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 December 31, 2021
or
☐ 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
Common Stock, $0.001 par value
Trading Symbol(s)
TRMB
Name of each exchange on which registered
NASDAQ Global Select Market
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.
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 ☒ No ☐
Yes ☐ No ☒
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 ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to
Yes ☒ No ☐
submit such files).
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. ☐
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Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 2, 2021, the aggregate market value of the common stock held by non-affiliates of the registrant was approximately $20.7
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 18, 2022
251,215,563
shares
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DOCUMENTS INCORPORATED BY REFERENCE
Certain parts of Trimble Inc. Proxy Statement relating to the annual meeting of stockholders to be held on May 25, 2022 (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 impact of the COVID-19 pandemic, including upon global or local macroeconomic conditions, our results of
operations, and estimates or judgments;
• supply chain shortages and disruptions resulting in increased costs and reduced revenue;
• seasonal fluctuations in our hardware revenue, sales to U.S. governmental agencies, longer ordering, lead times and less
flexibility to adapt to changes in product mix demand, and expectations that we will experience less seasonality in the
future;
• changes in global macroeconomic conditions;
• the portion of our revenue expected to come from sales to customers located in countries outside of the U.S.;
• our plans to continue to invest in research and development to actively develop and introduce new products and to
deliver targeted solutions to the markets we serve;
• a continued shift in revenue towards a more significant mix of software and recurring revenue, including subscription,
maintenance and support, and services revenue;
• our belief that increases in recurring revenue, including from our software and subscription solutions, will provide us
with enhanced business visibility over time;
• our belief that our cash and cash equivalents, together with borrowings under the commitments for our credit facilities
and senior notes, will be sufficient to meet our anticipated operating cash needs, debt service, and planned capital
expenditures for the foreseeable future;
• any anticipated benefits to us from our acquisitions and our ability to successfully integrate the acquired businesses;
• fluctuations in interest rates and foreign currency exchange rates;
• our belief that our gross unrecognized tax benefits will not materially change in the next twelve months;
• our growth strategy, including our focus on historically underserved large markets, the relative importance of organic
growth versus strategic acquisitions, and the reasons that we acquire businesses;
• our discretion to conduct, suspend, or discontinue our share repurchase program subject to the discretion of our
management; and
• our ability to convert backlog to revenue.
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 we
operate, our current tax structure, including where our assets are deemed to reside for tax purposes, and the beliefs and
assumptions of our management. Discussions containing such forward-looking statements may be found in “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” section of this Annual Report on Form 10-K. In
some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “could,” “predicts,”
“potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar expressions.
These forward-looking statements involve certain risks and uncertainties that could cause actual results, levels of activity,
performance, achievements, and events to differ materially from those implied by such forward-looking statements, including
but not limited to those discussed in this report under the section entitled “Risk Factors” and elsewhere, and in other reports we
file with the Securities and Exchange Commission (“SEC”), specifically the most recent 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.
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TRIMBLE INC.
2021 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
Reserved
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
Item 9
Financial Statements and Supplementary Data
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A Controls and Procedures
Item 9B Other Information
Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
PART III
Item 10 Directors, Executive Officers, and Corporate Governance
Item 11 Executive Compensation
Item 12
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13 Certain Relationships, Related Transactions, and Director Independence
Item 14
Principal Accountant Fees and Services
PART IV
Item 15 Exhibits and Financial Statement Schedules
Item 16
Form 10-K Summary
Signatures
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Item 1. Business
PART I
Trimble Inc. (“Trimble” or “the Company” or “we” or “our” or “us”) is a leading provider of technology solutions that enable
professionals and field mobile workers to improve or transform their work processes and drive a more sustainable future. Our
comprehensive work process solutions are used across a range of industries including architecture, building construction, civil
engineering, geospatial, survey and mapping, agriculture, natural resources, utilities, transportation, and government. Our
representative customers include construction owners, contractors, engineering and construction firms, surveying companies,
farmers and agricultural companies, energy and utility companies, trucking companies, and state, federal, and municipal
governments.
For more than 40 years, sustainability has been at the heart of who we are as a company. Positive sustainability impacts are
woven into our work, realized both internally and through our customers' application of our technology. Ensuring a sustainable
future is one of the defining issues of our generation, and current realities require even more accelerated focus and stepped-up
ambitions for our strategic approach and process for managing the material environmental, social, and governance (“ESG”)
aspects of our business. We believe our efforts will make us a better and more resilient company positioned to take on our most
pressing environmental and social issues while creating even greater benefits for the customers and stakeholders we serve in the
months and years to come.
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,
ranging from reduced greenhouse gas emissions (GHG) to reduced water use. Our representative products include equipment
that automates and enables increased precision within large industrial machines 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.
Our strategy incorporates a platform strategy, which we are executing in part by partnering to build ecosystems to better serve
our customers. 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 provide 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 Supply Chain”
solutions provide transportation companies with tools to enhance fuel efficiency, safety, transparency, and sustainability
through connected vehicles and fleets across the enterprise.
Software is a key element for 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 three-dimensional (“3D”) 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, data collection, and analysis for 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 perpetual or term licenses or as a
subscription and can be delivered for on-premise installation or in a hosted environment as Software as a Service (“SaaS”). Our
subscription-based offerings are also increasingly being extended into offerings that include both hardware and software,
providing a complete customer solution together with customer technology assurance as new generations of hardware become
available. We are extending these offerings to run across diverse environments, including cloud environments, and we will
continue to focus on delivering our differential value in providing domain-specific workflows and enhancing lifecycle
management across our target industries. 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.
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
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application, which enhances the productivity of the worker, asset, or work process. Position is provided through a number of
technologies including the U.S. 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.
Our global operations include major development, manufacturing, or logistics operations in the United States, the Netherlands,
India, Germany, Finland, Canada, New Zealand, the United Kingdom, and Sweden. Products are sold in more than 150
countries, through dealers, representatives, joint ventures, and other channels throughout the world, as well as direct sales to
end users.
Business Strategy
Our growth strategy is centered on multiple elements:
• Executing on our Connect and Scale strategy. We continue to focus on executing our multi-year platform strategy. This
strategy contains two elements. The first element, Connect, aims to connect more customer workflows, industry life
cycles, and solution offerings, so that we can continue to transform the way our customers work. This includes
integrating more of our customers’ data through cloud offerings and making more of our solutions available over time on
a subscription basis. Cloud enablement raises the bar with shared, on-demand services that empower network
participants to proactively contribute to organic value creation and delivery directly and with fewer intermediaries.
When end users interact on a shared, online platform, the overall value that is created increases as the number of end-
user participants increases. This network effect means that the willingness of developers, partners, or end users to
engage increases as the number of network participants grows, which further enhances the platform experience and end-
user value. The second element, Scale, aims to invest in the people, processes, and technologies that are necessary to
streamline and standardize our internal processes, provide a seamless experience for our customers as they engage with
our connected solutions, and enable us to continue to grow our business efficiently and effectively for many years into
the future.
• 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. We generally have 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.
• 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 and cloud 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 research and development (“R&D”) and acquisitions. We currently have over 1,000
unique patents reflective of our technology portfolio and deep domain knowledge to deliver specific, targeted solutions
quickly and cost-effectively 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.
• 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 distribution channels in over 85 countries, and sales are supported by our own offices located
in over 40 countries around the world.
• 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 Industrial, Caterpillar, and Nikon, as well as direct sales to end
users, which provide us with broad market reach and localization capabilities to effectively serve our markets.
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• 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, geographic presence, technology, products, and
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.
• Venture fund investments. In 2021, we announced a newly formed strategic venture fund. With this fund, we expect to
invest up to $200 million in early- to growth-stage companies that can accelerate innovation and effectively bring new
solutions to our customers and the industries that we serve and would give us an early, inside look and stake in emerging
business and technology solutions.
• Sustainability. The global economy is experiencing a fundamental shift toward sustainability driven through broad
stakeholder engagement, with a focus on decarbonization. Historically, through delivering productivity and efficiency
gains, Trimble products have delivered sustainability for our customers, and we envision more opportunities to deliver
expanded carbon reductions and other sustainability benefits, such as water management in agriculture and utilities, for
our customers through our Connect and Scale and the other strategies we have described.
Our focus on these growth drivers has led over time to growth in revenue and profitability and an increasingly diversified
business model. As our solutions have expanded, our go-to-market model has also evolved, with a balanced mix between
direct, distribution, and OEM customers, as well as an increasing number of enterprise-level customer relationships.
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 5 to the Consolidated Financial Statements in
this Annual Report on Form 10-K.
Buildings and Infrastructure
The Buildings and Infrastructure segment primarily serves customers working in architecture, engineering, construction, and
operations and maintenance. Within this segment, our most substantial product portfolios are focused on building construction
and civil engineering and construction.
Building Construction. Our building construction portfolio of solutions for the residential, commercial, and industrial building
industry spans the entire life cycle of a building and is used by construction owners, architects, designers, general contractors,
sub-contractors, and engineers. 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 construction owners including
software for 3D conceptual design and modeling; BIM software that is used in design, engineering, and construction; enterprise
resource planning, 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; project
coordination; and capital program planning and management. In addition, our Trimble 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, enhanced quality control, and
multiple sustainability benefits for our customers.
During 2021, we announced new developments in several of our software offerings, including: (i) the release of Tekla 2021
Structural BIM software solutions, which include new software features and enhancements to power data-driven, collaborative,
and connected workflows across all project phases, (ii) the introduction of Trimble Construction OneTM, a connected, cloud-
based construction management platform, (iii) the formation of a strategic partnership with Microsoft to drive digital
transformation across industries, and (iv) collaboration with One Click LCA to add an embodied carbon assessment tool into
Tekla Structures to help customers understand the carbon from the materials they use and help them optimize among early
design choices.
Civil Engineering and Construction. Our civil engineering and construction portfolio spans the lifecycle of civil infrastructure
assets from feasibility and capital budgeting, to planning and design, to construction, through to long-term operation and
maintenance. Our solutions serve the key industry stakeholders including the asset owners or clients, design engineers,
consultants, contractors, sub-contractors, and suppliers. Our technological suite is employed across the entire project life cycle
to improve productivity, reduce waste and re-work, including reduced carbon emissions, and enable more informed decision
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making through enhanced situational awareness, data flow, data-driven insights and decision support, 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; software for 3D design
and data sharing; 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 management of the construction process and for 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, to deploy a 3D model to machines and to track progress of work in
real-time, and to reduce re-work. By leveraging our technology, contractors gain greater insight into their operations helping
them to lower costs and improve productivity, worker safety, and asset utilization.
We maintain a joint venture with Caterpillar, Caterpillar-Trimble Control Technologies (“CTCT”), to develop the next
generation of advanced electronic guidance and control products for earth-moving 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. We also maintain a joint venture with Hilti, which focuses on the
joint development of measuring solutions for the building construction trades and the integration of data for construction
management.
During 2021, we announced a number of developments, including: (i) the availability of Trimble civil construction field
software globally on a subscription basis, giving contractors the ability to implement and scale Trimble's machine control and
construction surveying solutions more easily and with no large up-front costs, (ii) the availability of a new version of Trimble
Earthworks Grade Control Platform, which includes support for soil compactors, and (iii) the introduction of Siteworks SE
Starter Edition, which is an entry-level, easy-to-use construction surveying software solution.
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 SITECH
Technology dealers, which serve the civil construction industry, and BuildingPoint dealers, which serve the building
construction industry. We also sell many of our software solutions through our own direct sales force.
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. As we extend our software and services offerings to
cover the full set of construction life cycle management solutions used by construction owners, designers, and
construction companies, we increasingly compete with large established companies that offer similar systems across all
industries. 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 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
solutions replace less productive conventional methods of surveying, mapping, 2D or 3D modeling, monitoring, 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, monitoring, 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 efficiently and accurately log positions and descriptive
information about their assets, ensure the integrity and accuracy of GIS information, and ultimately enable better decision-
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making. Through a combination of wireless technologies and software solutions, fieldwork results are seamlessly delivered to
back-office GIS systems, while mobile workers can access relevant GIS information remotely. This capability provides
significant advantages to users, including improved productivity, accuracy, and access to information in the field.
During 2021, we announced a number of new developments, including: (i) the introduction of the Trimble R750 GNSS
Modular Receiver, a connected base station for use in civil construction, geospatial, and agricultural applications, (ii) the launch
of the Trimble DA2 GNSS receiver for the Trimble Catalyst® positioning service, (iii) the introduction of the MX50 mobile
mapping system for asset management and mapping, (iv) the introduction of the Trimble SX12 Scanning Total Station, which is
the next iteration of our 3D scanning total station, and (v) the introduction of the FOCUS 50 high-performance robotic total
station under the Spectra brand. As of 2021, we also offer our key software packages: Trimble Business Center for the office
and Trimble Access for the field both offered under term and perpetual licenses, which provides our customers flexible options.
We sell and distribute our products in the Geospatial segment primarily through a global network of independent dealers and
business partners. Major competitors in this segment are typically survey instrument companies that provide software-driven
3D measurement and imaging solutions. We compete principally on the basis of innovation, differentiated products, integrated
workflow solutions, domain expertise, service, quality, and geographic reach.
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, including autonomous steering
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. Our precision agriculture
solutions can assist farmers throughout every step of their farming process beginning with land preparation and continuing
through the planting, nutrient, 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, lower
carbon footprint, and improved soil health 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. Our
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. Our agricultural software enables farmers to make
more informed decisions leading to higher yields, better quality crops, increased profitability, and increased environmental
sustainability.
For many of our 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, we
provide 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 and is available in a variety of formats and accuracy levels, depending on the relevant application's
specific needs. Trimble 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 2021, we announced a number of new developments, including: (i) significant enhancements to the Trimble Centerpoint
RTX correction service, giving farmers the ease of use of the satellite-delivered corrections and RTK horizontal performance in
less time, and (ii) a collaboration with HORSCH focused on developing solutions that enable autonomy in agriculture with the
goal of building a future for autonomous machines and workflows in the industry.
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 Industrial and affiliated dealer networks. Our
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. Our 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.
Competitors in the agricultural market are vertically integrated farm equipment and implement companies, agricultural
instrumentation companies, and companies that provide agricultural software and services. We compete principally on the
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basis of robust performance, ease of use, domain expertise, customer support, price, interoperability, interconnectedness, and
the completeness of our solutions.
Transportation
Our transportation solutions provide capabilities for the long-haul trucking and freight shipper markets to create a connected
supply chain and integrate all forms of transportation, drivers, back-office management, shippers, and freight. We provide
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 truckload freight market.
In the transportation market, we offer a suite of solutions that provides comprehensive fleet and transportation management
systems, analytics, routing, mapping, reporting, and predictive modeling solutions to enable the transportation industry to
achieve greater overall operational efficiency, fleet utilization, including greater fuel efficiency and reduced carbon emissions,
and profitability while ensuring regulatory compliance. In addition to cloud-hosted solutions, we also integrate our applications
and services directly into the customer’s IT infrastructure.
The mobility solutions encompass route management, safety and compliance, end-to-end vehicle management, video
intelligence, and supply chain communications. The transportation management system 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 enterprise transportation management system automates business processes spanning the entire surface
transportation life cycle for shippers, carriers and intermediaries, delivering visibility, control, and decision support for the
intricate relationships and complex processes involved in the movement of freight. Our products also provide truck routing,
mileage, and mapping solutions, as well as a voice guided turn-by-turn navigation solution.
During 2021, we announced a number of new developments, including: (i) our eDriver Logs electronic logging device (“ELD”)
software was certified to comply with the technical requirements of the Canadian ELD mandate, (ii) technical enhancements
were made to ELDs to address U.S. markets, and (iii) a new strategic relationship with Procter & Gamble was formed to
enhance how shippers and carriers partner during the transportation procurement process.
The Transportation segment generally sells directly to end users and OEMs. Although sales cycles tend to be months long, the
products are difficult to replace once implemented. Competitors in this segment are typically companies that provide fleet
mobility services, transportation management software, and digital freight matching. We compete principally on the basis of
interoperability, domain expertise, customer support and service, price, innovative product offerings, quality, and the
completeness of our solutions.
Seasonality of Business
Construction equipment revenue, within our Buildings and Infrastructure segment, historically has been higher in early spring.
Our agricultural equipment revenue, within our Resources and Utilities segment, 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. However, overall, as a company, as a result of diversification of our businesses across segments and the increased
impact of software and subscription revenue, we are experiencing less seasonality. Changes in global macroeconomic
conditions could also impact the level of seasonality we experience. In 2021, COVID-19 and its variants, disrupted our normal
seasonality because of global supply chain constraints, parts and labor shortages, and strong demand for our offerings. We
anticipate these conditions will continue to impact our financial results during 2022.
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 primary 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 our products.
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Research and Development and Intellectual Property
We believe that our competitive position is maintained through the development and introduction of new products, including
software and services. Trimble delivers digital technologies that enhance the physical world by integrating and connecting
industry workflows, stakeholders, and data, while modernizing its interfaces and business models to make it easier for
customers to do business. Our platform investments allow us to extend our differentiation in positioning and sensing,
modeling, and analytics into emerging industry solutions and to drive ecosystem collaboration across our target industries. This
improves our value over the customer life cycle, while enhancing our leadership in software and services, which already
account for over 65% of our R&D investment. Our investments enable us to push the state-of-the-art in key technology areas
and to connect other leading technologies to solve customer problems in new and unique ways.
As part of our technology development practices, we actively establish and maintain our intellectual property rights through the
use of patents, copyrights, trademarks, and trade secret laws. We hold over 1,000 unique issued and enforceable patents
covering key technology areas, including precision GNSS, optical and inertial positioning solutions, artificial intelligence and
machine learning, IoT, cloud computing, laser scanning, 3D modeling, point cloud processing, augmented reality, and many
others. We actively manage the intellectual property used in the development, operations, and sales of our products and
services. We also own numerous trademarks and service marks that contribute to the identity and recognition of Trimble and
that of its global products and services.
Environmental, Social, and Governance
We recognize that we are living in a time of increasing urgency for action on sustainability, and we are intent on moving
quickly and harnessing our potential to address global challenges, including further developing our own strategic approach and
process for managing the material ESG aspects of our business. Inspired by our mission—“Transforming the Way the World
Works,”—and fueled by the dedication of our employees, we will work to build momentum and strive for continual
improvement and measurable progress.
We organize our ESG efforts around five pillars: (1) Solutions, (2) People, (3) Communities, (4) Environment, and (5)
Governance. Highlights of each of these pillars are discussed below. These pillars are reflective of our commitment to ESG
and are fundamentally embedded into our business and culture. We believe this approach creates value that benefits all our
stakeholders, including our employees, stockholders, customers, communities, and the world at large. For further information
on our five pillars and other ESG-related matters, see our Sustainability Report available on our website.
Solutions: Since 1978, our industry-specific solutions have helped customers achieve economic breakthroughs while enhancing
safety, boosting compliance, and reducing environmental impact—from feeding the growing global population and moving the
goods of commerce to next-generation building and infrastructure. Our solutions enable greater accuracy, reduction of rework,
and increased efficiency, thus yielding fuel savings.
People: As further described in the below Human Capital section, we are committed to providing every employee with the
opportunity to learn, grow, and excel in a respectful, collaborative, and inclusive workplace. We believe our diversity makes us
stronger and better able to solve complex problems for our customers. At the same time, we believe there are characteristics
that unite us, centered on a growth mindset.
Communities: We strive to contribute to our communities in a myriad of ways through the Trimble Foundation Fund, nonprofit
and non-governmental organization (“NGO”) partners, and other philanthropic efforts. The Trimble Foundation Fund is a
donor-advised fund that focuses its charitable giving across three areas—natural disaster recovery and relief and climate
resilience; female education and empowerment; and diversity, equity, and inclusion—while also supporting the philanthropic
efforts of our local offices. In addition, we invest in aspiring professionals via our Education and Outreach Programs that aim
to create a diverse next-gen workforce equipped and empowered to transform the construction, geospatial, and agriculture
industries. These programs do so by providing Trimble technology labs, visiting industry lecturers and mentors, academic
research funding, student scholarships, and other resources to promote professional skill development and career opportunities.
Environment: As a global company, we accept and embrace our responsibility to steward our environment and use our
ambition and know-how to solve looming issues that give rise to new opportunities. We have established a complete
greenhouse gas emissions inventory across Scope 1, 2, and 3, and we have set science-based targets that are currently under
review by the Science Based Targets Initiative. Our Green Team, an employee-led group, applies our passion for sustainability
to raising awareness and facilitating positive environmental changes within the company and in our communities.
Governance: We adhere to sound corporate governance principles, ethics, and compliance in all aspects of our business. We
continue to enhance our sustainability program management and monitoring. Our sustainability team works in conjunction
with our executive leadership and Board of Directors to fortify the governance and decision-making structure and provide
beneficial impacts to the business, the planet, and our stakeholders while mitigating elements of risk.
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Human Capital
Our culture reflects our guiding principles at work and is fundamental to sustaining our success. A company’s culture describes
how people behave in the work environment and is closely tied to leadership. At Trimble, we value being yourself and thriving
together; being intentional and humble; and being curious and solving problems. Our leaders inspire purpose and vision,
engage to draw out the best from each other, and strive to achieve meaningful results. This mindset shapes how we treat one
another and how we serve our customers, colleagues, and stockholders. These attributes serve as a common foundation across
the global organization and also adapt locally to diverse geographic and operational business models. Commitment to these
behaviors unites our employees.
In the technology space, intellectual property and know-how derived from employees fosters innovation and serves as a
competitive advantage. To continue producing the innovative technologies for which we are known, it is crucial that we
continue to attract, engage, and retain top talent. We strive to make Trimble a diverse, equitable, inclusive, and safe workplace
and provide opportunities for our employees to grow and develop in their careers, supported by competitive compensation,
benefits, and health and wellness programs, and by programs that build connections between our employees and their
communities.
At the end of 2021, we employed 11,931 full-time and part-time employees, the overwhelming majority of which were full-
time employees. Approximately 49%, 30%, 17%, and 4% of employees reside in North America, Europe, Asia-Pacific, and the
rest of the world, respectively. Our employees are working in over 200 locations in over 40 countries. Collectively, we speak
more than 45 different languages. We believe our diversity makes us stronger and better able to solve complex problems for
our customers.
Diversity, Equity, and Inclusion (“DEI”)
We value diversity in our workforce, including various cultures, backgrounds, ages, genders, races and ethnicities, nationalities,
sexual orientations, religions, people with different abilities, parents and caregivers, and many other characteristics, knowing
that it drives our best thinking. Our focus on diversity starts at the top. Four out of our eleven board members are female or
ethnically diverse, placing us in a select group of companies. In 2021, we activated many new initiatives focused on infusing
diversity, equity, and inclusion in the fabric of our connected culture. Our Vice President of Diversity, Equity, and Inclusion
and a DEI core team cascade objectives that are aligned with our Trimble values, while also encouraging local teams to focus
on aspects of diversity that foster meaningful inclusion and belonging. In quarterly business reviews, we review gender and
U.S. ethnicity demographics and trends for every business within Trimble, as well as region and business-led initiatives that
will lead toward future progress.
We have a number of employee resource networks that enhance our inclusive and diverse culture, including networks that
support women, caregivers, Black, Hispanic/Latinx and Indian professionals, veterans, employees with disabilities, and our
LGBTQ+ community. We are focused on measuring and increasing gender representation, as well as race and ethnic diversity
in high-impact roles such as front-line management, engineering, product management, and sales. We have provided increased
access to diversity and inclusion educational resources, training, assessments, articles, and other employee forums to help us
work together and more effectively across a variety of cultures globally.
We are committed to inspiring and attracting extraordinary and diverse talent. The hiring and retention of top talent is always a
strategic priority, and increasingly, a challenging one. In addition, our increasing focus on technologies, such as cloud and
autonomy, requires us to compete against leading companies in the technology sector. Colleges and universities remain an
important source of talented recruits. We aim to transform and re-invent the way Trimble attracts and hires employees to
increase diversity. Initiatives include modifications to our recruiting process to ensure the inclusion of diverse,
underrepresented candidates, developing relationships with universities with higher underrepresentation, creating diverse talent
pools, and increasing networking and referrals with diverse professional organizations.
In 2021, we created our Renew Returnship program that provides employment opportunities for those who have taken a break
in their careers to look after their families. We engaged in new relationships with the National Society of Black Engineers,
participated in national and local diversity career fairs, and sponsored new engagements focused on increasing gender and race/
ethnic diversity in the industries we serve through groups like Construction and Transportation Girl. We announced the Dr.
Gladys West Scholarship Program through the Trimble Foundation to honor a GPS technology pioneer and woman of color by
awarding scholars at three universities serving underrepresented students, and we also added new Trimble technology labs at
Minority Serving Institutions.
Compensation and Benefits
We believe people should be paid for the role they perform and their skills and experience, regardless of their gender, race, age,
or other personal characteristics. To deliver on that commitment, we benchmark and set pay ranges based on market data and
consider factors such as an employee’s role, their experience, their performance, and the region in which they live. We also
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regularly review our compensation practices to ensure our pay is fair and equitable. In addition to base salaries, certain roles
are eligible to participate in short-term and long-term incentive plans.
We offer market competitive benefit programs (which vary by country/region), which include health and wellness benefits, life
insurance and disability benefits, flexible savings accounts, paid time off, parental and family leave, employee support
programs, retirement plans, and an employee stock purchase plan. Other benefits include fertility, adoption, and surrogacy
education assistance; gender dysphoria, family and caregiver support; flexible work schedules; education assistance; and on-site
services such as health centers and fitness centers at some sites.
Talent Development
We are committed to providing every employee with the opportunity to learn, grow, and excel in a respectful and collaborative
workplace. Part of our people development mission is to create a culture of continuous learning and curiosity. We believe that
skills and abilities can be developed through training, relationships, and experiential learning. We are launching new career
growth and development initiatives to empower employees to identify skill development resources, and provide projects and
job opportunities to achieve their personal goals and full potential. We encourage employees to nurture a love of continuous
learning and a resilience that is essential for accomplishment.
We have a framework for people development that is employee-centric and evidence-based. Employees and managers have
frequent, casual conversations based upon employee survey data that drive engagement, career growth, and retention. These
surveys also include questions oriented around the Company’s mission, vision, values, and purpose, work environment,
diversity and inclusion, career development, and employee-manager relations. Our internal worldwide training portal,
Learn.Trimble.com, provides a set of resources that is easy to access anytime and anywhere, with a range of focus areas from
new employees to existing employee development to manager development.
Building Connections
We believe that building connections between our employees, their families, and our communities creates a more meaningful,
fulfilling, and enjoyable workplace. Since our employees are passionate about a variety of causes, our company giving and
volunteering programs support and encourage employees by engaging with those causes. In our offices around the world, our
employee-led committees select local organizations to support, often in the form of grants and employee fundraising. We also
frequently collaborate with these organizations on volunteer activities for our employees. Lastly, we encourage and provide our
employees with a day of service as a benefit to help our communities.
Our Trimble Foundation aligns international philanthropic efforts by giving back to the communities where Trimble does
business and helping those in need. We do this by supporting three focus areas, disaster and climate resilience; female
education and empowerment; and diversity, equity, and inclusion, as well as by supporting the philanthropic efforts of our local
offices.
Health, Safety, and Wellness
The success of our business is fundamentally connected to the well-being of our people. Accordingly, we are committed to the
health, safety, and wellness of our employees. We provide our employees and their families with access to a variety of
innovative, flexible, and convenient health and wellness programs, including benefits that provide protection and security so
they can have peace of mind concerning events that may require time away from work or that impact their financial well-being;
that support their physical and mental health by providing tools and resources to help them improve or maintain their health
status and encourage engagement in healthy behaviors; and that offer choice where possible so they can customize their benefits
to meet their needs and the needs of their families.
In response to the COVID-19 pandemic, we implemented changes that we determined were in the best interest of our
employees, as well as the communities in which we operate, and which comply with government regulations. This includes
having the vast majority of our employees work from home, while implementing additional safety measures for employees
continuing critical on-site work.
Available Information
This Annual Report 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 our website 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, GAAP to non-GAAP reconciliations, as well as our Sustainability report, are also
found on this website. Information contained on our website is not part of this Annual Report on Form 10-K.
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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
The URLs in this Annual Report on Form 10-K are intended to be inactive textual references only. They are not intended to be
active hyperlinks to websites. The information on such websites, even if it might be accessible through a hyperlink resulting
from the URLs or referenced herein, is not and shall not be deemed to be incorporated into this Annual Report on Form 10-K.
No assurance or representation is given as to the suitability or reliability for any purpose whatsoever of any information on such
websites.
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Information about our Executive Officers
The names, ages, and positions of our executive officers as of February 22, 2022, are as follows:
Name
Steve W. Berglund
Robert G. Painter
David G. Barnes
Ronald J. Bisio
James A. Kirkland
Manolis E. Kotzabasakis
James Langley
Darryl R. Matthews
Peter Large
Julie A. Shepard
Age
70
50
60
53
62
62
47
54
52
64
Position
Executive Chairman
President and Chief Executive Officer
Chief Financial Officer
Senior Vice President
Senior Vice President, General Counsel and Secretary
Senior Vice President
Senior Vice President
Senior Vice President
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, he was president of
Spectra Precision, a group within Spectra Physics AB. His 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. Mr. Berglund attended the University of Oslo and the University of Minnesota, where he received a Bachelor
of Science in chemical engineering. He received an MBA from the University of Rochester. He 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 our chief financial officer, where he was responsible for Trimble’s worldwide finance operations. In
2015, he 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 our 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 our construction services division. He joined Trimble in 2006
and assumed leadership of Trimble’s business development, leading all acquisition and corporate strategy activities. Prior to
joining Trimble, he served in a variety of management and finance positions at Cenveo, Rapt Inc., Bain & Company, Whole
Foods Market, and Kraft Foods. Mr. Painter earned a Bachelor of Science in Finance from West Virginia University and an
MBA in Business from Harvard University.
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, he 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., he 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, he held financial leadership positions at Western Union, Coors, and YUM Brands. He began his career as a strategy
consultant at Bain & Company. Mr. Barnes received a Bachelor of Science in Applied Mathematics from Yale University and
an MBA in Finance and Marketing from the University of Chicago. Mr. Barnes also serves as a board member and chair of the
Audit Committee of CSG Systems International.
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. Mr. Bisio earned an MBA from the
University of Denver, a Master of Regional Planning from the University of Massachusetts, and a Bachelor of Science in
Cartography from Salem State University in Salem, Massachusetts.
James A. Kirkland—James Kirkland currently serves as Trimble’s senior vice president, general counsel, and secretary. He
joined Trimble 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. He also served as senior vice president of spectrum
15
development and general counsel at Clearwire Technologies, Inc. He began his career in 1984 as an associate at Mintz Levin
and in 1992 he was promoted to partner. Mr. Kirkland received a Bachelor of Arts from Georgetown University in
Washington, D.C. and a J.D. from Harvard Law School.
Manolis E. Kotzabasakis—Manolis Kotzabasakis currently serves as a senior vice president responsible for Trimble’s
Construction Enterprise Solutions. He was appointed to this role in April 2021. He joined Trimble as part of the Viewpoint
acquisition in 2018, where he served as the Chairman and CEO until 2015. Between the years of 1997 and 2015, he was part of
the Aspen Technology executive team, a publicly traded global software company serving the Oil & Gas and Chemical
Industries, where he served in various roles, including as an executive vice president for Products (2010 to 2015), senior vice
president Sales and Strategy (2005 to 2010), and other senior roles. Mr. Kotzabasakis received a Bachelor of Science in
Chemical Engineering from the National Technical University of Athens, in Greece, and a PhD in Chemical Engineering from
the University of Manchester, in England.
James Langley—James Langley currently serves as a senior vice president responsible for Trimble’s 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, he 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, he 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. He 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, he 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, he served as general manager of Nufarm Agriculture Inc.,
the Canadian subsidiary of Nufarm Limited. He 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. Mr. Matthews
received an Honors Bachelor of Science in Agriculture majoring in Horticultural Science and Business from the University of
Guelph in Ontario, Canada. He is also a member of the Association of Equipment Manufacturers.
Peter Large—Peter Large was appointed in July 2021 as senior vice president responsible for Trimble’s construction field
solutions businesses, which includes Trimble’s civil engineering, construction field systems and software, as well as Trimble’s
joint ventures with Caterpillar and Hilti. He re-joined Trimble in December 2020 as vice president responsible for Trimble’s
construction field solutions businesses. He previously served in a number of leadership roles within the company between 1996
and 2014, including vice president of channel development; as general manager for the mapping, GIS and utilities business; and
in a variety of product management, marketing and sales management roles. Prior to re-joining Trimble, he served as a research
solutions strategist with Boeing’s Digital Solutions and Analytics business in 2019 to 2020. While pursuing a doctoral degree,
he formed AirSpatial LLC in 2015 along with other consulting projects with Inmarsat, then in 2016 he accepted the role as
director until 2018. He began his career in civil engineering with Jackson Group and as a surveyor with Parkman Consulting
Engineers. Mr. Large holds an Ed.D. from Oklahoma State University, a Master of Science in Management from the Stanford
University Graduate School of Business, a Postgraduate Diploma in Strategy and Innovation from the University of Oxford,
and a Bachelor of Science (Honors) in Surveying and Mapping Science from the University of Newcastle Upon Tyne.
Julie A. Shepard—Julie Shepard currently serves as Trimble’s 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, she served
as vice president of finance and corporate controller at Quantum Corporation. She 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. She began her career at Price Waterhouse and is a Certified Public Accountant. Ms.
Shepard received a Bachelor of Science in Accounting from California State University. She is a member of the AICPA,
Financial Executives Institute, and the Institute of Management Accounting, where she currently serves on the Sustainable
Business Management - Global Task Force.
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Item 1A. Risk Factors
RISKS AND UNCERTAINTIES
You should carefully consider the following risk factors, in addition to the other information contained in this Annual Report on
Form 10-K and in any other documents to which we refer you in this Annual Report on Form 10-K, before purchasing our
securities. The risks and uncertainties described below are not the only ones we face.
Risks related to our business
Our financial condition and results of operations have been and may continue to be impacted by the COVID-19 pandemic
Our overall performance depends upon domestic and worldwide economic and political conditions. The global spread of
COVID-19 continues to create volatility, uncertainty, and economic disruption. The pandemic caused a slowdown in
worldwide economic activity and is currently causing disruptions to global supply chains.
The COVID-19 pandemic continues to have widespread, rapidly evolving, and unpredictable impacts on global society,
economies, financial markets, and business practices. Despite the efforts to contain the pandemic, new variants of the virus are
causing additional outbreaks. The COVID-19 pandemic has impacted and may continue to impact our business operations,
including our employees, customers, partners, and communities, and there is substantial uncertainty in the nature and degree of
its continued effects over time.
The extent to which COVID-19 impacts our business, operations, and financial results will depend on numerous evolving
factors that we are not able to accurately predict, including:
• the continuing economic impacts of the pandemic;
• governmental, business, and individuals’ actions that have been and continue to be taken in response to the pandemic;
• the effect on our customers and customer demand for and ability to pay for our products and services;
• restrictions or disruptions to transportation, including reduced availability of ground or air transport;
• continued disruption of the supply chain for our products;
• our ability to comply with financial covenants, including maintaining required leverage ratios, which could result in debt
becoming due and payable prior to its stated maturity; and
• changes in our effective tax rate due to effects of COVID-19 on our geographic mix of earnings.
We have experienced disruption in our supply chain as a result of the effects of COVID-19 and related events, and are
subject to ongoing supply chain risks, which adversely affect our revenue and results of operations
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 contract
manufacturers and suppliers involves risks, including the potential inability to obtain products or components to meet
customers’ delivery requirements, reduced control over pricing and delivery schedules and discontinuation of or increased
prices for certain components. We have experienced disruption in our supply chain as a result of the effects of COVID-19
related events and their impact on our suppliers and on international trade in general, leading to shortfalls in available
components we need to make products as well as increased costs to obtain components, to make products, and to transport
components and products. Some suppliers have prioritized the orders of larger customers and are focusing their investments in
additional capacity on higher volume components. We are experiencing extended delivery times for certain components of our
hardware products and increased freight costs. As a result, we are making binding commitments with longer lead times and
procuring components at higher prices, which may impact our flexibility to adapt to changing market conditions and product
demand. These disruptions have had an adverse effect on our ability to meet customer demand and have resulted in delays in
shipping products to customers and dealers. The severity of the disruptions is continuously changing so that the impact on our
ability to meet demand for particular products varies over time, which creates substantial uncertainties in forecasting our
financial results. We expect these disruptions to impact our financial results.
Future disruptions could occur as a result of any number of events, including, but not limited to, the continuing impacts of the
COVID-19 pandemic, increases in wages that drive up prices or labor, the imposition of new regulations, quotas or embargoes
on components, a scarcity of, or significant increase in the price of, required 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 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 results of operations.
Lastly, due to supply chain issues, we may accumulate excess inventories if we inaccurately forecast demand for our products.
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We operate globally and are subject to significant risks in many jurisdictions
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;
• differing regional responses and restrictions related to global pandemics, like the COVID-19 pandemic; and
• uncertainty regarding social, political, immigration, and trade policies in the U.S. and abroad.
There is an 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 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. Given the geopolitical climate, there
is uncertainty about the trade policies, treaties, government regulations, and tariffs that could apply to trade. If there were to be
a 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. 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.
Risks associated with engaging in international business include:
• longer payment cycles and difficulties in enforcing agreements and collecting receivables through certain foreign legal
systems;
• difficulties and costs of staffing and managing international operations;
• differing local customer product preferences and requirements than our U.S. markets;
• difficulties protecting or procuring intellectual property rights; and
• compliance with changes in local laws, including those relating to privacy, labor and local content.
These factors or any combination of these factors could adversely affect our business, financial condition, and results of
operations.
If we are unable to effectively integrate, streamline and 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 future growth 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:
• 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.
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We have increasingly diversified the nature of our businesses both organically and by acquisition. As a result, an increasing
amount of our business involves business models that require managerial techniques and skill sets that are different from those
required to manage our historical core businesses.
Pursuant to our Connect and Scale strategy, we are investing substantial resources in integrating our product offerings and
transitioning our businesses to common core services and systems in order to achieve economies of scale, simplify our
operations, and improve the customer experience. These efforts may result in disruptions to our operations, which could have
an adverse effect on our customers, may cost more than we anticipate increasing our expenses, and take longer than planned.
These factors or a combination of these factors could have an adverse impact on our business, financial condition, and results of
operations.
Changes in our software and subscription businesses may adversely impact our operations and financial results
An increasing portion of our revenue is generated through software maintenance and subscription revenue, which includes
Software as a Service (“SaaS”) and new subscription services for integrated solutions. 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 three years. This shift reflects both an increasing use of subscription models for new
products, and a transition for some existing products from perpetual license sales and distribution in favor of SaaS or other
subscription offerings.
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.
Customer satisfaction with our services is affected by a variety of factors, including but not limited to security, reliability,
performance, concerns about data privacy, current subscription terms, customer preference, and industry adoption. If customers
do not renew their contracts for our products, our maintenance and subscription revenue will decline, and our financial results
will suffer.
Our subscription models provide 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 and industry
adoption, 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 market and
support our subscription offerings, our business, financial condition, and results of operations could be adversely impacted.
We continually re-evaluate our software licensing programs and subscription programs, including specific license models,
delivery methods, and terms and conditions. Changes to our licensing programs and subscription programs, including the
introduction of new subscription services for integrated solutions that include hardware, the timing of the release of
enhancements, upgrades, maintenance releases, the term of the contract, discounts, and promotions, could impact the timing of
the recognition of revenue for our products, and adversely affect our cash flow, operating results, and financial condition.
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 Industrial. 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 Industrial are complex and
multifaceted and are likely to evolve over time based upon the changing business needs and objectives of the parties. Evolution
of our respective business strategies and diversification of product portfolios may lead to increased competition with our
strategic allies, placing additional pressure on these relationships. Since these strategic relationships contribute to significant
ongoing business in certain of our important markets, changes in these relationships could adversely affect our sales. In
addition, we utilize dealer networks, including those affiliated with some of our strategic allies such as Caterpillar and CNH
Industrial to market, sell, and service many of our products.
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 subscription programs for integrated solutions that include hardware, software maintenance, and other
recurring services, may make it more difficult to introduce those products to end users and delay end-user adoption, which
could result in lower revenue.
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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, financial condition, and results of operations. Lastly, 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.
Investing in and integrating new acquisitions or divesting businesses could be costly, place a significant strain on our
management systems and resources, or fail to deliver expected outcomes, which could adversely impact our results of
operations
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
• adverse 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 generally accepted accounting principles (“GAAP”) requires us to make
significant judgments and assumptions. Changes in business conditions or in the prospects or results of operations of the
acquired business could require adjustments to the valuation of these assets resulting in impairments that would adversely affect
our results. 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 business, financial condition, and results of operations.
From time to time we have divested businesses, and we expect to do so in the future. Any such divestiture may result in:
• a disruption of our business;
• reduced synergies, including the loss of scale or key employees;
• impairment of customer relationships; and
• reductions in the breadth of our product offerings.
Divestitures may adversely impact our results if we are unable to offset the dilutive impacts from the loss of revenue associated
with the divested products or businesses, or mitigate overhead costs allocated to those businesses. We could also experience
higher than expected transaction costs and write-offs of significant amounts of goodwill.
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We face substantial competition in our markets, which could decrease our revenue and growth rates or impair our financial
condition and results of operations
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 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. In our software and subscription services businesses, we face competition from a group of large,
well-established companies, particularly in the areas of design, enterprise resource planning (“ERP”), and collaboration and
project management solutions. 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 competitive 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 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.
If we are unable to attract and retain qualified personnel, our business, operating results, financial condition, and cash
flows could be harmed
Our continued success depends, in part, on our ability to hire and retain qualified personnel and to advance our corporate
strategy, and preserve the key aspects of our corporate culture. Because our future success is dependent on our ability to
continue to enhance and introduce new products, we are particularly dependent on our ability to hire and retain qualified
engineers, including in areas of technology such as GNSS, software programming, information systems, and data analytics. In
addition, to increase revenues, we will be required to increase the size and productivity of our sales and channel management
groups. Competition for qualified employees in our major locations is intense. The COVID-19 pandemic has also heavily
impacted the environment for attracting and managing employees, and our failure to successfully manage these changes and
navigate transitions such as return to office could harm our ability to attract and retain the best talent. Our inability to hire and
retain qualified management and skilled personnel, particularly engineers, salespeople, and key executive management, could
disrupt our development efforts, sales results, business relationships, and our ability to execute our business plan and strategy
on a timely basis and could materially and adversely affect our operating results, financial condition, and cash flows.
Equity grants are a critical component of our current compensation programs. If we fail to grant equity competitively, we may
have difficulty attracting and retaining critical employees. In addition, because of our sales structure, cash, and equity incentive
compensation plans, we may be at increased risk of losing employees at certain times. For example, the retention value of our
compensation plans decreases after the payment of periodic bonuses or the vesting of equity awards.
Risks related to our technology and products
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.
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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.
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, cybercriminals, or cyber terrorists may attempt to or
succeed in penetrating our network security and our website. The discovery of wide-scale cybersecurity intrusions into U.S.
government and private company computer networks by alleged Russian state actors and the mobilization of large-scale
cybercrime actors using ransomware and other techniques underscore the ongoing threat posed by sophisticated private and
foreign state-sponsored attacks. 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. 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 adversely 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.
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An increasing portion of our revenue comes from SaaS solutions and other hosted services in which we store, retrieve,
communicate, and manage data that 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
adversely impact our business, financial condition, and results of operations.
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. This has been and may
continue to be negatively impacted by the global supply chain shortage. 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 results of operations could be adversely affected.
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 an adverse effect on our business,
financial condition, and results of operations.
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.
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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 types of 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 business, financial
condition, and results of operations.
We are dependent on the availability and unimpaired use of allocated bands within the radio frequency spectrum; 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 adverse impacts on our customers, both of which could reduce demand for our
products. For example, in 2020 the FCC approved a proposal by a private party to repurpose spectrum adjacent to the
authorized GNSS bands for terrestrial wireless operations throughout the United States. The company has opposed and
continues to oppose this proposal, along with a wide range of participants in commercial and governmental sectors that rely on
the use of GNSS in their critical activities. The FCC’s action is subject to further review as well as potential legislative action.
If the FCC’s action continues in effect and terrestrial operations are implemented in the affected spectrum, these operations
could create harmful interference to GNSS receivers in proximity to 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, financial
condition, and results of operations.
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, some 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 an adverse effect on our business, financial condition, and results of
operations.
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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, China’s BeiDou, and the European Galileo GNSS
Systems. Other countries, such as India, are in the process of creating their own GNSS systems, and we either have developed
or will develop products that use GNSS signals from these systems. 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 are also 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
our products using the U.S. GPS system, which could harm our business, financial condition, and results of operations.
Regulatory risks
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,
and other anti-corruption laws, that have 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 results of operations.
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.
We are subject to evolving privacy laws in the United States and other jurisdictions that are subject to potentially differing
interpretations and which could adversely impact our business and require that we incur substantial costs
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. New privacy laws have come into effect in Brazil and New
Zealand in 2020 and in China in 2021, and revisions of privacy laws are currently pending in countries like Canada and India.
Some countries are considering or have passed legislation that requires local storage and processing of data, including
geospatial data, which could impact our ability to deliver cloud-based solutions in an efficient manner. The U.S. and European
Union have not yet managed to replace the EU-U.S. Privacy Shield as a basis for data transfers from the EU to the U.S.
International transfers of personal data present ongoing compliance challenges and complicate our business transactions and
operations. In addition, the California Consumer Privacy Act (the “CCPA”), which took effect in January 2020, was amended
by the California Privacy Rights Act (“the “CPRA”) and will take full effect in January 2023. The CCPA and CPRA, among
other things, gives 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. Other U.S. states
and the U.S. Congress have introduced, and some states like Virginia and Colorado have enacted in 2021, data privacy
legislation, which may impact our business. Data privacy legislation, amendments and revisions to existing data privacy
legislation, and other developments impacting data privacy and data protection may require us to modify our data processing
25
practices and policies, increase the complexity of providing our products and services, and cause us to incur substantial costs in
an effort to comply. Failure to comply may lead to significant fines and business interruption.
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. As
we develop and enhance features which support automated and autonomous operation of our products, we are increasingly
subject to functional safety regulation. CE certification is required for GNSS receivers and data communications products,
which must also conform to the European harmonized GNSS receiver requirements and the radio equipment directive to be sold
in the European community. In the future, the U.S., European, or other governmental authorities may propose GPS receiver
testing and certification for compliance with published GPS signal interface or other specifications. 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 and other national authorities
for frequency-band usage. 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. An inability to obtain
required certifications in a timely manner could adversely affect our ability to bring our products to market and harm our
customer relationships. Failure to comply with evolving requirements could result in fines and limitations on sales of our
products.
Financial and tax risks
Our debt could adversely affect our cash flow and prevent us from fulfilling our financial obligations
At the end of 2021, our total debt was comprised primarily of senior notes of approximately $1.3 billion. When our senior
notes mature, we will have to utilize 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.
Our outstanding indebtedness could have other important consequences, such as:
• 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; and
• limiting our flexibility in planning for, or reacting to changes and opportunities in our industry, which may place us at a
competitive disadvantage.
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 portion of our outstanding debt has interest rates that 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. 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.
26
Changes in our effective tax rate may reduce our net income in future periods
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 primarily subject to 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:
• the jurisdictions in which profits are determined to be earned and taxed;
• the resolution of issues arising from tax audits with the 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; 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.
The jurisdictions 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 impact our financial results.
In October 2021, the Organization of Economic Cooperation and Development (“OECD”) announced that many world leaders
tentatively signed on to a framework that imposes a minimum tax of 15% to certain multinational enterprises. We will continue
to monitor and assess how this may impact our financial results if and when implemented.
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 could be adversely affected.
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 the majority of
our sales are transacted 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 local operating expenses, procurement of raw materials from sources outside the
U.S., and overseas capital expenditures. We also conduct certain investing and financing activities in local currencies. Our
foreign exchange forward contracts reduce, but do not eliminate, the impact of currency exchange rate movements; therefore,
changes in exchange rates could harm our financial condition and results of operations.
Risks related to ownership of our stock
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 2021, our stock price ranged
from $65.91 to $95.72. 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;
27
• political, economic, or social uncertainty;
• global pandemics, like the COVID-19 pandemic; 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 could adversely affect the market price of our common stock.
Our annual and quarterly performance may fluctuate, which could adversely 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:
• changes in market demand;
• competitive market conditions;
• supply chain disruptions;
• 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;
• pricing of products;
• changes in the U.S. or foreign policies on taxes, trade, or spending;
• regional responses and restrictions related to global pandemics, like the COVID-19 pandemic; 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 adversely impact our results of operations.
Due in part to the buying patterns of our customers, a portion of our hardware 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.
General risk factors
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 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 financial condition and results of
operations.
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. 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 may adversely impact regional economies, cause work stoppages, or result in limitations on business
transactions with the affected 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, financial condition, and results of operations.
28
Future public health crises and epidemics could impact our international operations and sales
Our results of operations could be adversely affected to the extent that future pandemics, similar to COVID-19 or any other
epidemic, harm any significant market where we do business. Contagious disease epidemics or global pandemics could also
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.
Damage to our reputation could significantly harm our businesses, competitive position, and prospects for growth
Our ability to attract and retain investors, customers, and employees could be adversely affected by damage to our reputation
resulting from various sources, including environmental, social, and governance (“ESG”) related issues; employee misconduct,
litigation, or regulatory outcomes; failure to deliver minimum standards of service and quality; compliance failures; unethical
behavior; unintended breach of confidential information; and the activities of our customers and commercial partners.
In addition, we are committed to aligning our purpose, culture, and corporate strategy with sustainability. Any perceived
change in our dedication to these commitments could harm our reputation and could adversely impact our business. Our
disclosures on these matters, and standards we set for ourselves or a failure to meet these standards, may influence our
reputation and the value of our brand.
For example, we have elected to share publicly our commitments and ongoing efforts in our Sustainability Report, where we
address the importance of ESG matters to our stakeholders and our Company. Our business may face increased scrutiny related
to these activities, including from the investment community, and our failure to achieve progress in these areas on a timely
basis, or at all, could adversely affect our reputation, business, financial performance, and growth.
Climate change may have an impact on our business
While we seek to mitigate our business risks associated with climate change by establishing robust environmental programs and
partnering with organizations who are also focused on mitigating their own climate-related risks, we recognize that there are
inherent climate-related risks wherever business is conducted. Any of our primary locations may be vulnerable to the adverse
effects of climate change. The recent wildfires in Colorado occurred in close proximity to our offices in Westminster,
Colorado. Our California headquarters has historically experienced, and is projected to continue to experience, climate-related
events at an increasing frequency including drought, water scarcity, heat waves, wildfires and resultant air quality impacts and
power shutoffs associated with wildfire prevention. Furthermore, it is more difficult to mitigate the impact of these events on
our employees while they work from home as a result of the COVID-19 pandemic. Changing market dynamics, global policy
developments, and the increasing frequency and impact of extreme weather events on critical infrastructure in the U.S. and
elsewhere have the potential to disrupt our business, the business of our third-party suppliers, and the business of our customers,
and may cause us to experience higher attrition, losses, and additional costs to maintain or resume operations.
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, refer to Note 7 of this
Annual Report on Form 10-K.
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 in 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.
29
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
PART II
Securities
Company Stock Performance
Our common stock trades on NASDAQ under the symbol “TRMB.” The following graph compares the cumulative five-year
total return provided stockholders on our common stock relative to the cumulative total returns of the S&P 500 Index, the S&P
500 Information Technology Index, the S&P 500 Industrials Index, and the NASDAQ Composite 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, 2016, and its relative performance is tracked through December 31, 2021.
Trimble was added to the S&P 500 during 2021. We also added the S&P 500 Industrials Index, as both S&P 500 Information
Technology and S&P 500 Industrials provide a better comparison with Trimble’s stock than either index individually.
Stock Repurchase Program
The following table provides information relating to our purchase of equity securities for the fourth quarter of 2021:
Total Number of
Shares Purchased
Average Price
Paid per Share
Total Number of
Shares Purchased as
Part of Publicly
Announced Program
Maximum
Approximate Dollar
Value of Shares that
May Yet Be
Purchased Under
the Program
October 2, 2021 – November 5, 2021
November 6, 2021 – December 3, 2021
December 4, 2021 – December 31, 2021
Total
— $
459,372 $
— $
459,372
—
87.08
—
— $
459,372 $
— $
459,372
649,995,416
610,000,115
610,000,115
30
In August 2021, our Board of Directors approved a new share repurchase program (“2021 Stock Repurchase Program”)
authorizing up to $750.0 million in repurchases of our common stock. Under the 2021 Stock Repurchase Program, the share
repurchase authorization does not have an expiration date and supersedes and replaces the $600.0 million share repurchase
authorization approved by our Board of Directors in November 2017 (“2017 Stock Repurchase Program”), of which $50.7
million was remaining and has been cancelled.
Under the 2021 Stock Repurchase Program, we may repurchase shares from time to time, subject to business and market
conditions and other investment opportunities, through open market transactions, privately-negotiated transactions, accelerated
stock repurchase plans, or by other means. The timing and actual number of any shares repurchased will depend on a variety of
factors, including market conditions, our share price, other available uses of capital, applicable legal requirements, and other
factors. The 2021 Stock Repurchase Program may be suspended, modified, or discontinued at any time at without prior notice.
During 2021, we repurchased approximately 2.1 million shares of common stock in open market purchases under our 2017 and
2021 Stock Repurchase Programs, at an average price of $85.75 per share, for a total of $180.0 million. At the end of 2021, the
2021 Stock Repurchase Program had remaining authorized funds of $610.0 million.
As of February 18, 2022, there were approximately 520 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. Reserved
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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
Annual Report on Form 10-K generally discusses 2021 and 2020 items and year-to-year comparisons between 2021 and 2020.
Discussions of 2019 items and year-to-year comparisons between 2020 and 2019 that are not included in this Annual Report on
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 our Annual Report on Form 10-K, for the year ended January 1, 2021.
EXECUTIVE LEVEL OVERVIEW
We are 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 architecture,
building construction, civil engineering, geospatial, survey and mapping, agriculture, natural resources, utilities, transportation,
and government. Our representative customers include construction owners, contractors, engineering and construction firms,
surveying companies, farmers and agricultural companies, energy and utility companies, trucking companies, and state, federal,
and municipal governments. Further information on our business is presented in Part I, Item 1, “Business”.
Our growth strategy is centered on multiple elements:
• Executing on our Connect and Scale strategy;
• Increasing focus on software and services;
• Focus on attractive markets with significant growth and profitability potential;
• Domain knowledge and technological innovation that benefit a diverse customer base;
• Geographic expansion with localization strategy;
• Optimized go-to-market strategies to best access our markets;
• Strategic acquisitions;
• Venture fund investments; and
• Sustainability.
Our focus on these growth drivers has led over time to growth in revenue and profitability and an increasingly diversified
business model. We continue to experience a shift toward a more significant mix of recurring revenue contracts, as
demonstrated by our success in driving annualized recurring revenue (“ARR”) growth of 9% year-over-year at the end of 2021.
Excluding the impact of foreign currency and acquisitions and divestitures, ARR organic growth was 12%. This shift has
positively impacted our revenue mix and growth over time and is leading to improved visibility in our businesses. Our
software, recurring revenue, and services represented 55% of total revenue for 2021. As our solutions have expanded, our go-
to-market model has also evolved with a balanced mix between direct, distribution, and OEM customers as well as an
increasing number of enterprise level customer relationships. Additionally, in August 2021, we announced a newly formed
strategic venture fund. Through this fund, we expect to invest up to $200 million in early- to growth-stage companies that can
accelerate innovation and effectively bring new solutions to our customers and industry.
For a full definition of ARR as used in this discussion and analysis, refer to the “Supplemental Disclosure of Non-GAAP
Financial Measures and Annualized Recurring Revenue” later in this item 7.
Impact of COVID-19 and supply chain constraints on our business
COVID-19 and variant impacts, especially related to global supply chain disruptions and parts and labor shortages, and
increased worldwide demand for certain components, continued to impact our business and operations. We are experiencing
extended delivery times for certain components of our hardware products and increased freight costs. As a result, we are
making binding commitments with longer lead times and procuring components at higher prices, which may impact our
flexibility to adapt to changing market conditions and product demand. Currently, we expect these challenging supply chain
conditions to persist in the near term. Therefore, we will continue to experience delays in shipping our products and increased
costs, which may reduce our revenue and gross margin and continue to increase our backlog. Our 2021 results of operations
reflect significant revenue improvement as the overall impact of COVID-19 was less pronounced. As a result of COVID-19,
the year-to-year comparison of 2020 to 2021 reflects significant distortions in growth rates as our business rebounded in 2021.
See “1A. Risk Factors” for further discussion of the possible impact of the COVID-19 pandemic and its resulting effects on our
business.
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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 1 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 or measurement of our uncertain tax positions would result in the recognition of a tax benefit or an
additional charge to the tax provision.
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 we believe
it is more likely than not such assets will not be realized.
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 account for business combinations using the acquisition method of accounting whereby certain identifiable assets and
liabilities of the acquired business and any noncontrolling interest in the acquiree are recorded at their estimated fair values as
of the acquisition date. Any purchase consideration in excess of the estimated fair values of the net assets acquired is recorded
as goodwill. Acquisition-related expenses and related restructuring costs are expensed as incurred.
When determining the fair values of certain assets acquired, liabilities assumed, and noncontrolling interests in the acquiree, we
make significant estimates and assumptions, especially concerning intangible assets. Critical estimates when 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.
We evaluate goodwill on an annual basis or more frequently if indicators of potential impairment exist. We utilize either a
qualitative or quantitative approach to assess the likelihood of impairment on the first day of the fourth quarter. When
performing the qualitative approach, we consider macroeconomic conditions, industry and market considerations, overall
financial performance, and other relevant events and factors that may impact the reporting units. When performing the
quantitative approach, we compare the reporting unit’s carrying amount, including goodwill, to the reporting unit's fair value.
The estimation of a reporting unit's fair value involves using estimates and assumptions, including expected future operating
performance using risk-adjusted discount rates. If the reporting unit's carrying amount exceeds its fair value, an impairment
loss is recognized.
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Intangible assets acquired individually, with a group of other assets, or in a business combination are recorded at fair value.
Our intangible assets are amortized over the period of estimated benefit using the straight-line method over the estimated useful
life, which ranges from three to ten years and has a weighted-average useful life of approximately seven years. We write off
fully amortized intangible assets when those assets are no longer used.
We review intangible assets 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 on
assumptions about expected future operating performance.
RESULTS OF OPERATIONS
Overview
The following table shows revenue by category, gross margin and gross margin as a percentage of revenue, operating income
and operating income as a percentage of revenue, diluted earnings per share, and annualized recurring revenue compared for the
periods indicated:
2021
2020
Dollar Change % Change
(In millions)
Revenue:
Product
Service
Subscription
Total revenue
Gross margin
Gross margin as a % of revenue
Operating income
Operating income as a % of revenue
Diluted earnings per share
$ 2,247.5
649.4
762.2
$ 3,659.1
2,034.7
$ 1,828.0
644.8
674.9
$ 3,147.7
1,754.9
55.6 %
561.0
15.3 %
1.94
$
$
55.8 %
419.8
13.3 %
1.55
Non-GAAP revenue (1)
Non-GAAP operating income (1)
Non-GAAP operating income as a % of Non-GAAP revenue (1)
Non-GAAP diluted earnings per share (1)
$ 3,659.4
857.0
23.4 %
2.66
$
$ 3,152.0
719.6
22.8 %
2.23
$
Annualized Recurring Revenue (“ARR”) (1)
$ 1,409.1
$ 1,295.8
$
$
$
$
$
$
419.5
4.6
87.3
511.4
279.8
141.2
0.39
507.4
137.4
0.43
113.3
23 %
1 %
13 %
16 %
16 %
34 %
25 %
16 %
19 %
19 %
9 %
(1) Refer to “Supplemental Disclosure of Non-GAAP Financial Measures and Annualized Recurring Revenue” of this Annual
Report on Form 10-K for definitions.
Basis of Presentation
We use a 52–53 week fiscal year ending on the Friday nearest to December 31, which for 2021 was December 31, 2021. Both
2021 and 2020 were 52–week years.
Year 2021 Compared with Year 2020
Revenue
Despite supply constraints and increases in our backlog, revenue increased due to strong demand for our hardware and related
software, as compared with reduced demand due to the impacts of COVID-19 lockdowns in the prior year, and strong recovery
in 2021 in markets across major regions. Growth in subscription sales in many of our software businesses continued to remain
strong. Price increases, which went into effect in the second half of the year, and reduced discounting had a slighter impact on
revenue growth for the year.
Product revenue increased due to strong hardware and related software sales in Geospatial, Resources and Utilities, and
Buildings and Infrastructure. To a lesser extent, Transportation sales also contributed to growth. Service revenue was
relatively flat, and subscription revenue increased primarily due to strong growth in Buildings and Infrastructure, and to a lesser
extent, Resources and Utilities and Geospatial, slightly offset by a decrease in Transportation.
34
During 2021, sales to customers in North America represented 51%; Europe represented 31%; Asia Pacific represented 12%;
and the rest of world represented 6% of our total revenue.
No single customer accounted for 10% or more of our total revenue in 2021 and 2020. No single customer accounted for 10%
or more of our accounts receivable at the end of 2021 and 2020.
Gross Margin
Gross margins varied due to several factors including product mix, customer pricing, distribution channel, and product costs.
Gross margin increased primarily due to strong revenue growth. Gross margin as a percentage of total revenue shows a slight
decrease mainly due to increased mix of hardware sales and increased supply chain costs, offset by price increases and reduced
discounting as well as lower intangibles amortization.
Operating Income
Operating income and operating income as a percentage of total revenue increased primarily due to strong revenue growth in
Buildings and Infrastructure, Geospatial, and Resources and Utilities, partially offset by a decrease in Transportation, as well as
relative operating expense containment in all segments.
Research and Development, Sales and Marketing, and General and Administrative Expenses
The following table shows research and development (“R&D”), sales and marketing (“S&M”), and general and administrative
(“G&A”) expense along with these expenses as a percentage of revenue for the periods indicated:
(In millions)
Research and development
Percentage of revenue
Sales and marketing
Percentage of revenue
General and administrative
Percentage of revenue
Total
2021
2020
Dollar Change
% Change
$
$
536.6
14.7 %
506.8
13.9 %
369.1
10.1 %
$
475.9
15.1 %
467.0
14.8 %
300.9
9.6 %
60.7
39.8
68.2
$
1,412.5
$
1,243.8
$
168.7
13 %
9 %
23 %
14 %
As a result of COVID-19 impacts, the year-to-year comparison of 2020 to 2021 reflects distortions in expense growth rates as
our expenses normalized in 2021, with the biggest impact due to higher incentive compensation, including bonuses and stock-
based compensation, particularly in G&A.
R&D expense increased primarily due to higher compensation expense, including incentive compensation.
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.
S&M expense increased primarily due to higher compensation expense, including incentive compensation and commissions.
G&A expense increased primarily due to higher compensation expense, including incentive compensation, and to a lesser
extent, higher consulting and legal fees.
Amortization of Purchased Intangible Assets
The following table shows amortization of purchased intangible assets for the periods indicated:
(In millions)
Cost of sales
Operating expenses
Total amortization expense of purchased intangibles
2021
2020
Dollar Change
% Change
$
$
87.7
50.9
138.6
$
$
92.3
65.5
157.8
$
$
(4.6)
(14.6)
(19.2)
(5) %
(22) %
(12) %
Total amortization expense of purchased intangibles as
a percentage of revenue
4 %
5 %
35
In 2021, total amortization of purchased intangibles decreased primarily due to the expiration of prior year acquisitions'
amortization.
Non-Operating Income (Expense), Net
The following table shows non-operating expense, net for the periods indicated:
(In millions)
Interest expense, net
Income from equity method investments, net
Other income, net
Total non-operating income (expense), net
2021
2020
Dollar Change
% Change
$
$
(65.4) $
37.7
41.3
13.6 $
(77.6) $
39.4
13.4
(24.8) $
12.2
(1.7)
27.9
38.4
(16) %
(4) %
208 %
(155) %
In 2021, non-operating income increased primarily due to recognition of gains from the sale of businesses included in Other
income, net, and to a lesser extent, lower interest costs associated with a decrease in our outstanding debt.
Income Tax Provision
In December 2021, due to a change in the Netherlands tax law, the statutory tax rate was further increased from 25.0% to 25.8%
effective January 1, 2022. As a result, we recorded a one-time tax benefit of $14.4 million in 2021 due to the revaluation of the
Netherlands deferred tax assets.
Previously in December 2020, also as a result of a Netherlands tax law change that increased Netherlands statutory tax rate
from 21.7% to 25.0%, effective January 1, 2021, we recorded a one-time tax benefit of $64.0 million in 2020 due to the
revaluation of the Netherlands deferred tax assets.
Our effective income tax rates for 2021 and 2020 were 14.2% and 1.1%, respectively. The effective income tax rate in 2021
increased compared to 2020 primarily due to the smaller one-time tax benefit recorded in 2021 relating to the revaluation of the
Netherlands deferred tax assets mentioned above.
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 and 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, refer to Note 5 of this Annual Report on Form 10-K.
36
The following table shows a breakdown of revenue and operating income by segment for the periods indicated:
2021
2020
Dollar Change % Change
(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
$ 1,422.7
$ 1,231.0
39 %
$
$
411.7
28.9 %
39 %
338.1
27.5 %
Geospatial
Segment revenue
Segment revenue as a percent of total revenue
Segment operating income
Segment operating income as a percent of segment revenue
$
828.9
$
650.5
23 %
$
$
244.1
29.4 %
21 %
184.4
28.3 %
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
$
771.3
$
630.0
21 %
$
$
264.0
34.2 %
20 %
221.0
35.1 %
Transportation
Segment revenue
Segment revenue as a percent of total revenue
Segment operating income
Segment operating income as a percent of segment revenue
$
636.5
$
640.5
$
17 %
43.4
6.8 %
$
20 %
50.1
7.8 %
$
$
$
$
$
$
$
$
191.7
16 %
73.6
22 %
178.4
27 %
59.7
32 %
141.3
22 %
43.0
19 %
(4.0)
(1) %
(6.7)
(13) %
The following table shows a reconciliation of our consolidated segment operating income to our consolidated income before
income taxes for the periods indicated:
(In millions)
Consolidated segment operating income
Unallocated general corporate expenses
Purchase accounting adjustments
Acquisition / divestiture items
Stock-based compensation / deferred compensation
Restructuring and other costs
Consolidated operating income
Total non-operating income (expense), net
Consolidated income before taxes
Buildings and Infrastructure
2021
2020
963.2 $
(106.2)
(134.5)
(21.8)
(128.6)
(11.1)
561.0
13.6
574.6 $
793.6
(74.0)
(156.6)
(21.4)
(90.4)
(31.4)
419.8
(24.8)
395.0
$
$
Revenue increased primarily due to strong demand for our civil construction hardware and related software and from strong
recovery in markets across major regions, including strong residential construction and infrastructure spend. Additionally,
higher subscription revenue in our software businesses benefited from the continued cumulative effect of conversions from
perpetual licenses to subscription offerings for existing and new customers, as well as improvements in our customer churn rate.
Segment operating income and operating income as a percentage of revenue increased primarily due to higher revenue,
consistent gross margin, and operating cost containment. Increased supply chain costs for hardware products were wholly
mitigated by reduced discounting and customer price increases.
37
Geospatial
Revenue increased primarily due to strong demand for geospatial survey products, with strong recovery in markets across major
regions, including strong residential construction, infrastructure, and utilities spend. Competitive products, including the R12i,
helped win business.
Segment operating income and operating income as a percentage of revenue increased primarily due to higher revenue and
operating cost containment, partially offset by lower gross margin. Gross margin was down primarily due to product mix and
increased supply chain costs for hardware products, partially offset by reduced discounting and customer price increases.
Resources and Utilities
Revenue increased primarily due to continued agriculture business strength in the reseller and OEM channels in markets across
major regions. Strong market fundamentals, including favorable commodity prices, continued to fuel growth.
Segment operating income increased primarily due to higher revenue and operating expense containment. Gross margin was
down due to product mix and higher supply chain costs for hardware products, partially offset by reduced discounting and
customer price increases. Operating income as a percentage of revenue was down due to lower gross margin.
Transportation
Revenue decreased slightly due to the impact of a divestiture, largely offset by continued growth in enterprise software sales.
Enterprise revenue continued to experience subscription revenue growth as the business transitions from a perpetual software
license model. Mobility sales were down due to reduced subscriber counts, partially offset by higher hardware shipments for
the year.
Segment operating income and operating income as a percentage of revenue decreased slightly, primarily due to the revenue
decline and a slight increase in operating expense.
LIQUIDITY AND CAPITAL RESOURCES
At the End of Year
(In millions)
Cash and cash equivalents
As a percentage of total assets
Principal balance of outstanding debt
Years
(In millions)
Cash provided by operating activities
Cash used in investing activities
Cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase in cash and cash equivalents
Operating Activities
$
$
$
$
2021
2020
Dollar Change
% Change
$
$
$
325.7
4.6 %
1,300.0
2021
750.5
(203.5)
(447.7)
237.7
3.5 %
1,555.9
$
$
88.0
37 %
(255.9)
(16) %
2020
Dollar Change
% Change
$
672.0
(231.8)
(400.3)
78.5
28.3
(47.4)
(19.9)
12 %
(12) %
12 %
(231) %
(11.3)
88.0
$
8.6
48.5
The increase in cash provided by operating activities was primarily driven by higher net income adjusted for non-cash items,
and higher account payables, partially offset by higher inventory purchases.
Investing Activities
The decrease in cash used in investing activities was primarily due to higher net proceeds from the sale of businesses and sale
of property and equipment during 2021, partially offset by slightly higher acquisition spending in 2021. The current year
included the AgileAssets acquisition compared to the prior year, which included the Kuebix acquisition.
Financing Activities
The increase in cash used in financing activities was primarily driven by an increase in repurchases of common stock, partially
offset by a decrease in debt repayments, net of debt proceeds.
38
Cash and Cash Equivalents
We believe that our cash and cash equivalents and borrowings, along with cash provided by operations will be sufficient in the
foreseeable future to meet our anticipated operating cash needs, expenditures related to our Connect and Scale strategy, debt
service, and any stock repurchases under the stock repurchase program. For debt refinancing, we anticipate we will have
readily accessible capital markets in order to secure appropriate funding.
Our material cash requirements include the following contractual and other obligations and cash needs:
Leases
We have operating leases primarily for certain of our major facilities including corporate offices, research and development
facilities, and manufacturing facilities. Operating leases represent undiscounted lease payments and include short-term leases.
At the end of 2021, we had fixed lease payment obligations of $190.7 million, with $50.5 million payable within the next 12
months. Refer to Note 7 of this Annual Report on Form 10-K for additional information regarding our leases.
Tax Payable
At the end of 2021, we had income taxes payable of $101.6 million, with $47.1 million payable within the next 12 months. The
amount payable within the next 12 months includes $6.7 million representing a one-time transition tax liability as a result of the
2017 Tax Cuts and Jobs Act (the “Tax Act”).
In addition, we have unrecognized tax benefits of $63.3 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. Refer to Note
11 of this Annual Report on Form 10-K for additional information regarding our taxes.
Other Purchase Obligations and Commitments
Purchase obligations and commitments primarily relate to investments in our platform associated with our Connect and Scale
strategy and non-cancellable inventory commitments, which increased due to the extension of lead times and the growth of our
hardware business. At the end of 2021, we had operating purchase obligations and commitments of $710.8 million, with
$446.6 million payable within the next 12 months. Refer to Note 8 of this Annual Report on Form 10-K for additional
information regarding our purchase obligations and commitments. Other than the items discussed above, we do not have any
off-balance sheet financing arrangements or liabilities.
Debt
At the end of 2021, we had outstanding floating and fixed-rate senior notes with varying maturities for an aggregate principal
amount of approximately $1.3 billion. Future interest payments total $264.2 million, with $60.8 million payable within the next
12 months.
During 2021, we repaid $251.0 million of debt, including the full repayment of our term loan, net of borrowings. Refer to Note
6 of this Annual Report on Form 10-K for additional information regarding our debt.
Stock Repurchase Program
We have a 2021 Stock Repurchase Program authorized by our Board of Directors, that allows us to repurchase shares from time
to time, subject to business and market conditions and other investment opportunities, through open market transactions,
privately-negotiated transactions, accelerated stock repurchase plans, or by other means for up to $750 million. The 2021 Stock
Repurchase Program does not obligate us to acquire any specific number of shares. Refer to Note 13 of this Annual Report on
Form 10-K for additional information regarding our 2021 Stock Repurchase Program.
EFFECT OF NEW ACCOUNTING PRONOUNCEMENTS
The impact of recent accounting pronouncements is disclosed in Note 1 of this Annual Report on Form 10-K.
39
SUPPLEMENTAL DISCLOSURE OF NON-GAAP FINANCIAL MEASURES AND ANNUALIZED RECURRING
REVENUE
To supplement our consolidated financial information, we included non-GAAP financial measures, which are not meant to be
considered in isolation or as a substitute for comparable GAAP because we believe non-GAAP financial measures provide
useful information to investors and others in understanding our “core operating performance”, which excludes the effect of non-
cash items and certain variable charges not expected to recur, not meaningful in comparison to our past operating performance
or not reflective of ongoing financial results. Lastly, we believe that our core operating performance offers a supplemental
measure for period-to-period comparisons and can be used to evaluate our historical and prospective financial performance, as
well as our performance relative to competitors. In addition to providing non-GAAP financial measures, we disclose
Annualized Recurring Revenue (“ARR”) to give the investors supplementary indicators of the value of our current recurring
revenue contracts.
ARR represents the estimated annualized value of recurring revenue, including subscription, maintenance and support revenue,
and term license contracts for the quarter. ARR is calculated by adding the portion of the contract value of all of our term
licenses attributable to the current quarter to our non-GAAP recurring revenue for the current quarter and dividing that sum by
the number of days in the quarter and then multiplying that quotient by 365. ARR should be viewed independently of revenue
and deferred revenue as it is a performance measure and is not intended to be combined with or to replace either of those items.
The non-GAAP financial measures, definitions, and explanations to the adjustments to comparable GAAP measures are
included below:
(In millions, except per share data)
REVENUE:
GAAP revenue:
Purchase accounting adjustments
(A)
Non-GAAP revenue:
GROSS MARGIN:
GAAP gross margin:
Purchase accounting adjustments
Acquisition / divestiture items
Stock-based compensation / deferred
compensation
Restructuring and other costs
Non-GAAP gross margin:
OPERATING EXPENSES:
GAAP operating expenses:
Purchase accounting adjustments
Acquisition / divestiture items
Stock-based compensation / deferred
compensation
Restructuring and other costs
Non-GAAP operating expenses:
OPERATING INCOME:
GAAP operating income:
Purchase accounting adjustments
Acquisition / divestiture items
Stock-based compensation / deferred
compensation
Restructuring and other costs
Non-GAAP operating income:
NON-OPERATING INCOME (EXPENSE),
NET:
GAAP non-operating income (expense), net:
Acquisition / divestiture items
Deferred compensation
Non-GAAP non-operating expense, net:
(A)
(B)
(C)
(D)
(A)
(B)
(C)
(D)
(A)
(B)
(C)
(D)
(B)
(C)
2021
Years
2020
2019
Dollar
Amount
% of
Revenue
Dollar
Amount
% of
Revenue
Dollar
Amount
% of
Revenue
$
3,659.1
$
$
$
$
0.3
3,659.4
2,034.7
88.0
—
9.8
0.2
2,132.7
1,473.7
(46.5)
(21.8)
(118.8)
(10.9)
$
3,147.7
4.3
3,152.0
$
$
$
3,264.3
7.0
3,271.3
55.6 % $
58.3 % $
40.3 % $
1,754.9
96.6
1.7
7.2
1.2
1,861.6
1,335.1
(60.0)
(19.7)
(83.2)
(30.2)
55.8 % $
59.1 % $
42.4 % $
1,780.9
101.1
—
5.9
1.1
1,889.0
1,405.0
(67.4)
(20.5)
(75.3)
(26.8)
54.6 %
57.7 %
43.0 %
$
1,275.7
34.9 % $
1,142.0
36.2 % $
1,215.0
37.1 %
15.3 % $
23.4 % $
$
$
419.8
156.6
21.4
90.4
31.4
719.6
(24.8)
(12.2)
(7.5)
(44.5)
13.3 % $
22.8 % $
$
$
375.9
168.5
20.5
81.2
27.9
674.0
(31.1)
(12.1)
(6.3)
(49.5)
11.5 %
20.6 %
$
$
$
$
561.0
134.5
21.8
128.6
11.1
857.0
13.6
(42.1)
(6.1)
(34.6)
40
INCOME TAX PROVISION (BENEFIT):
GAAP income tax (benefit) provision:
Non-GAAP items tax effected
Difference in GAAP and Non-GAAP
tax rate
IP restructuring and tax law change
impacts
Non-GAAP income tax provision:
NET INCOME:
GAAP net income attributable to Trimble
Inc.:
Purchase accounting adjustments
Acquisition / divestiture items
Stock-based compensation / deferred
compensation
$
$
$
(E)
(F)
(G)
(A)
(B)
(C)
Restructuring and other costs
Non-GAAP tax adjustments
(D)
(E) - (G)
81.8
41.4
7.5
14.4
145.1
492.7
134.5
(20.3)
122.5
11.1
(63.3)
GAAP and
Non-GAAP
Tax Rate %
(H)
14.2 % $
17.6 % $
$
4.4
48.5
(4.9)
64.0
112.0
389.9
156.6
9.2
82.9
31.4
(107.6)
Non-GAAP net income attributable to
Trimble Inc.:
DILUTED NET INCOME PER SHARE:
GAAP diluted net income per share
attributable to Trimble Inc.:
Purchase accounting adjustments
Acquisition / divestiture items
Stock-based compensation / deferred
compensation
Restructuring and other costs
Non-GAAP tax adjustments
(E) - (G)
Non-GAAP diluted net income per share
attributable to Trimble Inc.:
ADJUSTED EBITDA:
OPERATING INCOME:
$
677.2
$
562.4
$
(A)
(B)
(C)
(D)
1.94
0.53
(0.08)
0.48
0.04
(0.25)
$
1.55
0.62
0.04
0.33
0.12
(0.43)
GAAP and
Non-GAAP
Tax Rate %
(H)
GAAP and
Non-GAAP
Tax Rate %
(H)
1.1 % $
(169.7)
(49.2) %
19.5 %
16.6 % $
$
$
$
29.6
55.6
206.3
121.8
514.3
168.5
8.4
74.9
27.9
(291.5)
502.5
2.03
0.67
0.03
0.30
0.11
(1.15)
$
2.66
$
2.23
$
1.99
GAAP net income attributable to Trimble
Inc.:
Non-operating income (expense), net, income
tax provision (benefit), and net gain
attributable to noncontrolling interests
GAAP operating income:
Purchase accounting adjustments
Acquisition / divestiture items
Stock-based compensation / deferred
compensation
Restructuring and other costs
(A)
(B)
(C)
(D)
Non-GAAP operating income:
Depreciation expense
Income from equity method
investments, net
Adjusted EBITDA:
$
492.7
$
389.9
$
514.3
68.3
561.0
134.5
21.8
128.6
11.1
857.0
42.2
37.7
936.9
$
$
29.9
419.8
156.6
21.4
90.4
31.4
719.6
39.7
39.4
798.7
(138.4)
375.9
168.5
20.5
81.2
27.9
674.0
39.4
35.8
749.2
$
25.3 % $
$
25.6 % $
22.9 %
41
Non-GAAP Definitions
Non-GAAP revenue
We define Non-GAAP revenue as GAAP revenue, excluding the effects of purchase accounting adjustments. We believe this
measure helps investors understand the performance of our business including acquisitions, as non-GAAP revenue excludes the
effects of certain acquired deferred revenue that was written down to fair value in purchase accounting. Management believes
that excluding fair value purchase accounting adjustments more closely correlates with the ordinary and ongoing course of the
acquired company’s operations and facilitates analysis of revenue growth and trends.
Non-GAAP gross margin
We define Non-GAAP gross margin as GAAP gross margin, excluding the effects of purchase accounting adjustments,
acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe
our investors benefit by understanding our non-GAAP gross margin as a way of understanding how product mix, pricing
decisions, and manufacturing costs influence our business.
Non-GAAP operating expenses
We define Non-GAAP operating expenses as GAAP operating expenses, excluding the effects of purchase accounting
adjustments, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs.
We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue.
Non-GAAP operating income
We define Non-GAAP operating income as GAAP operating income, excluding the effects of purchase accounting adjustments,
acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring, and other costs. We believe
our investors benefit by understanding our non-GAAP operating income trends, which are driven by revenue, gross margin, and
spending.
Non-GAAP non-operating expense, net
We define Non-GAAP non-operating expenses, net as GAAP non-operating expenses, net, excluding acquisition/divestiture
items and deferred compensation. We believe this measure helps investors evaluate our non-operating expense trends.
Non-GAAP income tax provision
We define Non-GAAP income tax provision as GAAP income tax provision, excluding charges and benefits such as net
deferred tax impacts resulting from the non-U.S. intercompany transfer of intellectual property, tax law changes, and significant
one-time reserve releases upon the statute of limitations expirations. We believe this measure helps investors because it
provides for consistent treatment of excluded items in our non-GAAP presentation and a difference in the GAAP and non-
GAAP tax rates.
Non-GAAP net income
We define Non-GAAP net income as GAAP net income, excluding the effects of purchase accounting adjustments, acquisition/
divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. This measure
provides a supplemental view of net income trends, which are driven by non-GAAP income before taxes and our non-GAAP
tax rate.
Non-GAAP diluted net income per share
We defined Non-GAAP diluted net income per share as GAAP diluted net income per share, excluding the effects of purchase
accounting adjustments, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP
tax adjustments. We believe our investors benefit by understanding our non-GAAP operating performance as reflected in a per
share calculation as a way of measuring non-GAAP operating performance by ownership in the company.
Adjusted EBITDA
We define Adjusted EBITDA as non-GAAP operating income plus depreciation expense and income from equity method
investments, net. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA is not intended to purport to
be an alternative to net income or operating income as a measure of operating performance or cash flow from operating
activities as a measure of liquidity. Adjusted EBITDA is a performance measure that we believe offers a useful view of the
overall operations of our business because it facilitates operating performance comparisons by removing potential differences
42
caused by variations unrelated to operating performance, such as capital structures (interest expense), income taxes,
depreciation and amortization expenses.
Explanations of Non-GAAP adjustments
(A)
Purchase accounting adjustments. Purchase accounting adjustments consist of the following:
(i)
(ii)
Acquired deferred revenue adjustment. We adopted ASU 2021-08 in the fourth quarter of 2021 for all
acquisitions occurring in 2021, which requires the application of ASC 606, Revenue from Contracts with
Customers, to recognize and measure contract assets and contract liabilities on the acquisition date. For
acquisitions occurring prior to 2021, non-GAAP revenue excludes the adjustment to our revenue as a result of
measuring the contract liability at fair value on the acquisition date.
Amortization of acquired capitalized commissions. Purchase accounting generally requires entities to eliminate
capitalized sales commissions balances as of the acquisition date. Non-GAAP operating expenses exclude the
adjustments that eliminate the capitalized sales commissions. For acquisitions occurring prior to 2021, non-
GAAP operating expenses exclude the adjustment of acquired capitalized commissions amortization.
(iii) Amortization of purchased intangible assets. Non-GAAP gross margin and operating expenses exclude the
amortization of purchased intangible assets, which primarily represents technology and/or customer
relationships already developed.
(B)
(C)
Acquisition / divestiture items. Non-GAAP gross margin and operating expenses exclude acquisition costs consisting 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. Non- GAAP non-operating expense, net, exclude unusual one-time
acquisition/divestiture charges and/or divestiture gains/losses. The costs that have been excluded from the non-GAAP
measures are costs specific to particular acquisitions. As a result, these are one-time costs that vary significantly in
amount and timing and are not indicative of our core operating performance.
Stock-based compensation / deferred compensation. Non-GAAP gross margin and operating expenses exclude stock-
based compensation and income or expense associated with movement in our non-qualified deferred compensation plan
liabilities. Changes in non-qualified deferred compensation plan assets, included in non-operating expense, net, offset
the income or expense in the plan liabilities.
(D) Restructuring and other costs. Non- GAAP gross margin and operating expenses exclude restructuring and other exit
costs comprised of termination benefits related to reductions in employee headcount, including executive severance
agreements, the closure or exit of facilities, and cancellation of certain contracts. In addition, other costs include
COVID-19 expenses incurred as a direct impact from the COVID-19 virus pandemic, such as cancellation fees of trade
shows due to public safety issues, additional charges for disinfecting facilities, and personal protective equipment.
(E) Non-GAAP items tax effected. This amount adjusts the provision for income taxes to reflect the effect of the non-GAAP
items (A) - (D) on non-GAAP net income. This amount excludes the GAAP tax rate impact resulting from the non-U.S.
intercompany transfer of intellectual property, which is separately disclosed in item (G).
(F)
Difference in GAAP and Non-GAAP tax rate. This amount represents the difference between the GAAP and non-
GAAP tax rates applied to the non-GAAP operating income plus the non-GAAP non-operating expense, net. The GAAP
tax rate used for this calculation excludes the net deferred tax impacts resulting from the non-U.S. intercompany transfer
of intellectual property, which is separately disclosed in item (G). The non-GAAP tax rate excludes charges and benefits
such as net deferred tax impacts resulting from a non-U.S. intercompany transfer of intellectual property and significant
one-time reserve releases upon statute of limitations expirations.
(G)
IP restructuring and tax law change impacts. These amounts represent net deferred tax impacts resulting from a non-
U.S. intercompany transfer of intellectual property, consistent with tax law changes, including tax rates changes, and our
international business operations.
(H) 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.
43
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 includes a five-year revolving loan facility with a maturity date of May 2023. We also have four 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, Euros, or in certain other agreed currencies as described in Note 6 of this Annual Report on
Form 10‑K.
At the end of 2021, we had one £55.0 million, two $75.0 million, and one €100.0 million revolving credit facilities, which are
uncommitted. At the end of 2021, we do not have any outstanding balance on our revolving credit facilities.
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. In addition, volatile market
conditions arising from the COVID-19 pandemic could result in changes in exchange rates.
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 Euro. 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 2021, revenue and operating income were favorably impacted by foreign currency exchange rates by
$43.8 million and $4.3 million.
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 intercompany receivables and payables, primarily denominated in Euro, New
Zealand Dollars, Canadian Dollars, British Pound, and Brazilian Real. 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 2021 and 2020 are summarized as
follows:
(In millions)
Forward contracts:
Purchased
Sold
At the End of 2021
At the End of 2020
Nominal
Amount
Fair
Value
Nominal
Amount
Fair
Value
$
$
(107.5) $
183.6 $
0.1 $
(0.2) $
(99.4) $
52.0 $
0.9
(0.5)
44
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 (PCAOB ID: 42)
46
47
48
49
50
51
71
45
Item 8. Financial Statements and Supplementary Data
CONSOLIDATED BALANCE SHEETS
At the End of 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 8)
Stockholders’ equity:
2021
2020
$
325.7 $
624.8
363.3
136.8
1,450.6
233.2
141.0
3,981.5
506.6
502.0
284.7
237.7
620.5
301.7
121.5
1,281.4
251.8
128.9
3,876.5
580.1
510.2
248.0
$
$
7,099.6 $
6,876.9
— $
207.3
231.0
548.8
201.5
1,188.6
1,293.2
83.0
263.1
54.5
121.4
151.1
255.8
143.2
166.8
560.5
185.0
1,311.3
1,291.4
53.3
300.3
62.2
109.2
150.6
3,154.9
3,278.3
Preferred stock, $0.001 par value; 3.0 shares authorized; none issued and outstanding
Common stock, $0.001 par value; 360.0 shares authorized; 250.9 and 250.8 shares issued
and outstanding at the end of 2021 and 2020
Additional paid-in-capital
Retained earnings
Accumulated other comprehensive loss
Total Trimble Inc. stockholders’ equity
Noncontrolling interests
Total stockholders' equity
—
0.3
1,935.6
2,170.5
(161.7)
3,944.7
—
3,944.7
Total liabilities and stockholders’ equity
$
7,099.6 $
See accompanying Notes to the Consolidated Financial Statements.
—
0.3
1,801.7
1,893.4
(98.5)
3,596.9
1.7
3,598.6
6,876.9
46
CONSOLIDATED STATEMENTS OF INCOME
(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 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.
Earnings per share attributable to Trimble Inc.:
Basic
Diluted
Shares used in calculating earnings per share:
Basic
Diluted
2021
2020
2019
$
2,247.5 $
649.4
762.2
3,659.1
1,828.0 $
644.8
674.9
3,147.7
1,090.1
229.9
216.7
87.7
1,624.4
2,034.7
536.6
506.8
369.1
10.3
50.9
1,473.7
561.0
(65.4)
37.7
41.3
13.6
574.6
81.8
492.8
0.1
492.7 $
1.96 $
1.94 $
251.4
254.3
855.0
234.5
211.0
92.3
1,392.8
1,754.9
475.9
467.0
300.9
25.8
65.5
1,335.1
419.8
(77.6)
39.4
13.4
(24.8)
395.0
4.4
390.6
0.7
389.9 $
1.56 $
1.55 $
250.5
252.3
$
$
$
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
2.03
250.8
252.9
See accompanying Notes to the Consolidated Financial Statements.
47
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
2021
2020
2019
(In millions)
Net income
$
492.8 $
390.6 $
Foreign currency translation adjustments, net of tax $1.0 in 2021, $0.5
in 2020, and $0.1 in 2019
Net unrealized gain (loss), net of tax
Comprehensive income
Comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to Trimble Inc.
$
(64.0)
0.8
429.6
0.1
429.5 $
77.1
1.2
468.9
0.7
468.2 $
514.5
10.3
(1.0)
523.8
0.2
523.6
See accompanying Notes to the Consolidated Financial Statements.
48
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Common stock
Shares
Amount
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
Noncontrolling
Interest
Total
(In millions)
Balance at the end of 2018
250.9 $
0.3 $
1,591.9 $ 1,268.3 $
(186.1) $
2,674.4 $
0.4 $ 2,674.8
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
—
—
3.7
(4.7)
—
—
—
—
—
(0.1)
—
—
—
—
514.3
—
59.8
(30.7)
(30.6)
(149.1)
72.5
(0.8)
—
—
—
9.3
—
—
—
—
514.3
9.3
523.6
29.1
(179.8)
72.5
(0.8)
0.2
—
—
—
—
0.8
514.5
9.3
523.8
29.1
(179.8)
72.5
—
Balance at the end of 2019
249.9 $
0.2 $
1,692.8 $ 1,602.8 $
(176.8) $
3,119.0 $
1.4 $ 3,120.4
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
—
—
2.8
(1.9)
—
—
—
—
0.1
—
—
—
—
—
389.9
—
40.6
(13.0)
81.3
—
(30.7)
(68.6)
—
—
—
78.3
—
—
—
—
389.9
78.3
468.2
10.0
(81.6)
81.3
—
0.7
—
—
—
—
390.6
78.3
468.9
10.0
(81.6)
81.3
(0.4)
(0.4)
Balance at the end of 2020
250.8 $
0.3 $
1,801.7 $ 1,893.4 $
(98.5) $
3,596.9 $
1.7 $ 3,598.6
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
492.7
—
—
—
—
(63.2)
2.2
(2.1)
—
—
—
—
—
—
36.2
(51.3)
(15.7)
(164.3)
112.8
0.6
—
—
—
—
—
—
492.7
(63.2)
429.5
(15.1)
(180.0)
112.8
0.1
—
—
—
—
492.8
(63.2)
429.6
(15.1)
(180.0)
112.8
0.6
(1.8)
(1.2)
Balance at the end of 2021
250.9 $
0.3 $
1,935.6 $ 2,170.5 $
(161.7) $
3,944.7 $
— $ 3,944.7
See accompanying Notes to the Consolidated Financial Statements.
49
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating
activities:
2021
2020
2019
$
492.8 $
390.6 $
514.5
Depreciation expense
Amortization expense
Deferred income taxes
Stock-based compensation
Divestitures (gain) loss, net
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
Purchases of property and equipment
Net proceeds from sale of businesses
Net proceeds from sale of property and equipment
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 used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of year
Supplemental cash flow disclosure:
Cash paid for income taxes, net
Cash paid for interest
41.3
138.6
(26.9)
122.6
(43.9)
19.2
(9.0)
(72.9)
(30.2)
60.3
54.1
27.4
(22.9)
750.5
(236.1)
(46.1)
67.3
20.8
(9.4)
(203.5)
39.7
157.8
(52.9)
83.0
(12.2)
42.4
(14.0)
(5.0)
2.5
(15.7)
34.9
65.7
(44.8)
672.0
(201.9)
(56.8)
27.5
0.4
(1.0)
(231.8)
(15.1)
(180.0)
198.9
(449.9)
(1.6)
(447.7)
(11.3)
88.0
237.7
325.7 $
10.0
(81.6)
1,173.8
(1,486.0)
(16.5)
(400.3)
8.6
48.5
189.2
237.7 $
39.4
167.8
(220.2)
75.0
(12.4)
10.1
(96.0)
(21.3)
11.0
14.5
(46.4)
148.2
0.8
585.0
(220.8)
(69.0)
0.5
0.4
13.6
(275.3)
29.1
(179.8)
1,195.4
(1,322.9)
(14.4)
(292.6)
(0.4)
16.7
172.5
189.2
98.3 $
61.8 $
59.0 $
71.8 $
63.1
79.2
$
$
$
See accompanying Notes to the Consolidated Financial Statements.
50
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES
Trimble Inc., (“we” or “our” or “us”) is incorporated in the State of Delaware since October 2016.
We are a leading provider of technology solutions that enable professionals and field mobile workers to improve or transform
their work processes. We focus on transforming the way the world works by delivering products and services that connect the
physical and digital worlds. We generate revenue primarily through the sale of our hardware, software, maintenance and
support, professional services, and subscriptions.
Basis of Presentation
These Consolidated Financial Statements include our results of our consolidated subsidiaries. Intercompany accounts and
transactions have been eliminated. Noncontrolling interests represent the noncontrolling stockholders’ proportionate share of
the net assets and results of operations of our consolidated subsidiaries.
We use a 52–53 week fiscal year ending on the Friday nearest to December 31. Fiscal 2021 and 2020 were both 52-week years
ending on December 31, 2021 and January 1, 2021, respectively. Fiscal 2019 was a 53-week year ended on January 3, 2020.
Unless otherwise stated, all dates refer to our fiscal year and fiscal periods.
Use of Estimates
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires us
to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.
Estimates and assumptions are used for revenue recognition, including determining the nature and timing of satisfaction of
performance obligations and determining standalone selling price (“SSP”) of performance obligations, provision for credit
losses, sales returns reserve, inventory valuation, warranty costs, investments, acquired intangibles, goodwill and intangible
asset impairment analysis, other long-lived asset impairment analysis, stock-based compensation, and income taxes. We base
our estimates on historical experience and various other assumptions we believe to be reasonable. Actual results that we
experience may differ materially from our estimates.
Reportable Segments
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 and 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.
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 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 may 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 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.
51
Nature of Goods and Services
We generate revenue primarily from products, services, and subscriptions; each of which is a distinct performance obligation.
Descriptions are as follows:
Product
Product revenue includes hardware and software licenses.
Hardware is recognized when the control of the product transfers to the customer, which is generally when the product
is shipped. We recognize shipping fees reimbursed by customers as revenue and the cost for shipping as an expense in
Cost of sales when control over products has transferred to the customer.
Software including perpetual and term licenses is recognized upon delivery and commencement of license term. In
general, our contracts do not provide for customer specific acceptances.
Service
Service revenue includes hardware and software maintenance and support and professional services.
Hardware maintenance and support, commonly called 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.
Software maintenance and support 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 being most common.
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.
Subscription
Subscription revenue includes software as a service (“SaaS”), data, and hosting services.
SaaS may be sold with devices used to collect, generate, and transmit data. SaaS is distinct from the related devices.
In addition, we 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 one to three years. Subscription revenue is recognized
monthly over the subscription term, commencing from activation.
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
we have 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 $39.5 million and $138.7 million at the end
of 2021 and 2020.
We maintain an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. Each
reporting period, we evaluate the collectability of our trade accounts receivable based on a number of factors such as age of the
accounts receivable balances, credit quality, historical experience, and current and future economic conditions that may affect a
customer’s ability to pay. At the end of 2021 and 2020, our allowance for credit losses was $7.0 million. The provision for
credit losses for the years ended 2021, 2020 and 2019 were $2.6 million, $7.1 million, and $6.5 million.
52
Deferred Costs to Obtain Customer Contracts
Sales commissions incurred in obtaining 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 the estimated benefit period, which is either the
contract term or the shorter of customer life or product life that ranges from three to seven years. Contracts with an
amortization period of a year or less from this deferral requirement are expensed as incurred.
At the end of 2021 and 2020, deferred costs to obtain customer contracts were $59.7 million and $51.3 million. These costs are
included in Other non-current assets in the Consolidated Balance Sheets. There was no impairment loss in relation to the costs
capitalized for the periods presented.
Amortization expense related to deferred costs to obtain customer contracts was $25.9 million, $22.8 million, and $22.3
million, for 2021, 2020, and 2019. This expense is included in Sales and marketing expense in our Consolidated Statements of
Income.
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 our estimate used to reserve for excess and obsolete inventory differs from what is
expected, we may be required to recognize additional reserves, which would negatively impact our gross margin.
Property and Equipment, Net
Property and equipment are depreciated 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. We capitalize eligible costs to acquire or develop certain internal-use software and amortize
those assets using the straight-line method over the estimated useful lives of the assets, which range from two to five years.
Leases
We determine 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, in both Other current liabilities, 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 our incremental
borrowing rate based on the estimated rate of interest for collateralized borrowings over a similar term of the lease payments at
commencement date. The operating lease ROU asset includes adjustments made for uneven rents, lease incentives, and lease
impairments. 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
We account for business combinations using the acquisition method of accounting whereby certain identifiable assets and
liabilities of the acquired business and any noncontrolling interest in the acquiree are recorded at their estimated fair values as
of the acquisition date. Any purchase consideration in excess of the estimated fair values of the net assets acquired is recorded
as goodwill. Acquisition-related expenses and related restructuring costs are expensed as incurred.
When determining the fair values of certain assets acquired, liabilities assumed, and noncontrolling interests in the acquiree, we
make significant estimates and assumptions, especially concerning intangible assets. Critical estimates when 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.
53
Goodwill
We evaluate goodwill on an annual basis or more frequently if indicators of potential impairment exist. We utilize either a
qualitative or quantitative approach to assess the likelihood of impairment as of the first day of the fourth quarter. When
performing the qualitative approach, we consider macroeconomic conditions, industry and market considerations, overall
financial performance, and other relevant events and factors that may impact the reporting units. When performing the
quantitative approach, we compare the reporting unit’s carrying amount, including goodwill, to the reporting unit's fair value.
The estimation of a reporting unit's fair value involves using estimates and assumptions including expected future operating
performance using risk-adjusted discount rates. Actual future results may differ from those estimates. If the carrying amount
of the reporting unit exceeds its fair value, an impairment loss is recognized.
Intangible Assets
Intangible assets acquired individually, with a group of other assets, or in a business combination are recorded at fair value.
Our intangible assets are amortized over the period of estimated benefit using the straight-line method over their estimated
useful lives, which range from three years to ten years and have a weighted-average useful life of approximately seven years.
We write off fully amortized intangible assets when those assets are no longer used.
We review intangible assets 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
We accrue for warranty costs as part of our cost of sales based on associated material product costs, technical support labor
costs, and costs incurred by third parties performing work on our behalf. Our 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 $17.1 million and $13.8 million are included in Other current liabilities in the Consolidated
Balance Sheets at the end of 2021 and 2020.
Foreign Currency Translation
Assets and liabilities recorded in foreign currency are translated to U.S. dollars at the exchange rates on the balance sheet date.
Revenue and expense are translated at average monthly exchange rates during the year. Translation adjustments resulting from
this process are recorded to other comprehensive income.
Stock-Based Compensation
Stock-based compensation expense is based on the measurement date fair value of the awards, net of expected forfeitures.
Expense is generally recognized on a straight-line basis over the requisite service period of the stock awards. The estimate of
the forfeiture rate is based on historical experience.
Advertising and Promotional Costs
Advertising and promotional costs are expensed as incurred. Advertising and promotional expense was approximately $31.6
million, $28.6 million, and $42.7 million, in 2021, 2020, and 2019.
Research and Development Costs
Research and development costs are expensed as incurred. Development costs for software to be sold subsequent to reaching
technical feasibility were not significant and were expensed as incurred. We received third party funding of approximately
$12.6 million, $16.3 million, and $16.5 million in 2021, 2020, and 2019. We offset research and development expense with
any unconditional third party funding earned and retain the rights to any technology developed under such arrangements.
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. Our valuation allowance is primarily attributable to foreign net operating losses
and state research and development credit carryforwards.
Relative to uncertain tax positions, we only recognize 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. We consider many factors
when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and may not
54
accurately forecast actual tax audit outcomes. Changes in recognition or measurement of our uncertain tax positions would
result in the recognition of a tax benefit or an additional charge to the tax provision. Our practice is to recognize interest and/or
penalties related to income tax matters in income tax expense.
We are subject to income taxes in the U.S. and numerous other countries and are subject to routine corporate income tax audits
in many of these jurisdictions. We generally believe that positions taken on our 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, our income tax provision includes amounts intended to satisfy assessments that may result from these
challenges. The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously
included in our income tax provision and, therefore, could have a material impact on our income tax provision, net income, and
cash flows.
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.
We are also exposed to credit risk in our trade receivables, which are derived from sales to end-user customers in diversified
industries as well as various resellers. We perform ongoing credit evaluations of our customers’ financial conditions and limit
the amount of credit extended, when deemed necessary, but generally do not require collateral.
In addition, we rely on a limited number of suppliers for a number of our critical components.
Guarantees, Including Indirect Guarantees of Indebtedness of Others
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 under these agreements were not material, and no liabilities have been recorded for these obligations in the
Consolidated Balance Sheets at the end of 2021 and 2020.
Derivative Financial Instruments
We enter into foreign exchange forward contracts to minimize the short-term impact of foreign currency fluctuations on cash
and certain trade and intercompany receivables and payables, primarily denominated in New Zealand Dollars, Brazil Real,
Canadian Dollars, Norwegian Krone, and Euro. 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 reporting period and
generally range from one to two months in original maturity. We occasionally enter into foreign currency forward contracts to
hedge the purchase price of some of our larger business acquisitions. We do not enter into foreign currency forward contracts
for trading purposes. As of the years ended 2021 and 2020, there were no derivative financial instruments outstanding that
were accounted for as hedges.
Recent Accounting Pronouncements
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. We adopted the new standard on a prospective basis at the
beginning of 2021. The adoption did not have a material impact on our Consolidated Financial Statements.
Business Combinations—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
In October 2021, the FASB issued amendments to improve, simplify, and provide consistency for recognition and measurement
of acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments require
that an acquirer recognize and measure contract assets and contract liabilities under Topic 606, Revenue from Contracts with
Customers, as if it had originated the contracts. The amendments also allow for election of certain practical expedients, which
55
are applied on an acquisition-by-acquisition basis. The new accounting amendments are effective for the Company beginning
in 2023 with prospective application. Early adoption is permitted, including in any interim period, and if elected, the
amendments are applied retrospectively for any acquisitions that occurred in the year of interim adoption.
We early adopted the guidance in the fourth quarter of 2021 retrospectively to all business combinations completed since the
beginning of 2021. The adoption did not have a material impact on our Consolidated Financial Statements.
NOTE 2: EARNINGS PER SHARE
Basic earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the
period. Diluted earnings per share is computed based on the weighted-average number of shares of common stock outstanding
during the period plus additional shares of common stock that would have been outstanding if potentially dilutive securities had
been issued. Potentially dilutive common shares include outstanding stock options, RSUs, contingently issuable shares, and
shares to be purchased under our ESPP.
The following table shows the computation of basic and diluted earnings per share:
(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
2021
2020
2019
$
492.7 $
389.9 $
514.3
251.4
2.9
254.3
1.96 $
1.94 $
250.5
1.8
252.3
1.56 $
1.55 $
250.8
2.1
252.9
2.05
2.03
$
$
Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented.
NOTE 3: BUSINESS COMBINATION, INTANGIBLE ASSETS, AND GOODWILL
On December 13, 2021, we acquired AgileAssets, with total purchase consideration of $237.5 million. AgileAssets is a
provider of SaaS solutions for transportation asset lifecycle management. The financial results have been included in our
consolidated financial statements since the date of the acquisition. The acquisition contributed less than 1% of our total revenue
during 2021.
During 2020, we acquired three businesses, with total purchase consideration of $205.1 million. The acquisitions were not
significant individually or in the aggregate. The largest acquisition was Kuebix, a transportation management system provider.
In the aggregate, the businesses acquired contributed less than 1% of our total revenue during 2020.
During 2019, we 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 Cityworks, a company that provides enterprise asset
management (EAM) software for utilities and local government. In the aggregate, the businesses acquired contributed less than
1% of our total revenue during 2019.
For the AgileAssets acquisition in 2021, the preliminary allocation of purchase price was based upon preliminary fair value
estimates and analyses, including preliminary work performed by third-party valuation specialists, which could change within
the measurement period as valuations are finalized. The primary areas that remain preliminary relate to the fair values of
intangible assets acquired and certain tangible assets and liabilities acquired. We expect to finalize the valuation as soon as
practicable, but no later than one year from the acquisition date.
Acquisition costs of $13.6 million, $20.3 million, and $20.2 million in 2021, 2020, and 2019, were expensed as incurred and are
included in Cost of sales and General and administrative expenses in our Consolidated Statements of Income.
56
The following table summarizes the business combinations completed during the periods indicated:
(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
2021
2020
2019
$
237.5 $
205.1 $
247.0
(5.2)
67.2
—
175.5 $
(1.6)
56.7
0.7
149.3 $
6.7
104.6
(3.4)
139.1
$
The following table presents a summary of our intangible assets:
At the End of 2021
At the End of 2020
Weighted-
Average
Useful Lives
(in years)
6
9
6
4
(In millions)
Developed product
technology
Customer
relationships
Trade names and
trademarks
Distribution rights
and other
intellectual
properties
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
$
1,011.9 $
(748.2) $
263.7 $
1,118.2 $
(811.1) $
307.1
667.8
(428.9)
238.9
681.1
(419.3)
261.8
48.0
(45.0)
3.0
58.3
(51.9)
6.4
10.0
(9.0)
1.0
45.8
(41.0)
4.8
$
1,737.7 $
(1,231.1) $
506.6 $
1,903.4 $
(1,323.3) $
580.1
As of the end of 2021 and 2020, $160.1 million and $338.3 million of fully amortized intangible assets were written off.
The estimated future amortization expense of intangible assets at the end of 2021 was as follows:
(In million)
2022
2023
2024
2025
2026
Thereafter
Total
Goodwill
The changes in the carrying amount of goodwill by segment were as follows:
$
$
127.2
115.6
90.1
55.9
49.5
68.3
506.6
(In millions)
Balance as of year end 2020
Additions due to acquisition
Decrease from the sale of businesses
Foreign currency translation and other adjustments
Balance as of year end 2021
$
Buildings and
Infrastructure
Geospatial
Resources and
Utilities
Transportation
Total
$
1,997.4 $
175.5
(14.7)
(16.8)
415.7 $
—
—
(12.1)
453.8 $
—
1,009.6 $ 3,876.5
175.5
—
(3.3)
(9.7)
—
(13.9)
(18.0)
(52.5)
2,141.4 $
403.6 $
440.8 $
995.7 $ 3,981.5
57
NOTE 4: CERTAIN BALANCE SHEET COMPONENTS
The components of inventory, net were as follows:
At the End of Year
(In millions)
Inventories:
Raw materials
Work-in-process
Finished goods
Total inventories
2021
2020
$
$
129.6 $
12.4
221.3
363.3 $
95.6
16.0
190.1
301.7
Finished goods includes $13.7 million and $11.7 million at the end of 2021 and 2020 for costs of sales that have been deferred
in connection with deferred revenue arrangements.
The components of property and equipment, net were as follows:
At the End of Year
(In millions)
Property and equipment, net:
Land, building, furniture, and leasehold improvements
Machinery and equipment
Software and licenses
Construction in progress
Less: accumulated depreciation
Total property and equipment, net
The components of accumulated other comprehensive loss, net of related tax were as follows:
At the End of Year
(In millions)
Accumulated foreign currency translation adjustments
Net unrealized actuarial losses
Total accumulated other comprehensive loss
2021
2020
$
$
238.8 $
185.8
150.9
20.7
596.2
(363.0)
233.2 $
253.3
178.7
148.9
17.2
598.1
(346.3)
251.8
2021
2020
$
$
(160.0) $
(1.7)
(161.7) $
(96.0)
(2.5)
(98.5)
NOTE 5: REPORTING SEGMENT AND GEOGRAPHIC INFORMATION
We determined our operating segments based on how our Chief Operating Decision Maker (“CODM”) 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. Our CODM regularly reviews our segment
operating results to make decisions about resources to be allocated to each segment and assess performance. In each of our
segments, we sell many individual products. For this reason, it is impracticable to segregate and identify revenue for each of
the individual products or group of products we sell.
Our reportable segments are described below:
•
•
•
•
Buildings and Infrastructure. This segment primarily serves customers working in architecture, engineering,
construction, and operations and maintenance.
Geospatial. This segment primarily serves customers working in surveying, engineering, and government.
Resources and Utilities. This segment primarily serves customers working in agriculture, forestry, and utilities.
Transportation. This segment primarily serves customers working in long haul trucking and freight shipper markets.
58
The following Reporting Segment tables reflect the results of our reportable operating segments under our management
reporting system. These results are not necessarily in conformity with U.S. GAAP. This is consistent with the way the CODM
evaluates each of the segment's performance and allocates resources.
(In millions)
2021
Revenue
Purchase accounting adjustments(1)
Segment revenue
Operating income
Purchase accounting adjustments(2)
Segment operating income
Depreciation expense
2020
Revenue
Purchase accounting adjustments(1)
Segment revenue
Operating income
Purchase accounting adjustments(2)
Segment operating income
Depreciation expense
2019
Revenue
Purchase accounting adjustments(1)
Segment revenue
Operating income
Purchase accounting adjustments(2)
Segment operating income
Depreciation expense
Reporting Segments
Buildings and
Infrastructure
Geospatial
Resources
and Utilities
Transportation
Total
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,422.5 $
0.2
1,422.7 $
828.9 $
—
828.9 $
771.3 $
—
771.3 $
636.4 $ 3,659.1
0.3
636.5 $ 3,659.4
0.1
415.6 $
244.1 $
264.0 $
43.6 $
967.3
(3.9)
411.7 $
—
244.1 $
—
264.0 $
(0.2)
43.4 $
(4.1)
963.2
7.0 $
7.0 $
5.9 $
4.1 $
24.0
1,230.7 $
650.5 $
627.3 $
639.2 $ 3,147.7
0.3
—
2.7
1.3
4.3
1,231.0 $
650.5 $
630.0 $
640.5 $ 3,152.0
343.0 $
184.4 $
218.4 $
49.0 $
794.8
(4.9)
—
2.6
1.1
(1.2)
338.1 $
184.4 $
221.0 $
50.1 $
793.6
8.1 $
6.2 $
5.6 $
4.1 $
24.0
1,254.2 $
649.4 $
568.4 $
792.3 $ 3,264.3
4.0
1,258.2 $
—
649.4 $
3.0
571.4 $
—
7.0
792.3 $ 3,271.3
322.1 $
(2.2)
319.9 $
132.2 $
—
132.2 $
166.2 $
2.9
169.1 $
125.9 $
—
125.9 $
746.4
0.7
747.1
8.1 $
6.3 $
4.4 $
4.4 $
23.2
(1) Includes acquired deferred revenue adjustments of certain acquired deferred revenue that was written down to fair value in
purchase accounting.
(2) Includes acquired deferred revenue adjustments and amortization of acquired capitalized commissions.
59
(In millions)
As of Year End 2021
Accounts receivable, net
Inventories
Goodwill
As of Year End 2020
Accounts receivable, net
Inventories
Goodwill
As of Year End 2019
Accounts receivable, net
Inventories
Goodwill
Buildings and
Infrastructure
Geospatial
Resources
and Utilities
Transportation
Total
Reporting Segments
$
246.8 $
79.3
134.0 $
136.4
112.9 $
67.4
131.1 $
80.2
624.8
363.3
2,141.4
403.6
440.8
995.7
3,981.5
$
260.1 $
117.5 $
91.2 $
151.7 $
620.5
59.1
1,997.4
120.1
415.7
49.0
453.8
73.5
1,009.6
301.7
3,876.5
$
232.0 $
115.5 $
93.3 $
167.4 $
67.1
1,973.0
125.0
401.5
45.5
445.4
74.5
860.7
608.2
312.1
3,680.6
A reconciliation of our consolidated segment operating income to consolidated income before income taxes was as follows:
(In millions)
Consolidated segment operating income
Unallocated general corporate expenses
Purchase accounting adjustments (1)
Acquisition / divestiture items
Stock-based compensation / deferred compensation
Restructuring and other costs
Consolidated operating income
Total non-operating income (expense), net
Consolidated income before taxes
2021
2020
2019
$
963.2 $
793.6 $
(106.2)
(134.5)
(21.8)
(128.6)
(11.1)
561.0
13.6
$
574.6 $
(74.0)
(156.6)
(21.4)
(90.4)
(31.4)
419.8
(24.8)
395.0 $
747.1
(73.1)
(168.5)
(20.5)
(81.2)
(27.9)
375.9
(31.1)
344.8
(1) Purchase accounting adjustments include acquired deferred revenue adjustments, amortization of acquired capitalized
commissions, and amortization of purchased intangible assets.
60
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)
2021
North America
Europe
Asia Pacific
Rest of World
Total segment revenue
2020
North America
Europe
Asia Pacific
Rest of World
Reporting Segments
Buildings and
Infrastructure
Geospatial
Resources
and Utilities
Transportation
Total
$
$
823.5 $
386.6
188.4
24.2
1,422.7 $
337.3 $
282.3
161.4
212.2 $
368.4
67.3
47.9
123.4
828.9 $
771.3 $
493.1 $
87.3
30.2
25.9
636.5 $
1,866.1
1,124.6
447.3
221.4
3,659.4
$
703.4 $
249.9 $
191.4 $
502.5 $
1,647.2
337.1
165.7
24.8
222.3
138.2
40.1
284.3
64.5
89.8
78.4
34.9
24.7
922.1
403.3
179.4
Total segment revenue
$
1,231.0 $
650.5 $
630.0 $
640.5 $
3,152.0
2019
North America
Europe
Asia Pacific
Rest of World
Total segment revenue
$
722.7 $
338.7
263.0 $
217.5
173.3 $
273.6
636.3 $
90.4
1,795.3
920.2
165.3
31.5
122.7
46.2
47.4
77.1
39.7
25.9
375.1
180.7
$
1,258.2 $
649.4 $
571.4 $
792.3 $
3,271.3
Total revenue in the United States as included in the Consolidated Statements of Income was $1,687.4 million,
$1,502.3 million, and $1,641.0 million in 2021, 2020, and 2019. No single customer or country other than the United States
accounted for 10% or more of our total revenue in 2021, 2020, and 2019. No single customer accounted for 10% or more of
our accounts receivable at the end of 2021 and 2020.
Property and equipment, net by geographic area were as follows:
At the End of Year
(In millions)
Property and equipment, net:
United States
Europe
Asia Pacific and Rest of World
Total property and equipment, net
2021
2020
$
$
171.3 $
44.8
17.1
233.2 $
200.3
41.0
10.5
251.8
61
NOTE 6: DEBT
Debt consisted of the following:
At the End of Year
(In millions, except percentages)
Senior Notes:
2023 Senior Notes, 4.15%, due June 2023
Date of Issuance
Effective interest rate
for 2021
2021
2020
June 2018
2028 Senior Notes, 4.90%, due June 2028
2024 Senior Notes, 4.75%, due December 2024 November 2014
June 2018
Credit Facilities:
Uncommitted facilities, floating rate
Promissory notes and other debt
Unamortized discount and issuance costs
Total debt
Less: Short-term debt
Long-term debt
4.36%
5.04%
4.95%
$
300.0 $
600.0
400.0
—
—
(6.8)
1,293.2
—
$
1,293.2 $
300.0
600.0
400.0
255.8
0.1
(8.7)
1,547.2
255.8
1,291.4
Each of our debt agreements requires us to maintain compliance with certain debt covenants, all of which we complied with at
the end of 2021.
Debt Maturities
At the end of 2021, our debt maturities based on outstanding principal were as follows:
(In million)
2022
2023
2024
2025
2026
Thereafter
Total
Senior Notes
$
—
300.0
400.0
—
—
600.0
$
1,300.0
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 our other senior unsecured indebtedness. We may
redeem the notes of each series of senior notes at our option in whole or in part at any time. Such indenture also contains
covenants limiting our 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 our properties and assets, each subject to certain exceptions.
2018 Credit Facility
At the end of 2021, we had access to a $1.25 billion unsecured revolving credit facility maturing in May 2023, which may be
used for working capital and general corporate purposes, including permitted acquisitions. As part of the credit facility, we may
request an additional term loan facility up to $500.0 million prior to the maturity of the credit facility and subject to approval.
Uncommitted Facilities
At the end of 2021, we had one £55.0 million, two $75.0 million, and one €100.0 million revolving credit facilities, which are
uncommitted (the “Uncommitted Facilities”). Generally, these uncommitted facilities may be redeemed upon demand.
Borrowings under uncommitted facilities are classified as short-term debt in our Consolidated Balance Sheet.
62
NOTE 7: LEASES
We have operating leases primarily for certain of our major facilities, including corporate offices, research and development
facilities, and manufacturing facilities. Lease terms range from 1 to 13 years, and certain leases include options to extend the
lease for up to 9 years. We consider options to extend the lease in determining the lease term.
Operating lease expense consisted of:
At the End of Year
(In millions)
Operating lease expense
Short-term lease expense and other
Total lease expense
Supplemental cash flow information related to leases was as follows:
At the End of 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 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
At the end of 2021, the maturities of lease liabilities were as follows:
(In million)
2022
2023
2024
2025
2026
Thereafter
Total lease payments
Less: imputed interest
Total
$
$
$
$
$
$
$
2021
2020
35.5 $
17.8
53.3 $
2021
2020
35.9 $
49.5 $
38.1
15.7
53.8
37.0
29.4
2021
2020
141.0
35.0
121.4
156.4
3.31 %
7 years
$
$
$
$
$
$
128.9
33.8
109.2
143.0
3.86 %
6 years
37.4
30.3
23.6
18.3
14.7
49.3
173.6
17.2
156.4
63
NOTE 8: COMMITMENTS AND CONTINGENCIES
At the end of 2021, we had unconditional purchase obligations of approximately $710.8 million as compared to $241.1 million
at the end of 2020. The increase was primarily related to investments in our platform associated with our Connect and Scale
strategy and non-cancellable inventory commitments that increased due to extension of lead times and the growth of our
hardware business.
Litigation
From time to time, we are involved in litigation arising in 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.
NOTE 9: FAIR VALUE MEASUREMENTS
The following table summarizes the fair values of financial instruments at fair value on a recurring basis for the periods
indicated and determined using the following inputs:
Fair Values as of the end of 2021
Fair Values as of the end of 2020
Quoted
prices in
Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobserva
ble Inputs
Quoted
prices in
Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobserva
ble Inputs
(Level I)
(Level II)
(Level III)
Total
(Level I)
(Level II)
(Level III)
Total
$
(In millions)
Assets
Deferred compensation plan (1)
Derivatives (2)
Total assets measured at fair value
Liabilities
Deferred compensation plan (1)
Derivatives (2)
Contingent consideration (3)
Total liabilities measured at fair value $
$
$
44.7 $ — $ — $ 44.7 $
—
0.1
—
0.1
41.9 $ — $ — $ 41.9
0.9
0.9
—
—
44.7 $
0.1 $ — $ 44.8 $
41.9 $
0.9 $ — $ 42.8
44.7 $ — $ — $ 44.7 $
41.9 $ — $ — $ 41.9
—
—
0.2
—
—
12.8
0.2
12.8
—
—
0.5
—
—
12.3
0.5
12.3
44.7 $
0.2 $
12.8 $ 57.7 $
41.9 $
0.5 $
12.3 $ 54.7
(1) Represents a self-directed, non-qualified deferred compensation plan for certain executives and other highly
compensated employees included in Other non-current assets and Other non-current liabilities on our Consolidated
Balance Sheets. The plan is invested in actively traded mutual funds and individual stocks valued using observable
quoted prices in active markets.
(2) Represents forward currency exchange contracts that are included in Other current assets and Other current liabilities on
our Consolidated Balance Sheets.
(3) Represents arrangements to pay the former owners of certain companies that we acquired that are included in Other
current liabilities on our Condensed Consolidated Balance Sheets. The fair values are estimated using scenario-based
methods or option pricing methods based upon estimated future revenues, gross margins, or other milestones. The
undiscounted maximum payment under the arrangements is $14.8 million at the end of 2021.
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 $1.4 billion and $1.8 billion at the end of 2021 and 2020.
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. The fair values do not indicate the amount we would currently have to pay to extinguish any of this
debt.
64
NOTE 10: DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS
Deferred Revenue
Changes in our deferred revenue during 2021 and 2020 were as follows:
(In millions)
Beginning balance of the period
Revenue recognized
Billing and other net activities
Ending balance of the period
Remaining Performance Obligations
2021
2020
$
$
613.8 $
(533.8)
551.8
631.8 $
541.9
(476.9)
548.8
613.8
At the end of 2021, approximately $1.8 billion of revenue is expected to be recognized from remaining performance obligations
for which goods or services have not been delivered, primarily subscription, post-contract services and hardware, and to a lesser
extent, professional services. We expect to recognize $1.4 billion or 76% of our remaining performance obligations as revenue
during the next 12 months and the remainder thereafter.
NOTE 11: INCOME TAXES
Income before taxes and the provision (benefit) for taxes consisted of the following:
(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
2021
2020
2019
$
$
144.0
430.6
574.6
$
$
24.7
370.3
395.0
$
$
43.0
301.8
344.8
$
27.1
$
(5.8)
$
(3.8)
(22.9)
4.2
5.6
(2.5)
3.1
(16.3)
(22.1)
0.8
7.1
7.9
252.3
248.5
5.1
(0.7)
4.4
76.0
(1.5)
74.5
81.8
14.2 %
$
62.2
(43.6)
18.6
4.4
1.1 %
$
49.2
(471.8)
(422.6)
(169.7)
(49.2) %
$
65
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:
Statutory federal income tax rate
Increase (reduction) in tax rate resulting from:
Foreign income taxed at different rates
Change in valuation allowance
U.S. State income taxes
Stock-based compensation
Excess tax benefit related to stock-based compensation
Other U.S. taxes on foreign operations
U.S. Federal research and development credits
Tax reserve releases
Intellectual property restructuring and tax law changes
Other
Effective tax rate
2021
2020
2019
21.0 %
21.0 %
21.0 %
0.5 %
— %
1.1 %
1.7 %
(2.5) %
(1.6) %
(2.1) %
(2.1) %
(2.5) %
0.7 %
14.2 %
1.7 %
2.0 %
0.5 %
1.5 %
(1.5) %
(1.0) %
(2.3) %
(4.8) %
(16.2) %
0.2 %
1.1 %
(7.3) %
— %
1.5 %
1.2 %
(2.4) %
1.3 %
(2.8) %
(4.9) %
(59.8) %
3.0 %
(49.2) %
In December 2021, due to a change in the Netherlands tax law, the statutory tax rate was further increased from 25.0% to 25.8%
effective January 1, 2022. As a result, we recorded a one-time tax benefit of $14.4 million in 2021 due to the revaluation of the
Netherlands deferred tax assets.
Previously in December 2020, also as a result of a Netherlands tax law change that increased Netherlands statutory tax rate
from 21.7% to 25.0%, effective January 1, 2021, we recorded a one-time tax benefit of $64.0 million in 2020 due to the
revaluation of the Netherlands deferred tax assets.
66
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 deferred tax assets
and liabilities were as follows:
At the End of Year
(In millions)
Deferred tax liabilities:
Global intangible low-taxed income
Purchased intangibles
Operating lease right-of-use assets
Other
Total deferred tax liabilities
Deferred tax assets:
Depreciation and amortization
Operating lease liabilities
U.S. tax credit carryforwards
Expenses not currently deductible
Foreign net operating loss carryforwards
Stock-based compensation
U.S. net operating loss carryforwards
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
2021
2020
207.6 $
115.8
33.5
12.7
369.6
474.9
36.4
25.8
43.7
18.0
13.9
5.8
35.7
654.2
(45.7)
608.5
238.9 $
219.7
138.1
32.3
11.3
401.4
497.1
35.0
32.8
32.3
16.8
10.6
7.4
20.6
652.6
(41.3)
611.3
209.9
502.0 $
(263.1)
238.9 $
510.2
(300.3)
209.9
$
$
$
$
At the end of 2021, we have U.S. federal and foreign net operating loss carryforwards, or NOLs, of approximately $12.9
million and $90.2 million, respectively. The U.S. federal NOLs will begin to expire in 2026. There is generally no expiration
for the foreign NOLs. Utilization of our U.S. federal NOLs is subject to annual limitations in accordance with the applicable
tax code. We have determined that it is more likely than not that we will not realize a portion of the foreign NOLs and,
accordingly, a valuation allowance has been established for such amount.
We have California research and development credit carryforwards of approximately $33.0 million, which have an indefinite
carryforward period. We believe that it is more likely than not that we will not realize a significant 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, we can repatriate foreign earnings back to the U.S. when needed with minimal U.S. income tax
consequences. We reinvested a large portion of our undistributed foreign earnings in acquisitions and other investments and
intend to bring back a portion of foreign cash that was subject to the transition tax and the global intangible low-taxed income
tax. During 2021, we repatriated $290.1 million of our foreign earnings to the U.S.
67
The total amount of the unrecognized tax benefits at the end of 2021 was $64.2 million. A reconciliation of gross unrecognized
tax benefit was as follows:
(In millions)
Beginning balance
Increase related to current year tax positions
(Decrease) increase related to prior years' tax positions
Settlement with taxing authorities
Lapse of statute of limitations
Ending balance
2021
2020
2019
$
64.1 $
71.6 $
9.6
1.3
(1.3)
(9.5)
64.2 $
8.0
(0.4)
(0.5)
(14.6)
64.1 $
$
69.1
12.6
3.8
(5.7)
(8.2)
71.6
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $42.3 million and $47.8 million at
the end of 2021 and 2020.
We and our subsidiaries are subject to U.S. federal, state, and foreign income taxes. Our tax years are substantially closed for
all U.S. federal and state income taxes for audit purposes through 2015. Non-U.S. income tax matters have been concluded for
years through 2008. We are currently in various stages of multiple year examinations state, and foreign (multiple jurisdictions)
taxing authorities. While we generally believe it is more likely than not that our tax positions will be sustained, it is reasonably
possible that future obligations related to these matters could arise. We believe that our reserves are adequate to cover any
potential assessments that may result from the examinations and negotiations.
Although timing of the resolution and/or closure of audits is not certain, we do not believe that our gross unrecognized tax
benefits would materially change in the next twelve months.
Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Our liability for
unrecognized tax benefits including interest and penalties was recorded in Other non-current liabilities on our Consolidated
Balance Sheets. At the end of 2021 and 2020, we accrued $9.2 million and $9.6 million for interest and penalties.
NOTE 12: EMPLOYEE STOCK BENEFIT PLANS
Amended and Restated 2002 Stock Plan
In May 2020, our stockholders approved an amendment to the 2002 Stock Plan to increase the number of shares of common
stock available for issuance by 18.0 million shares. As such, our Amended and Restated 2002 Stock Plan provides for the
granting of incentive and non-statutory stock options and RSUs for up to 92.6 million shares. At the end of 2021, the remaining
number of shares available for grant under the 2002 stock plan was 20.2 million.
Stock-Based Compensation Expense
The following table summarizes the components of stock-based compensation expense recognized in our Consolidated
Statements of Income for the periods indicated:
(In millions)
Restricted stock units
Stock options
ESPP
Total stock-based compensation expense
2021
2020
2019
$
$
110.5 $
1.3
10.8
122.6 $
73.2 $
1.5
8.3
83.0 $
67.3
0.6
7.1
75.0
68
Stock-based compensation expense was allocated as follows:
(In millions)
Cost of sales
Research and development
Sales and marketing
General and administrative
Total stock-based compensation expense
2021
2020
2019
$
$
9.5 $
29.5
21.5
62.1
122.6 $
6.7 $
22.1
16.2
38.0
83.0 $
5.6
16.7
13.0
39.7
75.0
At the end of 2021, total unamortized stock-based compensation expense was $151.1 million, with a weighted-average
recognition period of 2.0 years.
Restricted Stock Units
We grant RSUs containing only service conditions and RSUs containing a combination of service, performance, and/or market
conditions (“PSUs”). RSUs containing only service conditions typically 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.
The fair value at the grant date is determined by (1) the closing price of our common stock for awards containing only service
or both service and performance conditions, or (2) the Monte Carlo valuation model for awards containing both service and
market conditions.
For PSUs, the number of shares received at vesting will range from 0% to 200% of the target grant amount based on either (1)
market conditions, (2) performance conditions, or (3) both. Market conditions consider our relative total stockholder return
(“TSR”) of our 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 our financial results over the vesting period.
(In millions, except for per share data)
Outstanding at the beginning of year
Granted (2)
Shares vested, net (2)
Canceled and forfeited
Outstanding at the end of year
2021 Restricted Stock Units Outstanding
Number of Units (1)
Weighted Average
Grant-Date Fair Value
per Share
5.4 $
1.2
(1.9)
(0.4)
4.3 $
44.25
78.44
39.62
51.15
56.96
(1) Includes 0.2 million PSUs granted, 0.4 million PSUs vested, and 1.1 million PSUs outstanding at the end of the year.
(2) Excludes approximately 0.1 million PSUs related to achievement above target levels at the vesting date.
The weighted-average grant date fair value of all RSUs granted during 2021, 2020, and 2019 was $78.44, $42.50, and $41.38
per share. The fair value of all RSUs vested during 2021, 2020, and 2019 was $81.4 million, $78.0 million, and $75.7 million
per share.
Employee Stock Purchase Plan
We have an ESPP under which our stockholders have approved an aggregate of 39.0 million shares of common stock for
issuance to eligible employees. The fair value at the grant date is based on the Black-Scholes valuation model. 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 six months. Rights to purchase shares are
granted during the first and third quarter of each year. The ESPP terminates on March 15, 2027. In 2021, 2020, and 2019, 0.6
million, 0.8 million, and 0.8 million shares were issued, representing $33.4 million, $26.9 million, and $25.7 million in cash
received for the issuance of stock under the ESPP. At the end of 2021, the number of shares reserved for future purchases was
6.0 million.
69
NOTE 13: COMMON STOCK REPURCHASE
In August 2021, our Board of Directors approved a new share repurchase program (“2021 Stock Repurchase Program”)
authorizing up to $750.0 million in repurchases of our common stock. Under the 2021 Stock Repurchase Program, the share
repurchase authorization does not have an expiration date and supersedes and replaces the $600.0 million share repurchase
authorization approved by our Board of Directors in November 2017 (“2017 Stock Repurchase Program”), of which
$50.7 million was remaining and has been cancelled.
Under the 2021 Stock Repurchase Program, we may repurchase shares from time to time, subject to business and market
conditions and other investment opportunities, through open market transactions, privately-negotiated transactions, accelerated
stock repurchase plans, or by other means. The timing and actual number of any shares repurchased will depend on a variety of
factors, including market conditions, our share price, other available uses of capital, applicable legal requirements, and other
factors. The 2021 Stock Repurchase Program may be suspended, modified, or discontinued at any time at the Company’s
discretion without notice.
During 2021, 2020, and 2019, we repurchased approximately 2.1 million, 1.9 million, and 4.7 million shares of common stock
in open market purchases under our 2017 and 2021 Stock Repurchase Programs, at an average price of $85.75, $43.40, and
$38.51 per share, for a total of $180.0 million, $81.6 million, and $179.8 million. At the end of 2021, the 2021 Stock
Repurchase Program had remaining authorized funds of $610.0 million.
Stock repurchases are reflected as a decrease to common stock based on par value and additional-paid-in-capital, based on the
average book value per share for all outstanding shares calculated at the time of each individual repurchase transaction. The
excess of the purchase price over this average for each repurchase was charged to retained earnings. As a result of the 2021
repurchases, retained earnings was reduced by $164.3 million in 2021. Common stock repurchases under the program were
recorded based upon the trade date for accounting purposes.
70
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 December 31, 2021 and
January 1, 2021, the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for
each of the three years in the period ended December 31, 2021, and the related notes (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 December 31, 2021 and January 1, 2021, and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 2021, 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 December 31, 2021, 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 22, 2022 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 Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that
was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that
are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The
communication of the critical audit matter 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 matter below, providing a separate opinion on the critical audit
matter or on the accounts or disclosures to which it relates.
71
Description of the Matter
Revenue Recognition - Identification of Performance Obligations
As described in Note 1 to the consolidated financial statements, the Company enters into
contracts that can include various combinations of products and 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.
How We Addressed the
Matter in Our Audit
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.
/s/ Ernst & Young LLP
We have served as the Company’s auditor since 1986.
San Jose, California
February 22, 2022
72
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 December 31, 2021, 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 December 31, 2021, 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 the current year acquisition, which is included in the 2021 consolidated financial statements of the Company and
constituted less than 1% of tangible assets and net assets as of December 31, 2021, and less than 1% of revenues 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 the current year acquisition.
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 December 31, 2021 and January 1, 2021, the related
consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for each of the three years in
the period ended December 31, 2021, and the related notes and our report dated February 22, 2022 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 22, 2022
73
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
Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), 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 CEO and CFO have concluded that, as of the end of such period, our disclosure controls
and procedures are effective.
Inherent Limitations on Effectiveness of Controls
Our 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
Our 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.
Our management, including the CEO and CFO, conducted an evaluation of the effectiveness of our 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). We have excluded from our evaluation of the internal control over financial
reporting the current year acquisition, which is included in the December 31, 2021 consolidated financial statements and
constituted less than 1% of tangible assets and net assets, respectively, as of December 31, 2021, and less than 1% of revenue
and net income, respectively, for the year then ended. Based on the results of this evaluation, our management concluded that
our internal control over financial reporting was effective at the end of 2021.
The effectiveness of our internal control over financial reporting at the end of 2021 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 2021, there were no changes in our internal control over financial reporting that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information
None.
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.
74
Item 10. Directors, Executive Officers and Corporate Governance
PART III
The information required by this item, insofar as it relates to our 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
Our Business Ethics and Conduct Policy applies to, among others, our Chief Executive Officer, Chief Financial Officer, Chief
Accounting Officer, and other finance organization employees. We make available our Business Ethics and Conduct Policy
free of charge through our website at www.trimble.com under the heading “Corporate Governance - Governance Documents”
on the Investor Relations page.
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, or Chief Accounting Officer, we will disclose the nature of such amendment or waiver on our website at
www.trimble.com or in a report on Form 8-K. The contents of these websites are not intended to be incorporated by reference
into this Annual Report on Form 10-K or in any other report or document we file or furnish with the SEC, and any reference to
these websites are intended to be inactive textual references only.
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.
75
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
Page in this
Annual Report on
Form 10-K
46
47
48
49
50
51
71
All financial statement schedules have been omitted, since the required information is not applicable or is not present in
amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated
financial statements and accompanying notes included in this Annual Report on Form 10-K.
(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 Annual Report on Form 10-K.
Item 16. Form 10-K Summary.
None.
76
3.2
4.1
4.2
4.3(A)
4.3(B)
4.3(C)
4.3(D)
10.1(C)
10.2(A)
10.2(B)
10.3+
INDEX TO EXHIBITS
Exh. No.
3.1
Description of Exhibit
Certificate of Incorporation of Trimble Inc.
Amended and Restated By-Laws of Trimble Inc. (effective October 1, 2020)
Form of Common Stock Certificate of Trimble Inc.
Description of Securities of Trimble Inc.
Indenture, dated as of October 30, 2014, between the Company and U.S. Bank National
Association
Filed herewith or
incorporated by reference to:
Exhibit 3.1 to Form 8-K filed
October 3, 2016
Exhibit 3.1 to Form 8-K filed
September 30, 2020
Exhibit 4.1 to Form 8-K filed
October 3, 2016
Exhibit 4.2 to Form 10-K filed
February 28, 2020
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 the Company 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 the Company 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 the Company and Carr America Realty Operating
Partnership, L.P.
Exhibit 10.17 to Form 10-K filed
March 10, 2006
10.1(B)
First Amendment to Lease between the Company and Carr NP Properties, LLC
Exhibit 10.23 to Form 10-K filed
March 1, 2011
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 the Company, 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
Extension and Amendment Agreement, dated May 4, 2020, amending Credit Agreement
dated May 15, 2018, by and among the Company, the lenders party thereto and JPMorgan
Chase Bank, N.A., as administrative agent.
Form of Indemnification Agreement between the Company and its officers and directors
10.4+
Board of Directors Compensation Policy as amended August 24, 2020
10.5+
Incentive Compensation Recoupment Policy
10.6+
Deferred Compensation Plan, as amended August 26, 2020
10.7+
Age and Service Equity Vesting Program, as amended August 6, 2021
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 April 6, 2020
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)
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
77
Exhibit 10.1 to Form 8-K filed
May 6, 2020
Exhibit 10.1 to Form 8-K
filed November 15, 2017
Exhibit 10.1 to Form 10-Q filed
November 6, 2020
Exhibit 99.1 to Form 8-K filed
May 8, 2017
Exhibit 10.2 to Form 10-Q filed
November 6, 2020
Exhibit 10.1 to Form 10-Q filed
November 4, 2021
Appendix B of Form DEF 14A
filed March 23, 2017
Exhibit 10.5 to Form 10-Q filed
November 10, 2015
Appendix B of Form DEF 14A
filed April 15, 2020
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
Exhibit 10.2 to Form 10-Q filed
November 10, 2015
Exhibit 10.6 to Form 10-Q filed
November 10, 2015
10.9(H)+
10.9(I)+
10.9(G)+
2002 Stock Plan - Form of global restricted stock unit award agreement (officers)
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)
Exhibit 10.5 to Form 10-Q filed
August 8, 2017
Exhibit 10.1 to Form 10-Q filed
August 2, 2019
10.9(K)+
2002 Stock Plan - Performance stock option agreement between the Company and Rob
Painter issued January 4, 2020
Exhibit 10.9(K) to Form 10-K
filed February 28, 2020
10.9(L)+
2002 Stock Plan - Form of performance stock unit award agreement (officers, TSR-based)
10.9(M)+
2002 Stock Plan - Form of performance stock unit award agreement (ARR-based)
Exhibit 10.2 to Form 10-Q filed
August 7, 2020
Exhibit 10.1 to Form 10-Q filed
August 9, 2021
10.9(N)+
2002 Stock Plan - Form of performance stock unit award agreement (TSR-based, 2021
revision)
Exhibit 10.2 to Form 10-Q filed
August 9, 2021
10.10+
Trimble OneBonus Plan Description
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++
Exhibit 10.1 to Form 8-K filed
February 25, 2021
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
Change in Control Severance Agreement between the Company and Robert G. Painter
dated January 4, 2020
Executive Severance Agreement between the Company and Robert G. Painter dated
January 4, 2020
Subsidiaries of the Company
Exhibit 10.15 to Form 10-K filed
February 26, 2021
Exhibit 10.16 to Form 10-K filed
February 26, 2021
Filed herewith
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
Filed herewith
Filed herewith
Filed herewith
Filed herewith
Filed herewith
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
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.
78
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
Report of this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.
SIGNATURES
By:
February 22, 2022
TRIMBLE INC.
/S/ ROBERT G. PAINTER
Robert G. Painter,
President and Chief Executive Officer
79
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
of this Annual 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 22, 2022
/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/ JAMES C. DALTON
James C. Dalton
/s/ BORJE EKHOLM
Börje Ekholm
/s/ ANN FANDOZZI
Ann Fandozzi
/s/ KAIGHAM (KEN) GABRIEL
Kaigham (Ken) Gabriel
/s/ MEAGHAN LLOYD
Meaghan Lloyd
/s/ SANDRA MACQUILLAN
Sandra MacQuillan
/s/ MARK S. PEEK
Mark S. Peek
/s/ THOMAS W. SWEET
Thomas W. Sweet
/s/ JOHAN WIBERGH
Johan Wibergh
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
80
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022
February 22, 2022