SEC Filing | Trimble, Inc.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________

FORM 10-Q

___________________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED July 2, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission file number: 001-14845

TRIMBLE INC.

(Exact name of registrant as specified in its charter)

___________________________________________________


Delaware						94-2802192
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

935 Stewart Drive, Sunnyvale, CA 94085

(Address of principal executive offices) (Zip Code)

Telephone Number (408) 481-8000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large Accelerated Filer	ý	Accelerated Filer	¨
Non-accelerated Filer	¨	Smaller Reporting Company	☐
		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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

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

As of August 4, 2021, there were 251,619,889 shares of Common Stock, par value $0.001 per share, outstanding.

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SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are subject to the “safe harbor” created by those sections. These statements include, among other things:

•impact of the COVID-19 pandemic, including upon global or local macroeconomic conditions, our results of operations, and estimates or judgments;

•supply chain shortages and disruptions, resulting in increases in costs and reduced revenue;

•seasonal fluctuations in our hardware revenue, sales to U.S. governmental agencies, and expectations that we will experience less seasonality in the future;

•changes in global macroeconomic conditions;

•the portion of our revenue expected to come from sales to customers located in countries outside of the U.S.;

•our plans to continue to invest in research and development to actively develop and introduce new products and to deliver targeted solutions to the markets we serve;

•a continued shift in revenue towards a more significant mix of software and recurring revenue, including subscription, maintenance and support, and service revenue;

•our belief that increases in recurring revenue, including from our software and subscription solutions, will provide us with enhanced business visibility over time;

•our belief that our cash and cash equivalents, together with borrowings under the commitments for our credit facilities and senior notes, will be sufficient to meet our anticipated operating cash needs, debt service, and planned capital expenditures for at least the next twelve months;

•any anticipated benefits to us from our acquisitions and our ability to successfully integrate the acquired businesses;

•fluctuations in interest rates and foreign currency exchange rates;

•our belief that our gross unrecognized tax benefits will not materially change in the next twelve months;

•our growth strategy, including our focus on historically underserved large markets, the relative importance of organic growth versus strategic acquisitions, and the reasons that we acquire businesses; and

•our ability to convert backlog to revenue.

The forward-looking statements regarding future events and the future results of Trimble Inc. (“the Company” or “we” or “our” or “us”) are based on current expectations, estimates, forecasts, and projections about the industries in which we operate, our current tax structure, including where our assets are deemed to reside for tax purposes, and the beliefs and assumptions of our management. Discussions containing such forward-looking statements may be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of this Form 10-Q. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. These forward-looking statements involve certain risks and uncertainties that could cause actual results, levels of activity, performance, achievements, and events to differ materially from those implied by such forward-looking statements, including but not limited to those discussed in this report under the section entitled “Risk Factors” and elsewhere, and in other reports we file with the Securities and Exchange Commission (“SEC”), specifically the most recent Form 10-K for fiscal 2020 (the “2020 Form 10-K”) and in other reports we file with the SEC, each as it may be amended from time to time. These forward-looking statements are made as of the date of this Quarterly Report on Form 10-Q. We reserve the right to update these forward-looking statements for any reason, including the occurrence of material events, but assume no duty to update these statements to reflect subsequent events.

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TRIMBLE INC.

FORM 10-Q for the Quarter Ended July 2, 2021

TABLE OF CONTENTS


		Page
PART I.	Financial Information

ITEM 1.	Financial Statements (Unaudited):

	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Income	5

	Condensed Consolidated Statements of Comprehensive Income	6

	Condensed Consolidated Statements of Stockholders' Equity	7

	Condensed Consolidated Statements of Cash Flows	9

	Notes to Condensed Consolidated Financial Statements	10

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	32

ITEM 4.	Controls and Procedures	33

PART II.	Other Information

ITEM 1.	Legal Proceedings	33

ITEM 1A.	Risk Factors	33

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

ITEM 3.	Defaults Upon Senior Securities	33

ITEM 4.	Mine Safety Disclosures	33

ITEM 5.	Other Information	33

ITEM 6.	Exhibits	34

SIGNATURES		35

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PART I – FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TRIMBLE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	Second Quarter of		Fiscal Year End
As of	2021		2020

(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents	$	484.4	$	237.7

Accounts receivable, net	583.2		620.5

Inventories	298.5		301.7
Other current assets	128.4		121.5
Total current assets	1,494.5		1,281.4
Property and equipment, net	229.3		251.8
Operating lease right-of-use assets	114.4		128.9
Goodwill	3,846.8		3,876.5
Other purchased intangible assets, net	508.3		580.1
Deferred income tax assets	504.7		510.2
Other non-current assets	264.2		248.0
Total assets	$	6,962.2	$	6,876.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	89.1	$	255.8
Accounts payable	181.4		143.2
Accrued compensation and benefits	180.2		166.8
Deferred revenue	536.5		560.5

Other current liabilities	181.3		185.0
Total current liabilities	1,168.5		1,311.3
Long-term debt	1,292.3		1,291.4
Deferred revenue, non-current	69.6		53.3
Deferred income tax liabilities	288.8		300.3
Income taxes payable	54.5		62.2
Operating lease liabilities	96.8		109.2
Other non-current liabilities	153.1		150.6
Total liabilities	3,123.6		3,278.3
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $0.001 par value; 3.0 shares authorized; none issued and outstanding	—		—
Common stock, $0.001 par value; 360.0 shares authorized; 251.6 and 250.8 shares issued and outstanding at the end of the second quarter of 2021 and fiscal year end 2020, respectively	0.3		0.3
Additional paid-in-capital	1,873.0		1,801.7
Retained earnings	2,077.2		1,893.4
Accumulated other comprehensive loss	(111.9)		(98.5)
Total Trimble Inc. stockholders' equity	3,838.6		3,596.9
Noncontrolling interests	—		1.7
Total stockholders' equity	3,838.6		3,598.6
Total liabilities and stockholders' equity	$	6,962.2	$	6,876.9

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)


	Second Quarter of				First Two Quarters of
(In millions, except per share amounts)	2021		2020		2021		2020

Revenue:
Product	$	594.9	$	412.4	$	1,134.3	$	876.2
Service	162.1		156.6		324.4		319.0
Subscription	188.2		164.6		373.0		330.7
Total revenue	945.2		733.6		1,831.7		1,525.9
Cost of sales:
Product	286.0		199.4		541.7		409.5
Service	58.0		56.0		117.6		119.6
Subscription	53.8		49.3		109.6		103.4
Amortization of purchased intangible assets	22.0		23.2		44.1		46.7
Total cost of sales	419.8		327.9		813.0		679.2
Gross margin	525.4		405.7		1,018.7		846.7
Operating expense:
Research and development	138.3		114.0		267.7		232.2
Sales and marketing	125.2		103.6		247.6		235.3
General and administrative	99.6		68.8		185.0		141.8
Restructuring	4.5		5.1		6.0		8.0
Amortization of purchased intangible assets	13.0		16.6		26.7		33.5
Total operating expense	380.6		308.1		733.0		650.8
Operating income	144.8		97.6		285.7		195.9
Non-operating income (expense), net:
Interest expense, net	(16.6)		(19.6)		(33.5)		(40.1)

Income from equity method investments, net	10.0		9.7		21.8		19.1
Other income (expense), net	24.2		3.2		25.8		(4.6)
Total non-operating income (expense), net	17.6		(6.7)		14.1		(25.6)
Income before taxes	162.4		90.9		299.8		170.3
Income tax provision	23.5		27.7		46.3		45.2
Net income	138.9		63.2		253.5		125.1
Net income attributable to noncontrolling interests	—		0.2		0.1		0.2
Net income attributable to Trimble Inc.	$	138.9	$	63.0	$	253.4	$	124.9
Earnings per share attributable to Trimble Inc.:
Basic	$	0.55	$	0.25	$	1.01	$	0.50
Diluted	$	0.55	$	0.25	$	1.00	$	0.50
Shares used in calculating earnings per share:
Basic	251.5		250.0		251.3		250.0
Diluted	254.2		251.2		254.2		251.5

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


	Second Quarter of				First Two Quarters of
	2021		2020		2021		2020

(In millions)
Net income	$	138.9	$	63.2	$	253.5	$	125.1
Foreign currency translation adjustments, net of tax	18.1		32.6		(13.4)		(21.7)
Net unrealized gain, net of tax	—		—		—		0.2
Comprehensive income	157.0		95.8		240.1		103.6
Comprehensive income attributable to noncontrolling interests	—		0.2		0.1		0.2
Comprehensive income attributable to Trimble Inc.	$	157.0	$	95.6	$	240.0	$	103.4

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(UNAUDITED)


	Common stock					Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity		Noncontrolling Interest		Total
	Shares	Amount		Additional Paid-In Capital
(In millions)
Balance at the end of fiscal 2020	250.8	$	0.3	$	1,801.7	$	1,893.4	$	(98.5)	$	3,596.9	$	1.7	$	3,598.6
Net income	—	—		—		114.5		—		114.5		0.1		114.6
Other comprehensive loss	—	—		—		—		(31.5)		(31.5)		—		(31.5)
Comprehensive income										83.0				83.1
Issuance of common stock under employee plans, net of tax withholdings	0.7	—		18.2		(10.2)		—		8.0		—		8.0
Stock repurchases	(0.6)	—		(4.1)		(35.9)		—		(40.0)		—		(40.0)
Stock-based compensation	—	—		25.1		—		—		25.1		—		25.1
Noncontrolling interest investment	—	—		0.6		—		—		0.6		(1.8)		(1.2)
Balance at the end of the first quarter of fiscal 2021	250.9	$	0.3	$	1,841.5	$	1,961.8	$	(130.0)	$	3,673.6	$	—	$	3,673.6
Net income	—	—		—		138.9		—		138.9		—		138.9
Other comprehensive income	—	—		—		—		18.1		18.1		—		18.1
Comprehensive income										157.0				157.0
Issuance of common stock under employee plans, net of tax withholdings	0.7	—		(1.8)		(23.5)		—		(25.3)		—		(25.3)

Stock-based compensation	—	—		33.3		—		—		33.3		—		33.3

Balance at the end of the second quarter of fiscal 2021	251.6	$	0.3	$	1,873.0	$	2,077.2	$	(111.9)	$	3,838.6	$	—	$	3,838.6

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	Common stock					Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity		Noncontrolling Interest		Total
	Shares	Amount		Additional Paid-In Capital
(In millions)
Balance at the end of fiscal 2019	249.9	$	0.2	$	1,692.8	$	1,602.8	$	(176.8)	$	3,119.0	$	1.4	$	3,120.4
Net income	—	—		—		61.9		—		61.9		—		61.9
Other comprehensive loss	—	—		—		—		(54.1)		(54.1)		—		(54.1)
Comprehensive income										7.8				7.8
Issuance of common stock under employee plans, net of tax withholdings	1.0	—		20.4		(7.7)		—		12.7		—		12.7
Stock repurchases	(1.2)	—		(8.4)		(41.6)		—		(50.0)		—		(50.0)
Stock-based compensation	—	—		11.8		—		—		11.8		—		11.8
Noncontrolling interest investment	—	—		—		—		—		—		(0.4)		(0.4)
Balance at the end of the first quarter of fiscal 2020	249.7	$	0.2	$	1,716.6	$	1,615.4	$	(230.9)	$	3,101.3	$	1.0	$	3,102.3
Net income	—	—		—		63.0		—		63.0		0.2		63.2
Other comprehensive income	—	—		—		—		32.6		32.6		—		32.6
Comprehensive income										95.6				95.8
Issuance of common stock under employee plans, net of tax withholdings	0.5	—		1.9		(6.0)		—		(4.1)		—		(4.1)

Stock-based compensation	—	—		19.1		—		—		19.1		—		19.1
Balance at the end of the second quarter of fiscal 2020	250.2	$	0.2	$	1,737.6	$	1,672.4	$	(198.3)	$	3,211.9	$	1.2	$	3,213.1

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	First Two Quarters of
(In millions)	2021		2020
Cash flow from operating activities:
Net income	$	253.5	$	125.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	20.8		19.5
Amortization expense	70.8		80.2

Deferred income taxes	(4.9)		14.9
Stock-based compensation	62.8		29.3
Divestitures (gain) loss, net	(24.0)		2.4
Other, net	3.6		11.3
(Increase) decrease in assets:
Accounts receivable, net	35.2		115.7

Inventories	(0.3)		(33.2)
Other current and non-current assets	(22.4)		9.7
Increase (decrease) in liabilities:
Accounts payable	39.2		(31.1)
Accrued compensation and benefits	6.3		9.1
Deferred revenue	3.9		(8.4)

Other current and non-current liabilities	(15.7)		(41.3)
Net cash provided by operating activities	428.8		303.2
Cash flow from investing activities:
Acquisitions of businesses, net of cash acquired	(1.2)		(198.0)
Purchases of property and equipment	(21.4)		(29.6)





Net proceeds from sale of businesses	46.0		—
Net proceeds from sale of property and equipment	20.7		0.3
Other, net	(1.2)		(0.1)
Net cash provided by (used in) investing activities	42.9		(227.4)
Cash flow from financing activities:
Issuance of common stock, net of tax withholdings	(17.3)		8.7
Repurchases of common stock	(40.0)		(50.0)
Proceeds from debt and revolving credit lines	198.9		857.5
Payments on debt and revolving credit lines	(363.3)		(866.3)
Other, net	(1.4)		(10.8)
Net cash used in financing activities	(223.1)		(60.9)
Effect of exchange rate changes on cash and cash equivalents	(1.9)		(7.7)
Net increase in cash and cash equivalents	246.7		7.2
Cash and cash equivalents - beginning of period	237.7		189.2
Cash and cash equivalents - end of period	$	484.4	$	196.4

See accompanying Notes to the Condensed Consolidated Financial Statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

NOTE 1. OVERVIEW AND ACCOUNTING POLICIES

Company and Background

Trimble Inc., (“we” or “our” or “us”) is incorporated in the State of Delaware since October 2016.

Basis of Presentation

The Condensed Consolidated Financial Statements include our results and our consolidated subsidiaries. Intercompany accounts and transactions have been eliminated. Noncontrolling interests represent the noncontrolling stockholders’ proportionate share of the net assets and results of operations of our consolidated subsidiaries.

We prepared our interim Condensed Consolidated Financial Statements that accompany these notes in conformity with U.S. generally accepted accounting principles (“GAAP”), consistent in all material respects with those applied in our Form 10-K filed with the U.S. Securities and Exchange Commission on February 26, 2021 (the “2020 Form 10-K”).

We have made estimates and judgments affecting the amounts reported in our Condensed Consolidated Financial Statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. The interim financial information is unaudited, and reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This report should be read in conjunction with our 2020 Form 10-K where we include additional information about our significant accounting policies and the methods and assumptions used in our estimates.

We use a 52- to 53-week fiscal year ending on the Friday nearest to December 31. The second quarter of fiscal 2021 and 2020 ended on July 2, 2021 and July 3, 2020, respectively. Both fiscal 2021 and 2020 are 52-week years. Unless otherwise stated, all dates refer to our fiscal year and fiscal periods.

Recently Adopted Accounting Pronouncements

Income Taxes - Simplifying the Accounting for Income Taxes

In December 2019, the Financial Accounting Standards Board (FASB) issued amendments to the accounting for Income Taxes to reduce complexity by removing certain exceptions and implementing targeted simplifications. We adopted the new standard on a prospective basis at the beginning of fiscal year 2021. The adoption did not have a material impact on our Condensed Consolidated Financial Statements.

NOTE 2. STOCKHOLDERS’ EQUITY

Stock Repurchase Activities

In November 2017, our Board of Directors approved a stock repurchase program (“2017 Stock Repurchase Program”) authorizing the Company to repurchase up to $600.0 million of Trimble’s common stock.

Under the 2017 Stock Repurchase Program, we may repurchase shares from time to time in open market transactions, privately negotiated transactions, accelerated share buyback programs, tender offers, or by other means. The timing and amount of repurchase transactions are determined by management based on an evaluation of market conditions, share price, legal requirements, and other factors. The 2017 Stock Repurchase Program may be suspended, modified, or discontinued at any time without prior notice.

There were no stock repurchases during the second quarter of fiscal 2021. During the first two quarters of fiscal 2021, we repurchased approximately 0.6 million shares of common stock in open market purchases at an average price of $71.24 per share for a total of $40.0 million. At the end of the second quarter of fiscal 2021, the 2017 Stock Repurchase Program had remaining authorized funds of $50.7 million.

Stock repurchases are reflected as a decrease to common stock par value and additional-paid-in-capital, based on the average book value per share for all outstanding shares calculated at the time of each individual repurchase transaction. The excess of the purchase price over this average for each repurchase is charged to retained earnings. Common stock repurchases under the program are recorded based upon the trade date for accounting purposes.

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NOTE 3. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The following table presents a summary of our total intangible assets:


As of	Second Quarter of Fiscal 2021						Fiscal Year End 2020
	Gross						Gross
	Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
(In millions)	Amount		Amortization		Amount		Amount		Amortization		Amount
Developed product technology	$	1,057.4	$	(798.3)	$	259.1	$	1,118.2	$	(811.1)	$	307.1
Customer relationships	660.3		(419.1)		241.2		681.1		(419.3)		261.8
Trade names and trademarks	48.1		(45.5)		2.6		58.3		(51.9)		6.4
Distribution rights and other intellectual property	42.7		(37.3)		5.4		45.8		(41.0)		4.8
	$	1,808.5	$	(1,300.2)	$	508.3	$	1,903.4	$	(1,323.3)	$	580.1

The estimated future amortization expense of purchased intangible assets as of the end of the second quarter of fiscal 2021 was as follows:


(In millions)
2021 (Remaining)	$	68.2
2022	119.0
2023	106.8
2024	81.2
2025	46.8
Thereafter	86.3
Total	$	508.3

Goodwill

The changes in the carrying amount of goodwill by segment for the first two quarters of fiscal 2021 were as follows:


	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Balance as of fiscal year end 2020	$	1,997.4	$	415.7	$	453.8	$	1,009.6	$	3,876.5

Foreign currency translation and other adjustments	(13.8)		(4.2)		(2.3)		(9.4)		(29.7)

Balance as of the end of the second quarter of fiscal 2021	$	1,983.6	$	411.5	$	451.5	$	1,000.2	$	3,846.8

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NOTE 4. INVENTORIES

Inventories consisted of the following:


	Second Quarter of		Fiscal Year End
As of	2021		2020
(In millions)
Raw materials	$	101.0	$	95.6
Work-in-process	13.4		16.0
Finished goods	184.1		190.1
Total inventories	$	298.5	$	301.7

NOTE 5. SEGMENT INFORMATION

Our operating segments are determined based on how our chief operating decision maker (“CODM”) views and evaluates operations. Our reportable segments are described below:

•Buildings and Infrastructure: This segment primarily serves customers working in architecture, engineering, construction, and operations and maintenance.

•Geospatial: This segment primarily serves customers working in surveying, engineering, and government.

•Resources and Utilities: This segment primarily serves customers working in agriculture, forestry, and utilities.

•Transportation: This segment primarily serves customers working in long haul trucking and freight shipper markets.

The following Reporting Segment tables reflect the results of our reportable operating segments under our management reporting system. These results are not necessarily in conformity with U.S. GAAP. This is consistent with the way the CODM evaluates each of the segment's performance and allocates resources.


	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Second Quarter of Fiscal 2021
Revenue	$	364.7	$	219.7	$	197.5	$	163.3	$	945.2
Acquired deferred revenue adjustment	0.1		—		—		—		0.1
Segment revenue	$	364.8	$	219.7	$	197.5	$	163.3	$	945.3

Operating income	$	105.1	$	66.1	$	70.5	$	12.8	$	254.5
Acquired deferred revenue adjustment	0.1		—		—		—		0.1
Amortization of acquired capitalized commissions	(1.1)		—		—		—		(1.1)
Segment operating income	$	104.1	$	66.1	$	70.5	$	12.8	$	253.5

Depreciation expense	$	1.8	$	1.8	$	1.5	$	1.1	$	6.2

Second Quarter of Fiscal 2020
Revenue	$	295.2	$	145.2	$	142.9	$	150.3	$	733.6
Acquired deferred revenue adjustment	0.1		—		0.9		0.6		1.6
Segment revenue	$	295.3	$	145.2	$	143.8	$	150.9	$	735.2

Operating income	$	86.6	$	37.4	$	48.3	$	13.8	$	186.1
Acquired deferred revenue adjustment	0.1		—		0.9		0.6		1.6
Amortization of acquired capitalized commissions	(1.3)		—		(0.1)		—		(1.4)
Segment operating income	$	85.4	$	37.4	$	49.1	$	14.4	$	186.3

Depreciation expense	$	2.0	$	1.5	$	1.3	$	1.1	$	5.9

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First Two Quarters of Fiscal 2021
Revenue	$	707.7	$	401.4	$	402.7	$	319.9	$	1,831.7
Acquired deferred revenue adjustment	0.2		—		—		0.1		0.3
Segment revenue