# EDGAR Filing Document

**Accession Number:** 0000864749
**File Stem:** 0000864749-25-000283
**Filing Date:** 2025-11
**Character Count:** 42539
**Document Hash:** ba07feaa1379365da794f1b9b4352160
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000864749-25-000283.hdr.sgml**: 20251105

**ACCESSION NUMBER**: 0000864749-25-000283

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20251105

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251105

**DATE AS OF CHANGE**: 20251105

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TRIMBLE INC.
- **CENTRAL INDEX KEY:** 0000864749
- **STANDARD INDUSTRIAL CLASSIFICATION:** MEASURING & CONTROLLING DEVICES, NEC [3829]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 942802192
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0102

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14845
- **FILM NUMBER:** 251451724

**BUSINESS ADDRESS:**
- **STREET 1:** 10368 WESTMOOR DR
- **CITY:** WESTMINSTER
- **STATE:** CO
- **ZIP:** 80021
- **BUSINESS PHONE:** (720) 887-6100

**MAIL ADDRESS:**
- **STREET 1:** 10368 WESTMOOR DR
- **CITY:** WESTMINSTER
- **STATE:** CO
- **ZIP:** 80021

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TRIMBLE NAVIGATION LTD /CA/
- **DATE OF NAME CHANGE:** 19930328

?xml version='1.0' encoding='ASCII'? trmb-20251105

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d)**

**of The Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): November 5, 2025** 

**Trimble Inc.** 

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-14845** | **94-2802192** |
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>I.D. No.) |

---

**10368 Westmoor Dr, Westminster, CO 80021** 

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (**720**) **887-6100**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ &nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock, $0.001 par value per share** | **TRMB** | **NASDAQ Global Select Market** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition.**

On November 5, 2025, Trimble Inc. (the "<u>Company</u>") issued a press release reporting its financial results for the quarter ended October 3, 2025. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this report, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), nor be incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01 Financial Statements and Exhibits.**

**&nbsp;&nbsp;&nbsp;&nbsp;**(d) *Exhibits.*

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press Release dated](a2025q3-8kex991.htm)[November 5](a2025q3-8kex991.htm)[, 2025 related to the Company's financial results for the quarter ended](a2025q3-8kex991.htm)[October 3](a2025q3-8kex991.htm)[, 2025](a2025q3-8kex991.htm)</u> |
| 104 | The cover page from this Report on Form 8-K, formatted in Inline XBRL |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **TRIMBLE INC.** | **TRIMBLE INC.** |
| | a Delaware corporation | a Delaware corporation |
| Dated: November 5, 2025 | By: | /s/ Phillip Sawarynski |
|  |  | Phillip Sawarynski |
|  |  | **Chief Financial Officer** |

---

## Exhibit 99.1

**Exhibit 99.1**

**Trimble Announces Third Quarter 2025 Results and Raises Full Year Guidance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Record annualized recurring revenue, reflecting ongoing execution of the Connect & Scale strategy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Record third quarter gross margin

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Third quarter results exceeded expectations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raising full year 2025 guidance

**WESTMINSTER, Colo., Nov 5, 2025** - Trimble Inc. (Nasdaq: TRMB) today announced financial results for the third quarter of 2025.

**Third Quarter 2025 Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Revenue of $901.2 million, up 3 percent on a year-over-year basis, up 10 percent on an organic basis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Annualized recurring revenue ("ARR") was $2.31 billion, up 6 percent year-over-year, up 14% on an organic basis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP operating income was $150.5 million, 16.7 percent of revenue, and non-GAAP operating income was $254.2 million, 28.2 percent of revenue

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP net income was $111.5 million and non-GAAP net income was $194.7 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted earnings per share ("EPS") was $0.46 on a GAAP basis and $0.81 on a non-GAAP basis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA was $269.4 million, 29.9 percent of revenue

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Share repurchase of $50.0 million in the third quarter and $727.4 million year-to-date

**Executive Quote**

"Trimble's operational and financial momentum continued in the third quarter, delivering a record level of annualized recurring revenue of $2.31 billion, with results surpassing both top and bottom line expectations," said Rob Painter, president and CEO of Trimble. "We are raising our full year 2025 guidance, reflecting solid execution against our Connect & Scale strategy, which continues to deliver competitive differentiation and compelling growth."

**Forward-Looking Guidance**

For the full-year 2025, Trimble expects to report revenue between $3,545 million and $3,585 million, GAAP earnings per share of $1.69 to $1.77, and non-GAAP earnings per share of $3.04 to $3.12. GAAP guidance assumes a tax rate of 17.8 percent and non-GAAP guidance assumes a tax rate of 17.4 percent. Both GAAP and non-GAAP earnings per share assume approximately 242 million shares outstanding.

For the fourth quarter of 2025, Trimble expects to report revenue between $927 million and $967 million, GAAP earnings per share of $0.59 to $0.67, and non-GAAP earnings per share of $0.91 to $0.99. GAAP guidance assumes a tax rate of 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 240 million shares outstanding.

Full-year 2025 guidance reflects the closing of the Mobility divestiture, which closed on February 8, 2025. 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 schedule attached.

**Investor Conference Call / Webcast Details**

Trimble will hold a conference call on November 5, 2025 at 8:00 a.m. ET to review its third quarter of 2025 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, <u>https://www.trimble.com</u>, under the subheading "Events & Presentations." The call will be broadcast live on the web at <u>https://investor.trimble.com</u>. Investors and participants who wish to dial into the call may do so by first registering at <u>https://registrations.events/direct/Q4I8411356972</u>. Upon registration, dial-in details will be sent via email to the registrant. A replay will also be available on the web at the address above.

**About Trimble**

Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it's helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble (Nasdaq: TRMB), visit: <u>https://www.trimble.com</u>.

------

**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 and expectations regarding the execution, impact and potential of the Connect and Scale strategy. 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, effectively integrate new acquisitions or consummate divestitures in a timely manner, or get the benefits it is expecting from its joint ventures and partnerships, including with AGCO and Platform Science. The Company's results could also be negatively impacted due to weakness and deterioration in the U.S. and global macroeconomic outlook, including heightened trade tensions and related imposition of tariffs and export control restrictions between the U.S. and its trading partners, slowing growth, inflationary pressures and fluctuations in interest rates, which may affect demand for our products and services and increase our costs and adversely affect our revenues and profitability, supply chain shortages and disruptions, the pace at which our dealers work through their inventory, changes in our distribution channels, adverse geopolitical developments and the potential impact of volatility and conflict in the political and economic environment, including the conflicts in the Middle East and between Russia and Ukraine and its direct and indirect impact on our business, the U.S. federal governmental shutdown and related budgetary constraints, foreign exchange fluctuations, the pace we transition our business model towards a subscription model, the impact of acquisitions or divestitures, and our ability to maintain effective internal controls over financial reporting, including our ability to remediate our material weaknesses in our internal controls over financial reporting. 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

------

![image3.jpg](image3.jpg)

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME**

(In millions, except per share data)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Third Quarter of | Third Quarter of | First Three Quarters of | First Three Quarters of |
| | 2025 | 2024 | 2025 | 2024 |
| &nbsp;&nbsp;Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | $302.5 | $307.6 | $866.9 | $995.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription and services | 598.7 | 568.2 | 1750.6 | 1704.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 901.2 | 875.8 | 2617.5 | 2699.9 |
| &nbsp;&nbsp;Cost of sales: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | 148.9 | 160.7 | 437.0 | 544.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription and services | 114.8 | 120.6 | 351.8 | 365.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of purchased intangible assets | 16.4 | 18.9 | 48.9 | 74.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of sales | 280.1 | 300.2 | 837.7 | 984.8 |
| &nbsp;&nbsp;Gross margin | 621.1 | 575.6 | 1779.8 | 1715.1 |
| &nbsp;&nbsp;Gross margin (%) | 68.9% | 65.7% | 68.0% | 63.5% |
| &nbsp;&nbsp;Operating expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 152.9 | 155.6 | 474.7 | 487.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 158.8 | 147.1 | 470.4 | 436.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 117.5 | 127.6 | 356.6 | 410.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring | 14.2 | 2.4 | 22.7 | 14.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of purchased intangible assets | 27.2 | 26.5 | 79.6 | 79.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expense | 470.6 | 459.2 | 1404.0 | 1427.9 |
| &nbsp;&nbsp;Operating income | 150.5 | 116.4 | 375.8 | 287.2 |
| &nbsp;&nbsp;Non-operating (expense) income, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Divestitures (loss) gain, net | (0.6) | (22.6) | 4.2 | 1695.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | (20.7) | (14.1) | (55.7) | (77.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) income from equity method investments, net | (0.5) | (0.6) | 2.8 | 9.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other loss, net | (3.6) | (6.0) | (2.3) | (6.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-operating (expense) income, net | (25.4) | (43.3) | (51.0) | 1620.9 |
| &nbsp;&nbsp;Income before taxes | 125.1 | 73.1 | 324.8 | 1908.1 |
| &nbsp;&nbsp;Income tax provision  | 13.6 | 32.5 | 57.4 | 493.9 |
| &nbsp;&nbsp;Net income | $111.5 | $40.6 | $267.4 | $1414.2 |
| &nbsp;&nbsp;Earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.47 | $0.17 | $1.11 | $5.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.46 | $0.16 | $1.10 | $5.73 |
| &nbsp;&nbsp;&nbsp;Shares used in calculating earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 238.2 | 245.6 | 239.9 | 245.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 240.4 | 246.9 | 242.0 | 246.9 |

---

------

![image3.jpg](image3.jpg)

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(In millions)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | As of | As of |
| | Third Quarter of<br>2025 | Year End<br>2024 |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $232.7 | $738.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 542.8 | 725.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 174.7 | 194.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 107.8 | 103.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 200.6 | 196.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale |  | 312.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1258.6 | 2270.4 |
| Property and equipment, net | 185.8 | 188.4 |
| Goodwill | 5237.1 | 4988.4 |
| Other purchased intangible assets, net | 967.4 | 998.1 |
| Deferred income tax assets | 287.0 | 294.4 |
| Equity investments | 622.7 | 361.0 |
| Other non-current assets | 461.0 | 387.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $9019.6 | $9488.3 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $158.7 | $161.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits | 162.2 | 227.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 738.8 | 800.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 15.7 | 325.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 178.2 | 211.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities held for sale |  | 62.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1253.6 | 1788.0 |
| Long-term debt | 1391.8 | 1390.6 |
| Deferred revenue, non-current | 102.8 | 95.6 |
| Deferred income tax liabilities | 192.9 | 199.9 |
| Other non-current liabilities | 288.5 | 268.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 3229.6 | 3743.0 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 0.2 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in-capital | 2422.2 | 2369.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 3360.0 | 3757.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 7.6 | (381.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 5790.0 | 5745.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $9019.6 | $9488.3 |

---

------

![image3.jpg](image3.jpg)

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In millions)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | First Three Quarters of | First Three Quarters of |
| | 2025 | 2024 |
| Cash flow from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $267.4 | $1414.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 149.3 | 179.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (24.3) | 31.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 111.1 | 110.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Divestitures gain, net | (4.2) | (1695.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 57.7 | 42.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 195.0 | 103.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 17.3 | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current and non-current assets | (31.1) | (51.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (13.6) | 18.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits | (71.8) | 7.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (71.1) | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | (311.5) | 250.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current and non-current liabilities | (44.3) | (23.7) |
| Net cash provided by operating activities | 225.9 | 416.3 |
| Cash flow from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Divestiture of businesses, net of cash divested | (6.5) | 1923.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions of businesses, net of cash acquired | (4.4) | (22.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (19.7) | (27.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | (5.5) | (13.7) |
| Net cash (used in) provided by investing activities | (36.1) | 1860.0 |
| Cash flow from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock, net of tax withholdings | 1.1 | (6.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | (727.4) | (175.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from debt and revolving credit lines | 577.2 | 521.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on debt and revolving credit lines | (577.2) | (1799.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | (3.0) | (4.6) |
| Net cash used in financing activities | (729.3) | (1463.7) |
| Effect of exchange rate changes on cash and cash equivalents | 24.4 | 2.5 |
| Net (decrease) increase in cash and cash equivalents | (515.1) | 815.1 |
| Cash and cash equivalents - beginning of period <sup>(1)</sup> | 747.8 | 238.9 |
| Cash and cash equivalents - end of period <sup>(1)</sup> | $232.7 | $1054.0 |
| Supplemental cash flow disclosure: |  |  |
| &nbsp;&nbsp;Cash paid for income taxes, excluding tax for the Ag divestiture | $114.8 | $81.6 |
| &nbsp;&nbsp;Cash tax paid for the Ag divestiture | 277.4 | 87.1 |
| (1) Includes $9.0 million, $17.1 million, and $9.1 million of cash and cash equivalents classified as held for sale as of January 3, 2025, September 27, 2024, and December 29, 2023. | (1) Includes $9.0 million, $17.1 million, and $9.1 million of cash and cash equivalents classified as held for sale as of January 3, 2025, September 27, 2024, and December 29, 2023. | (1) Includes $9.0 million, $17.1 million, and $9.1 million of cash and cash equivalents classified as held for sale as of January 3, 2025, September 27, 2024, and December 29, 2023. |

---

------

![image3.jpg](image3.jpg)

**REPORTING SEGMENTS**

(In millions)

(Unaudited)

---

| | | | |
|:---|:---|:---|:---|
| | Reportable Segments | Reportable Segments | Reportable Segments |
| | AECO | Field Systems | T&L |
| **Third Quarter of 2025** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment revenue | $358.5 | $408.7 | $134.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales | 58.7 | 167.4 | 32.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense | 185.9 | 104.6 | 67.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income | $113.9 | $136.7 | $34.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income % | 31.8% | 33.4% | 25.8% |
| **Third Quarter of 2024** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment revenue | $306.0 | $374.6 | $195.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales | 53.8 | 154.7 | 66.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense | 163.2 | 96.2 | 88.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income | $89.0 | $123.7 | $41.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income % | 29.1% | 33.0% | 21.0% |

---

---

| | | | |
|:---|:---|:---|:---|
| | Reportable Segments | Reportable Segments | Reportable Segments |
| | AECO | Field Systems | T&L |
| **First Three Quarters of 2025** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment revenue | $1044.2 | $1160.6 | $412.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales | 177.3 | 483.5 | 110.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense | 555.0 | 312.8 | 212.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income | $311.9 | $364.3 | $89.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income % | 29.9% | 31.4% | 21.6% |
| **First Three Quarters of 2024** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment revenue | $944.8 | $1173.1 | $582.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales | 162.5 | 519.1 | 209.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense | 487.5 | 322.2 | 259.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income | $294.8 | $331.8 | $113.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income % | 31.2% | 28.3% | 19.5% |

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![image3.jpg](image3.jpg)

**GAAP TO NON-GAAP RECONCILIATION**

(Dollars in millions, except per share data)

(Unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | Third Quarter of | Third Quarter of | Third Quarter of | Third Quarter of | First Three Quarters of | First Three Quarters of | First Three Quarters of | First Three Quarters of |
| | | 2025 | 2025 | 2024 | 2024 | 2025 | 2025 | 2024 | 2024 |
| | | Dollar Amount | % of Revenue | Dollar Amount | % of Revenue | Dollar Amount | % of Revenue | Dollar Amount | % of Revenue |
| **REVENUE:** |  |  |  |  |  |  |  |  |  |
| GAAP revenue: |  | $901.2 |  | $875.8 |  | $2617.5 |  | $2699.9 |  |
| **GROSS MARGIN:** |  |  |  |  |  |  |  |  |  |
| GAAP gross margin: |  | $621.1 | 68.9% | $575.6 | 65.7% | $1779.8 | 68.0% | $1715.1 | 63.5% |
| Amortization of purchased intangible assets | (A) | 16.4 |  | 18.9 |  | 48.9 |  | 74.7 |  |
| Stock-based compensation / deferred compensation | (C) | 3.7 |  | 4.2 |  | 12.2 |  | 12.7 |  |
| Restructuring and other costs | (D) | 0.8 |  | 0.9 |  | 1.4 |  | 2.9 |  |
| Non-GAAP gross margin: |  | $642.0 | 71.2% | $599.6 | 68.5% | $1842.3 | 70.4% | $1805.4 | 66.9% |
| **OPERATING EXPENSES:** |  |  |  |  |  |  |  |  |  |
| GAAP operating expenses: |  | $470.6 | 52.2% | $459.2 | 52.4% | $1404.0 | 53.6% | $1427.9 | 52.9% |
| Amortization of purchased intangible assets | (A) | (27.2) |  | (26.5) |  | (79.6) |  | (79.7) |  |
| Acquisition / divestiture items | (B) | (1.3) |  | (17.4) |  | (12.9) |  | (75.2) |  |
| Stock-based compensation / deferred compensation | (C) | (32.9) |  | (33.9) |  | (102.7) |  | (102.3) |  |
| Restructuring and other costs | (D) | (21.4) |  | (6.6) |  | (41.5) |  | (18.9) |  |
| Non-GAAP operating expenses: |  | $387.8 | 43.0% | $374.8 | 42.8% | $1167.3 | 44.6% | $1151.8 | 42.7% |
| **OPERATING INCOME:** |  |  |  |  |  |  |  |  |  |
| GAAP operating income: |  | $150.5 | 16.7% | $116.4 | 13.3% | $375.8 | 14.4% | $287.2 | 10.6% |
| Amortization of purchased intangible assets | (A) | 43.6 |  | 45.4 |  | 128.5 |  | 154.4 |  |
| Acquisition / divestiture items | (B) | 1.3 |  | 17.4 |  | 12.9 |  | 75.2 |  |
| Stock-based compensation / deferred compensation | (C) | 36.6 |  | 38.1 |  | 114.9 |  | 115.0 |  |
| Restructuring and other costs | (D) | 22.2 |  | 7.5 |  | 42.9 |  | 21.8 |  |
| Non-GAAP operating income: |  | $254.2 | 28.2% | $224.8 | 25.7% | $675.0 | 25.8% | $653.6 | 24.2% |
| **NON-OPERATING (EXPENSE) INCOME, NET:** | **NON-OPERATING (EXPENSE) INCOME, NET:** | **NON-OPERATING (EXPENSE) INCOME, NET:** |  |  |  |  |  |  |  |
| GAAP non-operating (expense) income, net: |  | $(25.4) |  | $(43.3) |  | $(51.0) |  | $1620.9 |  |
| Acquisition / divestiture items | (B) | 6.2 |  | 26.8 |  | (1.7) |  | (1692.7) |  |
| Deferred compensation | (C) | (1.9) |  | (1.6) |  | (3.9) |  | (4.7) |  |
| Restructuring and other costs | (D) | 2.9 |  | 1.4 |  | 5.8 |  | 6.8 |  |
| Non-GAAP non-operating expense, net: |  | $(18.2) |  | $(16.7) |  | $(50.8) |  | $(69.7) |  |
|  |  |  | Tax Rate % |  | Tax Rate % |  | Tax Rate % |  | Tax Rate % |
|  |  |  | (G) |  | (G) |  | (G) |  | (G) |
| **INCOME TAX PROVISION:** | **INCOME TAX PROVISION:** | **INCOME TAX PROVISION:** |  |  |  |  |  |  |  |
| GAAP income tax provision: |  | $13.6 | 10.9% | $32.5 | 44.5% | $57.4 | 17.7% | $493.9 | 25.9% |
| Non-GAAP items tax effected | (E) | 12.1 |  | 60.1 |  | 53.7 |  | (313.5) |  |
| Difference in GAAP and Non-GAAP tax rate | (F) | 15.6 |  | (56.4) |  | (2.4) |  | (79.4) |  |
| Non-GAAP income tax provision: |  | $41.3 | 17.5% | $36.2 | 17.4% | $108.7 | 17.4% | $101.0 | 17.3% |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **NET INCOME:** | | | | | | | | | |
| GAAP net income: |  | $111.5 |  | $40.6 |  | $267.4 |  | $1414.2 |  |
| Amortization of purchased intangible assets | (A) | 43.6 |  | 45.4 |  | 128.5 |  | 154.4 |  |
| Acquisition / divestiture items | (B) | 7.5 |  | 44.2 |  | 11.2 |  | (1617.5) |  |
| Stock-based compensation | (C) | 34.7 |  | 36.5 |  | 111.0 |  | 110.3 |  |
| Restructuring and other costs | (D) | 25.1 |  | 8.9 |  | 48.7 |  | 28.6 |  |
| Non-GAAP tax adjustments | (E) - (F) | (27.7) |  | (3.7) |  | (51.3) |  | 392.9 |  |
| Non-GAAP net income: |  | $194.7 |  | $171.9 |  | $515.5 |  | $482.9 |  |
| **DILUTED NET INCOME PER SHARE:** | **DILUTED NET INCOME PER SHARE:** | **DILUTED NET INCOME PER SHARE:** |  |  |  |  |  |  |  |
| GAAP diluted net income per share: |  | $0.46 |  | $0.16 |  | $1.10 |  | $5.73 |  |
| Amortization of purchased intangible assets | (A) | 0.18 |  | 0.18 |  | 0.53 |  | 0.63 |  |
| Acquisition / divestiture items | (B) | 0.03 |  | 0.18 |  | 0.05 |  | (6.56) |  |
| Stock-based compensation | (C) | 0.15 |  | 0.15 |  | 0.46 |  | 0.45 |  |
| Restructuring and other costs | (D) | 0.10 |  | 0.04 |  | 0.20 |  | 0.12 |  |
| Non-GAAP tax adjustments | (E) - (F) | (0.11) |  | (0.01) |  | (0.21) |  | 1.59 |  |
| Non-GAAP diluted net income per share: |  | $0.81 |  | $0.70 |  | $2.13 |  | $1.96 |  |
| **ADJUSTED EBITDA:** | **ADJUSTED EBITDA:** | **ADJUSTED EBITDA:** |  |  |  |  |  |  |  |
| GAAP operating income: |  | $150.5 | 16.7% | $116.4 | 13.3% | $375.8 | 14.4% | $287.2 | 10.6% |
| Amortization of purchased intangible assets | (A) | 43.6 |  | 45.4 |  | 128.5 |  | 154.4 |  |
| Acquisition / divestiture items | (B) | 1.3 |  | 17.4 |  | 12.9 |  | 75.2 |  |
| Stock-based compensation | (C) | 36.6 |  | 38.1 |  | 114.9 |  | 115.0 |  |
| Restructuring and other costs | (D) | 22.2 |  | 7.5 |  | 42.9 |  | 21.8 |  |
| Non-GAAP operating income: |  | 254.2 | 28.2% | 224.8 | 25.7% | 675.0 | 25.8% | 653.6 | 24.2% |
| &nbsp;&nbsp;&nbsp;Depreciation expense and cloud computing amortization |  | 12.3 |  | 11.8 |  | 36.6 |  | 34.8 |  |
| &nbsp;&nbsp;&nbsp;Income from equity method investments, net |  | 2.9 |  | 0.8 |  | 9.8 |  | 13.9 |  |
| Adjusted EBITDA: |  | $269.4 | 29.9% | $237.4 | 27.1% | $721.4 | 27.6% | $702.3 | 26.0% |
|  |  | First Three Quarters of | First Three Quarters of | First Three Quarters of | First Three Quarters of |  |  |  |  |
|  |  | 2025 | 2025 | 2024 | 2024 |  |  |  |  |
| **FREE CASH FLOW:** |  |  |  |  |  |  |  |  |  |
| Net cash provided by operating activities |  | $225.9 | 225.9 | $416.3 | 416.3 |  |  |  |  |
| Capital expenditures |  | 19.7 | 19.7 | 27.5 | 27.5 |  |  |  |  |
| Free cash flow |  | $206.2 | 206.2 | $388.8 | 388.8 |  |  |  |  |
|  |  | Fourth Quarter of 2025 | Fourth Quarter of 2025 | Year 2025 | Year 2025 |  |  |  |  |
|  |  | Low End | High End | Low End | High End |  |  |  |  |
| **FORECASTED DILUTED NET INCOME PER SHARE:** | **FORECASTED DILUTED NET INCOME PER SHARE:** | **FORECASTED DILUTED NET INCOME PER SHARE:** | **FORECASTED DILUTED NET INCOME PER SHARE:** |  |  |  |  |  |  |
| Forecasted GAAP diluted net income per share: |  | $0.59 | $0.67 | $1.69 | $1.77 |  |  |  |  |
| Amortization of purchased intangible assets | (A) | 0.18 | 0.18 | 0.71 | 0.71 |  |  |  |  |
| Acquisition / divestiture items | (B) | 0.02 | 0.02 | 0.06 | 0.06 |  |  |  |  |
| Stock-based compensation | (C) | 0.15 | 0.15 | 0.61 | 0.61 |  |  |  |  |
| Restructuring and other costs | (D) | 0.04 | 0.04 | 0.24 | 0.24 |  |  |  |  |
| Non-GAAP tax adjustments | (E) - (F) | (0.07) | (0.07) | (0.27) | (0.27) |  |  |  |  |
| Forecasted non-GAAP diluted net income per share: | Forecasted non-GAAP diluted net income per share: | $0.91 | $0.99 | $3.04 | $3.12 |  |  |  |  |

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![image3.jpg](image3.jpg)

**FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION**

This press release includes GAAP financial measures as well as non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP measures. We believe non-GAAP financial measures provide useful information to investors and others in understanding our "core operating performance", which excludes (i) the effect of non-cash items and certain variable charges not expected to recur and (ii) transactions that are not meaningful in comparison to our past operating performance or not reflective of ongoing financial results. Lastly, we believe that our core operating performance offers a supplemental measure for period-to-period comparisons and can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors.

The non-GAAP definitions and explanations to the adjustments to comparable GAAP measures are included below:

**Non-GAAP Definitions**

***Non-GAAP gross margin***

We define Non-GAAP gross margin as GAAP gross margin, excluding the effects of amortization of purchased intangible assets, stock-based compensation, deferred compensation, and restructuring and other costs. 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 operating expenses***

We define Non-GAAP operating expenses as GAAP operating expenses, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue.

***Non-GAAP operating income***

We define Non-GAAP operating income as GAAP operating income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP operating income trends, which are driven by revenue, gross margin, and spending.

***Non-GAAP non-operating expense, net***

We define Non-GAAP non-operating expense, net as GAAP non-operating (expense) income, net, excluding acquisition/divestiture items, deferred compensation, and restructuring and other costs. We believe this measure helps investors evaluate our non-operating expense trends.

***Non-GAAP income tax provision***

We define Non-GAAP income tax provision as GAAP income tax provision, excluding charges and benefits such as net deferred tax impacts resulting from the non-U.S. intercompany transfer of intellectual property, deferred tax impacts from global intangible low-taxed income, and significant reserve releases upon the statute of limitations expirations. 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.

***Non-GAAP net income***

We define Non-GAAP net income as GAAP net income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. 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 diluted net income per share***

We define Non-GAAP diluted net income per share as GAAP diluted net income per share, excluding the effects of 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 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.

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***Adjusted EBITDA***

We define Adjusted EBITDA as non-GAAP operating income plus depreciation expense, cloud computing amortization, and income from equity method investments, net, excluding our proportionate share of items such as goodwill impairment, amortization of purchased intangibles, stock-based compensation, and restructuring costs. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA is a performance measure that we believe offers a useful view of the overall operations of our business because it facilitates operating performance comparisons by removing potential differences caused by variations unrelated to operating performance, such as capital structures (interest expense), income taxes, depreciation, amortization of purchased intangibles and cloud computing costs, and income from equity method investments, net.

***Free Cash Flow***

We define free cash flow as cash flow from operating activities minus capital expenditures. We believe this measure is important to investors evaluating our generation of cash flow.

**Explanations of Non-GAAP adjustments**

(A)***Amortization of purchased intangible assets*.** Non-GAAP gross margin and operating expenses exclude the amortization of purchased intangible assets, which primarily represents technology and/or customer relationships already developed.

(B)***Acquisition / divestiture items*.** Non-GAAP gross margin and operating expenses exclude costs consisting of external and incremental costs resulting directly from acquisitions, divestitures, and strategic investment activities such as legal, due diligence, integration, and other closing costs, including the acceleration of acquisition stock awards and adjustments to the fair value of earn-out liabilities. Non-GAAP non-operating expense, net, excludes one-time acquisition/divestiture charges, including foreign currency exchange rate gains/losses related to an acquisition, divestiture gains/losses, and strategic investment gains/losses. These are one-time costs that vary significantly in amount and timing and are not indicative of our core operating performance.

(C)***Stock-based compensation / deferred compensation*.** Non-GAAP gross margin and operating expenses exclude stock-based compensation and 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.

(D)***Restructuring and other costs.*** Non-GAAP gross margin and operating expenses exclude restructuring costs composed of termination benefits related to reductions in employee headcount and closure or exit of facilities; and other costs composed of one-time incremental expenses resulting from the re-audit and related remediation of control deficiencies. Non-GAAP non-operating expense net, excludes our proportionate share of items recorded in income from equity method investment items, such as goodwill impairment, amortization of purchased intangibles, stock-based compensation, and restructuring costs.

(E)***Non-GAAP items tax effected*.** This amount adjusts the provision for income taxes to reflect the effect of the non-GAAP items (A) through (D) on non-GAAP net income.

(F)***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 (i) deferred tax impacts from tax amortization relating to a non-U.S. intercompany transfer of intellectual property, (ii) deferred tax impacts from global intangible low-taxed income, and (iii) significant reserve releases upon statute of limitations expirations and audit closures.

(G)***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.

**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. ARR is calculated by taking our subscription and maintenance and support revenue for the current quarter and adding the portion of the contract value of all our term licenses attributable to the current quarter, then 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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**Organic Annualized Recurring Revenue**

Organic annualized recurring revenue refers to annualized recurring revenue excluding the impacts of (i) foreign currency translation, and (ii) acquisitions and divestitures that closed in the prior 12 months.

**Organic Revenue**

Organic revenue refers to revenue excluding the impacts of (i) foreign currency translation, and (ii) acquisitions and divestitures that closed in the prior 12 months.

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