| 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:
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Engineering and Construction — Consists of products that
provide solutions in a variety of survey, construction, positioning
systems and services and geospatial applications.
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Field Solutions — Consists of products that provide
solutions in a variety of agriculture, geographic information
systems (GIS) and utilities applications.
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Mobile Solutions — Consists of products that provide
solutions in a variety of field service management, transportation
and logistics, forestry and public safety applications.
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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.
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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.
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Reporting
Segments |
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Engineering
and
Construction |
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Field
Solutions |
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Mobile
Solutions |
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Advanced
Devices |
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Total |
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| (Dollars in thousands) |
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Second quarter of fiscal
2012
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Segment revenue
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$ |
284,175 |
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$ |
123,371 |
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$ |
81,402 |
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$ |
28,612 |
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$ |
517,560 |
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Operating income
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59,473 |
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46,623 |
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5,624 |
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3,913 |
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115,633 |
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Second quarter of fiscal
2011
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Segment revenue
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$ |
236,668 |
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$ |
104,029 |
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$ |
40,224 |
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$ |
26,248 |
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$ |
407,169 |
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Operating income
(loss)
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46,987 |
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42,543 |
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(2,684 |
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2,607 |
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89,453 |
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First two quarters of
fiscal 2012
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Segment revenue
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$ |
533,060 |
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$ |
270,870 |
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$ |
159,785 |
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$ |
56,112 |
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$ |
1,019,827 |
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Operating income
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99,550 |
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108,984 |
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12,982 |
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7,252 |
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228,768 |
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First two quarters of
fiscal 2011
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Segment revenue
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$ |
426,702 |
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$ |
227,082 |
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$ |
84,645 |
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$ |
53,033 |
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$ |
791,462 |
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Operating income
(loss)
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69,766 |
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95,048 |
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(4,018 |
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6,470 |
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167,266 |
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As of the second quarter of
2012
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Accounts
receivable
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$ |
185,715 |
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$ |
71,268 |
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$ |
42,782 |
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$ |
17,515 |
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$ |
317,280 |
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Inventories
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129,874 |
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44,064 |
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35,577 |
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18,433 |
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227,948 |
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Goodwill
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902,664 |
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66,948 |
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527,950 |
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24,923 |
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1,522,485 |
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As of fiscal year end
2011
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Accounts
receivable
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$ |
160,218 |
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$ |
63,542 |
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$ |
36,465 |
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$ |
14,976 |
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$ |
275,201 |
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Inventories
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128,433 |
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51,756 |
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31,262 |
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20,612 |
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232,063 |
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Goodwill
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697,237 |
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68,268 |
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508,260 |
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23,927 |
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1,297,692 |
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A reconciliation of the
Company’s consolidated segment operating income to
consolidated income before income taxes is as follows:
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Second Quarter
of |
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First Two Quarters
of |
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2012 |
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2011 |
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2012 |
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2011 |
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| (Dollars in thousands) |
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Consolidated segment
operating income
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$ |
115,633 |
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$ |
89,453 |
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$ |
228,768 |
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$ |
167,266 |
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Unallocated corporate
expense
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(19,819 |
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(18,006 |
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(39,543 |
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(33,889 |
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Amortization of purchased
intangible assets
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(29,078 |
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(16,576 |
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(57,875 |
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(32,641 |
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Acquisition
costs
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(7,815 |
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(3,304 |
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(12,581 |
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(5,494 |
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Consolidated operating
income
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58,921 |
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51,567 |
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118,769 |
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95,242 |
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Non-operating income,
net
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4,370 |
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8,631 |
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4,849 |
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11,237 |
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Consolidated income before
taxes
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$ |
63,291 |
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$ |
60,198 |
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$ |
123,618 |
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$ |
106,479 |
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Unallocated corporate
expense includes general corporate expense, amortization of
acquisition-related inventory step-up and restructuring
costs.
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