Form 8-K

 

 

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): May 7, 2018

 

 

Trimble Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-14845   94-2802192

(State or other jurisdiction

of incorporation)

  (Commission
File Number)
 

(IRS Employer

I.D. No.)

935 Stewart Drive, Sunnyvale, California, 94085

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (408) 481-8000

 

 

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:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

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

 

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

 

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

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 May 7, 2018, Trimble Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended March 30, 2018. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by this reference.

The information in this Current Report on Form 8-K, including the exhibit, is furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in such filing.

 

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

 

Exhibit No.

  

Description

99.1    Press Release dated May 7, 2018 relating to the Company’s financial results for the quarter ended March 30, 2018.


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.
    a Delaware corporation
Dated: May 7, 2018     By:  

/s/ Robert G. Painter

      Robert G. Painter
      Chief Financial Officer
EX-99.1

Exhibit 99.1

Trimble Reports First Quarter 2018 Results

 

  First Quarter 2018 Revenue $742.2 million

 

  GAAP Diluted Earnings Per Share $0.23; Non-GAAP Diluted Earnings Per Share $0.44

SUNNYVALE, Calif., May 7, 2018 - Trimble Inc. (NASDAQ: TRMB) today announced financial results for the first quarter of 2018.

First Quarter 2018 Financial Summary

First quarter 2018 revenue of $742.2 million was up 22 percent as compared to the first quarter of 2017. Buildings and Infrastructure revenue was $224.7 million, up 20 percent. Geospatial revenue was $174.5 million, up 17 percent. Resources and Utilities revenue was $159.2 million, up 32 percent. Transportation revenue was $183.8 million, up 19 percent.

GAAP operating income was $64.2 million, up 17 percent as compared to the first quarter of 2017. GAAP operating margin was 8.6 percent of revenue as compared to 9.0 percent of revenue in the first quarter of 2017.

GAAP net income was $58.5 million, up 17 percent as compared to the first quarter of 2017. Diluted GAAP earnings per share were $0.23 as compared to diluted GAAP earnings per share of $0.19 in the first quarter of 2017.

Non-GAAP operating income of $139.5 million was up 30 percent as compared to the first quarter of 2017. Non-GAAP operating margin was 18.8 percent of revenue as compared to 17.6 percent of revenue in the first quarter of 2017.

Non-GAAP net income of $112.5 million was up 35 percent as compared to the first quarter of 2017. Diluted non-GAAP earnings per share were $0.44 as compared to diluted non-GAAP earnings per share of $0.33 in the first quarter of 2017.

The GAAP tax rate for the quarter was 12 percent as compared to 22 percent in the first quarter of 2017, and the non-GAAP tax rate was 19 percent as compared to 23 percent in the first quarter of 2017.

Operating cash flow for the first quarter of 2018 was $82.9 million, down 20 percent as compared to the first quarter of 2017. Deferred revenue for the first quarter of 2018 was $360.4 million, up 19 percent as compared to the first quarter of 2017.

During the first quarter, Trimble repurchased approximately 1.3 million shares of its common stock for $50.0 million. Approximately $392 million remains under the current share repurchase authorization as of the end of the first quarter. As previously announced, Trimble has temporarily suspended its stock buyback program.

“The strength of the first quarter reflects our improving competitive position and strong execution in every segment,” said Steven W. Berglund, Trimble’s president and chief executive officer. “Our strategic evolution, which is expected to accelerate with the recently announced Viewpoint and e-Builder acquisitions, will lead to higher value added solutions and higher revenue growth. These acquisitions are expected to be accretive to operating margins and cash flow in 2019.”

Forward Looking Guidance

For the second quarter of 2018, Trimble expects revenue to be between $755 million and $785 million with GAAP earnings per share of $0.21 to $0.26 and non-GAAP earnings per share of $0.42 to $0.46. Non-GAAP guidance excludes the amortization of intangibles of $42 million related to previous acquisitions, anticipated acquisition costs of $8 million, the anticipated impact of stock-based compensation expense of $15 million, and $2 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 15 percent and non-GAAP guidance assumes a tax rate of 19 percent. Both GAAP and non-GAAP earnings per share assume approximately 253 million shares outstanding.

New Accounting Standard

Trimble adopted a new accounting standard, ASC 606, starting with the first quarter of fiscal 2018, which primarily affects recognition of revenue and related costs of sales for software term licenses, custom professional services contracts, and contracts with non-standard terms and conditions. Trimble is utilizing the full retrospective method of transition, and prior periods presented here have been restated to reflect adoption of this new standard.


Investor Conference Call / Webcast Details

Trimble will hold a conference call on May 7 at 2:00 p.m. PT to review its first quarter 2018 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 6279819. The replay will also be available on the Web at the address above.

Use of Non-GAAP Financial Information

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 specific non-GAAP measures, which Trimble uses along with a reconciliation to the nearest comparable GAAP measures and the explanation for why these non-GAAP measures provide useful information to investors regarding the financial condition and results of operations and why management chose to exclude selected items can be found at the end of this release. 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. Trimble’s 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. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results, which is attached to this earnings release. Additional financial information about Trimble’s use of non-GAAP results can be found on the investor relations page of our website at: http://investor.trimble.com.

About Trimble

Trimble is transforming the way the world works by delivering products and services that connect the physical and digital worlds. Core technologies in positioning, modeling, connectivity and data analytics enable customers to improve productivity, quality, safety and sustainability. From purpose built products to enterprise lifecycle solutions, Trimble software, hardware and services are transforming a broad range of industries such as agriculture, construction, geospatial and transportation and logistics. 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 for future financial market and economic conditions, the potential for growth and margin expansion in 2018, the ability to deliver revenue, earnings per share and other financial projections that Trimble has guided for the second quarter of 2018, including the expected tax rate, anticipated impact of stock-based compensation expense, amortization of intangibles related to previous acquisitions, anticipated acquisition costs, restructuring charges, the anticipated number of diluted shares outstanding, the planned Viewpoint acquisition and financing thereof, and the impact of the Viewpoint and e-Builder acquisitions on Trimble’s financial results. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. These factors include, for example, Trimble’s expected tax rate and current expected income, which are based on current tax law, including current interpretations of the Tax Cuts and Jobs Act of 2017 (“TCJA”), and may be affected by evolving interpretations of TCJA; the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to realize deferred tax assets; the ability to complete the Viewpoint acquisition on the anticipated schedule, or at all; the ability to obtain long-term financing for the Viewpoint acquisition on favorable terms, or at all; and synergies between Viewpoint and Trimble, and acquisition accounting for Viewpoint, including the impact of the reduction of deferred revenue, are estimated and may be materially different


from actual results. The Company’s results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, or integrate new acquisitions. The Company’s results would also be negatively adverse geopolitical developments, weakening in the macro environment, foreign exchange fluctuations, or the imposition of barriers to international trade. Any failure to achieve predicted results could negatively impact the Company’s revenues, 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, such as changes in economic conditions, critical part supply chain shortages, and possible write-offs of goodwill. Undue reliance should not be placed on any forward-looking statement contained herein, especially in light of greater uncertainty than normal in the economy in general. 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

 


LOGO

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

 

     First Quarter of  
     2018     2017
* As Adjusted
 

Revenue:

    

Product

   $ 497.8     $ 409.6  

Service

     128.8       106.6  

Subscription

     115.6       94.4  
  

 

 

   

 

 

 

Total revenue

     742.2       610.6  
  

 

 

   

 

 

 

Cost of sales:

    

Product

     235.4       193.4  

Service

     59.6       47.0  

Subscription

     27.9       26.9  

Amortization of purchased intangible assets

     23.1       19.0  
  

 

 

   

 

 

 

Total cost of sales

     346.0       286.3  
  

 

 

   

 

 

 

Gross margin

     396.2       324.3  
  

 

 

   

 

 

 

Gross margin (%)

     53.4     53.1

Operating expense:

    

Research and development

     109.3       88.7  

Sales and marketing

     122.1       94.4  

General and administrative

     81.6       69.3  

Restructuring charges

     1.6       2.9  

Amortization of purchased intangible assets

     17.4       14.3  
  

 

 

   

 

 

 

Total operating expense

     332.0       269.6  
  

 

 

   

 

 

 

Operating income

     64.2       54.7  

Non-operating income, net:

    

Interest expense, net

     (9.5     (6.1

Foreign currency transaction gain, net

     3.7       1.4  

Income from equity method investments, net

     4.9       4.2  

Other income, net

     3.4       9.5  
  

 

 

   

 

 

 

Total non-operating income, net

     2.5       9.0  
  

 

 

   

 

 

 

Income before taxes

     66.7       63.7  

Income tax provision

     8.0       13.9  
  

 

 

   

 

 

 

Net income

     58.7       49.8  

Net gain attributable to noncontrolling interests

     0.2       —    
  

 

 

   

 

 

 

Net income attributable to Trimble Inc.

   $ 58.5     $ 49.8  
  

 

 

   

 

 

 

Earnings per share attributable to Trimble Inc.:

    

Basic

   $ 0.24     $ 0.20  
  

 

 

   

 

 

 

Diluted

   $ 0.23     $ 0.19  
  

 

 

   

 

 

 

Shares used in calculating earnings per share:

    

Basic

     248.8       252.0  
  

 

 

   

 

 

 

Diluted

     253.2       255.9  
  

 

 

   

 

 

 

 

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


LOGO

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

As of

   First Quarter of
2018
    Fiscal Year End
2017
* As Adjusted
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 274.5     $ 358.5  

Short-term investments

     —         178.9  

Accounts receivable, net

     475.7       427.7  

Other receivables

     33.4       42.8  

Inventories

     289.1       264.6  

Other current assets

     51.9       39.2  
  

 

 

   

 

 

 

Total current assets

     1,124.6       1,311.7  

Property and equipment, net

     184.3       174.0  

Goodwill

     2,726.4       2,287.1  

Other purchased intangible assets, net

     466.2       364.8  

Deferred costs, non-current

     35.6       35.0  

Other non-current assets

     136.6       143.7  
  

 

 

   

 

 

 

Total assets

   $ 4,673.7     $ 4,316.3  
  

 

 

   

 

 

 

Liabilities and Shareholders’ Equity

    

Current liabilities:

    

Short-term debt

   $ 430.5     $ 128.4  

Accounts payable

     157.4       146.0  

Accrued compensation and benefits

     105.8       143.9  

Deferred revenue

     324.2       237.6  

Accrued warranty expense

     18.9       18.3  

Other current liabilities

     110.0       99.2  
  

 

 

   

 

 

 

Total current liabilities

     1,146.8       773.4  

Long-term debt

     691.8       785.5  

Non-current deferred revenue

     36.2       39.0  

Deferred income tax liabilities

     49.8       47.8  

Income taxes payable

     80.4       94.1  

Other non-current liabilities

     168.8       162.0  
  

 

 

   

 

 

 

Total liabilities

     2,173.8       1,901.8  
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock

     0.2       0.2  

Additional paid-in-capital

     1,497.0       1,461.1  

Retained earnings

     1,103.6       1,084.6  

Accumulated other comprehensive loss

     (101.1     (131.4
  

 

 

   

 

 

 

Total Trimble Inc. stockholders’ equity

     2,499.7       2,414.5  

Noncontrolling interests

     0.2       —    
  

 

 

   

 

 

 

Total stockholders’ equity

     2,499.9       2,414.5  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 4,673.7     $ 4,316.3  
  

 

 

   

 

 

 

 

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


LOGO

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

     First Quarter of  
     2018     2017
* As Adjusted
 

Cash flow from operating activities:

    

Net income

   $ 58.7     $ 49.8  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation expense

     8.5       8.9  

Amortization expense

     40.5       33.3  

Stock-based compensation

     17.4       13.7  

Income from equity method investments

     (0.1     (2.7

Other non-cash items

     (7.4     (9.7

Decrease (increase) in assets:

    

Accounts receivable

     (29.4     (34.0

Inventories

     (21.7     (2.4

Other current and non-current assets

     (10.6     (4.7

Increase (decrease) in liabilities:

    

Accounts payable

     11.1       3.5  

Accrued compensation and benefits

     (41.6     (14.8

Deferred revenue

     69.6       53.3  

Other liabilities

     (12.1     9.8  
  

 

 

   

 

 

 

Net cash provided by operating activities

     82.9       104.0  
  

 

 

   

 

 

 

Cash flow from investing activities:

    

Acquisitions of businesses, net of cash acquired

     (518.7     (78.5

Acquisitions of property and equipment

     (18.2     (5.7

Purchases of short-term investments

     (24.0     (59.0

Proceeds from maturities of short-term investments

     6.2       24.4  

Proceeds from sales of short-term investments

     196.8       3.9  

Other

     4.4       19.6  
  

 

 

   

 

 

 

Net cash used in investing activities

     (353.5     (95.3
  

 

 

   

 

 

 

Cash flow from financing activities:

    

Issuance of common stock, net of tax withholdings

     25.3       39.6  

Repurchases of common stock

     (53.0     (14.2

Proceeds from debt and revolving credit lines

     591.0       252.0  

Payments on debt and revolving credit lines

     (383.0     (226.1

Other

     —         (0.3
  

 

 

   

 

 

 

Net cash provided by financing activities

     180.3       51.0  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     6.3       5.0  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (84.0     64.7  

Cash and cash equivalents—beginning of period

     358.5       216.1  
  

 

 

   

 

 

 

Cash and cash equivalents—end of period

   $ 274.5     $ 280.8  
  

 

 

   

 

 

 

 

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


LOGO

REPORTING SEGMENTS

(Dollars in millions)

(Unaudited)

 

     Reporting Segments  
     Buildings
and
Infrastructure
    Geospatial     Resources
and
Utilities
    Transportation  

FIRST QUARTER OF FISCAL 2018 :

        

Revenue

   $ 224.7     $ 174.5     $ 159.2     $ 183.8  

Operating income before corporate allocations

   $ 43.5     $ 37.3     $ 51.7     $ 30.4  

Operating margin (% of segment external net revenue)

     19.4     21.4     32.5     16.5

FIRST QUARTER OF FISCAL 2017 as adjusted :

        

Revenue

   $ 186.5     $ 149.6     $ 120.2     $ 154.3  

Operating income before corporate allocations

   $ 31.7     $ 27.9     $ 42.6     $ 23.5  

Operating margin (% of segment external net revenue)

     17.0     18.6     35.4     15.2

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


LOGO

GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

 

          First Quarter of  
          2018     2017
* As Adjusted
 
          Dollar     % of     Dollar     % of  
          Amount     Revenue     Amount     Revenue  

GROSS MARGIN:

           

GAAP gross margin:

      $ 396.2       53.4   $ 324.3       53.1

Restructuring charges

   ( A )      (0.2     —       0.5       0.1

Amortization of purchased intangible assets

   ( B )      23.1       3.1     19.0       3.1

Stock-based compensation

   ( C )      1.1       0.1     0.8       0.2

Amortization of acquisition-related inventory step-up

   ( D )      —         —       0.1       —  

Acquisition / divestiture items

   ( E )      2.0       0.3     —         —  
     

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross margin:

      $ 422.2       56.9   $ 344.7       56.5
     

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING EXPENSES:

           

GAAP operating expenses:

      $ 332.0       44.8   $ 269.6       44.1

Restructuring charges

   ( A )      (1.6     (0.2 )%      (2.9     (0.5 )% 

Amortization of purchased intangible assets

   ( B )      (17.4     (2.3 )%      (14.3     (2.3 )% 

Stock-based compensation

   ( C )      (16.3     (2.3 )%      (12.9     (2.1 )% 

Acquisition / divestiture items

   ( E )      (14.0     (1.9 )%      (2.1     (0.3 )% 
     

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating expenses:

      $ 282.7       38.1   $ 237.4       38.9
     

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME:

           

GAAP operating income:

      $ 64.2       8.6   $ 54.7       9.0

Restructuring charges

   ( A )      1.4       0.2     3.4       0.6

Amortization of purchased intangible assets

   ( B )      40.5       5.4     33.3       5.4

Stock-based compensation

   ( C )      17.4       2.4     13.7       2.3

Amortization of acquisition-related inventory step-up

   ( D )      —         —       0.1       —  

Acquisition / divestiture items

   ( E )      16.0       2.2     2.1       0.3
     

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income:

      $ 139.5       18.8   $ 107.3       17.6
     

 

 

   

 

 

   

 

 

   

 

 

 


NON-OPERATING INCOME (EXPENSE), NET:

                

GAAP non-operating income, net:

      $ 2.5          $ 9.0      

Acquisition / divestiture items

   ( E )      (2.8          (8.1    
     

 

 

        

 

 

     

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

      $ (0.3        $ 0.9      
     

 

 

        

 

 

     
                GAAP and                GAAP and      
                Non-GAAP                Non-GAAP      
                Tax Rate %     ( H )          Tax Rate %     ( H )

INCOME TAX PROVISION:

                

GAAP income tax provision:

      $ 8.0       12      $ 13.9       22  

Non-GAAP items tax effected

   ( F )      8.7            9.8      

Difference in GAAP and Non-GAAP tax rate

   ( G )      9.8            1.2      
     

 

 

   

 

 

      

 

 

   

 

 

   

Non-GAAP income tax provision:

      $ 26.5       19      $ 24.9       23  
     

 

 

   

 

 

      

 

 

   

 

 

   

NET INCOME:

                

GAAP net income attributable to Trimble Inc.:

      $ 58.5          $ 49.8      

Restructuring charges

   ( A )      1.4            3.4      

Amortization of purchased intangible assets

   ( B )      40.5            33.3      

Stock-based compensation

   ( C )      17.4            13.7      

Amortization of acquisition-related inventory step-up

   ( D )      —              0.1      

Acquisition / divestiture items

   ( E )      13.2            (6.0    

Non-GAAP tax adjustments

   (F) + (G)      (18.5          (11.0    
     

 

 

        

 

 

     

Non-GAAP net income attributable to Trimble Inc.:

      $ 112.5          $ 83.3      
     

 

 

        

 

 

     

DILUTED NET INCOME PER SHARE:

                

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

      $ 0.23          $ 0.19      

Restructuring charges

   ( A )      —              0.01      

Amortization of purchased intangible assets

   ( B )      0.16            0.13      

Stock-based compensation

   ( C )      0.07            0.05      

Amortization of acquisition-related inventory step-up

   ( D )      —              —        

Acquisition / divestiture items

   ( E )      0.05            (0.02    

Non-GAAP tax adjustments

   ( F ) + ( G )      (0.07          (0.03    
     

 

 

        

 

 

     

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

      $ 0.44          $ 0.33      
     

 

 

        

 

 

     

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


LOGO

FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION

(Unaudited)

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

Non-GAAP gross 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 restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, and acquisition/divestiture items associated with the acceleration of acquisition stock options from GAAP gross margin. We believe that these exclusions offer investors additional information that may be useful to view trends in our gross margin performance.

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

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

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

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

Non-GAAP income tax 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 restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition/divestiture items, and non-GAAP tax adjustments from GAAP net income. We believe our investors benefit from understanding these exclusions and from an alternative view of our net income performance as compared to our past net income performance.

Non-GAAP diluted net income per 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 restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition/divestiture items, and non-GAAP tax adjustments from GAAP diluted net income per share. We believe that these exclusions offer investors a useful view of our diluted net income per share as compared to our past diluted net income per share.

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

 

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

 

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

 

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


     First Quarter of  
(Dollars in millions)    2018      2017  

Cost of sales

   $ 1.1      $ 0.8  

Research and development

     3.1        2.4  

Sales and marketing

     2.3        2.2  

General and administrative

     10.9        8.3  
  

 

 

    

 

 

 

Total stock-based compensation

   $ 17.4      $ 13.7  
  

 

 

    

 

 

 

 

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

 

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

 

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

 

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

 

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


LOGO

NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

     As Reported     ASC 606 Adjustments     As Adjusted  
     Fiscal Year End     Fiscal Year End     Fiscal Year End     Fiscal Year End     Fiscal Year End     Fiscal Year End  

As of

   2017     2016     2017     2016     2017     2016  

Assets

            

Current assets:

            

Cash and cash equivalents

   $ 358.5     $ 216.1     $ —       $ —       $ 358.5     $ 216.1  

Short term investments

     178.9       111.1       —         —         178.9       111.1  

Accounts receivable, net

     414.8       354.8       12.9       11.4       427.7       366.2  

Other receivables

     42.8       35.4       —         —         42.8       35.4  

Inventories

     271.8       218.8       (7.2     (5.5     264.6       213.3  

Other current assets

     50.3       42.5       (11.1     (2.7     39.2       39.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     1,317.1       978.7       (5.4     3.2       1,311.7       981.9  

Property and equipment, net

     174.0       144.2       —         —         174.0       144.2  

Goodwill

     2,287.1       2,077.6       —         —         2,287.1       2,077.6  

Other purchased intangible assets, net

     364.8       333.3       —         —         364.8       333.3  

Deferred costs, non-current

     —         —         35.0       30.3       35.0       30.3  

Other non-current assets

     155.2       140.0       (11.5     (15.1     143.7       124.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 4,298.2     $ 3,673.8     $ 18.1     $ 18.4     $ 4,316.3     $ 3,692.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

            

Current liabilities:

            

Short-term debt

   $ 128.4     $ 130.3     $ —       $ —       $ 128.4     $ 130.3  

Accounts payable

     146.1       109.8       (0.1     0.1       146.0       109.9  

Accrued compensation and benefits

     143.0       97.5       0.9       0.6       143.9       98.1  

Deferred revenue

     272.4       246.5       (34.8     (34.7     237.6       211.8  

Accrued warranty expense

     18.3       17.2       —         —         18.3       17.2  

Other current liabilities

     101.0       86.9       (1.8     (4.0     99.2       82.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     809.2       688.2       (35.8     (38.0     773.4       650.2  

Long-term debt

     785.5       489.6       —         —         785.5       489.6  

Non-current deferred revenue

     41.0       37.7       (2.0     (3.1     39.0       34.6  

Deferred income tax liabilities

     40.4       38.8       7.4       10.0       47.8       48.8  

Income taxes payable

     94.1       —         —         —         94.1       —    

Other non-current liabilities

     162.0       113.8       —         —         162.0       113.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     1,932.2       1,368.1       (30.4     (31.1     1,901.8       1,337.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stockholders’ equity:

            

Common stock

     0.2       0.3       —         —         0.2       0.3  

Additional paid-in capital

     1,461.1       1,348.3       —         —         1,461.1       1,348.3  

Retained earnings

     1,035.9       1,177.1       48.7       51.4       1,084.6       1,228.5  

Accumulated other comprehensive loss

     (131.2     (219.9     (0.2     (1.9     (131.4     (221.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Trimble Inc. stockholders’ equity

     2,366.0       2,305.8       48.5       49.5       2,414.5       2,355.3  

Noncontrolling interests

     —         (0.1     —         —         —         (0.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     2,366.0       2,305.7       48.5       49.5       2,414.5       2,355.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 4,298.2     $ 3,673.8     $ 18.1     $ 18.4     $ 4,316.3     $ 3,692.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


LOGO

NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

 

     As Reported     ASC 606 & ASU 2017-07 Adjustments     As Adjusted  
     Fiscal Year     Fiscal Year     Fiscal Year     Fiscal Year     Fiscal Year     Fiscal Year  
     2017     2016     2017     2016     2017     2016  

Revenue:

            

Product

   $ 1,763.8     $ 1,562.0     $ —       $ 8.6     $ 1,763.8     $ 1,570.6  

Service

     461.6       430.2       13.8       6.5       475.4       436.7  

Subscription

     428.8       370.0       (21.5     (15.2     407.3       354.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     2,654.2       2,362.2       (7.7     (0.1     2,646.5       2,362.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of sales:

            

Product

     866.5       760.8       9.1       3.2       875.6       764.0  

Service

     196.3       169.9       (1.9     0.2       194.4       170.1  

Subscription

     113.0       104.9       0.1       —         113.1       104.9  

Amortization of purchased intangible assets

     85.8       88.6       —         —         85.8       88.6  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

     1,261.6       1,124.2       7.3       3.4       1,268.9       1,127.6  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     1,392.6       1,238.0       (15.0     (3.5     1,377.6       1,234.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin (%)

     52.5     52.4         52.1     52.3

Operating expense:

            

Research and development

     370.2       349.6       —         —         370.2       349.6  

Sales and marketing

     404.2       377.6       (4.1     (2.9     400.1       374.7  

General and administrative

     302.3       256.0       (0.6     —         301.7       256.0  

Restructuring charges

     6.9       11.6       —         —         6.9       11.6  

Amortization of purchased intangible assets

     63.0       62.2       —         —         63.0       62.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expense

     1,146.6       1,057.0       (4.7     (2.9     1,141.9       1,054.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     246.0       181.0       (10.3     (0.6     235.7       180.4  

Non-operating income (expense), net:

            

Interest expense, net

     (25.0     (25.9     (0.2     —         (25.2     (25.9

Foreign currency transaction gain (loss), net

     3.3       (1.9     —         —         3.3       (1.9

Income from equity method investments, net

     29.5       17.6       —         —         29.5       17.6  

Other income, net

     5.3       5.9       (0.4     —         4.9       5.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-operating income (expense), net

     13.1       (4.3     (0.6     —         12.5       (4.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes

     259.1       176.7       (10.9     (0.6     248.2       176.1  

Income tax provision

     137.9       44.5       (8.2     (0.6     129.7       43.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     121.2       132.2       (2.7     —         118.5       132.2  

Net gain (loss) attributable to noncontrolling interests

     0.1       (0.2     —         —         0.1       (0.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Trimble Inc.

   $ 121.1     $ 132.4     $ (2.7   $ —       $ 118.4     $ 132.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to Trimble Inc.

            

Basic

   $ 0.48     $ 0.53     $ (0.01   $ —       $ 0.47     $ 0.53  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.47     $ 0.52     $ (0.01   $ —       $ 0.46     $ 0.52  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in calculating net income per share:

            

Basic

     252.1       250.5       —         —         252.1       250.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     256.7       253.9       —         —         256.7       253.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


LOGO

NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In millions, except per share data)

(Unaudited)

 

     Q1’17  
     As Reported     ASC 606
Adjustments
    As Adjusted  

Revenue:

      

Product

   $ 405.4     $ 4.2     $ 409.6  

Service

     106.8       (0.2     106.6  

Subscription

     101.7       (7.3     94.4  
  

 

 

   

 

 

   

 

 

 

Total revenue

     613.9       (3.3     610.6  
  

 

 

   

 

 

   

 

 

 

Cost of sales:

      

Product

     194.4       (1.0     193.4  

Service

     47.1       (0.1     47.0  

Subscription

     26.8       0.1       26.9  

Amortization of purchased intangible assets

     19.0       —         19.0  
  

 

 

   

 

 

   

 

 

 

Total cost of sales

     287.3       (1.0     286.3  
  

 

 

   

 

 

   

 

 

 

Gross margin

     326.6       (2.3     324.3  
  

 

 

   

 

 

   

 

 

 

Gross margin (%)

     53.2       53.1

Operating expense:

      

Research and development

     88.7       —         88.7  

Sales and marketing

     94.8       (0.4     94.4  

General and administrative

     69.3       —         69.3  

Restructuring charges

     2.9       —         2.9  

Amortization of purchased intangible assets

     14.3       —         14.3  
  

 

 

   

 

 

   

 

 

 

Total operating expense

     270.0       (0.4     269.6  
  

 

 

   

 

 

   

 

 

 

Operating income

     56.6       (1.9     54.7  

Non-operating income (expense), net:

      

Interest expense, net

     (6.1     —         (6.1

Foreign currency transaction gain, net

     1.4       —         1.4  

Income from equity method investments, net

     4.2       —         4.2  

Other income (loss), net

     9.5       —         9.5  
  

 

 

   

 

 

   

 

 

 

Total non-operating income (expense), net

     9.0       —         9.0  
  

 

 

   

 

 

   

 

 

 

Income before taxes

     65.6       (1.9     63.7  

Income tax provision

     15.1       (1.2     13.9  
  

 

 

   

 

 

   

 

 

 

Net income (loss)

     50.5       (0.7     49.8  

Net gain attributable to noncontrolling interests

     —         —         —    
  

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Trimble Inc.

   $ 50.5     $ (0.7   $ 49.8  
  

 

 

   

 

 

   

 

 

 

Net income (loss) per share attributable to Trimble Inc.

      

Basic

   $ 0.20     $ —       $ 0.20  
  

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.20     $ (0.01   $ 0.19  
  

 

 

   

 

 

   

 

 

 

Shares used in calculating net income (loss) per share:

      

Basic

     252.0       —         252.0  
  

 

 

   

 

 

   

 

 

 

Diluted

     255.9       —         255.9  
  

 

 

   

 

 

   

 

 

 


LOGO

NEW ACCOUNTING STANDARDS ADOPTION IMPACT

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

     As Reported    

ASC 606 Adjustments

*ASU 2016-15 Adjustments

    As Adjusted  
     Fiscal Years     Fiscal Years     Fiscal Years  
     2017     2016     2017     2016     2017     2016  

Cash flow from operating activities:

            

Net income

   $ 121.2     $ 132.2     $ (2.7   $ —       $ 118.5     $ 132.2  

Adjustments to reconcile net income to net cash provided by operating activities:

            

Depreciation expense

     34.6       37.0       —         —         34.6       37.0  

Amortization expense

     148.8       150.8       —         —         148.8       150.8  

Stock-based compensation

     64.8       52.6       —         —         64.8       52.6  

Income from equity method investments

     (29.5     (17.6     18.1     17.6     (11.4     —    

Other non-cash items

     6.9       19.0       (8.2     (0.6     (1.3     18.4  

Decrease (increase) in assets:

            

Accounts receivable

     (41.6     1.2       (1.1     2.6       (42.7     3.8  

Inventories

     (38.7     24.0       1.4       2.2       (37.3     26.2  

Other current and non-current assets

     (15.5     0.2       5.5       2.0       (10.0     2.2  

Increase (decrease) in liabilities:

            

Accounts payable

     25.9       10.9       (0.2     (0.1     25.7       10.8  

Accrued compensation and benefits

     33.7       0.6       0.3       (0.3     34.0       0.3  

Deferred revenue

     16.4       26.1       2.9       (6.6     19.3       19.5  

Income taxes payable

     88.2       (16.1     —         —         88.2       (16.1

Accrued liabilities

     (3.3     (7.3     1.8     0.7     (1.5     (6.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     411.9       413.6       17.8       17.5       429.7       431.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flow from investing activities:

            

Acquisitions of businesses, net of cash acquired

     (293.1     (38.8     12.9     15.1     (280.2     (23.7

Acquisitions of property and equipment

     (43.7     (26.0     —         —         (43.7     (26.0

Purchases of short-term investments

     (288.0     (113.3     —         —         (288.0     (113.3

Proceeds from maturities of short-term investments

     122.1       2.4       —         —         122.1       2.4  

Proceeds from sales of short-term investments

     97.7       —         —         —         97.7       —    

Dividends received from equity method investments

     18.1       17.6       (18.1 )*      (17.6 )*      —         —    

Other

     20.9       13.7       —         —         20.9       13.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (366.0     (144.4     (5.2     (2.5     (371.2     (146.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flow from financing activities:

            

Issuance of common stock, net of tax withholdings

     73.8       67.5       —         —         73.8       67.5  

Repurchases and retirement of common stock

     (285.3     (119.5     —         —         (285.3     (119.5

Proceeds from debt and revolving credit lines

     786.0       355.0       —         —         786.0       355.0  

Payments on debt and revolving credit lines

     (495.4     (465.3     —         —         (495.4     (465.3

Other

     —         —         (12.6 )*      (15.0 )*      (12.6     (15.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     79.1       (162.3     (12.6     (15.0     66.5       (177.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     17.4       (6.8     —         —         17.4       (6.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     142.4       100.1       0.0       0.0       142.4       100.1  

Cash and cash equivalents - beginning of period

     216.1       116.0       —         —         216.1       116.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents - end of period

   $ 358.5     $ 216.1     $ 0.0     $ 0.0     $ 358.5     $ 216.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* ASU No. 2016-15, Statement of Cash Flows adoption reclassification adjustments were included in specified lines in fiscal 2017 and 2016.


LOGO

NEW ACCOUNTING STANDARDS ADOPTION IMPACT

REPORTING SEGMENTS

(Dollars in millions)

 

     As Reported     Topic 606 Adjustments     As Adjusted  
     Fiscal     Fiscal     Fiscal     Fiscal     Fiscal     Fiscal  
     Year     Year     Year     Year     Year     Year  
     2017     2016     2017     2016     2017     2016  

BUILDINGS AND INFRASTRUCTURE

 

Revenue

   $ 834.9     $ 743.5     $ (5.5   $ (1.7   $ 829.4     $ 741.8  

Operating income

   $ 179.9     $ 133.9     $ (3.9   $ (1.2   $ 176.0     $ 132.7  

Operating margin (% of segment external net revenues)

     21.5     18.0         21.2     17.9

GEOSPATIAL

 

Revenue

   $ 661.2     $ 634.7     $ (2.7   $ 1.0     $ 658.5     $ 635.7  

Operating income

   $ 130.9     $ 120.8     $ (1.5   $ (0.2   $ 129.4     $ 120.6  

Operating margin (% of segment external net revenues)

     19.8     19.0         19.7     19.0

RESOURCES AND UTILITIES

 

Revenue

   $ 476.9     $ 395.7     $ 4.1     $ 1.7     $ 481.0     $ 397.4  

Operating income

   $ 136.3     $ 118.4     $ 0.7     $ 0.4     $ 137.0     $ 118.8  

Operating margin (% of segment external net revenues)

     28.6     29.9         28.5     29.9

TRANSPORTATION

 

Revenue

   $ 681.2     $ 588.3     $ (3.6   $ (1.1   $ 677.6     $ 587.2  

Operating income

   $ 120.6     $ 102.9     $ (6.2   $ 0.4     $ 114.4     $ 103.3  

Operating margin (% of segment external net revenues)

     17.7     17.5         16.9     17.6