REPORTING SEGMENT AND GEOGRAPHIC INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company's Chief Executive Officer (our chief operating decision maker or "CODM") in deciding how to allocate resources and assess performance. The CODM evaluates each segment’s performance and allocates resources based on segment operating income before income taxes and corporate allocations. The Company and each of its segments employ consistent accounting policies. In each of its segments, the Company sells many individual products. For this reason it is impracticable to segregate and identify revenue for each of the individual products or group of products. Stock-based compensation is shown in the aggregate within unallocated corporate expense and is not reflected in the segment results, which is consistent with the way the CODM evaluates each segment's performance and allocates resources.

Prior to fiscal 2017, the Company operated its business in four reportable segments - Engineering and Construction, Field Solutions, Mobile Solutions, and Advanced Devices. In March 2017, the Company effected a change in the reporting of its segment financial results to better reflect the Company’s customer base and end markets. As a result of the Company’s evolution, the CODM changed the information he regularly reviews to allocate resources and assess performance. Beginning with the first fiscal quarter of 2017, the Company reports its financial performance based on four new reportable segments - Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation.

The Company’s reportable segments are described below:


•	Buildings and Infrastructure: This segment primarily serves customers working in architecture, engineering, construction, geospatial and government.


•	Geospatial: This segment primarily serves customers working in surveying, engineering, government, and land management.


•	Resources and Utilities: This segment primarily serves customers working in agriculture, forestry, and utilities.


•	Transportation: This segment primarily serves customers working in transportation, including transportation and logistics, automotive, rail, and military aviation.

The following tables present revenue, operating income, depreciation expense and identifiable assets for the four segments. Operating income is revenue less cost of sales and operating expenses, excluding unallocated corporate expenses, restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition and divestiture items, and executive transition costs. The identifiable assets that the CODM views by segment are accounts receivable, inventories and goodwill.



Fiscal Years	2017		2016		2015
(In millions)
Buildings and Infrastructure
Revenue	$	834.9	$	743.5	$	688.6
Operating income	179.9		133.9		108.2
Depreciation expense	6.2		7.0		7.8
Geospatial
Revenue	$	661.2	$	634.7	$	672.8
Operating income	130.9		120.8		135.3
Depreciation expense	5.4		6.5		6.4
Resources and Utilities
Revenue	$	476.9	$	395.7	$	381.8
Operating income	136.3		118.4		109.9
Depreciation expense	3.2		2.0		1.9
Transportation
Revenue	$	681.2	$	588.3	$	547.2
Operating income	120.6		102.9		106.5
Depreciation expense	5.2		5.5		5.2
Total
Revenue	$	2,654.2	$	2,362.2	$	2,290.4
Operating income	567.7		476.0		459.9
Depreciation expense	20.0		21.0		21.3



At the End of Fiscal Year	2017		2016
(In millions)
Buildings and Infrastructure
Accounts receivable	$	118.5	$	104.7
Inventories	62.1		51.3
Goodwill	706.8		663.7
Geospatial
Accounts receivable	$	117.7	$	108.3
Inventories	110.7		100.4
Goodwill	415.3		405.1
Resources and Utilities
Accounts receivable	$	76.9	$	65.5
Inventories	45.3		31.0
Goodwill	314.5		217.7
Transportation
Accounts receivable	$	101.7	$	76.3
Inventories	53.7		36.1
Goodwill	850.5		791.1
Total
Accounts receivable	$	414.8	$	354.8
Inventories	271.8		218.8
Goodwill	2,287.1		2,077.6

A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows:



Fiscal Years	2017			2016			2015
(In millions)
Consolidated segment operating income	$	567.7		$	476.0		$	459.9
Unallocated corporate expense (1)	(87.4		)	(70.5		)	(70.0		)
Restructuring charges (2)	(10.5		)	(13.3		)	(12.8		)
Stock-based compensation	(64.8		)	(52.6		)	(50.1		)
Amortization of purchased intangible assets	(148.8		)	(150.8		)	(162.4		)
Amortization of acquisition-related inventory step-up	(2.8		)	—			—
Acquisition and divestiture items	(7.4		)	(6.8		)	(9.9		)
Executive transition costs	—			(1.0		)	—
Litigation costs	—			—			(0.3		)
Consolidated operating income	246.0			181.0			154.4
Non-operating income (expense), net	13.1			(4.3		)	(2.6		)
Consolidated income before taxes	$	259.1		$	176.7		$	151.8

(1) Unallocated corporate expense includes general corporate expense.

(2) Restructuring charges primarily consist of severance and benefits, resulting from employee headcount reductions in connection with the Company's restructuring programs related to decisions to streamline processes and reduce the cost structure. As of the end of fiscal 2017, the Company's restructuring liability was $1.4 million, which is expected to be settled in fiscal 2018. Restructuring liabilities are reported within Other current liabilities on the Consolidated Balance Sheets.

The geographic distribution of Trimble’s revenue and long-lived assets is summarized in the tables below. Other non-US geographies include Canada, and countries in South and Central America, the Middle East, and Africa. Revenue is defined as revenue from external customers.



Fiscal Years	2017		2016		2015
(In millions)
Revenue (1):
United States	$	1,285.7	$	1,156.0	$	1,142.1
Europe	677.1		574.9		557.2
Asia Pacific	378.3		352.6		321.1
Other non-US countries	313.1		278.7		270.0
Total consolidated revenue	$	2,654.2	$	2,362.2	$	2,290.4


(1)	Revenue is attributed to countries based on the location of the customer.

No single customer or country other than the United States accounted for 10% or more of Trimble’s total revenue in fiscal years 2017, 2016 and 2015. No single customer accounted for 10% or more of Trimble's accounts receivable as of fiscal years ended 2017 and 2016.

Property and equipment, net by geographic area was as follows:



At the End of Fiscal Year	2017		2016
(In millions)
Property and equipment, net:
United States	$	131.7	$	120.4
Europe	33.1		15.3
Asia Pacific and other non-US countries	9.2		8.5
Total property and equipment, net	$	174.0	$	144.2