Segment Information

6 Months Ended

Jul. 01, 2011

Segment Information

Segment Information

NOTE 7. 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 products currently used by survey and construction professionals in the field for positioning, data collection, field computing, data management, and machine guidance and control. The applications served include surveying, road, runway, construction, site preparation, and building construction.

• Field Solutions — Consists of products that provide solutions in a variety of agriculture and geographic information systems (GIS) applications. In agriculture, these include precise land leveling and machine guidance systems. In GIS, these include handheld devices and software that enable the collection of data on assets for a variety of governmental and private entities.

• Mobile Solutions — Consists of products that enable end-users to monitor and manage their mobile assets by communicating location and activity-relevant information from the field to the office. The Company offers a range of products that address a number of sectors of this market including truck fleets, security, and public safety vehicles.

• 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 (loss), and identifiable assets for the four segments. Operating income (loss) is revenue less cost of sales and operating expense, excluding general corporate expense, amortization of purchased intangibles, 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									Total
	Engineering and Construction		Field Solutions		Mobile Solutions			Advanced Devices
(Dollars in thousands)
Three Months Ended July 1, 2011
Segment revenue	$	236,668	$	104,029	$	40,224		$	26,248	$	407,169
Operating income (loss)		46,987		42,543		(2,684	)		2,607		89,453
Three Months Ended July 2, 2010
Segment revenue	$	188,441	$	80,158	$	38,188		$	26,576	$	333,363
Operating income		33,921		28,980		324			5,181		68,406
Six Months Ended July 1, 2011
Segment revenue	$	426,702	$	227,082	$	84,645		$	53,033	$	791,462
Operating income (loss)		69,766		95,048		(4,018	)		6,470		167,266
Six Months Ended July 2, 2010
Segment revenue	$	346,059	$	176,059	$	76,147		$	54,113	$	652,378
Operating income		52,728		68,293		2,223			10,806		134,050
As of July 1, 2011
Accounts receivable	$	163,007	$	51,433	$	26,103		$	16,633	$	257,176
Inventories		134,339		41,536		18,395			21,810		216,080
Goodwill		483,094		26,332		360,505			24,583		894,514
As of December 31, 2010
Accounts receivable	$	131,808	$	52,065	$	24,806		$	14,141	$	222,820
Inventories		123,780		33,964		16,721			18,387		192,852
Goodwill		432,364		26,211		348,166			21,996		828,737

Unallocated corporate expense includes general corporate expense, amortization of acquisition-related inventory step-up and restructuring costs. A reconciliation of the Company's consolidated segment operating income to consolidated income before income taxes is as follows:

	Three Months Ended						Six Months Ended
	July 1, 2011			July 2, 2010			July 1, 2011			July 2, 2010
(Dollars in thousands)
Consolidated segment operating income	$	89,453		$	68,406		$	167,266		$	134,050
Unallocated corporate expense		(17,621	)		(12,155	)		(32,739	)		(27,329	)
Amortization of purchased intangible assets		(16,576	)		(13,916	)		(32,641	)		(27,733	)
Acquisition costs		(3,689	)		(1,774	)		(6,644	)		(2,312	)
Consolidated operating income		51,567			40,561			95,242			76,676
Non-operating income, net		8,631			286			11,237			3,821
Consolidated income before taxes	$	60,198		$	40,847		$	106,479		$	80,497