SEGMENT INFORMATION

3 Months Ended

Apr. 04, 2014

SEGMENT INFORMATION

SEGMENT INFORMATION

Trimble is a designer and distributor of positioning products and applications 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 these operations, taken as a whole, do not exceed 10% of the Company’s total revenue, operating income and assets. This segment is comprised of the Embedded Technologies and Timing, Military and Advanced Systems, Applanix, Trimble Outdoors, and ThingMagic businesses.

The Company’s Chief Operating Decision Maker (CODM), its Chief Executive Officer, 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. In each of its segments the Company sells many individual products. For this reason it is impractical to segregate and identify revenue for each of these individual products or groups of products.

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 CODM views by segment are accounts receivable, inventories and goodwill.

	Reporting Segments
	Engineering and Construction		Field Solutions		Mobile Solutions		Advanced Devices		Total
(Dollars in thousands)
First Quarter of Fiscal 2014
Segment revenue	$	309,276	$	138,165	$	118,628	$	38,652	$	604,721
Operating income	57,515		52,937		16,170		11,676		138,298
Depreciation expense	3,157		164		1,222		179		4,722
First Quarter of Fiscal 2013
Segment revenue	$	266,871	$	147,481	$	110,164	$	31,595	$	556,111
Operating income	42,973		59,526		11,573		6,485		120,557
Depreciation expense	2,968		134		979		197		4,278
As of the First Quarter of Fiscal 2014
Accounts receivable	$	212,770	$	86,554	$	71,250	$	27,166	$	397,740
Inventories	174,158		50,574		26,416		15,552		266,700
Goodwill	1,083,357		88,715		794,433		23,952		1,990,457
As of Fiscal Year End 2013
Accounts receivable	$	185,634	$	62,859	$	70,174	$	19,265	$	337,932
Inventories	171,863		39,554		27,664		15,230		254,311
Goodwill	1,080,240		88,651		796,094		24,485		1,989,470

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

	First Quarter of
	2014			2013
(Dollars in thousands)
Consolidated segment operating income	$	138,298		$	120,557
Unallocated corporate expense	(20,622		)	(21,350		)
Amortization of purchased intangible assets	(40,569		)	(39,332		)
Acquisition costs	(1,396		)	(3,418		)
Consolidated operating income	75,711			56,457
Non-operating income (loss), net	12,764			(2,088		)
Consolidated income before taxes	$	88,475		$	54,369

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