SEGMENT INFORMATION

6 Months Ended

Jun. 28, 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)
Second Quarter of Fiscal 2013
Segment revenue	$	313,446	$	115,864	$	115,524	$	31,459	$	576,293
Operating income	66,840		43,372		15,435		6,514		132,161
Depreciation expense	2,880		153		1,358		190		4,581
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
Depreciation expense	2,578		123		803		217		3,721
First Two Quarters of Fiscal 2013
Segment revenue	$	580,317	$	263,345	$	225,688	$	63,054	$	1,132,404
Operating income	109,813		102,898		27,008		12,999		252,718
Depreciation expense	5,848		287		2,337		387		8,859
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
Depreciation expense	5,078		256		1,510		444		7,288
As of the Second Quarter of Fiscal 2013
Accounts receivable	$	201,541	$	68,074	$	67,580	$	19,069	$	356,264
Inventories	171,891		43,521		26,444		16,853		258,709
Goodwill	1,025,735		68,294		792,865		24,684		1,911,578
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:

	Second Quarter of						First Two Quarters of
	2013			2012			2013			2012
(Dollars in thousands)
Consolidated segment operating income	$	132,161		$	115,633		$	252,718		$	228,768
Unallocated corporate expense	(24,517		)	(19,819		)	(45,867		)	(39,543		)
Amortization of purchased intangible assets	(39,763		)	(29,078		)	(79,095		)	(57,875		)
Acquisition costs	(2,976		)	(7,815		)	(6,394		)	(12,581		)
Consolidated operating income	64,905			58,921			121,362			118,769
Non-operating income, net	3,786			4,370			1,698			4,849
Consolidated income before taxes	$	68,691		$	63,291		$	123,060		$	123,618

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