SEGMENT INFORMATION

9 Months Ended

Sep. 28, 2012

SEGMENT INFORMATION

NOTE 7 . SEGMENT INFORMATION

The Company is a designer and distributor of positioning solutions enabled by GPS, optical, laser and wireless communications technology. The Company provides products for diverse applications in its targeted markets.

To achieve distribution, marketing, production and technology advantages, the Company manages its operations in the following four segments:

• Engineering and Construction — Consists of hardware and software solutions for a variety of applications including:  survey; heavy civil and building construction; infrastructure; geospatial; railway; mining and utilities.

• Field Solutions — Consists of hardware and software solutions for applications including agriculture, mapping and geographic information systems (GIS), utilities, and energy distribution.

• Mobile Solutions — Consists of hardware and software solutions that enable end-users to monitor and manage their mobile assets and fleets by communicating location and activity-relevant information from the field to the office.

• Advanced Devices — The various operations that comprise this segment are aggregated on the basis that no single operation accounts for more than 10% of the Company’s total revenue, operating income and assets. This segment is comprised of the Component Technologies, Military and Advanced Systems, Applanix, Trimble Outdoors, and ThingMagic businesses.

The Company evaluates each of its segment’s performance and allocates resources based on segment operating income before income taxes and some corporate allocations. The Company and each of its segments employ consistent accounting policies.

The following table presents revenue, operating income and identifiable assets for the four segments. Operating income is revenue less cost of sales and operating expense, excluding general corporate expense, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, acquisition costs and restructuring costs. The identifiable assets that the Company’s Chief Operating Decision Maker, its Chief Executive Officer, views by segment are accounts receivable, inventories and goodwill.

	Reporting Segments
	Engineering and Construction		Field Solutions		Mobile Solutions			Advanced Devices		Total
(Dollars in thousands)
Third Quarter of Fiscal 2012
Segment revenue	$	287,244	$	102,993	$	83,830		$	30,696	$	504,763
Operating income	68,451		36,021		8,218			5,684		118,374
Third Quarter of Fiscal 2011
Segment revenue	$	241,106	$	91,106	$	58,101		$	27,120	$	417,433
Operating income	42,634		31,030		2,503			3,970		80,137
First Three Quarters of Fiscal 2012
Segment revenue	$	820,304	$	373,863	$	243,615		$	86,808	$	1,524,590
Operating income	168,001		145,005		21,200			12,936		347,142
First Three Quarters of Fiscal 2011
Segment revenue	$	667,808	$	318,188	$	142,747		$	80,152	$	1,208,895
Operating income (loss)	112,400		126,078		(1,515		)	10,441		247,404
As of the Third Quarter of Fiscal 2012
Accounts receivable	$	175,254	$	79,425	$	45,067		$	21,158	$	320,904
Inventories	141,600		37,858		37,507			17,336		234,301
Goodwill	927,462		67,899		530,835			25,690		1,551,886
As of Fiscal Year End 2011
Accounts receivable	$	160,218	$	63,542	$	36,465		$	14,976	$	275,201
Inventories	128,433		51,756		31,262			20,612		232,063
Goodwill	697,237		68,268		508,260			23,927		1,297,692

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

	Third Quarter of						First Three Quarters of
	2012			2011			2012			2011
(Dollars in thousands)
Consolidated segment operating income	$	118,374		$	80,137		$	347,142		$	247,404
Unallocated corporate expense	(21,660		)	(16,302		)	(61,203		)	(50,192		)
Amortization of purchased intangible assets	(31,440		)	(24,106		)	(89,315		)	(56,747		)
Acquisition costs	(1,804		)	(7,281		)	(14,385		)	(12,775		)
Consolidated operating income	63,470			32,448			182,239			127,690
Non-operating income (expense), net	3,352			(2,563		)	8,201			8,674
Consolidated income before taxes	$	66,822		$	29,885		$	190,440		$	136,364

Unallocated corporate expense includes general corporate expense, amortization of acquisition-related inventory step-up and restructuring costs.