Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TRIMBLE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

			Third Quarter of						Year End
As of			2021						2020
(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents			$	513.2					$	237.7
Accounts receivable, net			580.5						620.5
Inventories			323.4						301.7
Other current assets			143.4						121.5
Total current assets			1,560.5						1,281.4
Property and equipment, net			228.5						251.8
Operating lease right-of-use assets			147.1						128.9
Goodwill			3,823.6						3,876.5
Other purchased intangible assets, net			473.5						580.1
Deferred income tax assets			496.0						510.2
Other non-current assets			274.2						248.0
Total assets			$	7,003.4					$	6,876.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt			$	29.1					$	255.8
Accounts payable			193.4						143.2
Accrued compensation and benefits			199.5						166.8
Deferred revenue			511.7						560.5
Other current liabilities			207.5						185.0
Total current liabilities			1,141.2						1,311.3
Long-term debt			1,292.8						1,291.4
Deferred revenue, non-current			77.3						53.3
Deferred income tax liabilities			277.6						300.3
Income taxes payable			54.5						62.2
Operating lease liabilities			128.5						109.2
Other non-current liabilities			149.7						150.6
Total liabilities			3,121.6						3,278.3
Commitments and contingencies (Note 13)
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; 251.0 and 250.8 shares issued and outstanding at the end of the third quarter of 2021 and year end 2020			0.3						0.3
Additional paid-in-capital			1,914.4						1,801.7
Retained earnings			2,107.7						1,893.4
Accumulated other comprehensive loss			(140.6)						(98.5)
Total Trimble Inc. stockholders' equity			3,881.8						3,596.9
Noncontrolling interests			—						1.7
Total stockholders' equity			3,881.8						3,598.6
Total liabilities and stockholders' equity			$	7,003.4					$	6,876.9

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

			Third Quarter of												First Three Quarters of
(In millions, except per share amounts)			2021						2020						2021						2020
Revenue:
Product			$	551.2					$	461.4					$	1,685.5					$	1,337.6
Service			159.9						160.7						484.3						479.7
Subscription			190.3						170.0						563.3						500.7
Total revenue			901.4						792.1						2,733.1						2,318.0
Cost of sales:
Product			266.7						221.2						808.4						630.7
Service			55.5						55.5						173.1						175.1
Subscription			52.7						52.4						162.3						155.8
Amortization of purchased intangible assets			22.0						23.3						66.1						70.0
Total cost of sales			396.9						352.4						1,209.9						1,031.6
Gross margin			504.5						439.7						1,523.2						1,286.4
Operating expense:
Research and development			132.5						117.9						400.2						350.1
Sales and marketing			125.5						111.6						373.1						346.9
General and administrative			85.2						79.4						270.2						221.2
Restructuring			1.5						12.1						7.5						20.1
Amortization of purchased intangible assets			12.3						16.7						39.0						50.2
Total operating expense			357.0						337.7						1,090.0						988.5
Operating income			147.5						102.0						433.2						297.9
Non-operating income (expense), net:
Interest expense, net			(15.9)						(19.6)						(49.4)						(59.7)
Income from equity method investments, net			8.5						10.8						30.3						29.9
Other income (expense), net			16.6						3.2						42.4						(1.4)
Total non-operating income (expense), net			9.2						(5.6)						23.3						(31.2)
Income before taxes			156.7						96.4						456.5						266.7
Income tax provision			32.7						11.6						79.0						56.8
Net income			124.0						84.8						377.5						209.9
Net income attributable to noncontrolling interests			—						0.1						0.1						0.3
Net income attributable to Trimble Inc.			$	124.0					$	84.7					$	377.4					$	209.6
Earnings per share attributable to Trimble Inc.:
Basic			$	0.49					$	0.34					$	1.50					$	0.84
Diluted			$	0.49					$	0.34					$	1.48					$	0.83
Shares used in calculating earnings per share:
Basic			251.8						250.7						251.5						250.4
Diluted			254.5						252.8						254.3						251.9

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

			Third Quarter of												First Three Quarters of
			2021						2020						2021						2020
(In millions)
Net income			$	124.0					$	84.8					$	377.5					$	209.9
Foreign currency translation adjustments, net of tax			(28.7)						37.3						(42.1)						15.6
Net unrealized gain, net of tax			—						—						—						0.2
Comprehensive income			95.3						122.1						335.4						225.7
Comprehensive income attributable to noncontrolling interests			—						0.1						0.1						0.3
Comprehensive income attributable to Trimble Inc.			$	95.3					$	122.0					$	335.3					$	225.4

See accompanying Notes to the Condensed Consolidated Financial Statements.

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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 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
Net income			—						—						—						124.0						—						124.0						—						124.0
Other comprehensive income			—						—						—						—						(28.7)						(28.7)						—						(28.7)
Comprehensive income																																	95.3												95.3
Issuance of common stock under employee plans, net of tax withholdings			0.4						—						20.0						(1.6)						—						18.4						—						18.4
Stock repurchases			(1.0)						—						(8.1)						(91.9)						—						(100.0)						—						(100.0)
Stock-based compensation			—						—						29.5						—						—						29.5						—						29.5
Balance at the end of the third quarter of 2021			251.0						$	0.3					$	1,914.4					$	2,107.7					$	(140.6)					$	3,881.8					$	—					$	3,881.8

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			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 2019			249.9						$	0.2					$	1,692.8					$	1,602.8					$	(176.8)					$	3,119.0					$	1.4					$	3,120.4
Net income			—						—						—						61.9						—						61.9						—						61.9
Other comprehensive loss			—						—						—						—						(54.1)						(54.1)						—						(54.1)
Comprehensive income																																	7.8												7.8
Issuance of common stock under employee plans, net of tax withholdings			1.0						—						20.4						(7.7)						—						12.7						—						12.7
Stock repurchases			(1.2)						—						(8.4)						(41.6)						—						(50.0)						—						(50.0)
Stock-based compensation			—						—						11.8						—						—						11.8						—						11.8
Noncontrolling interest investment			—						—						—						—						—						—						(0.4)						(0.4)
Balance at the end of the first quarter of 2020			249.7						$	0.2					$	1,716.6					$	1,615.4					$	(230.9)					$	3,101.3					$	1.0					$	3,102.3
Net income			—						—						—						63.0						—						63.0						0.2						63.2
Other comprehensive income			—						—						—						—						32.6						32.6						—						32.6
Comprehensive income																																	95.6												95.8
Issuance of common stock under employee plans, net of tax withholdings			0.5						—						1.9						(6.0)						—						(4.1)						—						(4.1)
Stock-based compensation			—						—						19.1						—						—						19.1						—						19.1
Balance at the end of the second quarter of 2020			250.2						$	0.2					$	1,737.6					$	1,672.4					$	(198.3)					$	3,211.9					$	1.2					$	3,213.1
Net income			—						—						—						84.7						—						84.7						0.1						84.8
Other comprehensive income			—						—						—						—						37.3						37.3						—						37.3
Comprehensive income																																	122.0												122.1
Issuance of common stock under employee plans, net of tax withholdings			0.6						0.1						17.8						(1.2)						—						16.7						—						16.7
Stock repurchases			(0.6)						—						(4.1)						(23.9)						—						(28.0)												(28.0)
Stock-based compensation			—						—						27.4						—						—						27.4												27.4
Balance at the end of the third quarter of 2020			250.2						$	0.3					$	1,778.7					$	1,732.0					$	(161.0)					$3,350.0						$	1.3					$	3,351.3

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

			First Three Quarters of
(In millions)			2021						2020
Cash flow from operating activities:
Net income			$	377.5					$	209.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense			30.9						29.4
Amortization expense			105.1						120.2
Deferred income taxes			(8.9)						12.1
Stock-based compensation			95.1						57.1
Divestitures (gain) loss, net			(43.6)						2.5
Other, net			5.7						26.2
(Increase) decrease in assets:
Accounts receivable, net			33.7						108.4
Inventories			(28.4)						(19.1)
Other current and non-current assets			(42.5)						12.3
Increase (decrease) in liabilities:
Accounts payable			50.8						(26.7)
Accrued compensation and benefits			25.1						26.1
Deferred revenue			(8.4)						(42.0)
Other current and non-current liabilities			3.1						(32.7)
Net cash provided by operating activities			595.2						483.7
Cash flow from investing activities:
Acquisitions of businesses, net of cash acquired			(1.2)						(198.9)
Purchases of property and equipment			(31.4)						(45.1)
Net proceeds from sale of businesses			67.3						—
Net proceeds from sale of property and equipment			20.7						0.4
Other, net			(4.4)						(0.5)
Net cash provided by (used in) investing activities			51.0						(244.1)
Cash flow from financing activities:
Issuance of common stock, net of tax withholdings			1.1						25.3
Repurchases of common stock			(140.0)						(78.0)
Proceeds from debt and revolving credit lines			198.9						1,030.1
Payments on debt and revolving credit lines			(421.7)						(1,209.6)
Other, net			(1.5)						(10.9)
Net cash used in financing activities			(363.2)						(243.1)
Effect of exchange rate changes on cash and cash equivalents			(7.5)						(1.7)
Net increase (decrease) in cash and cash equivalents			275.5						(5.2)
Cash and cash equivalents - beginning of period			237.7						189.2
Cash and cash equivalents - end of period			$	513.2					$	184.0

See accompanying Notes to the Condensed Consolidated Financial Statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

NOTE 1. OVERVIEW AND ACCOUNTING POLICIES

Company and Background

Trimble Inc. (“we” or “our” or “us”) is incorporated in the State of Delaware since October 2016.

Basis of Presentation

The Condensed Consolidated Financial Statements include our results and 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 prepared our interim Condensed Consolidated Financial Statements that accompany these notes in conformity with U.S. generally accepted accounting principles (“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 26, 2021 (the “2020 Form 10-K”).

We have made estimates and judgments affecting the amounts reported in our Condensed Consolidated Financial Statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. 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 2020 Form 10-K where we include additional information about our significant accounting policies and the methods and assumptions used in our estimates.

We use a 52- to 53-week year ending on the Friday nearest to December 31. The third quarter of 2021 and 2020 ended on October 1, 2021 and October 2, 2020. Both 2021 and 2020 are 52-week years. Unless otherwise stated, all dates refer to these periods.

Recently Issued Accounting Pronouncements not yet Adopted

Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

In October 2021, the Financial Accounting Standards Board (FASB) issued amendments to improve, simplify, and provide consistency for recognition and measurement of acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments require that an acquirer recognize and measure such contract assets and contract liabilities under Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. The amendments also allow for election of certain practical expedients, which are applied on an acquisition-by-acquisition basis. The new accounting amendments are effective for the Company beginning in 2023 with prospective application. Early adoption is permitted, including in any interim period, and if elected, the amendments are applied retrospectively for any acquisitions that occurred in the year of interim adoption.

We will evaluate the impacts of the amendments on our Condensed Consolidated Financial Statements based on the timing and nature of any future acquisitions.

Recently Adopted Accounting Pronouncements

Income Taxes - Simplifying the Accounting for Income Taxes

In December 2019, the FASB issued amendments to the accounting for Income Taxes to reduce complexity by removing certain exceptions and implementing targeted simplifications. We adopted the new standard on a prospective basis at the beginning of 2021. The adoption did not have a material impact on our Condensed Consolidated Financial Statements.

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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 has been cancelled.

Under the 2021 Stock Repurchase Program, we may repurchase shares from time to time, subject to business and market conditions and other investment opportunities, 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 third quarter and first three quarters of 2021, we repurchased approximately 1.0 million and 1.6 million shares of common stock in open market purchases at an average price of $92.74 and $85.38 per share for a total of $100.0 million and $140.0 million. At the end of the third quarter of 2021, the 2021 Stock Repurchase Program had remaining authorized funds of $650.0 million.

During the third quarter and first three quarters of 2020, we repurchased approximately 0.6 million and 1.8 million shares of common stock in open market purchases at an average price of $48.70 and $43.03 per share for a total of $28.0 million and $78.0 million under the 2017 Stock Repurchase Program.

Stock repurchases are reflected as a decrease to common stock 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 is charged to retained earnings. Common stock repurchases under the program are recorded based upon the trade date for accounting purposes.

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NOTE 3. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The following table presents a summary of our total intangible assets:

As of			Third Quarter of 2021																		Year End 2020
			Gross																		Gross
			Carrying						Accumulated						Net Carrying						Carrying						Accumulated						Net Carrying
(In millions)			Amount						Amortization						Amount						Amount						Amortization						Amount
Developed product technology			$	973.6					$	(733.4)					$	240.2					$	1,118.2					$	(811.1)					$	307.1
Customer relationships			652.0						(419.7)						232.3						681.1						(419.3)						261.8
Trade names and trademarks			46.6						(46.6)						—						58.3						(51.9)						6.4
Distribution rights and other intellectual property			38.2						(37.2)						1.0						45.8						(41.0)						4.8
			$	1,710.4					$	(1,236.9)					$	473.5					$	1,903.4					$	(1,323.3)					$	580.1

The estimated future amortization expense of purchased intangible assets as of the end of the third quarter of 2021 was as follows:

(In millions)
2021 (Remaining)			$	33.3
2022			118.7
2023			106.8
2024			81.3
2025			47.1
Thereafter			86.3
Total			$	473.5

Goodwill

The changes in the carrying amount of goodwill by segment for the first three quarters of 2021 were as follows:

			Buildings and Infrastructure						Geospatial						Resources and Utilities						Transportation						Total
(In millions)
Balance as of year end 2020			$	1,997.4					$	415.7					$	453.8					$	1,009.6					$	3,876.5
Decrease from the sale of businesses			(14.7)						—						(3.3)						—						(18.0)
Foreign currency translation and other adjustments			(8.2)						(7.9)						(6.6)						(12.2)						(34.9)
Balance as of the end of the third quarter of 2021			$	1,974.5					$	407.8					$	443.9					$	997.4					$	3,823.6

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NOTE 4. INVENTORIES

Inventories consisted of the following:

			Third Quarter of						Year End
As of			2021						2020
(In millions)
Raw materials			$	112.2					$	95.6
Work-in-process			13.2						16.0
Finished goods			198.0						190.1
Total inventories			$	323.4					$	301.7

NOTE 5. SEGMENT INFORMATION

Our operating segments are determined 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.

			Reporting Segments
			Buildings and Infrastructure						Geospatial						Resources and Utilities						Transportation						Total
(In millions)
Third Quarter of 2021
Revenue			$	349.7					$	205.4					$	184.8					$	161.5					$	901.4
Acquired deferred revenue adjustment			—						—						—						—						—
Segment revenue			$	349.7					$	205.4					$	184.8					$	161.5					$	901.4
Operating income			$	101.6					$	64.9					$	60.6					$	15.4					$	242.5
Acquired deferred revenue adjustment			—						—						—						—						—
Amortization of acquired capitalized commissions			(1.0)						—						—						(0.1)						(1.1)
Segment operating income			$	100.6					$	64.9					$	60.6					$	15.3					$	241.4
Depreciation expense			$	1.7					$	1.8					$	1.4					$	1.0					$	5.9
Third Quarter of 2020
Revenue			$	317.4					$	165.6					$	150.2					$	158.9					$	792.1
Acquired deferred revenue adjustment			—						—						0.4						0.3						0.7
Segment revenue			$	317.4					$	165.6					$	150.6					$	159.2					$	792.8
Operating income			$	97.2					$	51.4					$	53.9					$	8.3					$	210.8
Acquired deferred revenue adjustment			—						—						0.4						0.3						0.7
Amortization of acquired capitalized commissions			(1.3)						—						—						—						(1.3)
Segment operating income			$	95.9					$	51.4					$	54.3					$	8.6					$	210.2
Depreciation expense			$	2.0					$	1.5					$	1.5					$	0.9					$	5.9

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First Three Quarters of 2021
Revenue			$	1,057.4					$	606.8					$	587.5					$	481.4					$	2,733.1
Acquired deferred revenue adjustment			0.2						—						—						0.1						0.3
Segment revenue			$	1,057.6					$	606.8					$	587.5					$	481.5					$	2,733.4
Operating income			$	304.1					$	179.7					$	211.2					$	36.6					$	731.6
Acquired deferred revenue adjustment			0.2						—						—						0.1						0.3
Amortization of acquired capitalized commissions			(3.2)						—						—						(0.2)						(3.4)
Segment operating income			$	301.1					$	179.7					$	211.2					$	36.5					$	728.5
Depreciation expense			$	5.3					$	5.3					$	4.4					$	3.0					$	18.0
First Three Quarters of 2020
Revenue			$	909.4					$	457.0					$	472.1					$	479.5					$	2,318.0
Acquired deferred revenue adjustment			0.2						—						2.6						1.2						$	4.0
Segment revenue			$	909.6					$	457.0					$	474.7					$	480.7					$	2,322.0
Operating income			$	245.9					$	119.3					$	167.8					$	38.8					571.8
Acquired deferred revenue adjustment			0.2						—						2.6						1.2						4.0
Amortization of acquired capitalized commissions			(4.0)						—						(0.1)						(0.1)						(4.2)
Segment operating income			$	242.1					$	119.3					$	170.3					$	39.9					$	571.6
Depreciation expense			$	6.1					$	4.4					$	4.1					$	3.1					$	17.7

			Reporting Segments
			Buildings and Infrastructure						Geospatial						Resources and Utilities						Transportation						Total
(In millions)
As of the end of the Third Quarter of 2021
Accounts receivable, net			$	194.8					$	136.8					$	103.1					$	145.8					$	580.5
Inventories			66.0						132.2						59.8						65.4						323.4
Goodwill			1,974.5						407.8						443.9						997.4						3,823.6
As of Year End 2020
Accounts receivable, net			$	260.1					$	117.5					$	91.2					$	151.7					$	620.5
Inventories			59.1						120.1						49.0						73.5						301.7
Goodwill			1,997.4						415.7						453.8						1,009.6						3,876.5

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

			Third Quarter of												First Three Quarters of
			2021						2020						2021						2020
(In millions)
Consolidated segment operating income			$	241.4					$	210.2					$	728.5					$	571.6
Unallocated general corporate expenses			(26.7)						(18.4)						(76.0)						(48.7)
Acquired deferred revenue adjustment			—						(0.7)						(0.3)						(4.0)
Amortization of acquired capitalized commissions			1.1						1.3						3.4						4.2
Amortization of purchased intangible assets			(34.3)						(40.0)						(105.1)						(120.2)
Acquisition / divestiture items			(0.2)						(3.7)						(10.3)						(16.4)
Stock-based compensation / deferred compensation			(32.1)						(32.0)						(99.1)						(61.9)
Restructuring and other costs			(1.7)						(14.7)						(7.9)						(26.7)
Consolidated operating income			147.5						102.0						433.2						297.9
Total non-operating income (expense), net			9.2						(5.6)						23.3						(31.2)
Consolidated income before taxes			$	156.7					$	96.4					$	456.5					$	266.7

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)
Third Quarter of 2021
North America			$	200.4					$	84.8					$	51.5					$	125.0					$	461.7
Europe			95.2						68.3						80.2						20.3						264.0
Asia Pacific			47.9						40.2						14.7						8.3						111.1
Rest of World			6.2						12.1						38.4						7.9						64.6
Total segment revenue			$	349.7					$	205.4					$	184.8					$	161.5					$	901.4
Third Quarter of 2020
North America			$	179.5					$	64.8					$	42.5					$	128.4					$	415.2
Europe			85.5						56.9						62.5						18.5						223.4
Asia Pacific			45.3						35.0						16.8						8.7						105.8
Rest of World			7.1						8.9						28.8						3.6						48.4
Total segment revenue			$	317.4					$	165.6					$	150.6					$	159.2					$	792.8
First Three Quarters of 2021
North America			$	612.4					$	254.5					$	165.5					$	372.8					$	1,405.2
Europe			290.5						200.9						279.6						65.1						836.1
Asia Pacific			137.3						117.2						50.8						23.6						328.9
Rest of World			17.4						34.2						91.6						20.0						163.2
Total segment revenue			$	1,057.6					$	606.8					$	587.5					$	481.5					$	2,733.4
First Three Quarters of 2020
North America			$	527.2					$	179.3					$	148.0					$	377.2					$	1,231.7
Europe			245.1						152.7						216.2						58.3						672.3
Asia Pacific			118.8						97.1						48.3						26.2						290.4
Rest of World			18.5						27.9						62.2						19.0						127.6
Total segment revenue			$	909.6					$	457.0					$	474.7					$	480.7					$	2,322.0

Total revenue in the United States as included in the Condensed Consolidated Statements of Income was $415.2 million and $1,265.3 million and $377.5 million and $1,125.0 million for the third quarter and first three quarters of 2021 and 2020, respectively. No single customer or country other than the United States accounted for 10% or more of Trimble’s total revenue.

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NOTE 6. DEBT

Debt consisted of the following:

As of												Third Quarter of												Year End
Instrument						Date of Issuance						2021									2020
(In millions)												Effective interest rate
Senior Notes:
2023 Senior Notes, 4.15%, due June 2023						June 2018						4.36%			$	300.0								$	300.0
2028 Senior Notes, 4.90%, due June 2028						June 2018						5.04%			600.0									600.0
2024 Senior Notes, 4.75%, due December 2024						November 2014						4.95%			400.0									400.0
Credit Facilities:
Uncommitted facilities, floating rate												0.36%			29.1									255.8
Promissory notes and other debt															0.1									0.1
Unamortized discount and issuance costs															(7.3)									(8.7)
Total debt															1,321.9									1,547.2
Less: Short-term debt															29.1									255.8
Long-term debt															$	1,292.8								$	1,291.4

Each of our debt agreements requires us to maintain compliance with certain debt covenants, all of which we complied with at the end of the third quarter of 2021.

Debt Maturities

At the end of the third quarter of 2021, our debt maturities based on outstanding principal were as follows (in millions):

Year Payable
2021 (Remaining)			$	29.1
2022			—
2023			300.1
2024			400.0
2025			—
Thereafter			600.0
Total			$	1,329.2

Senior Notes

All of our senior notes are unsecured obligations. Interest on the senior notes is payable semi-annually in June and December of each year. Additional details are unchanged from the information disclosed in Note 6, “Debt” of the 2020 Form 10-K.

2018 Credit Facilities

At the end of the third quarter of 2021, we had access to a $1.25 billion unsecured revolving credit facility maturing in May 2023, which may be used for working capital and general corporate purposes, including permitted acquisitions. As part of the credit facility, we may request an additional term loan facility up to $500.0 million prior to the maturity of the credit facility and subject to approval.

Uncommitted Facilities

At the end of the third quarter of 2021, we had two $75.0 million, one €100.0 million, and one £55.0 million revolving credit facilities, which are uncommitted (the “uncommitted facilities”). Generally, these uncommitted facilities may be redeemed upon demand. Borrowings under uncommitted facilities are classified as short-term debt in the Condensed Consolidated Balance Sheet.

For further information, refer to Note 6 “Debt” of the 2020 Form 10-K.

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NOTE 7. FAIR VALUE MEASUREMENTS

The following table summarizes the fair values of financial instruments at fair value on a recurring basis for the periods indicated and determined using the following inputs:

			Fair Values as of the end of the Third Quarter of 2021																								Fair Values at the end of 2020
			Quoted prices in Active Markets for Identical Assets						Significant Other Observable Inputs						Significant Unobservable Inputs												Quoted prices in Active Markets for Identical Assets						Significant Other Observable Inputs						Significant Unobservable Inputs
(In millions)			(Level I)						(Level II)						(Level III)						Total						(Level I)						(Level II)						(Level III)						Total
Assets
Deferred compensation plan (1)			$	42.9					$	—					$	—					$	42.9					$	41.9					$	—					$	—					$	41.9
Derivatives (2)			—						0.2						—						0.2						—						0.9						—						0.9
Total assets measured at fair value			$	42.9					$	0.2					$	—					$	43.1					$	41.9					$	0.9					$	—					$	42.8
Liabilities
Deferred compensation plan (1)			$	42.9					$	—					$	—					$	42.9					$	41.9					$	—					$	—					$	41.9
Derivatives (2)			—						0.5						—						0.5						—						0.5						—						0.5
Contingent consideration (3)			—						—						12.0						12.0						—						—						12.3						12.3
Total liabilities measured at fair value			$	42.9					$	0.5					$	12.0					$	55.4					$	41.9					$	0.5					$	12.3					$	54.7

(1) Represents a self-directed, non-qualified deferred compensation plan for certain executives and other highly compensated employees that are included in Other non-current assets and Other non-current liabilities on our Condensed Consolidated Balance Sheets. The plan is invested in actively traded mutual funds and individual stocks valued using observable quoted prices in active markets.

(2) Represents forward currency exchange contracts that are included in Other current assets and Other current liabilities on our Condensed Consolidated Balance Sheets.

(3) Represents arrangements to pay the former owners of certain companies that we acquired that are included in Other current liabilities on our Condensed Consolidated Balance Sheets. The fair values are estimated using scenario-based methods or option pricing methods based upon estimated future revenues, gross margins, or other milestones.

Additional Fair Value Information

The total estimated fair value of all outstanding financial instruments that are not recorded at fair value on a recurring basis (debt) was approximately $1.5 billion and $1.8 billion at the end of the third quarter of 2021 and at the end of 2020.

The fair value of the senior notes was determined based on observable market prices in less active markets and is categorized accordingly as Level II. The uncommitted facilities, promissory notes, and other debt are all short-term in nature; therefore, the amounts reported in our Condensed Consolidated Balance Sheet approximate their fair value. The fair values do not indicate the amount we would currently have to pay to extinguish any of this debt.

NOTE 8. DEFERRED COSTS TO OBTAIN CUSTOMER CONTRACTS

Deferred costs to obtain customer contracts at the end of the third quarter of 2021 and at the end of 2020 were $55.0 million and $51.3 million. These costs are included in Other non-current assets in the Condensed Consolidated Balance Sheets.

Amortization expense related to deferred costs to obtain customer contracts for the third quarter and the first three quarters of 2021 and 2020 was $6.3 million and $18.7 million and $5.7 million and $16.8 million, respectively. This expense is included in Sales and marketing expense in the Condensed Consolidated Statements of Income.

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NOTE 9. PRODUCT WARRANTIES

We accrue for warranty costs as part of our cost of sales based on associated material product costs, technical support, labor costs, and costs incurred by third parties performing work on our behalf. Our expected future costs are primarily estimated based upon historical trends in the volume of product returns within the warranty period and the costs to repair or replace the equipment. When products sold include warranty provisions, they are covered by a warranty for periods ranging generally from one year to two years.

Accrued warranty expense at the end of the third quarter of 2021 and at the end of 2020 was $17.9 million and $13.8 million, and is included in Other current liabilities in our Condensed Consolidated Balance Sheet.

NOTE 10. DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS

Deferred Revenue

Changes to our deferred revenue during the third quarter and first three quarters of 2021 and 2020 were as follows:

			Third Quarter of												First Three Quarters of
(In millions)			2021						2020						2021						2020
Beginning balance of the period			$	606.1					$	531.0					$	613.8					$	541.9
Revenue recognized			(92.3)						(87.6)						(471.8)						(419.5)
Net deferred revenue activity			75.2						58.2						447.0						379.2
Ending balance of the period			$	589.0					$	501.6					$	589.0					$	501.6

Remaining Performance Obligations

At the end of the third quarter of 2021, approximately $1.6 billion of revenue is expected to be recognized from remaining performance obligations for which goods or services have not been delivered, primarily subscription, software, and software maintenance, and to a lesser extent, hardware and professional services contracts. We expect to recognize $1.2 billion or 75% of our remaining performance obligations as revenue during the next 12 months, and the remainder thereafter.

NOTE 11. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income attributable to Trimble Inc. by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to Trimble Inc. by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan, restricted stock units, and contingently issuable shares.

The following table shows the computation of basic and diluted earnings per share:

			Third Quarter of												First Three Quarters of
			2021						2020						2021						2020
(In millions, except per share amounts)
Numerator:
Net income attributable to Trimble Inc.			$	124.0					$	84.7					$	377.4					$	209.6
Denominator:
Weighted average number of common shares used in basic earnings per share			251.8						250.7						251.5						250.4
Effect of dilutive securities			2.7						2.1						2.8						1.5
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share			254.5						252.8						254.3						251.9
Basic earnings per share			$	0.49					$	0.34					$	1.50					$	0.84
Diluted earnings per share			$	0.49					$	0.34					$	1.48					$	0.83
Antidilutive weighted average shares (1)			0.1						0.3						—						1.1

(1) Antidilutive shares are excluded from the calculation of diluted shares and diluted earnings per share because their impact would increase the diluted earnings per share.

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NOTE 12. INCOME TAXES

Our effective income tax rate for the third quarter of 2021 was 20.9%, as compared to 12.0% in the corresponding period in 2020. The increase was primarily due to a tax benefit from reserve releases related to the expiration of the U.S. federal statute of limitations in the third quarter of 2020. For the first three quarters of 2021, our effective income tax rate was 17.3%, as compared to 21.3% in the corresponding period in 2020. The decrease was primarily due to one-time tax benefits from a foreign deferred tax asset and income tax refund, as well as an increased tax benefit from stock-based compensation deductions.

We and our subsidiaries are subject to U.S. federal, state, and foreign income taxes. Currently, we are in different stages of multiple year examinations by various state and foreign taxing authorities. While we believe our reserves are more likely than not to be adequate to cover final resolution of all open tax matters, it is reasonably possible that future obligations related to these matters could arise.

Unrecognized tax benefits of $46.8 million and $47.8 million at the end of the third quarter of 2021 and at the end of 2020, if recognized, would favorably affect the effective income tax rate in future periods. At the end of the third quarter of 2021 and at the end of 2020, we accrued interest and penalties of $10.3 million and $9.6 million. Although timing of the resolution and/or closure of audits is not certain, we do not believe that our gross unrecognized tax benefits would materially change in the next twelve months.

NOTE 13. C****OMMITMENTS AND CONTINGENCIES

Commitments

At the end of the third quarter of 2021, we had unconditional purchase obligations of approximately $696.3 million as compared to $241.1 million at the end of 2020. The increases were primarily related to investments in our platform associated with our Connect and Scale 2025 strategy and non-cancellable inventory commitments which increased due to extension of lead times and the growth of our hardware business.

Litigation

From time to time, we are involved in litigation arising in the ordinary course of our business. There are no material legal proceedings, other than ordinary routine litigation incidental to the business, that we or any of our subsidiaries is a party, or that any of our or our subsidiaries' property is subject.

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