UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 1, 2022
	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 Number)

935 Stewart Drive, Sunnyvale, CA 94085

(Address of principal executive offices) (Zip Code)

(408) 481-8000

(Registrant’s telephone number, including area code)

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  ý    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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	ý	Accelerated Filer	¨
Non-accelerated Filer	¨	Smaller Reporting Company	☐
		Emerging Growth 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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ý

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	TRMB	NASDAQ Global Select Market

As of August 2, 2022, there were 247,657,418 shares of Common Stock, par value $0.001 per share, outstanding.

SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q 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:

•impact of supply chain shortages and disruptions, as well as general inflationary pressures, on our costs and operations;

•potential impact of volatility and conflict in the political and economic environment, including the Russian invasion of Ukraine and its direct and indirect impact on our business;

•impact of the COVID-19 pandemic, including upon global or local macroeconomic conditions, our supply chain, our results of operations, and estimates or judgments;

•the portion of our revenue expected to come from sales to customers located in countries outside of the U.S.;

•a continued shift in revenue towards a more significant mix of software and recurring revenue, including subscription, maintenance and support, and service 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 in the foreseeable future to meet our anticipated operating cash needs, debt service, and planned capital expenditures;

•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; and

•our discretion to conduct, suspend, or discontinue our stock repurchase program subject to the discretion of our management.

The forward-looking statements regarding future events and the future results of Trimble Inc. (“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 Form 10-Q. 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 Form 10-K for 2021 (the “2021 Form 10-K”), our Quarterly Report on Form 10-Q for the quarterly period ended April 1, 2022, and in other reports we file with the SEC, each as it may be amended from time to time. These forward-looking statements are made as of the date of this Quarterly Report on Form 10-Q. We reserve the right to update these forward-looking statements for any reason, including the occurrence of material events, but assume no duty to update these statements to reflect subsequent events.

TRIMBLE INC.

FORM 10-Q for the Quarter Ended July 1, 2022

TABLE OF CONTENTS

		Page
PART I.	Financial Information
ITEM 1.	Financial Statements (Unaudited):
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Income	5
	Condensed Consolidated Statements of Comprehensive Income	6
	Condensed Consolidated Statements of Stockholders' Equity	7
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements	10
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	32
ITEM 4.	Controls and Procedures	32
PART II.	Other Information
ITEM 1.	Legal Proceedings	33
ITEM 1A.	Risk Factors	33
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
ITEM 3.	Defaults Upon Senior Securities	33
ITEM 4.	Mine Safety Disclosures	33
ITEM 5.	Other Information	33
ITEM 6.	Exhibits	34
SIGNATURES		35

3

PART I – FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TRIMBLE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	Second Quarter of		Year End
As of	2022		2021
(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents	$	350.1	$	325.7
Accounts receivable, net	589.3		624.8
Inventories	371.7		363.3
Other current assets	163.9		136.8
Total current assets	1,475.0		1,450.6
Property and equipment, net	228.5		233.2
Operating lease right-of-use assets	133.2		141.0
Goodwill	3,886.0		3,981.5
Other purchased intangible assets, net	432.9		506.6
Deferred income tax assets	464.0		502.0
Other non-current assets	299.9		284.7
Total assets	$	6,919.5	$	7,099.6
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	300.0	$	—
Accounts payable	191.7		207.3
Accrued compensation and benefits	168.4		231.0
Deferred revenue	599.2		548.8
Other current liabilities	190.2		201.5
Total current liabilities	1,449.5		1,188.6
Long-term debt	994.1		1,293.2
Deferred revenue, non-current	86.0		83.0
Deferred income tax liabilities	198.4		263.1
Income taxes payable	40.9		54.5
Operating lease liabilities	114.4		121.4
Other non-current liabilities	141.7		151.1
Total liabilities	3,025.0		3,154.9
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $0.001 par value; 3.0 shares authorized; none issued and outstanding	—		—
Common stock, $0.001 par value; 360.0 shares authorized; 247.6 and 250.9 shares issued and outstanding at the end of the second quarter of 2022 and year end 2021	0.2		0.3
Additional paid-in-capital	1,987.7		1,935.6
Retained earnings	2,145.7		2,170.5
Accumulated other comprehensive loss	(239.1)		(161.7)
Total stockholders' equity	3,894.5		3,944.7
Total liabilities and stockholders' equity	$	6,919.5	$	7,099.6

See accompanying Notes to the Condensed Consolidated Financial Statements.

4

TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Second Quarter of				First Two Quarters of
(In millions, except per share amounts)	2022		2021		2022		2021
Revenue:
Product	$	564.5	$	594.9	$	1,186.1	$	1,134.3
Service	158.0		162.1		319.1		324.4
Subscription	218.7		188.2		429.7		373.0
Total revenue	941.2		945.2		1,934.9		1,831.7
Cost of sales:
Product	269.9		286.0		578.3		541.7
Service	63.4		58.0		126.7		117.6
Subscription	49.4		53.8		99.3		109.6
Amortization of purchased intangible assets	21.0		22.0		43.5		44.1
Total cost of sales	403.7		419.8		847.8		813.0
Gross margin	537.5		525.4		1,087.1		1,018.7
Operating expense:
Research and development	140.1		138.3		280.4		267.7
Sales and marketing	138.9		125.2		270.8		247.6
General and administrative	106.9		99.6		208.4		185.0
Restructuring	5.4		4.5		12.3		6.0
Amortization of purchased intangible assets	11.3		13.0		23.4		26.7
Total operating expense	402.6		380.6		795.3		733.0
Operating income	134.9		144.8		291.8		285.7
Non-operating income, net:
Divestitures gain, net	106.0		20.4		97.1		22.4
Interest expense, net	(15.3)		(16.6)		(31.3)		(33.5)
Income from equity method investments, net	5.8		10.0		15.5		21.8
Other income (expense), net	(9.8)		3.8		(13.0)		3.4
Total non-operating income, net	86.7		17.6		68.3		14.1
Income before taxes	221.6		162.4		360.1		299.8
Income tax provision	53.6		23.5		81.8		46.3
Net income	168.0		138.9		278.3		253.5
Net income attributable to noncontrolling interests	—		—		—		0.1
Net income attributable to Trimble Inc.	$	168.0	$	138.9	$	278.3	$	253.4
Earnings per share attributable to Trimble Inc.:
Basic	$	0.67	$	0.55	$	1.11	$	1.01
Diluted	$	0.67	$	0.55	$	1.11	$	1.00
Shares used in calculating earnings per share:
Basic	249.2		251.5		250.0		251.3
Diluted	250.7		254.2		251.7		254.2

See accompanying Notes to the Condensed Consolidated Financial Statements.

5

TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

	Second Quarter of				First Two Quarters of
	2022		2021		2022		2021
(In millions)
Net income	$	168.0	$	138.9	$	278.3	$	253.5
Foreign currency translation adjustments, net of tax	(75.2)		18.1		(77.4)		(13.4)
Comprehensive income	92.8		157.0		200.9		240.1
Comprehensive income attributable to noncontrolling interests	—		—		—		0.1
Comprehensive income attributable to Trimble Inc.	$	92.8	$	157.0	$	200.9	$	240.0

See accompanying Notes to the Condensed Consolidated Financial Statements.

6

TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(UNAUDITED)

	Common stock					Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity		Noncontrolling Interest		Total
	Shares	Amount		Additional Paid-In Capital
(In millions)
Balance at the end of 2021	250.9	$	0.3	$	1,935.6	$	2,170.5	$	(161.7)	$	3,944.7	$	—	$	3,944.7
Net income	—	—		—		110.3		—		110.3		—		110.3
Other comprehensive loss	—	—		—		—		(2.2)		(2.2)		—		(2.2)
Comprehensive income										108.1				108.1
Issuance of common stock under employee plans, net of tax withholdings	0.7	—		15.2		(17.6)		—		(2.4)		—		(2.4)
Stock repurchases	(1.5)	—		(11.8)		(92.9)		—		(104.7)		—		(104.7)
Stock-based compensation	—	—		42.2		—		—		42.2		—		42.2
Balance at the end of the first quarter of 2022	250.1	$	0.3	$	1,981.2	$	2,170.3	$	(163.9)	$	3,987.9	$	—	$	3,987.9
Net income	—	—		—		168.0		—		168.0		—		168.0
Other comprehensive loss	—	—		—		—		(75.2)		(75.2)		—		(75.2)
Comprehensive income										92.8				92.8
Issuance of common stock under employee plans, net of tax withholdings	0.6	—		(2.3)		(17.1)		—		(19.4)		—		(19.4)
Stock repurchases	(3.1)	(0.1)		(24.4)		(175.5)		—		(200.0)		—		(200.0)
Stock-based compensation	—	—		33.2		—		—		33.2		—		33.2
Balance at the end of the second quarter of 2022	247.6	$	0.2	$	1,987.7	$	2,145.7	$	(239.1)	$	3,894.5	$	—	$	3,894.5

7

	Common stock					Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity		Noncontrolling Interest		Total
	Shares	Amount		Additional Paid-In Capital
(In millions)
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	—	—		—		114.5		—		114.5		0.1		114.6
Other comprehensive loss	—	—		—		—		(31.5)		(31.5)		—		(31.5)
Comprehensive income										83.0				83.1
Issuance of common stock under employee plans, net of tax withholdings	0.7	—		18.2		(10.2)		—		8.0		—		8.0
Stock repurchases	(0.6)	—		(4.1)		(35.9)		—		(40.0)		—		(40.0)
Stock-based compensation	—	—		25.1		—		—		25.1		—		25.1
Noncontrolling interest investment	—	—		0.6		—		—		0.6		(1.8)		(1.2)
Balance at the end of the first quarter of 2021	250.9	$	0.3	$	1,841.5	$	1,961.8	$	(130.0)	$	3,673.6	$	—	$	3,673.6
Net income	—	—		—		138.9		—		138.9		—		138.9
Other comprehensive income	—	—		—		—		18.1		18.1		—		18.1
Comprehensive income										157.0				157.0
Issuance of common stock under employee plans, net of tax withholdings	0.7	—		(1.8)		(23.5)		—		(25.3)		—		(25.3)
Stock-based compensation	—	—		33.3		—		—		33.3		—		33.3
Balance at the end of the second quarter of 2021	251.6	$	0.3	$	1,873.0	$	2,077.2	$	(111.9)	$	3,838.6	$	—	$	3,838.6

See accompanying Notes to the Condensed Consolidated Financial Statements.

8

TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	First Two Quarters of
(In millions)	2022		2021
Cash flow from operating activities:
Net income	$	278.3	$	253.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	20.0		20.8
Amortization expense	66.9		70.8
Deferred income taxes	(24.9)		(4.9)
Stock-based compensation	61.3		62.8
Divestitures gain, net	(97.1)		(24.0)
Other, net	12.6		3.6
(Increase) decrease in assets:
Accounts receivable, net	(1.5)		35.2
Inventories	(72.4)		(0.3)
Other current and non-current assets	(25.6)		(22.4)
Increase (decrease) in liabilities:
Accounts payable	(7.9)		39.2
Accrued compensation and benefits	(46.4)		6.3
Deferred revenue	67.3		3.9
Other current and non-current liabilities	(28.8)		(15.7)
Net cash provided by operating activities	201.8		428.8
Cash flow from investing activities:
Purchases of property and equipment	(28.5)		(21.4)
Net proceeds from sale of businesses	210.5		46.0
Net proceeds from sale of property and equipment	0.1		20.7
Other, net	(9.8)		(2.4)
Net cash provided by investing activities	172.3		42.9
Cash flow from financing activities:
Issuance of common stock, net of tax withholdings	(21.7)		(17.3)
Repurchases of common stock	(304.7)		(40.0)
Proceeds from debt and revolving credit lines	138.2		198.9
Payments on debt and revolving credit lines	(138.2)		(363.3)
Other, net	(8.9)		(1.4)
Net cash used in financing activities	(335.3)		(223.1)
Effect of exchange rate changes on cash and cash equivalents	(14.4)		(1.9)
Net increase in cash and cash equivalents	24.4		246.7
Cash and cash equivalents - beginning of period	325.7		237.7
Cash and cash equivalents - end of period	$	350.1	$	484.4

See accompanying Notes to the Condensed Consolidated Financial Statements.

9

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

NOTE 1. OVERVIEW AND ACCOUNTING POLICIES

Basis of Presentation

The Condensed 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- to 53-week year ending on the Friday nearest to December 31. Both 2022 and 2021 are 52-week years. The second quarter of 2022 and 2021 ended on July 1, 2022 and July 2, 2021. Unless otherwise stated, all dates refer to these periods.

Use of Estimates

We prepared our interim Condensed Consolidated Financial Statements that accompany these notes in conformity with U.S. GAAP, consistent in all material respects with those applied in our Form 10-K filed with the U.S. Securities and Exchange Commission on February 23, 2022 (the “2021 Form 10-K”).

The interim financial information is unaudited, and reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This report should be read in conjunction with our 2021 Form 10-K that includes additional information about our significant accounting policies and the methods and assumptions used in our 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.

Recently issued Accounting Pronouncements not yet Adopted

There are no recently issued accounting pronouncements applicable to us not yet adopted.

Recently Adopted Accounting Pronouncements

There are no recently adopted accounting pronouncements.

NOTE 2. STOCKHOLDERS’ EQUITY

Stock Repurchase Activities

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 cancelled.

Under the 2021 Stock Repurchase Program, we may repurchase shares from time to time 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 the second quarter and first two quarters of 2022, we repurchased approximately 3.1 million and 4.6 million shares of common stock in open market purchases at an average price of $65.38 and $66.42 per share for a total of $200.0 million and $304.7 million under the 2021 Stock Repurchase Program. At the end of the second quarter of 2022, the 2021 Stock Repurchase Program had remaining authorized funds of $305.3 million.

10

There were no stock repurchases during the second quarter of 2021. During the first two quarters of 2021, we repurchased approximately 0.6 million shares of common stock in open market purchases at an average price of $71.24 per share for a total of $40.0 million under the 2017 Stock Repurchase Program.

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. Common stock repurchases under the program were recorded based upon the trade date for accounting purposes.

NOTE 3. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The following table presents a summary of our intangible assets:

	Second Quarter of 2022						Year End 2021
	Gross						Gross
	Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
(In millions)	Amount		Amortization		Amount		Amount		Amortization		Amount
Developed product technology	$	948.5	$	(729.3)	$	219.2	$	1,011.9	$	(748.2)	$	263.7
Customer relationships	632.7		(427.0)		205.7		667.8		(428.9)		238.9
Trade names and trademarks	45.6		(38.6)		7.0		48.0		(45.0)		3.0
Distribution rights and other intellectual property	9.2		(8.2)		1.0		10.0		(9.0)		1.0
	$	1,636.0	$	(1,203.1)	$	432.9	$	1,737.7	$	(1,231.1)	$	506.6

The estimated future amortization expense of intangible assets at the end of the second quarter of 2022 was as follows:

(In millions)
2022 (Remaining)	$	58.4
2023	112.5
2024	89.1
2025	55.6
2026	49.3
Thereafter	68.0
Total	$	432.9

Goodwill

The changes in the carrying amount of goodwill by segment for the first two quarters of 2022 were as follows: 

	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Balance as of year end 2021	$	2,141.4	$	403.6	$	440.8	$	995.7	$	3,981.5
Decrease from the sale of businesses	(23.9)		(6.9)		—		(6.9)		(37.7)
Foreign currency translation and other adjustments	(33.8)		(11.4)		(8.5)		(4.1)		(57.8)
Balance as of the end of the second quarter of 2022	$	2,083.7	$	385.3	$	432.3	$	984.7	$	3,886.0

11

NOTE 4. DIVESTITURES

In May 2022, we completed the sale of the Time and Frequency, LOADRITE, Spectra Precision Tools, and SECO accessories businesses to Precisional LLC, an affiliate of The Jordan Company (“TJC”), for $204.1 million in cash, subject to a working capital adjustment. These businesses are reported as part of our Buildings and Infrastructure and Geospatial segments. Upon the closing of the transaction, we recognized a pre-tax gain of $105.7 million and wrote off $98.4 million of net assets primarily comprised of $40.6 million of inventory, $25.4 million of accounts receivable, and $30.8 million of goodwill.

In connection with the sale of these businesses, we and TJC entered into a transition services agreement (“TSA”) for us to provide certain services to TJC on a cost-reimbursement basis. The costs and reimbursements associated with the TSA were immaterial for the second quarter of 2022.

NOTE 5. INVENTORIES

The components of inventory, net were as follows:

	Second Quarter of		Year End
As of	2022		2021
(In millions)
Raw materials	$	127.6	$	129.6
Work-in-process	9.9		12.4
Finished goods	234.2		221.3
Total inventories	$	371.7	$	363.3

NOTE 6. SEGMENT INFORMATION

We determined our operating segments based on how our Chief Operating Decision Maker (“CODM”) views and evaluates operations. 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.

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.

12

	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Second Quarter of 2022
Segment revenue	$	382.6	$	193.7	$	214.8	$	150.1	$	941.2
Segment operating income	101.4		57.8		73.0		11.8		244.0
Depreciation expense	1.6		1.5		1.4		0.9		5.4
Second Quarter of 2021
Segment revenue	$	364.8	$	219.7	$	197.5	$	163.3	$	945.3
Segment operating income	104.1		66.1		70.5		12.8		253.5
Depreciation expense	1.8		1.8		1.5		1.1		6.2
First Two Quarters of 2022
Segment revenue	$	780.2	$	401.2	$	444.7	$	308.8	$	1,934.9
Segment operating income	222.1		115.7		148.1		21.0		506.9
Depreciation expense	3.2		3.1		2.9		1.9		11.1
First Two Quarters of 2021
Segment revenue	$	707.9	$	401.4	$	402.7	$	320.0	$	1,832.0
Segment operating income	200.5		114.8		150.6		21.2		487.1
Depreciation expense	3.6		3.5		3.0		2.0		12.1

	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
As of the end of the Second Quarter of 2022
Accounts receivable, net	$	214.6	$	108.8	$	119.5	$	146.4	$	589.3
Inventories	74.8		137.3		86.6		73.0		371.7
Goodwill	2,083.7		385.3		432.3		984.7		3,886.0
As of Year End 2021
Accounts receivable, net	$	246.8	$	134.0	$	112.9	$	131.1	$	624.8
Inventories	79.3		136.4		67.4		80.2		363.3
Goodwill	2,141.4		403.6		440.8		995.7		3,981.5

A reconciliation of our condensed consolidated segment operating income to condensed consolidated income before income taxes was as follows: 

	Second Quarter of				First Two Quarters of
	2022		2021		2022		2021
(In millions)
Consolidated segment operating income	$	244.0	$	253.5	$	506.9	$	487.1
Unallocated general corporate expenses	(33.3)		(24.9)		(63.1)		(49.3)
Purchase accounting adjustments	(32.3)		(34.0)		(66.9)		(68.8)
Acquisition / divestiture items	(7.3)		(6.6)		(11.2)		(10.1)
Stock-based compensation / deferred compensation	(26.2)		(38.3)		(51.2)		(67.0)
Restructuring and other costs	(10.0)		(4.9)		(22.7)		(6.2)
Consolidated operating income	134.9