
|
|
|
(29.6)
|
|
Net proceeds from sale
of businesses
|
46.0
|
|
|
—
|
|
Net proceeds from sale
of property and equipment
|
20.7
|
|
|
0.3
|
|
Other, net
|
(1.2)
|
|
|
(0.1)
|
|
Net cash provided by
(used in) investing activities
|
42.9
|
|
|
(227.4)
|
|
Cash flow from
financing activities:
|
|
|
|
Issuance of common
stock, net of tax withholdings
|
(17.3)
|
|
|
8.7
|
|
Repurchases of common
stock
|
(40.0)
|
|
|
(50.0)
|
|
Proceeds from debt and
revolving credit lines
|
198.9
|
|
|
857.5
|
|
Payments on debt and
revolving credit lines
|
(363.3)
|
|
|
(866.3)
|
|
Other, net
|
(1.4)
|
|
|
(10.8)
|
|
Net cash used in
financing activities
|
(223.1)
|
|
|
(60.9)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(1.9)
|
|
|
(7.7)
|
|
Net increase in cash
and cash equivalents
|
246.7
|
|
|
7.2
|
|
Cash and cash
equivalents - beginning of period
|
237.7
|
|
|
189.2
|
|
Cash and cash
equivalents - end of period
|
$
|
484.4
|
|
|
$
|
196.4
|
|
REPORTING
SEGMENTS
|
GAAP TO NON-GAAP
RECONCILIATION
|
(In
millions)
|
(Unaudited)
|
|
|
|
Reporting
Segments
|
|
|
Buildings and
Infrastructure
|
|
Geospatial
|
|
Resources and
Utilities
|
|
Transportation
|
SECOND QUARTER OF
FISCAL 2021 :
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
364.7
|
|
|
$
|
219.7
|
|
|
$
|
197.5
|
|
|
$
|
163.3
|
|
Acquired deferred
revenue adjustment
|
(A)
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP
revenue
|
|
$
|
364.8
|
|
|
$
|
219.7
|
|
|
$
|
197.5
|
|
|
$
|
163.3
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
|
$
|
105.1
|
|
|
$
|
66.1
|
|
|
$
|
70.5
|
|
|
$
|
12.8
|
|
Acquired deferred
revenue adjustment
|
(A)
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
(1.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP operating
income before allocations
|
|
$
|
104.1
|
|
|
$
|
66.1
|
|
|
$
|
70.5
|
|
|
$
|
12.8
|
|
|
|
|
|
|
|
|
|
|
Operating margin (% of
segment external net revenue)
|
|
28.8
|
%
|
|
30.1
|
%
|
|
35.7
|
%
|
|
7.8
|
%
|
Non-GAAP Operating
margin (% of segment Non-
GAAP external net revenue)
|
|
28.5
|
%
|
|
30.1
|
%
|
|
35.7
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER OF
FISCAL 2020 :
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
295.2
|
|
|
$
|
145.2
|
|
|
$
|
142.9
|
|
|
$
|
150.3
|
|
Acquired deferred
revenue adjustment
|
(A)
|
0.1
|
|
|
—
|
|
|
0.9
|
|
|
0.6
|
|
Non-GAAP
revenue
|
|
$
|
295.3
|
|
|
$
|
145.2
|
|
|
$
|
143.8
|
|
|
$
|
150.9
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
|
$
|
86.6
|
|
|
$
|
37.4
|
|
|
$
|
48.3
|
|
|
$
|
13.8
|
|
Acquired deferred
revenue adjustment
|
(A)
|
0.1
|
|
|
—
|
|
|
0.9
|
|
|
0.6
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
(1.3)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
Non-GAAP operating
income before allocations
|
|
$
|
85.4
|
|
|
$
|
37.4
|
|
|
$
|
49.1
|
|
|
$
|
14.4
|
|
|
|
|
|
|
|
|
|
|
Operating margin (% of
segment external net revenue)
|
|
29.3
|
%
|
|
25.8
|
%
|
|
33.8
|
%
|
|
9.2
|
%
|
Non-GAAP Operating
margin (% of segment Non-
GAAP external net revenue)
|
|
28.9
|
%
|
|
25.8
|
%
|
|
34.1
|
%
|
|
9.5
|
%
|
|
|
|
|
|
Buildings and
Infrastructure
|
|
Geospatial
|
|
Resources and
Utilities
|
|
Transportation
|
FIRST TWO QUARTERS
OF 2021 :
|
|
|
|
|
|
|
|
|
Revenue
|
|
707.7
|
|
|
401.4
|
|
|
402.7
|
|
|
319.9
|
|
Acquired deferred
revenue adjustment
|
(A)
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Non-GAAP
revenue
|
|
$
|
707.9
|
|
|
$
|
401.4
|
|
|
$
|
402.7
|
|
|
$
|
320.0
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
|
$
|
202.5
|
|
|
$
|
114.8
|
|
|
$
|
150.6
|
|
|
$
|
21.2
|
|
Acquired deferred
revenue adjustment
|
(A)
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
(2.2)
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
Non-GAAP operating
income before allocations
|
|
$
|
200.5
|
|
|
$
|
114.8
|
|
|
$
|
150.6
|
|
|
$
|
21.2
|
|
|
|
|
|
|
|
|
|
|
Operating margin (% of
segment external net revenue)
|
|
28.6
|
%
|
|
28.6
|
%
|
|
37.4
|
%
|
|
6.6
|
%
|
Non-GAAP Operating
margin (% of segment Non-
GAAP external net revenue)
|
|
28.3
|
%
|
|
28.6
|
%
|
|
37.4
|
%
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
FIRST TWO QUARTERS
OF 2020:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
592.0
|
|
|
$
|
291.4
|
|
|
$
|
321.9
|
|
|
$
|
320.6
|
|
Acquired deferred
revenue adjustment
|
(A)
|
0.2
|
|
|
—
|
|
|
2.2
|
|
|
0.9
|
|
Non-GAAP
revenue
|
|
$
|
592.2
|
|
|
$
|
291.4
|
|
|
$
|
324.1
|
|
|
$
|
321.5
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
|
$
|
148.7
|
|
|
$
|
67.9
|
|
|
$
|
113.9
|
|
|
$
|
30.5
|
|
Acquired deferred
revenue adjustment
|
(A)
|
0.2
|
|
|
—
|
|
|
2.2
|
|
|
0.9
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
(2.7)
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.1)
|
|
Non-GAAP operating
income before allocations
|
|
$
|
146.2
|
|
|
$
|
67.9
|
|
|
$
|
116.0
|
|
|
$
|
31.3
|
|
|
|
|
|
|
|
|
|
|
Operating margin (% of
segment external net revenue)
|
|
25.1
|
%
|
|
23.3
|
%
|
|
35.4
|
%
|
|
9.5
|
%
|
Non-GAAP Operating
margin (% of segment Non-
GAAP external net revenue)
|
|
24.7
|
%
|
|
23.3
|
%
|
|
35.8
|
%
|
|
9.7
|
%
|
GAAP TO NON-GAAP
RECONCILIATION
|
(Dollars in millions,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
Second Quarter
of
|
|
First Two Quarters
of
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
revenue:
|
|
|
$
|
945.2
|
|
|
|
$
|
733.6
|
|
|
|
$
|
1,831.7
|
|
|
|
$
|
1,525.9
|
|
|
|
|
Acquired deferred
revenue adjustment
|
(A)
|
|
0.1
|
|
|
|
1.6
|
|
|
|
0.3
|
|
|
|
3.3
|
|
|
|
Non-GAAP
revenue:
|
|
|
$
|
945.3
|
|
|
|
$
|
735.2
|
|
|
|
$
|
1,832.0
|
|
|
|
$
|
1,529.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
MARGIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin:
|
|
|
$
|
525.4
|
|
55.6
|
%
|
|
$
|
405.7
|
|
55.3
|
%
|
|
$
|
1,018.7
|
|
55.6
|
%
|
|
$
|
846.7
|
|
55.5
|
%
|
|
|
Acquired deferred
revenue adjustment
|
(A)
|
|
0.1
|
|
|
|
1.6
|
|
|
|
0.3
|
|
|
|
3.3
|
|
|
|
|
Amortization of
purchased intangible assets
|
(C)
|
|
22.0
|
|
|
|
23.2
|
|
|
|
44.1
|
|
|
|
46.7
|
|
|
|
|
Acquisition /
divestiture items
|
(D)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.7
|
|
|
|
|
Stock-based
compensation / deferred compensation
|
(E)
|
|
2.6
|
|
|
|
2.0
|
|
|
|
4.6
|
|
|
|
2.7
|
|
|
|
|
Restructuring and
other costs
|
(F)
|
|
0.2
|
|
|
|
0.4
|
|
|
|
0.2
|
|
|
|
0.7
|
|
|
|
Non-GAAP gross
margin:
|
|
|
$
|
550.3
|
|
58.2
|
%
|
|
$
|
432.9
|
|
58.9
|
%
|
|
$
|
1,067.9
|
|
58.3
|
%
|
|
$
|
901.8
|
|
59.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses:
|
|
|
$
|
380.6
|
|
40.3
|
%
|
|
$
|
308.1
|
|
42.0
|
%
|
|
$
|
733.0
|
|
40.0
|
%
|
|
$
|
650.8
|
|
42.7
|
%
|
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
|
1.1
|
|
|
|
1.4
|
|
|
|
2.3
|
|
|
|
2.9
|
|
|
|
|
Amortization of
purchased intangible assets
|
(C)
|
|
(13.0)
|
|
|
|
(16.6)
|
|
|
|
(26.7)
|
|
|
|
(33.5)
|
|
|
|
|
Acquisition /
divestiture items
|
(D)
|
|
(6.6)
|
|
|
|
(1.9)
|
|
|
|
(10.1)
|
|
|
|
(11.0)
|
|
|
|
|
Stock-based
compensation / deferred compensation
|
(E)
|
|
(35.7)
|
|
|
|
(23.4)
|
|
|
|
(62.4)
|
|
|
|
(27.2)
|
|
|
|
|
Restructuring and
other costs
|
(F)
|
|
(4.7)
|
|
|
|
(4.6)
|
|
|
|
(6.0)
|
|
|
|
(11.3)
|
|
|
|
Non-GAAP operating
expenses:
|
|
|
$
|
321.7
|
|
34.0
|
%
|
|
$
|
263.0
|
|
35.8
|
%
|
|
$
|
630.1
|
|
34.4
|
%
|
|
$
|
570.7
|
|
37.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income:
|
|
|
$
|
144.8
|
|
15.3
|
%
|
|
$
|
97.6
|
|
13.3
|
%
|
|
$
|
285.7
|
|
15.6
|
%
|
|
$
|
195.9
|
|
12.8
|
%
|
|
|
Acquired deferred
revenue adjustment
|
(A)
|
|
0.1
|
|
|
|
1.6
|
|
|
|
0.3
|
|
|
|
3.3
|
|
|
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
|
(1.1)
|
|
|
|
(1.4)
|
|
|
|
(2.3)
|
|
|
|
(2.9)
|
|
|
|
|
Amortization of
purchased intangible assets
|
(C)
|
|
35.0
|
|
|
|
39.8
|
|
|
|
70.8
|
|
|
|
80.2
|
|
|
|
|
Acquisition /
divestiture items
|
(D)
|
|
6.6
|
|
|
|
1.9
|
|
|
|
10.1
|
|
|
|
12.7
|
|
|
|
|
Stock-based
compensation / deferred compensation
|
(E)
|
|
38.3
|
|
|
|
25.4
|
|
|
|
67.0
|
|
|
|
29.9
|
|
|
|
|
Restructuring and
other costs
|
(F)
|
|
4.9
|
|
|
|
5.0
|
|
|
|
6.2
|
|
|
|
12.0
|
|
|
|
Non-GAAP operating
income:
|
|
|
$
|
228.6
|
|
24.2
|
%
|
|
$
|
169.9
|
|
23.1
|
%
|
|
$
|
437.8
|
|
23.9
|
%
|
|
$
|
331.1
|
|
21.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
INCOME (EXPENSE), NET:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP non-operating
income (expense), net:
|
|
|
$
|
17.6
|
|
|
|
$
|
(6.7)
|
|
|
|
$
|
14.1
|
|
|
|
$
|
(25.6)
|
|
|
|
|
Acquisition /
divestiture items
|
(D)
|
|
(20.7)
|
|
|
|
2.4
|
|
|
|
(22.8)
|
|
|
|
2.4
|
|
|
|
|
Deferred
compensation
|
(E)
|
|
(2.7)
|
|
|
|
(6.8)
|
|
|
|
(4.2)
|
|
|
|
(0.6)
|
|
|
|
Non-GAAP
non-operating expense, net:
|
|
|
$
|
(5.8)
|
|
|
|
$
|
(11.1)
|
|
|
|
$
|
(12.9)
|
|
|
|
$
|
(23.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
and Non-
GAAP
Tax Rate
%
|
|
|
GAAP
and Non-
GAAP
Tax Rate
%
|
|
|
GAAP
and Non-
GAAP
Tax Rate
%
|
|
|
GAAP
and Non-
GAAP
Tax Rate
%
|
|
|
|
|
|
|
(I)
|
|
|
(I)
|
|
|
(I)
|
|
|
(I)
|
INCOME TAX
PROVISION:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision:
|
|
|
$
|
23.5
|
|
14.5
|
%
|
|
$
|
27.7
|
|
30.5
|
%
|
|
$
|
46.3
|
|
15.4
|
%
|
|
$
|
45.2
|
|
26.5
|
%
|
|
|
Non-GAAP items tax
effected
|
(G)
|
|
8.8
|
|
|
|
20.7
|
|
|
|
19.5
|
|
|
|
35.9
|
|
|
|
|
Difference in GAAP
and Non-GAAP tax rate
|
(H)
|
|
6.7
|
|
|
|
(21.3)
|
|
|
|
8.2
|
|
|
|
(28.0)
|
|
|
|
Non-GAAP income tax
provision:
|
|
|
$
|
39.0
|
|
17.5
|
%
|
|
$
|
27.1
|
|
17.1
|
%
|
|
$
|
74.0
|
|
17.4
|
%
|
|
$
|
53.1
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Trimble Inc.:
|
|
|
$
|
138.9
|
|
|
|
$
|
63.0
|
|
|
|
$
|
253.4
|
|
|
|
$
|
124.9
|
|
|
|
|
Acquired deferred
revenue adjustment
|
(A)
|
|
0.1
|
|
|
|
1.6
|
|
|
|
0.3
|
|
|
|
3.3
|
|
|
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
|
(1.1)
|
|
|
|
(1.4)
|
|
|
|
(2.3)
|
|
|
|
(2.9)
|
|
|
|
|
Amortization of
purchased intangible assets
|
(C)
|
|
35.0
|
|
|
|
39.8
|
|
|
|
70.8
|
|
|
|
80.2
|
|
|
|
|
Acquisition /
divestiture items
|
(D)
|
|
(14.1)
|
|
|
|
4.3
|
|
|
|
(12.7)
|
|
|
|
15.1
|
|
|
|
|
Stock-based
compensation / deferred compensation
|
(E)
|
|
35.6
|
|
|
|
18.6
|
|
|
|
62.8
|
|
|
|
29.3
|
|
|
|
|
Restructuring and
other costs
|
(F)
|
|
4.9
|
|
|
|
5.0
|
|
|
|
6.2
|
|
|
|
12.0
|
|
|
|
|
Non-GAAP tax
adjustments
|
(G) -
(H)
|
|
(15.5)
|
|
|
|
0.6
|
|
|
|
(27.7)
|
|
|
|
(7.9)
|
|
|
|
Non-GAAP net income
attributable to Trimble Inc.:
|
|
|
$
|
183.8
|
|
|
|
$
|
131.5
|
|
|
|
$
|
350.8
|
|
|
|
$
|
254.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET INCOME
PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share attributable to Trimble Inc.:
|
|
|
$
|
0.55
|
|
|
|
$
|
0.25
|
|
|
|
$
|
1.00
|
|
|
|
$
|
0.50
|
|
|
|
|
Acquired deferred
revenue adjustment
|
(A)
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
|
—
|
|
|
|
(0.01)
|
|
|
|
(0.01)
|
|
|
|
(0.01)
|
|
|
|
|
Amortization of
purchased intangible assets
|
(C)
|
|
0.13
|
|
|
|
0.16
|
|
|
|
0.28
|
|
|
|
0.32
|
|
|
|
|
Acquisition /
divestiture items
|
(D)
|
|
(0.06)
|
|
|
|
0.02
|
|
|
|
(0.05)
|
|
|
|
0.06
|
|
|
|
|
Stock-based
compensation / deferred compensation
|
(E)
|
|
0.14
|
|
|
|
0.07
|
|
|
|
0.25
|
|
|
|
0.12
|
|
|
|
|
Restructuring and
other costs
|
(F)
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.04
|
|
|
|
|
Non-GAAP tax
adjustments
|
(G) -
(H)
|
|
(0.06)
|
|
|
|
—
|
|
|
|
(0.11)
|
|
|
|
(0.03)
|
|
|
|
Non-GAAP diluted net
income per share attributable to Trimble Inc.:
|
|
|
$
|
0.72
|
|
|
|
$
|
0.52
|
|
|
|
$
|
1.38
|
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Trimble Inc.:
|
|
|
$
|
138.9
|
|
|
|
$
|
63.0
|
|
|
|
$
|
253.4
|
|
|
|
$
|
124.9
|
|
|
|
|
Non-operating income
(expense), net, income tax provision,
and net gain attributable to noncontrolling interests
|
|
|
5.9
|
|
|
|
34.6
|
|
|
|
32.3
|
|
|
|
71.0
|
|
|
|
GAAP operating
income:
|
|
|
144.8
|
|
|
|
97.6
|
|
|
|
285.7
|
|
|
|
195.9
|
|
|
|
|
Acquired deferred
revenue adjustment
|
(A)
|
|
0.1
|
|
|
|
1.6
|
|
|
|
0.3
|
|
|
|
3.3
|
|
|
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
|
(1.1)
|
|
|
|
(1.4)
|
|
|
|
(2.3)
|
|
|
|
(2.9)
|
|
|
|
|
Amortization of
purchased intangible assets
|
(C)
|
|
35.0
|
|
|
|
39.8
|
|
|
|
70.8
|
|
|
|
80.2
|
|
|
|
|
Acquisition /
divestiture items
|
(D)
|
|
6.6
|
|
|
|
1.9
|
|
|
|
10.1
|
|
|
|
12.7
|
|
|
|
|
Stock-based
compensation / deferred compensation
|
(E)
|
|
38.3
|
|
|
|
25.4
|
|
|
|
67.0
|
|
|
|
29.9
|
|
|
|
|
Restructuring and
other costs
|
(F)
|
|
4.9
|
|
|
|
5.0
|
|
|
|
6.2
|
|
|
|
12.0
|
|
|
|
Non-GAAP operating
income:
|
|
|
228.6
|
|
|
|
169.9
|
|
|
|
437.8
|
|
|
|
331.1
|
|
|
|
|
Depreciation
expense
|
|
|
10.7
|
|
|
|
9.7
|
|
|
|
21.0
|
|
|
|
19.5
|
|
|
|
|
Income from equity
method investments, net
|
|
|
10.0
|
|
|
|
9.7
|
|
|
|
21.8
|
|
|
|
19.1
|
|
|
|
Adjusted
EBITDA:
|
|
|
$
|
249.3
|
|
26.4
|
%
|
|
$
|
189.3
|
|
25.7
|
%
|
|
$
|
480.6
|
|
26.2
|
%
|
|
$
|
369.7
|
|
24.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low End
|
High End
|
|
|
|
|
|
|
|
|
|
FORECASTED DILUTED
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
Forecasted GAAP
diluted net income per share attributable to Trimble
Inc.:
|
|
|
$
|
1.53
|
|
$
|
1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired deferred
revenue adjustment
|
(A)
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired capitalized commissions
|
(B)
|
|
(0.02)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
(C)
|
|
0.55
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition /
divestiture items
|
(D)
|
|
0.07
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation / deferred compensation
|
(E)
|
|
0.50
|
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other costs
|
(F)
|
|
0.03
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP tax
adjustments
|
(G) -
(H)
|
|
(0.21)
|
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted non-GAAP
diluted net income per share attributable to Trimble
Inc.:
|
|
$
|
2.45
|
|
$
|
2.65
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES TO GAAP TO NON-GAAP
RECONCILIATION
To help investors understand Trimble's past financial
performance and future results, as well as its performance relative
to competitors, Trimble supplements the financial results that the
Company provides in accordance with generally accepted accounting
principles, or GAAP, with non-GAAP financial measures. These
non-GAAP measures can be used to evaluate Trimble's historical and
prospective financial performance, as well as its performance
relative to competitors. The Company's management regularly uses
supplemental non-GAAP financial measures internally to understand,
manage, and evaluate the business, and to make operating decisions.
These non-GAAP measures are among the primary factors management
uses in planning for and forecasting future periods. Trimble
believes that these non-GAAP financial measures reflect an
additional way of viewing aspects of the Company's operations that,
when viewed with GAAP results, provide a more complete
understanding of factors and trends affecting the business.
Further, Trimble believes some of the Company's investors track
"core operating performance" as a means of evaluating performance
in the ordinary, ongoing, and customary course of the Company's
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
Trimble's core operating performance provides a supplemental way to
provide consistency in period to period comparisons.
The method the Company uses to produce non-GAAP results is not
computed according to GAAP and may differ from the methods used by
other companies including industry peer companies, limiting the
usefulness of these measures for comparative purposes.
Our non-GAAP results are not meant to be considered in isolation
or as a substitute for comparable GAAP measures and should be read
only in conjunction with Trimble's consolidated financial
statements prepared in accordance with GAAP. 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 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
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 certain acquired
deferred revenue, amortization of purchased intangible assets,
acquisition/divestiture items, stock-based compensation, deferred
compensation, and restructuring and other costs. 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 the effects of certain acquired capitalized
commissions that were eliminated in purchase accounting,
amortization of purchased intangible assets,
acquisition/divestiture items, stock-based compensation, deferred
compensation, and restructuring and other costs. We believe
that these adjustments offer investors supplemental information to
facilitate comparison of our operating expenses to our prior
results and trends.
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, amortization of
purchased intangible assets, acquisition/divestiture items,
stock-based compensation, deferred compensation, and restructuring
and other costs. We believe that these adjustments offer a
supplemental means for our investors to evaluate current operating
performance compared to prior results and trends.
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 acquisition/divestiture items, and deferred
compensation. We believe that these exclusions provide
investors with a supplemental view of our ongoing financial
results.
Non-GAAP income tax provision
We believe this measure helps investors because it provides for
consistent treatment of excluded items in our non-GAAP presentation
and a difference in the GAAP and non-GAAP tax rates. The
non-GAAP tax rate excludes charges and benefits such as net
deferred tax impacts results from the non-U.S. intercompany
transfer of intellectual property, tax law changes, and significant
one-time reserve releases upon statute of limitations
expirations.
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, amortization of
purchased intangible assets, acquisition/divestiture items,
stock-based compensation, restructuring and other costs, and
non-GAAP tax adjustments. We believe our investors benefit
from understanding these adjustments and from an alternative view
of our net income performance as compared to prior periods and
trends.
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, amortization
of purchased intangible assets, acquisition/divestiture items,
stock-based compensation, restructuring and other costs, and
non-GAAP tax adjustments. We believe that these adjustments
offer investors a useful view of our diluted net income per share
as compared to our prior periods and trends.
Adjusted EBITDA
Adjusted EBITDA is a performance measure that we believe offers
a useful view of the overall operations of our business by removing
potential differences caused by variations unrelated to operating
performance, such as capital structures (interest expense), income
taxes, depreciation and amortization expenses. We define
Adjusted EBITDA as non-GAAP operating income plus depreciation
expense, and income from equity method investments, net.
Other companies may define Adjusted EBITDA differently.
Adjusted EBITDA is not intended to purport to be an alternative to
net income or operating income as a measure of operating
performance or to cash flow from operating activities as a measure
of liquidity.
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 the effects of purchase
accounting adjustments to certain acquired deferred revenue and
acquired capitalized commissions, amortization of purchased
intangible assets, acquisition/divestiture items, stock-based
compensation, deferred compensation, restructuring and other costs,
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) 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.
(C) Amortization of purchased intangible
assets. Included in our GAAP presentation of cost of
sales and operating expenses is amortization of purchased
intangible assets. 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.
(D) Acquisition / divestiture items. Included
in our GAAP presentation of cost of sales and operating expenses
are acquisition costs comprised 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.
(E) Stock-based compensation / 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) Restructuring and other costs. Included
in our GAAP presentation of cost of sales and operating expenses
are restructuring and other exit costs comprised of termination
benefits related to reductions in employee headcount, including
executive severance agreements, the closure or exit of facilities,
and cancellation of certain contracts. In addition, other
costs include COVID-19 expenses 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, and personal protective equipment.
We exclude restructuring and other exit costs and COVID-19 expenses
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
comparison to our past operating performance. Furthermore,
these costs can vary significantly, thus exclusion from our
non-GAAP results is useful to investors because it allows for
period-over-period comparability.
(G) Non-GAAP items tax effected. This amount
adjusts the provision for income taxes to reflect the effect of the
non-GAAP items (A) - (F) 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.
(H) 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
charges and benefits such as net deferred tax impacts resulting
from a non-U.S. intercompany transfer of intellectual property and
significant one-time reserve releases upon statute of limitations
expirations. 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.
(I) 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.
OTHER KEY METRICS
Annualized Recurring Revenue
In addition to providing non-GAAP financial measures, Trimble
provides an ARR performance measure in order to provide investors
with a supplementary indicator of the value of the Company's
current recurring revenue contracts. ARR represents the estimated
annualized value of recurring revenue, including subscription,
maintenance and software revenue, and term license contracts for
the quarter. ARR is calculated by adding the portion of the
contract value of all of our term licenses attributable to the
current quarter to our non-GAAP recurring revenue for the current
quarter and dividing that sum by the number of days in the quarter
and then multiplying that quotient by 365. ARR should be viewed
independently of revenue and deferred revenue as it is a
performance measure and is not intended to be combined with or to
replace either of those items.
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SOURCE Trimble