Trimble Inc. Amends 2023 10-K Over Audit Control Concerns

TL;DR

Trimble's auditor found control issues pre-PCAOB inspection; filing amended to address.

AI Summary

Trimble Inc. is filing an amendment (10-K/A) to its 2023 annual report, originally filed on February 26, 2024. This amendment addresses concerns raised by its independent auditor, Ernst & Young LLP (EY), regarding the design and execution of certain internal controls identified in preparation for a PCAOB inspection. The specific nature of these control deficiencies and their financial impact are detailed within the filing.

Why It Matters

This filing indicates potential issues with Trimble's internal financial reporting controls, which could impact investor confidence and regulatory scrutiny.

Risk Assessment

Risk Level: medium — The amendment addresses concerns about internal control deficiencies identified by the auditor, which could signal underlying issues in financial reporting processes.

Key Players & Entities

• Trimble Inc. (company) — Filer of the 10-K/A amendment
• Ernst & Young LLP (company) — Trimble's independent registered public accounting firm
• PCAOB (company) — Public Company Accounting Oversight Board
• February 26, 2024 (date) — Date of original 10-K filing
• May 3, 2024 (date) — Date of disclosure of auditor concerns

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value TRMB NASDAQ Global Select Mar

Filing Documents

• trmb-20231229.htm (10-K/A) — 1484KB
• ex231202310ka.htm (EX-23.1) — 5KB
• ex311202310ka.htm (EX-31.1) — 10KB
• ex312202310ka.htm (EX-31.2) — 10KB
• ex321202310ka.htm (EX-32.1) — 5KB
• ex322202310ka.htm (EX-32.2) — 5KB
• trmb-20231229_g1.jpg (GRAPHIC) — 22KB
• 0000864749-25-000011.txt ( ) — 10148KB
• trmb-20231229.xsd (EX-101.SCH) — 59KB
• trmb-20231229_cal.xml (EX-101.CAL) — 140KB
• trmb-20231229_def.xml (EX-101.DEF) — 337KB
• trmb-20231229_lab.xml (EX-101.LAB) — 768KB
• trmb-20231229_pre.xml (EX-101.PRE) — 572KB
• trmb-20231229_htm.xml (XML) — 1797KB

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 1

Controls and Procedures

Item 9A Controls and Procedures 32 PART IV

Exhibits and Financial Statement Schedules

Item 15 Exhibits and Financial Statement Schedules 35

Signatures

Signatures 38 Table of Contents PART II

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data TRIMBLE INC. INDEX TO FINANCIAL STATEMENTS Consolidated Balance Sheets 1 Consolidated Statements of Income 2 Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Stockholders' Equity 4 Consolidated Statements of Cash Flows 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Note 1. Description of Business and Accounting Policies 6 Note 2. Earnings per Share 11 Note 3. Acquisitions 11 Note 4. Divestitures 13 Note 5. Intangible Assets and Goodwill 14 Note 6. Certain Balance Sheet Components 15 Note 7. Reporting Segment and Geographic Information 16 Note 8. Debt 19 Note 9. Leases 20 Note 10. Commitments and Contingencies 21 Note 11. Fair Value Measurements 22 Note 12. Deferred Revenue and Remaining Performance Obligations 23 Note 13. Income Taxes 23 Note 14. Employee Stock Benefit Plans 26 Note 15. Common Stock Repurchase 28 Note 16. Subsequent Event 28 Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 29 Table of Contents Index to Financial Statements TRIMBLE INC. CONSOLIDATED BALANCE SHEETS At the End of Year 2023 2022 (In millions, except par value) ASSETS Current assets: Cash and cash equivalents $ 229.8 $ 271.0 Accounts receivable, net 706.6 643.3 Inventories 235.7 402.5 Prepaid expenses 89.8 73.7 Other current assets 147.8 127.7 Assets held for sale 421.2 — Total current assets 1,830.9 1,518.2 Property and equipment, net 202.5 219.0 Operating lease right-of-use assets 124.0 121.2 Goodwill 5,350.6 4,137.9 Other purchased intangible assets, net 1,243.5 498.1 Deferred income tax assets 412.3 438.4 Other non-current assets 375.5 336.2 Total assets $ 9,539.3 $ 7,269.0 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 530.4 $ 300.0 Accounts payable 165.3 175.5 Accrued compensation and benefits 181.2 159.4 Deferred revenue 663.1 639.1 Income taxes payable 39.7 23.7 Other current liabilities 201.3 164.4 Liabilities held for sale 48.3 — Total current liabilities 1,829.3 1,462.1 Long-term debt 2,536.2 1,220.0 Deferred revenue, non-current 98.3 98.5 Deferred income tax liabilities 287.8 157.8 Operating lease liabilities 121.9 105.1 Other non-current liabili

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES Trimble Inc., ("we" or "our" or "us") is incorporated in the State of Delaware since October 2016. We are a leading provider of technology solutions that enable professionals and field mobile workers to improve or transform their work processes. We focus on transforming the way the world works by delivering products and services that connect the physical and digital worlds. We generate revenue primarily through the sale of our hardware, software, maintenance and support, professional services, and subscriptions. Basis of Presentation These Consolidated Financial Statements include our results of 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 use a 52–53 week fiscal year ending on the Friday nearest to December 31. Fiscal 2023, 2022, and 2021 were all 52-week years ending on December 29, 2023, December 30, 2022, and December 31, 2021. Unless otherwise stated, all dates refer to our fiscal year and fiscal periods. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates and assumptions are used for (i) revenue recognition, including determining the nature and timing of satisfaction of performance obligations and determining standalone selling price ("SSP") of performance obligations; (ii) inventory valuation; (iii) valuation of long-lived assets and their estimated useful lives; (iv) goodwill and other long-lived asset impairment analyses; (v) stock-based compensation; and (vi) income taxes. We base our estimates on historical experience and various other assumptions we believe to be

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View this 10-K/A filing on SEC EDGAR