Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

NOTE 8. 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 that provide solutions in a variety of survey, construction, infrastructure, and geospatial applications.

• Field Solutions — Consists of products that provide solutions in a variety of agriculture, geographic information systems (GIS), utilities, and energy distribution applications.

• 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
	Engineering and Construction		Field Solutions		Mobile Solutions			Advanced Devices		Total
(Dollars in thousands)
Three Months Ended September 30, 2011
Segment revenue	$	241,106	$	91,106	$	58,101		$	27,120	$	417,433
Operating income		42,634		31,030		2,503			3,970		80,137
Three Months Ended October 1, 2010
Segment revenue	$	189,598	$	67,240	$	37,692		$	23,680	$	318,210
Operating income (loss)		36,589		21,027		(83	)		4,073		61,606
Nine Months Ended September 30, 2011
Segment revenue	$	667,808	$	318,188	$	142,747		$	80,152	$	1,208,895
Operating income (loss)		112,400		126,078		(1,515	)		10,441		247,404
Nine Months Ended October 1, 2010
Segment revenue	$	535,657	$	243,299	$	113,839		$	77,793	$	970,588
Operating income		89,317		89,320		2,140			14,879		195,656
As of September 30, 2011
Accounts receivable	$	175,273	$	60,248	$	34,608		$	17,541	$	287,670
Inventories		126,552		39,822		31,207			18,100		215,681
Goodwill		708,639		69,623		510,382			23,836		1,312,480
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

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

	Three Months Ended						Nine Months Ended
	September 30, 2011			October 1, 2010			September 30, 2011			October 1, 2010
(Dollars in thousands)
Consolidated segment operating income	$	80,137		$	61,606		$	247,404		$	195,656
Unallocated corporate expense		(16,302	)		(14,935	)		(50,192	)		(42,074	)
Amortization of purchased intangible assets		(24,106	)		(14,432	)		(56,747	)		(42,165	)
Acquisition cost		(7,281	)		(569	)		(12,775	)		(3,071	)
Consolidated operating income		32,448			31,670			127,690			108,346
Non-operating income (expense), net		(2,563	)		6,659			8,674			10,480
Consolidated income before taxes	$	29,885		$	38,329		$	136,364		$	118,826

Unallocated corporate expense includes general corporate expense, amortization of acquisition-related inventory step-up and restructuring costs.