REPORTING SEGMENT AND GEOGRAPHIC INFORMATION

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

The Company’s reportable segments are described below:


•	Buildings and Infrastructure: This segment primarily serves customers working in architecture, engineering, construction, and operations and maintenance.


•	Geospatial: This segment primarily serves customers working in surveying, engineering, government, and land management.


•	Resources and Utilities: This segment primarily serves customers working in agriculture, forestry, and utilities.


•	Transportation: This segment primarily serves customers working in long haul trucking, field service management, rail, and military aviation.

The following Reporting Segment tables reflect the results of the Company’s reportable operating segments under its management reporting system. These results are not necessarily in conformity with U.S. GAAP. Beginning with the third quarter of fiscal 2018, the Company presented segment revenue and income excluding the effects of certain acquired deferred revenue that was written down to fair value in purchase accounting. Segment income presented also excludes the effects of certain acquired capitalized commissions that were eliminated in purchase accounting, along with other adjustments that have historically been excluded in prior periods, as though the acquired companies operated independently in the periods presented. This is consistent with the way the chief operating decision maker evaluates each of the segment's performance and allocates resources. Comparative period financial information by reportable segment has been recast to conform with the current presentation.



	Reporting Segments
	Buildings and Infrastructure			Geospatial		Resources and Utilities			Transportation			Total
(In millions)
Fiscal 2018
Revenue	$	1,065.5		$	723.1	$	567.1		$	752.7		$	3,108.4
Acquired deferred revenue adjustment	22.2			—		1.0			0.4			23.6
Segment revenue	$	1,087.7		$	723.1	$	568.1		$	753.1		$	3,132.0

Operating income	$	239.0		$	166.4	$	167.4		$	142.9		$	715.7
Acquired deferred revenue adjustment	22.2			—		1.0			0.4			23.6
Amortization of acquired capitalized commissions	(4.5		)	—		(0.2		)	—			(4.7		)
Segment operating income	$	256.7		$	166.4	$	168.2		$	143.3		$	734.6

Depreciation expense	$	6.4		$	6.0	$	4.2		$	4.5		$	21.1
Fiscal 2017
Revenue (*As Adjusted)	$	829.4		$	658.5	$	481.0		$	677.6		$	2,646.5
Acquired deferred revenue adjustment	1.1			—		1.0			0.7			2.8
Segment revenue	$	830.5		$	658.5	$	482.0		$	678.3		$	2,649.3

Operating income (*As Adjusted)	$	176.0		$	129.4	$	137.0		$	114.4		$	556.8
Acquired deferred revenue adjustment	1.1			—		1.0			0.7			2.8
Amortization of acquired capitalized commissions	(0.9		)	—		(0.1		)	(0.3		)	(1.3		)
Segment operating income	$	176.2		$	129.4	$	137.9		$	114.8		$	558.3

Depreciation expense	$	6.2		$	5.4	$	3.2		$	5.2		$	20.0
Fiscal 2016
Revenue (*As Adjusted)	$	741.8		$	635.7	$	397.4		$	587.2		$	2,362.1
Acquired deferred revenue adjustment	1.0			—		0.8			0.8			2.6
Segment revenue	$	742.8		$	635.7	$	398.2		$	588.0		$	2,364.7

Operating income (*As Adjusted)	$	132.7		$	120.6	$	118.8		$	103.3		$	475.4
Acquired deferred revenue adjustment	1.0			—		0.8			0.8			2.6
Amortization of acquired capitalized commissions	(1.0		)	—		(0.3		)	(0.3		)	(1.6		)
Segment operating income	$	132.7		$	120.6	$	119.3		$	103.8		$	476.4

Depreciation expense	$	7.0		$	6.5	$	2.0		$	5.5		$	21.0



	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
As of Fiscal Year End 2018
Accounts receivable, net	$	177.5	$	118.7	$	83.8	$	132.6	$	512.6
Inventories	70.3		133.5		46.2		48.0		298.0
Goodwill	1,970.2		403.1		305.7		861.0		3,540.0
As of Fiscal Year End 2017
Accounts receivable, net (*As Adjusted)	$	120.1	$	121.5	$	78.5	$	107.6	$	427.7
Inventories (*As Adjusted)	62.1		110.3		46.0		46.2		264.6
Goodwill	$	706.8	$	415.3	$	314.5	$	850.5	2,287.1
As of Fiscal Year End 2016
Accounts receivable, net (*As Adjusted)	$	104.6	$	109.7	$	65.6	$	86.3	$	366.2
Inventories (*As Adjusted)	51.3		99.2		30.4		32.4		213.3
Goodwill	663.7		405.1		217.7		791.1		2,077.6

* See Note 2 for a summary of adjustments

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



Fiscal Years	2018			2017			2016
				*As Adjusted			*As Adjusted
(In millions)
Consolidated segment operating income	$	734.6		$	558.3		$	476.4
Unallocated corporate expense (1)	(90.7		)	(86.8		)	(70.5		)
Acquired deferred revenue adjustment	(23.6		)	(2.8		)	(2.6		)
Restructuring charges (2)	(8.7		)	(10.5		)	(13.3		)
Amortization of purchased intangible assets	(179.6		)	(148.8		)	(150.8		)
Stock-based compensation	(76.9		)	(64.8		)	(52.6		)
Amortization of acquisition-related inventory step-up	(0.2		)	(2.8		)	—
Acquisition and divestiture items	(38.9		)	(7.4		)	(6.8		)
Executive transition costs	—			—			(1.0		)
Amortization of acquired capitalized commissions	4.7			1.3			1.6
Consolidated operating income	320.7			235.7			180.4
Non-operating income (expense), net:	(42.7		)	12.5			(4.3		)
Consolidated income before taxes	$	278.0		$	248.2		$	176.1

* See Note 2 for a summary of adjustments

(1) Unallocated corporate expense includes general corporate expense.

(2) Restructuring charges primarily consist of severance and benefits, resulting from employee headcount reductions in connection with the Company's restructuring programs related to decisions to streamline processes and reduce the cost structure. As of the end of fiscal 2018, the Company's restructuring liability was $3.0 million, which is expected to be settled in fiscal 2019. Restructuring liabilities are reported within Other current liabilities on the Consolidated Balance Sheets.

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



	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Fiscal 2018
North America	$	595.0	$	290.6	$	175.0	$	609.4	$	1,670.0
Europe	312.1		211.2		260.0		90.2		873.5
Asia Pacific	152.7		171.7		46.4		47.5		418.3
Rest of World	27.9		49.6		86.7		6.0		170.2
Total segment revenue	$	1,087.7	$	723.1	$	568.1	$	753.1	$	3,132.0
Fiscal 2017 (*As Adjusted)
North America	$	428.5	$	257.5	$	163.7	$	562.9	$	1,412.6
Europe	237.9		187.1		189.5		72.7		687.2
Asia Pacific	127.2		162.5		52.6		37.7		380.0
Rest of World	36.9		51.4		76.2		5.0		169.5
Total segment revenue	$	830.5	$	658.5	$	482.0	$	678.3	$	2,649.3
Fiscal 2016 (*As Adjusted)
North America	$	395.6	$	255.5	$	150.6	$	476.2	$	1,277.9
Europe	207.0		172.8		133.5		62.9		576.2
Asia Pacific	105.0		159.9		53.5		34.4		352.8
Rest of World	35.2		47.5		60.6		14.5		157.8
Total segment revenue	$	742.8	$	635.7	$	398.2	$	588.0	$	2,364.7

* Adjusted to reflect adoption of the new revenue recognition standard, Revenue from Contracts with Customers. For further information, see Note 2.

No single customer or country other than the United States accounted for 10% or more of Trimble’s total revenue in fiscal years 2018, 2017 and 2016. No single customer accounted for 10% or more of Trimble's accounts receivable as of fiscal years ended 2018 and 2017.

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



At the End of Fiscal Year	2018		2017
(In millions)
Property and equipment, net:
United States	$	170.1	$	131.7
Europe	34.2		33.1
Asia Pacific and other non-US countries	8.6		9.2
Total property and equipment, net	$	212.9	$	174.0