Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We determined our operating segments 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 2022
Segment revenue	$	363.6	$	184.2	$	191.7	$	145.4	$	884.9
Segment operating income	96.7		61.5		64.2		16.0		238.4
Depreciation expense	1.4		1.4		1.4		0.8		5.0
Third Quarter of 2021
Segment revenue	$	349.7	$	205.4	$	184.8	$	161.5	$	901.4
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
First Three Quarters of 2022
Segment revenue	$	1,143.8	$	585.4	$	636.4	$	454.2	$	2,819.8
Segment operating income	318.8		177.2		212.3		37.0		745.3
Depreciation expense	4.6		4.5		4.3		2.7		16.1
First Three Quarters of 2021
Segment revenue	$	1,057.6	$	606.8	$	587.5	$	481.5	$	2,733.4
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

	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
As of the end of the Third Quarter of 2022
Accounts receivable, net	$	220.8	$	142.3	$	80.1	$	122.9	$	566.1
Inventories	88.6		148.2		90.2		64.1		391.1
Goodwill	2,264.3		373.4		420.7		978.7		4,037.1
As of Year End 2021
Accounts receivable, net	$	246.8	$	134.0	$	112.9	$	131.1	$	624.8
Inventories	79.3		136.4		67.4		80.2		363.3
Goodwill	2,141.4		403.6		440.8		995.7		3,981.5

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
	2022		2021		2022		2021
(In millions)
Consolidated segment operating income	$	238.4	$	241.4	$	745.3	$	728.5
Unallocated general corporate expenses	(28.5)		(26.7)		(91.6)		(76.0)
Purchase accounting adjustments	(31.0)		(33.2)		(97.9)		(102.0)
Acquisition / divestiture items	(9.1)		(0.2)		(20.3)		(10.3)
Stock-based compensation / deferred compensation	(31.7)		(32.1)		(82.9)		(99.1)
Restructuring and other costs	(15.7)		(1.7)		(38.4)		(7.9)
Consolidated operating income	122.4		147.5		414.2		433.2
Total non-operating (expense) income, net	(4.5)		9.2		63.8		23.3
Consolidated income before taxes	$	117.9	$	156.7	$	478.0	$	456.5

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 is consistent with the Reporting Segment tables above.

	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Third Quarter of 2022
North America	$	235.8	$	84.1	$	55.5	$	113.0	$	488.4
Europe	67.6		52.9		79.6		18.1		218.2
Asia Pacific	52.8		33.8		8.6		7.1		102.3
Rest of World	7.4		13.4		48.0		7.2		76.0
Total segment revenue	$	363.6	$	184.2	$	191.7	$	145.4	$	884.9
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
First Three Quarters of 2022
North America	$	710.6	$	255.4	$	178.8	$	354.9	$	1,499.7
Europe	263.9		185.4		291.3		58.2		798.8
Asia Pacific	149.6		108.6		41.3		22.1		321.6
Rest of World	19.7		36.0		125.0		19.0		199.7
Total segment revenue	$	1,143.8	$	585.4	$	636.4	$	454.2	$	2,819.8
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

Total revenue in the United States as included in the Condensed Consolidated Statements of Income was $444.5 million and $415.2 million for the third quarter of 2022 and 2021, and $1,358.9 million and $1,265.3 million for the first three quarters of 2022 and 2021. No single customer or country other than the United States accounted for 10% or more of Trimble’s total revenue.