SEGMENT INFORMATION

6 Months Ended

Jun. 29, 2012

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 products that provide solutions in a variety of survey, construction, positioning systems and services and geospatial applications.

• Field Solutions — Consists of products that provide solutions in a variety of agriculture, geographic information systems (GIS) and utilities applications.

• Mobile Solutions — Consists of products that provide solutions in a variety of field service management, transportation and logistics, forestry and public safety applications.

• 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 consists of Timing and Embedded GNSS products, Applanix, Defense and Trimble Outdoors Service.

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)
Second quarter of fiscal 2012
Segment revenue	$	284,175	$	123,371	$	81,402		$	28,612	$	517,560
Operating income		59,473		46,623		5,624			3,913		115,633
Second quarter of fiscal 2011
Segment revenue	$	236,668	$	104,029	$	40,224		$	26,248	$	407,169
Operating income (loss)		46,987		42,543		(2,684	)		2,607		89,453
First two quarters of fiscal 2012
Segment revenue	$	533,060	$	270,870	$	159,785		$	56,112	$	1,019,827
Operating income		99,550		108,984		12,982			7,252		228,768
First two quarters of fiscal 2011
Segment revenue	$	426,702	$	227,082	$	84,645		$	53,033	$	791,462
Operating income (loss)		69,766		95,048		(4,018	)		6,470		167,266
As of the second quarter of 2012
Accounts receivable	$	185,715	$	71,268	$	42,782		$	17,515	$	317,280
Inventories		129,874		44,064		35,577			18,433		227,948
Goodwill		902,664		66,948		527,950			24,923		1,522,485
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:

	Second Quarter of						First Two Quarters of
	2012			2011			2012			2011
(Dollars in thousands)
Consolidated segment operating income	$	115,633		$	89,453		$	228,768		$	167,266
Unallocated corporate expense		(19,819	)		(18,006	)		(39,543	)		(33,889	)
Amortization of purchased intangible assets		(29,078	)		(16,576	)		(57,875	)		(32,641	)
Acquisition costs		(7,815	)		(3,304	)		(12,581	)		(5,494	)
Consolidated operating income		58,921			51,567			118,769			95,242
Non-operating income, net		4,370			8,631			4,849			11,237
Consolidated income before taxes	$	63,291		$	60,198		$	123,618		$	106,479

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