Trimble Annual Report 2019

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FY2019 Annual Report · Trimble

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CONNECTING THE
PHYSICAL AND
DIGITAL WORLDS

2019

ANNUAL REPORT

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 industries such as agriculture, construction,

geospatial and transportation.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________

FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the fiscal year ended January 3, 2020

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
(State or other jurisdiction of
incorporation or organization)

94-2802192
(I.R.S. Employer
Identification No.)

935 Stewart Drive, Sunnyvale, CA
(Address of principal executive offices)
94085
(Zip Code)
Registrant’s telephone number, including area code: (408) 481-8000
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

TRMB

NASDAQ Global Select Market

(Title of Class)

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities

Act. Yes
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange

Act. Yes
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
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 during the preceding 12 months (or for such shorter period that the registrant was required to

submit such files). Yes
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.

Large Accelerated Filer
Non-accelerated Filer
Emerging Growth Company

Accelerated Filer
Smaller Reporting 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

As of June 28, 2019, the aggregate market value of the common stock held by non-affiliates of the registrant was approximately $11.4
billion based on the closing price as reported on the NASDAQ Global Select Market. Shares of common stock held by each officer
and director of the registrant have been excluded in that such person may be deemed to be an affiliate. This determination of affiliate
status is not necessarily a conclusive determination for any other purpose.
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class
Common stock, $0.001 par value

Outstanding at February 26, 2020
250,166,168

DOCUMENTS INCORPORATED BY REFERENCE

Certain parts of Trimble Inc. Proxy Statement relating to the annual meeting of stockholders to be held on May 27, 2020 (the
“Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K.

SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K 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:

•
•

•

•
•

•

•
•
•
•

the portion of our revenue expected to come from sales to customers located in countries outside of the U.S.;
seasonal fluctuations in our construction equipment revenue, sales to U.S. governmental agencies, agricultural equipment
business revenue, global macroeconomic conditions, and expectations that we may experience less seasonality in the
future;
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, recurring revenue, and services;
our belief that increases in recurring revenue 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; and
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.

The forward-looking statements regarding future events and the future results of Trimble Inc. (“Trimble” or “the Company” or
“we” or “our” or “us”) are based on current expectations, estimates, forecasts, and projections about the industries in which Trimble
operates, Trimble's current tax structure, including where Trimble's assets are deemed to reside for tax purposes, and the beliefs
and assumptions of the management of Trimble. Discussions containing such forward-looking statements may be found in
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” below. 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 Trimble files with the Securities and Exchange
Commission (“SEC”), specifically the most recent reports on Form 8-K and Form 10-Q, each as it may be amended from time to
time. These forward-looking statements are made as of the date of this Annual Report on Form 10-K. We reserve the right to
update these statements for any reason, including the occurrence of material events, but assume no duty to update these statements
to reflect subsequent events. The risks and uncertainties under the caption “Risks and Uncertainties” contained herein, among
other things, should be considered in evaluating our prospects and future financial performance.

TRIMBLE INC.

2019 FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS

PART I

Business

Item 1
Item 1A Risk Factors
Item 1B Unresolved Staff Comments
Item 2

Properties

Legal Proceedings

Item 3
Item 4 Mine Safety Disclosures

PART II

Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of

Equity Securities

Selected Financial Data

Item 6
Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A Quantitative and Qualitative Disclosures about Market Risk
Item 8

Financial Statements and Supplementary Data

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9
Item 9A Controls and Procedures
Item 9B Other Information

PART III

Item 10 Directors, Executive Officers, and Corporate Governance
Item 11 Executive Compensation
Item 12
Item 13 Certain Relationships, Related Transactions, and Director Independence
Item 14

Principal Accountant Fees and Services

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

PART IV

Item 15 Exhibits and Financial Statement Schedules
Item 16

Form 10-K Summary

Signatures

87
87

Item 1.

Business

PART I

Trimble Inc., a Delaware corporation, is a leading provider of technology solutions that enable professionals and field mobile
workers to improve or transform their work processes. Our comprehensive work process solutions are used across a range of
industries including agriculture, architecture, civil engineering, survey, construction, geospatial, government, natural resources,
transportation, and utilities. Representative Trimble customers include engineering and construction firms, contractors, owners,
surveying companies, farmers and agricultural companies, trucking companies, energy, utility companies, and state, federal, and
municipal governments.

We transform the way the world works by delivering products and services that connect the physical and digital worlds. Core
technologies used in positioning, modeling, connectivity, and data analytics enable customers to improve productivity, quality,
safety, and sustainability. Our products are sold based on return on investment and provide benefits such as lower operational
costs, higher productivity, improved quality, enhanced safety and regulatory compliance, and reduced environmental impact.
Representative products include equipment that automates and enables increased precision within large industrial equipment such
as tractors and bulldozers; integrated systems that track and manage fleets of vehicles and workers and provide real-time information
and analytics to the back-office; data collection systems that enable the management of large amounts of geo-referenced information;
software solutions that connect all aspects of a construction site or a farm; and building information modeling ("BIM") software
that is used throughout the design, build, and operation of buildings.

We focus on integrating our broad technological and application capabilities to create vertically-focused, system-level solutions
that transform how work is done within the industries we serve. The integration of sensors, software, connectivity, and information
in our portfolio gives us the unique ability to provide an information model specific to the customer’s workflow. For example, in
construction, our strategy is centered on the concept of a “constructible model” that is at the center of our “Connected Construction”
solutions, which provides real-time, connected, and cohesive information environments for the design, build, and operational
phases of construction projects. In agriculture, we continue to develop “Connected Farm” solutions to optimize operations across
the agriculture workflow. In long haul trucking, our “Connected Fleet” solutions provide transportation companies with tools to
enhance fuel efficiency, safety, and transparency through connected vehicles and fleets across the enterprise.

Many of our products integrate real-time positioning or location technologies with wireless communications and software or
information technologies. Information about location or position is transmitted via a wireless link to a domain-specific software
application, which enhances the productivity of the worker, asset, or work process. Position is provided through a number of
technologies including the Global Positioning System ("GPS"), other Global Navigation Satellite Systems ("GNSS") and their
augmentation systems, and systems that use laser, optical, inertial, or other technologies to establish real-time position. Integration
of wireless communications in our solutions facilitates real-time data flow, communication, and situational awareness within sites
and between work sites or vehicles and offices.

Software is a key element of most of our solutions and accounts for a steadily increasing portion of our business. Our software
products and services range from embedded real-time firmware to application software that integrates field data with large scale
enterprise back-office applications. Many of our software solutions are built on configurable and enterprise grade scalable platforms
that can be tailored to the workflows that our customers follow to implement their customized business processes. Our software
capabilities include extensive 3-D modeling, analysis and design solutions, design and data preparation software, BIM software,
enterprise resource planning and project management solutions, cloud-based collaboration solutions, applications for advanced
surveying and geospatial data collection and analysis, farm productivity solutions, fleet management solutions for transportation,
as well as a large suite of domain-specific software applications used across a host of industries including agriculture, construction,
utilities, and transportation. Our software is sold as a perpetual license or as a subscription and can be delivered for on-premise
installation or in a hosted environment as Software as a Service ("SaaS"). Our software products allow our customers to optimize
their work processes for targeted outcomes, improve their productivity, and gain insight into their projects and operations to
enhance their decision making and to gain maximum benefit from a broad range of other Trimble products and systems.

Our global operations include major development, manufacturing, or logistics operations in the United States, Sweden, Finland,
Germany, New Zealand, Canada, the United Kingdom, the Netherlands, China, and India. Products are sold in more than 100
countries, through dealers, representatives, joint ventures, and other channels throughout the world, as well as direct sales to end-
users. Sales are supported by our own offices located in over 40 countries around the world.

We began operations in 1978 and were originally incorporated in California as Trimble Navigation Limited in 1981. On October
1, 2016, Trimble Navigation Limited changed its name to Trimble Inc. and changed its state of incorporation from the State of
California to the State of Delaware. Our common stock has been publicly traded on NASDAQ since 1990 under the symbol
TRMB.

Business Strategy

Our growth strategy is centered on multiple elements:

• Focus on attractive markets with significant growth and profitability potential - We focus on large markets historically
underserved by technology that offer significant potential for long-term revenue growth, profitability, and market
leadership. Our core industries such as construction, agriculture, and transportation are each multi-trillion dollar global
industries that operate in demanding environments with technology adoption in the early phases relative to other industries.
With the emergence of mobile computing capabilities, the increasing technological know-how of end users, and compelling
return on investment, we believe many of our markets are attractive for substituting Trimble’s technology and solutions
in place of traditional operating methods.

• Domain knowledge and technological innovation that benefit a diverse customer base - We have over time redefined our
technological focus from hardware-driven point solutions to integrated work process solutions by developing domain
expertise and heavily reinvesting in R&D and acquisitions. We currently have over 1,200 unique patents. We intend to
continue to take advantage of our technology portfolio and deep domain knowledge to quickly and cost-effectively deliver
specific, targeted solutions to each of the vertical markets we serve. We look for opportunities where the opportunity for
technological change is high and that have a requirement for the integration of multiple technologies into complete vertical
solutions.
Increasing focus on software and services - Software and services targeted for the needs of vertical end markets are
increasingly important elements of our solutions and are core to our growth strategy. Trimble generally has an open
application programming interface philosophy and open vendor environment, which leads to increased adoption of our
software and analytics offerings. These software and services solutions integrate and optimize additional workflows for
our customers, thereby improving their work productivity, and in the case of subscription, maintenance, and support
services, also provide us with enhanced business visibility over time. Professional services constitute an additional
customer offering that helps our customers integrate and optimize the use of our offerings in their environment.

•

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

• Optimized go-to-market strategies to best access our markets - We utilize vertically focused go-to-market strategies that
leverage domain expertise to best serve the needs of individual markets both domestically and abroad. These go-to-
market capabilities include independent dealers, joint ventures, original equipment manufacturers ("OEM"), and
distribution alliances with key partners, such as CNH Global, Caterpillar, and Nikon, as well as direct sales to end-users,
which provides us with broad market reach and localization capabilities to effectively serve our markets.
Strategic acquisitions - Organic growth continues to be our primary focus, while acquisitions serve to enhance our market
position. We acquire businesses that bring domain expertise, technology, products, or distribution capabilities that augment
our portfolio and allow us to penetrate existing markets more effectively, or to establish a market beachhead. Our success
in targeting and effectively integrating acquisitions is an important aspect of our growth strategy.

•

Business Segments and Markets

Our segments are distinguished by the markets they serve. Each segment consists of businesses that are responsible for product
development, marketing, sales, strategy, and financial performance. We report our financial performance, including revenue and
operating income, based on four reportable segments: Buildings and Infrastructure, Geospatial, Resources and Utilities, and
Transportation. For further financial information about our segments, see Note 6 to the Consolidated Financial Statements.

Buildings and Infrastructure

The Buildings and Infrastructure segment primarily serves architects, engineers, contractors, owners, and operators. Within this
segment, our most substantial product portfolios are focused on building construction and civil engineering and construction.

Building Construction. The Trimble building construction portfolio of solutions for the commercial and industrial building industry
spans the entire life cycle of a building and is used by owners, architects, designers, general contractors, sub-contractors, engineers,
and facility owners or lessees. These solutions serve to improve productivity and to enhance data sharing and collaboration across
different teams and stakeholders to help keep projects within cost, time, and quality targets. The suite of technologies and solutions
we provide to the building industry includes program management solutions for owners, software for 3D conceptual design and
modeling, BIM software that is used in design, engineering, and construction, enterprise resource planning and project management
and project collaboration for general contractors, advanced integrated site layout and measurement systems, cost estimating,
scheduling, and project controls solutions for contractors. The suite also includes applications for sub-contractors and construction
trades such as steel, concrete and mechanical, electrical and plumbing, and an integrated workplace management services ("IWMS")
software suite for real estate management, project coordination, and capital program planning and management. In addition,

Trimble’s Connect collaboration platform streamlines customer workflows and enables interoperability between Trimble’s and
other providers' solutions. These solutions for the building industry serve to automate, streamline, and transform work processes
across the building construction industry. Our solutions provide customer benefits such as reduced costs, reduced waste and re-
work, increased worker safety and efficiencies, faster project completion times, improved information flow, better decision making,
and enhanced quality control and sustainability. During 2019, we announced advances in several of our software packages and
solutions.

Civil Engineering and Construction. Before dirt is ever moved in civil construction, feasibility, design, and scheduling are critical
steps to site construction. Trimble provides the civil engineering and construction industry with a continuum of field solutions,
software solutions, and services at every stage of the project - from planning and design, to construction, operation, and maintenance.
Our civil construction solutions are used in civil infrastructure such as roads, railways, airports, land management, marine
construction, and landfills. Our solutions are used across the entire project life cycle to improve productivity, reduce waste and
re-work, and enable more informed decision making through enhanced situational awareness, data flow, and project collaboration.
At the same time, our solutions can improve worker safety and reduce environmental impact. Our suite of integrated solutions
and technologies in this area includes field and office software for optimized route selection and design, systems to automatically
guide and control construction equipment such as excavators, bulldozers, wheel loaders, motor graders, and paving equipment,
systems to monitor, track, and manage assets, equipment, and workers, and software to facilitate the sharing and communication
of data in real time. Together, these solutions are designed to transform how work is done within the civil construction industry.

The civil construction market portfolio integrates data and information across the entire construction process and across mixed
fleets. This includes data from site positioning and machine control systems, construction asset management equipment and
services, and various software applications. Utilizing wireless and internet-based site communications infrastructure, our solutions
include the ability to track and control equipment, perform remote machine diagnostics, and reduce re-work. By leveraging the
Trimble technology, contractors gain greater insight into their operations, helping them to lower costs and improve productivity,
worker safety, and asset utilization.

A joint venture with Caterpillar, Caterpillar-Trimble Control Technologies ("CTCT"), was formed in 2002 to develop the next
generation of advanced electronic guidance and control products for earthmoving machines. The joint venture develops machine
control and guidance products that use site design information combined with accurate positioning technology to automatically
control dozer blades and other machine tools. Caterpillar generally offers joint venture products as a factory-installed option,
while Trimble focuses on the aftermarket with products for mixed fleets of earthmoving machines from Caterpillar and other
equipment manufacturers to allow improved management of construction sites and projects.

During 2019, we announced a number of developments, including the launch of an e-commerce platform for pre-owned Trimble
products, and new collaborations with multiple OEMs intended to improve the interoperability of technologies and data for civil
engineering and construction projects.

We sell and distribute our products in the Building and Infrastructure segment through both a direct sales force and global networks
of independent dealers with expertise and customer relationships in the respective markets, including the network of SITECH
Technology Dealers, which serves the civil construction industry. BuildingPoint is an initiative to form a global network of
specialized distribution partners to serve the needs of the building construction industry by supporting customers in the adoption
of the Trimble Buildings solutions. We sell many of our software solutions through our own direct salesforce.

Competitors in this segment are typically companies that provide optical, laser, or GNSS positioning products as well as companies
that produce software specific to the construction process. Our principal competitors are Topcon Corporation, Hexagon AB, and
Autodesk. As the Company extends its software and services offerings to cover the full set of construction life cycle management
solutions used by owners, designers, and construction companies, we increasingly compete with large established companies that
offer similar systems across all industries, such as Oracle. We compete principally on the basis of innovation, differentiated
products, domain expertise, service, quality, and geographic reach.

Geospatial

The Geospatial segment primarily serves customers working in surveying, engineering, and government. Within this segment our
most substantial product portfolios are focused on surveying and geospatial, and geographic information systems ("GIS").

Surveying and Geospatial. Through our surveying and geospatial product portfolio, professional surveyors and engineers provide
services to the construction, engineering, mining, oil and gas, energy and utilities, government, and land management sectors.
Our survey and geospatial solutions replace less productive conventional methods of surveying, mapping, 2D or 3D modeling,
measurement, reporting, and analysis. Our suite of solutions includes field-based data collection systems and field software, real
time communications systems, and back-office software for data processing, modeling, reporting, and analysis. Our field-based

technologies are used in handheld, land mobile, and airborne applications and incorporate technologies such as mobile application
software, high precision GNSS, robotic measurement systems, inertial positioning, 3D laser scanning, digital imaging, and optical
or laser measurement. We maintain a joint venture with Nikon, which focuses on the design and manufacture in Japan of surveying
instruments including mechanical total stations and related products. Our office-based products include software for planning,
data processing and editing, quality control, 3D modeling, intelligent data analysis and feature extraction, deformation monitoring,
project reporting, and data export. Our customers in this area gain benefits from the use of our products including significantly
improved productivity in both field and office activities, improved safety through non-contact measurement and detection of
potentially dangerous ground or structure movement, and improved data flow that enables better decision making.

Geographic Information Systems. Our GIS product line collects authoritative field data and integrates that data into GIS databases.
Our handheld data collection systems allow users to quickly log positions and descriptive information about their assets, ensure
the integrity and accuracy of GIS information, and ultimately enable better decision-making. Through a combination of wireless
technologies and software solutions, fieldwork results are seamlessly delivered to the back-office GIS, and mobile workers can
also access GIS information remotely. This capability provides significant advantages to users, including improved productivity,
accuracy, and access to information in the field.

During 2019, we announced the release of a new GNSS receiver, the launch of a new 3D laser scanning system, and the launch
of a new high-performance field computer for our Mapping and Geographic Information Systems (GIS) portfolio.

We sell and distribute our products in the Geospatial segment primarily through a global network of independent dealers and
business partners. Competitors in this segment are typically survey instrument companies utilizing GNSS technology such as
Topcon Corporation and Hexagon AB. We compete principally on the basis of robust performance, ease of use, price,
interoperability, and interconnectedness.

Resources and Utilities

The Resources and Utilities segment primarily serves customers working in agriculture, forestry, and utilities. Within this segment,
our most substantial product portfolio addresses the agriculture market.

Our precision agriculture products and services consist of guidance and positioning systems, automated and variable-rate
application and technology systems, and information management solutions that enable farmers and their partners to improve crop
performance, profitability, and environmental quality. Trimble precision agriculture solutions can assist farmers throughout every
step of their farming process, beginning with land preparation and continuing through the planting, nutrient, and pest management,
and harvesting phases of a crop cycle. We provide manual and automated navigation guidance for tractors and other farm equipment
used in spraying, planting, cultivating, and harvesting applications. The benefits to the farmer include faster machine operation,
higher yields, and lower consumption of fuel and chemicals than conventional equipment. In addition, we provide solutions to
automate application of pesticide and seeding. Our water solutions help farmers minimize their water costs and distribute water
more efficiently and include applications for leveling agricultural fields for irrigation and aligning drainage systems to better
manage water flow in fields.

Software solutions that use data to enhance farm productivity are an increasing focus in our agriculture business. In 2019, we
announced the launch of Farmer Core, a new entry-level software subscription that enables farmers to connect all aspects of their
farm operation. Trimble agricultural software is used by farmers to help integrate all of the information on the farm, and is also
used by advisors, suppliers, and purchasers to share information to help improve efficiencies. Trimble agricultural software enables
farmers to make more informed decisions leading to higher yields, better quality crops, increased profitability, and reduced
environmental impact.

For many of Trimble's end market applications and customer needs, the positional accuracy that can be derived from GNSS satellite
signals alone is insufficient. In these applications, higher levels of positional accuracy are required. For these situations, Trimble
provides an augmentation service that improves the positional accuracy that is available to the customer, thereby enabling higher
levels of precision and automation in work processes that are conducted in the field. This service is provided by Trimble Positioning
Services ("Positioning Services") and is available in a variety of formats and accuracy levels, depending on the relevant application's
specific needs. Positioning Services serves customers in a variety of end markets, including agriculture, construction, geospatial,
and other markets, with a majority of its customers being in agriculture.

During the third quarter of 2019, we completed the acquisition of 3LOG Systems, Inc., a supplier of timber management software
solutions. The acquisition complements Trimble's forestry business software portfolio and further expands the Trimble Connected
Forest™ solutions, which offer a complete end-to-end ecosystem for forest management, traceability, and timber processing.

During the fourth quarter of 2019, we completed the acquisition of privately-held Azteca Systems LLC (dba "Cityworks"), a
provider of enterprise asset management (EAM) software for utilities and local government. Cityworks' solutions address the
global challenges associated with maintaining and replacing aging utility, transportation, and public assets and infrastructure.

Additionally, during the fourth quarter of 2019, we announced the acquisitions of Cansel Survey Equipment's Can-Net and AllTerra
New Zealand's iBase networks. The acquisitions significantly increase the global footprint of Trimble-owned Virtual Reference
Station (VRS) networks by adding geographies in Canada and New Zealand. Subscription-based VRS correction services are
now accessible to more customers around the world who rely on high-accuracy corrections to increase productivity and reduce
operational costs.

We use multiple distribution approaches to access the agricultural market including independent dealers and direct selling to
enterprise accounts. A significant portion of our sales are through CNH Global and affiliated dealer networks. Trimble distributors
provide a premier level of technical expertise, customer service and support capabilities, and operate with a strategy that fosters
technology interoperability in mixed fleets used on a farm. Trimble distributors are committed to providing reliable, responsive,
and dedicated in-field service and support as well as creating a hassle-free experience for the grower and their advisors when
implementing advanced technology solutions. They also provide training to help farmers and advisors gain a better understanding
of how to use the technology in a way that best meets their needs. Our forestry and utilities portfolios use a mix of direct sales
and indirect distribution.

Competitors in the agricultural market are vertically integrated farm equipment and implement companies, such as John Deere
and AGCO, and agricultural instrumentation companies, such as Raven. We compete principally on the basis of robust performance,
ease of use, domain expertise, customer support, price, interoperability, interconnectedness, and the completeness of our solutions.

Transportation

Trimble’s transportation solutions are multi-modal and provide capabilities for the long-haul trucking, field service management,
rail, and construction logistics industries to create a fully integrated supply chain and connect all aspects of transportation and
logistics trucks, drivers, back office, and freight. Trimble provides enterprise and mobility solutions focused on business intelligence
and data analytics, safety and regulatory compliance, navigation and routing, freight brokerage, supply chain visibility and final
mile, and transportation management and fleet maintenance. Within this segment, our most substantial product portfolio addresses
the transportation market.

In the transportation market, we offer a suite of solutions marketed primarily under the Trimble brand. Together, this range of
products provides a comprehensive fleet and transportation management, analytics, routing, mapping, reporting, and predictive
modeling solution to enable the transportation industry to achieve greater overall operational efficiency, fleet performance, and
profitability while ensuring regulatory compliance. Our enterprise strategy focuses on sales to large enterprise accounts. In
addition to Trimble-hosted solutions, we also integrate our applications and services directly into the customer’s IT infrastructure.

The telematics solutions encompass route management, safety and compliance, end-to-end vehicle management, and supply chain
communications. The transportation software platform serves as a central hub from which the core operations of transportation
organizations are managed, data is stored and analyzed, and mission critical business processes are automated. Our software
platform automates business processes spanning the entire surface transportation life cycle, order-to-cash, delivering visibility,
control, and decision support for the intricate relationships and complex processes involved in the movement of freight. Trimble
products also provide truck routing, mileage, and mapping solutions, as well as a voice guided turn-by-turn navigation solution.

The Transportation segment generally sells directly to end-users and OEMs. Sales cycles tend to be long, often involving field
trials followed by an extensive decision-making process. Key competitors in this segment include Omnitracs and McLeod, among
others. We compete principally on the basis of interoperability, domain expertise, customer support and service, price, innovative
product offerings, quality, and provision of a complete solution.

Patents, Licenses and Intellectual Property

We seek to establish and maintain our proprietary rights in our technology and products through the use of patents, copyrights,
trademarks, and trade secret laws. We have a program to file applications for and obtain patents, copyrights, and trademarks in
the United States and in selected foreign countries where we believe filing for such protection is appropriate. We hold over 1,200
unique issued and enforceable patents, the majority of which cover GNSS based technologies and other applications such as optical
and laser technology. We generally prefer to own the intellectual property used in our products, either directly or through
subsidiaries. From time to time we license technology from third parties. We are not dependent on any one patent and license.
We also own numerous trademarks and service marks that contribute to the identity and recognition of Trimble and its global
products and services.

Competition

Our markets are highly competitive, and we expect that both direct and indirect competition will increase in the future. Within
our markets, we encounter direct competition from other GNSS, software, optical, and laser suppliers such as Hexagon and Topcon,
and competition may intensify from various larger U.S. and non-U.S. competitors. Our hardware products are increasingly subject
to competition from existing and new entrants from emerging markets such as China, which compete aggressively on price at the
lower-priced end of the market as well as on economic nationalism. Our integrated hardware and software products may also be
subject to increasing competition from mass market devices such as smartphones and tablets combined with relatively inexpensive
applications, which have not been heavily used for commercial applications in the past. Our software solutions are also increasingly
subject to competition from existing and new entrants into the marketplace, including from some companies that may have access
to significantly more resources than Trimble.

Many of our products and solutions are focused on specific industries. In each of these industries, we face competition from
companies providing point solutions, or more traditionally, less technology intensive products and services. These companies
often have greater financial resources and more established and recognized brands in those industries. Competing in vertical
markets with more established industry participants requires that we successfully establish a market position, and that we market
new and sometimes unfamiliar technology and automated solutions to customers that have not previously used such products. We
also increasingly offer enterprise level solutions designed to meet the specific needs of our target industries. In doing so, we face
competition from larger and more well-established providers of enterprise software and services with whom we have not previously
competed. See also "Risk Factors - We face substantial competition in our markets, which could decrease our revenue and growth
rates or impair our operating results and financial condition."

Sales and Marketing

We tailor our go-to-market strategies to the needs of our products and regional markets around the world. In addition to direct
sales, many of our products are sold worldwide primarily through indirect channels, including distributors, dealers, and authorized
representatives. Occasionally we grant exclusive rights to market certain products or within specific countries. These channels
are supported by our regional sales offices throughout the world. We also utilize distribution alliances, OEM relationships, and
joint ventures with other companies as a means to serve selected markets as well as direct sales to end-users.

Seasonality of Business

Construction equipment revenue, within our Buildings and Infrastructure segment, historically have been higher in early spring.
Our agricultural equipment revenue, within our Resources and Utilities segment, have historically been the highest in the first
quarter, followed by the second quarter, reflecting buying in anticipation of the spring planting season in the Northern hemisphere.
However, overall as a company, as a result of diversification of our business across segments and the increased impact of subscription
revenue, we may experience less seasonality in the future. Changes in global macroeconomic conditions could also impact the
level of seasonality we experience.

Manufacturing

We outsource the manufacturing of many of our hardware products to our key contract manufacturing partners that include Flex
Ltd., Benchmark Electronics Inc., and Jabil. Our contract manufacturing partners are responsible for significant material
procurement, assembly, and testing. We continue to manage product design through pilot production for the subcontracted products,
and we are directly involved in qualifying suppliers and key components used in all our products. Our current contract with Flex
Ltd. continues in effect until either party gives the other ninety days written notice. We also utilize original design manufacturers
for some of our products.

We manufacture our laser and optics-based products, as well as some of our GPS products, at our plants in Dayton, Ohio; Danderyd,
Sweden; and Shanghai, China. Some of these products or portions of these products are also subcontracted to third parties for
assembly.

Our design, manufacturing, and distribution sites in Dayton, Ohio; Sunnyvale, California; Danderyd, Sweden; Eindhoven,
Netherlands; Auckland, New Zealand, and Shanghai, China are registered to ISO9001:2015 covering the design, production,
distribution, and servicing of all our products.

Research and Development

We believe that our competitive position is maintained through the development and introduction of new products, including
software and services, that incorporate improved features and functionality, better performance, smaller size and weight, lower
cost, or some combination of these factors. We invest substantially in the development of new products. We also make significant
investment in the positioning, communication, and information technologies that underlie our products and will likely provide
competitive advantages.

We expect to continue investing in research and development at a rate consistent with our past, with the goal of maintaining or
improving our competitive position and entering new markets.

Employees

At the end of fiscal 2019, we employed 11,484 employees with approximately 56% of employees in locations outside the United
States.

Some employees in Sweden and Finland are represented by unions and in Germany and France are represented by works councils.
We also employ temporary and contract personnel that are not included in the above headcount numbers. We have not experienced
work stoppages or similar labor actions.

Available Information

The Company’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments
to these reports are available free of charge on the Company’s web site through investor.trimble.com, as soon as reasonably
practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission. Financial
news and reports and related information about our Company as well as GAAP to non-GAAP reconciliations are also found on
this web site. Information contained on our web site is not part of this annual report on Form 10-K.

In addition, you may request a copy of these filings (excluding exhibits) at no cost by writing or telephoning us at our principal
executive offices at the following address or telephone number:

Trimble Inc.
935 Stewart Drive, Sunnyvale, CA 94085
Attention: Investor Relations Telephone: 303-635-8551

Information about our Executive Officers

The names, ages and positions of the Company’s executive officers as of February 28, 2020 are as follows:

Name
Steve W. Berglund

Robert G. Painter

David G. Barnes

Michael D. Bank

Ronald J. Bisio

Bryn A. Fosburgh

James A. Kirkland

James Langley

Darryl R. Matthews

Julie A. Shepard

Age
68

Position
Executive Chairman

President and Chief Executive Officer

Chief Financial Officer

Senior Vice President

Senior Vice President, General Counsel and Secretary

Senior Vice President

Chief Accounting Officer

Steven W. Berglund—Steven Berglund was appointed executive chairman of Trimble’s board in January 2020, and previously
served as the president and chief executive officer of Trimble since March 1999. Prior to joining Trimble, Mr. Berglund was
president of Spectra Precision, a group within Spectra Physics AB. Mr. Berglund’s business experience includes a variety of senior
leadership positions with Spectra Physics, and manufacturing and planning roles at Varian Associates. He began his career as a
process engineer at Eastman Kodak. He attended the University of Oslo and the University of Minnesota where he received a
B.S. in chemical engineering. Mr. Berglund received his M.B.A. from the University of Rochester. Mr. Berglund is a member
of the board of directors of the Silicon Valley Leadership Group and the Association of Equipment Manufacturers (AEM), as well
as chairman of AEM's construction sector board. He is also a member of the board of directors and audit committee of Belden
Inc., a global provider of end-to-end signal transmission solutions.

Robert G. Painter—Robert Painter was appointed Trimble’s president and chief executive officer in January 2020. From 2016
through 2019, he served as the Company's chief financial officer, where he was responsible for Trimble’s worldwide finance
operations. In 2015, Mr. Painter was appointed vice president of Trimble buildings businesses, a group focused on BIM-centric
divisions that span the design-build-operate continuum of the building life cycle. From 2011 to 2014, he served as general manager
of the Company’s joint venture with Hilti, which was created to foster collaborative development of product innovations for the
building construction industry. From 2009 to 2010, he served as general manager of the Company’s construction services division.
Mr. Painter joined Trimble in 2006 and assumed leadership of Trimble’s business development, leading all acquisition and corporate
strategy activities. Prior to joining the Company, Mr. Painter served in a variety of management and finance positions at Cenveo,
Rapt Inc., Bain & Company, Whole Foods Market, and Kraft Foods. In 1993, he earned a Bachelor of Science degree in Finance
from West Virginia University and received an MBA in Business from Harvard University in 1998.

David G. Barnes—David G. Barnes joined Trimble as chief financial officer in January 2020 with more than 35 years of financial
and strategic management experience, including treasury, tax, investor relations, and risk management. Prior to Trimble, Mr.
Barnes served as chief financial officer at MWH Global Inc., a global provider of engineering and construction services, from
January 2009 to May 2016. At MWH, he served on the board of directors and had responsibility for information technology and
procurement in addition to his financial role. Following the sale of MWH to Stantec Inc., Mr. Barnes assumed operational
responsibility for Stantec’s businesses outside North America from September 2017 to January 2019. He also served as a leader
on the committee overseeing the integration of MHW into Stantec from May 2016 to July 2017. Prior to MWH, Mr. Barnes held
financial leadership positions at Western Union, Coors, and YUM Brands. He began his career as a strategy consultant at Bain
& Company. In 1983, he received a Bachelor of Science in Applied Mathematics from Yale University and his MBA in Finance
and Marketing from the University of Chicago in 1987. Mr. Barnes also serves as a board member and chair of the Audit Committee
of CSG Systems International.

Michael D. Bank—In February 2019, Michael Bank was appointed senior vice president of Trimble's civil engineering and
construction business, where he had previously served as vice president since January 2016, as well as supervising Trimble’s
precision tools, accessories, mining, aggregates, construction logistics, lifting solutions, and mobile computing solutions divisions.
Prior to 2016, he served in general manager and business area manager roles in the precision tools, accessories, and mobile
computing solutions divisions. He joined Trimble in 2006 through the acquisition of Apache Technologies, where he served as
worldwide sales and marketing manager. Mr. Bank has over 35 years of experience in the construction technology industry. He
has held positions in sales, marketing, engineering, product design, and technical support. He received his BS in Civil Engineering
from the University of Cincinnati in 1984.

Ronald J. Bisio—In February 2019, Ronald Bisio was appointed senior vice president responsible for Trimble’s surveying and
geospatial businesses, where he had previously served as vice president since April 2015. Prior to this role, he served as general
manager for Trimble’s rail division from January 2011 until April 2015. He joined Trimble in 1996 and has held several marketing,
sales, and general management positions since then at Trimble. He earned a Master of Business Administration degree from the
University of Denver, a Master of Regional Planning degree from the University of Massachusetts, and a Bachelor of Science degree
in Cartography from Salem State University in Salem, Massachusetts.

Bryn A. Fosburgh—Bryn Fosburgh currently serves as senior vice president responsible for Trimble’s construction businesses,
which includes Trimble’s civil engineering and construction, buildings, Viewpoint and e-Builder divisions, as well as Trimble’s
joint ventures with Caterpillar, Hilti, and Nikon. From 2016 to 2019, Mr. Fosburgh was the Company’s senior vice president
responsible for Trimble’s joint ventures, as well as U.S. Federal government strategy and accounts, OEM construction machine
division, and professional services groups. From 2014 to 2016, he served as senior vice president for Trimble's geospatial, civil
engineering and construction, and building divisions, and the Caterpillar and Hilti-related joint ventures. From 2010 to 2014, Mr.
Fosburgh was responsible for buildings and heavy civil construction divisions along with Caterpillar and Hilti joint ventures.
From 2009 to 2010, Mr. Fosburgh served as vice president for Trimble's construction division, transportation and logistics, field
service management, and a number of corporate functions and geographical regions. From 2007 to 2009, Mr. Fosburgh was vice
president for Trimble's construction and agriculture divisions, and from 2005 to 2007, Mr. Fosburgh served as vice president and
general manager of Trimble's engineering and construction division. Mr. Fosburgh joined Trimble in 1994 and has held numerous
roles, including vice president and general manager for Trimble's geomatics and engineering division, and division vice president
of survey and infrastructure. Prior to Trimble, Mr. Fosburgh was a civil engineer and also held various positions for the U.S. Army
Corps of Engineers and Defense Mapping Agency. Mr. Fosburgh received a B.S. in geology from the University of Wisconsin in
Green Bay in 1985 and an M.S. from the school of civil engineering at Purdue University in 1989.

James A. Kirkland—James Kirkland currently serves as senior vice president, general counsel, and secretary. He joined the
company as vice president and general counsel in July 2008. Prior to joining Trimble, he served as general counsel and executive
vice president, strategic development at Covad Communications. Mr. Kirkland also served as senior vice president of spectrum
development and general counsel at Clearwire Technologies, Inc. Mr. Kirkland began his career in 1984 as an associate at Mintz
Levin and in 1992 he was promoted to partner. Mr. Kirkland received his BA from Georgetown University in Washington, D.C.
in 1981 and his J.D. from Harvard Law School in 1984.

James Langley—James Langley currently serves as a senior vice president responsible for Trimble transportation businesses. He
was appointed to this role in September 2019 and before that served as Trimble’s general manager of Trimble transportation
enterprise since April 2019. Prior to that, Mr. Langley was with Dart Transit Company, a transportation and tractor fleet company
based in Eagan, Minnesota, where he served as president from December 2017 until March 2019, and chief operating officer from
January 2016 until March 2019. Before Dart, Mr Langley was with TMW Systems, one of Trimble’s transportation businesses,
as vice president and general manager of business intelligence and optimization from May 2011 until December 2015. Mr. Langley
has extensive experience in the transportation industry, having also held positions at US Xpress, Transcard, and JB Hunt, where
he worked in the areas of operations, IT, engineering and analytics. Mr. Langley holds a degree from the University of Arkansas
in transportation and logistics.

Darryl R. Matthews—Darryl Matthews currently serves as senior vice president responsible for Trimble’s natural resources
businesses, which includes agriculture, forestry, and global services divisions. From 2010 to 2015, Mr. Matthews served as
president and general manager of the NAFTA Region for Nufarm Americas, Inc., a subsidiary of Nufarm Limited, a publicly-
traded multinational agricultural chemical company. From 2008 to 2010, Mr. Matthews served as general manager of Nufarm
Agriculture Inc., the Canadian subsidiary of Nufarm Limited. Mr. Matthews began his career at Dow AgroSciences in Canada
where he held management roles in sales and marketing. From 2010 to 2015, he served on the Board of Directors for CropLife
America. He received an Honors B.Sc. in Agriculture majoring in Horticultural Science and Business from the University of
Guelph in Ontario, Canada in 1994.

Julie A. Shepard—Julie Shepard currently serves as chief accounting officer. She joined Trimble in December of 2006 as vice
president of finance and was appointed chief accounting officer in May 2017. Prior to joining Trimble, Ms. Shepard served as
vice president of finance and corporate controller at Quantum Corporation. Ms. Shepard brings with her over 30 years of experience
in a broad range of finance roles, with diverse experience ranging from early stage private equity backed technology companies
to large multinational corporations. Ms. Shepard began her career at Price Waterhouse and is a Certified Public Accountant. She
received a B.S in Accounting from California State University. She is a member of the AICPA, Financial Executive Institute, and
the California Society of CPAs.

Item 1A. Risk Factors

RISKS AND UNCERTAINTIES

You should carefully consider the following risk factors, in addition to the other information contained in this Form 10-K and in
any other documents to which we refer you in this Form 10-K, before purchasing our securities. The risks and uncertainties
described below are not the only ones we face.

The volatility of our stock price could adversely affect an investment in our common stock

The market price of our common stock has been, and may continue to be, highly volatile. During fiscal 2019, our stock price
ranged from $30.93 to $45.94. We believe that a variety of factors could cause the price of our common stock to fluctuate, perhaps
substantially, including:

•
•

•
•
•
•
•
•
•
•

general conditions in the worldwide economy,
quarterly fluctuations in our actual or anticipated operating results and order levels,
announcements and reports of developments related to our business, our major customers and partners, and the
industries in which we compete or the industries in which our customers compete,
security breaches,
acquisition announcements,
new products or product enhancements announced or introduced by us or our competitors,
disputes with respect to developments in patents or other intellectual property rights,
developments in our relationships with our partners, customers, and suppliers,
the imposition of tariffs or other trade barriers,
political, economic or social uncertainty, and
acts of terrorism.

In addition, the stock market in general and the markets for shares of “high-tech” companies in particular have frequently
experienced extreme price fluctuations, which have often been unrelated to the operating performance of affected companies. Any
such fluctuations in the future could adversely affect the market price of our common stock.

We operate globally and are subject to significant risks in many jurisdictions

Global or regional conditions may harm our financial results. We have operations in many countries and a significant portion of
our revenue is derived from countries outside of the United States. As a result, our operations and our financial results, including
our ability to design, develop, or sell products, may be adversely affected by a number of factors outside of our control, including:

•
•
•
•

•

•
•

•
•
•
•

global and local economic conditions,
the demand and cost of commodities, such as corn and oil,
the strength of the agricultural, engineering, and construction markets,
inadequate infrastructure and other disruptions, such as supply chain interruptions and large-scale outages or unreliable
provision of services from utilities, transportation, data hosting, or telecommunications providers,
government restrictions on our operations in any country, or restrictions on our ability to repatriate earnings from a
particular country,
differing employment practices and labor issues,
formal or informal imposition of new or revised export and/or import and doing-business regulations, including trade
sanctions, tariffs, and import or export licensing requirements, which could be changed without notice,
ineffective legal protection of our IP rights in certain countries,
uncertain economic and political conditions in countries where we do business,
local business and cultural factors that differ from our normal standards and practices, and
increased uncertainty regarding social, political, immigration, and trade policies in the U.S. and abroad, such as recent
U.S. government action and policies, and the continuing uncertainty regarding the United Kingdom's impending
withdrawal from the European Union ("Brexit").

There is inherent risk that political, diplomatic, or military events could result in trade disruptions, including tariffs, trade embargoes,
export restrictions, and other trade barriers. A significant trade disruption or the establishment or increase of any trade barrier in
any area where we do business, including the Asia Pacific region, could increase the cost of our products, which could adversely
impact the margin that we earn on sales; make our products more expensive for customers or create uncertainty around demand
for certain types of products, which could make our products less competitive and reduce customer demand; or otherwise have a
materially adverse impact on our future revenue and profits, our and our customers’ businesses, and our results of operations. In

response to U.S. tariffs, other countries may adopt tariffs and other trade barriers that could limit our ability to competitively offer
our products and services. Recently, the U.S. government imposed tariffs on certain products imported into the U.S., and the
Chinese government imposed tariffs on certain products imported into China. Tariffs may be increased in the future. Given the
current U.S. political climate and recent actions of the administration, there is significant uncertainty about the trade policies,
treaties, government regulations, and tariffs that could apply to trade between the U.S. and China, as well as other nations, in the
future. In addition, if there is significant deterioration in the global economy, the economies of the countries or regions where our
customers are located or do business, or the industries that we or our customers serve, the demand for our products and services
would likely decrease and our results of operations, financial position, and cash flows could be materially and adversely affected.
In addition, government or customer efforts, attitudes, laws or policies may lead to non-U.S. customers favoring domestic suppliers
that could compete with or replace our products, which would also have an adverse effect on our business. Changes in economic
conditions and political uncertainty surrounding international trade also make it difficult to make financial forecasts, which could
cause us to miss our financial guidance and adversely affect our stock price.

We face risks inherent in conducting business internationally, including compliance with international and U.S. laws and regulations
that apply to our international operations. These laws and regulations include data privacy requirements, labor relations laws,
tax laws, anti-competition regulations, import and trade restrictions, export control laws, and laws that prohibit corrupt payments
to governmental officials or certain payments or remunerations to customers, including the U.S. Foreign Corrupt Practices Act
("FCPA"), the U.K. Bribery Act, or other anti-corruption laws that have recently been the subject of a substantial increase in global
enforcement. Many of our products are subject to U.S. export law restrictions that limit the destinations and types of customers
to which our products may be sold or that require an export license in connection with sales outside the United States. Given the
high level of complexity of these laws, there is a risk that some provisions may be inadvertently or intentionally breached, for
example through fraudulent or negligent behavior of individual employees, our failure to comply with certain formal documentation
requirements or otherwise. Also, we may be held liable for actions taken by our local dealers and partners. Violations of these
laws and regulations could result in fines, criminal sanctions against us, our officers or our employees, and prohibitions or conditions
on the conduct of our business. Any such violations could include prohibitions or conditions on our ability to offer our products
in one or more countries and could materially damage our reputation, our brand, our international expansion efforts, our ability
to attract and retain employees, our business, and our operating results.

We operate in many parts of the world that have experienced significant governmental corruption to some degree and, in certain
circumstances, strict compliance with anti-bribery laws may conflict with local customs and practices. We may be subject to
competitive disadvantages to the extent that our competitors are able to secure business, licenses, or other preferential treatment
by making payments to government officials and others in positions of influence or through other methods that relevant law and
regulations prohibit us from using. Our success depends, in part, on our ability to anticipate these risks and manage these difficulties.

Existing privacy-related laws and regulations in the United States and other countries are evolving and are subject to potentially
differing interpretations, and various U.S. federal and state or other international legislative and regulatory bodies may expand or
enact laws regarding privacy and data security-related matters. For example, the European Union General Data Protection
Regulation became effective in May 2018 and is wide-ranging in scope. In order to be compliant with the new EU requirements,
we must continue to invest resources necessary to implement and manage policy changes across our business units and services
relating to how we collect and use personal data relating to customers, employees, and vendors. Failure to comply may lead to
sizable fines. In parallel, with the advent of the EU-U.S. Privacy Shield (the new framework agreement between the U.S. Department
of Commerce and the European Commission for transferring personal data from the European Union to the United States) and
other national requirements, we expect that the international transfer of personal data will present ongoing compliance challenges
and complicate our business transactions. Countries outside the EU are considering or have passed legislation that requires local
storage and processing of data, which could increase the cost and complexity of delivering our services.

We may be affected by fluctuations in currency exchange rates. We are potentially exposed to adverse as well as beneficial
movements in currency exchange rates. Although most of our sales occur in U.S. dollars, expenses may be paid in local currencies.
An increase in the value of the dollar could increase the real cost to our customers of our products in those markets outside the
U.S. where we sell in dollars, and a weakened dollar could increase the cost of expenses such as payroll, utilities, tax, and marketing
expenses, as well as overseas capital expenditures. We also conduct certain investing and financing activities in local currencies.
Our hedging programs reduce, but do not eliminate, the impact of currency exchange rate movements; therefore, changes in
exchange rates could harm our results of operations and financial condition.

Catastrophic events or geopolitical conditions could disrupt our operations. Acts of war, acts of terrorism or civil unrest, natural
disasters and other catastrophic events, especially any events that impact our larger markets or GNSS signals or systems, could
have a material adverse impact on our business, operating results, and financial condition. The threat of terrorism and war and
heightened security and military activity in response to this threat, or any future acts of terrorism or hostilities, may involve a
redeployment of the satellites used in GNSS or interruptions of the system. Civil unrest, local conflicts, or other political instability
16

may adversely impact regional economies, cause work stoppages, or result in limitations on business transactions with the affected
foreign jurisdictions. To the extent that such interruptions result in delays or the cancellation of orders, disruption of the
manufacturing or shipment of our products, or reduced demand for our products, these interruptions could have a material adverse
effect on our business, results of operations, and financial condition.

Public health crises and epidemics, such as the novel coronavirus outbreak that is significantly affecting China, could impact our
international operations and sales. Our results of operations could be adversely affected to the extent that the novel coronavirus
or any other epidemic harms the Chinese economy or other significant markets where we do business. Contagious disease epidemics
or global pandemics could significantly impact our international supply chain and result in component and product shortages and
general disruptions to the economy. Such outbreaks could also result in mass quarantines, business closures, and significantly
impact our suppliers, customers, and commercial partners in affected areas, which may materially and adversely affect our business,
financial condition, and results of operations.

Engaging in international business inherently involves a number of other difficulties and risks.

These risks include:

•

•
•
•

longer payment cycles and difficulties in enforcing agreements and collecting receivables through certain foreign legal
systems,
difficulties and costs of staffing and managing foreign operations,
differing local customer product preferences and requirements than our U.S. markets, and
difficulties protecting or procuring intellectual property rights.

These factors or any combination of these factors may adversely affect our revenue or our overall financial performance.

Investing in and integrating new acquisitions could be costly, place a significant strain on our management systems and
resources, or may fail to deliver the expected return on investment, which could negatively impact our operating results

We typically acquire a number of businesses each year and intend to continue to acquire other businesses. Acquisitions entail
numerous risks, including:

•

•
•
•
•
•

•

potential inability to successfully integrate acquired operations and products or to realize cost savings or other anticipated
benefits from integration,
loss of key employees or customers of acquired operations,
difficulty of assimilating geographically dispersed operations and personnel of the acquired companies,
potential disruption of our business or the acquired business,
unanticipated expenses related to acquisitions,
unanticipated difficulties in conforming business practices, policies, procedures, internal controls, and financial records
of acquisitions with our own business,
impairment of relationships with employees, customers, vendors, distributors or business partners of either an acquired
company or our own business,
inability to accurately forecast the performance of recently acquired businesses, resulting in unforeseen adverse effects
on our operating results,
potential liabilities, including liabilities resulting from known or unknown compliance or legal issues, associated with an
acquired business, and
negative accounting impact to our results of operations because of purchase accounting treatment and the business or
accounting practices of acquired companies.

Any such effects from acquisitions could be costly and place a significant strain on our management systems and resources.

As a result of acquisitions, we have significant assets that include goodwill and other purchased intangibles. The testing of goodwill
and intangibles for impairment under established accounting guidelines requires significant use of judgment and assumptions.
Changes in business conditions or in the prospects or results of operations of the acquired business could require negative
adjustments to the valuation of these assets resulting in write-offs that would adversely affect our results. If we divest a business
and the proceeds are less than the net book value at the time, we would be forced to write off the difference. In addition, changes
in the operating results or the valuation of companies in which we have investments may have a direct impact on our financial
statements or could result in our having to write down the value of such investment.

Even if successfully negotiated and closed, acquisitions may not yield expected synergies, may not advance our business strategy
as expected, may fall short of expected return-on-investment targets, or may not prove successful or effective for our business.
Companies that we acquire may operate with different cost and margin structures, which could further cause fluctuations in our
operating results and adversely affect our operating margins.

Our internal and customer-facing systems, and systems of third parties we rely upon, may be subject to cybersecurity
breaches, disruptions, or delays

A cybersecurity incident in our own systems or the systems of our third-party providers may compromise the confidentiality,
integrity, or availability of our own internal data, the availability of our products and websites designed to support our customers,
or our customer data. Computer hackers, foreign governments, or cyber terrorists may attempt to or succeed in penetrating our
network security and our website. Unauthorized access to our proprietary business information or customer data may be obtained
through break-ins, sabotage, breach of our secure network by an unauthorized party, computer viruses, computer denial-of-service
attacks, employee theft or misuse, breach of the security of the networks of our third party providers, or other misconduct.
Additionally, outside parties may attempt to fraudulently induce employees or users to disclose sensitive or confidential information
in order to gain access to data. We have experienced security breaches in the past, and despite our efforts to maintain the security
and integrity of our systems, it is impossible to eliminate this risk. For example, in late 2015 and early 2016, we were the subject
of an attack by hackers operating in China. This incident resulted in the theft of proprietary and confidential data related to our
GPS technology but has not had a meaningful impact on our business. Because the techniques used by computer hackers who
may attempt to penetrate and sabotage our network security or our website change frequently, they may take advantage of
weaknesses in third party technology or standards of which we are unaware or that we do not control, and may not be recognized
until long after they have been launched against a target. We may be unable to anticipate or counter these techniques. It is also
possible that unauthorized access to customer data or confidential information may be obtained through inadequate use of security
controls by customers, vendors, or business partners. Efforts to prevent hackers from disrupting our service or otherwise accessing
our systems are expensive to develop, implement, and maintain. Such efforts require ongoing monitoring and updating as
technologies change and efforts to overcome security measures become more sophisticated and may limit the functionality of, or
otherwise negatively impact our service offering and systems. A cybersecurity incident affecting our systems may also result in
theft of our intellectual property, proprietary data or trade secrets, which would compromise our competitive position, reputation,
and operating results. We also may be required to notify regulators about any actual or perceived personal data breach (including
the EU Lead Data Protection Authority) as well as the individuals who are affected by the incident within strict time periods.

The systems we rely upon also remain vulnerable to damage or interruption from a number of other factors, including access to
the Internet, the failure of our network or software systems, or significant variability in visitor traffic on our product websites,
earthquakes, floods, fires, power loss, telecommunication failures, computer viruses, human error, and similar events or disruptions.
Some of our systems are not fully redundant, and our disaster recovery planning is not sufficient for all eventualities. Our systems
are also subject to intentional acts of vandalism. Despite any precautions we may take, the occurrence of a natural disaster, a
decision by any of our third-party hosting providers to close a facility we use without adequate notice for financial or other reasons,
or other unanticipated problems at our hosting facilities could cause system interruptions and delays, and result in loss of critical
data and lengthy interruptions in our services.

We rely on our information systems and those of third parties for activities such as processing customer orders, delivery of products,
hosting and providing services and support to our customers, billing and tracking our customers, hosting and managing our customer
data, and otherwise running our business. Any disruptions or unexpected incompatibilities in our information systems and those
of the third parties upon whom we rely could have a significant impact on our business.

An increasing portion of our revenue comes from SaaS solutions and other hosted services in which we store, retrieve, communicate,
and manage data which is critical to our customers’ business systems. Disruption of our systems that support these services and
solutions could cause disruptions in our customers’ systems and in the businesses that rely on these systems. Any such disruptions
could harm our reputation, create liabilities to our customers, hurt demand for our services and solutions, and negatively impact
our revenue and profitability.

We are subject to evolving privacy laws in the United States and other jurisdiction that are subject to potentially differing
interpretations and which could adversely impact our business and require that we incur substantial costs and expenses

and services relating to how we collect and use personal data relating to customers, employees, and vendors. Failure to comply
may lead to sizable fines. Brexit could also lead to further legislative and regulatory changes with regard to personal data. The
United Kingdom Data Protection Act that substantially implements the GDPR became law in May 2018. It remains unclear,
however, how United Kingdom data protection laws or regulations will develop in the medium to longer term and how data
transfers to and from the United Kingdom will be regulated at the time that Brexit is effectuated and implemented. In parallel,
with the advent of the EU-U.S. Privacy Shield (the new framework agreement between the U.S. Department of Commerce and
the European Commission for transferring personal data from the European Union to the United States) and other national
requirements, we expect that the international transfer of personal data will present ongoing compliance challenges and complicate
our business transactions. Countries outside the EU are considering or have passed legislation that requires local storage and
processing of data, which could increase the cost and complexity of delivering our services. In addition, in June 2018, California
enacted the California Consumer Privacy Act (the “CCPA”), which took effect in January 2020. The CCPA will, among other
things, give California residents expanded rights to access and delete their personal information, opt out of certain personal
information sharing, and receive detailed information about how their personal information is used. The CCPA was amended in
September 2018, and further modifications may be made to this law before it takes effect. Additionally, in October 2019, the
California Department of Justice published a notice of proposed rulemaking action with respect to draft regulations to implement
the CCPA. We cannot yet predict the impact of the CCPA on our business or operations, but it may require us to modify our data
processing practices and policies and to incur substantial costs and expenses in an effort to comply.

We may not be able to enter into or maintain important alliances and distribution relationships

We believe that in certain business opportunities our success will depend on our ability to form and maintain alliances with industry
participants, such as Caterpillar, Nikon, Hilti, and CNH Global. Our failure to form and maintain such alliances, or the preemption
or disruption of such alliances by actions of competitors, could adversely affect our ability to sell our products to customers. Our
relationships with substantial industry participants such as Caterpillar and CNH are complex and multifaceted and are likely to
evolve over time based upon the changing business needs and objectives of the parties. Since these strategic relationships contribute
to significant ongoing business in certain of our important markets, changes in these relationships could adversely affect our sales
and revenue. In addition, we utilize dealer networks, including those affiliated with some of our strategic allies such as Caterpillar
and CNH, to market, sell, and service many of our products.

Changes in our product mix, including increasing provision of software and bundled solutions tailored to the needs of specific
vertical markets, impose new demands on our distribution channels and may require significant changes in the skills and expertise
required to successfully distribute our products and services, or the creation of new distribution channels. Recruiting and retaining
qualified channel partners and training them in the use and the selling of our technology and product offerings requires significant
time and resources. In order to develop and expand our distribution channels, we must continue to expand and improve our
processes and procedures that support our distribution channels, including our investment in systems and training, and those
processes and procedures may become increasingly complex and difficult to manage. The time and expense required for sales
and marketing organizations of our channel partners to become familiar with our product offerings, including our new product
developments, and newer types of offering such as software and services, may make it more difficult to introduce those products
to end-users and delay end-user adoption, which could result in lower revenue.

Disruption of dealer coverage within specific geographic or end-user markets could cause difficulties in marketing, selling, or
servicing our products and have an adverse effect on our business, operating results, or financial condition. Moreover, dealers
who carry products that compete with our products may focus their inventory purchases and sales efforts on goods provided by
competitors due to industry demand or profitability. Such sourcing decisions can adversely impact our sales, financial condition,
and results of operations.

Our products are highly technical and may contain undetected errors, product defects, security vulnerabilities, or software
errors

Our products, including our software products, are highly technical and complex and, when deployed, may contain errors, defects,
or security vulnerabilities. We must develop our products quickly to keep pace with the rapidly changing market, and we have a
history of frequently introducing new products. Products and services as sophisticated as ours could contain undetected errors or
defects, especially when first introduced or when new models or versions are released. Such occurrences could result in damage
to our reputation, lost revenue, diverted development resources, increased customer service and support costs, warranty claims,
and litigation.

We warrant that our products will be free of defect for various periods of time, depending on the product. In addition, certain of
our contracts include epidemic failure clauses. If invoked, these clauses may entitle the customer to return or obtain credits for
products and inventory, or to cancel outstanding purchase orders even if the products themselves are not defective.

Errors, viruses or bugs may be present in software or hardware that we acquire or license from third parties and incorporate into
our products or in third party software or hardware that our customers use in conjunction with our products. Our customers’
proprietary software and network firewall protections may corrupt data from our products and create difficulties in implementing
our solutions. Changes to third party software or hardware that our customers use in conjunction with our software could also
render our applications inoperable. Any errors, defects or security vulnerabilities in our products or any defects in, or compatibility
issues with, any third party hardware or software or customers’ network environments discovered after commercial release could
result in loss of revenue or delay in revenue recognition, loss of customers, theft of trade secrets, data or intellectual property and
increased service and warranty cost, any of which could adversely affect our business, financial condition, and results of operations.

Undiscovered vulnerabilities in our products alone or in combination with third party hardware or software could expose them to
hackers or other unscrupulous third parties who develop and deploy viruses, and other malicious software programs that could
attack our products. Actual or perceived security vulnerabilities in our products could harm our reputation and lead some customers
to return products, to reduce or delay future purchases, or use competitive products.

If we are unable to effectively manage our increasingly diverse and complex businesses and operations, our ability to
generate growth and revenue from new or existing customers may be adversely affected

Because our operations are geographically diverse and increasingly complex, our personnel resources and infrastructure could
become strained, and our reputation in the market and our ability to successfully manage and grow our business may be adversely
affected. The size, complexity, and diverse nature of our business and the expansion of our product lines and customer base have
placed increased demands on our management and operations, and further growth, if any, may place additional strains on our
resources in the future. Our ability to effectively compete and to manage our planned future growth will depend on, among other
things, the following:

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effectively managing executive leadership transitions, and maintaining continuity in our senior management and key
personnel,
increasing the productivity of our existing employees,
attracting, retaining, training, and motivating our employees, particularly our technical and management personnel,
deploying our solutions using third-party information systems, which may require changes to our applications,
documentation, and operational processes,
improving our operational, financial and management controls, and
improving our information reporting systems and procedures.

The Company has increasingly diversified the nature of its businesses both organically and by acquisition. As a result, an increasing
amount of our business involves business models which require managerial techniques and skill sets which are different from
those required to manage our historical core businesses.

Over the last few years we have focused more on SaaS subscription models. As a result, we expect to derive an increasing portion
of our revenue in the future from subscriptions. This subscription model provides our customers the right to access certain of our
software in a hosted environment or use downloaded software for a specified subscription period. Market acceptance of such
offerings is affected by a variety of factors, including but not limited to: security, reliability, performance, current license terms,
customer preference, social/community engagement, customer concerns with entrusting a third party to store and manage their
data, public concerns regarding privacy and the enactment of restrictive laws or regulations. If we are unable to successfully
support and host our SaaS offerings in light of the foregoing risks and uncertainties, our results of operations could be negatively
impacted.

Our annual and quarterly performance may fluctuate, which could negatively impact our operations, financial results,
and stock price

Our operating results have fluctuated and can be expected to continue to fluctuate in the future on a quarterly and annual basis as
a result of a number of factors, many of which are beyond our control. Results in any period could be affected by:

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changes in market demand,
competitive market conditions,
the timing of recognizing revenue,
fluctuations in foreign currency exchange rates,
the cost and availability of components,
the mix of our customer base and sales channels,
the mix of products sold,

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pricing of products,
changes in U.S. or foreign policies on taxes, trade, or spending, including the 2017 Tax Cuts and Jobs Act (the "Tax
Act"), and
other risks, including those described below.

Seasonal variations in demand for our products may also affect our quarterly results. Construction equipment revenue has
historically been the highest in early spring. Our agricultural equipment revenue has historically been the highest in the first
quarter, followed by the second quarter, reflecting buying in anticipation of the spring planting season in the Northern hemisphere.
If we do not accurately forecast seasonal demand we may be left with unsold inventory or have a shortage of inventory, which
could negatively impact our financial results.

Due in part to the buying patterns of our customers, a significant portion of our quarterly revenue occurs from orders received and
immediately shipped to customers in the last few weeks and days of each quarter, while our operating expense tends to remain
fairly predictable. These patterns could harm our operating results if for any reason expected sales are deferred, orders are not
received, or shipments are delayed a few days at the end of a quarter.

The price of our common stock could decline substantially in the event any of these risks result in our financial performance being
below the expectations of public market analysts and investors, which are based on historical and predictive models that are not
necessarily accurate representations of the future.

Changes in our software and subscription businesses may negatively affect our operations and financial results
An increasing portion of our revenue is generated through software maintenance and subscription revenue, which includes SaaS.
Our customers have no obligation to renew their agreements for our software maintenance or subscription services after the
expiration of their initial contract period, which typically ranges from one to five years. Our customer acquisition and renewal
rates may decline or fluctuate as a result of a number of factors, including overall economic conditions, the health of their businesses,
competitive offerings, and customer dissatisfaction with our services. If customers do not renew their contracts for our products,
our maintenance and subscription revenue will decline, and our financial results will suffer. Any reduction in the number of
licenses that we sell, even if our customer acquisition rates do not change, will have a negative impact on our future maintenance
revenue growth. If any of our assumptions about expenses, revenue or revenue recognition principles from these initiatives proves
incorrect, or our attempts to improve efficiency are not successful, our actual results may vary materially from those anticipated,
and our financial results will be negatively impacted.

We continually re-evaluate our software licensing programs and subscription renewal programs, including specific license models,
delivery methods, and terms and conditions. Changes to our licensing programs and subscription renewal programs, including
the timing of the release of enhancements, upgrades, maintenance releases, the term of the contract, discounts, promotions and
other factors, could impact the timing of the recognition of revenue for our products, related enhancements and services and could
adversely affect our operating results and financial condition. We may implement different licensing models which require the
Company to recognize licensing fees over a longer period. Over the last few years, we have increasingly offered additional products
through a SaaS model. SaaS revenue is currently recognized ratably over the subscription period. Any significant increase in the
percentage of our business generated from a subscription model could increase the amount of revenue to be recognized over time
as opposed to upfront, which would delay revenue recognition and have a negative impact on our operating results in a quarterly
period. Due to these complexities, we may not be able to accurately forecast our revenue, which could cause us to miss our
earnings estimates or revenue projections and negatively impact our stock price.

We face substantial competition in our markets, which could decrease our revenue and growth rates or impair our operating
results and financial condition

Our markets are highly competitive, and we expect that both direct and indirect competition will increase in the future. Our overall
competitive position depends on a number of factors including the price, quality and performance of our products, the effectiveness
of our distribution channel and direct sales force, the level of customer service, the development of new technology, and our ability
to participate in emerging markets. Within each of our markets, we encounter direct competition from other GNSS, software,
optical, and laser suppliers, and competition may intensify from various larger U.S. and non-U.S. competitors and new market
entrants, particularly from emerging markets such as China. Our products, which commonly use GNSS for basic location
information, may be subject to competition from alternative location technologies such as simultaneous location and mapping
technology. As we sell an increasing amount of software and subscription services, we face competition from a group of large
well-established companies with whom we have not previously competed. Our integrated hardware and software products may
be subject to increasing competition from mass market devices such as smartphones and tablets used in conjunction with relatively
inexpensive applications, which have not been heavily used for commercial applications in the past. These developments may
require us to rapidly adapt to technological and customer preference changes that we have not previously been exposed to, including
those related to cloud computing, mobile devices, and new computing platforms. Such competition has in the past resulted, and
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in the future may result, in price reductions, reduced margins or loss of market share, any of which could decrease our revenue
and growth rates or impair our operating results and financial condition. We believe that our ability to compete successfully in
the future against existing and additional competitors will depend largely on our ability to execute our strategy to provide products
with significantly differentiated features compared to currently available products. We may not be able to implement this strategy
successfully, and our products may not be competitive with other technologies or products that may be developed by our competitors,
many of whom have significantly greater financial, technical, manufacturing, marketing, sales, and other resources than we do.

We are dependent on new products and services, and if we are unable to successfully introduce them into the market or
to effectively compete with new, disruptive product alternatives, our customer base may decline or fail to grow as anticipated

Our future revenue stream depends to a large degree on our ability to bring new products and services to market on a timely basis.
We must continue to make significant investments in research and development in order to continue to develop new products and
services, enhance existing products and achieve market acceptance of such products and services. We may encounter problems
in the future in innovating and introducing new products and services. Our development stage products may not be successfully
completed or, if developed, may not achieve significant customer acceptance. Development and manufacturing schedules for
technology products are difficult to predict, and we might not achieve our goals as to the timing of introducing new technology
products or could encounter increased costs. The timely availability and cost-effective production of these products in volume
and their acceptance by customers are important to our future success. If we are unable to introduce new products and services,
if other companies develop competing technology products and services, or if we do not develop compelling new products and
services, our number of customers may not grow as anticipated, or may decline, which could harm our operating results. Many
of our offerings are increasingly focused on software and subscription services. The software industry is characterized by rapidly
changing customer preferences which require us to address multiple delivery platforms, new mobile devices, and cloud computing.
Life cycles of software products can be short, and this can exacerbate the risks associated with developing new products. The
introduction of third-party solutions embodying new, disruptive technologies and the emergence of new industry standards could
make our existing and future software solutions and other products obsolete or non-competitive. If we are not able to develop
software and other solutions that address the increasingly sophisticated needs of our customers, or if we are unable to adapt to
new platforms, technologies or new industry standards that impact our markets, our ability to retain or increase market share and
operating results could be materially adversely affected.

Changes in our effective tax rate may reduce our net income in future periods

As a global company, we are subject to income and other taxes in the United States and numerous foreign jurisdictions. Significant
judgment is required to determine and estimate worldwide tax liabilities. While we believe our tax positions are consistent with
the tax laws in the jurisdictions in which we conduct our business, it is possible that these positions may be contested or overturned
by jurisdictional tax authorities, which may have a significant impact on our global provision for income taxes. Our effective tax
rate is largely based on the geographic mix of earnings, statutory rates, inter-company transfer pricing, and enacted tax laws. A
number of factors may increase our future effective tax rates, including:

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the jurisdictions in which profits are determined to be earned and taxed,
the resolution of issues arising from tax audits with U.S. and foreign tax authorities,
changes in our intercompany transfer pricing methodology,
changes in the valuation of our deferred tax assets and liabilities,
increases in expense not deductible for tax purposes, including transaction costs and impairments of goodwill in connection
with acquisitions,
changes in the realizability of available tax credits,
changes in share-based compensation,
changes in tax laws or the interpretation of such tax laws, including the Tax Act and the Base Erosion and Profit Shifting
(“BEPS”) project conducted by the Organization for Economic Co-operation and Development (“OECD”), and
changes in generally accepted accounting principles.

Tax laws are dynamic and subject to change as new laws are passed and new interpretations of the law are issued or applied, and
governmental tax authorities are increasingly scrutinizing the tax positions of companies. On December 22, 2017, the U.S.
government enacted the Tax Act, which made substantial changes to U.S. tax law. The ongoing implementation and interpretation
of the Tax Act, any additional forthcoming legislative or administrative guidance and accounting standards related to the Tax Act
could adversely affect our future effective tax rates. The implementation by us of new practices and processes designed to comply
with, and benefit from, the Tax Act and its rules and regulations could require us to make substantial changes to our business
practices, allocate additional resources, and increase our costs, which could negatively affect our business, results of operations,
and financial condition. In light of recent changes in U.S. tax laws and to align with our international business operations, in the
fourth quarter of 2019, we completed a non-U.S. intercompany transfer of our intellectual property to a subsidiary in the Netherlands.

This transfer and other changes we make to practices and processes based upon changes in U.S. and other tax laws are subject to
challenge, and an adverse outcome in any such challenge could adversely affect our reported financial results.

Additionally, longstanding international tax norms that determine each country’s jurisdiction to tax cross-border international trade
are evolving as a result of the BEPS reporting requirements recommended by the G8, G20, and the OECD. The foreign countries
where we do business may change tax laws, regulations, and interpretations on a prospective or retroactive basis and these potential
changes could adversely affect our effective tax rates. As these and other tax laws and related regulations change, our financial
results could be materially impacted. Given the unpredictability of these possible changes and their potential interdependency, it
is very difficult to assess whether the overall effect of such potential tax changes would be cumulatively positive or negative for
our earnings and cash flow, but such changes could adversely impact our financial results.

On June 1, 2018, we filed a petition with the U.S. tax court relating to a Notice of Deficiency pertaining to our 2011 tax year. In
the third quarter of fiscal 2019, we received a decision from the U.S. Tax Court resulting in no changes to our federal income tax
liability for 2011. We are currently in various stages of multiple year examinations by state and foreign taxing authorities. If
taxing authorities of any jurisdiction were to successfully challenge a material tax position, we could become subject to higher
taxes and our earnings would be adversely affected.

Our debt could adversely affect our cash flow and prevent us from fulfilling our financial obligations

On November 24, 2014, we issued $400.0 million of 4.75% Senior Notes due December 1, 2024. On June 15, 2018, we issued
$300.0 million of 4.15% Senior Notes due June 15, 2023 and $600.0 million of 4.90% Senior Notes due June 15, 2028. When
our Senior Notes mature, we will have to expend significant resources to repay these Senior Notes or seek to refinance them. If
we decide to refinance the Senior Notes, we may be required to do so on different or less favorable terms or we may be unable to
refinance the Senior Notes at all, both of which may adversely affect our financial condition. Any downgrade by credit rating
agencies could adversely affect our cost of borrowing, limit our access to the capital markets, or result in more restrictive covenants
in future debt agreements.

In May 2018, we entered into a new credit agreement (the “2018 Credit Facility”), with JPMorgan Chase Bank, N.A. and certain
other institutional lenders that provides for $1.75 billion of unsecured credit facilities comprised of a $1.25 billion loan facility
maturing May 2023 (the “Revolving Credit Facility”) and a $500.0 million delayed draw term loan facility that matures on the
third anniversary of the funding date (the “Term Loan”). Subject to the terms of the 2018 Credit Facility, we may request an
additional loan facility up to $500.0 million. We also have two $75.0 million and one €100.0 million that are uncommitted (the
“Uncommitted Facilities”) at the end of 2019 and may be called by the lenders with very little notice. At the end of fiscal 2019,
our total debt was comprised primarily of Senior Notes of $1,300.0 million, a term loan balance of $225.0 million, a revolver
credit facility of $110.0 million under the 2018 Credit Facility, and three revolving credit facilities of $218.7 million under the
Uncommitted Facilities.

Our outstanding indebtedness could have other important consequences, such as:

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requiring us to dedicate a portion of our cash flow from operations and other capital resources to debt service, thereby
reducing our ability to fund working capital, capital expenditures, general corporate purposes, and other cash requirements,
particularly if the ratings assigned to our debt securities by rating organizations were revised downward,
increasing our vulnerability to adverse economic and industry conditions,
reducing our ability to make investments and acquisitions which support the growth of the company, or to repurchase
shares of our common stock,
placing us at a competitive disadvantage as compared to our competitors, to the extent that they are not as highly leveraged,
limiting our flexibility in planning for, or reacting to, changes and opportunities in, our industry, which may place us at
a competitive disadvantage, and
limiting our ability to incur additional debt on acceptable terms, if at all.

There are various financial covenants and other restrictions in our debt instruments. If we fail to comply with any of these
requirements, the related indebtedness (and other unrelated indebtedness) could become due and payable prior to its stated maturity,
and we may not be able to repay the indebtedness that becomes due. A default under our debt instruments may also significantly
affect our ability to obtain additional or alternative financing.

Our ability to make scheduled payments or to refinance our obligations with respect to indebtedness will depend on our operating
and financial performance, which in turn, is subject to prevailing economic conditions and to financial, business and other factors
beyond our control. A significant portion of our outstanding debt has interest rates which float based on prevailing interest rates
and we may incur additional variable-rate debt in the future. Such rates tend to fluctuate based on general economic conditions,

general interest rates, Federal Reserve rates, and the supply of and demand for credit in the relevant interbanking market. In recent
years, the Federal Reserve has incrementally raised the target range for the federal funds rate, with additional increases expected
to come over the next year. If interest rates increase, our interest expense will also increase as would the costs of refinancing
existing indebtedness or obtaining new debt.

Our ability to incur additional indebtedness over time may be limited due to applicable financial covenants and restrictions, and
due to the risk that significantly increasing our level of indebtedness could impact the ratings assigned to our debt securities by
rating organizations, which in turn would increase the interest rates and fees that we pay in connection with our indebtedness.

Some of our products rely on third party technologies including open source software, which could result in product
incompatibilities or harm availability of our products and services

We license software, technologies, and intellectual property underlying some of our software from third parties. The third party
licenses we rely upon may not continue to be available to us on commercially reasonable terms, or at all, and the software and
technologies may not be appropriately supported, maintained, or enhanced by the licensors, resulting in development delays. Some
software licenses are subject to annual renewals at the discretion of the licensors. In some cases, if we were to breach a provision
of these license agreements, the licensor could terminate the agreement immediately. The loss of licenses to, or inability to support,
maintain, and enhance, any such third party software or technology could result in increased costs, or delays in software releases
or updates, until such issues have been resolved. This could have a material adverse effect on our business, financial condition,
results of operations, cash flows, and future prospects.

We also incorporate open source software into our products. Although we monitor our use of open source software, the terms of
many open source licenses have not been interpreted by U.S. courts, and there is a risk that such licenses could be construed in a
manner that could impose unanticipated conditions or restrictions on our ability to market or sell our products or to develop new
products. In such event, we could be required to seek licenses from third-parties in order to continue offering our products, to
disclose and offer royalty-free licenses in connection with our own source code, to re-engineer our products, or to discontinue the
sale of our products in the event re-engineering cannot be accomplished on a timely basis, any of which could adversely affect
our business.

We are dependent on proprietary technology, which could result in litigation that could divert significant valuable resources

Our future success and competitive position is dependent upon our proprietary technology, and we rely on patent, trade secret,
trademark, and copyright laws to protect our intellectual property. The patents owned or licensed by us may be invalidated,
circumvented, infringed, or challenged. The rights granted under these patents may not provide competitive advantages to us.
Any of our pending or future patent applications may not be issued within the scope of the claims sought by us, if at all.

Despite our efforts to protect our intellectual property rights, unauthorized parties may attempt to copy or otherwise obtain our
software or develop software with the same functionality or to obtain and use information that we regard as proprietary. Others
may develop technologies that are similar or superior to our technology, duplicate our technology or design around the patents
owned by us. In addition, effective copyright, patent, and trade secret protection may be unavailable, limited, or not applied for
in certain countries. The steps taken by us to protect our technology might not prevent the misappropriation of such technology.

The value of our products relies substantially on our technical innovation in fields in which there are many current patent filings.
Third parties may claim that we or our customers (some of whom are indemnified by us) are infringing their intellectual property
rights. For example, individuals and groups may purchase intellectual property assets for the purpose of asserting claims of
infringement and attempting to extract settlements from us or our customers. The number of these claims has increased in recent
years. As new patents are issued or are brought to our attention by the holders of such patents, it may be necessary for us to secure
a license from such patent holders, redesign our products, or withdraw products from the market. In addition, the legal costs and
engineering time required to safeguard intellectual property or to defend against litigation could become a significant expense of
operations. Any such litigation could require us to incur substantial costs and divert significant valuable resources, including the
efforts of our technical and management personnel, which could harm our results of operations and financial condition.

We are dependent on limited source manufacturers and suppliers for certain of our products and critical components, and
a disruption in our supply chain could adversely affect our margins, revenue, and operating results

We are dependent upon a limited number of contract manufacturers for the manufacture, testing, and assembly of certain products
and specific suppliers for a number of our critical components. Our current reliance on a limited group of suppliers and contract
manufacturers involves risks, including a potential inability to obtain an adequate supply of required products or components to
meet customers’ delivery requirements, a risk that we may accumulate excess inventories if we inaccurately forecast demand for
our products, reduced control over pricing and delivery schedules, discontinuation of or increased prices for certain components,
and economic conditions that may adversely impact the viability of our suppliers and contract manufacturers. Any disruption in
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our supply chain could reduce our revenue and adversely impact our financial results. Such a disruption could occur as a result
of any number of events, including, but not limited to, increases in wages that drive up prices or labor stoppages, the imposition
of regulations, quotas or embargoes on components, a scarcity of, or significant increase in the price of, required electronic
components for our products, trade restrictions, tariffs or duties, fluctuations in currency exchange rates, transportation failures
affecting the supply chain and shipment of materials and finished goods, third party interference in the integrity of the products
sourced through the supply chain, the unavailability of raw materials, severe weather conditions, natural disasters, civil unrest,
military conflicts, geopolitical developments, war or terrorism, and disruptions in utility and other services. Any inability to obtain
adequate deliveries or any other circumstance that would require us to seek alternative sources of supply or to manufacture,
assemble and test such components internally could significantly delay our ability to ship our products, which could damage
relationships with current and prospective customers and could harm our reputation and brand as well as our operating results.

We are dependent on the availability and unimpaired use of allocated bands within the radio frequency spectrum, and our
products may be subject to harmful interference from new or modified spectrum uses

Our GNSS technology is dependent on the use of satellite signals and on terrestrial communication bands. International allocations
of radio frequency are made by the International Telecommunications Union ("ITU"), a specialized technical agency of the United
Nations. These allocations are further governed by radio regulations that have treaty status and which may be subject to modification
every two to three years by the World Radio Communication Conference. Each country also has regulatory authority over how
each band is used in the country. In the United States, the Federal Communications Commission ("FCC") and the National
Telecommunications and Information Administration share responsibility for radio frequency allocations and spectrum usage
regulations.

Any ITU or local reallocation of radio frequency bands, including frequency band segmentation and sharing of spectrum, or other
modifications of the permitted uses of relevant frequency bands, may materially and adversely affect the utility and reliability of
our products and have significant negative impacts on our customers, both of which could reduce demand for our products. For
example, the FCC has been considering proposals to repurpose spectrum adjacent to the GPS bands for terrestrial broadband
wireless operations throughout the United States. If the FCC were to permit implementation of such proposals, or similar proposals,
terrestrial broadband wireless operations could create harmful interference to GPS receivers within range of such operations and
impose costs to retrofit or replace affected receivers. Similarly, other countries have considered proposals for use of frequencies
used by our products as well as adjacent bands that could cause harmful interference to our products.

Many of our products use other radio frequency bands, such as the public land mobile radio bands, together with the GNSS signal,
to provide enhanced GNSS capabilities, such as real-time kinematics precision. The continuing availability of these non-GNSS
radio frequencies is essential to provide enhanced GNSS products to our precision survey, agriculture, and construction machine
controls markets. In addition, transmissions and emissions from other services and equipment operating in adjacent frequency
bands or in-band may impair the utility and reliability of our products. Any regulatory changes in spectrum allocation or in
allowable operating conditions could have a material adverse effect on our business, results of operations, and financial condition.

Many of our products rely on GNSS technology, GPS and other satellite systems, which may become degraded or inoperable
and result in lost revenue

GNSS technology, GPS satellites, and their ground support systems are complex electronic systems subject to electronic and
mechanical failures and possible intentional disruption. Many of the GPS satellites currently in orbit were originally designed to
have lives of 7.5 years and are subject to damage by the hostile space environment in which they operate. However, of the current
deployment of operational satellites in orbit, several have been in operation for 15 years or more. Repair of damaged or
malfunctioning satellites is currently not economically feasible. If a significant number of satellites were to become inoperable,
there could be a substantial delay before they are replaced with new satellites. A reduction in the number of operating satellites
below the 24-satellite standard established for GPS may impair the utility of the GPS system and the growth of current and
additional market opportunities. In addition, software updates to GPS satellites and ground control segments, and infrequent
known events such as GPS week number rollover, may adversely affect our products and customers. We depend on public access
to open technical specifications in advance of system updates to mitigate these problems, which may not be available or complete.

We are dependent on continued operation of GPS, the principal GNSS currently in operation. The GPS constellation is operated
by the U. S. Government, which is committed to maintenance and improvement of GPS. If supporting policies were to change,
or if user fees were imposed, it could have a material adverse effect on our business, results of operations, and financial condition.

Many of our products also use signals from systems that augment GPS, such as the Wide Area Augmentation System and National
Differential GPS System, and satellites transmitting signal corrections data on mobile satellite services frequencies utilized by our
RTX corrections services. Some of these augmentation systems are operated by the U.S. government and rely on continued funding
and maintenance of these systems. Any curtailment of the operating capability of these systems or limitations on access to, or use

of the signals, or discontinuance of service could result in degradation of our services or product performance, with an adverse
effect on our business.

Many of our products use satellite signals from the Russian GLONASS System. Other countries, including China and India, are
in the process of creating their own GNSS systems, and we either have developed or will develop products which use GNSS
signals from these systems. The European community is developing an independent radio navigation satellite system, known as
Galileo. National or European authorities may provide preferential access to signals to companies associated with their markets,
including our competitors, which could harm our competitive position. Use of non-U.S. GNSS signals may also be subject to
FCC waiver requirements and to restrictions based upon international trade or geopolitical considerations. If we are unable to
develop timely and competitive commercial products using these systems, or obtain timely and equal access to service signals,
this could result in lost revenue. These authorities may also adopt protectionist measures favoring national companies who make
use of their GNSS systems, to the detriment of Trimble products using the U.S. GPS system, which would harm our business.

We are subject to the impact of governmental and other certifications processes and regulations, which could adversely
affect our products and our business

We market many products that are subject to governmental regulations and certifications before they can be sold. The European
Union increasingly regulates the use of our products on agriculture, construction, and other types of machinery. CE certification
is required for GNSS receivers and data communications products, which must conform to the European harmonized GNSS
receiver standard and the radio equipment directive, to be sold in the European community. Delays in publication of the European
harmonized GNSS receiver standard could affect GNSS product access to European markets. In the future, U.S., European, or
other governmental authorities may propose GPS receiver testing and certification for compliance with published GPS signal
interface or other specifications. An inability to obtain any such certifications in a timely manner could have an adverse effect on
our operating results. Governmental authorities may also propose other forms of GPS receiver performance standards, which may
limit design alternatives, hamper product innovation, or impose additional costs. Some of our products that use integrated radio
communication technology require product type certification and some products require an end-user to obtain licensing from the
FCC for frequency-band usage. An inability or delay in obtaining such certifications or changes in applicable rules could adversely
affect our ability to bring our products to market which could harm our customer relationships, and therefore, our operating results.
Compliance with evolving product regulations in our major markets could require that we redesign our products, cease selling
products in certain markets, and increase our costs of product development. Failure to comply may result in fines and limitations
on sales of our products.

We have claims and lawsuits against us that may result in adverse outcomes

We are subject to a variety of claims and lawsuits. Adverse outcomes in some or all of these claims may result in significant
monetary damages or injunctive relief that could adversely affect our ability to conduct our business. Litigation and other claims
are subject to inherent uncertainties and the outcomes can be difficult to predict. Management may not adequately reserve for a
contingent liability, or may suffer unforeseen liabilities, which could then impact the results of a financial period. A material
adverse impact on our consolidated financial statements could occur for the period in which the effect of an unfavorable final
outcome becomes probable and reasonably estimable which, if not expected, could harm our results of operations and financial
condition.

Item 1B.

Unresolved Staff Comments

None.

Item 2.

Properties

Our corporate headquarters is located in Sunnyvale, California where we lease approximately 139 thousand square feet. We also
currently own approximately 316 thousand square feet in Dayton, Ohio and 250 thousand square feet in Westminster, Colorado.
These facilities are used by all reporting segments. For financial information regarding leases, see Note 8 to the Consolidated
Financial Statements.

We believe that our existing facilities are adequate to support current and near-term operations.

Item 3.

Legal Proceedings

From time to time, we are involved in litigation arising out of the ordinary course of our business. There are no material legal
proceedings, other than ordinary routine litigation incidental to the business, to which we or any of our subsidiaries is a party or
of which any of our or our subsidiaries' property is subject.

Item 4.

Mine Safety Disclosures

None.

PART II

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities

Company Stock Performance

Our common stock is traded on the NASDAQ under the symbol “TRMB.” The following graph compares the cumulative five-
year total return provided stockholders on Trimble Inc. common stock relative to the cumulative total returns of the NASDAQ
Composite Index and the S&P 500 Information Technology Index. An investment of $100 (with reinvestment of all dividends)
is assumed to have been made in our common stock and in each of the indexes on December 31, 2014, and its relative performance
is tracked through December 31, 2019.

Comparison of Cumulative Five Year Total Return

$300

$250

$200

$150

$100

$50

2014

2015

2016

2017

2018

2019

Trimble Inc.

NASDAQ Composite

S&P 500 Information Technology

Stock Repurchase Program

In November 2017, our Board of Directors approved a stock repurchase program ("2017 Stock Repurchase Program"), authorizing
us to repurchase up to $600.0 million of Trimble’s common stock. The stock repurchase authorization does not have an expiration
date and replaces the 2015 Stock Repurchase Program, which was completed. The timing and amount of repurchase transactions
is determined by our management based on its evaluation of market conditions, share price, legal requirements, and other factors.
The program may be suspended, modified, or discontinued at any time without public notice.

During fiscal 2019, we repurchased approximately 4.7 million shares of common stock in open market purchases under the 2017
Stock Repurchase Programs, at an average price of $38.51 per share, for a total of $179.8 million. At the end of fiscal 2019, the
2017 Stock Repurchase Program had remaining authorized funds of $172.4 million.

The Company did not repurchase any common stock during the fourth quarter of 2019.

As of February 26, 2020, there were approximately 552 holders of record of our common stock.

Dividend Policy

We have not declared or paid any cash dividends on our common stock during any period for which financial information is
provided in this Annual Report on Form 10-K. At this time, we intend to retain future earnings, if any, to fund the development
and growth of our business and do not anticipate paying any cash dividends on our common stock in the foreseeable future.

Item 6.

Selected Financial Data

The following selected consolidated financial data should be read in conjunction with “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and our Consolidated Financial Statements and related notes appearing elsewhere
in this annual report. Historical results are not necessarily indicative of future results. In particular, because the results of operations
and financial condition related to our acquisitions are included in our Consolidated Statements of Income and Consolidated Balance
Sheets data commencing on those respective acquisition dates; comparisons of our results of operations and financial condition
for periods prior to and subsequent to those acquisitions are not indicative of future results.

Fiscal Years

(In millions, except per share data)
Revenue

Gross margin

Gross margin percentage

Net income attributable to Trimble
Inc.

Net income

Earnings per share
—Basic

—Diluted

Shares used in calculating basic
earnings per share

Shares used in calculating diluted
earnings per share

At the End of Fiscal Year

(In millions)
Total assets

Long-term debt and other non-current
liabilities

2019

2018

2017

2016

2015

3,264.3

1,780.9

54.6%

514.3

514.5

2.05

2.03

250.8

252.9

3,108.4

1,681.0

54.1%

282.8

283.3

1.13

1.12

250.0

253.4

2,646.5

1,377.6

52.1%

118.4

118.5

0.47

0.46

252.1

256.7

2,362.1

1,234.5

52.3%

132.4

132.2

0.53

0.52

250.5

253.9

2,290.4

1,202.2

52.5%

121.1

120.7

0.47

255.8

258.5

2019

2018

2017

2016

2015

6,640.7

1,777.1

5,776.4

1,862.5

4,316.3

947.5

3,692.2

603.4

3,680.7

717.9

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the consolidated financial statements and the related notes. The
following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could
differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences
include, but are not limited to, those discussed below and those listed under “Risks Factors.” This section of this Form 10-K
generally discusses 2019 and 2018 items and year-to-year comparisons between 2019 and 2018. Discussions of 2017 items and
year-to-year comparisons between 2018 and 2017 that are not included in this Form 10-K can be found in "Management's
Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on
Form 10-K for the fiscal year ended December 28, 2018.

EXECUTIVE LEVEL OVERVIEW

Trimble began operations in 1978 and was originally incorporated in California as Trimble Navigation Limited in 1981. On
October 1, 2016, Trimble Navigation Limited changed its name to Trimble Inc. and changed its state of incorporation from the
State of California to the State of Delaware.

Trimble is a leading provider of technology solutions that enable professionals and field mobile workers to improve or transform
their work processes. Our comprehensive work process solutions are used across a range of industries including agriculture,
architecture, civil engineering, survey and land administration, construction, geospatial, government, natural resources,
transportation, and utilities. Representative Trimble customers include engineering and construction firms, contractors, owners,
surveying companies, farmers and agricultural companies, trucking companies, energy, utility companies, and state, federal, and
municipal governments.

Trimble focuses on integrating its broad technological and application capabilities to create vertically-focused, system-level
solutions that transform how work is done within the industries we serve. The integration of sensors, software, connectivity, and
information in our portfolio gives us the unique ability to provide an information model specific to the customer’s workflow. For
example, in construction, our strategy is centered on the concept of a “constructible model” that is at the center of our “Connected
Construction” solutions, which provides real-time, connected, and cohesive information environments for the design, build, and
operational phases of construction projects. In agriculture, we continue to develop “Connected Farm” solutions to optimize
operations across the agriculture workflow. In long haul trucking, our “Connected Fleet” solutions provide transportation companies
with tools to enhance fuel efficiency, safety, and transparency through connected vehicles and fleets across the enterprise.

Our growth strategy is centered on multiple elements:

• Focus on attractive markets with significant growth and profitability potential - We focus on large markets historically
underserved by technology that offer significant potential for long-term revenue growth, profitability, and market
leadership. Our core industries such as construction, agriculture, and transportation markets are each multi-trillion dollar
global industries that operate in increasingly demanding environments with technology adoption in the early phases
relative to other industries. With the emergence of mobile computing capabilities, the increasing technological know-
how of end users and the compelling return on investment to our customers, we believe many of our markets are attractive
for substituting Trimble’s technology and solutions in place of traditional operating methods.

• Domain knowledge and technological innovation that benefit a diverse customer base - We have redefined our
technological focus from hardware-driven point solutions to integrated work process solutions by developing domain
expertise and heavily reinvesting in R&D and acquisitions. We have been spending approximately 14% of revenue over
the past two years on R&D and currently have over 1,200 unique patents. We intend to continue to take advantage of
our technology portfolio and deep domain knowledge to quickly and cost-effectively deliver specific, targeted solutions
to each of the vertical markets we serve. We look for opportunities where the potential for technological change is high
and that have a requirement for the integration of multiple technologies into complete vertical solutions.
Increasing focus on software and subscription offerings - Software and subscription services are increasingly important
elements of our solutions and are core to our growth strategy. Trimble has an open application programming interface
philosophy and open vendor environment, which leads to increased adoption of our software and subscription offerings.
We believe that increased recurring revenue from these solutions will provide us with enhanced business visibility over
time. Professional services constitute an additional growth channel that helps our customers integrate and optimize the
use of our offerings in their environment.

•

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

• Optimized go-to-market strategies to best access our markets - We utilize vertically focused distribution channels that
leverage domain expertise to best serve the needs of individual markets both domestically and abroad. These channel
capabilities include independent dealers, joint ventures, original equipment manufacturers ("OEM"), and sales and
distribution alliances with key partners, such as CNH Global, Caterpillar, and Nikon, as well as direct sales to end-users.
This provides us with broad market reach and localization capabilities to effectively serve our markets.
Strategic acquisitions - Organic growth continues to be our primary focus, while acquisitions serve to enhance our market
position. We acquire businesses that bring domain expertise, technology, products, or distribution capabilities that augment
our portfolio and allow us to penetrate existing markets more effectively, or to establish a market beachhead. Our success
in targeting and effectively integrating acquisitions is an important aspect of our growth strategy.

•

Trimble’s focus on these growth drivers has led over time to growth in revenue and profitability as well as an increasingly diversified
business model. Software and subscription growth is driving increased recurring revenue, leading to improved visibility in some
of our businesses. As our solutions have expanded, our go-to-market model has also evolved, with a balanced mix between direct,
distribution, and OEM customers, and an increasing number of enterprise level customer relationships.

During fiscal 2019, the Company acquired four businesses with total purchase consideration of $247.0 million. The largest
acquisition was Cityworks, which we acquired in the fourth quarter of 2019. Cityworks is a provider of enterprise asset management
(EAM) software for utilities and local government.

During fiscal 2018, we acquired six businesses with total cash consideration of $1.8 billion. The largest acquisition was Viewpoint,
which we acquired in the third quarter of 2018 with total cash consideration of $1.2 billion. Viewpoint is a provider of construction
management software, which integrates a contractor’s financial and resource management to their project operations in the field.
The acquisition is highly complementary to our construction technology portfolio and positions us to further our strategy to lead
the industry's transformation. With Viewpoint, we offer customers a central workflow platform for delivering integrated end-to-
end construction management, while further enabling connectivity across the complete construction life cycle.

In January 2020, a novel strain of coronavirus was identified in China, resulting in shutdowns of manufacturing and commerce,
as well as global travel restrictions to contain the virus. The impact has extended to other regions. We have suppliers and employees
in China, and the region represents an end market for our products. Our customers and suppliers within China and other
impacted countries are also affected by the coronavirus related restrictions and closures. The coronavirus is expected to have a
negative effect on our financial results for fiscal 2020. The full extent and duration are uncertain and could be material.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles
("GAAP") requires us to make judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenue,
costs of sales, operating expenses, and related disclosures. We consider the accounting polices described below to be our critical
accounting policies. These critical accounting policies are impacted significantly by judgments, assumptions, and estimates used
in the preparation of the consolidated financial statements, and actual results could differ materially from the amounts reported
based on these policies. Our accounting policies are more fully described in Note 2 of our accompanying Notes to Consolidated
Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Annual Report on Form
10-K.

Revenue Recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the
consideration that we expect to receive in exchange for those products or services. Revenue is recognized net of allowance for
returns and any taxes collected from customers. We enter into contracts that can include various combinations of products and
services, which are generally capable of being distinct and accounted for as separate performance obligations; however, determining
whether products or services are considered distinct performance obligations that should be accounted for separately versus together
may sometimes require significant judgment.

Judgment is required to determine stand-alone selling price ("SSP") for each distinct performance obligation. We use a range of
amounts to estimate SSP when products and services are sold separately and determine whether there is a discount to be allocated
based on the relative SSP of the various products and services. In instances where SSP is not directly observable, we determine
SSP using information that may include market conditions and other observable inputs.

Income Taxes

We are a U.S. based multinational company operating in multiple U.S. and foreign jurisdictions. Judgment is required in evaluating
our uncertain tax positions and determining our provision for income taxes. We consider many factors when evaluating and
estimating our tax positions and tax benefits, which may require periodic adjustments and may not accurately forecast actual tax
audit outcomes. Determining whether an uncertain tax position is effectively settled requires judgment. Changes in recognition
31

or measurement of our uncertain tax positions would result in the recognition of a tax benefit or an additional charge to the tax
provision.

We are subject to the periodic examination of our domestic and foreign tax returns by the IRS, state, local, and foreign tax authorities
who may challenge our tax positions. We regularly assess the likelihood of adverse outcomes from these examinations in
determining the adequacy of our provision for income taxes.

Business Combinations and Valuation of Goodwill and Purchased Intangible Assets

We allocate the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the
acquiree based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair
value of these assets acquired, liabilities assumed, and non-controlling interests in the acquiree is recorded as goodwill.

When determining the fair values of assets acquired, liabilities assumed, and non-controlling interests in the acquiree, management
makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible
assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins,
customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Identifiable
intangible assets are comprised of distribution channels and distribution rights, patents, licenses, technology, acquired backlog,
trademarks, and in-process research and development.

We evaluate goodwill at the reporting unit level in the fourth quarter of each fiscal year or more frequently if indicators of potential
impairment exist. We utilize either a qualitative assessment or a quantitative test to assess the likelihood of an impairment. In
performing the qualitative assessment, we consider macroeconomic conditions, industry and market considerations, overall
financial performance, and other relevant events and factors that may impact the reporting units. When we perform a quantitative
test, the estimation of the fair value of a reporting unit involves the use of certain estimates and assumptions including expected
future operating performance using risk-adjusted discount rates.

We amortize identifiable intangible assets over their estimated useful lives on a straight-line basis. Changes in circumstances such
as technological advances, changes to its business model, or changes in the capital strategy could result in a revised useful life. If
the useful life of an asset is revised, the net book value of the estimated residual value is amortized over its revised remaining
useful life. Intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying
amount of those assets may not be recoverable based on their future cash flows. The estimated future cash flows are primarily
based upon assumptions about expected future operating performance.

RESULTS OF OPERATIONS

Overview

The following table is a summary of revenue, gross margin, and operating income for the periods indicated and should be read in
conjunction with the narrative descriptions below.

Fiscal Years

(In millions)
Revenue:
Product
Service
Subscription
Total revenue
Gross margin
Gross margin %
Operating income
Operating income as a % of revenue
Diluted earnings per share

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

2019

2018

2017

1,934.8
686.2
643.3
3,264.3
1,780.9

54.6%
375.9
11.5%
2.03

3,271.3
667.8
20.4%
1.99

1,999.9
588.7
519.8
3,108.4
1,681.0

54.1%
320.7
10.3%
1.12

3,132.0
643.9
20.6%
1.94

1,763.8
475.4
407.3
2,646.5
1,377.6

52.1%
235.7

8.9%
0.46

2,649.3
471.5
17.8%
1.45

*See SUPPLEMENTAL DISCLOSURE OF NON-GAAP FINANCIAL MEASURES for a reconciliation of our GAAP results to
our non-GAAP measures.

Basis of Presentation

We have a 52-53 week fiscal year, ending on the Friday nearest to December 31, which for fiscal 2019 was January 3, 2020.
Fiscal 2019 was a 53-week year, and 2018 and 2017 were 52-week years.

Revenue

In fiscal 2019, total revenue increased by $155.9 million, or 5%, to $3.26 billion from $3.11 billion in fiscal 2018. Overall revenue
increased due to organic growth in Buildings and Infrastructure and to a lesser extent, Transportation and Resources and Utilities,
partially offset by a decrease in Geospatial. Acquisitions, including Viewpoint, contributed to growth, particularly in service and
subscription revenue. We consider acquisition growth to include acquisition revenue that was not applicable in the prior
corresponding periods.

By revenue category, overall product revenue decreased $65.1 million, or 3%, service revenue increased $97.5 million, or 17%,
and subscription revenue increased $123.5 million, or 24%. Product revenue decreased primarily due to ongoing weakness in our
Geospatial OEM hardware sales and, to a lesser extent, Resources and Utilities agriculture OEM sales. Service and subscription
revenue increased across all segments, with the biggest impact due to an increase in Buildings and Infrastructure due to the
Viewpoint acquisition as well as organic growth, and to a lesser extent, Transportation, Resources and Utilities, and Geospatial.

By segment, Buildings and Infrastructure revenue increased $170.5 million, or 16%, Transportation increased $39.2 million, or
5%, Resources and Utilities revenue increased $3.3 million or 1%, and Geospatial revenue decreased $73.7 million, or 10%, as
compared to fiscal 2018. Buildings and Infrastructure revenue increased due to the Viewpoint acquisition, which was acquired
in the third quarter of fiscal 2018, and organic growth. Transportation revenue increased due to increased organic growth and
acquisition revenue. Resources and Utilities was up slightly due to organic and acquisition growth. Geospatial revenue decreased
mainly due to market softness.

During fiscal 2019, sales to customers in North America represented 55%, Europe represented 28%, Asia Pacific represented 11%,
and the rest of world represented 6% of our total revenue. We anticipate that sales to international customers will continue to
account for a significant portion of our revenue.

No single customer accounted for 10% or more of our total revenue in fiscal 2019 or 2018. No single customer accounted for
10% or more of our accounts receivable as of fiscal years ended 2019 and 2018.

Gross Margin

Our gross margin varies due to a number of factors including product mix, pricing, distribution channel, production volumes, new
product start-up costs, and foreign currency translations.

In fiscal 2019, our gross margin increased by $99.9 million as compared to fiscal 2018, primarily due to increased organic service
and subscription revenue growth in Buildings and Infrastructure, as well as the Viewpoint acquisition, partially offset by a decrease
in Geospatial due to revenue declines. Gross margin as a percentage of total revenue was relatively flat at 54.6% in fiscal 2019
and 54.1% in fiscal 2018 due to Buildings and Infrastructure improved product mix, largely offset by Geospatial revenue decline
and Transportation product mix and pricing pressures.

Operating Income

Operating income increased by $55.2 million for fiscal 2019 as compared to fiscal 2018. Operating income as a percentage of
total revenue for fiscal 2019 was 11.5% as compared to 10.3% for fiscal 2018. The increase in operating income was attributable
to lower intangible asset amortization resulting from expiration of prior acquisitions' amortization and strong operating results in
Buildings and Infrastructure. These increases were partially offset by Geospatial revenue decline and Transportation gross margin
compression and increased research and development costs.

Research and Development, Sales and Marketing, and General and Administrative Expenses

Research and development (R&D), sales and marketing (S&M), and general and administrative (G&A) expense are
summarized in the following table:

Fiscal Years

(In millions)
Research and development
Percentage of revenue
Sales and marketing
Percentage of revenue
General and administrative
Percentage of revenue

Total

2019

2018

2017

469.7
14.4%
504.2
15.4%
330.6
10.1%

446.1
14.4%
479.8
15.4%
349.8
11.3%

370.2
14.0%
400.1
15.1%
301.7
11.4%

1,304.5

1,275.7

1,072.0

Overall, R&D, sales and marketing, and G&A expenses increased by approximately $28.8 million in fiscal 2019 compared to
fiscal 2018.

Research and development expense increased by $23.6 million, or 5%, in fiscal 2019, as compared to fiscal 2018. Overall, research
and development spending was 14% of revenue in fiscal 2019 and 2018, respectively. As compared to the prior year, the increase
in fiscal 2019 was primarily due to the impact of the Viewpoint acquisition and, to a lesser extent, increased compensation expenses
in Transportation, partially offset by favorable foreign currency impacts.

We believe that the development and introduction of new products are critical to our future success, and we expect to continue
active development of new products.

Sales and marketing expense increased by $24.4 million, or 5%, in fiscal 2019, as compared to fiscal 2018. Overall, spending for
sales and marketing was 15% of revenue in fiscal 2019 and 2018, respectively. As compared to the prior year, the increase in
fiscal 2019 was primarily due to the impact of the Viewpoint acquisition and, to a lesser extent, an increase in compensation
expense, partially offset by favorable foreign currency impacts.

General and administrative expense decreased by $19.2 million, or 5%, in fiscal 2019, as compared to fiscal 2018. Overall, general
and administrative spending was 10% and 11% of revenue in fiscal 2019 and 2018, respectively. As compared to the prior year,
the decrease in fiscal 2019 was primarily due to lower compensation expense related to incentive compensation plans and, to a
lesser extent, lower consulting costs and favorable foreign currency impacts, partially offset by the impact of the Viewpoint
acquisition.

Amortization of Purchased Intangible Assets

Fiscal Years

(In millions)
Cost of sales
Operating expenses

Total

2019

2018

2017

94.1
73.7
167.8

103.2
76.4
179.6

85.8
63.0
148.8

Total amortization expense of purchased intangibles decreased $11.8 million as compared to fiscal 2018. The decrease was
primarily due to the expiration of prior acquisitions' amortization.

Non-operating Income (Expense), Net

The following table shows non-operating income (expense), net for the periods indicated and should be read in conjunction with
the narrative descriptions below:

Fiscal Years

(In millions)

Interest expense, net
Income from equity method investments, net
Other income, net

Total non-operating income (expense), net

2019

2018

2017

(82.4) $
35.8
15.5
(31.1) $

(73.2) $
28.7
1.8
(42.7) $

(25.2)
29.5
8.2
12.5

Total non-operating expense, net decreased by $11.6 million during fiscal 2019 compared with fiscal 2018. The decrease was due
to increased joint venture profitability and a gain from the sale of an equity investment included in Other income, net, partially
offset by higher interest costs due to Viewpoint acquisition debt being outstanding for a full year in fiscal 2019.

Income Tax Provision

The 2017 Tax Cuts and Jobs Act (the "Tax Act") reduced the U.S. federal tax rate from 35% to 21%, imposed a one-time transition
tax on accumulated foreign earnings and created new taxes on certain foreign-sourced earnings referred to as Global Intangible
Low-Taxed Income ("GILTI"). As a result, we recorded a provisional net income tax expense of $80.2 million in fiscal 2017. In
fiscal 2018, we completed the accounting for the tax effects of the Tax Act and made immaterial adjustments to the provisional
amounts recorded previously. Additionally, in fiscal 2018, we finalized our accounting policy election to recognize deferred taxes
in relation to GILTI.

To align with our international business operations, in the fourth quarter of 2019, we completed a non-U.S. intercompany transfer
of our intellectual property to a subsidiary in the Netherlands. The transaction resulted in deferred tax assets in the Netherlands
and GILTI deferred tax liabilities in the U.S., recorded at the applicable statutory tax rates, resulting in a one-time income tax
benefit of approximately $206.3 million.

Our effective income tax rates for fiscal 2019 and 2018 were -49% and -2%, respectively. The fiscal 2019 rate was lower than
the U.S. federal statutory rate of 21%, primarily due to a one-time tax benefit from a non-U.S. intercompany transfer of intellectual
property, and benefits from reserve release due to expiration of the U.S. federal statute of limitations for certain tax years. The
fiscal 2018 rate was lower than the U.S. federal statutory rate of 21%, primarily due to benefits from reserve release due to expiration
of the U.S. federal statute of limitations for certain tax years, a one-time benefit from deferred taxes in relation to GILTI, and
benefits from stock based compensation.

Results by Segment

We report our financial performance, including revenue and operating income, based on four reportable segments: Buildings and
Infrastructure, Geospatial, Resources and Utilities, and Transportation.

Our Chief Executive Officer (chief operating decision maker) views and evaluates operations based on the results of our reportable
operating segments under our management reporting system. These results are not necessarily in conformance with U.S. GAAP.
For additional discussion of our segments, see Note 6 of the Notes to the Consolidated Financial Statements.

The following table is a breakdown of revenue and operating income by segment for the periods indicated and should be read in
conjunction with the narrative descriptions below:

Fiscal Years

(In millions)
Buildings and Infrastructure

Segment revenue
Segment revenue as a percent of total revenue
Segment operating income
Segment operating income as a percent of segment revenue

Geospatial

Segment revenue
Segment revenue as a percent of total revenue
Segment operating income
Segment operating income as a percent of segment revenue

Resources and Utilities
Segment revenue
Segment revenue as a percent of total revenue
Segment operating income
Segment operating income as a percent of segment revenue

Transportation

Segment revenue
Segment revenue as a percent of total revenue
Segment operating income
Segment operating income as a percent of segment revenue

2019

2018

2017

1,258.2

38%

319.9
25.4%

649.4

20%

132.2
20.4%

571.4

18%

169.1
29.6%

792.3

24%

125.9
15.9%

1,087.7

35%

256.7
23.6%

723.1

23%

166.4
23.0%

568.1

18%

168.2
29.6%

753.1

24%

143.3
19.0%

830.5

31%

176.2
21.2%

658.5

25%

129.4
19.7%

482.0

18%

137.9
28.6%

678.3

26%

114.8
16.9%

A reconciliation of our consolidated segment operating income to consolidated income before income taxes follows:

Fiscal Years

2019

2018

2017

(In millions)
Consolidated segment operating income
Unallocated corporate expense
Acquired deferred revenue adjustment
Restructuring charges
Amortization of purchased intangible assets
Stock-based compensation
Amortization of acquisition-related inventory step-up
Acquisition and divestiture items
Amortization of acquired capitalized commissions
Consolidated operating income
Non-operating income (expense), net
Consolidated income before taxes

Buildings and Infrastructure

747.1
(79.3)
(7.0)
(27.9)
(167.8)
(75.0)
—
(20.5)
6.3
375.9
(31.1)
344.8

734.6
(90.7)
(23.6)
(8.7)
(179.6)
(76.9)
(0.2)
(38.9)
4.7
320.7
(42.7)
278.0

558.3
(86.8)
(2.8)
(10.5)
(148.8)
(64.8)
(2.8)
(7.4)
1.3
235.7
12.5
248.2

Buildings and Infrastructure revenue increased by $170.5 million, or 16%, and segment operating income increased by $63.2
million, or 25%, for fiscal 2019 as compared to fiscal 2018. Revenue increased due to the impact of the Viewpoint acquisition,
as well as strong organic growth. Building construction, including Viewpoint, and civil engineering and construction experienced
strong growth in service, primarily software maintenance, and subscription revenue. Segment operating income and operating
income percentage increased due to organic revenue growth, higher margin service and subscription product mix and improved
operating expense control, and, to a lesser extent, the impact of the Viewpoint acquisition.

Geospatial

Geospatial revenue decreased by $73.7 million, or 10%, and segment operating income decreased by $34.2 million, or 21%, for
fiscal year 2019 as compared to fiscal 2018. Revenue decreased mainly due to continuing weakness in OEM hardware sales,
primarily China, and softness in geospatial survey sales. The hardware revenue decline was partially offset by stronger software
sales, particularly in geospatial survey. Segment operating income and operating income percentage decreased primarily due to
the negative impact from the revenue shortfall.

Resources and Utilities

Resources and Utilities revenue increased by $3.3 million, or 1%, and segment operating income increased by $0.9 million, or
1%, for fiscal year 2019 as compared to fiscal 2018. The revenue increased mainly due to growth in positioning services, utilities,
and to a lesser extent acquisition revenue, partially offset by weakness in agriculture OEM and reseller hardware sales, due to
continued market uncertainties. Segment operating income increased slightly due to revenue growth and improved gross margin
due to increased software, service, and subscription product mix. Operating income percentage was flat.

Transportation

Transportation revenue increased by $39.2 million, or 5%, while segment operating income decreased by $17.4 million, or 12%,
for fiscal 2019 as compared to fiscal 2018. Revenue increased primarily due to subscription growth as customers convert from
software licenses and hardware growth from transportation customers. Segment operating income and operating income percentage
decreased primarily due to gross margin compression resulting from hardware product mix, as well as pricing pressures, and
increased research and development investments related to meeting demands of the electronic logging device regulatory mandate.
We expect revenue and operating income impacts from these factors to continue into fiscal 2020, as we meet the demands of the
electronic logging device regulatory mandate.

OFF-BALANCE SHEET ARRANGEMENTS

Other than inventory purchases and other commitments incurred in the normal course of business (see Contractual Obligations
table below), we do not have any off-balance sheet financing arrangements or liabilities.

In the normal course of business to facilitate sales of our products, we indemnify other parties, including customers, lessors and
parties to other transactions with us, with respect to certain matters. We may agree to hold the other party harmless against losses
arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against
certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the
claim. In connection with divesting some of our businesses or assets, we may also indemnify purchasers for certain matters in
the normal course of business, such as breaches of representations, covenants or excluded liabilities. In addition, we entered into
indemnification agreements with our officers and directors, and our bylaws contain similar indemnification obligations to our
agents.

It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history
of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically,
payments made by us under these agreements were not material and no liabilities have been recorded for these obligations on the
Consolidated Balance Sheets at the end of fiscal 2019 and 2018.

LIQUIDITY AND CAPITAL RESOURCES

At the End of Fiscal Year

2019

2018

2017

(In millions)
Cash and cash equivalents and short-term investments
As a percentage of total assets
Principal balance of outstanding debt

Fiscal Years

(In millions)
Cash provided by operating activities
Cash used in investing activities
Cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

Cash and Cash Equivalents

189.2

3.0%

1,854.0

2019

585.0
(275.3)
(292.6)
(0.4)
16.7

172.5

3.0%

1,981.9

2018

486.7
(1,649.6)
989.4
(12.5)
(186.0)

537.4
12.5%
918.2

2017

429.7
(371.2)
66.5
17.4
142.4

Our ability to continue to generate cash from operations will depend in large part on profitability, the rate of collections of accounts
receivable, our inventory turns, and our ability to manage other areas of working capital. Our cash and cash equivalents are
maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such
deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions considered to
be of reputable credit and to present little credit risk. We believe that our cash and cash equivalents, and borrowings, as described
below under the heading "Debt", along with cash provided by operations, will be sufficient to meet our anticipated operating cash
needs, debt service, stock repurchases under the stock repurchase program, and planned capital expenditures.

Operating Activities

Cash provided by operating activities was $585.0 million for fiscal 2019, as compared to $486.7 million for fiscal 2018. The
increase of $98.3 million was primarily driven by an increase in net income, net of non-cash items, and favorable working capital
requirements mainly resulting from an increase in deferred revenue associated with revenue growth, partially offset by a decrease
in accrued compensation and benefits.

Investing Activities

Cash used in investing activities was $275.3 million for fiscal 2019, as compared to $1,649.6 million for fiscal 2018. The decrease
of $1,374.3 million used in investing activities was primarily due to spending for business acquisitions during fiscal 2018, including
the $1,212.1 million purchase of Viewpoint and $485.5 million purchase of e-Builder, partially offset by proceeds from the sale
of short-term investments, also in fiscal 2018.

Financing Activities

Cash used in financing activities was $292.6 million for fiscal 2019, as compared to cash provided by financing activities of $989.4
million during fiscal 2018. The decrease of cash provided by financing activities of $1,282.0 million was primarily driven by the
repayment of debt, net of borrowings, in fiscal 2019 as compared to the increase in debt proceeds, net of repayments, used to fund
the Viewpoint and e-Builder acquisitions in fiscal 2018.

Debt

During fiscal 2019, we repaid $127.5 million of debt, net of borrowings. Each of our debt agreements requires us to maintain
compliance with certain debt covenants, all of which we were in compliance with at the end of fiscal 2019. Refer to Note 7 of
the Notes to Consolidated Financial Statements for more information regarding our debt.

CONTRACTUAL OBLIGATIONS

The following table summarizes our contractual obligations at the end of fiscal 2019:

(In millions)
Principal payments on debt (1)
Interest payments on debt (2)
Operating leases (3)
Other purchase obligations and commitments (4)
Income taxes payable (5)
Total

Payments Due By Period

Total

Less
than 1
year

1-3
years

3-5
years

More
than
5 years

1,854.0
410.3
212.7
324.7
72.7
2,874.4

219.0
74.1
46.8
236.3
3.7
579.9

225.0
132.3
63.7
86.2
14.5
521.7

810.0
102.2
38.4
2.2
31.8
984.6

600.0
101.7
63.8
—
22.7
788.2

(1)

(2)

(3)

(4)

(5)

Amount represents principal payments over the life of the debt obligations. For further information, see Note 7 to the
Consolidated Financial Statements.

Amount represents the expected interest payments relating to our debt, calculated using rates in effect as of the end of
fiscal 2019. For further information, see Note 7 to the Consolidated Financial Statements.

Operating leases represent undiscounted lease payments and include short-term leases and leases that were signed, but
have not yet commenced as of the end of fiscal year 2019.

Other purchase obligations and commitments primarily represent open non-cancelable purchase orders for material
purchases with our vendors, and also include estimated payments due for acquisition related earn-outs.

Income taxes payable represents a one-time transition tax liability related to known amounts of cash taxes payable in future
years as a result of the Tax Act. For further information, see Note 13 to the Consolidated Financial Statements.

Excluded from the table above are unrecognized tax benefits of $66.4 million included in Other non-current liabilities,
including interest and penalties. At this time, we cannot make a reasonably reliable estimate of the period of cash settlement
with tax authorities regarding this liability, and therefore, such amounts are not included in the contractual obligations
table above.

EFFECT OF NEW ACCOUNTING PRONOUNCEMENTS

The impact of recent accounting pronouncements is disclosed in Note 2 of our accompanying Notes to the Consolidated Financial
Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Annual Report on Form 10-K.

SUPPLEMENTAL DISCLOSURE OF NON-GAAP FINANCIAL MEASURES

To supplement our consolidated financial information, we believe that the following information is helpful to an overall
understanding of our past financial performance and prospects for the future. Our non-GAAP measures are not meant to be
considered in isolation or as a substitute for comparable GAAP measures. The non-GAAP financial measures and detailed
explanations to the adjustments to comparable GAAP measures are below.

(In millions, except per share data)

REVENUE:

GAAP revenue:

Acquired deferred revenue adjustment

( A )

Non-GAAP revenue:

GROSS MARGIN:

GAAP gross margin:

Acquired deferred revenue adjustment

Restructuring charges

( A )

( B )

2019

Fiscal Years

2018

2017

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

3,264.3

7.0

3,271.3

3,108.4

23.6

3,132.0

2,646.5

2.8

2,649.3

1,780.9

54.6 % $

1,681.0

54.1 % $

1,377.6

52.1 %

7.0

1.1

23.6

0.5

2.8

3.6

Amortization of purchased intangible
assets

Stock-based compensation

Amortization of acquisition-related
inventory step-up

Acquisition / divestiture items

Non-GAAP gross margin:

OPERATING EXPENSES:

GAAP operating expenses:

Restructuring charges

Amortization of purchased intangible
assets

Stock-based compensation

Acquisition / divestiture items

Amortization of acquired capitalized
commissions

Non-GAAP operating expenses:

OPERATING INCOME:

GAAP operating income:

Acquired deferred revenue adjustment

Restructuring charges

Amortization of purchased intangible
assets

Stock-based compensation

Amortization of acquisition-related
inventory step-up

Acquisition / divestiture items

Amortization of acquired capitalized
commissions

Non-GAAP operating income:

NON-OPERATING INCOME (EXPENSE),
NET:

GAAP non-operating expense, net:

Acquisition / divestiture items

Debt issuance costs

Non-GAAP non-operating expense, net:

( C )

( D )

( E )

( F )

( B )

( C )

( D )

( F )

( G)

( A )

( B )

( C )

( D )

( E )

( F )

( G)

( F )

( H )

94.1

5.6

—

103.2

4.5

0.2

2.0

85.8

3.9

2.8

—

1,888.7

57.7 % $

1,815.0

58.0 % $

1,476.5

55.7 %

1,405.0

(26.8)

(73.7)

(69.4)

(20.5)

6.3

1,220.9

375.9

7.0

27.9

167.8

75.0

—

20.5

(6.3)

667.8

(31.1)

(12.1)

—

(43.2)

43.0 % $

1,360.3

43.8 % $

1,141.9

43.1 %

(8.2)

(76.4)

(72.4)

(36.9)

4.7

(6.9)

(63.0)

(60.9)

(7.4)

1.3

37.3 % $

1,171.1

37.4 % $

1,005.0

37.9 %

11.5 % $

320.7

10.3 % $

235.7

8.9 %

23.6

8.7

179.6

76.9

0.2

38.9

(4.7)

2.8

10.5

148.8

64.8

2.8

7.4

(1.3)

20.4 % $

643.9

20.6 % $

471.5

17.8 %

(42.7)

(0.3)

6.7

(36.3)

12.5

(0.3)

—

12.2

INCOME TAX PROVISION (BENEFIT):

GAAP income tax provision (benefit):

(169.7)

(49)% $

GAAP and
Non-GAAP
Tax Rate %
(N)

Non-GAAP items tax effected

Difference in GAAP and Non-GAAP
tax rate

Tax reform impacts

Reserve release upon statute of
limitations expiration

IP restructuring impacts

Non-GAAP income tax provision:

NET INCOME:

GAAP net income attributable to Trimble
Inc.:

Acquired deferred revenue adjustment

Restructuring charges

Amortization of purchased intangible
assets

Stock-based compensation

( I )

( J )

( K )

( L )

( M )

( A )

( B )

( C )

( D )

41.1

30.1

—

14.0

206.3

121.8

514.3

7.0

27.9

167.8

75.0

GAAP and
Non-GAAP
Tax Rate %
(N)

(2)% $

(5.3)

47.8

27.3

21.3

24.3

—

GAAP and
Non-GAAP
Tax Rate %
(N)

52 %

129.7

46.9

14.8

(80.2)

—

20 % $

115.4

19 % $

111.2

23 %

282.8

118.4

23.6

8.7

179.6

76.9

2.8

10.5

148.8

64.8

Amortization of acquisition-related
inventory step-up

Acquisition / divestiture items

Amortization of acquired capitalized
commissions

Debt issuance costs

Non-GAAP tax adjustments

Non-GAAP net income attributable to
Trimble Inc.

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share
attributable to Trimble Inc.

Acquired deferred revenue adjustment

Restructuring charges

Amortization of purchased intangible
assets

Stock-based compensation

Amortization of acquisition-related
inventory step-up

Acquisition / divestiture items

Amortization of acquired capitalized
commissions

Debt issuance costs

Non-GAAP tax adjustments

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

ADJUSTED EBITDA:

OPERATING INCOME:

GAAP operating income:

Acquired deferred revenue adjustment

Restructuring charges

Amortization of purchased intangible
assets

Stock-based compensation

Amortization of acquisition-related
inventory step-up

Acquisition / divestiture items

Amortization of acquired capitalized
commissions

Non-GAAP operating income:

Depreciation expense

Income from equity method
investments, net

Adjusted EBITDA

( E )

( F )

( G )

( H )

( I ) -
( M )

( A )

( B )

( C )

( D )

( E )

( F )

( G )

( H )

( I ) -
( M )

( A )

( B )

( C )

( D )

( E )

( F )

( G)

—

8.4

(6.3)

—

(291.5)

502.6

2.03

0.03

0.11

0.66

0.30

—

0.03

(0.02)

—

(1.15)

1.99

375.9

7.0

27.9

167.8

75.0

—

20.5

(6.3)

667.8

39.4

35.8

743.0

Non-GAAP Revenue and Operating Income Results

0.2

38.6

(4.7)

6.7

(120.7)

491.7

1.12

0.09

0.04

0.71

0.30

—

0.15

(0.02)

0.03

(0.48)

1.94

320.7

23.6

8.7

179.6

76.9

0.2

38.9

(4.7)

643.9

35.6

28.7

708.2

2.8

7.1

(1.3)

—

18.5

372.4

0.46

0.01

0.04

0.58

0.25

0.01

0.03

—

0.07

1.45

235.7

2.8

10.5

148.8

64.8

2.8

7.4

(1.3)

471.5

34.6

29.5

535.6

Non-GAAP revenue increased by $139.3 million or 4% as compared to fiscal 2018, due to the impact of Viewpoint, which was
acquired in the third quarter of fiscal 2018, and to a lesser extent organic growth in Buildings and Infrastructure and Transportation
and Resources and Utilities, partially offset by Geospatial due to market softness.

Non-GAAP operating income increased by $23.9 million or 4% as compared to fiscal 2018, due to strong operating results in
Buildings and Infrastructure, partially offset by Geospatial and Transportation. Resources and Utilities operating income was
relatively flat.

Non-GAAP explanations

Non-GAAP revenue

We believe this measure helps investors understand the performance of our business, as non-GAAP revenue excludes the effects
of certain acquired deferred revenue that was written down to fair value in purchase accounting. Management believes that
excluding fair value purchase accounting adjustments more closely correlates with the ordinary and ongoing course of the acquired
company’s operations and facilitates analysis of revenue growth and business trends.

Non-GAAP gross margin

We believe our investors benefit by understanding our non-GAAP gross margin as a way of understanding how product mix,
pricing decisions, and manufacturing costs influence our business. Non-GAAP gross margin excludes the effects of acquired
deferred revenue that was written down to fair value in purchase accounting, restructuring charges, amortization of purchased
intangible assets, stock-based compensation, 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 adjustments
offer investors additional information that may be useful to view trends in our gross margin performance.

Non-GAAP operating expenses

We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue. Non-GAAP operating
expenses exclude restructuring charges, amortization of purchased intangible assets, stock-based compensation, and acquisition/
divestiture items associated with external and incremental costs resulting directly from merger and acquisition activities such as:
legal, due diligence, integration, and other costs including the acceleration of acquisition stock options, adjustment to the fair value
of earn-out liabilities, and the effects of certain acquired capitalized commissions that were eliminated in purchase accounting
from GAAP operating expenses. We believe that these adjustments offer investors supplemental information to facilitate
comparison of our operating expenses to our prior results.

Non-GAAP operating income

We believe our investors benefit by understanding our non-GAAP operating income trends, which are driven by revenue, gross
margin, and spending. Non-GAAP operating income excludes the effects of purchase accounting adjustments to certain acquired
deferred revenue and acquired capitalized commissions, restructuring charges, amortization of purchased intangible assets, stock-
based compensation, amortization of acquisition-related inventory step-up, and acquisition/divestiture items from GAAP operating
income. We believe that these adjustments offer an alternative means for our investors to evaluate current operating performance
compared to results of other periods.

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

We believe this measure helps investors evaluate our non-operating income trends. Non-GAAP non-operating 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, and debt issuance costs. 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, that are driven by non-GAAP income before taxes and our non-
GAAP tax rate. Non-GAAP net income excludes the effects of purchase accounting adjustments to certain acquired deferred
revenue and acquired capitalized commissions, restructuring charges, amortization of purchased intangible assets, stock-based
compensation, amortization of acquisition-related inventory step-up, acquisition/divestiture items, debt issuance costs, and non-
GAAP tax adjustments from GAAP net income. We believe our investors benefit from understanding these adjustments and from
an alternative view of our net income performance as compared to our past net income performance.

Non-GAAP diluted net income per share

We believe our investors benefit by understanding our non-GAAP operating performance as reflected in a per share calculation
as a way of measuring non-GAAP operating performance by ownership in the company. Non-GAAP diluted net income per share
excludes the effects of purchase accounting adjustments to certain acquired deferred revenue and acquired capitalized commissions,
restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related
inventory step-up, acquisition/divestiture items, debt issuance costs, and non-GAAP tax adjustments from GAAP diluted net
42

income per share. We believe that these adjustments offer investors a useful view of our diluted net income per share as compared
to our past diluted net income per share.

Adjusted EBITDA

We believe that adjusted EBITDA assists investors in comparing our performance over various reporting periods on a consistent
basis. Adjusted EBITDA refers to non-GAAP operating income plus depreciation and income from equity method investments.
We also believe the measure provides useful information to investors in understanding and evaluating our operating results in the
same manner as our management and board of directors.

These non-GAAP measures can be used to evaluate our historical and prospective financial performance, as well as our performance
relative to competitors. We believe some of our investors track our "core operating performance" as a means of evaluating our
performance in the ordinary, ongoing, and customary course of our operations. Core operating performance excludes items that
are non-cash, not expected to recur, or not reflective of ongoing financial results. Management also believes that looking at our
core operating performance provides a supplemental way to provide consistency in period-to-period comparisons. Accordingly,
management excludes from non-GAAP those items relating to the effects of purchase accounting adjustments to certain acquired
deferred revenue and acquired capitalized commissions, restructuring charges, amortization of purchased intangible assets, stock-
based compensation, amortization of acquisition-related inventory step-up, acquisition/divestiture items, debt issuance costs, and
non-GAAP tax adjustments.

(A) Acquired deferred revenue adjustment. Purchase accounting generally requires us to write-down acquired deferred revenue
to fair value. Our GAAP revenue includes the fair value impact from purchase accounting for post-contract support and
subscriptions contracts assumed in connection with our acquisitions. The non-GAAP adjustment to our revenue is intended
to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing
performance of our business and facilitates analysis of revenue growth and business trends.

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

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

(D)

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 fiscal years 2019, 2018 and 2017,
stock-based compensation was allocated as follows:

(In millions)
Cost of sales
Research and development
Sales and Marketing
General and administrative
Total stock-based compensation expense

2019

Fiscal Years

2018

2017

5.6
16.7
13.0
39.7
75.0

4.5
15.0
10.0
47.4
76.9

3.9
10.4
9.3
41.2
64.8

(E) 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.

(F)

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

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

(H) Debt issuance costs. Included in our non-operating expense, net this amount represents incurred costs in connection with
a bridge facility we put in place for the Viewpoint acquisition, costs associated with the issuance of new credit facilities
and our senior notes issued in 2018 that were not capitalized as debt issuance costs, and a write-off of debt issuance costs
for terminated and/or modified credit facilities. We excluded the debt issuance cost write-off from our non-GAAP measures.
We believe that investors benefit from excluding this item from our non-operating income to facilitate an evaluation of our
non-operating income trends.

(I)

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

(J) 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. 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.

(K) Tax reform impacts. This amount represents the provision for income taxes recorded as a result of the Tax Act enacted in
December 22, 2017. The provision primarily includes a one-time tax benefit from the policy election to establish deferred
taxes in relation to GILTI as created by the Tax Act. We excluded this item as it is a non-recurring expense. We believe
that investors benefit from excluding this item from our non-GAAP income tax provision because it allows for period-over-
period comparability.

(L) Reserve release upon statute of limitations expiration. This amount represents a one time tax benefit resulting from a reserve
release due to the expiration of statute of limitations for certain years. We excluded this because it is non-recurring and is
not indicative of our core operating performance.

(M)

IP restructuring impacts. These amounts represent net deferred tax impacts resulting from a non-U.S. intercompany transfer
of intellectual property, consistent with changes in tax laws and our international business operations. We excluded this
because it is not indicative of our core operating performance.

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

Item 7A. Quantitative and Qualitative Disclosure about Market Risk

We are exposed to market risk related to changes in interest rates and foreign currency exchange rates. We use certain derivative
financial instruments to manage these risks. We do not use derivative financial instruments for speculative purposes. All financial
instruments are used in accordance with policies approved by our board of directors.

Market Interest Rate Risk

Our cash equivalents consisted primarily of interest and non-interest bearing bank deposits as well as bank time deposits. The
main objective of these instruments is safety of principal and liquidity while maximizing return, without significantly increasing
risk.

Due to the nature of our cash equivalents that they are readily convertible to cash, we do not anticipate any material effect on our
portfolio due to fluctuations in interest rates.

We are exposed to market risk due to the possibility of changing interest rates under our credit facilities. Our 2018 Credit Facility
is comprised of a five-year revolving loan facility with a maturity date of May 2023 and a three-year term loan facility with a
maturity date of May 2021. We also have three unsecured uncommitted revolving credit facilities that are callable by the bank at
any time. We may borrow funds under the 2018 Credit Facility in U.S. Dollars in the case of the Term Loan and U.S. Dollars,
Euros or in certain other agreed currencies in the case of the Revolving Credit Facility as described under Note 7 of Notes to the
Consolidated Financial Statements.

At the end of fiscal 2019, we had outstanding a term loan facility of $225.0 million and a revolver credit facility of $110.0 million
under the 2018 Credit Facility and three revolving credit facilities of $218.7 million under the Uncommitted Facilities. A
hypothetical 10% increase in our borrowing rates at the end of fiscal 2019 could result in approximately $5.6 million annual
increase in interest expense on these existing principal balances.

The hypothetical changes and assumptions made above will be different from what actually occurs in the future.
Furthermore, the computations do not anticipate actions that may be taken by our management should the hypothetical market
changes actually occur over time. As a result, actual earnings effects in the future will differ from those quantified above.

Foreign Currency Exchange Rate Risk

We operate in international markets, which expose us to market risk associated with foreign currency exchange rate fluctuations
between the U.S. Dollar and various foreign currencies, the most significant of which is the Euro.

Historically, the majority of our revenue contracts are denominated in U.S. Dollars, with the most significant exception being
Europe, where we invoice primarily in Euros. Additionally, a portion of our expenses, primarily the cost to manufacture, cost of
personnel to deliver technical support on our products and professional services, sales and sales support, and research and
development, are denominated in foreign currencies, primarily the Euro.

Revenue resulting from selling in local currencies and costs incurred in local currencies are exposed to foreign currency exchange
rate fluctuations, which can affect our operating income. As exchange rates vary, operating income may differ from expectations.
In fiscal 2019, revenue and operating income were unfavorably impacted by foreign currency exchange rates by $43.8 million
and $2.1 million, respectively.

We enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations
on cash, debt, and certain trade and inter-company receivables and payables, primarily denominated in Euros, British pound, New
Zealand dollars, Australian dollars, Brazilian Real, and Canadian dollars. These contracts reduce the exposure to fluctuations in
foreign currency exchange rate movements, as the gains and losses associated with foreign currency balances are generally offset
with the gains and losses on the forward contracts. These instruments are marked-to-market through earnings every period and
generally range from one to two months in maturity. We do not enter into foreign currency forward contracts for trading purposes.
We occasionally enter into foreign currency forward contracts to hedge the purchase price of some of our larger business acquisitions.
Foreign currency forward contracts outstanding at the end of fiscal 2019 and 2018 are summarized as follows:

(In millions)
Forward contracts:
Purchased

Sold

At the End of Fiscal 2019

At the End of Fiscal 2018

Nominal
Amount

Fair
Value

Nominal
Amount

Fair
Value

$
$

(84.3) $
$
159.2

0.3
$
(1.0) $

(65.8) $
$
144.2

—
0.4

TRIMBLE INC.
INDEX TO FINANCIAL STATEMENTS

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Consolidated Statements of Stockholders’ Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm

Item 8.

Financial Statements and Supplementary Data

CONSOLIDATED BALANCE SHEETS

At the End of Fiscal Year

(In millions, except par values)
ASSETS
Current assets:

Cash and cash equivalents
Accounts receivable, net
Inventories
Other current assets

Total current assets

Property and equipment, net

Operating lease right-of-use assets
Goodwill
Other purchased intangible assets, net

Deferred income tax assets

Other non-current assets

Total assets

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:

Short-term debt

Accounts payable
Accrued compensation and benefits

Deferred revenue

Other current liabilities

Total current liabilities

Long-term debt

Deferred revenue, non-current

Deferred income tax liabilities
Income taxes payable

Operating lease liabilities

Other non-current liabilities

Total liabilities

Commitments and contingencies (Note 9)

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; 249.9 and 250.9 shares issued and
outstanding at the end of fiscal 2019 and 2018, respectively
Additional paid-in-capital

Retained earnings
Accumulated other comprehensive loss

Total Trimble Inc. stockholders’ equity

Noncontrolling interests

Total stockholders' equity

2019

2018

189.2
608.2
312.1
102.3

1,211.8

241.4
140.3
3,680.6
678.7

475.5

212.4

6,640.7

219.0
159.3

123.5

490.4

198.1
1,190.3
1,624.2

51.5
318.2
69.1

114.1
152.9
3,520.3

—

0.2

1,692.8

1,602.8
(176.8)

3,119.0
1.4
3,120.4

Total liabilities and stockholders’ equity

6,640.7

See accompanying Notes to the Consolidated Financial Statements.

172.5
512.6
298.0
106.0

1,089.1

212.9
—
3,540.0
744.3

12.2

177.9

5,776.4

256.2
147.6

169.2

348.4

133.8
1,055.2
1,712.3

38.8
73.8
71.3

—
150.2
3,101.6

—

0.3

1,591.9

1,268.3
(186.1)

2,674.4
0.4
2,674.8

5,776.4

CONSOLIDATED STATEMENTS OF INCOME

Fiscal Years

(In millions, except per share data)
Revenue:

Product
Service
Subscription

Total revenue
Cost of sales:
Product
Service
Subscription
Amortization of purchased intangible assets

Total cost of sales
Gross margin
Operating expense:

Research and development
Sales and marketing
General and administrative
Restructuring charges
Amortization of purchased intangible assets

Total operating expense

Operating income
Non-operating income (expense), net:

Interest expense, net
Income from equity method investments, net
Other income, net

Total non-operating income (expense), net

Income before taxes
Income tax provision (benefit)
Net income

Net gain attributable to noncontrolling interests

Net income attributable to Trimble Inc.
Basic earnings per share
Shares used in calculating basic earnings per share
Diluted earnings per share
Shares used in calculating diluted earnings per share

2019

2018

2017

1,934.8
686.2
643.3
3,264.3

939.4
253.9
196.0
94.1
1,483.4
1,780.9

469.7
504.2
330.6
26.8
73.7
1,405.0
375.9

(82.4)
35.8
15.5
(31.1)
344.8
(169.7)
514.5
0.2
514.3
2.05
250.8
2.03
252.9

$
$

1,999.9
588.7
519.8
3,108.4

938.9
247.3
138.0
103.2
1,427.4
1,681.0

446.1
479.8
349.8
8.2
76.4
1,360.3
320.7

(73.2)
28.7
1.8
(42.7)
278.0
(5.3)
283.3
0.5
282.8
1.13
250.0
1.12
253.4

$
$

1,763.8
475.4
407.3
2,646.5

875.6
194.4
113.1
85.8
1,268.9
1,377.6

370.2
400.1
301.7
6.9
63.0
1,141.9
235.7

(25.2)
29.5
8.2
12.5
248.2
129.7
118.5
0.1
118.4
0.47
252.1
0.46
256.7

$
$

See accompanying Notes to the Consolidated Financial Statements.

118.5

90.9

(0.5)
208.9

0.1

208.8

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Fiscal Years

(In millions)
Net income

2019

2018

2017

514.5

283.3

Foreign currency translation adjustments, net of tax $0.1 in 2019 and
2018, respectively and $3.7 in 2017
Net unrealized gain (loss), net of tax

Comprehensive income

Comprehensive income attributable to noncontrolling interests

10.3

(1.0)
523.8

0.2

(55.6)

0.9

228.6

0.5

Comprehensive income attributable to Trimble Inc.

523.6

228.1

See accompanying Notes to the Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Common stock

Amount

Additional
Paid-In
Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Loss

Total
Stockholders’
Equity

Noncontrolling
Interest

Total

(In millions)

Balance at the end of fiscal 2016

251.3

Net income

Other comprehensive
income

Comprehensive income

Issuance of common stock
under employee plans, net of
tax withholdings

Stock repurchases

Stock-based compensation

Tax benefit from stock option
exercises

—

5.0

(7.4)

—

Balance at the end of fiscal 2017

248.9

Net income

Other comprehensive
loss

Comprehensive income

Issuance of common stock
under employee plans, net of
tax withholdings

Stock repurchases

Stock-based compensation

Noncontrolling interest
investments

Tax benefit on new accounting
guidance adoption

—

4.4

(2.4)

—

0.3

—

(0.1)

—

0.2

—

0.1

—

1,348.3

$ 1,228.5

(221.8) $

2,355.3

(0.1) $ 2,355.2

—

118.4

—

90.0

(42.2)

65.0

—

(16.7)

(246.0)

—

0.4

—

90.4

—

118.4

90.4

208.8

73.3

(288.3)

65.0

0.4

0.1

—

118.5

90.4

208.9

73.3

(288.3)

65.0

0.4

1,461.1

$ 1,084.6

(131.4) $

2,414.5

— $ 2,414.5

—

282.8

—

67.5

(14.7)

78.0

—

(27.4)

(75.3)

—

3.6

—

(54.7)

—

282.8

(54.7)

228.1

40.2

(90.0)

78.0

—

3.6

Balance at the end of fiscal 2018

250.9

0.3

1,591.9

$ 1,268.3

(186.1) $

2,674.4

Net income

Other comprehensive
income

Comprehensive income

Issuance of common stock
under employee plans, net of
tax withholdings

Stock repurchases

Stock-based compensation

Noncontrolling interest
investments

514.3

—

9.3

3.7

(4.7)

—

(0.1)

—

0.2

59.8

(30.6)

72.5

(0.8)

(30.7)

(149.1)

—

514.3

9.3

523.6

29.1

(179.8)

72.5

(0.8)

Balance at the end of fiscal 2019

249.9

1,692.8

$ 1,602.8

(176.8) $

3,119.0

See accompanying Notes to the Consolidated Financial Statements.

0.5

—

283.3

(54.7)

228.6

40.2

(90.0)

78.0

(0.1)

3.6

$ 2,674.8

514.5

9.3

523.8

29.1

(179.8)

72.5

—

$ 3,120.4

0.4

0.2

—

0.8

1.4

CONSOLIDATED STATEMENTS OF CASH FLOWS

Fiscal Years

(In millions)
Cash flows from operating activities

Net income

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

Depreciation expense

Amortization expense

Deferred income taxes

Stock-based compensation

Income (loss) from equity method investments, net of
dividends

Other, net

(Increase) decrease in assets:
Accounts receivable, net

Inventories

Other current and non-current assets

Increase (decrease) in liabilities:

Accounts payable

Accrued compensation and benefits
Deferred revenue

Other current and non-current liabilities

Net cash provided by operating activities
Cash flow from investing activities:

Acquisitions of businesses, net of cash acquired
Acquisitions of property and equipment
Purchases of short-term investments
Proceeds from maturities of short-term investments
Proceeds from sales of short-term investments
Other, net

Net cash used in investing activities

Cash flows from financing activities:
Issuance of common stock, net of tax withholdings

Repurchase of common stock

Proceeds from debt and revolving credit lines

Payments on debt and revolving credit lines

Other, net

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents - beginning of fiscal year

Cash and cash equivalents - end of fiscal year

2019

2018

2017

514.5

283.3

118.5

39.4

167.8
(220.2)
75.0

(7.8)
5.5

(96.0)
(21.3)
11.0

14.5
(46.4)
148.2
0.8
585.0

(220.8)
(69.0)
—
—
—
14.5
(275.3)

29.1
(179.8)
1,195.4
(1,322.9)
(14.4)
(292.6)
(0.4)
16.7

172.5

35.6

179.6
(47.6)
76.9

1.9
21.3

(51.0)
(45.0)
(17.6)

(2.0)
18.6
76.3
(43.6)
486.7

(1,763.5)
(67.6)
(24.0)
6.2
196.8
2.5
(1,649.6)

40.2
(93.0)
2,976.4
(1,925.1)
(9.1)
989.4
(12.5)
(186.0)
358.5

189.2

172.5

34.6

148.8
(16.1)
64.8

(11.4)
5.5

(42.7)
(37.3)
(15.6)

25.7
34.0
19.3
101.6
429.7

(280.2)
(43.7)
(288.0)
122.1
97.7
20.9
(371.2)

73.8
(285.3)
786.0
(495.4)
(12.6)
66.5

17.4

142.4

216.1

358.5

See accompanying Notes to the Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: DESCRIPTION OF BUSINESS

Trimble began operations in 1978 and was originally incorporated in California as Trimble Navigation Limited in 1981. On
October 1, 2016, Trimble Navigation Limited changed its name to Trimble Inc. ("Trimble" or the "Company") and changed its
state of incorporation from the State of California to the State of Delaware.

Trimble focuses in transforming the way the world works by delivering products and services that connect the physical and digital
worlds. Core technologies used in positioning, modeling, connectivity, and data analytics enable customers to improve productivity,
quality, safety, and sustainability. Products are sold based on return on investment and provide benefits such as lower operational
costs, higher productivity, improved quality, enhanced safety and regulatory compliance, and reduced environmental impact.
Representative products include equipment that automates and enables increased precision within large industrial equipment such
as tractors and bulldozers; integrated systems that track fleets of vehicles and workers and provide real-time information and
analytics to the back-office; data collection systems that enable the management of large amounts of geo-referenced information;
software solutions that connect all aspects of a construction site or a farm; and building information modeling ("BIM") software
that is used throughout the design, build, and operation of buildings.

NOTE 2: ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires
management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying
notes. Estimates are used for revenue recognition including determining the nature and timing of satisfaction of performance
obligations and determining standalone selling price of performance obligations, allowances for doubtful accounts, sales returns
reserve, allowances for inventory valuation, warranty costs, goodwill impairment, intangibles impairment, purchased intangibles,
useful lives for tangible and intangible assets, stock-based compensation, and income taxes among others. Management bases its
estimates on historical experience and various other assumptions believed to be reasonable. Actual results and outcomes may
differ from management's estimates and assumptions.

Basis of Presentation

The Company has a 52-53 week fiscal year, ending on the Friday nearest to December 31. Fiscal 2019 is a 53-week year and
ended on January 3, 2020, and 2018 and 2017 were 52-week years, ended on December 28, 2018 and December 29, 2017,
respectively. Unless otherwise stated, all dates refer to the Company’s fiscal year.

These Consolidated Financial Statements include the results of the Company and its consolidated subsidiaries. Inter-company
accounts and transactions have been eliminated. Noncontrolling interests represent the noncontrolling stockholders’ proportionate
share of the net assets and results of operations of the Company’s consolidated subsidiaries.

The Company has presented revenue and cost of sales separately for products, service, and subscriptions. Product revenue includes
hardware, software licenses, parts and accessories; service revenue includes maintenance and support for hardware and software
products, training, and professional services; subscription revenue includes software as a service ("SaaS"), data, and hosting
services.

Reportable Segments

The Company reports its financial performance, including revenue and operating income, based on four reportable segments:
Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation.

The Company's Chief Executive Officer (chief operating decision maker) views and evaluates operations based on the results of
the Company’s reportable operating segments under its management reporting system. These results are not necessarily in
conformance with U.S. GAAP.

Revenue Recognition

Significant Judgments

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the
consideration that the Company expects to receive in exchange for those products or services. Revenue is recognized net of
allowance for returns and any taxes collected from customers. The Company enters into contracts that can include various
combinations of products and services, which are generally capable of being distinct and accounted for as separate performance
obligations; however, determining whether products or services are considered distinct performance obligations that should be
accounted for separately versus together may sometimes require significant judgment.

Judgment is required to determine stand-alone selling price ("SSP") for each distinct performance obligation. The Company uses
a range of amounts to estimate SSP when products and services are sold separately and determines whether there is a discount to
be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, the
Company determines SSP using information that may include market conditions and other observable inputs.

Nature of Goods and Services

The Company generates revenue primarily from products, services, and subscriptions; each of which is a distinct performance
obligation. Product revenue includes hardware and software. Services, including software maintenance, extended warranty, and
subscriptions, are performance obligations generally recognized over time. Descriptions are as follows:

Product

Revenue for hardware is recognized when the control of the product transfers to the customer, which is generally when
the product is shipped. The Company recognizes shipping fees reimbursed by the customer as revenue and the cost for
shipping as an expense in Cost of sales when control over products has transferred to the customer.

Revenue for perpetual and term software licenses is recognized upon delivery and commencement of license term. In
general, the Company’s contracts do not provide for customer specific acceptances.

A small amount of revenue is derived from the licensing of software to OEM customers. Royalty revenue is recognized
as and when the sales or usage occurs, which generally is at the time the OEM ships products incorporating the Company’s
software.

Services

Professional services include installation, training, configuration, project management, system integrations,
customization, data migration/conversion, and other implementation services. The majority of professional services are
not complex, can be provided by other vendors, and are readily available and billed on a time-and-material basis. Revenue
for distinct professional services is recognized over time, based on work performed.

In some contracts, products and professional services may be combined into a single performance obligation. This
generally arises when products or subscriptions are sold with significant customization, modification, or integration
services. Revenue for the combined performance is recognized over time as the work progresses because of the continuous
transfer of control to the customer.

Software maintenance entitles the customer to receive software product upgrades and enhancements on a when and if
available basis and technical support. Software maintenance is recognized on a straight-line basis commencing upon
product delivery over the post contract support term, which ranges from one to three years, with one year term being
most common.

Extended warranty entitles the customer to receive replacement parts and repair services. Extended warranty is separately
priced and is recognized on a straight-line basis over the extended service period, which begins after the standard warranty
period, ranging from one to two years depending on the product line.

Subscription

The Company’s software as a service ("SaaS") performance obligations may be sold with devices used to collect, generate,
and transmit data. SaaS is distinct from the related devices. In addition, the Company may host the software that the
customer has separately licensed. Hosting services are distinct from the underlying software.

Subscription terms generally range from month-to-month to five years. Subscription revenue is recognized monthly over
the service duration, commencing from activation.

Deferred Costs to Obtain Customer Contracts

The Company's incremental cost of obtaining contracts, which consists of sales commissions related to customer contracts that
include maintenance or subscription revenue, are deferred if the contractual term is greater than a year or if renewals are expected,
and the renewal commission is not commensurate with the initial commission. These commission costs are deferred and amortized
over a benefit period, either the contract term or the shorter of customer or product life, which is generally between three to seven
years. The Company has elected the practical expedient to exclude contracts with an amortization period of a year or less from
this deferral requirement.

Remaining Performance Obligations

Remaining performance obligations represent contracted revenue for which goods or services have not been delivered. The
contracted revenue, which will be recognized in future periods, includes both invoiced amounts in deferred revenue as well as
amounts that are not yet invoiced.

Foreign Currency Translation

Assets and liabilities of non-U.S. subsidiaries that operate in local currencies are translated to U.S. dollars at exchange rates in
effect at the balance sheet date, with the resulting translation adjustments, net of tax, recorded in Accumulated other comprehensive
loss within the stockholders’ equity section of the Consolidated Balance Sheets. Income and expense accounts are translated at
average monthly exchange rates during the year.

Derivative Financial Instruments

The Company enters into foreign exchange forward contracts to minimize the short-term impact of foreign currency fluctuations
on cash and certain trade and inter-company receivables and payables, primarily denominated in Euro, British pound, New Zealand
dollars, Australian dollars, Brazil real, and Canadian dollars. These contracts reduce the exposure to fluctuations in foreign currency
exchange rate movements, as the gains and losses associated with foreign currency balances are generally offset with the gains
and losses on the forward contracts. These instruments are marked-to-market through earnings every period and generally range
from one to two months in original maturity. The Company occasionally enters into foreign currency forward contracts to hedge
the purchase price of some of our larger business acquisitions. The Company does not enter into foreign currency forward contracts
for trading purposes. As of the fiscal years ended 2019 and 2018, there were no derivative financial instruments outstanding that
were accounted for as hedges.

Concentrations of Risk

Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount
of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial
institutions of reputable credit and therefore bear minimal credit risk.

The Company is also exposed to credit risk in the Company’s trade receivables, which are derived from sales to end-user customers
in diversified industries as well as various resellers. The Company performs ongoing credit evaluations of its customers’ financial
conditions and limits the amount of credit extended, when deemed necessary, but generally does not require collateral.

In addition, the Company relies on a limited number of suppliers for a number of its critical components.

Accounts Receivable, Net

Accounts receivable, net, includes billed and unbilled amounts due from customers. Unbilled receivables include revenue
recognized that exceeds the amount billed to the customer, provided the billing is not contingent upon future performance, and
the Company has the unconditional right to future payment with only the passage of time required. Both billed and unbilled
amounts due are stated at their net estimated realizable value. The unbilled receivables were $129.5 million and $22.3 million at
the end of fiscal 2019 and 2018, respectively.

The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be
collected. Each reporting period, the Company evaluates the collectibility of its trade accounts receivable based on a number of
factors such as age of the accounts receivable balances, credit quality, historical experience, and current economic conditions that
may affect a customer’s ability to pay. The allowance for doubtful accounts was $5.9 million and $4.6 million at the end of the
fiscal 2019 and 2018, respectively.

Inventories

Inventories are stated at the lower of cost or net realizable value. Adjustments are also made to reduce the cost of inventory for
estimated excess or obsolete balances. Factors influencing these adjustments include declines in demand that impact inventory
purchasing forecasts, technological changes, product life cycle and development plans, component cost trends, product pricing,
physical deterioration, and quality issues. If the Company's estimates used to reserve for excess and obsolete inventory differ
from what it expected, the Company may be required to recognize additional reserves, which would negatively impact its gross
margin.

Property and Equipment, Net

Property and equipment, net is stated at cost less accumulated depreciation. Depreciation of property and equipment is computed
using the straight-line method over the shorter of the estimated useful lives or the lease terms when applicable. Useful lives
generally range from four to six years for machinery and equipment, five to ten years for furniture and fixtures, two to five years
for computer equipment and software, thirty-nine years for buildings, and the life of the lease for leasehold improvements. The
Company capitalizes eligible costs to acquire or develop certain internal use software that are incurred subsequent to the preliminary
project stage. Capitalized costs related to internal-use software are amortized using the straight-line method over the estimated
useful lives of the assets, which range generally from two to five years. The costs of repairs and maintenance are expensed when
incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the
useful life of an asset are capitalized. Depreciation expense was $39.4 million in fiscal 2019, $35.6 million in fiscal 2018 and
$34.6 million in fiscal 2017.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases with lease terms greater than one year are
included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in our Consolidated Balance Sheets.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make
lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based
on the present value of lease payments over the lease term. Present value is determined by using the Company's incremental
borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at
commencement date. The operating lease ROU asset includes adjustments made for uneven rents and lease incentives. Lease
expense for lease payments is recognized on a straight-line basis over the lease term.

Lease agreements that include both lease and non-lease components are accounted for as part of the overall lease arrangement.

Business Combinations

The Company allocates the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling
interests in the acquiree based on their fair values at the acquisition date. The excess of the fair value of purchase consideration
over the fair value of these assets acquired, liabilities assumed, and non-controlling interests in the acquiree is recorded as goodwill.

When determining the fair values of assets acquired, liabilities assumed, and non-controlling interests in the acquiree, management
makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible
assets include expected future cash flows based on consideration of future growth rates and margins, customer attrition rates,
future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the
assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business
combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition,
as additional information about conditions existing at the acquisition date becomes available.

Goodwill and Purchased Intangible Assets

Goodwill represents the excess of the purchase consideration over the fair value of the net tangible and identifiable intangible
assets acquired in a business combination. Intangible assets acquired individually, with a group of other assets, or in a business
combination are recorded at fair value. Identifiable intangible assets are comprised of technology, patents, licenses, customer
contracts, acquired backlog, trademarks, and in-process research and development. Identifiable intangible assets are amortized
over the period of estimated benefit using the straight-line method and have estimated useful lives ranging from three years to ten
years with a weighted average useful life of 6.6 years. Goodwill is not subject to amortization, but is subject to, at a minimum,
an annual assessment for impairment.

Impairment of Goodwill, Intangible Assets, and Other Long-Lived Assets

The Company evaluates goodwill on an annual basis or more frequently if indicators of potential impairment exist. The annual
goodwill impairment test is performed at the reporting unit level in the fourth fiscal quarter of each year. We utilize either a
qualitative assessment or a quantitative test to assess the likelihood of an impairment. In performing the qualitative assessment,
we consider macroeconomic conditions, industry and market considerations, overall financial performance, and other relevant
events and factors that may impact the reporting units. When the Company performs a quantitative test, the estimation of the fair
value of a reporting unit involves the use of certain estimates and assumptions including expected future operating performance
using risk-adjusted discount rates.

Identifiable intangible assets are amortized over their estimated useful lives on a straight-line basis. Changes in circumstances
such as technological advances, changes to business models, or changes in the capital strategy could result in a revised useful life.
If the useful life of an asset is revised, the net book value of the estimated residual value is amortized over its revised remaining
useful life. Intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying
amount of those assets may not be recoverable based on their future cash flows. The estimated future cash flows are primarily
based upon assumptions about expected future operating performance.

Warranty

The Company accrues for warranty costs as part of its cost of sales based on associated material product costs, technical support
labor costs, and costs incurred by third parties performing work on the Company’s behalf. The Company’s expected future cost
is primarily estimated based upon historical trends in the volume of product returns within the warranty period and the cost to
repair or replace the equipment. When products sold include warranty provisions, they are covered by a warranty for periods
ranging from one year to two years.

Accrued warranty expenses of $16.3 million and $15.3 million is included in Other current liabilities in the Consolidated Balance
Sheets at the end of fiscal 2019 and 2018.

Guarantees, Including Indirect Guarantees of Indebtedness of Others

In the normal course of business to facilitate sales of our products, the Company indemnifies other parties, including customers,
lessors, and parties to other transactions with us with respect to certain matters. The Company may agree to hold the other party
harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other
claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made
and the amount of the claim. In connection with divesting some of the Company's businesses or assets, the Company may also
indemnify purchasers for certain matters in the normal course of business, such as breaches of representations, covenants, or

excluded liabilities. In addition, the Company entered into indemnification agreements with our officers and directors, and the
Company’s bylaws contain similar indemnification obligations to the Company’s agents.

It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history
of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically,
payments made by the Company under these agreements were not material, and no liabilities have been recorded for these
obligations on the Consolidated Balance Sheets at the end of fiscal 2019 and 2018.

Advertising and Promotional Costs

The Company expenses all advertising and promotional costs as incurred. Advertising and promotional expense was approximately
$42.7 million, $42.7 million, and $37.2 million, in fiscal 2019, 2018, and 2017, respectively.

Research and Development Costs

Research and development costs are charged to expense as incurred. Costs of software developed for external sale subsequent to
reaching technical feasibility were not significant and were expensed as incurred. The Company received third-party funding of
approximately $16.5 million, $19.5 million, and $18.1 million in fiscal 2019, 2018, and 2017, respectively. The Company offsets
research and development expense with any unconditional third-party funding earned and retains the rights to any technology
developed under such arrangements.

Stock-Based Compensation

Stock-based compensation expense recognized in the Consolidated Statements of Income is based on the grant date fair value of
the stock-based awards, net of estimated forfeitures. The Company attributes the fair value of stock options and restricted stock
units ("RSUs") to expense using the straight-line method. The fair value for RSUs with service conditions and performance-based
conditions is measured at the grant date using the fair value of Trimble’s common stock. Total expense for performance-based
RSUs is based upon the probable expected achievement of the underlying performance goals as adjusted in future periods for
changes in expectations and actual achievement. The fair value for market-based RSUs is measured at the grant date using a
Monte Carlo model. The grant date fair value for stock options and rights to purchase shares under the Company's Employee
Stock Purchase Plan ("ESPP") is estimated using the Black-Scholes option pricing model. The Company estimates forfeitures at
the date of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company
uses historical and current information to estimate forfeitures.

Income Taxes

Income taxes are accounted for under the liability method, whereby deferred tax assets or liability account balances are calculated
at the balance sheet date using current tax laws and rates in effect for the year in which the differences are expected to affect
taxable income. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than
not such assets will not be realized. The Company’s valuation allowance is primarily attributable to foreign net operating losses
and state research and development credit carryforwards. Management believes that it is more likely than not that the Company
will not realize certain of these deferred tax assets, and, accordingly, a valuation allowance has been provided for such amounts.
Valuation allowance adjustments associated with an acquisition after the measurement period are recorded through income tax
expense.

Relative to uncertain tax positions, the Company only recognizes a tax benefit if it is more likely than not that the tax position
will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized
in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent
likelihood of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating our
tax positions and tax benefits, which may require periodic adjustments and may not accurately forecast actual tax audit outcomes.
Determining whether an uncertain tax position is effectively settled requires judgment. Changes in recognition or measurement
of the Company's uncertain tax positions would result in the recognition of a tax benefit or an additional charge to the tax provision.
The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

The Company is subject to income taxes in the U.S. and numerous other countries and is subject to routine corporate income tax
audits in many of these jurisdictions. The Company generally believes that positions taken on its tax returns are more likely than
not to be sustained upon audit, but tax authorities in some circumstance have, and may in the future, successfully challenge these
positions. Accordingly, the Company’s income tax provision includes amounts intended to satisfy assessments that may result
from these challenges. Determining the income tax provision for these potential assessments and recording the related effects
requires management judgments and estimates. The amounts ultimately paid on resolution of an audit could be materially different
from the amounts previously included in the Company’s income tax provision and, therefore, could have a material impact on its
income tax provision, net income, and cash flows. The Company’s accrual for uncertain tax positions includes uncertainties
concerning the tax treatment of our international operations, including the allocation of income among different jurisdictions,
intercompany transactions, and related interest.

Computation of Earnings Per Share

The number of shares used in the calculation of basic earnings per share represents the weighted average common shares outstanding
during the period and excludes any potentially dilutive securities. The dilutive effects of outstanding stock options, restricted
stock units, and shares to be purchased under the Company’s employee stock purchase plan are included in diluted earnings per
share unless they are anti-dilutive.

Recent Accounting Pronouncements

Fiscal 2019 Adoption

Leases

In February 2016, the FASB issued a new lease standard that requires a lessee to recognize lease assets and lease liabilities on the
balance sheet for most leases and provide enhanced disclosures. The Company adopted the new standard at the beginning of fiscal
year 2019 by applying a modified retrospective method without restating comparative periods. Upon adoption, certain practical
expedients were used to carry forward existing leases as previously defined and classified. Leases containing both lease and non-
lease components are accounted for as part of the overall lease arrangement.

Operating leases with lease terms greater than one year are included in ROU assets, Other current liabilities, and Operating lease
liabilities on the Company's Consolidated Balance Sheets. Those ROU assets and liabilities are recognized at the present value
of lease payments over the lease terms by utilizing the Company’s incremental borrowing rate.

The standard had a material impact on the Company’s Consolidated Balance Sheets but did not have an impact on its Consolidated
Income Statements or Statement of Cash Flows. The most significant impact was the recognition of $123.5 million ROU assets
and $126.1 million lease liabilities for its operating leases at the adoption date.

Fiscal 2020 Adoption

Financial Instruments - Credit Losses

In June 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be
presented based on the net amount expected to be collected, not based on incurred losses. Furthermore, credit losses on available-
for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is
below amortized cost. The new standard is applied on a modified-retrospective basis and is effective for the Company beginning
in fiscal 2020. The Company currently anticipates that the adoption will not have a material impact on its Consolidated Financial
Statements.

Intangibles - Goodwill and Other

In January 2017, the FASB issued new guidance that simplifies the accounting for goodwill impairment by requiring impairment
charges to be based on the first step in the current two-step impairment test. The impairment test is performed by comparing the
fair value of a reporting unit with its carrying amount, and an impairment charge would be recognized for the amount by which
the carrying amount exceeds the reporting unit’s fair value. The new standard is applied on a prospective basis and is effective
for the Company beginning in fiscal 2020. The Company currently anticipates that the adoption will not have a material impact
on its Consolidated Financial Statements.

Intangibles - Internal-Use Software

In August 2018, the FASB issued new guidance that clarifies the accounting for implementation costs incurred in a cloud computing
arrangement that is a service contract. This guidance aligns the accounting for capitalizing implementation costs incurred in a
hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-
use software.

The Company is required to adopt the guidance in the first quarter of fiscal year 2020 on a prospective basis for all implementation
costs incurred after the date of adoption. The Company currently anticipates that the adoption will not have a material impact on
its Consolidated Financial Statements.

Future Adoption

Income Taxes - Simplifying the Accounting for Income Taxes

In December 2019, the FASB issued amendments to the accounting for Income Taxes to reduce complexity by removing certain
exceptions and implementing targeted simplifications. The new standard is effective for the Company beginning in fiscal 2021.
Early adoption is permitted. The Company is currently evaluating the effect of the amendments on its Consolidated Financial
Statements.

NOTE 3: EARNINGS PER SHARE

Basic earnings per share is computed by dividing Net income attributable to Trimble Inc.by the weighted-average number of shares
of common stock outstanding during the period. Diluted earnings per share is computed by dividing Net income attributable to
Trimble Inc. by the weighted-average number of shares of common stock outstanding during the period increased to include the
number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued.
Potentially dilutive securities include outstanding stock options, restricted stock units, contingently issuable shares, and shares to
be purchased under the Company’s employee stock purchase plan.

The following table shows the computation of basic and diluted earnings per share:

Fiscal Years

2019

2018

2017

(In millions, except per share data)
Numerator:
Net income attributable to Trimble Inc.
Denominator:
Weighted average number of common shares used in basic earnings per
share

Effect of dilutive securities
Weighted average number of common shares and dilutive potential
common shares used in diluted earnings per share
Basic earnings per share
Diluted earnings per share

$
$

514.3

282.8

118.4

250.8
2.1

252.9
2.05
2.03

$
$

250.0
3.4

253.4
1.13
1.12

$
$

252.1
4.6

256.7
0.47
0.46

For fiscal 2019, 2018, and 2017, the Company excluded an insignificant number of shares from the calculation of diluted earnings
per share because their effect would have been antidilutive.

NOTE 4: BUSINESS COMBINATIONS

During fiscal 2019, 2018, and 2017, the Company acquired multiple businesses, all with cash consideration. The Consolidated
Statements of Income include the operating results of the businesses from the dates of acquisition.

During fiscal 2019, the Company acquired four businesses, with total purchase consideration of $247.0 million. The acquisitions
were not significant individually or in the aggregate. The largest acquisition was Azteca Systems LLC (dba "Cityworks"), a
privately-held company that provides enterprise asset management (EAM) software for utilities and local government, based in
Sandy, Utah. In the aggregate, the businesses acquired during fiscal 2019 collectively contributed less than 1% percent to the
Company's total revenue during fiscal 2019.

During fiscal 2018, the Company acquired six businesses, with total purchase consideration of $1.8 billion, including the
acquisitions of Waterfall Holdings, Inc., the holding company of Viewpoint, Inc. (“Viewpoint”), and e-Builder, Inc. ("e-Builder")
having cash transactions valued at $1,212.1 million and $485.5 million, respectively. In the aggregate, the businesses acquired
during fiscal 2018 contributed approximately 5% percent to the Company's total revenue during fiscal 2018.

During fiscal 2017, the Company acquired ten businesses, with total purchase consideration of $331.2 million. The largest
acquisition was Müller-Elektronik, a privately held German company specializing in implement control and precision farming
solutions. In the aggregate, the businesses acquired during fiscal 2017 contributed less than 2% percent to the Company's total
revenue during fiscal 2017.

The Company determined the total consideration paid for each of its acquisitions as well as the fair value of the assets acquired
and liabilities assumed as of the date of each acquisition. The excess of purchase consideration over the fair value of net tangible
and identifiable intangible assets acquired was recorded as goodwill. The fair value of intangible assets acquired is generally
determined based on a discounted cash flow analysis. For the acquisitions in fiscal 2019, the preliminary fair values of net tangible
assets and intangible assets acquired were based on preliminary valuations and estimates, and assumptions are subject to change
within the measurement period (up to one year from the acquisition date).

Acquisition costs of $20.5 million, $38.9 million, and $7.4 million in fiscal 2019, 2018, and 2017, respectively, were expensed
as incurred and are included in General and administrative expenses in the Consolidated Statements of Income.

The following table summarizes the Company’s business combinations completed during fiscal 2019, 2018, and 2017:

Fiscal Years

(In millions)
Fair value of total purchase consideration
Less fair value of net assets acquired:

Net tangible assets acquired

Identified intangible assets
Deferred taxes

Goodwill

Intangible Assets

2019

2018

2017

247.0

1,782.9

331.2

6.7
104.6
(3.4)
139.1

5.0
568.3
(89.2)
1,298.8

29.7
166.7
(5.8)
140.6

The following table presents details of the Company’s total intangible assets:

At the End of Fiscal 2019

At the End of Fiscal 2018

Weighted-
Average
Useful Lives
(in years)

(In millions)
Developed product
technology
Trade names and
trademarks

Customer
relationships

Distribution rights
and other
intellectual
properties

Gross Carrying
Amount

Accumulated
Amortization

Net Carrying
Amount

Gross Carrying
Amount

Accumulated
Amortization

Net Carrying
Amount

1,266.7

(923.4) $

343.3

1,220.3

(825.3) $

395.0

74.8

(59.8)

15.0

72.9

(53.3)

19.6

769.8

(465.6)

304.2

715.1

(406.5)

308.6

79.7

(63.5)

16.2

84.4

(63.3)

21.1

2,191.0

(1,512.3) $

678.7

2,092.7

(1,348.4) $

744.3

The estimated future amortization expense of intangible assets at the end of fiscal 2019 is as follows (in millions):

2020
2021
2022
2023
2024
Thereafter
Total

152.7
131.6
112.4
98.8
73.1
110.1
678.7

Goodwill

The changes in the carrying amount of goodwill by segment for fiscal 2019 are as follows:

(In millions)
At the end of fiscal 2018

Additions due to acquisitions

Purchase price and foreign currency translation
adjustments

Buildings and
Infrastructure

Geospatial

Resources
and Utilities

Transportation

Total

1,970.2

403.1

305.7

861.0

3,540.0

0.3

2.5

—

138.8

—

139.1

(1.6)
401.5

0.9

445.4

(0.3)
860.7

1.5

3,680.6

At the end of fiscal 2019

1,973.0

Viewpoint and e-Builder acquisitions

On February 2, 2018, the Company completed the acquisition of e-Builder in an all-cash transaction valued at $485.5 million. e-
Builder is a SaaS-based construction program management solution for capital program owners and program management firms
that provides an integrated project delivery solution for owners, program managers, and contractors across the design, construct,
and operate life cycle.

On July 2, 2018, the Company acquired all of the outstanding shares of Viewpoint, in an all-cash transaction valued at $1,212.1
million. Viewpoint is a provider of construction management software, which integrates a contractor’s financial and resource
management to their project operations in the field. The integration across the office, team, and field workflows enable contractors
to employ Viewpoint to effectively manage and gain visibility over data and workflows that span the construction life cycle from
pre-production planning, to product operations and supply chain management, through project hand over and asset operation and
maintenance.

Viewpoint and e-Builder’s results of operations since their respective acquisition dates have been included in the Company’s
Consolidated Statements of Income since their respective acquisitions dates. Both Viewpoint and e-Builder's performance are
reported under the Buildings and Infrastructure segment.

The two acquisitions were funded through the use of approximately $211.2 million of the Company’s existing cash, with the
remainder funded through the issuance of senior notes and the Company’s 2018 Credit Facility.

The following table summarizes the consideration transferred to acquire Viewpoint and e-Builder, the assets acquired, and liabilities
assumed, and the estimated useful lives of the identifiable intangible assets as of the date of the acquisition:

(In millions)
Total purchase consideration

Net tangible assets (liabilities) acquired

Intangible assets acquired:

Developed product technology
In-Process Research & Development

Order backlog

Customer relationships

Trade name

Favorable Lease

Subtotal

Deferred tax liability

Less fair value of all assets/liabilities acquired

Goodwill

Viewpoint

$ 1,212.1

(0.6)

Estimated Useful Life

6 years
n/a

225.4
12.9

—

158.6

10 years

8.9

4.3

5 years

4 - 9 years

410.1

(61.2)

348.3

863.8

e-Builder

485.5

2.0

60.5
—

Estimated Useful Life

7 years

1.7

6 months

42.4

10 years

7 years

4.8

—

109.4

(18.2)
93.2

392.3

Goodwill consisted of highly skilled and valuable assembled workforce, a proven ability to generate new products and services
to drive future revenue, and a premium paid by the Company for synergies unique to its business. The Company recorded $863.8
million and $392.3 million of goodwill from Viewpoint and e-Builder acquisitions, respectively.

NOTE 5: CERTAIN BALANCE SHEET COMPONENTS

The following tables provide details of selected balance sheet items:

At the End of Fiscal Year

(In millions)
Inventories:

Raw materials
Work-in-process
Finished goods

Total inventories

2019

2018

95.8
13.2
203.1
312.1

96.2
12.6
189.2
298.0

Finished goods includes $5.6 million at the end of fiscal year 2019 and $7.3 million at the end of fiscal year 2018 for costs of sales
that have been deferred in connection with deferred revenue arrangements.

At the End of Fiscal Year

(In millions)
Property and equipment, net:

Machinery and equipment
Software and licenses
Buildings
Leasehold improvements
Construction in progress
Furniture and fixtures
Land

Less: accumulated depreciation

Total property and equipment, net

At the End of Fiscal Year

(In millions)
Other non-current liabilities:

Unrecognized tax benefits
Deferred compensation
Pension
Other

Total other non-current liabilities

2019

2018

165.3
143.0
115.3
49.9
38.3
35.7
10.1
557.6
(316.2)
241.4

134.2
135.9
106.5
40.7
16.4
31.4
9.9
475.0
(262.1)
212.9

2019

2018

66.4
36.2
20.2
30.1
152.9

65.8
28.5
19.2
36.7
150.2

NOTE 6: REPORTING SEGMENT AND GEOGRAPHIC INFORMATION

The Company's operating segments were determined based on how the Company's chief operating decision maker views and
evaluates operations. Various factors, including market separation and customer specific applications, go-to market channels, and
products and services, were considered in determining these operating segments. Segment operating results are regularly reviewed
by the chief operating decision maker to make decisions about resources to be allocated to each segment and to assess performance.
In each of its segments, the Company sells many individual products. For this reason, it is impracticable to segregate and identify
revenue for each of the individual products or group of products.

The Company’s 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, government, and land

management.

• 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, field service management, rail,

and military aviation.

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

Reporting Segments

Buildings and
Infrastructure

Geospatial

Resources
and Utilities

Transportation

Total

(In millions)
Fiscal 2019

Revenue

Acquired deferred revenue adjustment

Segment revenue

Operating income

Acquired deferred revenue adjustment

Amortization of acquired capitalized
commissions

Segment operating income

Depreciation expense

Fiscal 2018

Revenue

Acquired deferred revenue adjustment

Segment revenue

Operating income

Acquired deferred revenue adjustment

Amortization of acquired capitalized
commissions

Segment operating income

Depreciation expense

Fiscal 2017

Revenue

Acquired deferred revenue adjustment

Segment revenue

Operating income

Acquired deferred revenue adjustment

Amortization of acquired capitalized
commissions

Segment operating income

Depreciation expense

649.4

—

649.4

132.2

—

132.2

6.3

723.1

—

723.1

166.4

—

166.4

6.0

658.5

—

658.5

129.4

—

—
129.4

5.4

568.4

3.0

571.4

166.2

3.0

(0.1)
169.1

4.4

567.1

1.0

568.1

167.4

1.0

(0.2)
168.2

4.2

481.0

1.0

482.0

137.0

1.0

(0.1)
137.9

3.2

792.3

$ 3,264.3

—

7.0

792.3

$ 3,271.3

125.9

746.4

—

125.9

4.4

7.0

(6.3)
747.1

23.2

752.7

$ 3,108.4

0.4

23.6

753.1

$ 3,132.0

142.9

0.4

—

143.3

4.5

715.7

23.6

(4.7)
734.6

21.1

677.6

$ 2,646.5

0.7

2.8

678.3

$ 2,649.3

114.4

556.8

0.7

2.8

(0.3)
114.8

5.2

(1.3)
558.3

20.0

1,254.2

4.0

1,258.2

322.1

4.0

(6.2)
319.9

8.1

1,065.5

22.2

1,087.7

239.0

22.2

(4.5)
256.7

6.4

829.4

1.1

830.5

176.0

1.1

(0.9)
176.2

6.2

(In millions)
As of Fiscal Year End 2019

Accounts receivable, net

Inventories

Goodwill

As of Fiscal Year End 2018

Accounts receivable, net

Inventories

Goodwill

As of Fiscal Year End 2017

Accounts receivable, net

Inventories
Goodwill

Buildings and
Infrastructure

Geospatial

Resources
and Utilities

Transportation

Total

Reporting Segments

232.0

115.5

67.1

1,973.0

125.0

401.5

93.3

45.5

445.4

167.4

74.5

860.7

608.2

312.1

3,680.6

177.5

70.3

1,970.2

118.7

133.5

403.1

83.8

46.2

305.7

132.6

48.0

861.0

512.6

298.0

3,540.0

120.1

121.5

78.5

62.1
706.8

110.3
415.3

46.0
314.5

107.6

46.2
850.5

427.7

264.6
2,287.1

A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as
follows:

Fiscal Years

2019

2018

2017

(In millions)
Consolidated segment operating income

Unallocated corporate expense (1)

Acquired deferred revenue adjustment

Restructuring charges

Amortization of purchased intangible assets

Stock-based compensation

Amortization of acquisition-related inventory step-up

Acquisition and divestiture items

Amortization of acquired capitalized commissions

Consolidated operating income

Non-operating income (expense), net:

Consolidated income before taxes

747.1
(79.3)
(7.0)
(27.9)
(167.8)
(75.0)
—
(20.5)
6.3

375.9
(31.1)
344.8

734.6
(90.7)
(23.6)
(8.7)
(179.6)
(76.9)
(0.2)
(38.9)
4.7

320.7
(42.7)
278.0

558.3
(86.8)
(2.8)
(10.5)
(148.8)
(64.8)
(2.8)
(7.4)
1.3

235.7

12.5

248.2

(1) Unallocated corporate expense includes general corporate expense.

On a total Company basis, the disaggregation of revenue by geography is summarized in the tables below. Revenue is defined
as revenue from external customers attributed to countries based on the location of the customer and excludes the effects of
certain acquired deferred revenue that was written down to fair value in purchase accounting, consistent with the Reporting
Segment tables above.

(In millions)
Fiscal 2019

North America

Europe

Asia Pacific

Rest of World

Reporting Segments

Buildings and
Infrastructure

Geospatial

Resources
and Utilities

Transportation

Total

722.7

263.0

173.3

636.3

1,795.3

338.7

165.3

31.5

217.5

122.7

46.2

273.6

47.4

77.1

90.4

39.7

25.9

920.2

375.1

180.7

Total segment revenue

1,258.2

649.4

571.4

792.3

3,271.3

Fiscal 2018

North America

Europe

Asia Pacific

Rest of World

595.0

290.6

175.0

609.4

1,670.0

312.1

152.7

27.9

211.2

171.7

49.6

260.0

46.4

86.7

90.2

47.5

6.0

873.5

418.3

170.2

Total segment revenue

1,087.7

723.1

568.1

753.1

3,132.0

Fiscal 2017

North America

Europe

Asia Pacific

Rest of World

428.5

257.5

163.7

562.9

1,412.6

237.9

127.2

36.9

187.1

162.5

51.4

189.5

52.6

76.2

72.7

37.7

5.0

687.2

380.0

169.5

Total segment revenue

830.5

658.5

482.0

678.3

2,649.3

No single customer or country other than the United States accounted for 10% or more of Trimble’s total revenue in fiscal years
2019, 2018 and 2017. No single customer accounted for 10% or more of Trimble's accounts receivable as of fiscal years ended
2019 and 2018.

Property and equipment, net by geographic area was as follows:

At the End of Fiscal Year

(In millions)
Property and equipment, net:
United States
Europe
Asia Pacific and Rest of World
Total property and equipment, net

2019

2018

192.7
38.6
10.1
241.4

170.1
34.2
8.6
212.9

NOTE 7: DEBT

Debt consisted of the following:

At the End of Fiscal Year

(In millions, except percentages)
Senior Notes:

Effective interest rate

Date of Issuance

for fiscal 2019

2019

2018

2023 Senior Notes, 4.15%, due June 2023

2028 Senior Notes, 4.90%, due June 2028

June 2018

2024 Senior Notes, 4.75%, due December 2024 November 2014

Credit Facilities:

2018 Credit Facility, floating rate:

Term Loan, due May 2021

Revolving Credit Facility, due May 2023

Uncommitted facilities, floating rate

Promissory notes and other debt
Unamortized discount and issuance costs

Total debt

Less: Short-term debt

Long-term debt

May 2018

4.36%

5.04%

4.95%

3.25%

3.47%

1.54%

300.0

600.0

400.0

300.0

600.0

400.0

225.0

110.0

218.7

0.3
(10.8)
1,843.2
219.0

425.0

—

255.9

1.0
(13.4)
1,968.5
256.2

$ 1,624.2

$ 1,712.3

Each of the Company's debt agreements requires it to maintain compliance with certain debt covenants, all of which the Company
was in compliance with at the end of fiscal 2019.

Debt Maturities:

At the end of fiscal 2019, the Company's debt maturities based on outstanding principal were as follows (in millions):

Year Payable

2020

2021

2022

2023

2024

Thereafter

Total

Senior Notes:

219.0

225.0

—

410.0

400.0

600.0

1,854.0

All series of Senior Notes in the above table bear interest that is payable semi-annually in June and December of each year. For
the 2023 and 2028 Senior Notes, the interest rate is subject to adjustment from time to time if Moody’s or S&P (or, if applicable,
a substitute rating agency) downgrades (or subsequently upgrades) its rating assigned to the notes.

Senior Notes are unsecured and rank equally in right of payment with all of the Company's other senior unsecured indebtedness.
The Company may redeem the notes of each series of Senior Notes at its option in whole or in part at any time. Such indenture
also contains covenants limiting the Company’s ability to create certain liens, enter into sale and lease-back transactions, and
consolidate or merge with or into, or convey, transfer, or lease all or substantially all of the Company’s properties and assets, each
subject to certain exceptions.

2018 Credit Facility:

The Credit Facility in the above table provides for unsecured credit facilities in the aggregate principal amount of $1.75 billion,
which is comprised of $1.25 billion revolving credit facility maturing May 2023 and $500.0 million delayed draw term loan facility
that matures on the third anniversary of the funding date. The Company may request an additional loan facility up to $500.0
million prior to the maturity of the Credit Facility and subject to approval.

The Company may borrow funds under the 2018 Credit Facility in U.S. Dollars in the case of the Term Loan and U.S. Dollars,
Euros, or in certain other agreed currencies in the case of the Revolving Credit Facility. Borrowings will bear interest, at the
Company’s option, at either: (a) the alternate base rate, which is defined as a fluctuating rate per annum equal to the greatest of
(i) the prime rate then in effect, (ii) the federal funds rate then in effect, plus 0.50% per annum, or (iii) an adjusted LIBOR rate
determined on the basis of a one-month interest period, plus 1.00%, in each case, plus a margin of between 0.00% and 0.875%;
(b) an adjusted LIBOR rate (based on one, two, three or six-month interest periods), plus a margin of between 1.00% and 1.875%;
or (c) an adjusted EURIBOR rate (based on one, two, three or six-month interest periods), plus a margin of between 1.00% and
1.875%. The applicable margin in each case is determined based on either the Company’s credit rating at such time or the
Company’s leverage ratio as of its most recently ended fiscal quarter, whichever results in more favorable pricing to the Company.
Interest is payable quarterly in arrears with respect to borrowings bearing interest at the alternate base rate, or on the last day of
an interest period, but at least every three months, with respect to borrowings bearing interest at LIBOR rate or EURIBOR rate.

The 2018 Credit Facility also contains customary affirmative and negative covenants including, among other requirements, negative
covenants that restrict the Company’s and its subsidiaries’ ability to create liens and enter into sale and leaseback transactions and
that restrict its subsidiaries’ ability to incur indebtedness. Further, the 2018 Credit Facility contains financial covenants that require
the Company to maintain a minimum interest coverage of not less than 3.50:1.00 and a current maximum leverage ratio of not
greater than 3.75:1.00.

Uncommitted Facilities:

The Company has two $75.0 million and one €100.0 million revolving credit facilities, which are uncommitted (the "Uncommitted
Facilities") at the end of fiscal 2019. Generally, these uncommitted facilities may be redeemed upon demand. Uncommitted
facilities are classified as short-term debt in the Consolidated Balance Sheet. The weighted average interest rate
was 1.54% and 2.16% at the end of fiscal 2019 and 2018, respectively.

Promissory Notes and Other Debt

At the end of fiscal 2019 the Company had promissory notes and other notes payable totaling approximately $0.3 million classified
as short-term in the Consolidated Balance Sheet. At the end of fiscal 2018, the Company had promissory notes and other payables
totaling $1.0 million, of which $0.3 million was classified as short-term in the Consolidated Balance Sheet.

NOTE 8: LEASES

The Company has operating leases primarily for certain of its major facilities, including corporate offices, research and development
facilities, and manufacturing facilities. The remaining lease terms range from 1 to 10 years, and certain leases include options to
extend the lease for up to 9 years. The Company considers options to extend the lease in determining the lease term.

Operating lease expense consisted of:

At the End of Fiscal Year

(In millions)
Operating lease expense

Short-term lease expense and other

Total lease expense

2019

38.3

18.4

56.7

Supplemental cash flow information related to leases was as follows:

At the End of Fiscal Year

(In millions)
Cash paid for liabilities included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)

Right-of-use assets obtained in exchange for Operating lease liabilities:

(1) Excludes cash payments for short-term leases, which are not capitalized.

Supplemental balance sheet information related to leases was as follows:

At the End of Fiscal Year

(In millions)
Operating lease right-of-use assets

Other current liabilities

Operating lease liabilities

Total operating lease liabilities

Weighted-average discount rate

Weighted-average remaining lease term

2019

37.9

53.2

140.3

28.9

114.1

143.0

4.23%

6 years

At the end of fiscal year 2019, the Company's maturities of lease liabilities were as follows (in millions):

Year Payable
2020

2021

2022

2023

2024

Thereafter

Total lease payments

Less imputed interest

Total

34.0

32.2

25.8

20.3

15.0

33.5

160.8

17.8

143.0

The Company signed operating leases for real estate of approximately $39.4 million that have not yet commenced at the end of
fiscal 2019, and as such, have not been recognized on the Company’s Consolidated Balance Sheets. These operating leases are
expected to commence in 2020 and 2021 with lease terms ranging from 1 to 13 years.

NOTE 9: COMMITMENTS AND CONTINGENCIES

At the end of fiscal 2019, the Company had unconditional purchase obligations of approximately $324.7 million. These
unconditional purchase obligations primarily represent open non-cancelable purchase orders for material purchases with the
Company’s vendors.

Litigation

From time to time, the Company is involved in litigation arising out of the ordinary course of its business. There are no material
legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries
is a party or of which any of the Company's or its subsidiaries' property is subject.

NOTE 10: FAIR VALUE MEASUREMENTS

The Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability
(an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market
participants at the measurement date. Hierarchical levels are directly related to the amount of subjectivity associated with the
inputs to fair valuation of these assets and liabilities, and are as follows:

Level I—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities.

Level II—Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability.
These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or
liabilities in markets that are not active.

Level III—Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset
or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent
in the inputs to the model.

Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level
of significant input to the valuations.

At the End of Fiscal Year

(In millions)
Assets
Deferred compensation plan assets (1)

Derivative assets (2)

Total assets measured at fair value
Liabilities
Deferred compensation plan liabilities (1)
Derivative liabilities (2)

Contingent consideration liabilities (3)

2019

2018

Level I

Level II

Level III

Total

Level I

Level II

Level III

Total

36.2

$ — $ — $

36.2

—

36.2

0.3

—

0.3

$ — $

36.5

36.2

$ — $ — $

36.2

28.5

$ — $ — $ 28.5

—

28.5

0.4

—

0.4

$ — $ 28.9

28.5

$ — $ — $ 28.5

—

1.0

—

1.0

—

19.9

1.0

19.9

57.1

—

28.5

$ — $

—

5.6

—

5.6

$ 34.1

Total liabilities measured at fair value

36.2

(1) The Company maintains a self-directed, non-qualified deferred compensation plan for certain executives and other highly
compensated employees. The plan assets and liabilities are invested in actively traded mutual funds and individual stocks
valued using observable quoted prices in active markets. Deferred compensation plan assets and liabilities are included
in Other non-current assets and Other non-current liabilities, respectively, on the Company's Consolidated Balance Sheets.

(2) Derivative assets and liabilities primarily represent forward currency exchange contracts. The Company typically enters
into these contracts to minimize the short-term impact of foreign currency exchange rates on certain trade and inter-
company receivables and payables. Derivative assets and liabilities are included in Other current assets and Other current
liabilities on the Company's Consolidated Balance Sheets.

(3) Contingent consideration liabilities represent arrangements to pay the former owners of certain companies that Trimble
acquired. The undiscounted maximum payment under the arrangements is $33.7 million at the end of fiscal 2019. The
fair values are estimated using scenario-based methods or option pricing methods based upon estimated future revenue,
gross margin, or other milestones. At the end of fiscal 2019, the Company had $13.7 million included in Other current
liabilities and $6.2 million included in Other non-current liabilities on the Company's Consolidated Balance Sheets.

Additional Fair Value Information

The total estimated fair value of all outstanding financial instruments that are not recorded at fair value on a recurring basis (debt)
was approximately $1.9 billion and $2.0 billion at the end of fiscal year 2019 and 2018, respectively, consistent with the carrying
values.

The fair value of the Senior Notes was determined based on observable market prices in less active markets and is categorized
accordingly as Level II in the fair value hierarchy. The fair value of the bank borrowings and promissory notes has been calculated
using an estimate of the interest rate the Company would have had to pay on the issuance of notes with a similar maturity and by
discounting the cash flows at that rate and is categorized as Level II in the fair value hierarchy. The fair values do not give an
indication of the amount that the Company would currently have to pay to extinguish any of this debt.

NOTE 11. DEFERRED COSTS TO OBTAIN CUSTOMER CONTRACTS

Deferred cost to obtain customer contracts of $45.4 million and $41.3 million is included in Other non-current assets in the
Consolidated Balance Sheets at the end of fiscal 2019 and 2018, respectively.

Amortization expense related to deferred costs to obtain customer contracts, for fiscal 2019, 2018, and 2017, was $22.3 million,
$23.6 million, and $21.3 million, respectively. This expense was included in Sales and marketing expenses in the Company’s
Consolidated Statements of Income. There were no impairment losses related to the deferred commissions for the periods presented.

NOTE 12. DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS

Deferred Revenue

Changes in the Company’s deferred revenue during fiscal 2019 and 2018 are as follows:

Fiscal Years

(In millions)
Beginning balance of the period

Revenue recognized

Acquired deferred revenue

Net deferred revenue activity

Ending balance of the period

Remaining Performance Obligations

2019

2018

387.2
(341.3)

6.1
489.9

541.9

276.6
(226.9)

50.3
287.2

387.2

As of the end of fiscal 2019, approximately $1.2 billion of revenue is expected to be recognized from remaining performance
obligations for which goods or services have not been delivered, primarily hardware, subscription, software maintenance, and
professional services contracts. The Company expects to recognize revenue of approximately 71% and 17% on these remaining
performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter.

NOTE 13: INCOME TAXES

Income before taxes and the provision (benefit) for taxes consisted of the following:

Fiscal Years

(In millions)
Income before taxes:
United States
Foreign
Total

Provision (benefit) for taxes:

U.S. Federal:

Current

Deferred

U.S. State:

Current

Deferred

Foreign:

Current

Deferred

Income tax provision (benefit)

Effective tax rate

2019

2018

2017

43.0
301.8
344.8

25.4
252.6
278.0

(3.8)

252.3

248.5

5.1

(0.7)

4.4

49.2

(471.8)

(422.6)

(169.7)

(19.7)

(25.8)

(45.5)

5.0

(3.6)

1.4

57.0

(18.2)

38.8

33.2
215.0
248.2

98.6
(6.1)
92.5

4.5
(1.0)
3.5

42.7
(9.0)
33.7

(5.3)

129.7

(49)%

(2)%

52%

The difference between the tax provision (benefit) at the statutory federal income tax rate and the tax provision (benefit) as a
percentage of income before taxes ("effective tax rate") was as follows:

Fiscal Years

2019

2018

2017

Statutory federal income tax rate
Increase (reduction) in tax rate resulting from:
Foreign income taxed at different rates
U.S. State income taxes
U.S. Federal research and development credits

Stock-based compensation

Excess tax benefit related to stock-based compensation
Effect of U.S. tax law change
Other US taxes on foreign operations
Tax reserve releases
Intercompany transfer of intellectual property
Other
Effective tax rate

21 %

(7)%
2 %
(3)%
1 %
(2)%
— %
1 %
(5)%
(60)%
3 %
(49)%

21 %

(7)%
1 %
(4)%
1 %
(3)%
(8)%
2 %
(9)%
— %
4 %
(2)%

35 %

(15)%
1 %
(3)%
2 %
(4)%
33 %
— %
— %
— %
3 %
52 %

Tax Cuts and Jobs Act (the "Tax Act") reduced the U.S. federal tax rate from 35% to 21%, imposed a one-time transition tax on
accumulated foreign earnings, and created new taxes on certain foreign-sourced earnings referred to as Global Intangible Low-
Taxed Income ("GILTI"). As a result, the Company recorded a provisional net income tax expense of $80.2 million in fiscal 2017.
In fiscal 2018, the Company completed the accounting for the tax effects of the Tax Act and made immaterial adjustments to the
provisional amounts recorded previously. Additionally, in fiscal 2018, the Company finalized its accounting policy election to
record GILTI deferred taxes and recorded a $15.1 million one-time tax benefit.

To align with its international business operations, in the fourth quarter of 2019, the Company completed a non-U.S. intercompany
transfer of its intellectual property to a subsidiary in the Netherlands. The transaction resulted in deferred tax assets in the
Netherlands and GILTI deferred tax liabilities in the U.S., recorded at the applicable statutory tax rates, resulting in a one-time
income tax benefit of approximately $206.3 million.

The effective income tax rates in fiscal 2019 decreased compared to 2018 primarily due to the one-time tax benefit from the non-
U.S. intercompany transfer of intellectual property.

The effective income tax rates in fiscal 2018 decreased compared to 2017 primarily due to the one-time impacts from the Tax Act,
benefits from reserve releases due to the expiration of the U.S. federal statute of limitations for certain tax years, and a one-time
benefit from deferred taxes in relation to GILTI.

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred
tax assets and liabilities are as follows:

At the End of Fiscal Year

(In millions)
Deferred tax liabilities:

Purchased intangibles
Global intangible low-taxed income
Operating lease right-of-use assets
Other

Total deferred tax liabilities

Deferred tax assets:

Expenses not currently deductible
Depreciation and amortization
U.S. tax credit carryforwards
U.S. net operating loss carryforwards
Foreign net operating loss carryforwards
Stock-based compensation
Global intangible low-taxed income
Operating lease liabilities
Other

Total deferred tax assets
Valuation allowance
Total deferred tax assets
Total net deferred tax assets

Reported as:

Non-current deferred income tax assets
Non-current deferred income tax liabilities

Net deferred tax assets (liabilities)

2019

2018

158.7
233.7
35.3
12.8
440.5

28.0
471.5
34.2
9.8
16.2
13.3
—
36.0
14.1
623.1
(25.3)
597.8
157.3

475.5
(318.2)
157.3

177.1
—
—
13.8
190.9

33.4
7.3
30.3
20.8
16.9
20.3
13.4
—
14.7
157.1
(27.8)
129.3
(61.6)

12.2
(73.8)
(61.6)

At the end of fiscal 2019, the Company has U.S. federal and foreign net operating loss carryforwards, or NOLs, of approximately
$21.5 million and $81.0 million, respectively. The U.S. federal NOLs will begin to expire in 2026. There is, generally, no expiration
for the foreign NOLs. Utilization of the Company’s U.S. federal and state NOLs is subject to annual limitations in accordance
with the applicable tax code. The Company has determined that it is more likely than not that the Company will not realize a
portion of the foreign NOLs and, accordingly, a valuation allowance has been established for such amount.

The Company has U.S. federal and California research and development credit carryforwards of approximately $11.1 million and
$33.0 million, respectively. The U.S. federal tax credit carryforwards will expire beginning 2031. The California research tax
credits have an indefinite carryforward period. The Company believes that it is more likely than not that the Company will not
realize a portion of the California research and development credit carryforwards and, accordingly, a valuation allowance has been
established for such amount.

As a result of the Tax Act, the Company can repatriate foreign earnings back to the U.S. when needed with minimal U.S. income
tax consequences, other than the transition tax and GILTI tax. The Company reinvested a large portion of its undistributed foreign
earnings in acquisitions and other investments and intends to bring back a portion of foreign cash which was subject to the transition
tax and GILTI. During fiscal 2019, the Company repatriated $239.4 million of its foreign earnings to the U.S.

The total amount of the unrecognized tax benefits at the end of fiscal 2019 was $71.6 million. A reconciliation of gross unrecognized
tax benefit is as follows:

Fiscal Years

(In millions)

Beginning balance

Increase (decrease) related to prior years' tax positions

Increase related to current year tax positions

Lapse of statute of limitations

Settlement with taxing authorities

Ending balance

2019

2018

2017

69.1

82.4

3.8

12.6
(8.2)
(5.7)
71.6

4.5

10.0
(18.9)
(8.9)
69.1

72.9
(0.6)
12.1
(1.6)
(0.4)
82.4

The Company's total unrecognized tax benefits that, if recognized, would affect its effective tax rate were $59.5 million and $60.5
million at the end of fiscal 2019 and 2018, respectively.

The Company and its subsidiaries are subject to U.S. federal, state, and foreign income taxes. The Company's tax years are
substantially closed for all U.S. federal and state income taxes for audit purposes through 2014. Non-U.S. income tax matters
have been concluded for years through 2007. The Company is currently in various stages of multiple year examinations state,
and foreign (multiple jurisdictions) taxing authorities. While the Company generally believes it is more likely than not that its
tax positions will be sustained, it is reasonably possible that future obligations related to these matters could arise. The Company
believes that its reserves are adequate to cover any potential assessments that may result from the examinations and negotiations.

In the first quarter of fiscal 2018, the Company had received a formal Notice of Deficiency from the Internal Revenue Service for
fiscal year 2011, assessing tax and penalties totaling $51.2 million. In the third quarter of fiscal 2019, the Company received a
decision from U.S. Tax Court resulting in no change to its federal income tax liability for fiscal 2011. There are no federal income
tax returns currently under examination.

Although timing of the resolution and/or closure of audits is not certain, the Company does not believe that its gross unrecognized
tax benefits would materially change in the next twelve months.

The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The
Company’s liability for unrecognized tax benefits including interest and penalties was recorded in Other non-current liabilities in
the accompanying Consolidated Balance Sheets. At the end of fiscal 2019 and 2018, the Company had accrued $11.5 million and
$11.0 million, respectively, for payment of interest and penalties.

NOTE 14: ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss, net of related tax were as follows:

At the End of Fiscal Year

(In millions)

Accumulated foreign currency translation adjustments

Net unrealized actuarial losses

Total accumulated other comprehensive loss

NOTE 15: EMPLOYEE STOCK BENEFIT PLANS

2002 Stock Plan

2019

2018

(173.1) $
(3.7)
(176.8) $

(183.4)
(2.7)
(186.1)

Trimble’s 2002 Stock Plan provides for the granting of incentive and non-statutory stock options and RSUs for up to 74.6 million
shares. At the end of fiscal 2019, the remaining number of shares available for grant under the 2002 stock plan was 8.1 million.

Stock-Based Compensation Expense

The following table summarizes the components of stock-based compensation expense recognized in the Company’s Consolidated
Statements of Income for the periods indicated:

Fiscal Years

(In millions)
Restricted stock units
Stock options
ESPP
Total stock-based compensation expense

2019

2018

2017

67.3
0.6
7.1
75.0

68.9
1.5
6.5
76.9

53.3
5.7
5.8
64.8

At the end of fiscal 2019, total unamortized stock-based compensation expense was $174.4 million, with a weighted-average
recognition period of 2.4 years.

Restricted Stock Units

The Company grants RSUs containing only service conditions as well as performance stock units ("PSUs") containing a
combination of service, performance, and/or market conditions. RSUs containing only service conditions vest ratably over a three
to four year service period. PSUs are granted to executive officers and other senior employees and vest after a two to three year
service period.

For PSUs granted prior to 2019, the number of shares received at vesting will range from 0% to 200% of the target grant amount
based on either (1) market conditions or (2) performance conditions. Market conditions consider the achievement of the Company’s
relative total stockholder return ("TSR") of its common stock as compared to the TSR of the constituents of the S&P 500 over the
vesting period. Performance conditions consider the achievement of the Company's financial results over the vesting period.

PSUs granted during fiscal 2019 contain both performance and market conditions, and the number of shares received at
vesting will range from 0% to 250% of the target grant amount.

(In millions, except for per share data)

Outstanding at the beginning of year

Granted (2)

Shares vested, net

Canceled and forfeited

Outstanding at the end of year

2019 Restricted Stock Units
Outstanding

Number of
Units (1)

Weighted Average
Grant-Date Fair Value

4.9

3.7

(2.4) $

(0.5) $

5.7

35.94

41.38

31.41

38.61

39.62

(1) Includes 1.9 million PSUs granted, 1.3 million PSUs vested, and 2.0 million PSUs outstanding at the end of the year.

(2) Includes 0.6 million PSUs related to performance adjustments above target levels at the vesting date.

The weighted-average grant date fair value of all RSUs granted during fiscal years 2019, 2018, and 2017 was $41.38, $37.43, and
$40.19 per share, respectively. The fair value of all RSUs vested during fiscal years 2019, 2018, and 2017 was $75.7 million,
$73.9 million, and $40.4 million, respectively.

Stock options

Employee stock options vest over three years with annual or monthly vesting and expire seven to ten years from the date of
grant. The following table summarizes information about stock options outstanding at the end of fiscal 2019:

Outstanding at the beginning of year

Options granted

Options exercised

Cancelled and forfeited
Outstanding at the end of year

Options exercisable

Number
Of Shares
(in millions)

Weighted-
Average
Exercise Price
per Share

Weighted-
Average
Remaining
Contractual Term
(in years)

Aggregate
Intrinsic
Value
(in millions)

2.4

0.1
(1.4)
—
1.1

0.9

28.26

40.57

27.75
23.53
29.96

28.61

2.0

1.2

12.0

11.4

The total intrinsic value of options exercised during fiscal years 2019, 2018, and 2017 was $16.4 million, $30.0 million, and $41.1
million, respectively.

The weighted-average grant date fair value per share of stock options granted during fiscal years 2019 and 2018 was $12.92, and
$10.62, respectively. The fair value of all stock options vested during fiscal years 2019, 2018, and 2017 was $0.2 million, $1.9
million, and $6.5 million, respectively.

Employee Stock Purchase Plan

The Company has an ESPP under which the stockholders have approved an aggregate of 39.0 million shares of Common Stock
for issuance to eligible employees. The plan permits eligible employees to purchase Common Stock through payroll deductions
at 85% of the lower of the fair market value of the Common Stock at the beginning or at the end of each offering period, which
is generally six months. Rights to purchase shares are granted during the first and third quarter of each fiscal year. The ESPP
terminates on March 15, 2027. In fiscal 2019, 2018, and 2017, 0.8 million shares were issued, in each fiscal year respectively,
representing $25.7 million, $24.0 million, and $20.4 million in cash received for the issuance of stock under the Purchase Plan.
At the end of fiscal 2019, the number of shares reserved for future purchases was 7.4 million.

NOTE 16: COMMON STOCK REPURCHASE

In November 2014, the Company's Board of Directors approved a stock repurchase program ("2014 Stock Repurchase Program"),
authorizing the Company to repurchase up to $300.0 million of Trimble’s common stock. In August 2015, the Company’s Board
of Directors approved a stock repurchase program ("2015 Stock Repurchase Program"), authorizing the Company to repurchase
up to $400.0 million of Trimble’s common stock, replacing the 2014 Stock Repurchase Program. In November 2017, the
Company’s 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. The stock repurchase authorization does not have an
expiration date and replaces the 2015 Stock Repurchase Program, which was completed.

Under the stock repurchase program, the Company 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 will be determined by the Company’s management based on its evaluation of market conditions, share price, legal
requirements and other factors. The program may be suspended, modified or discontinued at any time without prior notice. At
the end of fiscal 2019, the 2017 Stock Repurchase Program had remaining authorized funds of $172.4 million.

During fiscal 2019, the Company repurchased approximately 4.7 million shares of common stock in open market purchases, at
an average price of $38.51 per share, for a total of $179.8 million under the 2017 Stock Repurchase Program.

During fiscal 2018, the Company repurchased approximately 2.4 million shares of common stock in open market purchases, at
an average price of $37.23 per share, for a total of $90.0 million under the 2017 Stock Repurchase Program.

During fiscal 2017, the Company repurchased approximately 7.4 million shares of common stock in open market purchases, at
an average price of $39.18 per share, for a total of $288.3 million under the 2017 and 2015 Stock Repurchase Programs.

Stock repurchases are reflected as a decrease to common stock based on par value and additional-paid-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 was charged to retained earnings. As a result of the 2019 repurchases, retained

earnings was reduced by $149.1 million in fiscal 2019. Common stock repurchases under the program were recorded based upon
the trade date for accounting purposes.

NOTE 17: STATEMENT OF CASH FLOW DATA

Fiscal Years

(In millions)
Supplemental disclosure of cash flow information:

Interest paid
Income taxes paid

2019

2018

2017

$
$

79.2
63.1

$
$

69.3
62.3

$
$

28.4
46.6

NOTE 18: SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

Trimble has a 52-53 week fiscal year, ending on the Friday nearest to December 31. Fiscal 2019 was a 53-week year and 2018
was a 52-week year. Therefore, the fourth quarter of fiscal 2019 included the 53rd week.

Fiscal Period

(In millions, except per share data)
Revenue
Gross margin
Net income attributable to Trimble Inc.

Basic net income per share
Diluted net income per share

Fiscal Period

(In millions, except per share data)
Revenue
Gross margin
Net income attributable to Trimble Inc.
Basic net income per share
Diluted net income per share

First
Quarter

2019

Second
Quarter

2019

Third
Quarter

2019

Fourth
Quarter

2019

801.6
438.3
62.3
0.25
0.25

First
Quarter

2018

742.2
396.2
58.5
0.24
0.23

854.8
460.6
94.6
0.38
0.37

Second
Quarter

2018

785.5
422.7
64.1
0.26
0.25

783.9
422.0
78.1
0.31
0.31

Third
Quarter

2018

795.2
426.9
73.7
0.29
0.29

824.0
460.0
279.3
1.12
1.11

Fourth
Quarter

2018

785.5
435.2
86.5
0.34
0.34

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Trimble Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Trimble Inc. (the Company) as of January 3, 2020 and
December 28, 2018, the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows
for each of the three years in the period ended January 3, 2020, and the related notes and financial statement schedule listed in the
Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial
statements present fairly, in all material respects, the financial position of the Company at January 3, 2020 and December 28, 2018,
and the results of its operations and its cash flows for each of the three years in the period ended January 3, 2020, in conformity
with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of January 3, 2020, based on criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) and our report dated February 28, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required
to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that
were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are
material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a
whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters
or on the accounts or disclosures to which they relate.

Description of the Matter

Revenue Recognition - Identification of Performance Obligations

How We Addressed the
Matter in Our Audit

Description of the Matter

How We Addressed the
Matter in Our Audit

As described in Note 2 to the consolidated financial statements, the Company enters into contracts
that can include various combinations of products and services, which are generally capable of
being distinct and accounted for as separate performance obligations. In some contracts, products
and professional services may be combined into a single performance obligation when products
or subscriptions are sold with significant customization, modification, or integration services.
Determining whether products or services are considered distinct performance obligations that
should be recognized separately or combined into a single performance obligation may sometimes
require significant judgment.

Auditing the Company's determination of distinct performance obligations was complex due to
the effort involved in assessing whether the various product and service offerings promised within
each contract are separate performance obligations or should be combined into a single performance
obligation.

We obtained an understanding, evaluated the design, and tested the operating effectiveness of the
Company's internal controls over the evaluation of the relevant terms of its contracts, and the
appropriate identification of distinct performance obligations. This included testing relevant
controls over the information systems that are important to the initiation, recording, and billing of
revenue transactions.

Our audit procedures included evaluating management’s revenue recognition policy which
included the application of management’s judgment in the identification of performance
obligations. Among other procedures to evaluate management’s identification and determination
of the distinct performance obligations, we read executed contracts for a sample of sales transactions
to understand the terms in the customer agreement and evaluated the appropriateness of
management’s application of the Company’s accounting policy. We evaluated the accuracy of the
Company’s contract summary documentation, specifically related to the identification and
determination of distinct performance obligations, and the related revenue recognition. Finally,
we assessed the appropriateness of the related disclosures in the consolidated financial statements.
Income Taxes - Intra-Entity Transfer of Intellectual Property

As described in Note 13 to the consolidated financial statements, the Company completed a non-
U.S. intercompany transfer of intellectual property during fiscal 2019 to a subsidiary in the
Netherlands. The transaction resulted in deferred tax assets and deferred tax liabilities recorded at
the applicable statutory tax rates, resulting in a one-time income tax benefit of $206.3 million.

Auditing the Company’s accounting for the intercompany transfer was complex due to the effort
and auditor judgment related to management’s identification, interpretation, and application of tax
laws in jurisdictions impacted by the transaction.

We obtained an understanding, evaluated the design, and tested the operating effectiveness of the
Company’s internal controls over its accounting for the transaction. This included testing controls
over the identification, interpretation, and application of tax laws, management’s review of the
analyses provided by third-party advisors, and review of the underlying data used to record the
one-time income tax benefit.

Among other procedures to evaluate management’s accounting for the transaction, we tested the
Company’s compliance with intercompany agreements executed as part of the transaction. We also
evaluated management’s identification, interpretation, and application of tax laws and evaluated
third-party advice obtained by the Company. We tested the completeness and accuracy of the data
used to calculate and record the one-time income tax benefit with the assistance of our valuation
specialists and tax professionals. Finally, we assessed the appropriateness of the related disclosures
in the consolidated financial statements.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 1986.

San Jose, California
February 28, 2020

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Trimble Inc.

Opinion on Internal Control over Financial Reporting

We have audited Trimble Inc.’s internal control over financial reporting as of January 3, 2020, based on criteria established in
Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) (the COSO criteria). In our opinion, Trimble Inc. (the Company) maintained, in all material respects, effective internal
control over financial reporting as of January 3, 2020, based on the COSO criteria.

As indicated in the accompanying Management's Report on Internal Control over Financial Reporting, management's assessment
of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of all current
year acquisitions, which are included in the 2019 consolidated financial statements of the Company and constituted less than 1%
of tangible assets and net assets as of January 3, 2020, and less than 1% of revenue and net income for the year then ended. Our
audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over
financial reporting of all current year acquisitions.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated balance sheets of the Company as of January 3, 2020 and December 28, 2018, the related consolidated
statements of income, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended
January 3, 2020, and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated
February 28, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment
of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal
Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial
reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material
respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for
our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that
could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

San Jose, California
February 28, 2020

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None

Item 9A. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

The Company's management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the
effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on
such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our
disclosure controls and procedures are effective.

Inherent Limitations on Effectiveness of Controls

The Company’s management, including the CEO and CFO, does not expect that our internal control over financial reporting will
prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable,
not absolute, assurance that the control system’s objectives will be met. The design of any system of controls is based in part on
certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving
its stated goals under all potential future conditions.

(b) Management’s Report on Internal Control over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting,
as such term is defined in Exchange Act Rule 13a-15(f). Our internal control over financial reporting is designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles.

The Company’s management, including the CEO and CFO, conducted an evaluation of the effectiveness of its internal control
over financial reporting based on the Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (2013 framework). The Company has excluded from its evaluation the internal control
over financial reporting of all current year acquisitions, which are included in the January 3, 2020 consolidated financial statements
and constituted less than 1% of tangible assets and net assets, respectively, as of January 3, 2020, and less than 1% of revenue and
net income, respectively, for the year then ended. Based on the results of this evaluation, the Company’s management concluded
that its internal control over financial reporting was effective at the end of fiscal 2019.

The effectiveness of our internal control over financial reporting at the end of fiscal 2019 has been audited by Ernst & Young LLP,
an independent registered public accounting firm, as stated in their report which is included elsewhere herein.

Changes in Internal Control over Financial Reporting

During the fourth quarter of fiscal 2019, there were no changes in the Company’s internal control over financial reporting that
have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

None.

Item 10. Directors, Executive Officers and Corporate Governance

PART III

The information required by this item, insofar as it relates to Trimble’s directors, will be contained under the captions “Election
of Directors” and “Section 16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement and is incorporated herein
by reference. The information required by this item relating to executive officers is set forth above in Item 1 Business Overview
under the caption “Executive Officers.”

The information required by this item insofar as it relates to the nominating and audit committees will be contained in the Proxy
Statement under the caption “Board Meetings and Committees; Director Independence.”

Code of Ethics

The Company’s Business Ethics and Conduct Policy applies to, among others, the Company’s Chief Executive Officer, Chief
Financial Officer, Chief Accounting Officer, and other finance organization employees. The Business Ethics and Conduct Policy
is available on the Company’s website at www.trimble.com under the heading “Corporate Governance - Governance Documents”
on the Investor Relations page of our website. A copy will be provided, without charge, to any stockholder who requests one by
written request addressed to General Counsel, Trimble Inc., 935 Stewart Drive, Sunnyvale, CA 94085.

If any substantive amendments to the Business Ethics and Conduct Policy are made or any waivers are granted, including any
implicit waiver, from a provision of the Business Ethics and Conduct Policy, to its Chief Executive Officer, Chief Financial Officer,
Chief Accounting Officer, or Corporate Controller, the Company will disclose the nature of such amendment or waiver on the
Company’s website at www.trimble.com or in a report on Form 8-K.

Item 11. Executive Compensation

The information required by this item will be contained in the Proxy Statement under the captions “Executive Compensation” and
“Non-Employee Director Compensation” and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item will be contained in the Proxy Statement under the caption “Security Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters” and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item will be contained in the Proxy Statement under the caption “Certain Relationships and
Related Person Transactions” and is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

The information required by this item will be contained in the Proxy Statement under the caption “Principal Accounting Fees and
Services” and is incorporated herein by reference.

Item 15. Exhibits and Financial Statement Schedules.

(a) (1) Financial Statements

PART IV

The following consolidated financial statements required by this item are included in Part II Item 8 hereof under the caption
“Financial Statements and Supplementary Data.”

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Consolidated Statements of Stockholders’ Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm

(2) Financial Statement Schedules

The following financial statement schedule is filed as part of this report:

Schedule II—Valuation and Qualifying Accounts

Page in this
Annual Report
on Form 10-K
49

Page in this
Annual Report
on Form 10-K
92

All other schedules have been omitted as they are either not required or not applicable, or the required information is included
in the consolidated financial statements or the notes thereto.

(b) Exhibits
We have filed, or incorporated into the Report by reference, the exhibits listed on the accompanying Index to Exhibits
immediately preceding the signature page of this Form 10-K.

Item 16. Form 10-K Summary.
None.

INDEX TO EXHIBITS

Exh. No.
2.1

2.2

2.3

3.1

3.2

4.1

4.2

4.3(A)

4.3(B)

4.3(C)

4.3(D)

Agreement and Plan of Merger dated September 30, 2016 between Trimble Inc. and
Trimble Navigation Limited

Description of Exhibit

Filed herewith or
incorporated by reference to:
Exhibit 2.1 to Form 8-K filed
October 3, 2016

Stock Purchase Agreement dated as of February 2, 2018 by and among Trimble Inc.,
e Builder, Inc. and the stockholders of e-Builder named therein

Exhibit 2.1 to Form 8-K filed
February 2, 2018

Agreement and Plan of Merger dated April 23, 2018, regarding the acquisition of
Viewpoint, Inc.

Certificate of Incorporation of Trimble Inc.

By-Laws of Trimble Inc., effective as of January 4, 2020

Form of Common Stock Certificate of Trimble Inc.

Description of Securities of Trimble Inc.

Exhibit 2.1 to Form 8-K filed
April 24, 2018

Exhibit 3.1 to Form 8-K filed
October 3, 2016

Exhibit 3.1 to Form 8-K filed
November 15, 2019

Exhibit 4.1 to Form 8-K filed
October 3, 2016

Filed herewith

Indenture, dated as of October 30, 2014, between the Company and U.S. Bank National
Association

Exhibit 4.2 to Form S-3 filed
October 30, 2014

First Supplemental Indenture, dated November 24, 2014, between the Company and U.S.
Bank National Association (which includes Form of 4.750% Senior Note due 2024)

Exhibit 4.1 to Form 8-K filed
November 24, 2014

Second Supplemental Indenture, dated October 1, 2016, between Trimble Inc., Trimble
Navigation Limited and U.S. Bank National Association

Exhibit 4.2 to Form 8-K filed
October 3, 2016

Third Supplemental Indenture, dated June 15, 2018, between Trimble Inc. and U.S. Bank
National Association (which includes Form of 4.150% Senior Note due 2023 and Form of
4.900% Senior Note due 2028)

Exhibit 4.1 to Form 8-K filed
June 15, 2018

10.1(A)

Lease dated May 11, 2005 between Carr America Realty Operating Partnership, L.P. and
the Company

Exhibit 10.17 to Form 10-K filed
March 10, 2006

10.1(B)

First Amendment to Lease between Carr NP Properties, LLC and the Company

Exhibit 10.23 to Form 10-K filed
March 1, 2011

10.1(C)

10.2

Second Amendment to Lease between the Company and Wilson Oakmead West, LLC
(successor in interest to Carr NP Properties, LLC)

Exhibit 10.6 to Form 10-Q filed
August 8, 2017

Credit Agreement dated as of May 15, 2018 by and among Trimble Inc., the borrowing
subsidiaries party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A.

Exhibit 10.1 to Form 8-K filed
May 16, 2018

10.3+

Form of Indemnification Agreement between the Company and its officers and directors

10.4+

Board of Directors Compensation Policy, effective as of May 7, 2015

10.5+

Incentive Compensation Recoupment Policy

10.6+

Deferred Compensation Plan, as amended December 31, 2018

10.7+

Age and Service Equity Vesting Program

10.8(A)+

Employee Stock Purchase Plan, as amended March 13, 2017

10.8(B)+

Employee Stock Purchase Plan - Form of global subscription agreement

10.9(A)+

2002 Stock Plan, as amended January 1, 2019

10.9(B)+

2002 Stock Plan - Form of stock option agreement (U.S. directors)

10.9(C)+

2002 Stock Plan - Form of stock option agreement (non-U.S. directors)

10.9(D)+

2002 Stock Plan - Form of global stock option agreement (officers)

Exhibit 10.1 to Form 8-K filed
November 15, 2017

Exhibit 10.1 to Form 8-K filed
May 11, 2015

Exhibit 99.1 to Form 8-K filed
May 8, 2017

Exhibit 10.1 to Form 10-Q filed
May 7, 2019

Exhibit 10.3 to Form 10-Q filed
August 8, 2017

Appendix B of Form DEF 14A
filed March 23, 2017

Exhibit 10.5 to Form 10-Q filed
November 10, 2015

Exhibit 10.1 to Form 10-Q filed
May 7, 2019

Exhibit 10.2 to Form 10-Q filed
November 7, 2014

Exhibit 10.3 to Form 10-Q filed
November 7, 2014

Exhibit 10.1 to Form 10-Q filed
November 10, 2015

10.9(E)+

2002 Stock Plan - Form of global restricted stock unit award agreement

10.9(F)+

2002 Stock Plan - Form of global performance restricted stock unit award agreement

10.9(G)+

2002 Stock Plan - Form of global restricted stock unit award agreement (officers)

Exhibit 10.2 to Form 10-Q filed
November 10, 2015

Exhibit 10.6 to Form 10-Q filed
November 10, 2015

Exhibit 10.30 to Form 10-K filed
February 24, 2017

2002 Stock Plan - Form of global performance stock unit award agreement (Operating
Income/Revenue)

Exhibit 10.4 to Form 10-Q filed
August 8, 2017

2002 Stock Plan - Form of global performance stock unit award agreement (Total
Stockholder Return)

10.9(J)+

2002 Stock Plan - Form of global performance stock unit award agreement (officers)

10.9(K)+

2002 Stock Plan - Performance stock option agreement between the Company and Rob
Painter issued January 4, 2020

Filed herewith

10.10+

Annual Management Incentive Plan Description

Exhibit 10.5 to Form 10-Q filed
August 8, 2017

Exhibit 10.1 to Form 10-Q filed
August 2, 2019

Exhibit 10.1 to Form 10-Q filed
May 8, 2017

Exhibit 10.1 to Form 10-Q filed
August 8, 2017

Form of Change in Control Severance Agreement between the Company and certain
Company officers, together with a schedule identifying material differences in the
agreements entered into with specific officers

Form of Executive Severance Agreement between the Company and certain Company
officers, together with a schedule identifying material differences in the agreements entered
into with specific officers

Exhibit 10.2 to Form 10-Q filed
August 8, 2017

Change in Control Severance Agreement between the Company and Steven W. Berglund
dated February 20, 2019

Exhibit 10.1 to Form 10-K filed
February 22, 2019

Executive Severance Agreement between the Company and Steven W. Berglund dated
February 20, 2019

Exhibit 10.2 to Form 10-K filed
February 22, 2019

Offer Letter between the Company and David Barnes (in his capacity as CFO) dated
November 8, 2019

Exhibit 10.1 to Form 8-K filed
November 18, 2019

Severance Agreement between the Company and Rosalind Buick executed December 6,
2019

Subsidiaries of the Company

Consent of Independent Registered Public Accounting Firm

Power of Attorney (included on signature page herein)

Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of CEO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Certification of CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The following financial statements from this Annual Report on Form 10-K, formatted in
Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income,
(iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of
Stockholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to
Consolidated Financial Statements, tagged as blocks of text and including detailed tags

Filed herewith

10.9(H)+

10.9(I)+

10.11+

10.12+

10.13+

10.14+

10.15+

10.16+

21.1

23.1

24.1

31.1

31.2

32.1

32.2

101++

104++

The cover page from this Annual Report on Form 10-K, formatted in Inline XBRL

Indicates management contract or compensatory plan or arrangement required to be filed as an exhibit to this Annual Report on Form
10-K.

++ Pursuant to applicable securities laws and regulations, the Company is deemed to have complied with the reporting obligation relating to
the submission of interactive data files in such exhibits and is not subject to liability under any anti-fraud provisions of the federal
securities laws as long as the Company has made a good faith attempt to comply with the submission requirements and promptly amends
the interactive data files after becoming aware that the interactive data files fails to comply with the submission requirements.

** Portions of this document have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for

confidential treatment under Rule 24b-2.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

SIGNATURES

By:

February 28, 2020

TRIMBLE INC.

/S/ ROBERT G. PAINTER

Robert G. Painter,
President and Chief Executive Officer

POWER OF ATTORNEY

Know all persons by these presents, that each person whose signature appears below constitutes and appoints Robert G. Painter
as his attorney-in-fact, with the power of substitution, for him in any and all capacities, to sign any amendments to this Report on
Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and
Exchange Commission, hereby ratifying and confirming all that said attorney-in-fact, or his substitute or substitutes, may do or
cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below
by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature

Capacity in which Signed

/s/ ROBERT G. PAINTER
Robert G. Painter

President, Chief Executive Officer, Director

February 28, 2020

/s/ DAVID G. BARNES
David G. Barnes

Chief Financial Officer
(Principal Financial Officer)

/s/ JULIE A. SHEPARD
Julie A. Shepard

Chief Accounting Officer
(Principal Accounting Officer)

/s/ STEVEN W. BERGLUND
Steven W. Berglund

/s/ BORJE EKHOLM
Börje Ekholm

/s/ KAIGHAM (KEN) GABRIEL
Kaigham (Ken) Gabriel

/s/ MERIT E. JANOW
Merit E. Janow

/s/ MEAGHAN LLOYD
Meaghan Lloyd

/s/ SANDRA MACQUILLAN
Sandra MacQuillan

/s/ RON S. NERSESIAN
Ron S. Nersesian

/s/ MARK S. PEEK
Mark S. Peek

/s/ JOHAN WIBERGH
Johan Wibergh

Director

SCHEDULE II

TRIMBLE INC.
VALUATION AND QUALIFYING ACCOUNTS

Fiscal Years

(In millions)
Allowance for doubtful accounts:
Balance at beginning of period
Acquired allowance
Bad debt expense
Write-offs, net of recoveries

Balance at end of period

2019

2018

2017

4.6
0.2
6.5
(5.4)
5.9

3.6
1.6
3.4
(4.0)
4.6

5.0
0.3
1.2
(2.9)
3.6

MANAGEMENT INFORMATION

BOARD OF DIRECTORS

EXECUTIVE MANAGEMENT

Robert G. Painter
President and
Chief Executive Officer

David G. Barnes
Senior Vice President and
Chief Financial Officer

Business Operations

Ronald J. Bisio
Senior Vice President

Cyndee Hoagland
Senior Vice President

Patricia Boothe
Senior Vice President

James Langley
Senior Vice President

Bryn A. Fosburgh
Senior Vice President

Darryl R. Matthews
Senior Vice President

Staff Operations

Thomas Fansler
Senior Vice President
Chief Technology &
Data Officer

James A. Kirkland
Senior Vice President
General Counsel

Leah K. Lambertson
Senior Vice President
Operations and
Chief Information Officer

Michael Lesyna
Senior Vice President
Strategy and
Corporate Development

E. Michael Scarpa
Senior Vice President
Chief Human Resources
Officer

Julie A. Shepard
Vice President
Finance and Chief
Accounting Officer

Steven W. Berglund
Executive Chairman

Robert G. Painter
President and
Chief Executive Officer

Börje Ekholm
President and Chief Executive Officer,
Ericsson

Dr. Kaigham Gabriel
President and Chief Executive Officer,
Draper

Merit E. Janow
Dean, School of International and
Public Affairs, and Professor of
Practice, Columbia University

Mark S. Peek
EVP, Managing Director, and Head of
Workday Ventures

Meaghan Lloyd
Partner,
Gehry Partners, LLP

Sandra MacQuillan
Executive Vice President and
Chief Supply Chain Officer,
Mondelēz Global LLC

Ron S. Nersesian
Chairman, President, and
Chief Executive Officer,
Keysight Technologies

Johan Wibergh
Group Chief Technology Officer,
Vodafone

CORPORATE HEADQUARTERS

TRIMBLE INVESTOR INFORMATION

Trimble Inc.
935 Stewart Drive
Sunnyvale, California 94085
+1 (408) 481-8000
www.trimble.com

STOCKHOLDER INFORMATION

Independent Auditor

Ernst & Young LLP
San Jose, California

Transfer Agent & Registrar

American Stock
Transfer & Trust Company
6201 15th Avenue
Brooklyn, New York 11219
+1 (800) 937-5449
www.amstock.com
info@amstock.com

Investor Relations Contact
+1 (408) 481-7838
investor_relations@trimble.com

Traded: The NASDAQ Stock Exchange
Symbol: TRMB

LOCATIONS

Argentina

Australia

Austria

Belgium

Brazil

Bulgaria

Canada

China

Denmark

Finland

France

Germany

Ghana

Hungary

India

Indonesia

Ireland

Italy

Japan

Kenya

Korea

Lithuania

Malaysia

Mexico

Netherlands

New Zealand

Hong Kong

Norway

Poland

Romania

Russia

Saudi Arabia

Singapore

South Africa

Spain

Sweden

Switzerland

Thailand

United Arab
Emirates

United Kingdom

United States of
America

The company’s annual report on Form 10-K, as filed with the Securities Exchange Commission, accompanies
this annual report to stockholders and is also available on the Investor Relations section of the company’s
website at: www.trimble.com

©2020, Trimble Inc. All rights reserved. Trimble, the Global and Triangle Logo, are trademarks of Trimble Inc.
and/or its affiliates registered in the United States Patent and Trademark Office and/or in other countries.
All other trademarks are the property of their respective owners.