SEGMENT INFORMATION

9 Months Ended

Sep. 27, 2013

SEGMENT INFORMATION

NOTE 6 . 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 work, mobile workers and mobile assets.

• 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, depreciation expense 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 2013
Segment revenue	$	310,611	$	99,466	$	113,570	$	32,855	$	556,502
Operating income	73,488		31,373		15,276		8,420		128,557
Depreciation expense	2,990		139		1,056		195		4,380
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
Depreciation expense	2,586		127		792		206		3,711
First Three Quarters of Fiscal 2013
Segment revenue	$	890,928	$	362,811	$	339,258	$	95,909	$	1,688,906
Operating income	183,301		134,271		42,284		21,419		381,275
Depreciation expense	8,838		426		3,393		582		13,239
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
Depreciation expense	7,663		383		2,301		651		10,998
As of the Third Quarter of Fiscal 2013
Accounts receivable	$	198,499	$	69,240	$	71,949	$	21,868	$	361,556
Inventories	165,526		34,692		26,315		14,976		241,509
Goodwill	1,040,906		78,715		794,303		24,946		1,938,870
As of Fiscal Year End 2012
Accounts receivable	$	171,580	$	71,465	$	59,720	$	20,712	$	323,477
Inventories	148,241		44,738		30,598		16,952		240,529
Goodwill	958,103		68,684		763,386		25,526		1,815,699

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
	2013			2012			2013			2012
(Dollars in thousands)
Consolidated segment operating income	$	128,557		$	118,374		$	381,275		$	347,142
Unallocated corporate expense	(21,019		)	(21,660		)	(66,886		)	(61,203		)
Amortization of purchased intangible assets	(41,618		)	(31,440		)	(120,713		)	(89,315		)
Acquisition costs	(2,891		)	(1,804		)	(9,285		)	(14,385		)
Consolidated operating income	63,029			63,470			184,391			182,239
Non-operating income, net	483			3,352			2,181			8,201
Consolidated income before taxes	$	63,512		$	66,822		$	186,572		$	190,440

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