10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 28, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                                   to                                                          

Commission File Number 1-7724

Snap-on Incorporated

(Exact name of registrant as specified in its charter)

Delaware			39-0622040
(State of incorporation)			(I.R.S. Employer Identification No.)
2801 80th Street	Kenosha	Wisconsin	53143
(Address of principal executive offices)			(Zip code)

(262) 656-5200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	SNA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:

Class	Outstanding at October 11, 2019
Common Stock, $1.00 par value	54,846,349 shares

TABLE OF CONTENTS 

		Page
Part I: Financial Information
Item 1.	Financial Statements
	Condensed Consolidated Statements of Earnings (unaudited) – Three and Nine Months Ended September 28, 2019, and September 29, 2018	3
	Condensed Consolidated Statements of Comprehensive Income (unaudited) – Three and Nine Months Ended September 28, 2019, and September 29, 2018	4
	Condensed Consolidated Balance Sheets (unaudited) – September 28, 2019, and December 29, 2018	5
	Condensed Consolidated Statements of Equity (unaudited) – Three and Nine Months Ended September 28, 2019, and September 29, 2018	7
	Condensed Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended September 28, 2019, and September 29, 2018	9
	Notes to Condensed Consolidated Financial Statements (unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	57
Item 4.	Controls and Procedures	58
Part II: Other Information
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 6.	Exhibits	60
	Signatures	61

2

PART I. FINANCIAL INFORMATION

Item 1: Financial Statements

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Amounts in millions, except per share data)

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net sales	$	901.8	$	898.1	$	2,774.8	$	2,788.2
Cost of goods sold	(453.7)		(444.2)		(1,381.3)		(1,375.6)
Gross profit	448.1		453.9		1,393.5		1,412.6
Operating expenses	(280.4)		(280.8)		(848.5)		(868.7)
Operating earnings before financial services	167.7		173.1		545.0		543.9
Financial services revenue	84.1		82.0		253.8		247.0
Financial services expenses	(23.1)		(22.7)		(70.1)		(73.0)
Operating earnings from financial services	61.0		59.3		183.7		174.0
Operating earnings	228.7		232.4		728.7		717.9
Interest expense	(12.0)		(12.4)		(36.9)		(38.0)
Other income (expense) – net	2.8		(1.0)		6.4		1.2
Earnings before income taxes and equity earnings	219.5		219.0		698.2		681.1
Income tax expense	(50.4)		(51.5)		(162.9)		(164.9)
Earnings before equity earnings	169.1		167.5		535.3		516.2
Equity earnings (loss), net of tax	0.1		(0.1)		0.9		0.7
Net earnings	169.2		167.4		536.2		516.9
Net earnings attributable to noncontrolling interests	(4.6)		(4.2)		(13.3)		(12.0)
Net earnings attributable to Snap-on Incorporated	$	164.6	$	163.2	$	522.9	$	504.9
Net earnings per share attributable to Snap-on Incorporated:
Basic	$	2.99	$	2.90	$	9.47	$	8.95
Diluted	2.96		2.85		9.34		8.78
Weighted-average shares outstanding:
Basic	55.0		56.3		55.2		56.4
Effect of dilutive securities	0.7		1.0		0.8		1.1
Diluted	55.7		57.3		56.0		57.5
Dividends declared per common share	$	0.95	$	0.82	$	2.85	$	2.46

See Notes to Condensed Consolidated Financial Statements.

3

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in millions)

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Comprehensive income:
Net earnings	$	169.2	$	167.4	$	536.2	$	516.9
Other comprehensive income (loss):
Foreign currency translation*	(47.3)		2.0		(48.1)		(56.5)
Unrealized cash flow hedges, net of tax:
Other comprehensive loss before reclassifications	—		—		—		(0.8)
Reclassification of cash flow hedges to net earnings	(0.4)		(0.4)		(1.1)		(1.2)
Defined benefit pension and postretirement plans:
Amortization of net unrecognized losses and prior service credits included in net periodic benefit cost	5.9		7.8		17.6		23.4
Income tax benefit	(1.4)		(1.8)		(4.2)		(5.6)
Net of tax	4.5		6.0		13.4		17.8
Total comprehensive income	$	126.0	$	175.0	$	500.4	$	476.2
Comprehensive income attributable to noncontrolling interests	(4.6)		(4.2)		(13.3)		(12.0)
Comprehensive income attributable to Snap-on Incorporated	$	121.4	$	170.8	$	487.1	$	464.2

* There is no reclassification adjustment as there was no sale or liquidation of any foreign entity during any period presented.

See Notes to Condensed Consolidated Financial Statements.

4

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except share data)

(Unaudited)

	September 28, 2019		December 29, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	167.5	$	140.9
Trade and other accounts receivable – net	684.8		692.6
Finance receivables – net	533.5		518.5
Contract receivables – net	102.7		98.3
Inventories – net	753.5		673.8
Prepaid expenses and other assets	105.9		92.8
Total current assets	2,347.9		2,216.9
Property and equipment:
Land	31.4		31.7
Buildings and improvements	392.6		368.6
Machinery, equipment and computer software	977.5		944.4
	1,401.5		1,344.7
Accumulated depreciation and amortization	(889.7)		(849.6)
Property and equipment – net	511.8		495.1
Operating lease right-of-use assets	52.4		—
Deferred income tax assets	54.4		64.7
Long-term finance receivables – net	1,084.7		1,074.4
Long-term contract receivables – net	348.6		344.9
Goodwill	920.1		902.2
Other intangibles – net	225.2		232.9
Other assets	51.3		42.0
Total assets	$	5,596.4	$	5,373.1

See Notes to Condensed Consolidated Financial Statements.

5

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except share data)

(Unaudited)

	September 28, 2019		December 29, 2018
LIABILITIES AND EQUITY
Current liabilities:
Notes payable	$	232.3	$	186.3
Accounts payable	205.8		201.1
Accrued benefits	46.8		52.0
Accrued compensation	66.1		71.5
Franchisee deposits	76.8		67.5
Other accrued liabilities	362.3		373.6
Total current liabilities	990.1		952.0
Long-term debt	947.5		946.0
Deferred income tax liabilities	45.8		41.4
Retiree health care benefits	29.9		31.8
Pension liabilities	115.3		171.3
Operating lease liabilities	34.3		—
Other long-term liabilities	108.3		112.0
Total liabilities	2,271.2		2,254.5
Commitments and contingencies (Note 14)
Equity
Shareholders’ equity attributable to Snap-on Incorporated:
Preferred stock (authorized 15,000,000 shares of $1 par value; none outstanding)	—		—
Common stock (authorized 250,000,000 shares of $1 par value; issued 67,423,030 and 67,415,091 shares, respectively)	67.4		67.4
Additional paid-in capital	374.5		359.4
Retained earnings	4,668.3		4,257.6
Accumulated other comprehensive loss	(543.9)		(462.2)
Treasury stock at cost (12,576,741 and 11,804,310 shares, respectively)	(1,262.5)		(1,123.4)
Total shareholders’ equity attributable to Snap-on Incorporated	3,303.8		3,098.8
Noncontrolling interests	21.4		19.8
Total equity	3,325.2		3,118.6
Total liabilities and equity	$	5,596.4	$	5,373.1

See Notes to Condensed Consolidated Financial Statements.

6

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Amounts in millions, except share data)

(Unaudited)

The following summarizes the changes in total equity for the three month period ended September 28, 2019:

	Shareholders’ Equity Attributable to Snap-on Incorporated
	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Noncontrolling Interests		Total Equity
Balance at June 29, 2019	$	67.4	$	371.7	$	4,556.1	$	(500.7)	$	(1,206.4)	$	20.6	$	3,308.7
Net Earnings for the three months ended September 28, 2019	—		—		164.6		—		—		4.6		169.2
Other comprehensive loss	—		—		—		(43.2)		—		—		(43.2)
Cash dividends – $0.95 per share	—		—		(52.3)		—		—		—		(52.3)
Stock compensation plans	—		2.8		—		—		3.6		—		6.4
Share repurchases – 400,000 shares	—		—		—		—		(59.7)		—		(59.7)
Other	—		—		(0.1)		—		—		(3.8)		(3.9)
Balance at September 28, 2019	$	67.4	$	374.5	$	4,668.3	$	(543.9)	$	(1,262.5)	$	21.4	$	3,325.2

The following summarizes the changes in total equity for the nine month period ended September 28, 2019:

	Shareholders’ Equity Attributable to Snap-on Incorporated
	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Noncontrolling Interests		Total Equity
Balance at December 29, 2018	$	67.4	$	359.4	$	4,257.6	$	(462.2)	$	(1,123.4)	$	19.8	$	3,118.6
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	—		—		45.9		(45.9)		—		—		—
Balance at December 30, 2018	$	67.4	$	359.4	$	4,303.5	$	(508.1)	$	(1,123.4)	$	19.8	$	3,118.6
Net Earnings for the nine months ended September 28, 2019	—		—		522.9		—		—		13.3		536.2
Other comprehensive loss	—		—		—		(35.8)		—		—		(35.8)
Cash dividends – $2.85 per share	—		—		(157.6)		—		—		—		(157.6)
Stock compensation plans	—		15.1		—		—		28.1		—		43.2
Share repurchases – 1,060,000 shares	—		—		—		—		(167.2)		—		(167.2)
Other	—		—		(0.5)		—		—		(11.7)		(12.2)
Balance at September 28, 2019	$	67.4	$	374.5	$	4,668.3	$	(543.9)	$	(1,262.5)	$	21.4	$	3,325.2

See Notes to Condensed Consolidated Financial Statements.

7

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Amounts in millions, except share data)

(Unaudited)

The following summarizes the changes in total equity for the three month period ended September 29, 2018:

	Shareholders’ Equity Attributable to Snap-on Incorporated
	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Noncontrolling Interests		Total Equity
Balance at June 30, 2018	$	67.4	$	352.6	$	4,018.9	$	(377.3)	$	(968.4)	$	18.4	$	3,111.6
Net Earnings for the three months ended September 29, 2018	—		—		163.2		—		—		4.2		167.4
Other comprehensive income	—		—		—		7.6		—		—		7.6
Cash dividends – $0.82 per share	—		—		(46.1)		—		—		—		(46.1)
Stock compensation plans	—		8.3		—		—		24.1		—		32.4
Share repurchases – 493,000 shares	—		—		—		—		(85.7)		—		(85.7)
Other	—		—		(0.2)		—		—		(2.9)		(3.1)
Balance at September 29, 2018	$	67.4	$	360.9	$	4,135.8	$	(369.7)	$	(1,030.0)	$	19.7	$	3,184.1

The following summarizes the changes in total equity for the nine month period ended September 29, 2018:

	Shareholders’ Equity Attributable to Snap-on Incorporated
	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Noncontrolling Interests		Total Equity
Balance at December 30, 2017	$	67.4	$	343.2	$	3,772.3	$	(329.0)	$	(900.0)	$	18.4	$	2,972.3
Net Earnings for the nine months ended September 29, 2018	—		—		504.9		—		—		12.0		516.9
Other comprehensive loss	—		—		—		(40.7)		—		—		(40.7)
Cash dividends – $2.46 per share	—		—		(138.9)		—		—		—		(138.9)
Stock compensation plans	—		17.7		—		—		54.4		—		72.1
Share repurchases – 1,139,000 shares	—		—		—		—		(184.4)		—		(184.4)
Other	—		—		(2.5)		—		—		(10.7)		(13.2)
Balance at September 29, 2018	$	67.4	$	360.9	$	4,135.8	$	(369.7)	$	(1,030.0)	$	19.7	$	3,184.1

See Notes to Condensed Consolidated Financial Statements.

8

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)

(Unaudited)

	Nine Months Ended
	September 28, 2019		September 29, 2018
Operating activities:
Net earnings	$	536.2	$	516.9
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation	52.2		52.0
Amortization of other intangibles	16.3		19.2
Provision for losses on finance receivables	35.8		41.5
Provision for losses on non-finance receivables	14.4		9.4
Stock-based compensation expense	18.7		22.6
Deferred income tax provision (benefit)	10.7		(6.9)
Loss on sales of assets	0.8		0.7
Loss on early extinguishment of debt	—		7.8
Changes in operating assets and liabilities, net of effects of acquisitions:
Increase in trade and other accounts receivable	(8.4)		(26.5)
Increase in contract receivables	(12.9)		(27.9)
Increase in inventories	(97.3)		(49.3)
Increase in prepaid and other assets	(17.0)		(1.1)
Increase in accounts payable	9.2		25.2
Decrease in accruals and other liabilities	(80.8)		(35.0)
Net cash provided by operating activities	477.9		548.6
Investing activities:
Additions to finance receivables	(628.1)		(643.5)
Collections of finance receivables	565.1		564.0
Capital expenditures	(77.8)		(68.5)
Acquisitions of businesses, net of cash acquired	(38.9)		(3.0)
Disposals of property and equipment	0.3		0.3
Other	(1.3)		1.3
Net cash used by investing activities	(180.7)		(149.4)
Financing activities:
Proceeds from issuance of long-term debt	—		395.4
Repayments of long-term debt	—		(457.8)
Repayment of notes payable	—		(16.8)
Net increase in other short-term borrowings	46.9		0.9
Cash dividends paid	(157.6)		(138.9)
Purchases of treasury stock	(167.2)		(184.4)
Proceeds from stock purchase and option plans	26.2		54.1
Other	(18.5)		(19.6)
Net cash used by financing activities	(270.2)		(367.1)
Effect of exchange rate changes on cash and cash equivalents	(0.4)		(1.9)
Increase in cash and cash equivalents	26.6		30.2
Cash and cash equivalents at beginning of year	140.9		92.0
Cash and cash equivalents at end of period	$	167.5	$	122.2
Supplemental cash flow disclosures:
Cash paid for interest	$	(44.8)	$	(49.7)
Net cash paid for income taxes	(140.5)		(148.1)

See Notes to Condensed Consolidated Financial Statements.

9

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Summary of Accounting Policies

Principles of consolidation and presentation

The Condensed Consolidated Financial Statements include the accounts of Snap-on Incorporated and its wholly-owned and majority-owned subsidiaries (collectively, “Snap-on” or the “company”). These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Snap-on’s 2018 Annual Report on Form 10-K for the fiscal year ended December 29, 2018 (“2018 year end”). The company’s 2019 fiscal third quarter ended on September 28, 2019; the 2018 fiscal third quarter ended on September 29, 2018. Each of the company’s 2019 and 2018 fiscal first, second and third quarters contained 13 weeks of operating results. Snap-on’s Condensed Consolidated Financial Statements are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three and nine month periods ended September 28, 2019, and September 29, 2018, have been made. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Financial Instruments

The fair value of the company’s derivative financial instruments is generally determined using quoted prices in active markets for similar assets and liabilities. The carrying value of the company’s non-derivative financial instruments either approximates fair value, due to their short-term nature, or the amount disclosed for fair value is based upon a discounted cash flow analysis or quoted market values. See Note 9 for further information on financial instruments.

New Accounting Standards

The following new accounting pronouncements were adopted in fiscal year 2019:

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in this update also made certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements.

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2018-02, Income Statement - Reporting Comprehensive Income - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220), which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (the “Tax Act”). The adoption of this ASU resulted in an increase of $45.9 million to retained earnings on the company’s Condensed Consolidated Statements of Equity with an offsetting decrease in Accumulated Other Comprehensive Income (Loss).

10

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 is intended to represent an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. Topic 842, which supersedes most current lease guidance, affects any entity that enters into a lease with some specified scope exemptions. Snap-on adopted Topic 842 using the modified retrospective approach, using a date of initial application of December 30, 2018. Snap-on elected the package of practical expedients permitted under the standard, which also allowed the company to carry forward historical lease classifications. The company also elected the practical expedient related to treating lease and non-lease components as a single lease component for all equipment leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the Right-of-Use (“ROU”) assets and lease liabilities. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements. See note 15 for further information on leases.

The following new accounting pronouncements, and related impacts on adoption, are being evaluated by the company:

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which is designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a significant impact on the company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020; the ASU allows for early adoption in any year end after issuance of the update. The adoption of this ASU is not expected to have a significant impact on the company’s consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-13, is to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

The adoption of Topic 326 will require the company to record an estimate of all expected credit losses based on historical experience, current conditions, and a reasonable and supportable forecast. This guidance will replace the company's current incurred loss model, which uses current expected credit losses to estimate credit loss reserves. Topic 326 is expected to increase the company’s allowance for doubtful accounts as a result of recording reserves for expected losses, as well as extending the loss estimate period over the entire life of the receivable, in addition to losses deemed to be already incurred. Snap-on commenced its assessment of Topic 326 during the second half of 2018 and developed a comprehensive project plan that included representatives from the company’s business segments. The project plan includes analyzing the standard’s potential change on the company’s allowance for doubtful accounts reserves, identifying reporting requirements of the new standard, and identifying changes to the company’s business processes, systems and controls, including model development and validation, to support the accounting and disclosures under Topic 326. Upon adoption, the allowance for doubtful accounts is expected to increase with an offsetting adjustment, net of taxes, to retained earnings. Updates to the estimate each period after initial adoption will be recorded through provision expense. The extent of the impact upon adoption will depend on the composition of the company’s receivable portfolio and economic conditions at that date, as well as forecasted conditions thereafter. The credit risk of the portfolio and associated losses will not change upon adoption. The company continues to assess the impact this ASU will have on its consolidated financial statements.

Note 2: Revenue Recognition

Snap-on recognizes revenue from the sale of tools, diagnostic and equipment products and related services based on when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services.

11

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Revenue Disaggregation

The following table shows the consolidated revenues by revenue source:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Revenue from contracts with customers	$	896.2	$	892.7	$	2,758.4	$	2,772.3
Other revenues	5.6		5.4		16.4		15.9
Total net sales	901.8		898.1		2,774.8		2,788.2
Financial services revenue	84.1		82.0		253.8		247.0
Total revenues	$	985.9	$	980.1	$	3,028.6	$	3,035.2

Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for both intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

The following table represents external net sales disaggregated by geography, based on the customers’ billing addresses:

	For the Three Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	125.3	$	337.6	$	188.3	$	—	$	—	$	651.2
Europe	65.1		28.3		54.6		—		—		148.0
All other	66.6		19.3		16.7		—		—		102.6
External net sales	257.0		385.2		259.6		—		—		901.8
Intersegment net sales	78.3		—		63.1		—		(141.4)		—
Total net sales	335.3		385.2		322.7		—		(141.4)		901.8
Financial services revenue	—		—		—		84.1		—		84.1
Total revenue	$	335.3	$	385.2	$	322.7	$	84.1	$	(141.4)	$	985.9
* North America is comprised of the United States, Canada and Mexico.

12

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	For the Nine Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	355.8	$	1,039.3	$	575.7	$	—	$	—	$	1,970.8
Europe	214.8		101.7		176.4		—		—		492.9
All other	198.9		60.2		52.0		—		—		311.1
External net sales	769.5		1,201.2		804.1		—		—		2,774.8
Intersegment net sales	223.3		—		195.4		—		(418.7)		—
Total net sales	992.8		1,201.2		999.5		—		(418.7)		2,774.8
Financial services revenue	—		—		—		253.8		—		253.8
Total revenue	$	992.8	$	1,201.2	$	999.5	$	253.8	$	(418.7)	$	3,028.6

	For the Three Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	119.9	$	335.4	$	177.6	$	—	$	—	$	632.9
Europe	70.4		32.0		57.6		—		—		160.0
All other	65.4		22.4		17.4		—		—		105.2
External net sales	255.7		389.8		252.6		—		—		898.1
Intersegment net sales	74.5		—		61.8		—		(136.3)		—
Total net sales	330.2		389.8		314.4		—		(136.3)		898.1
Financial services revenue	—		—		—		82.0		—		82.0
Total revenue	$	330.2	$	389.8	$	314.4	$	82.0	$	(136.3)	$	980.1

	For the Nine Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	345.7	$	1,020.5	$	552.3	$	—	$	—	$	1,918.5
Europe	229.9		117.2		192.8		—		—		539.9
All other	206.0		68.7		55.1		—		—		329.8
External net sales	781.6		1,206.4		800.2		—		—		2,788.2
Intersegment net sales	218.0		—		194.3		—		(412.3)		—
Total net sales	999.6		1,206.4		994.5		—		(412.3)		2,788.2
Financial services revenue	—		—		—		247.0		—		247.0
Total revenue	$	999.6	$	1,206.4	$	994.5	$	247.0	$	(412.3)	$	3,035.2
* North America is comprised of the United States, Canada and Mexico.

13

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The following table represents external net sales disaggregated by customer type:

	For the Three Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	20.8	$	385.2	$	259.6	$	—	$	—	$	665.6
All other professionals	236.2		—		—		—		—		236.2
External net sales	257.0		385.2		259.6		—		—		901.8
Intersegment net sales	78.3		—		63.1		—		(141.4)		—
Total net sales	335.3		385.2		322.7		—		(141.4)		901.8
Financial services revenue	—		—		—		84.1		—		84.1
Total revenue	$	335.3	$	385.2	$	322.7	$	84.1	$	(141.4)	$	985.9

	For the Nine Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	64.8	$	1,201.2	$	804.1	$	—	$	—	$	2,070.1
All other professionals	704.7		—		—		—		—		704.7
External net sales	769.5		1,201.2		804.1		—		—		2,774.8
Intersegment net sales	223.3		—		195.4		—		(418.7)		—
Total net sales	992.8		1,201.2		999.5		—		(418.7)		2,774.8
Financial services revenue	—		—		—		253.8		—		253.8
Total revenue	$	992.8	$	1,201.2	$	999.5	$	253.8	$	(418.7)	$	3,028.6

	For the Three Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	21.4	$	389.8	$	252.6	$	—	$	—	$	663.8
All other professionals	234.3		—		—		—		—		234.3
External net sales	255.7		389.8		252.6		—		—		898.1
Intersegment net sales	74.5		—		61.8		—		(136.3)		—
Total net sales	330.2		389.8		314.4		—		(136.3)		898.1
Financial services revenue	—		—		—		82.0		—		82.0
Total revenue	$	330.2	$	389.8	$	314.4	$	82.0	$	(136.3)	$	980.1

14

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	For the Nine Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	69.5	$	1,206.4	$	800.2	$	—	$	—	$	2,076.1
All other professionals	712.1		—		—		—		—		712.1
External net sales	781.6		1,206.4		800.2		—		—		2,788.2
Intersegment net sales	218.0		—		194.3		—		(412.3)		—
Total net sales	999.6		1,206.4		994.5		—		(412.3)		2,788.2
Financial services revenue	—		—		—		247.0		—		247.0
Total revenue	$	999.6	$	1,206.4	$	994.5	$	247.0	$	(412.3)	$	3,035.2

Nature of Goods and Services

Snap-on derives net sales from a broad line of products and complementary services that are grouped into three categories: (i) tools; (ii) diagnostics, information and management systems; and (iii) equipment. The tools product category includes Snap-on’s hand tools, power tools, tool storage products and other similar products. The diagnostics, information and management systems product category includes handheld and PC-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer (“OEM”) purchasing facilitation services, and warranty management systems and analytics to help OEM dealerships manage and track performance. The equipment product category includes solutions for the service of vehicles and industrial equipment. Snap-on supports the sale of its diagnostics and vehicle service shop equipment by offering training programs as well as after-sales support to its customers. Through its financial services businesses, Snap-on also derives revenue from various financing programs designed to facilitate the sales of its products and support its franchise business.

Approximately 90% of Snap-on’s net sales are products sold at a point in time through ship-and-bill performance obligations that also includes service repair services. The remaining sales revenue is earned over time primarily on a subscription basis including software, extended warranty and other subscription service agreements.

Snap-on enters into contracts related to the selling of tools, diagnostic and repair information and equipment products and related services. At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services). To identify the performance obligations, Snap-on considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Contracts with customers are comprised of customer purchase orders, invoices and written contracts.

For certain performance obligations related to software subscriptions, extended warranty and other subscription agreements that are settled over time, Snap-on has elected not to disclose the value of unsatisfied performance obligations for: (i) contracts that have an original expected length of one year or less; (ii) contracts where revenue is recognized as invoiced; and (iii) contracts with variable consideration related to unsatisfied performance obligations.  The remaining duration of these unsatisfied performance obligations range from one month up to 60 months.  Snap-on had approximately $230.0 million of long-term contracts that have fixed consideration that extends beyond one year as of September 28, 2019. Snap-on expects to recognize approximately 50% of these contracts as revenue by the end of fiscal 2020, an additional 40% by the end of fiscal 2022 and the balance thereafter. 

15

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Contract Liabilities (Deferred Revenues)

Contract liabilities are recorded when cash payments are received in advance of Snap-on’s performance.  The timing of payment is typically on a monthly, quarterly or annual basis. The balance of total contract liabilities at September 28, 2019, and at December 29, 2018, was $67.2 million and $63.8 million, respectively.   The current portion of contract liabilities and the non-current portion are included in “Other accrued liabilities” and “Other long-term liabilities”, respectively, on the accompanying Condensed Consolidated Balance Sheets.  During the three and nine months ended September 28, 2019, Snap-on recognized revenue of $8.0 million and $43.2 million, respectively, that was included in the $63.8 million contract liability balance at December 29, 2018, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.  

Note 3: Acquisitions

On August 7, 2019, Snap-on acquired Cognitran Limited ("Cognitran") for a preliminary cash purchase price of $30.7 million (or $29.7 million, net of cash acquired). The preliminary purchase price is subject to change based upon finalization of a working capital adjustment that is expected to be completed in the fourth quarter of 2019. Cognitran, based in Chelmsford, United Kingdom, specializes in flexible, modular and highly scalable "Software as a Service" (SaaS) products for OEM customers and their dealers, focused on the creation and delivery of service, diagnostics, parts and repair information to OEM dealers and connected vehicle platforms.

As of September 28, 2019, the company recorded, on a preliminary basis, the $27.7 million excess of the purchase price over the fair value of the net assets acquired in "Goodwill" on the accompanying Condensed Consolidated Balance Sheets. The company anticipates completing the purchase accounting for the acquired net assets of Cognitran, including the potential identification and quantification of other intangible assets, in the first half of 2020.

On April 2, 2019, Snap-on acquired Power Hawk Technologies, Inc. (“Power Hawk”) for a cash purchase price of $7.9 million. Power Hawk, based in Rockaway, New Jersey, designs, manufactures and distributes rescue tools and related equipment for a variety of military, governmental and fire, rescue and emergency operations. As of the third quarter of 2019, the company has completed the purchase accounting valuations for the acquired net assets of Power Hawk, including intangible assets. The $6.4 million excess of the purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

On January 25, 2019, Snap-on acquired substantially all of the assets of TMB GeoMarketing Limited (“TMB”) for a cash purchase price of $1.3 million. TMB, based in Dorking, United Kingdom, designs planning software used by OEMs to optimize dealer locations and manage the performance of dealer outlets. The company completed the purchase accounting valuations for the acquired net assets of TMB during the first quarter of 2019. Substantially all of the purchase price was recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

On January 31, 2018, Snap-on acquired substantially all of the assets of George A. Sturdevant, Inc. (d/b/a Fastorq) for a cash purchase price of $3.0 million. Fastorq, based in New Caney, Texas, designs, assembles and distributes hydraulic torque and hydraulic tensioning products for use in critical industries. As of the second quarter of 2018, the company completed the purchase accounting valuations for the acquired net assets of Fastorq. The $2.6 million excess of the purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

For segment reporting purposes, the results of operations and assets of Cognitran and TMB have been included in the Repair Systems and Information Group since each respective acquisition date, and the results of operations and assets of Power Hawk and Fastorq have been included in the Commercial & Industrial Group since each respective acquisition date.

Pro forma financial information has not been presented for these acquisitions as the net effects were neither significant nor material to Snap-on’s results of operations or financial position. See Note 6 for further information on goodwill and other intangible assets.

16

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 4: Receivables

Trade and Other Accounts Receivable

Snap-on’s trade and other accounts receivable primarily arise from the sale of tools and diagnostic and equipment products to a broad range of industrial and commercial customers and to Snap-on’s independent franchise van channel on a non-extended-term basis with payment terms generally ranging from 30 to 120 days.

The components of Snap-on’s trade and other accounts receivable as of September 28, 2019, and December 29, 2018, are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Trade and other accounts receivable	$	705.0	$	710.1
Allowances for doubtful accounts	(20.2)		(17.5)
Total trade and other accounts receivable – net	$	684.8	$	692.6

Finance and Contract Receivables

Snap-on Credit LLC (“SOC”), the company’s financial services operation in the United States, originates extended-term finance and contract receivables on sales of Snap-on’s products sold through the U.S. franchisee and customer network and to certain other customers of Snap-on; Snap-on’s foreign finance subsidiaries provide similar financing internationally. Interest income on finance and contract receivables is included in “Financial services revenue” on the accompanying Condensed Consolidated Statements of Earnings.

Snap-on’s finance receivables are comprised of extended-term installment payment contracts to both technicians and independent shop owners (i.e., franchisees’ customers) to enable them to purchase tools and diagnostic and equipment products on an extended-term payment plan, generally with average payment terms of approximately four years. Finance receivables are generally secured by the underlying tools and/or diagnostic or equipment products financed.

Snap-on’s contract receivables, with payment terms of up to 10 years, are comprised of extended-term installment payment contracts to a broad base of customers worldwide, including shop owners, both independents and national chains, for their purchase of tools and diagnostic and equipment products. Contract receivables also include extended-term installment loans to franchisees to meet a number of financing needs, including working capital loans, loans to enable new franchisees to fund the purchase of the franchise and van leases, or the expansion of an existing franchise. Contract receivables are generally secured by the underlying tools and/or diagnostic or equipment products financed and, for installment loans to franchisees, other franchisee assets.

The components of Snap-on’s current finance and contract receivables as of September 28, 2019, and December 29, 2018, are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	553.3	$	538.1
Contract receivables	104.3		99.5
Total	657.6		637.6
Allowances for doubtful accounts:
Finance receivables	(19.8)		(19.6)
Contract receivables	(1.6)		(1.2)
Total	(21.4)		(20.8)
Total current finance and contract receivables – net	$	636.2	$	616.8
Finance receivables – net	$	533.5	$	518.5
Contract receivables – net	102.7		98.3
Total current finance and contract receivables – net	$	636.2	$	616.8

17

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of September 28, 2019, and December 29, 2018, are as follows: 

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	1,126.0	$	1,116.2
Contract receivables	353.0		348.0
Total	1,479.0		1,464.2
Allowances for doubtful accounts:
Finance receivables	(41.3)		(41.8)
Contract receivables	(4.4)		(3.1)
Total	(45.7)		(44.9)
Total long-term finance and contract receivables – net	$	1,433.3	$	1,419.3
Finance receivables – net	$	1,084.7	$	1,074.4
Contract receivables – net	348.6		344.9
Total long-term finance and contract receivables – net	$	1,433.3	$	1,419.3

Delinquency is the primary indicator of credit quality for finance and contract receivables. The entire receivable balance of a contract is considered delinquent when contractual payments become 30 days past due. Depending on the contract, payments for finance and contract receivables are due on a monthly or weekly basis. Weekly payments are converted into a monthly equivalent for purposes of calculating delinquency. Delinquencies are assessed at the end of each month following the monthly equivalent due date. Removal from delinquent status occurs when the cumulative number of monthly payments due has been received by the company.

Finance receivables are generally placed on nonaccrual status (nonaccrual of interest and other fees): (i) when a customer is placed on repossession status; (ii) upon receipt of notification of bankruptcy; (iii) upon notification of the death of a customer; or (iv) in other instances in which management concludes collectability is not reasonably assured. Finance receivables that are considered nonperforming include receivables that are on nonaccrual status and receivables that are generally more than 90 days past due.

Contract receivables are generally placed on nonaccrual status: (i) when a receivable is more than 90 days past due or at the point a customer’s account is placed on terminated status regardless of its delinquency status; (ii) upon notification of the death of a customer; or (iii) in other instances in which management concludes collectability is not reasonably assured. Contract receivables that are considered nonperforming include receivables that are on nonaccrual status and receivables that are generally more than 90 days past due.

The accrual of interest and other fees is resumed when the finance or contract receivable becomes contractually current and collection of all remaining contractual amounts due is reasonably assured. Finance and contract receivables are evaluated for impairment on a collective basis. A receivable is impaired when it is probable that all amounts related to the receivable will not be collected according to the contractual terms of the applicable agreement. Impaired finance and contract receivables are covered by the company’s respective allowances for doubtful accounts and are charged-off against the allowances when appropriate. As of September 28, 2019, and December 29, 2018, there were $28.2 million and $27.9 million, respectively, of impaired finance receivables, and there were $2.9 million and $6.0 million, respectively, of impaired contract receivables.

It is the general practice of Snap-on’s financial services business to not engage in contract or loan modifications. In limited instances, Snap-on’s financial services business may modify certain impaired receivables in troubled debt restructurings. The amount and number of restructured finance and contract receivables as of September 28, 2019, and December 29, 2018, were immaterial to both the financial services portfolio and the company’s results of operations and financial position.

18

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The aging of finance and contract receivables as of September 28, 2019, and December 29, 2018, is as follows:

(Amounts in millions)	30-59 Days Past Due		60-90 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Total Not Past Due		Total		Greater Than 90 Days Past Due and Accruing
September 28, 2019:
Finance receivables	$	18.0	$	11.2	$	19.9	$	49.1	$	1,630.2	$	1,679.3	$	15.7
Contract receivables	1.5		1.0		1.6		4.1		453.2		457.3		0.2
December 29, 2018:
Finance receivables	$	19.4	$	12.1	$	20.3	$	51.8	$	1,602.5	$	1,654.3	$	15.9
Contract receivables	1.7		1.2		5.2		8.1		439.4		447.5		0.2

The amount of performing and nonperforming finance and contract receivables based on payment activity as of September 28, 2019, and December 29, 2018, is as follows: 

	September 28, 2019				December 29, 2018
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Performing	$	1,651.1	$	454.4	$	1,626.4	$	441.5
Nonperforming	28.2		2.9		27.9		6.0
Total	$	1,679.3	$	457.3	$	1,654.3	$	447.5

The amount of finance and contract receivables on nonaccrual status as of September 28, 2019, and December 29, 2018, is as follows: 

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	12.5	$	12.0
Contract receivables	2.7		5.8

The following is a rollforward of the allowances for doubtful accounts for finance and contract receivables for the three and nine months ended September 28, 2019, and September 29, 2018:

	Three Months Ended September 28, 2019				Nine Months Ended September 28, 2019
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	60.9	$	5.0	$	61.4	$	4.3
Provision	11.4		1.9		35.8		4.0
Charge-offs	(13.0)		(1.0)		(41.9)		(2.7)
Recoveries	1.9		—		5.9		0.3
Currency translation	(0.1)		0.1		(0.1)		0.1
End of period	$	61.1	$	6.0	$	61.1	$	6.0

19

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	Three Months Ended September 29, 2018				Nine Months Ended September 29, 2018
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	59.0	$	4.8	$	56.5	$	4.6
Provision	12.1		0.4		41.5		1.5
Charge-offs	(13.3)		(0.7)		(43.7)		(1.8)
Recoveries	1.7		0.1		5.3		0.3
Currency translation	0.1		—		—		—
End of period	$	59.6	$	4.6	$	59.6	$	4.6

Note 5: Inventories

Inventories by major classification are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Finished goods	$	650.8	$	577.0
Work in progress	55.2		51.7
Raw materials	130.0		123.5
Total FIFO value	836.0		752.2
Excess of current cost over LIFO cost	(82.5)		(78.4)
Total inventories – net	$	753.5	$	673.8

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 58% and 61% of total inventories as of September 28, 2019, and December 29, 2018, respectively. The company accounts for its non-U.S. inventory on the FIFO method. As of September 28, 2019, approximately 32% of the company’s U.S. inventory was accounted for using the FIFO method and 68% was accounted for using the last-in, first-out (“LIFO”) method. There were no LIFO inventory liquidations in the three and nine months ended September 28, 2019, or September 29, 2018.

Note 6: Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by segment for the nine months ended September 28, 2019, are as follows:

(Amounts in millions)	Commercial & Industrial Group		Snap-on Tools Group		Repair Systems & Information Group		Total
Balance as of December 29, 2018	$	286.2	$	12.5	$	603.5	$	902.2
Currency translation	(11.7)		—		(5.8)		(17.5)
Acquisitions and related adjustments	6.4		—		29.0		35.4
Balance as of September 28, 2019	$	280.9	$	12.5	$	626.7	$	920.1

Goodwill of $920.1 million as of September 28, 2019, includes $27.7 million, on a preliminary basis, from the acquisition of Cognitran, $6.4 million from the acquisition of Power Hawk, which reflects the final purchase accounting that was completed in the third quarter of 2019, and $1.3 million from the acquisition of TMB. The goodwill from Power Hawk is included in the Commercial & Industrial Group and the goodwill from Cognitran and TMB is included in the Repair Systems and Information Group. The company anticipates completing the purchase accounting for the Cognitran acquisition, including the potential identification and quantification of other intangible assets, in the first half of 2020. See Note 3 for additional information on acquisitions.

20

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Additional disclosures related to other intangible assets are as follows:

	September 28, 2019				December 29, 2018
(Amounts in millions)	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Amortized other intangible assets:
Customer relationships	$	171.3	$	(114.3)	$	172.2	$	(107.6)
Developed technology	18.4		(18.3)		18.5		(18.3)
Internally developed software	165.1		(122.6)		156.6		(116.6)
Patents	37.3		(23.4)		35.7		(22.9)
Trademarks	3.3		(2.0)		3.2		(2.0)
Other	7.1		(3.0)		7.3		(2.9)
Total	402.5		(283.6)		393.5		(270.3)
Non-amortized trademarks	106.3		—		109.7		—
Total other intangible assets	$	508.8	$	(283.6)	$	503.2	$	(270.3)

As of September 28, 2019, the $171.3 million gross carrying value of customer relationships includes $0.9 million related to the Power Hawk acquisition.

Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2019; the evaluation of the testing did not result in any impairment. Significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to significant and long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, significant changes in key personnel or litigation, a significant and sustained decrease in share price and/or other events, including effects from the sale or disposal of a reporting unit, could require a provision for impairment of goodwill and/or other intangible assets in a future period. As of September 28, 2019, the company had no accumulated impairment losses.

The weighted-average amortization periods related to other intangible assets are as follows:

	In Years
Customer relationships	15
Developed technology	3
Internally developed software	6
Patents	7
Trademarks	5
Other	39

Snap-on is amortizing its customer relationships on both an accelerated and straight-line basis over a 15-year weighted-average life; the remaining intangibles are amortized on a straight-line basis. The weighted-average amortization period for all amortizable intangibles on a combined basis is 12 years.

The company’s customer relationships generally have contractual terms of three to five years and are typically renewed without significant cost to the company. The weighted-average 15-year life for customer relationships is based on the company’s historical renewal experience. Intangible asset renewal costs are expensed as incurred.

The aggregate amortization expense was $5.5 million and $16.3 million for the respective three and nine months ended September 28, 2019, and $6.2 million and $19.2 million for the respective three and nine months ended September 29, 2018. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $21.6 million in 2019, $19.2 million in 2020, $17.1 million in 2021, $14.0 million in 2022, $12.4 million in 2023, and $10.2 million in 2024.

21

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 7: Income Taxes

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.8% and 24.6% in the first nine months of 2019 and 2018, respectively.  During the first nine months of 2018, the Internal Revenue Service issued new guidance affecting the computation of the company’s 2017 federal income tax liability. As a result of this new guidance and additional analysis of the impacts of the Tax Act, the company revised its prior estimates and recorded $1.8 million and $3.9 million of net tax expense during the three and nine months ended September 29, 2018. The additional $3.9 million tax provision during the first nine months of 2018 increased the company’s effective tax rate for the period by 50 basis points.

Snap-on and its subsidiaries file income tax returns in the United States and in various state, local and foreign jurisdictions. It is reasonably possible that certain unrecognized tax benefits may either be settled with taxing authorities or the statutes of limitations for such items may lapse within the next 12 months, causing Snap-on’s gross unrecognized tax benefits to decrease by a range of zero to $2.5 million. Over the next 12 months, Snap-on anticipates taking certain tax positions on various tax returns for which the related tax benefit does not meet the recognition threshold. Accordingly, Snap-on’s gross unrecognized tax benefits may increase by a range of zero to $0.9 million over the next 12 months for uncertain tax positions expected to be taken in future tax filings.

Note 8: Short-term and Long-term Debt

Short-term and long-term debt as of September 28, 2019, and December 29, 2018, consisted of the following:

(Amounts in millions)	September 28, 2019		December 29, 2018
6.125% unsecured notes due 2021	$	250.0	$	250.0
3.25% unsecured notes due 2027	300.0		300.0
4.10% unsecured notes due 2048	400.0		400.0
Other debt*	229.8		182.3
	1,179.8		1,132.3
Less: notes payable
Commercial paper borrowings	(218.8)		(177.1)
Other notes	(13.5)		(9.2)
	(232.3)		(186.3)
Total long-term debt	$	947.5	$	946.0

* Includes the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

Notes payable of $232.3 million as of September 28, 2019, included $218.8 million of commercial paper borrowings and $13.5 million of other notes. As of 2018 year end, notes payable of $186.3 million included $177.1 million of commercial paper borrowings and $9.2 million of other notes.

On February 20, 2018, Snap-on commenced a tender offer to repurchase $200 million in principal amount of its unsecured 6.70% notes that were scheduled to mature on March 1, 2019 (the “2019 Notes”), with $26.1 million of the 2019 Notes tendered and repaid on February 27, 2018. On February 20, 2018, Snap-on also issued a notice of redemption for any remaining outstanding 2019 Notes not tendered, with the redemption completed on March 22, 2018. The total cash cost for this tender and redemption was $209.1 million, including accrued interest of $1.5 million. Snap-on recorded $7.8 million for the loss on the early extinguishment of debt related to the 2019 Notes, which included the redemption premium and other issuance costs associated with this debt in “Other income (expense) - net” on the accompanying Condensed Consolidated Statement of Earnings. See Note 16 for additional information on Other income (expense) - net.

On February 20, 2018, Snap-on sold, at a discount, $400 million of unsecured 4.10% long-term notes that mature on March 1, 2048 (the “2048 Notes”). Interest on the 2048 Notes accrues at a rate of 4.10% per year and is paid semi-annually. Snap-on used a portion of the $395.4 million of net proceeds from the sale of the 2048 Notes, reflecting $3.5 million of transaction costs, to repay the 2019 Notes. The remaining net proceeds were used to repay a portion of its then-outstanding commercial paper borrowings and for general corporate purposes.

22

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

On September 16, 2019, Snap-on entered into a five-year, $800 million multi-currency revolving credit facility that terminates on September 16, 2024 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of September 28, 2019. The Credit Facility amended and restated in its entirety Snap-on's previous $700 million multi-currency revolving credit facility that was set to terminate on December 15, 2020. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of Consolidated Net Debt to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of September 28, 2019, the company’s actual ratios of 0.21 and 0.96 respectively, were both within the permitted ranges set forth in this financial covenant. Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.

Note 9: Financial Instruments

Derivatives: All derivative instruments are reported in the Condensed Consolidated Financial Statements at fair value. Changes in the fair value of derivatives are recorded each period in earnings or on the accompanying Condensed Consolidated Balance Sheets, depending on whether the derivative is designated as part of a hedged transaction. Gains or losses on derivative instruments recorded in earnings are presented in the same Condensed Consolidated Statement of Earnings line that is used to present the earnings effect of the hedged item. Gains or losses on derivative instruments in accumulated other comprehensive income (loss) (“Accumulated OCI”) are reclassified to earnings in the period in which earnings are affected by the underlying hedged item.

The criteria used to determine if hedge accounting treatment is appropriate are: (i) the designation of the hedge to an underlying exposure; (ii) whether or not overall risk is being reduced; and (iii) if there is a correlation between the value of the derivative instrument and the underlying hedged item. Once a derivative contract is entered into, Snap-on designates the derivative as a fair value hedge, a cash flow hedge, a hedge of a net investment in a foreign operation, or a natural hedging instrument whose change in fair value is recognized as an economic hedge against changes in the value of the hedged item. Snap-on does not use derivative instruments for speculative or trading purposes.

The company is exposed to global market risks, including the effects of changes in foreign currency exchange rates, interest rates, and the company’s stock price, and therefore uses derivatives to manage financial exposures that occur in the normal course of business. The primary risks managed by using derivative instruments are foreign currency risk, interest rate risk and stock-based deferred compensation risk.

Foreign Currency Risk Management: Snap-on has significant international operations and is subject to certain risks inherent with foreign operations that include currency fluctuations. Foreign currency exchange risk exists to the extent that Snap-on has payment obligations or receipts denominated in currencies other than the functional currency, including intercompany loans denominated in foreign currencies. To manage these exposures, Snap-on identifies naturally offsetting positions and then purchases hedging instruments to protect the residual net exposures. Snap-on manages most of these exposures on a consolidated basis, which allows for netting of certain exposures to take advantage of natural offsets. Foreign currency forward contracts (“foreign currency forwards”) are used to hedge the net exposures. Gains or losses on net foreign currency hedges are intended to offset losses or gains on the underlying net exposures in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. Snap-on’s foreign currency forwards are typically not designated as hedges. The fair value changes of these contracts are reported in earnings as foreign exchange gain or loss, which is included in “Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings.

Interest Rate Risk Management: Snap-on aims to control funding costs by managing the exposure created by the differing maturities and interest rate structures of Snap-on’s borrowings through the use of interest rate swap agreements (“interest rate swaps”) and treasury lock agreements (“treasury locks”).

23

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Interest Rate Swaps: Snap-on enters into interest rate swaps to manage risks associated with changing interest rates related to the company’s fixed rate borrowings. Interest rate swaps are accounted for as fair value hedges. The differentials paid or received on interest rate swaps are recognized as adjustments to “Interest expense” on the accompanying Condensed Consolidated Statements of Earnings. The change in fair value of the designated and qualifying derivative is recorded in “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets. The notional amount of interest rate swaps outstanding and designated as fair value hedges was $100 million as of both September 28, 2019, and December 29, 2018.

Treasury locks: Snap-on uses treasury locks to manage the potential change in interest rates in anticipation of the issuance of fixed rate debt. Treasury locks are accounted for as cash flow hedges. The differentials to be paid or received on treasury locks related to the anticipated issuance of fixed rate debt are initially recorded in Accumulated OCI for derivative instruments that are designated and qualify as cash flow hedges. Upon the issuance of debt, the related amount in Accumulated OCI is released over the term of the debt and recognized as an adjustment to interest expense on the Condensed Consolidated Statements of Earnings.

Snap-on entered into a $300 million treasury lock in the fourth quarter of 2017 to manage changes in interest rates in anticipation of the issuance of fixed rate debt in the first quarter of 2018. In the first quarter of 2018, Snap-on settled the outstanding $300 million treasury lock after it was deemed to be an ineffective hedge related to the 2048 Notes, which were issued in February 2018. The $13.3 million gain on the settlement of the treasury lock was recorded in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. There were no treasury locks outstanding as of both September 28, 2019, and December 29, 2018. See Note 16 for additional information on Other income (expense) - net.

Stock-based Deferred Compensation Risk Management: Snap-on aims to manage market risk associated with the stock-based portion of its deferred compensation plans through the use of prepaid equity forward agreements (“equity forwards”). Equity forwards are used to aid in offsetting the potential mark-to-market effect on stock-based deferred compensation from changes in Snap-on’s stock price. Since stock-based deferred compensation liabilities increase as the company’s stock price rises and decrease as the company’s stock price declines, the equity forwards are intended to mitigate the potential impact on deferred compensation expense that may result from such mark-to-market changes. As of September 28, 2019, Snap-on had equity forwards in place intended to manage market risk with respect to 108,000 shares of Snap-on common stock associated with its deferred compensation plans.

Counterparty Risk: Snap-on is exposed to credit losses in the event of non-performance by the counterparties to its various financial agreements, including its foreign currency forward contracts, interest rate swap agreements, treasury lock agreements and prepaid equity forward agreements. Snap-on does not obtain collateral or other security to support financial instruments subject to credit risk, but monitors the credit standing of the counterparties and generally enters into agreements with financial institution counterparties with a credit rating of A- or better. Snap-on does not anticipate non-performance by its counterparties, but cannot provide assurances.

Fair Value of Financial Instruments: The fair values of financial instruments that do not approximate the carrying values in the financial statements are as follows:

	September 28, 2019				December 29, 2018
(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Finance receivables – net	$	1,618.2	$	1,912.4	$	1,592.9	$	1,845.4
Contract receivables – net	451.3		499.1		443.2		481.2
Long-term debt and notes payable	1,179.8		1,277.5		1,132.3		1,136.0

24

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The following methods and assumptions were used in estimating the fair value of financial instruments:

•Finance and contract receivables include both short-term and long-term receivables. The fair value estimates of finance and contract receivables are derived utilizing discounted cash flow analyses performed on groupings of receivables that are similar in terms of loan type and characteristics. The cash flow analyses consider recent prepayment trends where applicable. The cash flows are discounted over the average life of the receivables using a current market discount rate of a similar term adjusted for credit quality. Significant inputs to the fair value measurements of the receivables are unobservable and, as such, are classified as Level 3.

•Fair value of long-term debt was estimated, using Level 2 fair value measurements, based on quoted market values of Snap-on’s publicly traded senior debt. The carrying value of long-term debt includes adjustments related to fair value hedges. The fair value of notes payable approximates such instruments’ carrying value due to their short-term nature.

•The fair value of all other financial instruments, including trade and other accounts receivable, accounts payable and other financial instruments, approximates such instruments’ carrying value due to their short-term nature.

Note 10: Pension Plans

Snap-on’s net periodic pension cost included the following components: 

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Service cost	$	5.9	$	6.3	$	17.7	$	18.9
Interest cost	14.1		13.2		42.3		39.6
Expected return on plan assets	(22.8)		(22.6)		(68.3)		(66.5)
Amortization of unrecognized loss	6.3		8.2		18.8		24.6
Amortization of prior service credit	(0.2)		(0.3)		(0.6)		(0.9)
Net periodic pension cost	$	3.3	$	4.8	$	9.9	$	15.7

The components of net periodic pension cost, other than the service cost component, are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 16 for additional information on other income (expense) - net.

Snap-on intends to make contributions of $9.4 million to its foreign pension plans and $2.0 million to its domestic pension plans in 2019, as required by law. In the first nine months of 2019, Snap-on made $40.0 million of discretionary cash contributions to its domestic pension plans. Depending on market and other conditions, Snap-on may make additional discretionary cash contributions to its pension plans in the remainder of 2019.

Note 11: Postretirement Health Care Plans

Snap-on’s net periodic postretirement health care cost included the following components: 

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Interest cost	$	0.4	$	0.5	$	1.4	$	1.4
Expected return on plan assets	(0.1)		(0.2)		(0.5)		(0.6)
Amortization of unrecognized gain	(0.2)		(0.1)		(0.6)		(0.3)
Net periodic postretirement health care cost	$	0.1	$	0.2	$	0.3	$	0.5

The components of net periodic postretirement health care cost, other than the service cost component, are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 16 for additional information on other income (expense) - net.

25

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 12: Stock-based Compensation and Other Stock Plans

The 2011 Incentive Stock and Awards Plan (the “2011 Plan”) provides for the grant of stock options, performance awards, stock appreciation rights (“SARs”) and restricted stock awards (which may be designated as “restricted stock units” or “RSUs”). No further grants are being made under its predecessor, the 2001 Incentive Stock and Awards Plan (the “2001 Plan”), although outstanding awards under the 2001 Plan will continue in accordance with their terms. As of September 28, 2019, the 2011 Plan had 2,007,654 shares available for future grants. The company uses treasury stock to deliver shares under both the 2001 and 2011 Plans.

Net stock-based compensation expense was $4.6 million and $18.7 million for the respective three and nine months ended September 28, 2019, and $8.0 million and $22.6 million for the respective three and nine months ended September 29, 2018. Cash received from stock purchase and option plan exercises during the respective three and nine months ended September 28, 2019, totaled $1.6 million and $26.2 million. Cash received from stock purchase and option plan exercises during the respective three and nine months ended September 29, 2018, totaled $25.8 million and $54.1 million. The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $1.0 million and $5.6 million for the respective three and nine months ended September 28, 2019, and $4.5 million and $12.1 million for the respective three and nine months ended September 29, 2018.

Stock Options

Stock options are granted with an exercise price equal to the market value of a share of Snap-on’s common stock on the date of grant and have a contractual term of ten years. Stock option grants vest ratably on the first, second and third anniversaries of the date of grant.

The fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model. The company uses historical data regarding stock option exercise and forfeiture behaviors for different participating groups to estimate the period of time that options granted are expected to be outstanding. Expected volatility is based on the historical volatility of the company’s stock for the length of time corresponding to the expected term of the option. The expected dividend yield is based on the company’s historical dividend payments. The risk-free interest rate is based on the U.S. treasury yield curve on the grant date for the expected term of the option.

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:    

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of option (in years)	5.53	5.35
Expected volatility factor	21.30%	20.08%
Expected dividend yield	1.79%	1.68%
Risk-free interest rate	2.54%	2.71%

26

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

A summary of stock option activity as of and for the nine months ended September 28, 2019, is presented below:

	Shares (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 29, 2018	3,130	$	127.57
Granted	462	155.93
Exercised	(191)	77.92
Forfeited or expired	(49)	161.24
Outstanding at September 28, 2019	3,352	133.82		6.2	$	82.8
Exercisable at September 28, 2019	2,404	123.47		5.2	82.8

* Weighted-average

The weighted-average grant date fair value of options granted during the nine months ended September 28, 2019, and September 29, 2018, was $29.98 and $30.21, respectively. The intrinsic value of options exercised was $3.9 million and $16.2 million during the respective three and nine months ended September 28, 2019, and $18.1 million and $39.3 million during the respective three and nine months ended September 29, 2018. The fair value of stock options vested was $15.7 million and $16.0 million during the respective nine months ended September 28, 2019, and September 29, 2018.

As of September 28, 2019, there was $19.4 million of unrecognized compensation cost related to non-vested stock options that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

Performance Awards

Performance awards, which are granted as performance share units (“PSUs”) and performance-based RSUs, are earned and expensed using the fair value of the award over a contractual term of three years based on the company’s performance. Vesting of the performance awards is dependent upon performance relative to pre-defined goals for revenue growth and return on net assets for the applicable performance period. For performance achieved above specified levels, the recipient may earn additional shares of stock, not to exceed 100% of the number of performance awards initially granted.

The PSUs have a three-year performance period based on the results of the consolidated financial metrics of the company. The performance-based RSUs have a one-year performance period based on the results of the consolidated financial metrics of the company followed by a two-year cliff vesting schedule, assuming continued employment.

The fair value of performance awards is calculated using the market value of a share of Snap-on’s common stock on the date of grant and assumed forfeitures based on recent historical experience; in recent years, forfeitures have not been significant. The weighted-average grant date fair value of performance awards granted during the nine months ended September 28, 2019, and September 29, 2018, was $155.92 and $161.18, respectively. PSUs related to 32,114 shares and 50,182 shares were paid out during the respective nine months ended September 28, 2019, and September 29, 2018. Earned PSUs are generally paid out following the conclusion of the applicable performance period upon approval by the Organization and Executive Compensation Committee of the company’s Board of Directors (the “Board”).

Based on the company’s 2018 performance, 33,170 RSUs granted in 2018 were earned; assuming continued employment, these RSUs will vest at the end of fiscal 2020. Based on the company’s 2017 performance, 13,648 RSUs granted in 2017 were earned; assuming continued employment, these RSUs will vest at the end of fiscal 2019. Based on the company’s 2016 performance, 45,502 RSUs granted in 2016 were earned; these RSUs vested as of fiscal 2018 year end and were paid out shortly thereafter.

27

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Changes to the company’s non-vested performance awards during the nine months ended September 28, 2019, are as follows:

	Shares (in thousands)	Fair Value Price per Share*
Non-vested performance awards at December 29, 2018	120	$	164.00
Granted	84	155.92
Vested	(2)	164.55
Cancellations and other	(42)	160.11
Non-vested performance awards at September 28, 2019	160	160.73

* Weighted-average

As of September 28, 2019, there was $12.0 million of unrecognized compensation cost related to non-vested performance awards that is expected to be recognized as a charge to earnings over a weighted-average period of 1.8 years.

Stock Appreciation Rights (“SARs”)

The company also issues stock-settled and cash-settled SARs to certain key non-U.S. employees. SARs have a contractual term of ten years and vest ratably on the first, second and third anniversaries of the date of grant. SARs are granted with an exercise price equal to the market value of a share of Snap-on’s common stock on the date of grant.

Stock-settled SARs are accounted for as equity instruments and provide for the issuance of Snap-on common stock equal to the amount by which the company’s stock has appreciated over the exercise price. Stock-settled SARs have an effect on dilutive shares and shares outstanding as any appreciation of Snap-on’s common stock value over the exercise price will be settled in shares of common stock. Cash-settled SARs provide for the cash payment of the excess of the fair market value of Snap-on’s common stock price on the date of exercise over the grant price. Cash-settled SARs have no effect on dilutive shares or shares outstanding as any appreciation of Snap-on’s common stock over the grant price is paid in cash and not in common stock.

The fair value of stock-settled SARs is estimated on the date of grant using the Black-Scholes valuation model. The fair value of cash-settled SARs is revalued (mark-to-market) each reporting period using the Black-Scholes valuation model based on Snap-on’s period-end stock price. The company uses historical data regarding SARs exercise and forfeiture behaviors for different participating groups to estimate the expected term of the SARs granted based on the period of time that similar instruments granted are expected to be outstanding. Expected volatility is based on the historical volatility of the company’s stock for the length of time corresponding to the expected term of the SARs. The expected dividend yield is based on the company’s historical dividend payments. The risk-free interest rate is based on the U.S. treasury yield curve in effect as of the grant date (for stock-settled SARs) or reporting date (for cash-settled SARs) for the length of time corresponding to the expected term of the SARs.

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of stock-settled SARs (in years)	3.65	3.58
Expected volatility factor	22.60%	20.08%
Expected dividend yield	1.81%	1.63%
Risk-free interest rate	2.48%	2.40%

28

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Changes to the company’s stock-settled SARs during the nine months ended September 28, 2019, are as follows:

	Stock-settled SARs (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 29, 2018	372	$	147.41
Granted	92	155.95
Exercised	(1)	96.57
Forfeited or expired	(6)	150.14
Outstanding at September 28, 2019	457	149.19		7.2	$	4.6
Exercisable at September 28, 2019	277	142.29		6.2	4.6

* Weighted-average

The weighted-average grant date fair value of stock-settled SARs granted during the nine months ended September 28, 2019, and September 29, 2018, was $26.45 and $24.71, respectively. The intrinsic value of stock-settled SARs exercised was $0.1 million during both the three and nine months ended September 28, 2019, and $1.2 million and $1.8 million during the respective three and nine months ended September 29, 2018. The fair value of stock-settled SARs vested was $2.1 million and $2.2 million during the respective nine months ended September 28, 2019, and September 29, 2018.

As of September 28, 2019, there was $3.2 million of unrecognized compensation cost related to non-vested stock-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of cash-settled SARs (in years)	3.09	3.01
Expected volatility factor	23.36%	21.22%
Expected dividend yield	1.94%	1.70%
Risk-free interest rate	1.58%	2.88%

The intrinsic value of cash-settled SARs exercised was zero and $0.5 million during the respective three and nine months ended September 28, 2019, and $1.1 million and $3.2 million during the respective three and nine months ended September 29, 2018. The fair value of cash-settled SARs vested was $0.1 million during both the nine months ended September 28, 2019, and September 29, 2018.

Changes to the company’s non-vested cash-settled SARs during the nine months ended September 28, 2019, are as follows:

	Cash-settled SARs (in thousands)	Fair Value Price per Share*
Non-vested cash-settled SARs at December 29, 2018	3	$	14.89
Granted	1	22.90
Vested	(2)	21.38
Non-vested cash-settled SARs at September 28, 2019	2	19.50

* Weighted-average

As of September 28, 2019, there was $0.1 million of unrecognized compensation cost related to non-vested cash-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

29

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Restricted Stock Awards – Non-employee Directors

The company awarded 7,605 shares and 6,975 shares of restricted stock to non-employee directors for the respective nine months ended September 28, 2019, and September 29, 2018. The fair value of the restricted stock awards is expensed over a one-year vesting period based on the fair value on the date of grant. All restrictions generally lapse upon the earlier of the first anniversary of the grant date, the recipient’s death or disability or in the event of a change in control, as defined in the 2011 Plan. If termination of the recipient’s service occurs prior to the first anniversary of the grant date for any reason other than death or disability, the shares of restricted stock would be forfeited, unless otherwise determined by the Board.

Note 13: Earnings Per Share

The shares used in the computation of the company’s basic and diluted earnings per common share are as follows:

	Three Months Ended		Nine Months Ended
	September 28, 2019	September 29, 2018	September 28, 2019	September 29, 2018
Weighted-average common shares outstanding	54,969,340	56,260,432	55,245,705	56,447,218
Effect of dilutive securities	687,602	1,073,501	755,157	1,033,190
Weighted-average common shares outstanding, assuming dilution	55,656,942	57,333,933	56,000,862	57,480,408

The dilutive effect of the potential exercise of outstanding options and stock-settled SARs to purchase common shares is calculated using the treasury stock method. As of September 28, 2019, there were 1,223,983 awards outstanding that were anti-dilutive; as of September 29, 2018, there were 689,665 awards outstanding that were anti-dilutive. Performance-based equity awards are included in the diluted earnings per share calculation based on the attainment of the applicable performance metrics to date.    

Note 14: Commitments and Contingencies

Snap-on provides product warranties for specific product lines and accrues for estimated future warranty cost in the period in which the sale is recorded. Snap-on calculates its accrual requirements based on historic warranty loss experience that is periodically adjusted for recent actual experience, including the timing of claims during the warranty period and actual costs incurred.

Snap-on’s product warranty accrual activity for the three and nine months ended September 28, 2019, and September 29, 2018, is as follows:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Warranty reserve:
Beginning of period	$	17.8	$	17.5	$	17.1	$	17.2
Additions	3.8		3.0		12.5		10.9
Usage	(4.6)		(3.3)		(12.6)		(10.9)
End of period	$	17.0	$	17.2	$	17.0	$	17.2

The Condensed Consolidated Balance Sheet as of December 29, 2018, included an accrual of $30.9 million related to a judgment from the fourth quarter of 2017 for a patent-related litigation matter that was being appealed. During the first nine months of 2019, that matter was settled and the company recognized an $11.6 million benefit in “Operating expenses” on the Condensed Consolidated Statements of Earnings for the nine months ended September 28, 2019, as a result of the settlement.

Snap-on is involved in various legal matters that are being litigated and/or settled in the ordinary course of business. Although it is not possible to predict the outcome of these legal matters, management believes that the results of all legal matters will not have a material impact on Snap-on’s consolidated financial position, results of operations or cash flows.

30

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 15: Leases

At the beginning of fiscal 2019, Snap-on adopted ASU No. 2016-02, Leases (Topic 842). The adoption of Topic 842 did not have a significant impact on the company’s consolidated financial statements. Finance leases and lessor accounting remained substantially unchanged. The adoption of Topic 842 impacted the company’s previously reported results as follows:

(Amounts in millions)	Classification	Balance at December 29, 2018		Topic 842 Adjustments		Opening Balance at December 30, 2018
Assets
Finance lease assets	Property and equipment - net	$	7.8	$	—	$	7.8
Operating lease assets	Operating lease right-of-use assets	—		60.5		60.5
Liabilities
Current:
Finance lease liabilities	Other accrued liabilities	$	1.2	$	—	$	1.2
Operating lease liabilities	Other accrued liabilities	—		20.2		20.2
Non-current:
Finance lease liabilities	Other long-term liabilities	$	6.6	$	—	$	6.6
Operating lease liabilities	Operating lease liabilities	—		40.4		40.4

Lessee Accounting

Snap-on determines if an arrangement is a lease at inception. Snap-on has operating and finance leases for manufacturing plants, distribution centers, software development facilities, financial services offices, data centers, company store vans and certain equipment. Snap-on’s leases have lease terms of one year to 20 years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the company’s sole discretion. Certain leases also include options to purchase the leased property. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of assets and leasehold improvements are limited to the expected term, unless there is a transfer of title or purchase option reasonably certain of exercise. The company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants.

ROU assets represent Snap-on’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, Snap-on uses the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, Snap-on uses its country specific incremental borrowing rate based on the information available at the lease commencement date, including the lease term. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Snap-on has lease agreements with lease and non-lease components, which are generally accounted for separately. For all equipment leases, including vehicles, Snap-on accounts for the lease and non-lease components as a single lease component.

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SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Total lease costs consist of the following:

	Three Months Ended		Nine Months Ended
(Amounts in millions)	September 28, 2019		September 28, 2019
Finance lease costs*:
Amortization of ROU assets	$	0.4	$	1.1
Interest on lease liabilities	0.1		0.2
Operating lease costs*	6.1		18.6
Total lease costs	$	6.6	$	19.9

* Includes short-term leases, variable lease costs and sublease income, which are immaterial.

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended
(Amounts in millions)	September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	1.0
Operating cash flows from finance leases	0.2
Operating cash flows from operating leases	17.5
ROU assets obtained in exchange for new lease obligations:
Finance lease liabilities	$	1.3
Operating lease liabilities	9.6

Supplemental balance sheet information related to leases as of September 28, 2019, is as follows:

(Amounts in millions)	September 28, 2019
Finance leases:
Property and equipment - gross	$	9.2
Accumulated depreciation and amortization	(1.1)
Property and equipment - net	$	8.1
Other accrued liabilities	$	2.9
Other long-term liabilities	10.8
Total finance lease liabilities	$	13.7
Operating leases:
Operating lease right-of-use assets	$	52.4
Other accrued liabilities	$	19.3
Operating lease liabilities	34.3
Total operating lease liabilities	$	53.6

32

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Weighted-average lease terms and discount rates as of September 28, 2019, are as follows:

	September 28, 2019
Weighted-average remaining lease terms:
Finance leases	4.7 years
Operating leases	3.4 years
Weighted-average discount rates:
Finance leases	3.9%
Operating leases	3.0%

Maturities of lease liabilities as of September 28, 2019, are as follows:

(Amounts in millions)	Operating Leases		Finance Leases
Year:
2019 (excluding the nine months ended September 28, 2019)	$	5.6	$	0.8
2020	19.0		3.3
2021	14.1		3.1
2022	9.4		2.8
2023	4.4		2.6
2024 and thereafter	3.9		2.3
Total lease payments	56.4		14.9
Less: amount representing interest	(2.8)		(1.2)
Total lease liabilities	$	53.6	$	13.7

As of September 28, 2019, Snap-on does not have any significant additional operating or finance leases that have not yet commenced.

Snap-on’s future minimum lease commitments, net of sub-lease rental income, as of December 29, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:

(Amounts in millions)	Operating   Leases		Capital Leases
Year:
2019	$	25.6	$	3.3
2020	18.4		3.2
2021	13.9		2.9
2022	9.8		2.5
2023	4.9		2.2
2024 and thereafter	4.4		1.9
Total minimum lease payments	$	77.0	16.0
Less: amount representing interest			(0.9)
Total present value of minimum capital lease payments			$	15.1

33

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Amounts included in the accompanying Condensed Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2018 year end are as follows: 

(Amounts in millions)	December 29, 2018
Other accrued liabilities	$	3.0
Other long-term liabilities	12.1
Total present value of minimum capital lease payments	$	15.1

Rent expense for worldwide facilities, office equipment and vehicles, net of sub-lease rental income, was $33.0 million in 2018.

Lessor Accounting

Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics and equipment products and to franchisees who require financing for vehicle leases. Snap-on accounts for its financial services leases as sales-type leases. In certain circumstances, the lessee has the option to terminate the lease. In the event of the lessee’s deteriorated financial condition or default, Snap-on has the right to terminate the lease. The leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee.

The company recognizes the net investment in the lease as the sum of the lease receivable and the unguaranteed residual value, both of which are measured at the present value using the interest rate implicit in the lease. The difference between the undiscounted lease payments received over the lease term and the related net investment in the lease is reported as unearned finance charges. Unearned finance charges are amortized to income over the life of the contract and are included as a component of “Financial services revenue” on the accompanying Condensed Consolidated Statements of Earnings.

Sales-type leases included in both “Finance receivables - net” and “Long-term finance receivables - net” on the accompanying Condensed Consolidated Balance Sheets as of September 28, 2019, have future minimum lease payments, including unguaranteed residual value, of $91.4 million and unearned finance charges of $17.8 million, with lease terms of up to five years.

Sales-type leases included in both “Contract receivables - net” and “Long-term contract receivables - net” on the accompanying Condensed Consolidated Balance Sheets as of September 28, 2019, have future minimum lease payments, including unguaranteed residual value, of $256.9 million and unearned finance charges of $46.1 million, with lease terms of up to seven years.

Future minimum lease payments as of September 28, 2019, consisted of the following:

(Amounts in millions)	Lease Receivables
Year:
2019 (excluding the nine months ended September 28, 2019)	$	28.9
2020	109.3
2021	80.3
2022	55.5
2023	37.9
2024 and thereafter	36.4
Total lease payments	348.3
Less: unearned finance charges	(63.9)
Net investment in leases	$	284.4

See Note 4 for further information on finance and contract receivables.

34

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 16: Other Income (Expense) – Net

“Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings consists of the following:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Interest income	$	0.4	$	0.1	$	1.1	$	0.4
Net foreign exchange loss	(0.2)		(1.8)		(2.7)		(4.2)
Net periodic pension and postretirement benefits – non-service	2.5		1.3		7.5		2.7
Settlement of treasury lock	—		—		—		13.3
Loss on early extinguishment of debt	—		—		—		(7.8)
Other	0.1		(0.6)		0.5		(3.2)
Total other income (expense) – net	$	2.8	$	(1.0)	$	6.4	$	1.2

Note 17: Accumulated Other Comprehensive Income (Loss)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 28, 2019:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance at June 29, 2019	$	(178.7)	$	11.5	$	(333.5)	$	(500.7)
Other comprehensive loss before reclassifications	(47.3)		—		—		(47.3)
Amounts reclassified from Accumulated OCI	—		(0.4)		4.5		4.1
Net other comprehensive income (loss)	(47.3)		(0.4)		4.5		(43.2)
Balance as of September 28, 2019	$	(226.0)	$	11.1	$	(329.0)	$	(543.9)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 28, 2019:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 29, 2018	$	(177.9)	$	12.2	$	(296.5)	$	(462.2)
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	—		—		(45.9)		(45.9)
Balance at December 30, 2018	(177.9)		12.2		(342.4)		(508.1)
Other comprehensive loss before reclassifications	(48.1)		—		—		(48.1)
Amounts reclassified from Accumulated OCI	—		(1.1)		13.4		12.3
Net other comprehensive income (loss)	(48.1)		(1.1)		13.4		(35.8)
Balance as of September 28, 2019	$	(226.0)	$	11.1	$	(329.0)	$	(543.9)

35

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 29, 2018:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance at June 30, 2018	$	(141.0)	$	12.9	$	(249.2)	$	(377.3)
Other comprehensive income before reclassifications	2.0		—		—		2.0
Amounts reclassified from Accumulated OCI	—		(0.4)		6.0		5.6
Net other comprehensive income (loss)	2.0		(0.4)		6.0		7.6
Balance as of September 29, 2018	$	(139.0)	$	12.5	$	(243.2)	$	(369.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 29, 2018:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 30, 2017	$	(82.5)	$	14.5	$	(261.0)	$	(329.0)
Other comprehensive loss before reclassifications	(56.5)		(0.8)		—		(57.3)
Amounts reclassified from Accumulated OCI	—		(1.2)		17.8		16.6
Net other comprehensive income (loss)	(56.5)		(2.0)		17.8		(40.7)
Balance as of September 29, 2018	$	(139.0)	$	12.5	$	(243.2)	$	(369.7)

The reclassifications out of Accumulated OCI for the three and nine month periods ended September 28, 2019, and September 29, 2018, are as follows: 

	Amount Reclassified from Accumulated OCI
	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018		Statement of Earnings Presentation
(Amounts in millions)
Gains on cash flow hedges:
Treasury locks	$	0.4	$	0.4	$	1.1	$	1.2	Interest expense
Income tax expense	—		—		—		—		Income tax expense
Net of tax	0.4		0.4		1.1		1.2
Amortization of net unrecognized losses and prior service credits	(5.9)		(7.8)		(17.6)		(23.4)		See footnote below*
Income tax benefit	1.4		1.8		4.2		5.6		Income tax expense
Net of tax	(4.5)		(6.0)		(13.4)		(17.8)
Total reclassifications for the period, net of tax	$	(4.1)	$	(5.6)	$	(12.3)	$	(16.6)

* These Accumulated OCI components are included in the computation of net periodic pension and postretirement health care costs; see Note 10 and Note 11 for further information.

36

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 18: Segments

Snap-on’s business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance. Snap-on’s reportable business segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services. The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government, power generation, transportation and technical education market segments (collectively, “critical industries”), primarily through direct and distributor channels. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the company’s worldwide mobile tool distribution channel. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealership service and repair shops (“OEM dealerships”), through direct and distributor channels. Financial Services consists of the business operations of Snap-on’s finance subsidiaries.

Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Corporate assets consist of cash and cash equivalents (excluding cash held at Financial Services), deferred income taxes and certain other assets. All significant intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

Financial Data by Segment:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net sales:
Commercial & Industrial Group	$	335.3	$	330.2	$	992.8	$	999.6
Snap-on Tools Group	385.2		389.8		1,201.2		1,206.4
Repair Systems & Information Group	322.7		314.4		999.5		994.5
Segment net sales	1,043.2		1,034.4		3,193.5		3,200.5
Intersegment eliminations	(141.4)		(136.3)		(418.7)		(412.3)
Total net sales	$	901.8	$	898.1	$	2,774.8	$	2,788.2
Financial Services revenue	84.1		82.0		253.8		247.0
Total revenues	$	985.9	$	980.1	$	3,028.6	$	3,035.2
Operating earnings:
Commercial & Industrial Group	$	48.3	$	53.0	$	143.7	$	148.5
Snap-on Tools Group	53.0		59.3		191.5		207.2
Repair Systems & Information Group	83.3		80.7		255.5		255.2
Financial Services	61.0		59.3		183.7		174.0
Segment operating earnings	245.6		252.3		774.4		784.9
Corporate	(16.9)		(19.9)		(45.7)		(67.0)
Operating earnings	$	228.7	$	232.4	$	728.7	$	717.9
Interest expense	(12.0)		(12.4)		(36.9)		(38.0)
Other income (expense) – net	2.8		(1.0)		6.4		1.2
Earnings before income taxes and equity earnings	$	219.5	$	219.0	$	698.2	$	681.1

37

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

(Amounts in millions)	September 28, 2019		December 29, 2018
Assets:
Commercial & Industrial Group	$	1,119.5	$	1,087.9
Snap-on Tools Group	833.7		752.7
Repair Systems & Information Group	1,354.3		1,306.3
Financial Services	2,080.3		2,039.6
Total assets from reportable segments	$	5,387.8	$	5,186.5
Corporate	264.8		249.2
Elimination of intersegment receivables	(56.2)		(62.6)
Total assets	$	5,596.4	$	5,373.1

38

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

Caution Regarding Forward-Looking Statements:

Statements in this document that are not historical facts, including statements that: (i) are in the future tense; (ii) include the words “expects,” “plans,” “targets,” “estimates,” “believes,” “anticipates,” or similar words that reference Snap-on Incorporated (“Snap-on” or “the company”) or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on’s or management’s future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Snap-on cautions the reader that any forward-looking statements included in this document that are based upon assumptions and estimates were developed by management in good faith and are subject to risks, uncertainties or other factors that could cause (and in some cases have caused) actual results to differ materially from those described in any such statement. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results or regarded as a representation by the company or its management that the projected results will be achieved. For those forward-looking statements, Snap-on cautions the reader that numerous important factors, such as those listed below, as well as those factors discussed in its Annual Report on Form 10-K for the fiscal year ended December 29, 2018, which are incorporated herein by reference, could affect the company’s actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, Snap-on.

These risks and uncertainties include, without limitation, uncertainties related to estimates, statements, assumptions and projections generally, and the timing and progress with which Snap-on can attain value through its Snap-on Value Creation Processes, including its ability to realize efficiencies and savings from its rapid continuous improvement and other cost reduction initiatives, improve workforce productivity, achieve improvements in the company’s manufacturing footprint and greater efficiencies in its supply chain, and enhance machine maintenance, plant productivity and manufacturing line set-up and change-over practices, any or all of which could result in production inefficiencies, higher costs and/or lost revenues. These risks also include uncertainties related to Snap-on’s capability to implement future strategies with respect to its existing businesses, its ability to refine its brand and franchise strategies, retain and attract franchisees, further enhance service and value to franchisees and thereby help improve their sales and profitability, introduce successful new products, successfully pursue, complete and integrate acquisitions, as well as its ability to withstand disruption arising from natural disasters, planned facility closures or other labor interruptions, the effects of external negative factors, including adverse developments in world financial markets, developments related to tariffs and other trade issues or disputes, weakness in certain areas of the global economy (including as a result of the United Kingdom’s pending exit from the European Union), and significant changes in the current competitive environment, inflation, interest rates and other monetary and market fluctuations, changes in tax rates, laws and regulations, and the impact of energy and raw material supply and pricing, including steel (as a result of U.S. tariffs imposed on certain steel imports or otherwise) and gasoline, the amount, rate and growth of Snap-on’s general and administrative expenses, including health care and postretirement costs (resulting from, among other matters, U.S. health care legislation and its ongoing implementation or reform), continuing and potentially increasing required contributions to pension and postretirement plans, the impacts of non-strategic business and/or product line rationalizations, and the effects on business as a result of new legislation, regulations or government-related developments or issues, risks associated with data security and technological systems and protections, potential reputational damages and costs related to litigation as well as an inability to assure that costs will be reduced or eliminated on appeal, and other world or local events outside Snap-on’s control, including terrorist disruptions. Snap-on disclaims any responsibility to update any forward-looking statement provided in this document, except as required by law.

In addition, investors should be aware that generally accepted accounting principles in the United States of America (“GAAP”) prescribe when a company should reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a major contingency. Reported results, therefore, may appear to be volatile in certain accounting periods.

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Non-GAAP Measures

References in this report to “organic sales” refer to sales from continuing operations calculated in accordance with GAAP, excluding acquisition-related sales and the impact of foreign currency translation. Management evaluates the company’s sales performance based on organic sales growth, which primarily reflects growth from the company’s existing businesses as a result of increased output, customer base and geographic expansion, new product development and/or pricing, and excludes sales contributions from acquired operations the company did not own as of the comparable prior-year reporting period. The company’s organic sales disclosures also exclude the effects of foreign currency translation as foreign currency translation is subject to volatility that can obscure underlying business trends. Management believes that the non-GAAP financial measure of organic sales is meaningful to investors as it provides them with useful information to aid in identifying underlying growth trends in our businesses and facilitates comparisons of our sales performance with prior periods.

Recent Acquisitions

On August 7, 2019, Snap-on acquired Cognitran Limited ("Cognitran") for a preliminary cash purchase price of $30.7 million (or $29.7 million, net of cash acquired). The preliminary purchase price is subject to change based upon finalization of a working capital adjustment that is expected to be completed in the fourth quarter of 2019. Cognitran, based in Chelmsford, United Kingdom, specializes in flexible, modular and highly scalable "Software as a Service" (SaaS) products for original equipment manufacturer ("OEM") customers and their dealers, focused on the creation and delivery of service, diagnostics, parts and repair information to OEM dealers and connected vehicle platforms. The acquisition enhances and expands Snap-on’s capabilities in providing shop efficiency solutions through integrated upstream services to OEM customers in automotive, heavy duty, agricultural and recreational applications.

On April 2, 2019, Snap-on acquired Power Hawk Technologies, Inc. (“Power Hawk”) for a cash purchase price of $7.9 million. Power Hawk, based in Rockaway, New Jersey, designs, manufactures and distributes rescue tools and related equipment for a variety of military, governmental, and fire, rescue and emergency operations. The acquisition of the Power Hawk product line complemented and increased Snap-on’s existing product offering and broadened its established capabilities in serving critical industries.

On January 25, 2019, Snap-on acquired substantially all of the assets of TMB GeoMarketing Limited (“TMB”) for a cash purchase price of $1.3 million. TMB, based in Dorking, United Kingdom, designs planning software used by OEMs to optimize dealer locations and manage the performance of dealer outlets. The acquisition of TMB extended Snap-on’s product line in its core dealer network solutions business.

On January 31, 2018, Snap-on acquired substantially all of the assets of George A. Sturdevant, Inc. (d/b/a Fastorq) for a cash purchase price of $3.0 million. Fastorq, based in New Caney, Texas, designs, assembles and distributes hydraulic torque and hydraulic tensioning products for use in critical industries. The acquisition of the Fastorq product line complemented and increased Snap-on’s existing torque product offering and broadened its established capabilities in serving critical industries.

For segment reporting purposes, the results of operations and assets of Cognitran and TMB have been included in the Repair Systems and Information Group since the acquisition date and the results of operations and assets of Power Hawk and Fastorq have been included in the Commercial & Industrial Group since the acquisition date.

Pro forma financial information has not been presented for these acquisitions as the net effects were neither significant nor material to Snap-on’s results of operations or financial position.

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RESULTS OF OPERATIONS

Results of operations for the three months ended September 28, 2019, and September 29, 2018, are as follows:

	Three Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
Net sales	$	901.8	100.0	%	$	898.1	100.0	%	$	3.7	0.4	%
Cost of goods sold	(453.7)		(50.3)	%	(444.2)		(49.5)	%	(9.5)		(2.1)	%
Gross profit	448.1		49.7	%	453.9		50.5	%	(5.8)		(1.3)	%
Operating expenses	(280.4)		(31.1)	%	(280.8)		(31.2)	%	0.4		0.1	%
Operating earnings before financial services	167.7		18.6	%	173.1		19.3	%	(5.4)		(3.1)	%
Financial services revenue	84.1		100.0	%	82.0		100.0	%	2.1		2.6	%
Financial services expenses	(23.1)		(27.5)	%	(22.7)		(27.7)	%	(0.4)		(1.8)	%
Operating earnings from financial services	61.0		72.5	%	59.3		72.3	%	1.7		2.9	%
Operating earnings	228.7		23.2	%	232.4		23.7	%	(3.7)		(1.6)	%
Interest expense	(12.0)		(1.2)	%	(12.4)		(1.3)	%	0.4		3.2	%
Other income (expense) – net	2.8		0.3	%	(1.0)		(0.1)	%	3.8		NM
Earnings before income taxes and equity earnings	219.5		22.3	%	219.0		22.3	%	0.5		0.2	%
Income tax expense	(50.4)		(5.1)	%	(51.5)		(5.2)	%	1.1		2.1	%
Earnings before equity earnings	169.1		17.2	%	167.5		17.1	%	1.6		1.0	%
Equity earnings (loss), net of tax	0.1		—		(0.1)		—		0.2		NM
Net earnings	169.2		17.2	%	167.4		17.1	%	1.8		1.1	%
Net earnings attributable to noncontrolling interests	(4.6)		(0.5)	%	(4.2)		(0.4)	%	(0.4)		(9.5)	%
Net earnings attributable to Snap-on Inc.	$	164.6	16.7	%	$	163.2	16.7	%	$	1.4	0.9	%

NM: Not meaningful

Percentage Disclosure: All income statement line item percentages below “Operating earnings from financial services” are calculated as a percentage of the sum of Net sales and Financial services revenue.

Net sales in the third quarter of 2019 increased $3.7 million, or 0.4%, from 2018 levels, reflecting a $12.5 million, or 1.4%, increase in organic sales and $2.9 million of acquisition-related sales, partially offset by $11.7 million of unfavorable foreign currency translation. Snap-on has significant international operations and is subject to risks inherent with foreign operations, including foreign currency translation fluctuations.

Gross profit in the third quarter of 2019 decreased $5.8 million, or 1.3%, from 2018, including $7.5 million of unfavorable foreign currency effects. Gross margin (gross profit as a percentage of net sales) of 49.7% in the quarter declined 80 basis points (100 basis points (“bps”) equals 1.0 percent) from 50.5% last year primarily due to increased sales in lower gross margin businesses, 20 bps of unfavorable foreign currency effects, and higher material and other costs. These decreases in gross margin were partially offset by benefits from the company’s “Rapid Continuous Improvement” or “RCI” initiatives.

Snap-on’s RCI initiatives employ a structured set of tools and processes across multiple businesses and geographies intended to eliminate waste and improve operations. Savings from Snap-on’s RCI initiatives reflect benefits from a wide variety of ongoing efficiency, productivity and process improvements, including savings generated from product design cost reductions, improved manufacturing line set-up and change-over practices, lower-cost sourcing initiatives and facility optimization. Unless individually significant, it is not practicable to disclose each RCI activity that generated savings and/or segregate RCI savings embedded in sales volume increases.

Operating expenses in the third quarter of 2019 decreased $0.4 million, or 0.1%, from 2018. The operating expense margin (operating expenses as a percentage of net sales) of 31.1% improved 10 bps from 31.2% last year.

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Operating earnings before financial services in the third quarter, including $4.4 million of unfavorable foreign currency effects, decreased $5.4 million, or 3.1%, as compared to last year. As a percentage of net sales, operating earnings before financial services of 18.6% compared to 19.3% last year.

Financial services revenue in the third quarter of 2019 increased $2.1 million, or 2.6%, compared to last year. Financial services operating earnings in the period, including $0.3 million of unfavorable foreign currency effects, increased $1.7 million, or 2.9%, as compared to last year. The year-over-year increase in revenue primarily reflects the growth of the company’s financial services portfolio.

Operating earnings in the third quarter of 2019, including $4.7 million of unfavorable foreign currency effects, decreased $3.7 million, or 1.6%, from last year. As a percentage of revenues (net sales plus financial services revenue), operating earnings of 23.2% in the quarter compared to 23.7% last year.

Interest expense in the third quarter of 2019 decreased $0.4 million, or 3.2%, compared to last year. See Note 8 to the Condensed Consolidated Financial Statements for information on Snap-on’s debt and credit facilities.

Other income (expense) – net includes net gains and losses associated with hedging and currency exchange rate transactions, non-service components of net periodic benefit costs, and interest income. See Note 16 to the Condensed Consolidated Financial Statements for information on Other income (expense) – net.

Snap-on’s 2019 third quarter effective income tax rate on earnings attributable to Snap-on was 23.5%. The 2018 effective income tax rate was 24.0%, which included a 90 bps charge associated with the implementation of U.S. tax legislation (“tax charge”). See Note 7 to the Condensed Consolidated Financial Statements for information on income taxes.

Net earnings attributable to Snap-on of $164.6 million, or $2.96 per diluted share, in the third quarter of 2019, increased $1.4 million, or $0.11 per diluted share, from 2018 levels. Net earnings attributable to Snap-on in the third quarter of 2018 were $163.2 million, or $2.85 per diluted share, which included $1.8 million, or $0.03 per diluted share, for the tax charge.

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Results of operations for the nine months ended September 28, 2019, and September 29, 2018, are as follows:

	Nine Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
Net sales	$	2,774.8	100.0	%	$	2,788.2	100.0	%	$	(13.4)	(0.5)	%
Cost of goods sold	(1,381.3)		(49.8)	%	(1,375.6)		(49.3)	%	(5.7)		(0.4)	%
Gross profit	1,393.5		50.2	%	1,412.6		50.7	%	(19.1)		(1.4)	%
Operating expenses	(848.5)		(30.6)	%	(868.7)		(31.2)	%	20.2		2.3	%
Operating earnings before financial services	545.0		19.6	%	543.9		19.5	%	1.1		0.2	%
Financial services revenue	253.8		100.0	%	247.0		100.0	%	6.8		2.8	%
Financial services expenses	(70.1)		(27.6)	%	(73.0)		(29.6)	%	2.9		4.0	%
Operating earnings from financial services	183.7		72.4	%	174.0		70.4	%	9.7		5.6	%
Operating earnings	728.7		24.1	%	717.9		23.7	%	10.8		1.5	%
Interest expense	(36.9)		(1.2)	%	(38.0)		(1.3)	%	1.1		2.9	%
Other income (expense) – net	6.4		0.2	%	1.2		—	%	5.2		NM
Earnings before income taxes and equity earnings	698.2		23.1	%	681.1		22.4	%	17.1		2.5	%
Income tax expense	(162.9)		(5.4)	%	(164.9)		(5.4)	%	2.0		1.2	%
Earnings before equity earnings	535.3		17.7	%	516.2		17.0	%	19.1		3.7	%
Equity earnings, net of tax	0.9		—		0.7		—		0.2		NM
Net earnings	536.2		17.7	%	516.9		17.0	%	19.3		3.7	%
Net earnings attributable to noncontrolling interests	(13.3)		(0.4)	%	(12.0)		(0.4)	%	(1.3)		(10.8)	%
Net earnings attributable to Snap-on Inc.	$	522.9	17.3	%	$	504.9	16.6	%	$	18.0	3.6	%

NM: Not meaningful

Percentage Disclosure: All income statement line item percentages below “Operating earnings from financial services” are calculated as a percentage of the sum of Net sales and Financial services revenue.

Net sales in the first nine months of 2019 decreased $13.4 million, or 0.5%, from 2018 levels, reflecting a $39.9 million, or 1.5%, increase in organic sales and $4.0 million of acquisition-related sales, more than offset by $57.3 million of unfavorable foreign currency translation.

Gross profit for the period decreased $19.1 million, or 1.4%, from 2018. Gross margin of 50.2% in the first nine months declined 50 basis points from 50.7% last year primarily due to increased sales in lower gross margin businesses, 10 bps of unfavorable foreign currency effects, and higher material and other costs, partially offset by benefits from the company’s RCI initiatives.

Operating expenses in the first nine months of 2019, including an $11.6 million first quarter benefit from the settlement of a patent-related litigation matter that was being appealed (the “legal settlement”), improved $20.2 million, or 2.3%, from last year. The operating expense margin of 30.6% improved 60 bps from 31.2% last year primarily due to a 40 bps benefit from the legal settlement.

Operating earnings before financial services in the first nine months of 2019, including the benefit from the legal settlement and $16.0 million of unfavorable foreign currency effects, increased $1.1 million, or 0.2%, as compared to last year. As a percentage of net sales, operating earnings before financial services of 19.6%, including 40 bps of benefit from the legal settlement, partially offset by 20 bps of unfavorable foreign currency effects, compared to 19.5% last year.

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Financial services revenue in the first nine months of 2019 increased $6.8 million, or 2.8%, compared to last year. Financial services operating earnings for the period, including $1.2 million of unfavorable foreign currency effects, increased $9.7 million, or 5.6%, as compared to last year. The year-over-year increase in revenue primarily reflects the growth of the company’s financial services portfolio.

Operating earnings in the first nine months of 2019, including the benefit from the legal settlement and $17.2 million of unfavorable foreign currency effects, increased $10.8 million, or 1.5%, from last year. As a percentage of revenues, operating earnings of 24.1% for the first nine months of 2019 compared to 23.7% last year.

Interest expense in the first nine months of 2019 decreased $1.1 million, or 2.9%, compared to last year. See Note 8 to the Condensed Consolidated Financial Statements for information on Snap-on’s debt and credit facilities.

Other income (expense) – net includes net gains and losses associated with hedging and currency exchange rate transactions, non-service components of net periodic benefit costs, and interest income. Other income (expense) – net in 2018 included a net gain of $5.5 million associated with a treasury lock settlement gain of $13.3 million related to the issuance of debt, partially offset by $7.8 million of expense related to the early extinguishment of debt (collectively, the “net debt items”). See Note 16 to the Condensed Consolidated Financial Statements for information on Other income (expense) – net.

In the first nine months of 2019, Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.8%. The 2018 effective income tax rate was 24.6%, which included a 50 bps charge associated with the implementation of U.S. tax legislation. See Note 7 to the Condensed Consolidated Financial Statements for information on income taxes.

Net earnings attributable to Snap-on of $522.9 million, or $9.34 per diluted share, in the first nine months of 2019, including an $8.7 million, or $0.15 per diluted share, benefit from the after-tax legal settlement, increased $18.0 million, or $0.56 per diluted share, from 2018 levels. Net earnings attributable to Snap-on in the first nine months of 2018 were $504.9 million, or $8.78 per diluted share, including a $4.1 million, or $0.07 per diluted share, benefit from the after-tax net debt items, and $3.9 million, or $0.07 per diluted share, for the tax charge.

Segment Results

Snap-on’s business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance. Snap-on’s reportable business segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services. The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government, power generation, transportation and technical education market segments (collectively, “critical industries”), primarily through direct and distributor channels. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the company’s worldwide mobile tool distribution channel. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealership service and repair shops (“OEM dealerships”), through direct and distributor channels. Financial Services consists of the business operations of Snap-on’s finance subsidiaries.

Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Corporate assets consist of cash and cash equivalents (excluding cash held at Financial Services), deferred income taxes and certain other assets. Intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

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Commercial & Industrial Group

	Three Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
External net sales	$	257.0	76.6	%	$	255.7	77.4	%	$	1.3	0.5	%
Intersegment net sales	78.3		23.4	%	74.5		22.6	%	3.8		5.1	%
Segment net sales	335.3		100.0	%	330.2		100.0	%	5.1		1.5	%
Cost of goods sold	(208.3)		(62.1)	%	(199.3)		(60.4)	%	(9.0)		(4.5)	%
Gross profit	127.0		37.9	%	130.9		39.6	%	(3.9)		(3.0)	%
Operating expenses	(78.7)		(23.5)	%	(77.9)		(23.5)	%	(0.8)		(1.0)	%
Segment operating earnings	$	48.3	14.4	%	$	53.0	16.1	%	$	(4.7)	(8.9)	%

Segment net sales in the third quarter of 2019 increased $5.1 million, or 1.5%, from 2018 levels, reflecting a $9.5 million, or 2.9%, organic sales gain and $1.1 million of acquisition-related sales, partially offset by $5.5 million of unfavorable foreign currency translation. The organic sales increase primarily includes a mid single-digit gain in the specialty tools business and low single-digit gains in sales to both the segment’s European-based hand tools business and to customers in critical industries.

Segment gross margin in the third quarter of 37.9% in 2019 declined 170 bps from 39.6% in 2018, primarily due to increased sales in lower gross margin businesses and higher material and other costs, partially offset by savings from the company’s RCI initiatives.

Segment operating expense margin in the third quarter of 23.5% in 2019 was unchanged from the prior year.

Segment operating earnings in the third quarter of 2019, including $0.7 million of unfavorable foreign currency effects, decreased $4.7 million from 2018. Operating margin (segment operating earnings as a percentage of segment net sales) for the Commercial & Industrial Group of 14.4% in 2019 compared to 16.1% in 2018.

	Nine Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
External net sales	$	769.5	77.5	%	$	781.6	78.2	%	$	(12.1)	(1.5)	%
Intersegment net sales	223.3		22.5	%	218.0		21.8	%	5.3		2.4	%
Segment net sales	992.8		100.0	%	999.6		100.0	%	(6.8)		(0.7)	%
Cost of goods sold	(606.3)		(61.1)	%	(606.4)		(60.7)	%	0.1		—
Gross profit	386.5		38.9	%	393.2		39.3	%	(6.7)		(1.7)	%
Operating expenses	(242.8)		(24.4)	%	(244.7)		(24.4)	%	1.9		0.8	%
Segment operating earnings	$	143.7	14.5	%	$	148.5	14.9	%	$	(4.8)	(3.2)	%

Segment net sales in the first nine months of 2019 decreased $6.8 million, or 0.7%, from 2018 levels, reflecting a $20.4 million, or 2.1%, organic sales gain and $2.2 million of acquisition-related sales, more than offset by $29.4 million of unfavorable foreign currency translation. The organic sales increase primarily includes a high single-digit gain in the specialty tools business and low single-digit gains in sales to both customers in critical industries and in the segment’s European-based hand tools business.

Segment gross margin of 38.9% for the first nine months of 2019 decreased 40 bps from 39.3% in 2018, primarily due to increased sales in lower gross margin businesses and higher material and other costs, partially offset by benefits from the company’s RCI initiatives.

Segment operating expense margin for the first nine months of 24.4% in 2019 was unchanged from 2018.    

Segment operating earnings in the first nine months of 2019, including $2.7 million of unfavorable foreign currency effects, decreased $4.8 million from 2018 levels. Operating margin for the Commercial & Industrial Group of 14.5% in 2019 compared to 14.9% in 2018.

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Snap-on Tools Group

	Three Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
Segment net sales	$	385.2	100.0	%	$	389.8	100.0	%	$	(4.6)	(1.2)	%
Cost of goods sold	(218.0)		(56.6)	%	(220.0)		(56.4)	%	2.0		0.9	%
Gross profit	167.2		43.4	%	169.8		43.6	%	(2.6)		(1.5)	%
Operating expenses	(114.2)		(29.6)	%	(110.5)		(28.4)	%	(3.7)		(3.3)	%
Segment operating earnings	$	53.0	13.8	%	$	59.3	15.2	%	$	(6.3)	(10.6)	%

Segment net sales in the third quarter of 2019 decreased $4.6 million, or 1.2%, from 2018 levels, reflecting a $1.3 million, or 0.3%, organic sales decline and $3.3 million of unfavorable foreign currency translation. The organic sales decrease includes a mid single-digit decline in the segment’s international operations, partially offset by a low single-digit gain in the segment’s U.S. franchise operations.

Segment gross margin in the third quarter of 43.4%, including 60 bps of unfavorable foreign currency effects, declined 20 bps from 43.6% last year.

Segment operating expense margin in the third quarter of 29.6% increased 120 bps from 28.4% last year primarily due to higher field support investments.

Segment operating earnings in the third quarter of 2019, including $2.7 million of unfavorable foreign currency effects, decreased $6.3 million from 2018 levels. Operating margin for the Snap-on Tools Group of 13.8% in the third quarter of 2019 compared to 15.2% last year.

	Nine Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
Segment net sales	$	1,201.2	100.0	%	$	1,206.4	100.0	%	$	(5.2)	(0.4)	%
Cost of goods sold	(668.0)		(55.6)	%	(667.1)		(55.3)	%	(0.9)		(0.1)	%
Gross profit	533.2		44.4	%	539.3		44.7	%	(6.1)		(1.1)	%
Operating expenses	(341.7)		(28.5)	%	(332.1)		(27.5)	%	(9.6)		(2.9)	%
Segment operating earnings	$	191.5	15.9	%	$	207.2	17.2	%	$	(15.7)	(7.6)	%

Segment net sales in the first nine months of 2019 decreased $5.2 million, or 0.4%, from 2018 levels, reflecting a $9.4 million, or 0.8%, organic sales increase, which was more than offset by $14.6 million of unfavorable foreign currency translation. The organic sales increase includes a low single-digit gain in the company’s U.S. franchise operations, partially offset by a mid single-digit decline in the segment’s international operations.

Segment gross margin in the first nine months of 2019 of 44.4% declined 30 bps from 44.7% last year primarily due to 50 bps of unfavorable foreign currency effects.

The segment’s operating expense margin in the first nine months of 2019 of 28.5% increased 100 bps from 27.5% last year primarily due to higher field support investments.

Segment operating earnings in the first nine months of 2019, including $9.6 million of unfavorable foreign currency effects, decreased $15.7 million from 2018 levels. Operating margin for the Snap-on Tools Group of 15.9% in the first nine months of 2019 compared to 17.2% last year.

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Repair Systems & Information Group

	Three Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
External net sales	$	259.6	80.4	%	$	252.6	80.3	%	$	7.0	2.8	%
Intersegment net sales	63.1		19.6	%	61.8		19.7	%	1.3		2.1	%
Segment net sales	322.7		100.0	%	314.4		100.0	%	8.3		2.6	%
Cost of goods sold	(168.8)		(52.3)	%	(161.2)		(51.3)	%	(7.6)		(4.7)	%
Gross profit	153.9		47.7	%	153.2		48.7	%	0.7		0.5	%
Operating expenses	(70.6)		(21.9)	%	(72.5)		(23.0)	%	1.9		2.6	%
Segment operating earnings	$	83.3	25.8	%	$	80.7	25.7	%	$	2.6	3.2	%

Segment net sales in the third quarter of 2019 increased $8.3 million, or 2.6%, from 2018 levels, reflecting a $10.1 million, or 3.2%, organic sales gain and $1.8 million from acquisition-related sales, partially offset by $3.6 million of unfavorable foreign currency translation. The organic sales increase includes mid single-digit gains in sales to OEM dealerships and in sales of diagnostic and repair information products to independent repair shop owners and managers, partially offset by a low single-digit decrease in sales of undercar equipment.

Segment gross margin in the third quarter of 47.7% declined 100 bps from 48.7% last year primarily due to increased sales in lower gross margin businesses.

Segment operating expense margin in the third quarter of 21.9% improved 110 bps from 23.0% last year primarily due to the benefits from sales volume leverage, including higher volumes in lower expense businesses, and savings from RCI initiatives.

Segment operating earnings in the third quarter of 2019, including $1.0 million of unfavorable foreign currency effects, increased $2.6 million from 2018. Operating margin for the Repair Systems & Information Group of 25.8% in the third quarter of 2019 compared to 25.7% last year.

	Nine Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
External net sales	$	804.1	80.5	%	$	800.2	80.5	%	$	3.9	0.5	%
Intersegment net sales	195.4		19.5	%	194.3		19.5	%	1.1		0.6	%
Segment net sales	999.5		100.0	%	994.5		100.0	%	5.0		0.5	%
Cost of goods sold	(525.7)		(52.6)	%	(514.4)		(51.7)	%	(11.3)		(2.2)	%
Gross profit	473.8		47.4	%	480.1		48.3	%	(6.3)		(1.3)	%
Operating expenses	(218.3)		(21.8)	%	(224.9)		(22.6)	%	6.6		2.9	%
Segment operating earnings	$	255.5	25.6	%	$	255.2	25.7	%	$	0.3	0.1	%

Segment net sales in the first nine months of 2019 increased $5.0 million, or 0.5%, from 2018 levels, reflecting a $20.3 million, or 2.1%, organic sales increase and $1.8 million of acquisition-related sales, partially offset by $17.1 million of unfavorable foreign currency translation. The organic sales increase includes a mid single-digit gain in sales to OEM dealerships and a low single-digit gain in sales of diagnostic and repair information products to independent repair shop owners and managers, partially offset by a low single-digit decline in sales of undercar equipment.

Segment gross margin in the first nine months of 47.4% declined 90 bps from 48.3% last year. The decrease is primarily due to increased sales in lower gross margin businesses and higher material and other costs, partially offset by savings from RCI initiatives.

The segment’s operating expense margin in the first nine months of 21.8% improved 80 bps from 22.6% last year primarily due to sales volume leverage, including higher volumes in lower expense businesses, and savings from RCI initiatives.

Segment operating earnings in the first nine months of 2019, including $3.7 million of unfavorable foreign currency effects, increased $0.3 million from 2018. The operating margin for the Repair Systems & Information Group of 25.6% in the first nine months of 2019 compared to 25.7% last year.

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Financial Services

	Three Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
Financial services revenue	$	84.1	100.0	%	$	82.0	100.0	%	$	2.1	2.6	%
Financial services expenses	(23.1)		(27.5)	%	(22.7)		(27.7)	%	(0.4)		(1.8)	%
Segment operating earnings	$	61.0	72.5	%	$	59.3	72.3	%	$	1.7	2.9	%

Financial services revenue in the third quarter of 2019 increased $2.1 million, or 2.6%, from last year, primarily due to $2.1 million of higher revenue as a result of growth of the company’s financial services portfolio. In both of the third quarters of 2019 and 2018, the average yield on finance receivables was 17.7%. The average yield on contract receivables was 9.2% in both periods. Originations of $253.5 million in the third quarter of 2019 decreased $13.5 million, or 5.1%, from 2018 levels.

Financial services expenses primarily include personnel-related and other general and administrative costs, as well as provisions for credit losses. These expenses are generally more dependent on changes in the size of the financial services portfolio than they are on the revenue of the segment. Financial services expenses in the third quarter of 2019 increased $0.4 million from last year. As a percentage of the average financial services portfolio, financial services expenses were 1.1% in both of the third quarters of 2019 and 2018.

Financial services operating earnings in the third quarter of 2019, including $0.3 million of unfavorable foreign currency effects, increased $1.7 million, or 2.9%, from 2018 levels.

	Nine Months Ended
(Amounts in millions)	September 28, 2019				September 29, 2018				Change
Financial services revenue	$	253.8	100.0	%	$	247.0	100.0	%	$	6.8	2.8	%
Financial services expenses	(70.1)		(27.6)	%	(73.0)		(29.6)	%	2.9		4.0	%
Segment operating earnings	$	183.7	72.4	%	$	174.0	70.4	%	$	9.7	5.6	%

Financial services revenue in the first nine months of 2019 increased $6.8 million, or 2.8%, from last year, primarily due to $7.8 million of higher revenue as a result of growth of the company’s financial services portfolio, partially offset by $1.0 million of decreased revenue from lower average yields on finance and contract receivables. In the first nine months of 2019 and 2018, the average yield on finance receivables was 17.7% and 17.8%, respectively. The average yield on contract receivables for 2019 and 2018 was 9.1% and 9.2%, respectively. Originations of $769.4 million in the first nine months of 2019 decreased $21.0 million, or 2.7%, from 2018 levels.

Financial services expenses in the first nine months of 2019 decreased $2.9 million from last year primarily due to lower provisions for credit losses, partially offset by the impact of growth in the size of the portfolio. As a percentage of the average financial services portfolio, financial services expenses were 3.3% in the first nine months of 2019 and 3.6% in the first nine months of 2018.

Financial services operating earnings in the first nine months of 2019, including $1.2 million of unfavorable foreign currency effects, increased $9.7 million, or 5.6%, from 2018 levels.

See Note 4 to the Condensed Consolidated Financial Statements for further information on financial services.

Corporate

Snap-on’s third quarter 2019 general corporate expenses of $16.9 million decreased $3.0 million from $19.9 million last year. The year-over-year decrease in general corporate expenses primarily reflects lower stock-based and performance-based compensation, and other costs.

Snap-on’s general corporate expenses in the first nine months of 2019 of $45.7 million decreased $21.3 million from $67.0 million last year. The year-over-year decrease in general corporate expenses primarily reflects the $11.6 million benefit in 2019 from the legal settlement and lower performance-based compensation and other costs.

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Non-GAAP Supplemental Data

The following non-GAAP supplemental data is presented for informational purposes to provide readers with insight into the information used by management for assessing the operating performance of Snap-on Incorporated’s (“Snap-on”) non-financial services (“Operations”) and “Financial Services” businesses.

The supplemental Operations data reflects the results of operations and financial position of Snap-on’s tools, diagnostic and equipment products, software and other non-financial services operations with Financial Services on the equity method. The supplemental Financial Services data reflects the results of operations and financial position of Snap-on’s U.S. and international financial services operations. The financing needs of Financial Services are met through intersegment borrowings and cash generated from Operations; Financial Services is charged interest expense on intersegment borrowings at market rates. Income taxes are charged to Financial Services on the basis of the specific tax attributes generated by the U.S. and international financial services businesses. Transactions between the Operations and Financial Services businesses were eliminated to arrive at the Condensed Consolidated Financial Statements.

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Statements of Earnings information for the three months ended September 28, 2019, and September 29, 2018, is as follows:

	Operations*				Financial Services
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net sales	$	901.8	$	898.1	$	—	$	—
Cost of goods sold	(453.7)		(444.2)		—		—
Gross profit	448.1		453.9		—		—
Operating expenses	(280.4)		(280.8)		—		—
Operating earnings before financial services	167.7		173.1		—		—
Financial services revenue	—		—		84.1		82.0
Financial services expenses	—		—		(23.1)		(22.7)
Operating earnings from financial services	—		—		61.0		59.3
Operating earnings	167.7		173.1		61.0		59.3
Interest expense	(11.9)		(12.3)		(0.1)		(0.1)
Intersegment interest income (expense) – net	17.3		16.8		(17.3)		(16.8)
Other income (expense) – net	2.9		(1.0)		(0.1)		—
Earnings before income taxes and equity earnings	176.0		176.6		43.5		42.4
Income tax expense	(39.2)		(40.7)		(11.2)		(10.8)
Earnings before equity earnings	136.8		135.9		32.3		31.6
Financial services – net earnings attributable to Snap-on	32.3		31.6		—		—
Equity earnings (loss), net of tax	0.1		(0.1)		—		—
Net earnings	169.2		167.4		32.3		31.6
Net earnings attributable to noncontrolling interests	(4.6)		(4.2)		—		—
Net earnings attributable to Snap-on	$	164.6	$	163.2	$	32.3	$	31.6

* Snap-on with Financial Services on the equity method.

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Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Statements of Earnings information for the nine months ended September 28, 2019, and September 29, 2018, is as follows:

	Operations*				Financial Services
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net sales	$	2,774.8	$	2,788.2	$	—	$	—
Cost of goods sold	(1,381.3)		(1,375.6)		—		—
Gross profit	1,393.5		1,412.6		—		—
Operating expenses	(848.5)		(868.7)		—		—
Operating earnings before financial services	545.0		543.9		—		—
Financial services revenue	—		—		253.8		247.0
Financial services expenses	—		—		(70.1)		(73.0)
Operating earnings from financial services	—		—		183.7		174.0
Operating earnings	545.0		543.9		183.7		174.0
Interest expense	(36.7)		(37.7)		(0.2)		(0.3)
Intersegment interest income (expense) – net	52.8		52.9		(52.8)		(52.9)
Other income (expense) – net	6.5		1.1		(0.1)		0.1
Earnings before income taxes and equity earnings	567.6		560.2		130.6		120.9
Income tax expense	(129.1)		(133.7)		(33.8)		(31.2)
Earnings before equity earnings	438.5		426.5		96.8		89.7
Financial services – net earnings attributable to Snap-on	96.8		89.7		—		—
Equity earnings, net of tax	0.9		0.7		—		—
Net earnings	536.2		516.9		96.8		89.7
Net earnings attributable to noncontrolling interests	(13.3)		(12.0)		—		—
Net earnings attributable to Snap-on	$	522.9	$	504.9	$	96.8	$	89.7

* Snap-on with Financial Services on the equity method.

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Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Balance Sheet information as of September 28, 2019, and December 29, 2018, is as follows:

	Operations*				Financial Services
(Amounts in millions)	September 28, 2019		December 29, 2018		September 28, 2019		December 29, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	167.3	$	140.5	$	0.2	$	0.4
Intersegment receivables	13.9		15.1		—		—
Trade and other accounts receivable – net	684.1		692.1		0.7		0.5
Finance receivables – net	—		—		533.5		518.5
Contract receivables – net	6.5		6.6		96.2		91.7
Inventories – net	753.5		673.8		—		—
Prepaid expenses and other assets	105.4		100.2		8.7		0.5
Total current assets	1,730.7		1,628.3		639.3		611.6
Property and equipment – net	510.1		493.5		1.7		1.6
Operating lease right-of-use asset	50.8		—		1.6		—
Investment in Financial Services	336.2		329.5		—		—
Deferred income tax assets	34.9		45.8		19.5		18.9
Intersegment long-term notes receivable	733.3		701.3		—		—
Long-term finance receivables – net	—		—		1,084.7		1,074.4
Long-term contract receivables – net	15.3		11.9		333.3		333.0
Goodwill	920.1		902.2		—		—
Other intangibles – net	225.2		232.9		—		—
Other assets	61.5		51.9		0.2		0.1
Total assets	$	4,618.1	$	4,397.3	$	2,080.3	$	2,039.6

* Snap-on with Financial Services on the equity method.

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Non-GAAP Supplemental Consolidating Data – Condensed Balance Sheets Information (continued):

	Operations*				Financial Services
(Amounts in millions)	September 28, 2019		December 29, 2018		September 28, 2019		December 29, 2018
LIABILITIES AND EQUITY
Current liabilities:
Notes payable	$	232.3	$	186.3	$	—	$	—
Accounts payable	204.3		199.6		1.5		1.5
Intersegment payables	—		—		13.9		15.1
Accrued benefits	46.8		52.0		—		—
Accrued compensation	62.7		66.8		3.4		4.7
Franchisee deposits	76.8		67.5		—		—
Other accrued liabilities	342.4		355.4		28.1		26.1
Total current liabilities	965.3		927.6		46.9		47.4
Long-term debt and intersegment long-term debt	—		—		1,680.8		1,647.3
Deferred income tax liabilities	45.8		41.4		—		—
Retiree health care benefits	29.9		31.8		—		—
Pension liabilities	115.3		171.3		—		—
Operating lease liabilities	33.0		—		1.3		—
Other long-term liabilities	103.6		106.6		15.1		15.4
Total liabilities	1,292.9		1,278.7		1,744.1		1,710.1
Total shareholders’ equity attributable to Snap-on Inc.	3,303.8		3,098.8		336.2		329.5
Noncontrolling interests	21.4		19.8		—		—
Total equity	3,325.2		3,118.6		336.2		329.5
Total liabilities and equity	$	4,618.1	$	4,397.3	$	2,080.3	$	2,039.6

* Snap-on with Financial Services on the equity method.

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Liquidity and Capital Resources

Snap-on’s growth has historically been funded by a combination of cash provided by operating activities and debt financing. Snap-on believes that its cash from operations and collections of finance receivables, coupled with its sources of borrowings and available cash on hand, are sufficient to fund its currently anticipated requirements for scheduled debt repayments, payments of interest and dividends, new receivables originated by our financial services businesses, capital expenditures, working capital, the funding of pension plans, and funding for share repurchases and acquisitions, if and as they arise.

Due to Snap-on’s credit rating over the years, external funds have been available at an acceptable cost. As of the close of business on October 11, 2019, Snap-on’s long-term debt and commercial paper were rated, respectively, A2 and P-1 by Moody’s Investors Service; A- and A-2 by Standard & Poor’s; and A and F1 by Fitch Ratings. Snap-on believes that its current credit arrangements are sound and that the strength of its balance sheet affords the company the financial flexibility, including through access to financial markets for potential new financing, to respond to both internal growth opportunities and those available through acquisitions. However, Snap-on cannot provide any assurances of the availability of future financing or the terms on which it might be available, or that its debt ratings may not decrease.

The following discussion focuses on information included in the accompanying Condensed Consolidated Balance Sheets.

As of September 28, 2019, working capital (current assets less current liabilities) of $1,357.8 million increased $92.9 million from $1,264.9 million as of December 29, 2018 (fiscal 2018 year end) primarily as a result of the net changes discussed below.

The following represents the company’s working capital position as of September 28, 2019, and December 29, 2018:

(Amounts in millions)	September 28, 2019		December 29, 2018
Cash and cash equivalents	$	167.5	$	140.9
Trade and other accounts receivable – net	684.8		692.6
Finance receivables – net	533.5		518.5
Contract receivables – net	102.7		98.3
Inventories – net	753.5		673.8
Prepaid expenses and other assets	105.9		92.8
Total current assets	2,347.9		2,216.9
Notes payable	(232.3)		(186.3)
Accounts payable	(205.8)		(201.1)
Other current liabilities	(552.0)		(564.6)
Total current liabilities	(990.1)		(952.0)
Total working capital	$	1,357.8	$	1,264.9

Cash and cash equivalents of $167.5 million as of September 28, 2019, increased $26.6 million from 2018 year-end levels primarily due to: (i) $565.1 million of cash from collections of finance receivables; (ii) $477.9 million of cash generated from operations; (iii) $46.9 million of net proceeds from other short-term borrowings; and (iv) $26.2 million of cash proceeds from stock purchase and option plan exercises. These increases in cash and cash equivalents were partially offset by: (i) the funding of $628.1 million of new finance receivables; (ii) the repurchase of 1,060,000 shares of the company’s common stock for $167.2 million; (iii) dividend payments to shareholders of $157.6 million; (iv) the funding of $77.8 million of capital expenditures; and (v) the funding of $38.9 million for acquisitions.

Of the $167.5 million of cash and cash equivalents as of September 28, 2019, $146.3 million was held outside of the United States. Snap-on maintains non-U.S. funds in its foreign operations to: (i) provide adequate working capital; (ii) satisfy various regulatory requirements; and/or (iii) take advantage of business expansion opportunities as they arise. Although the Tax Act generally eliminated U.S. federal taxation of dividends from foreign subsidiaries, such dividends may still be subject to state income taxation and foreign withholding taxes. Snap-on periodically evaluates its cash held outside the United States and may pursue opportunities to repatriate certain foreign cash amounts to the extent that it does not incur unfavorable net tax consequences.

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Trade and other accounts receivable – net of $684.8 million as of September 28, 2019, decreased $7.8 million from 2018 year-end levels primarily due to improved collections and $6.5 million of foreign currency translation, partially offset by $3.2 million of receivables related to the Power Hawk and Cognitran acquisitions. Days sales outstanding (trade and other accounts receivable – net as of the respective period end, divided by the respective trailing 12 months sales, times 360 days) was 66 days at September 28, 2019, and 67 days at December 29, 2018.

The current portions of net finance and contract receivables of $636.2 million as of September 28, 2019, compared to $616.8 million at 2018 year end. The long-term portions of net finance and contract receivables of $1,433.3 million as of September 28, 2019, compared to $1,419.3 million at 2018 year end. The combined $33.4 million increase in net current and long-term finance and contract receivables over 2018 year-end levels is primarily due to growth of the company’s financial services portfolio, partially offset by $2.6 million of foreign currency translation.                

Inventories – net of $753.5 million as of September 28, 2019, increased $79.7 million from 2018 year-end levels primarily due to continued support for higher customer demand and new product introductions, as well as $0.5 million of inventories related to the Power Hawk acquisition, partially offset by $10.3 million of foreign currency translation. Inventory turns (trailing 12 months of cost of goods sold, divided by the average of the beginning and ending inventory balance for the trailing 12 months) were 2.6 turns and 2.9 turns as of September 28, 2019, and December 29, 2018, respectively. Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 58% and 61% of total inventories as of September 28, 2019, and December 29, 2018, respectively. All other inventories are accounted for using the last-in, first-out (“LIFO”) method. The company’s LIFO reserve was $82.5 million and $78.4 million as of September 28, 2019, and December 29, 2018, respectively.

Notes payable of $232.3 million as of September 28, 2019, included $218.8 million of commercial paper borrowings and $13.5 million of other notes. As of 2018 year end, notes payable of $186.3 million included $177.1 million of commercial paper borrowings and $9.2 million of other notes.

Accounts payable of $205.8 million as of September 28, 2019, increased $4.7 million from 2018 year-end levels primarily due to the timing of payments, partially offset by $2.2 million of foreign currency translation.

Other accrued liabilities of $362.3 million as of September 28, 2019, decreased $11.3 million from 2018 year-end levels primarily due to semi-annual interest payments on long-term debt and $2.9 million of foreign currency translation.

Long-term debt of $947.5 million as of September 28, 2019, consisted of: (i) $250 million of unsecured 6.125% notes that mature in 2021 (the “2021 Notes”); (ii) $300 million of unsecured 3.25% notes that mature in 2027 (the “2027 Notes”); and (iii) $400 million of unsecured 4.10% notes that mature in 2048 (the “2048 Notes”), partially offset by $2.5 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps. Long-term debt of $946.0 million as of 2018 year end consisted of: (i) $250 million of the 2021 Notes; (ii) $300 million of the 2027 Notes; and (iii) $400 million of the 2048 Notes, partially offset by $4.0 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

On September 16, 2019, Snap-on entered into a five-year, $800 million multi-currency revolving credit facility that terminates on September 16, 2024 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of September 28, 2019. The Credit Facility amended and restated in its entirety Snap-on's previous $700 million multi-currency revolving credit facility that was set to terminate on December 15, 2020. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of Consolidated Net Debt to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of September 28, 2019, the company’s actual ratios of 0.21 and 0.96 respectively, were both within the permitted ranges set forth in this financial covenant. Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.

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Snap-on believes it has sufficient available cash and access to both committed and uncommitted credit facilities to cover its expected funding needs on both a short-term and long-term basis. Snap-on manages its aggregate short-term borrowings so as not to exceed its availability under the Credit Facility. Snap-on believes that it can access short-term debt markets, predominantly through commercial paper issuances and existing lines of credit, to fund its short-term requirements and to ensure near-term liquidity. Snap-on regularly monitors the credit and financial markets and may take advantage of what it believes are favorable market conditions to issue long-term debt to further improve its liquidity and capital resources. Near-term liquidity requirements for Snap-on include scheduled debt payments, payments of interest and dividends, funding to support new receivables originated by our financial services businesses, capital expenditures, working capital, the funding of pension plans, and funding for share repurchases and acquisitions, if and as they arise. Snap-on intends to make contributions of $9.4 million to its foreign pension plans and $2.0 million to its domestic pension plans in 2019, as required by law. In the first nine months of 2019, Snap-on made $40.0 million of discretionary cash contributions to its domestic pension plans; depending on market and other conditions, Snap-on may make additional discretionary cash contributions to its pension plans in the balance of 2019.

Snap-on’s long-term financing strategy is to maintain continuous access to the debt markets to accommodate its liquidity needs, including the potential use of commercial paper, additional fixed-term debt and/or securitizations.

The following discussion focuses on information included in the accompanying Condensed Consolidated Statements of Cash Flows.

Operating Activities

Net cash provided by operating activities was $477.9 million and $548.6 million in the first nine months of 2019 and 2018, respectively. The $70.7 million year-over-year decrease in net cash provided by operating activities primarily reflects a decrease of $92.6 million from net changes in operating assets and liabilities, partially offset by $19.3 million of higher net earnings.

Investing Activities

Net cash used by investing activities of $180.7 million in the first nine months of 2019 included additions to finance receivables of $628.1 million, partially offset by collections of $565.1 million. Net cash used by investing activities of $149.4 million in the first nine months of 2018 included additions to finance receivables of $643.5 million, partially offset by collections of $564.0 million. Finance receivables are comprised of extended-term installment payment contracts to both technicians and independent shop owners (i.e., franchisees’ customers) to enable them to purchase tools and diagnostic and equipment products on an extended-term payment plan, generally with average payment terms of approximately four years.

Net cash used by investing activities in the respective first nine months of 2019 and 2018 also included $38.9 million and $3.0 million for acquisitions. See Note 3 to the Consolidated Financial Statements for information about acquisitions.

Capital expenditures were $77.8 million and $68.5 million in the first nine months of 2019 and 2018, respectively. Capital expenditures in both years included continued investments related to the company’s execution of its strategic Value Creation Processes around safety, quality, customer connection, innovation and RCI.

Financing Activities

Net cash used by financing activities of $270.2 million in the first nine months of 2019 included net proceeds from other short-term borrowings of $46.9 million. Net cash used by financing activities of $367.1 million in the first nine months of 2018 included repayments of long-term debt and notes payable and other short-term borrowings, offset by the proceeds from the issuance of the 2048 Notes.    

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OF OPERATIONS

(continued)

Proceeds from stock purchase and option plan exercises totaled $26.2 million and $54.1 million in the first nine months of 2019 and 2018, respectively. Snap-on has undertaken stock repurchases from time to time to offset dilution created by shares issued for employee and franchisee stock purchase plans, as well as stock options, and for other corporate purposes. In the first nine months of 2019, Snap-on repurchased 1,060,000 shares of its common stock for $167.2 million under its previously announced share repurchase programs. In the first nine months of 2018, Snap-on repurchased 1,139,000 shares of its common stock for $184.4 million under its previously announced share repurchase programs. As of September 28, 2019, Snap-on had remaining availability to repurchase up to an additional $390.6 million in common stock pursuant to its Board’s authorizations. The purchase of Snap-on common stock is at the company’s discretion, subject to prevailing financial and market conditions. Snap-on believes that its cash generated from operations, available cash on hand, and funds available from its credit facilities, will be sufficient to fund the company’s additional share repurchases, if any.

Snap-on has paid consecutive quarterly cash dividends, without interruption or reduction, since 1939. Cash dividends totaled $157.6 million and $138.9 million in the first nine months of 2019 and 2018, respectively. On November 8, 2018, the Board increased the quarterly cash dividend by 15.9% to $0.95 per share ($3.80 per share annualized). Snap-on believes that its cash generated from operations, available cash on hand, and funds available from its credit facilities, will be sufficient to pay dividends.    

Off-Balance Sheet Arrangements

The company had no off-balance sheet arrangements as of September 28, 2019.

Critical Accounting Policies and Estimates

Snap-on’s disclosures of its critical accounting policies, which are contained in its Annual Report on Form 10-K for the fiscal year ended December 29, 2018, have not materially changed since that report was filed.

Outlook

Snap-on expects to make continued progress through the remainder of 2019 along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, Snap-on expects that capital expenditures in 2019 will be in a range of $95 million to $105 million, of which $77.8 million was expended in the first nine months of the year. Snap-on also anticipates that its full year 2019 effective income tax rate will be comparable to its full year 2018 rate of 24.0%.

56

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Market, Credit and Economic Risks

Market risk is the potential economic loss that may result from adverse changes in the fair value of financial instruments. Snap-on is exposed to market risk from changes in interest rates and foreign currency exchange rates. Snap-on is also exposed to market risk associated with the stock-based portion of its deferred compensation plans. Snap-on monitors its exposure to these risks and attempts to manage the underlying economic exposures through the use of financial instruments such as foreign currency forward contracts, interest rate swap agreements, treasury lock agreements and prepaid equity forward agreements (“equity forwards”). Snap-on does not use derivative instruments for speculative or trading purposes. Snap-on’s broad-based business activities help to reduce the impact that volatility in any particular area or related areas may have on its operating earnings as a whole. Snap-on’s management takes an active role in the risk management process and has developed policies and procedures that require specific administrative and business functions to assist in the identification, assessment and control of various risks.

Foreign Currency Risk Management

Snap-on has significant international operations and is subject to certain risks inherent with foreign operations that include currency fluctuations. Foreign currency exchange risk exists to the extent that Snap-on has payment obligations or receipts denominated in currencies other than the functional currency, including intercompany loans denominated in foreign currencies. To manage these exposures, Snap-on identifies naturally offsetting positions and then purchases hedging instruments to protect the residual net exposures. See Note 9 to the Condensed Consolidated Financial Statements for information on foreign currency risk management.

Interest Rate Risk Management

Snap-on aims to control funding costs by managing the exposure created by the differing maturities and interest rate structures of Snap-on’s borrowings through the use of interest rate swap agreements. Treasury lock agreements are used from time to time to manage the potential change in interest rates in anticipation of the possible issuance of fixed rate debt. See Note 9 to the Condensed Consolidated Financial Statements for information on interest rate risk management.

Snap-on utilizes a Value-at-Risk (“VAR”) model to determine the potential one-day loss in the fair value of its interest rate and foreign exchange-sensitive financial instruments from adverse changes in market factors. The VAR model estimates were made assuming normal market conditions and a 95% confidence level. Snap-on’s computations are based on the inter-relationships among movements in various currencies and interest rates (variance/co-variance technique). These inter-relationships were determined by observing interest rate and foreign currency market changes over the preceding quarter.

The estimated maximum potential one-day loss in fair value, calculated using the VAR model, as of September 28, 2019, was $14.6 million on interest rate-sensitive financial instruments and $0.1 million on foreign currency-sensitive financial instruments. The VAR model is a risk management tool and does not purport to represent actual losses in fair value that will be incurred by Snap-on, nor does it consider the potential effect of favorable changes in market factors.

Stock-based Deferred Compensation Risk Management

Snap-on aims to manage market risk associated with the stock-based portion of its deferred compensation plans through the use of equity forwards. Equity forwards are used to aid in offsetting the potential mark-to-market effect on stock-based deferred compensation from changes in Snap-on’s stock price. Since stock-based deferred compensation liabilities increase as the company’s stock price rises and decrease as the company’s stock price declines, the equity forwards are intended to mitigate the potential impact on deferred compensation expense that may result from such mark-to-market changes. See Note 9 to the Condensed Consolidated Financial Statements for additional information on stock-based deferred compensation risk management.

57

Credit Risk

Credit risk is the possibility of loss from a customer’s failure to make payments according to contract terms. Prior to extending credit, each customer is evaluated, taking into consideration various factors, including the customer’s financial condition, debt-servicing ability, past payment experience, credit bureau information, and other financial and qualitative factors that may affect the customer’s ability to repay, as well as the value of the underlying collateral. Finance receivable credit risk is also monitored regularly through the use of internal proprietary custom scoring models to evaluate each transaction at the time of the application for credit. Snap-on evaluates credit quality through the use of an internal proprietary measuring system that provides a framework to analyze finance receivables on the basis of risk factors of the individual obligor as well as transaction specific risk. The finance receivables are typically monitored through an asset quality review process that closely monitors past due accounts and initiates a progressive collection action process when appropriate.    

Counterparty Risk

Snap-on is exposed to credit losses in the event of non-performance by the counterparties to its various financial agreements, including its foreign currency forward contracts, interest rate swap agreements, treasury lock agreements and prepaid equity forward agreements. Snap-on does not obtain collateral or other security to support financial instruments subject to credit risk, but monitors the credit standing of the counterparties and generally enters into agreements with financial institution counterparties with a credit rating of A- or better. Snap-on does not anticipate non-performance by its counterparties, but cannot provide assurances.

Economic Risk

Economic risk is the possibility of loss resulting from economic instability in certain areas of the world. Snap-on continually monitors its exposure in these markets; for example, the company is monitoring the potential effects of the United Kingdom’s pending exit from the European Union, although it is too soon to know what effects this might have on the world economy or the company. Inflation has not had a significant impact on the company.

As a result of the above market, credit and economic risks, net earnings and revenues in any particular period may not be representative of full-year results and may vary significantly from year to year.

Item 4: Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Snap-on maintains a system of disclosure controls and procedures that is designed to provide reasonable assurance that material information relating to the company and its consolidated subsidiaries is timely communicated to the officers who certify Snap-on’s financial reports and to other members of senior management and the Board, as appropriate.

In accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), the company’s management evaluated, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of the company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 28, 2019. Based upon their evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of September 28, 2019, to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission rules and forms, and to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control

During the quarter ended September 28, 2019, the company continued designing new controls as part of its efforts to adopt ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), which is effective for the company's 2020 fiscal year. As the implementation process continues, the company expects that there will be additional changes in internal controls over financial reporting. However, there were no changes to internal controls over financial reporting during the quarter ended September 28, 2019, that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f)).

58

PART II. OTHER INFORMATION

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following chart discloses information regarding the shares of Snap-on’s common stock repurchased by the company during the third quarter of fiscal 2019, all of which were purchased pursuant to the Board’s authorizations that the company has publicly announced. Snap-on has undertaken stock repurchases from time to time to offset dilution created by shares issued for employee and franchisee stock purchase plans and equity plans, and for other corporate purposes, as well as when the company believes market conditions are favorable. The repurchase of Snap-on common stock is at the company’s discretion, subject to prevailing financial and market conditions.

Period	Shares purchased	Average price per share	Shares purchased as part of publicly announced plans or programs	Approximate value of shares that may yet be purchased under publicly announced plans or programs*
06/30/19 to 07/27/19	64,000	$152.26	64,000	$435.0 million
07/28/19 to 08/24/19	200,000	$149.49	200,000	$405.0 million
08/25/19 to 09/28/19	136,000	$147.60	136,000	$390.6 million
Total/Average	400,000	$149.29	400,000	N/A
N/A: Not applicable

* Subject to further adjustment pursuant to the 1996 Authorization described below, as of September 28, 2019, the approximate value of shares that may yet be

purchased pursuant to the outstanding Board authorizations discussed below is $390.6 million.

•In 1996, the Board authorized the company to repurchase shares of the company’s common stock from time to time in the open market or in privately negotiated transactions (the “1996 Authorization”). The 1996 Authorization allows the repurchase of up to the number of shares issued or delivered from treasury from time to time under the various plans the company has in place that call for the issuance of the company’s common stock. Because the number of shares that are purchased pursuant to the 1996 Authorization will change from time to time as (i) the company issues shares under its various plans; and (ii) shares are repurchased pursuant to this authorization, the number of shares authorized to be repurchased will vary from time to time. The 1996 Authorization will expire when terminated by the Board. When calculating the approximate value of shares that the company may yet purchase under the 1996 Authorization, the company assumed a price of $155.33, $145.07 and $155.34 per share of common stock as of the end of the respective fiscal 2019 months ended July 27, 2019, August 24, 2019, and September 28, 2019.

•On February 14, 2019, the Board authorized the repurchase of an aggregate of up to $500 million of the company’s common stock (the “2019 Authorization”). The 2019 Authorization will expire when the aggregate repurchase price limit is met, unless terminated earlier by the Board.

Other Purchases or Sales of Equity Securities

The following chart discloses information regarding transactions in shares of Snap-on’s common stock by Citibank, N.A. (“Citibank”) during the third quarter of 2019 pursuant to a prepaid equity forward agreement (the “Agreement”) with Citibank that is intended to reduce the impact of market risk associated with the stock-based portion of the company’s deferred compensation plans. The company’s stock-based deferred compensation liabilities, which are impacted by changes in the company’s stock price, increase as the company’s stock price rises and decrease as the company’s stock price declines. Pursuant to the Agreement, Citibank may purchase or sell shares of the company’s common stock (for Citibank’s account) in the market or in privately negotiated transactions. The Agreement has no stated expiration date and does not provide for Snap-on to purchase or repurchase its shares.

Citibank Purchases of Snap-on Stock
Period	Shares purchased	Average price per share
06/30/19 to 07/27/19	—	—
07/28/19 to 08/24/19	12,600	$149.76
08/25/19 to 09/28/19	3,200	$148.55
Total/Average	15,800	$149.51

59

Item 6: Exhibits
Exhibit 31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
Exhibit 101.SCH	Inline XBRL Taxonomy Extension Schema Document
Exhibit 101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
Exhibit 101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
Exhibit 101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
Exhibit 101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
Exhibit 104	Cover page Inline XBRL data (contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Snap-on Incorporated has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SNAP-ON INCORPORATED
Date: October 17, 2019	/s/ Aldo J. Pagliari
	Aldo J. Pagliari, Principal Financial Officer,
	Senior Vice President – Finance and
	Chief Financial Officer

61

EX-31.1

EXHIBIT 31.1

Certification of the Chief Executive Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Nicholas T. Pinchuk, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Snap-on Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 17, 2019

/s/ Nicholas T. Pinchuk

Nicholas T. Pinchuk

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of the Principal Financial Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Aldo J. Pagliari, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Snap-on Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 17, 2019

/s/ Aldo J. Pagliari

Aldo J. Pagliari

Principal Financial Officer

EX-32.1

EXHIBIT 32.1

Certification of Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Snap-on Incorporated (the “Company”) on Form 10-Q for the period ended September 28, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Nicholas T. Pinchuk as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Nicholas T. Pinchuk

Nicholas T. Pinchuk

Chief Executive Officer

October 17, 2019

EX-32.2

EXHIBIT 32.2

Certification of Principal Financial Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Snap-on Incorporated (the “Company”) on Form 10-Q for the period ended September 28, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Aldo J. Pagliari as Principal Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Aldo J. Pagliari

Aldo J. Pagliari

Principal Financial Officer

October 17, 2019

XML

Leases

9 Months Ended

Sep. 28, 2019

Leases [Abstract]

Leases

Leases

At the beginning of fiscal 2019, Snap-on adopted ASU No. 2016-02, Leases (Topic 842). The adoption of Topic 842 did not have a significant impact on the company’s consolidated financial statements. Finance leases and lessor accounting remained substantially unchanged. The adoption of Topic 842 impacted the company’s previously reported results as follows:

(Amounts in millions)	Classification	Balance at December 29, 2018		Topic 842 Adjustments		Opening Balance at December 30, 2018
Assets
Finance lease assets	Property and equipment - net	$	7.8	$	—	$	7.8
Operating lease assets	Operating lease right-of-use assets	—		60.5		60.5
Liabilities
Current:
Finance lease liabilities	Other accrued liabilities	$	1.2	$	—	$	1.2
Operating lease liabilities	Other accrued liabilities	—		20.2		20.2
Non-current:
Finance lease liabilities	Other long-term liabilities	$	6.6	$	—	$	6.6
Operating lease liabilities	Operating lease liabilities	—		40.4		40.4

Lessee Accounting

Snap-on determines if an arrangement is a lease at inception. Snap-on has operating and finance leases for manufacturing plants, distribution centers, software development facilities, financial services offices, data centers, company store vans and certain equipment. Snap-on’s leases have lease terms of one year to 20 years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the company’s sole discretion. Certain leases also include options to purchase the leased property. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of assets and leasehold improvements are limited to the expected term, unless there is a transfer of title or purchase option reasonably certain of exercise. The company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants.

ROU assets represent Snap-on’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, Snap-on uses the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, Snap-on uses its country specific incremental borrowing rate based on the information available at the lease commencement date, including the lease term. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Snap-on has lease agreements with lease and non-lease components, which are generally accounted for separately. For all equipment leases, including vehicles, Snap-on accounts for the lease and non-lease components as a single lease component.

Total lease costs consist of the following:

	Three Months Ended		Nine Months Ended
(Amounts in millions)	September 28, 2019		September 28, 2019
Finance lease costs*:
Amortization of ROU assets	$	0.4	$	1.1
Interest on lease liabilities	0.1		0.2
Operating lease costs*	6.1		18.6
Total lease costs	$	6.6	$	19.9

* Includes short-term leases, variable lease costs and sublease income, which are immaterial.

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended
(Amounts in millions)	September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	1.0
Operating cash flows from finance leases	0.2
Operating cash flows from operating leases	17.5
ROU assets obtained in exchange for new lease obligations:
Finance lease liabilities	$	1.3
Operating lease liabilities	9.6

Supplemental balance sheet information related to leases as of September 28, 2019, is as follows:

(Amounts in millions)	September 28, 2019
Finance leases:
Property and equipment - gross	$	9.2
Accumulated depreciation and amortization	(1.1)
Property and equipment - net	$	8.1
Other accrued liabilities	$	2.9
Other long-term liabilities	10.8
Total finance lease liabilities	$	13.7
Operating leases:
Operating lease right-of-use assets	$	52.4
Other accrued liabilities	$	19.3
Operating lease liabilities	34.3
Total operating lease liabilities	$	53.6

Weighted-average lease terms and discount rates as of September 28, 2019, are as follows:

	September 28, 2019
Weighted-average remaining lease terms:
Finance leases	4.7 years
Operating leases	3.4 years
Weighted-average discount rates:
Finance leases	3.9%
Operating leases	3.0%

Maturities of lease liabilities as of September 28, 2019, are as follows:

(Amounts in millions)	Operating Leases		Finance Leases
Year:
2019 (excluding the nine months ended September 28, 2019)	$	5.6	$	0.8
2020	19.0		3.3
2021	14.1		3.1
2022	9.4		2.8
2023	4.4		2.6
2024 and thereafter	3.9		2.3
Total lease payments	56.4		14.9
Less: amount representing interest	(2.8)		(1.2)
Total lease liabilities	$	53.6	$	13.7

As of September 28, 2019, Snap-on does not have any significant additional operating or finance leases that have not yet commenced.

Snap-on’s future minimum lease commitments, net of sub-lease rental income, as of December 29, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:

(Amounts in millions)	Operating   Leases		Capital Leases
Year:
2019	$	25.6	$	3.3
2020	18.4		3.2
2021	13.9		2.9
2022	9.8		2.5
2023	4.9		2.2
2024 and thereafter	4.4		1.9
Total minimum lease payments	$	77.0	16.0
Less: amount representing interest			(0.9)
Total present value of minimum capital lease payments			$	15.1

Amounts included in the accompanying Condensed Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2018 year end are as follows: 

(Amounts in millions)	December 29, 2018
Other accrued liabilities	$	3.0
Other long-term liabilities	12.1
Total present value of minimum capital lease payments	$	15.1

Rent expense for worldwide facilities, office equipment and vehicles, net of sub-lease rental income, was $33.0 million in 2018.

Lessor Accounting

Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics and equipment products and to franchisees who require financing for vehicle leases. Snap-on accounts for its financial services leases as sales-type leases. In certain circumstances, the lessee has the option to terminate the lease. In the event of the lessee’s deteriorated financial condition or default, Snap-on has the right to terminate the lease. The leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee.

The company recognizes the net investment in the lease as the sum of the lease receivable and the unguaranteed residual value, both of which are measured at the present value using the interest rate implicit in the lease. The difference between the undiscounted lease payments received over the lease term and the related net investment in the lease is reported as unearned finance charges. Unearned finance charges are amortized to income over the life of the contract and are included as a component of “Financial services revenue” on the accompanying Condensed Consolidated Statements of Earnings.

Sales-type leases included in both “Finance receivables - net” and “Long-term finance receivables - net” on the accompanying Condensed Consolidated Balance Sheets as of September 28, 2019, have future minimum lease payments, including unguaranteed residual value, of $91.4 million and unearned finance charges of $17.8 million, with lease terms of up to five years.

Sales-type leases included in both “Contract receivables - net” and “Long-term contract receivables - net” on the accompanying Condensed Consolidated Balance Sheets as of September 28, 2019, have future minimum lease payments, including unguaranteed residual value, of $256.9 million and unearned finance charges of $46.1 million, with lease terms of up to seven years.

Future minimum lease payments as of September 28, 2019, consisted of the following:

(Amounts in millions)	Lease Receivables
Year:
2019 (excluding the nine months ended September 28, 2019)	$	28.9
2020	109.3
2021	80.3
2022	55.5
2023	37.9
2024 and thereafter	36.4
Total lease payments	348.3
Less: unearned finance charges	(63.9)
Net investment in leases	$	284.4

See Note 4 for further information on finance and contract receivables.

Leases

Leases

At the beginning of fiscal 2019, Snap-on adopted ASU No. 2016-02, Leases (Topic 842). The adoption of Topic 842 did not have a significant impact on the company’s consolidated financial statements. Finance leases and lessor accounting remained substantially unchanged. The adoption of Topic 842 impacted the company’s previously reported results as follows:

(Amounts in millions)	Classification	Balance at December 29, 2018		Topic 842 Adjustments		Opening Balance at December 30, 2018
Assets
Finance lease assets	Property and equipment - net	$	7.8	$	—	$	7.8
Operating lease assets	Operating lease right-of-use assets	—		60.5		60.5
Liabilities
Current:
Finance lease liabilities	Other accrued liabilities	$	1.2	$	—	$	1.2
Operating lease liabilities	Other accrued liabilities	—		20.2		20.2
Non-current:
Finance lease liabilities	Other long-term liabilities	$	6.6	$	—	$	6.6
Operating lease liabilities	Operating lease liabilities	—		40.4		40.4

Lessee Accounting

Snap-on determines if an arrangement is a lease at inception. Snap-on has operating and finance leases for manufacturing plants, distribution centers, software development facilities, financial services offices, data centers, company store vans and certain equipment. Snap-on’s leases have lease terms of one year to 20 years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the company’s sole discretion. Certain leases also include options to purchase the leased property. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of assets and leasehold improvements are limited to the expected term, unless there is a transfer of title or purchase option reasonably certain of exercise. The company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants.

ROU assets represent Snap-on’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, Snap-on uses the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, Snap-on uses its country specific incremental borrowing rate based on the information available at the lease commencement date, including the lease term. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Snap-on has lease agreements with lease and non-lease components, which are generally accounted for separately. For all equipment leases, including vehicles, Snap-on accounts for the lease and non-lease components as a single lease component.

Total lease costs consist of the following:

	Three Months Ended		Nine Months Ended
(Amounts in millions)	September 28, 2019		September 28, 2019
Finance lease costs*:
Amortization of ROU assets	$	0.4	$	1.1
Interest on lease liabilities	0.1		0.2
Operating lease costs*	6.1		18.6
Total lease costs	$	6.6	$	19.9

* Includes short-term leases, variable lease costs and sublease income, which are immaterial.

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended
(Amounts in millions)	September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	1.0
Operating cash flows from finance leases	0.2
Operating cash flows from operating leases	17.5
ROU assets obtained in exchange for new lease obligations:
Finance lease liabilities	$	1.3
Operating lease liabilities	9.6

Supplemental balance sheet information related to leases as of September 28, 2019, is as follows:

(Amounts in millions)	September 28, 2019
Finance leases:
Property and equipment - gross	$	9.2
Accumulated depreciation and amortization	(1.1)
Property and equipment - net	$	8.1
Other accrued liabilities	$	2.9
Other long-term liabilities	10.8
Total finance lease liabilities	$	13.7
Operating leases:
Operating lease right-of-use assets	$	52.4
Other accrued liabilities	$	19.3
Operating lease liabilities	34.3
Total operating lease liabilities	$	53.6

Weighted-average lease terms and discount rates as of September 28, 2019, are as follows:

	September 28, 2019
Weighted-average remaining lease terms:
Finance leases	4.7 years
Operating leases	3.4 years
Weighted-average discount rates:
Finance leases	3.9%
Operating leases	3.0%

Maturities of lease liabilities as of September 28, 2019, are as follows:

(Amounts in millions)	Operating Leases		Finance Leases
Year:
2019 (excluding the nine months ended September 28, 2019)	$	5.6	$	0.8
2020	19.0		3.3
2021	14.1		3.1
2022	9.4		2.8
2023	4.4		2.6
2024 and thereafter	3.9		2.3
Total lease payments	56.4		14.9
Less: amount representing interest	(2.8)		(1.2)
Total lease liabilities	$	53.6	$	13.7

As of September 28, 2019, Snap-on does not have any significant additional operating or finance leases that have not yet commenced.

Snap-on’s future minimum lease commitments, net of sub-lease rental income, as of December 29, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:

(Amounts in millions)	Operating   Leases		Capital Leases
Year:
2019	$	25.6	$	3.3
2020	18.4		3.2
2021	13.9		2.9
2022	9.8		2.5
2023	4.9		2.2
2024 and thereafter	4.4		1.9
Total minimum lease payments	$	77.0	16.0
Less: amount representing interest			(0.9)
Total present value of minimum capital lease payments			$	15.1

Amounts included in the accompanying Condensed Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2018 year end are as follows: 

(Amounts in millions)	December 29, 2018
Other accrued liabilities	$	3.0
Other long-term liabilities	12.1
Total present value of minimum capital lease payments	$	15.1

Rent expense for worldwide facilities, office equipment and vehicles, net of sub-lease rental income, was $33.0 million in 2018.

Lessor Accounting

Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics and equipment products and to franchisees who require financing for vehicle leases. Snap-on accounts for its financial services leases as sales-type leases. In certain circumstances, the lessee has the option to terminate the lease. In the event of the lessee’s deteriorated financial condition or default, Snap-on has the right to terminate the lease. The leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee.

The company recognizes the net investment in the lease as the sum of the lease receivable and the unguaranteed residual value, both of which are measured at the present value using the interest rate implicit in the lease. The difference between the undiscounted lease payments received over the lease term and the related net investment in the lease is reported as unearned finance charges. Unearned finance charges are amortized to income over the life of the contract and are included as a component of “Financial services revenue” on the accompanying Condensed Consolidated Statements of Earnings.

Sales-type leases included in both “Finance receivables - net” and “Long-term finance receivables - net” on the accompanying Condensed Consolidated Balance Sheets as of September 28, 2019, have future minimum lease payments, including unguaranteed residual value, of $91.4 million and unearned finance charges of $17.8 million, with lease terms of up to five years.

Sales-type leases included in both “Contract receivables - net” and “Long-term contract receivables - net” on the accompanying Condensed Consolidated Balance Sheets as of September 28, 2019, have future minimum lease payments, including unguaranteed residual value, of $256.9 million and unearned finance charges of $46.1 million, with lease terms of up to seven years.

Future minimum lease payments as of September 28, 2019, consisted of the following:

(Amounts in millions)	Lease Receivables
Year:
2019 (excluding the nine months ended September 28, 2019)	$	28.9
2020	109.3
2021	80.3
2022	55.5
2023	37.9
2024 and thereafter	36.4
Total lease payments	348.3
Less: unearned finance charges	(63.9)
Net investment in leases	$	284.4

See Note 4 for further information on finance and contract receivables.

Leases

Leases

At the beginning of fiscal 2019, Snap-on adopted ASU No. 2016-02, Leases (Topic 842). The adoption of Topic 842 did not have a significant impact on the company’s consolidated financial statements. Finance leases and lessor accounting remained substantially unchanged. The adoption of Topic 842 impacted the company’s previously reported results as follows:

(Amounts in millions)	Classification	Balance at December 29, 2018		Topic 842 Adjustments		Opening Balance at December 30, 2018
Assets
Finance lease assets	Property and equipment - net	$	7.8	$	—	$	7.8
Operating lease assets	Operating lease right-of-use assets	—		60.5		60.5
Liabilities
Current:
Finance lease liabilities	Other accrued liabilities	$	1.2	$	—	$	1.2
Operating lease liabilities	Other accrued liabilities	—		20.2		20.2
Non-current:
Finance lease liabilities	Other long-term liabilities	$	6.6	$	—	$	6.6
Operating lease liabilities	Operating lease liabilities	—		40.4		40.4

Lessee Accounting

Snap-on determines if an arrangement is a lease at inception. Snap-on has operating and finance leases for manufacturing plants, distribution centers, software development facilities, financial services offices, data centers, company store vans and certain equipment. Snap-on’s leases have lease terms of one year to 20 years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the company’s sole discretion. Certain leases also include options to purchase the leased property. When deemed reasonably certain of exercise, the renewal and purchase options are included in the determination of the lease term and lease payment obligation, respectively. The depreciable life of assets and leasehold improvements are limited to the expected term, unless there is a transfer of title or purchase option reasonably certain of exercise. The company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants.

ROU assets represent Snap-on’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, Snap-on uses the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, Snap-on uses its country specific incremental borrowing rate based on the information available at the lease commencement date, including the lease term. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Snap-on has lease agreements with lease and non-lease components, which are generally accounted for separately. For all equipment leases, including vehicles, Snap-on accounts for the lease and non-lease components as a single lease component.

Total lease costs consist of the following:

	Three Months Ended		Nine Months Ended
(Amounts in millions)	September 28, 2019		September 28, 2019
Finance lease costs*:
Amortization of ROU assets	$	0.4	$	1.1
Interest on lease liabilities	0.1		0.2
Operating lease costs*	6.1		18.6
Total lease costs	$	6.6	$	19.9

* Includes short-term leases, variable lease costs and sublease income, which are immaterial.

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended
(Amounts in millions)	September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	1.0
Operating cash flows from finance leases	0.2
Operating cash flows from operating leases	17.5
ROU assets obtained in exchange for new lease obligations:
Finance lease liabilities	$	1.3
Operating lease liabilities	9.6

Supplemental balance sheet information related to leases as of September 28, 2019, is as follows:

(Amounts in millions)	September 28, 2019
Finance leases:
Property and equipment - gross	$	9.2
Accumulated depreciation and amortization	(1.1)
Property and equipment - net	$	8.1
Other accrued liabilities	$	2.9
Other long-term liabilities	10.8
Total finance lease liabilities	$	13.7
Operating leases:
Operating lease right-of-use assets	$	52.4
Other accrued liabilities	$	19.3
Operating lease liabilities	34.3
Total operating lease liabilities	$	53.6

Weighted-average lease terms and discount rates as of September 28, 2019, are as follows:

	September 28, 2019
Weighted-average remaining lease terms:
Finance leases	4.7 years
Operating leases	3.4 years
Weighted-average discount rates:
Finance leases	3.9%
Operating leases	3.0%

Maturities of lease liabilities as of September 28, 2019, are as follows:

(Amounts in millions)	Operating Leases		Finance Leases
Year:
2019 (excluding the nine months ended September 28, 2019)	$	5.6	$	0.8
2020	19.0		3.3
2021	14.1		3.1
2022	9.4		2.8
2023	4.4		2.6
2024 and thereafter	3.9		2.3
Total lease payments	56.4		14.9
Less: amount representing interest	(2.8)		(1.2)
Total lease liabilities	$	53.6	$	13.7

As of September 28, 2019, Snap-on does not have any significant additional operating or finance leases that have not yet commenced.

Snap-on’s future minimum lease commitments, net of sub-lease rental income, as of December 29, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:

(Amounts in millions)	Operating   Leases		Capital Leases
Year:
2019	$	25.6	$	3.3
2020	18.4		3.2
2021	13.9		2.9
2022	9.8		2.5
2023	4.9		2.2
2024 and thereafter	4.4		1.9
Total minimum lease payments	$	77.0	16.0
Less: amount representing interest			(0.9)
Total present value of minimum capital lease payments			$	15.1

Amounts included in the accompanying Condensed Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2018 year end are as follows: 

(Amounts in millions)	December 29, 2018
Other accrued liabilities	$	3.0
Other long-term liabilities	12.1
Total present value of minimum capital lease payments	$	15.1

Rent expense for worldwide facilities, office equipment and vehicles, net of sub-lease rental income, was $33.0 million in 2018.

Lessor Accounting

Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics and equipment products and to franchisees who require financing for vehicle leases. Snap-on accounts for its financial services leases as sales-type leases. In certain circumstances, the lessee has the option to terminate the lease. In the event of the lessee’s deteriorated financial condition or default, Snap-on has the right to terminate the lease. The leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee.

The company recognizes the net investment in the lease as the sum of the lease receivable and the unguaranteed residual value, both of which are measured at the present value using the interest rate implicit in the lease. The difference between the undiscounted lease payments received over the lease term and the related net investment in the lease is reported as unearned finance charges. Unearned finance charges are amortized to income over the life of the contract and are included as a component of “Financial services revenue” on the accompanying Condensed Consolidated Statements of Earnings.

Sales-type leases included in both “Finance receivables - net” and “Long-term finance receivables - net” on the accompanying Condensed Consolidated Balance Sheets as of September 28, 2019, have future minimum lease payments, including unguaranteed residual value, of $91.4 million and unearned finance charges of $17.8 million, with lease terms of up to five years.

Sales-type leases included in both “Contract receivables - net” and “Long-term contract receivables - net” on the accompanying Condensed Consolidated Balance Sheets as of September 28, 2019, have future minimum lease payments, including unguaranteed residual value, of $256.9 million and unearned finance charges of $46.1 million, with lease terms of up to seven years.

Future minimum lease payments as of September 28, 2019, consisted of the following:

(Amounts in millions)	Lease Receivables
Year:
2019 (excluding the nine months ended September 28, 2019)	$	28.9
2020	109.3
2021	80.3
2022	55.5
2023	37.9
2024 and thereafter	36.4
Total lease payments	348.3
Less: unearned finance charges	(63.9)
Net investment in leases	$	284.4

See Note 4 for further information on finance and contract receivables.

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Summary of Accounting Policies - (Policies)

9 Months Ended

Sep. 28, 2019

Accounting Policies [Abstract]

Principles of consolidation and presentation

Principles of consolidation and presentation

The Condensed Consolidated Financial Statements include the accounts of Snap-on Incorporated and its wholly-owned and majority-owned subsidiaries (collectively, “Snap-on” or the “company”). These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Snap-on’s 2018 Annual Report on Form 10-K for the fiscal year ended December 29, 2018 (“2018 year end”). The company’s 2019 fiscal third quarter ended on September 28, 2019; the 2018 fiscal third quarter ended on September 29, 2018. Each of the company’s 2019 and 2018 fiscal first, second and third quarters contained 13 weeks of operating results. Snap-on’s Condensed Consolidated Financial Statements are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three and nine month periods ended September 28, 2019, and September 29, 2018, have been made. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Financial Instruments

Financial Instruments

The fair value of the company’s derivative financial instruments is generally determined using quoted prices in active markets for similar assets and liabilities. The carrying value of the company’s non-derivative financial instruments either approximates fair value, due to their short-term nature, or the amount disclosed for fair value is based upon a discounted cash flow analysis or quoted market values. See Note 9 for further information on financial instruments.

New Accounting Standards

New Accounting Standards

The following new accounting pronouncements were adopted in fiscal year 2019:

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in this update also made certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements.

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2018-02, Income Statement - Reporting Comprehensive Income - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220), which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (the “Tax Act”). The adoption of this ASU resulted in an increase of $45.9 million to retained earnings on the company’s Condensed Consolidated Statements of Equity with an offsetting decrease in Accumulated Other Comprehensive Income (Loss).

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 is intended to represent an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. Topic 842, which supersedes most current lease guidance, affects any entity that enters into a lease with some specified scope exemptions. Snap-on adopted Topic 842 using the modified retrospective approach, using a date of initial application of December 30, 2018. Snap-on elected the package of practical expedients permitted under the standard, which also allowed the company to carry forward historical lease classifications. The company also elected the practical expedient related to treating lease and non-lease components as a single lease component for all equipment leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the Right-of-Use (“ROU”) assets and lease liabilities. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements. See note 15 for further information on leases.

The following new accounting pronouncements, and related impacts on adoption, are being evaluated by the company:

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which is designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a significant impact on the company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020; the ASU allows for early adoption in any year end after issuance of the update. The adoption of this ASU is not expected to have a significant impact on the company’s consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-13, is to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

The adoption of Topic 326 will require the company to record an estimate of all expected credit losses based on historical experience, current conditions, and a reasonable and supportable forecast. This guidance will replace the company's current incurred loss model, which uses current expected credit losses to estimate credit loss reserves. Topic 326 is expected to increase the company’s allowance for doubtful accounts as a result of recording reserves for expected losses, as well as extending the loss estimate period over the entire life of the receivable, in addition to losses deemed to be already incurred. Snap-on commenced its assessment of Topic 326 during the second half of 2018 and developed a comprehensive project plan that included representatives from the company’s business segments. The project plan includes analyzing the standard’s potential change on the company’s allowance for doubtful accounts reserves, identifying reporting requirements of the new standard, and identifying changes to the company’s business processes, systems and controls, including model development and validation, to support the accounting and disclosures under Topic 326. Upon adoption, the allowance for doubtful accounts is expected to increase with an offsetting adjustment, net of taxes, to retained earnings. Updates to the estimate each period after initial adoption will be recorded through provision expense. The extent of the impact upon adoption will depend on the composition of the company’s receivable portfolio and economic conditions at that date, as well as forecasted conditions thereafter. The credit risk of the portfolio and associated losses will not change upon adoption. The company continues to assess the impact this ASU will have on its consolidated financial statements.

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Postretirement Health Care Plans - Net Periodic Postretirement Health Care Cost (Detail) - Postretirement Health Coverage - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Postretirement Health Care Plans [Line Items]
Interest cost	$ 0.4	$ 0.5	$ 1.4	$ 1.4
Expected return on plan assets	(0.1)	(0.2)	(0.5)	(0.6)
Amortization of unrecognized gain	(0.2)	(0.1)	(0.6)	(0.3)
Net periodic cost	$ 0.1	$ 0.2	$ 0.3	$ 0.5

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Segments - Assets by Segment (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Segment Reporting Information [Line Items]
Assets	$ 5,596.4	$ 5,373.1
Operating Segments
Segment Reporting Information [Line Items]
Assets	5,387.8	5,186.5
Operating Segments | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Assets	1,119.5	1,087.9
Operating Segments | Snap-on Tools Group
Segment Reporting Information [Line Items]
Assets	833.7	752.7
Operating Segments | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Assets	1,354.3	1,306.3
Operating Segments | Financial Services
Segment Reporting Information [Line Items]
Assets	2,080.3	2,039.6
Corporate
Segment Reporting Information [Line Items]
Assets	264.8	249.2
Elimination of intersegment receivables
Segment Reporting Information [Line Items]
Assets	$ (56.2)	$ (62.6)

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Goodwill and Other Intangible Assets - Weighted-Average Amortization Period by Major Class (Detail)	9 Months Ended
	Sep. 28, 2019
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	12 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	15 years
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	3 years
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	6 years
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	7 years
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	5 years
Other
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	39 years

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Leases - Weighted Average Terms and Discount Rates (Details)	Sep. 28, 2019
Weighted-average remaining lease terms:
Finance leases	4 years 8 months 12 days
Operating leases	3 years 4 months 24 days
Weighted-average discount rates:
Finance leases	3.90%
Operating leases	3.00%

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Other Income (Expense) - Net - Computation of Other Income (Expense) - Net (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Other Income and Expenses [Abstract]
Interest income	$ 0.4	$ 0.1	$ 1.1	$ 0.4
Net foreign exchange loss	(0.2)	(1.8)	(2.7)	(4.2)
Net periodic pension and postretirement benefits – non-service	2.5	1.3	7.5	2.7
Settlement of treasury lock	0.0	0.0	0.0	13.3
Loss on early extinguishment of debt	0.0	0.0	0.0	(7.8)
Other	0.1	(0.6)	0.5	(3.2)
Total other income (expense) – net	$ 2.8	$ (1.0)	$ 6.4	$ 1.2

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Financial Instruments - Narrative (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018	Sep. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Equity Forwards
Investment Holdings [Line Items]
Equity forwards in place of common stock associated with its deferred compensation plans (in shares)		108,000
Treasury locks
Investment Holdings [Line Items]
Treasury locks outstanding		$ 0	$ 0	$ 300,000,000
Treasury locks settled	$ 300,000,000
Gain on the settlement of the treasury lock	$ 13,300,000
Fair Value Hedging
Investment Holdings [Line Items]
Notional amount of interest rate swaps outstanding and designated as fair value hedges		$ 100,000,000	$ 100,000,000

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Revenue Recognition - Performance Obligations (Details) $ in Millions	Sep. 28, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Contractual obligation	$ 230.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue, remaining performance obligation, percentage of revenue recognized	50.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue, remaining performance obligation, percentage of revenue recognized	40.00%

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Segments - (Tables)

9 Months Ended

Sep. 28, 2019

Segment Reporting [Abstract]

Net Sales by Segment

Financial Data by Segment:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net sales:
Commercial & Industrial Group	$	335.3	$	330.2	$	992.8	$	999.6
Snap-on Tools Group	385.2		389.8		1,201.2		1,206.4
Repair Systems & Information Group	322.7		314.4		999.5		994.5
Segment net sales	1,043.2		1,034.4		3,193.5		3,200.5
Intersegment eliminations	(141.4)		(136.3)		(418.7)		(412.3)
Total net sales	$	901.8	$	898.1	$	2,774.8	$	2,788.2
Financial Services revenue	84.1		82.0		253.8		247.0
Total revenues	$	985.9	$	980.1	$	3,028.6	$	3,035.2
Operating earnings:
Commercial & Industrial Group	$	48.3	$	53.0	$	143.7	$	148.5
Snap-on Tools Group	53.0		59.3		191.5		207.2
Repair Systems & Information Group	83.3		80.7		255.5		255.2
Financial Services	61.0		59.3		183.7		174.0
Segment operating earnings	245.6		252.3		774.4		784.9
Corporate	(16.9)		(19.9)		(45.7)		(67.0)
Operating earnings	$	228.7	$	232.4	$	728.7	$	717.9
Interest expense	(12.0)		(12.4)		(36.9)		(38.0)
Other income (expense) – net	2.8		(1.0)		6.4		1.2
Earnings before income taxes and equity earnings	$	219.5	$	219.0	$	698.2	$	681.1

Assets by Segment

(Amounts in millions)	September 28, 2019		December 29, 2018
Assets:
Commercial & Industrial Group	$	1,119.5	$	1,087.9
Snap-on Tools Group	833.7		752.7
Repair Systems & Information Group	1,354.3		1,306.3
Financial Services	2,080.3		2,039.6
Total assets from reportable segments	$	5,387.8	$	5,186.5
Corporate	264.8		249.2
Elimination of intersegment receivables	(56.2)		(62.6)
Total assets	$	5,596.4	$	5,373.1

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Stock-based Compensation and Other Stock Plans - Performance Awards Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended		12 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average contractual term (in years)	3 years
Maximum stock percentage to be awarded	100.00%
Performance period	3 years
Weighted-average grant date fair value granted (in dollars per share)	$ 155.92	$ 161.18
Performance awards shares paid out (in shares)	32,114	50,182
Unrecognized compensation cost related to non-vested award	$ 12.0
Cost expected to be recognized over weighted-average period, in years	1 year 9 months 18 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	1 year
Cliff vesting schedule	2 years
Granted (in shares)			33,170	13,648	45,502

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Commitments and Contingencies - Summary of Product Warranty Accrual Activity (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning of period	$ 17.8	$ 17.5	$ 17.1	$ 17.2
Additions	3.8	3.0	12.5	10.9
Usage	(4.6)	(3.3)	(12.6)	(10.9)
End of period	$ 17.0	$ 17.2	$ 17.0	$ 17.2

XML

Stock-based Compensation and Other Stock Plans - Summary of Changes in Non-Vested Cash-Settled SARs (Details) - Cash-Settled Stock Appreciation Rights shares in Thousands	9 Months Ended
	Sep. 28, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares) | shares	3
Granted (in shares) | shares	1
Vested (in shares) | shares	(2)
Ending balance (in shares) | shares	2
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning balance (in dollars per share) | $ / shares	$ 14.89
Granted (in dollars per share) | $ / shares	22.90
Vested (in dollars per share) | $ / shares	21.38
Ending balance (in dollars per share) | $ / shares	$ 19.50

XML

Stock-based Compensation and Other Stock Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net stock-based compensation expense	$ 4.6	$ 8.0	$ 18.7	$ 22.6
Cash received from stock purchase and option plan exercises	1.6	25.8	26.2	54.1
Tax benefit realized from exercise and vesting of share-based payment arrangements	$ 1.0	$ 4.5	$ 5.6	$ 12.1
2011 Incentive Stock and Awards Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	2,007,654		2,007,654

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Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 28, 2019	Sep. 28, 2019
Leases [Abstract]
Amortization of ROU assets	$ 0.4	$ 1.1
Interest on lease liabilities	0.1	0.2
Operating lease costs	6.1	18.6
Total lease costs	$ 6.6	$ 19.9

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Stock-based Compensation and Other Stock Plans - Summary of Changes in Stock-Settled SARs (Details) - Stock-Settled SARs $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Sep. 28, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares) | shares	372
Granted (in shares) | shares	92
Exercised (in shares) | shares	(1)
Forfeited or expired (in shares) | shares	(6)
Ending balance (in shares) | shares	457
Exercisable (in shares) | shares	277
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning balance (in dollars per share) | $ / shares	$ 147.41
Granted (in dollars per share) | $ / shares	155.95
Exercised (in dollars per share) | $ / shares	96.57
Forfeited or expired (in dollars per share) | $ / shares	150.14
Ending balance (in dollars per share) | $ / shares	149.19
Exercisable (in dollars per share) | $ / shares	$ 142.29
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Outstanding, remaining contractual term	7 years 2 months 12 days
Outstanding, aggregate intrinsic value | $	$ 4.6
Exercisable, remaining contractual term	6 years 2 months 12 days
Exercisable, aggregate intrinsic value | $	$ 4.6

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Receivables - Schedule of Performing and Nonperforming Finance and Contract Receivables (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Financing Receivable, Credit Quality Indicator [Line Items]
Finance Receivables	$ 1,679.3	$ 1,654.3
Contract Receivables	457.3	447.5
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Finance Receivables	1,651.1	1,626.4
Contract Receivables	454.4	441.5
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Finance Receivables	28.2	27.9
Contract Receivables	$ 2.9	$ 6.0

XML

Inventories - Narrative (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018	Dec. 29, 2018
Geographic Valuation Methodologies Of Inventory [Line Items]
Percentage of FIFO Inventory	58.00%		58.00%		61.00%
Effect of LIFO inventory liquidation on income	$ 0	$ 0	$ 0	$ 0
United States
Geographic Valuation Methodologies Of Inventory [Line Items]
Percentage of FIFO Inventory	32.00%		32.00%
Percentage of LIFO Inventory	68.00%		68.00%

XML

Cover - shares	9 Months Ended
	Sep. 28, 2019	Oct. 11, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 28, 2019
Document Transition Report	false
Entity File Number	1-7724
Entity Registrant Name	Snap-on Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	39-0622040
Entity Address, Address Line One	2801 80th Street
Entity Address, City or Town	Kenosha
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53143
City Area Code	262
Local Phone Number	656-5200
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	SNA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		54,846,349
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
CIK	0000091440
Current Fiscal Year End Date	--12-28

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 28, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares issued (in shares)	67,423,030	67,415,091
Treasury stock (in shares)	12,576,741	11,804,310

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Stock-based Compensation and Other Stock Plans - (Tables)

9 Months Ended

Sep. 28, 2019

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:    

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of option (in years)	5.53	5.35
Expected volatility factor	21.30%	20.08%
Expected dividend yield	1.79%	1.68%
Risk-free interest rate	2.54%	2.71%

Summary of Stock Option Activity

A summary of stock option activity as of and for the nine months ended September 28, 2019, is presented below:

	Shares (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 29, 2018	3,130	$	127.57
Granted	462	155.93
Exercised	(191)	77.92
Forfeited or expired	(49)	161.24
Outstanding at September 28, 2019	3,352	133.82		6.2	$	82.8
Exercisable at September 28, 2019	2,404	123.47		5.2	82.8

* Weighted-average

Summary of Changes in Non-Vested Performance Awards

Changes to the company’s non-vested performance awards during the nine months ended September 28, 2019, are as follows:

	Shares (in thousands)	Fair Value Price per Share*
Non-vested performance awards at December 29, 2018	120	$	164.00
Granted	84	155.92
Vested	(2)	164.55
Cancellations and other	(42)	160.11
Non-vested performance awards at September 28, 2019	160	160.73

* Weighted-average

Stock-Settled SARs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of stock-settled SARs (in years)	3.65	3.58
Expected volatility factor	22.60%	20.08%
Expected dividend yield	1.81%	1.63%
Risk-free interest rate	2.48%	2.40%

Summary of Changes in SARs

Changes to the company’s stock-settled SARs during the nine months ended September 28, 2019, are as follows:

	Stock-settled SARs (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 29, 2018	372	$	147.41
Granted	92	155.95
Exercised	(1)	96.57
Forfeited or expired	(6)	150.14
Outstanding at September 28, 2019	457	149.19		7.2	$	4.6
Exercisable at September 28, 2019	277	142.29		6.2	4.6

* Weighted-average

Cash-Settled Stock Appreciation Rights

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of cash-settled SARs (in years)	3.09	3.01
Expected volatility factor	23.36%	21.22%
Expected dividend yield	1.94%	1.70%
Risk-free interest rate	1.58%	2.88%

Summary of Changes in SARs

Changes to the company’s non-vested cash-settled SARs during the nine months ended September 28, 2019, are as follows:

	Cash-settled SARs (in thousands)	Fair Value Price per Share*
Non-vested cash-settled SARs at December 29, 2018	3	$	14.89
Granted	1	22.90
Vested	(2)	21.38
Non-vested cash-settled SARs at September 28, 2019	2	19.50

* Weighted-average

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Short-term and Long-term Debt - (Tables)

9 Months Ended

Sep. 28, 2019

Debt Disclosure [Abstract]

Short-term and Long-term Debt

Short-term and long-term debt as of September 28, 2019, and December 29, 2018, consisted of the following:

(Amounts in millions)	September 28, 2019		December 29, 2018
6.125% unsecured notes due 2021	$	250.0	$	250.0
3.25% unsecured notes due 2027	300.0		300.0
4.10% unsecured notes due 2048	400.0		400.0
Other debt*	229.8		182.3
	1,179.8		1,132.3
Less: notes payable
Commercial paper borrowings	(218.8)		(177.1)
Other notes	(13.5)		(9.2)
	(232.3)		(186.3)
Total long-term debt	$	947.5	$	946.0

* Includes the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

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Summary of Accounting Policies

9 Months Ended

Sep. 28, 2019

Accounting Policies [Abstract]

Summary of Accounting Policies

Summary of Accounting Policies

Principles of consolidation and presentation

The Condensed Consolidated Financial Statements include the accounts of Snap-on Incorporated and its wholly-owned and majority-owned subsidiaries (collectively, “Snap-on” or the “company”). These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Snap-on’s 2018 Annual Report on Form 10-K for the fiscal year ended December 29, 2018 (“2018 year end”). The company’s 2019 fiscal third quarter ended on September 28, 2019; the 2018 fiscal third quarter ended on September 29, 2018. Each of the company’s 2019 and 2018 fiscal first, second and third quarters contained 13 weeks of operating results. Snap-on’s Condensed Consolidated Financial Statements are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three and nine month periods ended September 28, 2019, and September 29, 2018, have been made. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Financial Instruments

The fair value of the company’s derivative financial instruments is generally determined using quoted prices in active markets for similar assets and liabilities. The carrying value of the company’s non-derivative financial instruments either approximates fair value, due to their short-term nature, or the amount disclosed for fair value is based upon a discounted cash flow analysis or quoted market values. See Note 9 for further information on financial instruments.

New Accounting Standards

The following new accounting pronouncements were adopted in fiscal year 2019:

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in this update also made certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements.

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2018-02, Income Statement - Reporting Comprehensive Income - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220), which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (the “Tax Act”). The adoption of this ASU resulted in an increase of $45.9 million to retained earnings on the company’s Condensed Consolidated Statements of Equity with an offsetting decrease in Accumulated Other Comprehensive Income (Loss).

On December 30, 2018, the beginning of Snap-on’s 2019 fiscal year, Snap-on adopted ASU No. 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 is intended to represent an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. Topic 842, which supersedes most current lease guidance, affects any entity that enters into a lease with some specified scope exemptions. Snap-on adopted Topic 842 using the modified retrospective approach, using a date of initial application of December 30, 2018. Snap-on elected the package of practical expedients permitted under the standard, which also allowed the company to carry forward historical lease classifications. The company also elected the practical expedient related to treating lease and non-lease components as a single lease component for all equipment leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the Right-of-Use (“ROU”) assets and lease liabilities. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements. See note 15 for further information on leases.

The following new accounting pronouncements, and related impacts on adoption, are being evaluated by the company:

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which is designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a significant impact on the company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020; the ASU allows for early adoption in any year end after issuance of the update. The adoption of this ASU is not expected to have a significant impact on the company’s consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-13, is to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

The adoption of Topic 326 will require the company to record an estimate of all expected credit losses based on historical experience, current conditions, and a reasonable and supportable forecast. This guidance will replace the company's current incurred loss model, which uses current expected credit losses to estimate credit loss reserves. Topic 326 is expected to increase the company’s allowance for doubtful accounts as a result of recording reserves for expected losses, as well as extending the loss estimate period over the entire life of the receivable, in addition to losses deemed to be already incurred. Snap-on commenced its assessment of Topic 326 during the second half of 2018 and developed a comprehensive project plan that included representatives from the company’s business segments. The project plan includes analyzing the standard’s potential change on the company’s allowance for doubtful accounts reserves, identifying reporting requirements of the new standard, and identifying changes to the company’s business processes, systems and controls, including model development and validation, to support the accounting and disclosures under Topic 326. Upon adoption, the allowance for doubtful accounts is expected to increase with an offsetting adjustment, net of taxes, to retained earnings. Updates to the estimate each period after initial adoption will be recorded through provision expense. The extent of the impact upon adoption will depend on the composition of the company’s receivable portfolio and economic conditions at that date, as well as forecasted conditions thereafter. The credit risk of the portfolio and associated losses will not change upon adoption. The company continues to assess the impact this ASU will have on its consolidated financial statements.

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Postretirement Health Care Plans

9 Months Ended

Sep. 28, 2019

Postemployment Benefits [Abstract]

Postretirement Health Care Plans

Postretirement Health Care Plans

Snap-on’s net periodic postretirement health care cost included the following components: 

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Interest cost	$	0.4	$	0.5	$	1.4	$	1.4
Expected return on plan assets	(0.1)		(0.2)		(0.5)		(0.6)
Amortization of unrecognized gain	(0.2)		(0.1)		(0.6)		(0.3)
Net periodic postretirement health care cost	$	0.1	$	0.2	$	0.3	$	0.5

The components of net periodic postretirement health care cost, other than the service cost component, are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 16 for additional information on other income (expense) - net.

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Acquisitions

9 Months Ended

Sep. 28, 2019

Business Combinations [Abstract]

Acquisitions

Acquisitions

On August 7, 2019, Snap-on acquired Cognitran Limited ("Cognitran") for a preliminary cash purchase price of $30.7 million (or $29.7 million, net of cash acquired). The preliminary purchase price is subject to change based upon finalization of a working capital adjustment that is expected to be completed in the fourth quarter of 2019. Cognitran, based in Chelmsford, United Kingdom, specializes in flexible, modular and highly scalable "Software as a Service" (SaaS) products for OEM customers and their dealers, focused on the creation and delivery of service, diagnostics, parts and repair information to OEM dealers and connected vehicle platforms.

As of September 28, 2019, the company recorded, on a preliminary basis, the $27.7 million excess of the purchase price over the fair value of the net assets acquired in "Goodwill" on the accompanying Condensed Consolidated Balance Sheets. The company anticipates completing the purchase accounting for the acquired net assets of Cognitran, including the potential identification and quantification of other intangible assets, in the first half of 2020.

On April 2, 2019, Snap-on acquired Power Hawk Technologies, Inc. (“Power Hawk”) for a cash purchase price of $7.9 million. Power Hawk, based in Rockaway, New Jersey, designs, manufactures and distributes rescue tools and related equipment for a variety of military, governmental and fire, rescue and emergency operations. As of the third quarter of 2019, the company has completed the purchase accounting valuations for the acquired net assets of Power Hawk, including intangible assets. The $6.4 million excess of the purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

On January 25, 2019, Snap-on acquired substantially all of the assets of TMB GeoMarketing Limited (“TMB”) for a cash purchase price of $1.3 million. TMB, based in Dorking, United Kingdom, designs planning software used by OEMs to optimize dealer locations and manage the performance of dealer outlets. The company completed the purchase accounting valuations for the acquired net assets of TMB during the first quarter of 2019. Substantially all of the purchase price was recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

On January 31, 2018, Snap-on acquired substantially all of the assets of George A. Sturdevant, Inc. (d/b/a Fastorq) for a cash purchase price of $3.0 million. Fastorq, based in New Caney, Texas, designs, assembles and distributes hydraulic torque and hydraulic tensioning products for use in critical industries. As of the second quarter of 2018, the company completed the purchase accounting valuations for the acquired net assets of Fastorq. The $2.6 million excess of the purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

For segment reporting purposes, the results of operations and assets of Cognitran and TMB have been included in the Repair Systems and Information Group since each respective acquisition date, and the results of operations and assets of Power Hawk and Fastorq have been included in the Commercial & Industrial Group since each respective acquisition date.

Pro forma financial information has not been presented for these acquisitions as the net effects were neither significant nor material to Snap-on’s results of operations or financial position. See Note 6 for further information on goodwill and other intangible assets.

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Income Taxes

9 Months Ended

Sep. 28, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.8% and 24.6% in the first nine months of 2019 and 2018, respectively.  During the first nine months of 2018, the Internal Revenue Service issued new guidance affecting the computation of the company’s 2017 federal income tax liability. As a result of this new guidance and additional analysis of the impacts of the Tax Act, the company revised its prior estimates and recorded $1.8 million and $3.9 million of net tax expense during the three and nine months ended September 29, 2018. The additional $3.9 million tax provision during the first nine months of 2018 increased the company’s effective tax rate for the period by 50 basis points.

Snap-on and its subsidiaries file income tax returns in the United States and in various state, local and foreign jurisdictions. It is reasonably possible that certain unrecognized tax benefits may either be settled with taxing authorities or the statutes of limitations for such items may lapse within the next 12 months, causing Snap-on’s gross unrecognized tax benefits to decrease by a range of zero to $2.5 million. Over the next 12 months, Snap-on anticipates taking certain tax positions on various tax returns for which the related tax benefit does not meet the recognition threshold. Accordingly, Snap-on’s gross unrecognized tax benefits may increase by a range of zero to $0.9 million over the next 12 months for uncertain tax positions expected to be taken in future tax filings.

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Leases - Supplemental Cash Flow Information (Details) $ in Millions	9 Months Ended
	Sep. 28, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$ 1.0
Operating cash flows from finance leases	0.2
Operating cash flows from operating leases	17.5
ROU assets obtained in exchange for new lease obligations:
Finance lease liabilities	1.3
Operating lease liabilities	$ 9.6

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Stock-based Compensation and Other Stock Plans - Cash-Settled SARs, Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model (Details) - Cash-Settled Stock Appreciation Rights	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 years 1 month 2 days	3 years 3 days
Expected volatility factor	23.36%	21.22%
Expected dividend yield	1.94%	1.70%
Risk-free interest rate	1.58%	2.88%

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Stock-based Compensation and Other Stock Plans - Summary of Changes in Non-Vested Performance Awards (Details) - Nonvested Performance Shares shares in Thousands	9 Months Ended
	Sep. 28, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares) | shares	120
Granted (in shares) | shares	84
Vested (in shares) | shares	(2)
Cancellations and other (in shares) | shares	(42)
Ending balance (in shares) | shares	160
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning balance (in dollars per share) | $ / shares	$ 164.00
Granted (in dollars per share) | $ / shares	155.92
Vested (in dollars per share) | $ / shares	164.55
Cancellations and other (in dollars per share) | $ / shares	160.11
Ending balance (in dollars per share) | $ / shares	$ 160.73

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Commitments and Contingencies - Narrative (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 28, 2019	Dec. 29, 2018
Loss Contingencies [Line Items]
Benefit recorded in operating expenses related to settlement	$ 11.6
Patent Related Litigation Matter
Loss Contingencies [Line Items]
Loss contingency accrual		$ 30.9

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Stock-based Compensation and Other Stock Plans - Restricted Stock Awards Narrative (Details) - shares	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Restricted Stock | Non Employee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	7,605	6,975

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Stock-based Compensation and Other Stock Plans - Stock Options Narrative (Details) - Stock Option - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average contractual term (in years)			10 years
Weighted-average grant date fair value granted (in dollars per share)			$ 29.98	$ 30.21
Intrinsic value of stock exercised	$ 3.9	$ 18.1	$ 16.2	$ 39.3
Fair value of stock vested			15.7	$ 16.0
Unrecognized compensation cost related to non-vested award	$ 19.4		$ 19.4
Cost expected to be recognized over weighted-average period, in years			1 year 8 months 12 days

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Receivables - Aging of Finance and Contract Receivables (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Receivables [Abstract]
Finance receivables, 30-59 Days Past Due	$ 18.0	$ 19.4
Finance receivables, 60-90 Days Past Due	11.2	12.1
Finance receivables, Greater Than 90 Days Past Due	19.9	20.3
Finance receivables, Total Past Due	49.1	51.8
Finance receivables, Total Not Past Due	1,630.2	1,602.5
Finance receivables, Total	1,679.3	1,654.3
Finance receivables, Greater Than 90 Days Past Due and Accruing	15.7	15.9
Contract receivables, 30-59 Days Past Due	1.5	1.7
Contract receivables, 60-90 Days Past Due	1.0	1.2
Contract receivables, Greater Than 90 Days Past Due	1.6	5.2
Contract receivables, Total Past Due	4.1	8.1
Contract receivables, Total Not Past Due	453.2	439.4
Contract receivables, Total	457.3	447.5
Contract receivables, Greater Than 90 Days Past Due and Accruing	$ 0.2	$ 0.2

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Inventories - Inventories by Major Classification (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 650.8	$ 577.0
Work in progress	55.2	51.7
Raw materials	130.0	123.5
Total FIFO value	836.0	752.2
Excess of current cost over LIFO cost	(82.5)	(78.4)
Total inventories – net	$ 753.5	$ 673.8

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Earnings Per Share - (Tables)

9 Months Ended

Sep. 28, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Common Share

The shares used in the computation of the company’s basic and diluted earnings per common share are as follows:

	Three Months Ended		Nine Months Ended
	September 28, 2019	September 29, 2018	September 28, 2019	September 29, 2018
Weighted-average common shares outstanding	54,969,340	56,260,432	55,245,705	56,447,218
Effect of dilutive securities	687,602	1,073,501	755,157	1,033,190
Weighted-average common shares outstanding, assuming dilution	55,656,942	57,333,933	56,000,862	57,480,408

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Financial Instruments - (Tables)

9 Months Ended

Sep. 28, 2019

Investments, All Other Investments [Abstract]

Fair Values of Financial Instruments Not Approximating Carrying Values in Financial Statements

Fair Value of Financial Instruments: The fair values of financial instruments that do not approximate the carrying values in the financial statements are as follows:

	September 28, 2019				December 29, 2018
(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Finance receivables – net	$	1,618.2	$	1,912.4	$	1,592.9	$	1,845.4
Contract receivables – net	451.3		499.1		443.2		481.2
Long-term debt and notes payable	1,179.8		1,277.5		1,132.3		1,136.0

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Operating activities:
Net earnings	$ 536.2	$ 516.9
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation	52.2	52.0
Amortization of other intangibles	16.3	19.2
Provision for losses on finance receivables	35.8	41.5
Provision for losses on non-finance receivables	14.4	9.4
Stock-based compensation expense	18.7	22.6
Deferred income tax provision (benefit)	10.7	(6.9)
Loss on sales of assets	0.8	0.7
Loss on early extinguishment of debt	0.0	7.8
Changes in operating assets and liabilities, net of effects of acquisitions:
Increase in trade and other accounts receivable	(8.4)	(26.5)
Increase in contract receivables	(12.9)	(27.9)
Increase in inventories	(97.3)	(49.3)
Increase in prepaid and other assets	(17.0)	(1.1)
Increase in accounts payable	9.2	25.2
Decrease in accruals and other liabilities	(80.8)	(35.0)
Net cash provided by operating activities	477.9	548.6
Investing activities:
Additions to finance receivables	(628.1)	(643.5)
Collections of finance receivables	565.1	564.0
Capital expenditures	(77.8)	(68.5)
Acquisitions of businesses, net of cash acquired	(38.9)	(3.0)
Disposals of property and equipment	0.3	0.3
Other	(1.3)	1.3
Net cash used by investing activities	(180.7)	(149.4)
Financing activities:
Proceeds from issuance of long-term debt	0.0	395.4
Repayments of long-term debt	0.0	(457.8)
Repayment of notes payable	0.0	(16.8)
Net increase in other short-term borrowings	46.9	0.9
Cash dividends paid	(157.6)	(138.9)
Purchases of treasury stock	(167.2)	(184.4)
Proceeds from stock purchase and option plans	26.2	54.1
Other	(18.5)	(19.6)
Net cash used by financing activities	(270.2)	(367.1)
Effect of exchange rate changes on cash and cash equivalents	(0.4)	(1.9)
Increase in cash and cash equivalents	26.6	30.2
Cash and cash equivalents at beginning of year	140.9	92.0
Cash and cash equivalents at end of period	167.5	122.2
Supplemental cash flow disclosures:
Cash paid for interest	(44.8)	(49.7)
Net cash paid for income taxes	$ (140.5)	$ (148.1)

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 167.5	$ 140.9
Trade and other accounts receivable – net	684.8	692.6
Finance receivables – net	533.5	518.5
Contract receivables – net	102.7	98.3
Inventories – net	753.5	673.8
Prepaid expenses and other assets	105.9	92.8
Total current assets	2,347.9	2,216.9
Property and equipment:
Land	31.4	31.7
Buildings and improvements	392.6	368.6
Machinery, equipment and computer software	977.5	944.4
Total property and equipment	1,401.5	1,344.7
Accumulated depreciation and amortization	(889.7)	(849.6)
Property and equipment – net	511.8	495.1
Operating lease right-of-use assets	52.4
Deferred income tax assets	54.4	64.7
Long-term finance receivables – net	1,084.7	1,074.4
Long-term contract receivables – net	348.6	344.9
Goodwill	920.1	902.2
Other intangibles – net	225.2	232.9
Other assets	51.3	42.0
Total assets	5,596.4	5,373.1
Current liabilities:
Notes payable	232.3	186.3
Accounts payable	205.8	201.1
Accrued benefits	46.8	52.0
Accrued compensation	66.1	71.5
Franchisee deposits	76.8	67.5
Other accrued liabilities	362.3	373.6
Total current liabilities	990.1	952.0
Long-term debt	947.5	946.0
Deferred income tax liabilities	45.8	41.4
Retiree health care benefits	29.9	31.8
Pension liabilities	115.3	171.3
Operating lease liabilities	34.3
Other long-term liabilities	108.3	112.0
Total liabilities	2,271.2	2,254.5
Commitments and contingencies (Note 14)
Shareholders’ equity attributable to Snap-on Incorporated:
Preferred stock (authorized 15,000,000 shares of $1 par value; none outstanding)	0.0	0.0
Common stock (authorized 250,000,000 shares of $1 par value; issued 67,423,030 and 67,415,091 shares, respectively)	67.4	67.4
Additional paid-in capital	374.5	359.4
Retained earnings	4,668.3	4,257.6
Accumulated other comprehensive loss	(543.9)	(462.2)
Treasury stock at cost (12,576,741 and 11,804,310 shares, respectively)	(1,262.5)	(1,123.4)
Total shareholders’ equity attributable to Snap-on Incorporated	3,303.8	3,098.8
Noncontrolling interests	21.4	19.8
Total equity	3,325.2	3,118.6
Total liabilities and equity	$ 5,596.4	$ 5,373.1

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Revenue Recognition

9 Months Ended

Sep. 28, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue RecognitionSnap-on recognizes revenue from the sale of tools, diagnostic and equipment products and related services based on when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services.

Revenue Disaggregation

The following table shows the consolidated revenues by revenue source:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Revenue from contracts with customers	$	896.2	$	892.7	$	2,758.4	$	2,772.3
Other revenues	5.6		5.4		16.4		15.9
Total net sales	901.8		898.1		2,774.8		2,788.2
Financial services revenue	84.1		82.0		253.8		247.0
Total revenues	$	985.9	$	980.1	$	3,028.6	$	3,035.2

Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for both intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

The following table represents external net sales disaggregated by geography, based on the customers’ billing addresses:

	For the Three Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	125.3	$	337.6	$	188.3	$	—	$	—	$	651.2
Europe	65.1		28.3		54.6		—		—		148.0
All other	66.6		19.3		16.7		—		—		102.6
External net sales	257.0		385.2		259.6		—		—		901.8
Intersegment net sales	78.3		—		63.1		—		(141.4)		—
Total net sales	335.3		385.2		322.7		—		(141.4)		901.8
Financial services revenue	—		—		—		84.1		—		84.1
Total revenue	$	335.3	$	385.2	$	322.7	$	84.1	$	(141.4)	$	985.9
* North America is comprised of the United States, Canada and Mexico.

	For the Nine Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	355.8	$	1,039.3	$	575.7	$	—	$	—	$	1,970.8
Europe	214.8		101.7		176.4		—		—		492.9
All other	198.9		60.2		52.0		—		—		311.1
External net sales	769.5		1,201.2		804.1		—		—		2,774.8
Intersegment net sales	223.3		—		195.4		—		(418.7)		—
Total net sales	992.8		1,201.2		999.5		—		(418.7)		2,774.8
Financial services revenue	—		—		—		253.8		—		253.8
Total revenue	$	992.8	$	1,201.2	$	999.5	$	253.8	$	(418.7)	$	3,028.6

	For the Three Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	119.9	$	335.4	$	177.6	$	—	$	—	$	632.9
Europe	70.4		32.0		57.6		—		—		160.0
All other	65.4		22.4		17.4		—		—		105.2
External net sales	255.7		389.8		252.6		—		—		898.1
Intersegment net sales	74.5		—		61.8		—		(136.3)		—
Total net sales	330.2		389.8		314.4		—		(136.3)		898.1
Financial services revenue	—		—		—		82.0		—		82.0
Total revenue	$	330.2	$	389.8	$	314.4	$	82.0	$	(136.3)	$	980.1

	For the Nine Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	345.7	$	1,020.5	$	552.3	$	—	$	—	$	1,918.5
Europe	229.9		117.2		192.8		—		—		539.9
All other	206.0		68.7		55.1		—		—		329.8
External net sales	781.6		1,206.4		800.2		—		—		2,788.2
Intersegment net sales	218.0		—		194.3		—		(412.3)		—
Total net sales	999.6		1,206.4		994.5		—		(412.3)		2,788.2
Financial services revenue	—		—		—		247.0		—		247.0
Total revenue	$	999.6	$	1,206.4	$	994.5	$	247.0	$	(412.3)	$	3,035.2
* North America is comprised of the United States, Canada and Mexico.

The following table represents external net sales disaggregated by customer type:

	For the Three Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	20.8	$	385.2	$	259.6	$	—	$	—	$	665.6
All other professionals	236.2		—		—		—		—		236.2
External net sales	257.0		385.2		259.6		—		—		901.8
Intersegment net sales	78.3		—		63.1		—		(141.4)		—
Total net sales	335.3		385.2		322.7		—		(141.4)		901.8
Financial services revenue	—		—		—		84.1		—		84.1
Total revenue	$	335.3	$	385.2	$	322.7	$	84.1	$	(141.4)	$	985.9

	For the Nine Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	64.8	$	1,201.2	$	804.1	$	—	$	—	$	2,070.1
All other professionals	704.7		—		—		—		—		704.7
External net sales	769.5		1,201.2		804.1		—		—		2,774.8
Intersegment net sales	223.3		—		195.4		—		(418.7)		—
Total net sales	992.8		1,201.2		999.5		—		(418.7)		2,774.8
Financial services revenue	—		—		—		253.8		—		253.8
Total revenue	$	992.8	$	1,201.2	$	999.5	$	253.8	$	(418.7)	$	3,028.6

	For the Three Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	21.4	$	389.8	$	252.6	$	—	$	—	$	663.8
All other professionals	234.3		—		—		—		—		234.3
External net sales	255.7		389.8		252.6		—		—		898.1
Intersegment net sales	74.5		—		61.8		—		(136.3)		—
Total net sales	330.2		389.8		314.4		—		(136.3)		898.1
Financial services revenue	—		—		—		82.0		—		82.0
Total revenue	$	330.2	$	389.8	$	314.4	$	82.0	$	(136.3)	$	980.1

	For the Nine Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	69.5	$	1,206.4	$	800.2	$	—	$	—	$	2,076.1
All other professionals	712.1		—		—		—		—		712.1
External net sales	781.6		1,206.4		800.2		—		—		2,788.2
Intersegment net sales	218.0		—		194.3		—		(412.3)		—
Total net sales	999.6		1,206.4		994.5		—		(412.3)		2,788.2
Financial services revenue	—		—		—		247.0		—		247.0
Total revenue	$	999.6	$	1,206.4	$	994.5	$	247.0	$	(412.3)	$	3,035.2

Nature of Goods and Services

Snap-on derives net sales from a broad line of products and complementary services that are grouped into three categories: (i) tools; (ii) diagnostics, information and management systems; and (iii) equipment. The tools product category includes Snap-on’s hand tools, power tools, tool storage products and other similar products. The diagnostics, information and management systems product category includes handheld and PC-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer (“OEM”) purchasing facilitation services, and warranty management systems and analytics to help OEM dealerships manage and track performance. The equipment product category includes solutions for the service of vehicles and industrial equipment. Snap-on supports the sale of its diagnostics and vehicle service shop equipment by offering training programs as well as after-sales support to its customers. Through its financial services businesses, Snap-on also derives revenue from various financing programs designed to facilitate the sales of its products and support its franchise business.

Approximately 90% of Snap-on’s net sales are products sold at a point in time through ship-and-bill performance obligations that also includes service repair services. The remaining sales revenue is earned over time primarily on a subscription basis including software, extended warranty and other subscription service agreements.

Snap-on enters into contracts related to the selling of tools, diagnostic and repair information and equipment products and related services. At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services). To identify the performance obligations, Snap-on considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Contracts with customers are comprised of customer purchase orders, invoices and written contracts.

For certain performance obligations related to software subscriptions, extended warranty and other subscription agreements that are settled over time, Snap-on has elected not to disclose the value of unsatisfied performance obligations for: (i) contracts that have an original expected length of one year or less; (ii) contracts where revenue is recognized as invoiced; and (iii) contracts with variable consideration related to unsatisfied performance obligations.  The remaining duration of these unsatisfied performance obligations range from one month up to 60 months.  Snap-on had approximately $230.0 million of long-term contracts that have fixed consideration that extends beyond one year as of September 28, 2019. Snap-on expects to recognize approximately 50% of these contracts as revenue by the end of fiscal 2020, an additional 40% by the end of fiscal 2022 and the balance thereafter. 

Contract Liabilities (Deferred Revenues)Contract liabilities are recorded when cash payments are received in advance of Snap-on’s performance.  The timing of payment is typically on a monthly, quarterly or annual basis. The balance of total contract liabilities at September 28, 2019, and at December 29, 2018, was $67.2 million and $63.8 million, respectively.   The current portion of contract liabilities and the non-current portion are included in “Other accrued liabilities” and “Other long-term liabilities”, respectively, on the accompanying Condensed Consolidated Balance Sheets.  During the three and nine months ended September 28, 2019, Snap-on recognized revenue of $8.0 million and $43.2 million, respectively, that was included in the $63.8 million contract liability balance at December 29, 2018, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by segment for the nine months ended September 28, 2019, are as follows:

(Amounts in millions)	Commercial & Industrial Group		Snap-on Tools Group		Repair Systems & Information Group		Total
Balance as of December 29, 2018	$	286.2	$	12.5	$	603.5	$	902.2
Currency translation	(11.7)		—		(5.8)		(17.5)
Acquisitions and related adjustments	6.4		—		29.0		35.4
Balance as of September 28, 2019	$	280.9	$	12.5	$	626.7	$	920.1

Goodwill of $920.1 million as of September 28, 2019, includes $27.7 million, on a preliminary basis, from the acquisition of Cognitran, $6.4 million from the acquisition of Power Hawk, which reflects the final purchase accounting that was completed in the third quarter of 2019, and $1.3 million from the acquisition of TMB. The goodwill from Power Hawk is included in the Commercial & Industrial Group and the goodwill from Cognitran and TMB is included in the Repair Systems and Information Group. The company anticipates completing the purchase accounting for the Cognitran acquisition, including the potential identification and quantification of other intangible assets, in the first half of 2020. See Note 3 for additional information on acquisitions.

Additional disclosures related to other intangible assets are as follows:

	September 28, 2019				December 29, 2018
(Amounts in millions)	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Amortized other intangible assets:
Customer relationships	$	171.3	$	(114.3)	$	172.2	$	(107.6)
Developed technology	18.4		(18.3)		18.5		(18.3)
Internally developed software	165.1		(122.6)		156.6		(116.6)
Patents	37.3		(23.4)		35.7		(22.9)
Trademarks	3.3		(2.0)		3.2		(2.0)
Other	7.1		(3.0)		7.3		(2.9)
Total	402.5		(283.6)		393.5		(270.3)
Non-amortized trademarks	106.3		—		109.7		—
Total other intangible assets	$	508.8	$	(283.6)	$	503.2	$	(270.3)

As of September 28, 2019, the $171.3 million gross carrying value of customer relationships includes $0.9 million related to the Power Hawk acquisition.

Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2019; the evaluation of the testing did not result in any impairment. Significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to significant and long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, significant changes in key personnel or litigation, a significant and sustained decrease in share price and/or other events, including effects from the sale or disposal of a reporting unit, could require a provision for impairment of goodwill and/or other intangible assets in a future period. As of September 28, 2019, the company had no accumulated impairment losses.

The weighted-average amortization periods related to other intangible assets are as follows:

	In Years
Customer relationships	15
Developed technology	3
Internally developed software	6
Patents	7
Trademarks	5
Other	39

Snap-on is amortizing its customer relationships on both an accelerated and straight-line basis over a 15-year weighted-average life; the remaining intangibles are amortized on a straight-line basis. The weighted-average amortization period for all amortizable intangibles on a combined basis is 12 years.

The company’s customer relationships generally have contractual terms of three to five years and are typically renewed without significant cost to the company. The weighted-average 15-year life for customer relationships is based on the company’s historical renewal experience. Intangible asset renewal costs are expensed as incurred.

The aggregate amortization expense was $5.5 million and $16.3 million for the respective three and nine months ended September 28, 2019, and $6.2 million and $19.2 million for the respective three and nine months ended September 29, 2018. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $21.6 million in 2019, $19.2 million in 2020, $17.1 million in 2021, $14.0 million in 2022, $12.4 million in 2023, and $10.2 million in 2024.

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Pension Plans

9 Months Ended

Sep. 28, 2019

Retirement Benefits [Abstract]

Pension Plans

Pension Plans

Snap-on’s net periodic pension cost included the following components: 

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Service cost	$	5.9	$	6.3	$	17.7	$	18.9
Interest cost	14.1		13.2		42.3		39.6
Expected return on plan assets	(22.8)		(22.6)		(68.3)		(66.5)
Amortization of unrecognized loss	6.3		8.2		18.8		24.6
Amortization of prior service credit	(0.2)		(0.3)		(0.6)		(0.9)
Net periodic pension cost	$	3.3	$	4.8	$	9.9	$	15.7

The components of net periodic pension cost, other than the service cost component, are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 16 for additional information on other income (expense) - net.

Snap-on intends to make contributions of $9.4 million to its foreign pension plans and $2.0 million to its domestic pension plans in 2019, as required by law. In the first nine months of 2019, Snap-on made $40.0 million of discretionary cash contributions to its domestic pension plans. Depending on market and other conditions, Snap-on may make additional discretionary cash contributions to its pension plans in the remainder of 2019.

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Commitments and Contingencies

9 Months Ended

Sep. 28, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Snap-on provides product warranties for specific product lines and accrues for estimated future warranty cost in the period in which the sale is recorded. Snap-on calculates its accrual requirements based on historic warranty loss experience that is periodically adjusted for recent actual experience, including the timing of claims during the warranty period and actual costs incurred.

Snap-on’s product warranty accrual activity for the three and nine months ended September 28, 2019, and September 29, 2018, is as follows:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Warranty reserve:
Beginning of period	$	17.8	$	17.5	$	17.1	$	17.2
Additions	3.8		3.0		12.5		10.9
Usage	(4.6)		(3.3)		(12.6)		(10.9)
End of period	$	17.0	$	17.2	$	17.0	$	17.2

The Condensed Consolidated Balance Sheet as of December 29, 2018, included an accrual of $30.9 million related to a judgment from the fourth quarter of 2017 for a patent-related litigation matter that was being appealed. During the first nine months of 2019, that matter was settled and the company recognized an $11.6 million benefit in “Operating expenses” on the Condensed Consolidated Statements of Earnings for the nine months ended September 28, 2019, as a result of the settlement.

Snap-on is involved in various legal matters that are being litigated and/or settled in the ordinary course of business. Although it is not possible to predict the outcome of these legal matters, management believes that the results of all legal matters will not have a material impact on Snap-on’s consolidated financial position, results of operations or cash flows.

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Segments

9 Months Ended

Sep. 28, 2019

Segment Reporting [Abstract]

Segments

Segments

Snap-on’s business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance. Snap-on’s reportable business segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services. The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government, power generation, transportation and technical education market segments (collectively, “critical industries”), primarily through direct and distributor channels. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the company’s worldwide mobile tool distribution channel. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealership service and repair shops (“OEM dealerships”), through direct and distributor channels. Financial Services consists of the business operations of Snap-on’s finance subsidiaries.

Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Corporate assets consist of cash and cash equivalents (excluding cash held at Financial Services), deferred income taxes and certain other assets. All significant intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

Financial Data by Segment:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net sales:
Commercial & Industrial Group	$	335.3	$	330.2	$	992.8	$	999.6
Snap-on Tools Group	385.2		389.8		1,201.2		1,206.4
Repair Systems & Information Group	322.7		314.4		999.5		994.5
Segment net sales	1,043.2		1,034.4		3,193.5		3,200.5
Intersegment eliminations	(141.4)		(136.3)		(418.7)		(412.3)
Total net sales	$	901.8	$	898.1	$	2,774.8	$	2,788.2
Financial Services revenue	84.1		82.0		253.8		247.0
Total revenues	$	985.9	$	980.1	$	3,028.6	$	3,035.2
Operating earnings:
Commercial & Industrial Group	$	48.3	$	53.0	$	143.7	$	148.5
Snap-on Tools Group	53.0		59.3		191.5		207.2
Repair Systems & Information Group	83.3		80.7		255.5		255.2
Financial Services	61.0		59.3		183.7		174.0
Segment operating earnings	245.6		252.3		774.4		784.9
Corporate	(16.9)		(19.9)		(45.7)		(67.0)
Operating earnings	$	228.7	$	232.4	$	728.7	$	717.9
Interest expense	(12.0)		(12.4)		(36.9)		(38.0)
Other income (expense) – net	2.8		(1.0)		6.4		1.2
Earnings before income taxes and equity earnings	$	219.5	$	219.0	$	698.2	$	681.1

(Amounts in millions)	September 28, 2019		December 29, 2018
Assets:
Commercial & Industrial Group	$	1,119.5	$	1,087.9
Snap-on Tools Group	833.7		752.7
Repair Systems & Information Group	1,354.3		1,306.3
Financial Services	2,080.3		2,039.6
Total assets from reportable segments	$	5,387.8	$	5,186.5
Corporate	264.8		249.2
Elimination of intersegment receivables	(56.2)		(62.6)
Total assets	$	5,596.4	$	5,373.1

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Goodwill and Other Intangible Assets - Other Intangible Assets by Major Class (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 402.5	$ 393.5
Non-amortized trademarks	106.3	109.7
Accumulated Amortization	(283.6)	(270.3)
Total other intangible assets	508.8	503.2
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	171.3	172.2
Accumulated Amortization	(114.3)	(107.6)
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	18.4	18.5
Accumulated Amortization	(18.3)	(18.3)
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	165.1	156.6
Accumulated Amortization	(122.6)	(116.6)
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	37.3	35.7
Accumulated Amortization	(23.4)	(22.9)
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	3.3	3.2
Accumulated Amortization	(2.0)	(2.0)
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	7.1	7.3
Accumulated Amortization	$ (3.0)	$ (2.9)

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Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 30, 2018	Dec. 29, 2018
Finance leases:
Property and equipment - gross	$ 9.2
Accumulated depreciation and amortization	(1.1)
Property and equipment - net	8.1	$ 7.8	$ 7.8
Other accrued liabilities	2.9	1.2	1.2
Other long-term liabilities	10.8	6.6	$ 6.6
Total finance lease liabilities	13.7
Operating leases:
Operating lease right-of-use assets	52.4	60.5
Other accrued liabilities	19.3	20.2
Operating lease liabilities	34.3	$ 40.4
Total operating lease liabilities	$ 53.6

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Leases - Future Minimum Lease Payment Receivables (Details) $ in Millions	Sep. 28, 2019 USD ($)
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]
2019 (excluding the nine months ended September 28, 2019)	$ 28.9
2020	109.3
2021	80.3
2022	55.5
2023	37.9
2024 and thereafter	36.4
Total lease payments	348.3
Less: unearned finance charges	(63.9)
Net investment in leases	$ 284.4

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Short-term and Long-term Debt - Narrative (Detail)				3 Months Ended		9 Months Ended
	Sep. 16, 2019 USD ($)	Mar. 22, 2018 USD ($)	Feb. 20, 2018 USD ($)	Sep. 28, 2019 USD ($) revision	Sep. 29, 2018 USD ($)	Sep. 28, 2019 USD ($) revision	Sep. 29, 2018 USD ($)	Sep. 15, 2019 USD ($)	Dec. 29, 2018 USD ($)	Feb. 27, 2018 USD ($)
Schedule Of Debt Instruments [Line Items]
Notes payable				$ 232,300,000		$ 232,300,000			$ 186,300,000
Commercial paper outstanding				218,800,000		218,800,000			177,100,000
Other notes payable				13,500,000		13,500,000			$ 9,200,000
Loss on early extinguishment of debt				0	$ 0	0	$ 7,800,000
Proceeds from sale of unsecured long-term notes						$ 0	$ 395,400,000
Five-year Multi-Currency Revolving Credit Facility
Schedule Of Debt Instruments [Line Items]
Debt maturity, term	5 years					5 years
Revolving credit facility, amount available	$ 800,000,000							$ 700,000,000
Revolving credit facility, outstanding amount				$ 0		$ 0
Number of allowed revisions to debt ratios | revision				2		2
Actual debt-to-capital ratio				0.21		0.21
Actual debt-to-income ratio				0.96		0.96
Five-year Multi-Currency Revolving Credit Facility | Maximum
Schedule Of Debt Instruments [Line Items]
Maximum limit of required debt-to-capital ratio				0.60		0.60
Maximum limit of required debt-to-income ratio				3.50		3.50
Five-year Multi-Currency Revolving Credit Facility | Maximum | Material Acquisition
Schedule Of Debt Instruments [Line Items]
Maximum limit of required debt-to-capital ratio				0.65		0.65
Maximum limit of required debt-to-income ratio				4.00		4.00
Unsecured Notes Due 2019 - 6.70%
Schedule Of Debt Instruments [Line Items]
Debt instrument, face amount			$ 200,000,000
Unsecured notes, interest rate			6.70%
2019 Notes
Schedule Of Debt Instruments [Line Items]
Debt instrument, repurchase amount										$ 26,100,000
Payment for debt extinguishment		$ 209,100,000
Accrued interest		1,500,000
Loss on early extinguishment of debt		$ 7,800,000
4.10% Unsecured Notes Due 2048
Schedule Of Debt Instruments [Line Items]
Debt instrument, face amount			$ 400,000,000
Unsecured notes, interest rate			4.10%
Proceeds from sale of unsecured long-term notes			$ 395,400,000
Transaction costs			$ 3,500,000

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Pension Plans - Narrative (Detail) $ in Millions	9 Months Ended
	Sep. 28, 2019 USD ($)
Foreign Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Expected future employer contributions	$ 9.4
United States
Defined Benefit Plan Disclosure [Line Items]
Expected future employer contributions	2.0
Cash contributions made	$ 40.0

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Segments - Net Sales by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Segment Reporting Information [Line Items]
Total revenues	$ 985.9	$ 980.1	$ 3,028.6	$ 3,035.2
Operating earnings	228.7	232.4	728.7	717.9
Interest expense	(12.0)	(12.4)	(36.9)	(38.0)
Other income (expense) – net	2.8	(1.0)	6.4	1.2
Earnings before income taxes and equity earnings	219.5	219.0	698.2	681.1
Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	335.3	330.2	992.8	999.6
Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	385.2	389.8	1,201.2	1,206.4
Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	322.7	314.4	999.5	994.5
Financial Services
Segment Reporting Information [Line Items]
Total revenues	84.1	82.0	253.8	247.0
Operating Segments
Segment Reporting Information [Line Items]
Total revenues	1,043.2	1,034.4	3,193.5	3,200.5
Operating earnings	245.6	252.3	774.4	784.9
Operating Segments | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	335.3	330.2	992.8	999.6
Operating earnings	48.3	53.0	143.7	148.5
Operating Segments | Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	385.2	389.8	1,201.2	1,206.4
Operating earnings	53.0	59.3	191.5	207.2
Operating Segments | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	322.7	314.4	999.5	994.5
Operating earnings	83.3	80.7	255.5	255.2
Operating Segments | Financial Services
Segment Reporting Information [Line Items]
Operating earnings	61.0	59.3	183.7	174.0
Intersegment eliminations
Segment Reporting Information [Line Items]
Total revenues	(141.4)	(136.3)	(418.7)	(412.3)
Corporate
Segment Reporting Information [Line Items]
Operating earnings	(16.9)	(19.9)	(45.7)	(67.0)
Excluding Financial Services
Segment Reporting Information [Line Items]
Total revenues	901.8	898.1	2,774.8	2,788.2
Operating earnings	167.7	173.1	545.0	543.9
Excluding Financial Services | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	257.0	255.7	769.5	781.6
Excluding Financial Services | Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	385.2	389.8	1,201.2	1,206.4
Excluding Financial Services | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	259.6	252.6	804.1	800.2
Excluding Financial Services | Financial Services
Segment Reporting Information [Line Items]
Total revenues	0.0	0.0	0.0	0.0
Excluding Financial Services | Operating Segments
Segment Reporting Information [Line Items]
Total revenues	901.8	898.1	2,774.8	2,788.2
Excluding Financial Services | Operating Segments | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	335.3	330.2	992.8	999.6
Excluding Financial Services | Operating Segments | Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	385.2	389.8	1,201.2	1,206.4
Excluding Financial Services | Operating Segments | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	322.7	314.4	999.5	994.5
Excluding Financial Services | Operating Segments | Financial Services
Segment Reporting Information [Line Items]
Total revenues	0.0	0.0	0.0	0.0
Excluding Financial Services | Intersegment eliminations
Segment Reporting Information [Line Items]
Total revenues	(141.4)	(136.3)	(418.7)	(412.3)
Excluding Financial Services | Intersegment eliminations | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	78.3	74.5	223.3	218.0
Excluding Financial Services | Intersegment eliminations | Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	0.0	0.0	0.0	0.0
Excluding Financial Services | Intersegment eliminations | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	63.1	61.8	195.4	194.3
Excluding Financial Services | Intersegment eliminations | Financial Services
Segment Reporting Information [Line Items]
Total revenues	0.0	0.0	0.0	0.0
Financial Service
Segment Reporting Information [Line Items]
Total revenues	84.1	82.0	253.8	247.0
Operating earnings	61.0	59.3	183.7	174.0
Financial Service | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	0.0	0.0	0.0	0.0
Financial Service | Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	0.0	0.0	0.0	0.0
Financial Service | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	0.0	0.0	0.0	0.0
Financial Service | Financial Services
Segment Reporting Information [Line Items]
Total revenues	84.1	82.0	253.8	247.0
Financial Service | Intersegment eliminations
Segment Reporting Information [Line Items]
Total revenues	$ 0.0	$ 0.0	$ 0.0	$ 0.0

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Acquisitions - Narrative (Detail) - USD ($) $ in Millions					9 Months Ended
	Aug. 07, 2019	Apr. 02, 2019	Jan. 25, 2019	Jan. 31, 2018	Sep. 28, 2019	Sep. 29, 2018	Dec. 29, 2018
Business Acquisition [Line Items]
Payment to acquire business, net of cash acquired					$ 38.9	$ 3.0
Goodwill					920.1		$ 902.2
Cognitran Limited
Business Acquisition [Line Items]
Cash purchase price of acquisition	$ 30.7
Payment to acquire business, net of cash acquired	$ 29.7
Goodwill					27.7
Power Hawk Technologies Inc
Business Acquisition [Line Items]
Cash purchase price of acquisition		$ 7.9
Goodwill					6.4
TMB GeoMarketing Limited
Business Acquisition [Line Items]
Cash purchase price of acquisition			$ 1.3
Goodwill					$ 1.3
George A. Sturdevant, Inc. (d/b/a Fastorq)
Business Acquisition [Line Items]
Cash purchase price of acquisition				$ 3.0
Goodwill							$ 2.6

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Summary of Accounting Policies - Narrative (Detail) $ in Millions	Dec. 30, 2018 USD ($)
Accounting Policies [Abstract]
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	$ 45.9

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Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions	9 Months Ended
	Sep. 28, 2019 USD ($)
Goodwill [Roll Forward]
Balance as of December 29, 2018	$ 902.2
Currency translation	(17.5)
Acquisitions and related adjustments	35.4
Balance as of September 28, 2019	920.1
Commercial & Industrial Group
Goodwill [Roll Forward]
Balance as of December 29, 2018	286.2
Currency translation	(11.7)
Acquisitions and related adjustments	6.4
Balance as of September 28, 2019	280.9
Snap-on Tools Group
Goodwill [Roll Forward]
Balance as of December 29, 2018	12.5
Currency translation	0.0
Acquisitions and related adjustments	0.0
Balance as of September 28, 2019	12.5
Repair Systems & Information Group
Goodwill [Roll Forward]
Balance as of December 29, 2018	603.5
Currency translation	(5.8)
Acquisitions and related adjustments	29.0
Balance as of September 28, 2019	$ 626.7

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Receivables - Components of Current Finance and Contract Receivables (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Receivables [Abstract]
Finance receivables	$ 553.3	$ 538.1
Contract receivables	104.3	99.5
Total	657.6	637.6
Allowances for doubtful accounts:
Finance receivables	(19.8)	(19.6)
Contract receivables	(1.6)	(1.2)
Total	(21.4)	(20.8)
Total current finance and contract receivables – net	636.2	616.8
Finance receivables – net	533.5	518.5
Contract receivables – net	$ 102.7	$ 98.3

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Receivables - Schedule of Finance and Contract Receivables on Nonaccrual Status (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Receivables [Abstract]
Finance receivables	$ 12.5	$ 12.0
Contract receivables	$ 2.7	$ 5.8

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Stock-based Compensation and Other Stock Plans - Stock-Settled SARs, Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model (Details) - Stock-Settled SARs	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 years 7 months 24 days	3 years 6 months 29 days
Expected volatility factor	22.60%	20.08%
Expected dividend yield	1.81%	1.63%
Risk-free interest rate	2.48%	2.40%

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Leases - Lessee Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 28, 2019	Dec. 29, 2018
Lessee, Lease, Description [Line Items]
Rent expense		$ 33.0
Sales-type lease total future minimum lease payments	$ 348.3
Unearned finance charges	$ 63.9
Minimum
Lessee, Lease, Description [Line Items]
Operating and finance leases contract terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating and finance leases contract terms	20 years
Financing Receivable
Lessee, Lease, Description [Line Items]
Sales-type lease total future minimum lease payments	$ 91.4
Unearned finance charges	$ 17.8
Sales-type lease payment terms	5 years
Contract Receivable
Lessee, Lease, Description [Line Items]
Sales-type lease total future minimum lease payments	$ 256.9
Unearned finance charges	$ 46.1
Sales-type lease payment terms	7 years

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Earnings Per Share - Narrative (Detail) - shares	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Stock-Settled SARs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding options or stock settled SARs (in shares)	1,223,983	689,665

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Stock-based Compensation and Other Stock Plans - Summary of Changes in Stock Options (Details) - Stock Option $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Sep. 28, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (in shares) | shares	3,130
Granted (in shares) | shares	462
Exercised (in shares) | shares	(191)
Forfeited or expired (in shares) | shares	(49)
Ending balance (in shares) | shares	3,352
Exercisable at September 28, 2019 (in shares) | shares	2,404
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Beginning balance (in dollars per share) | $ / shares	$ 127.57
Granted (in dollars per share) | $ / shares	155.93
Exercised (in dollars per share) | $ / shares	77.92
Forfeited or expired (in dollars per share) | $ / shares	161.24
Ending balance (in dollars per share) | $ / shares	133.82
Exercisable at September 28, 2019 (in dollars per share) | $ / shares	$ 123.47
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, remaining contractual term (in years)	6 years 2 months 12 days
Exercisable, remaining contractual term (in years)	5 years 2 months 12 days
Outstanding, aggregate intrinsic value | $	$ 82.8
Exercisable, aggregate intrinsic value | $	$ 82.8

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Receivables

9 Months Ended

Sep. 28, 2019

Receivables [Abstract]

Receivables

Receivables

Trade and Other Accounts Receivable

Snap-on’s trade and other accounts receivable primarily arise from the sale of tools and diagnostic and equipment products to a broad range of industrial and commercial customers and to Snap-on’s independent franchise van channel on a non-extended-term basis with payment terms generally ranging from 30 to 120 days.

The components of Snap-on’s trade and other accounts receivable as of September 28, 2019, and December 29, 2018, are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Trade and other accounts receivable	$	705.0	$	710.1
Allowances for doubtful accounts	(20.2)		(17.5)
Total trade and other accounts receivable – net	$	684.8	$	692.6

Finance and Contract Receivables

Snap-on Credit LLC (“SOC”), the company’s financial services operation in the United States, originates extended-term finance and contract receivables on sales of Snap-on’s products sold through the U.S. franchisee and customer network and to certain other customers of Snap-on; Snap-on’s foreign finance subsidiaries provide similar financing internationally. Interest income on finance and contract receivables is included in “Financial services revenue” on the accompanying Condensed Consolidated Statements of Earnings.

Snap-on’s finance receivables are comprised of extended-term installment payment contracts to both technicians and independent shop owners (i.e., franchisees’ customers) to enable them to purchase tools and diagnostic and equipment products on an extended-term payment plan, generally with average payment terms of approximately four years. Finance receivables are generally secured by the underlying tools and/or diagnostic or equipment products financed.

Snap-on’s contract receivables, with payment terms of up to 10 years, are comprised of extended-term installment payment contracts to a broad base of customers worldwide, including shop owners, both independents and national chains, for their purchase of tools and diagnostic and equipment products. Contract receivables also include extended-term installment loans to franchisees to meet a number of financing needs, including working capital loans, loans to enable new franchisees to fund the purchase of the franchise and van leases, or the expansion of an existing franchise. Contract receivables are generally secured by the underlying tools and/or diagnostic or equipment products financed and, for installment loans to franchisees, other franchisee assets.

The components of Snap-on’s current finance and contract receivables as of September 28, 2019, and December 29, 2018, are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	553.3	$	538.1
Contract receivables	104.3		99.5
Total	657.6		637.6
Allowances for doubtful accounts:
Finance receivables	(19.8)		(19.6)
Contract receivables	(1.6)		(1.2)
Total	(21.4)		(20.8)
Total current finance and contract receivables – net	$	636.2	$	616.8
Finance receivables – net	$	533.5	$	518.5
Contract receivables – net	102.7		98.3
Total current finance and contract receivables – net	$	636.2	$	616.8

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of September 28, 2019, and December 29, 2018, are as follows: 

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	1,126.0	$	1,116.2
Contract receivables	353.0		348.0
Total	1,479.0		1,464.2
Allowances for doubtful accounts:
Finance receivables	(41.3)		(41.8)
Contract receivables	(4.4)		(3.1)
Total	(45.7)		(44.9)
Total long-term finance and contract receivables – net	$	1,433.3	$	1,419.3
Finance receivables – net	$	1,084.7	$	1,074.4
Contract receivables – net	348.6		344.9
Total long-term finance and contract receivables – net	$	1,433.3	$	1,419.3

Delinquency is the primary indicator of credit quality for finance and contract receivables. The entire receivable balance of a contract is considered delinquent when contractual payments become 30 days past due. Depending on the contract, payments for finance and contract receivables are due on a monthly or weekly basis. Weekly payments are converted into a monthly equivalent for purposes of calculating delinquency. Delinquencies are assessed at the end of each month following the monthly equivalent due date. Removal from delinquent status occurs when the cumulative number of monthly payments due has been received by the company.

Finance receivables are generally placed on nonaccrual status (nonaccrual of interest and other fees): (i) when a customer is placed on repossession status; (ii) upon receipt of notification of bankruptcy; (iii) upon notification of the death of a customer; or (iv) in other instances in which management concludes collectability is not reasonably assured. Finance receivables that are considered nonperforming include receivables that are on nonaccrual status and receivables that are generally more than 90 days past due.

Contract receivables are generally placed on nonaccrual status: (i) when a receivable is more than 90 days past due or at the point a customer’s account is placed on terminated status regardless of its delinquency status; (ii) upon notification of the death of a customer; or (iii) in other instances in which management concludes collectability is not reasonably assured. Contract receivables that are considered nonperforming include receivables that are on nonaccrual status and receivables that are generally more than 90 days past due.

The accrual of interest and other fees is resumed when the finance or contract receivable becomes contractually current and collection of all remaining contractual amounts due is reasonably assured. Finance and contract receivables are evaluated for impairment on a collective basis. A receivable is impaired when it is probable that all amounts related to the receivable will not be collected according to the contractual terms of the applicable agreement. Impaired finance and contract receivables are covered by the company’s respective allowances for doubtful accounts and are charged-off against the allowances when appropriate. As of September 28, 2019, and December 29, 2018, there were $28.2 million and $27.9 million, respectively, of impaired finance receivables, and there were $2.9 million and $6.0 million, respectively, of impaired contract receivables.

It is the general practice of Snap-on’s financial services business to not engage in contract or loan modifications. In limited instances, Snap-on’s financial services business may modify certain impaired receivables in troubled debt restructurings. The amount and number of restructured finance and contract receivables as of September 28, 2019, and December 29, 2018, were immaterial to both the financial services portfolio and the company’s results of operations and financial position.

The aging of finance and contract receivables as of September 28, 2019, and December 29, 2018, is as follows:

(Amounts in millions)	30-59 Days Past Due		60-90 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Total Not Past Due		Total		Greater Than 90 Days Past Due and Accruing
September 28, 2019:
Finance receivables	$	18.0	$	11.2	$	19.9	$	49.1	$	1,630.2	$	1,679.3	$	15.7
Contract receivables	1.5		1.0		1.6		4.1		453.2		457.3		0.2
December 29, 2018:
Finance receivables	$	19.4	$	12.1	$	20.3	$	51.8	$	1,602.5	$	1,654.3	$	15.9
Contract receivables	1.7		1.2		5.2		8.1		439.4		447.5		0.2

The amount of performing and nonperforming finance and contract receivables based on payment activity as of September 28, 2019, and December 29, 2018, is as follows: 

	September 28, 2019				December 29, 2018
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Performing	$	1,651.1	$	454.4	$	1,626.4	$	441.5
Nonperforming	28.2		2.9		27.9		6.0
Total	$	1,679.3	$	457.3	$	1,654.3	$	447.5

The amount of finance and contract receivables on nonaccrual status as of September 28, 2019, and December 29, 2018, is as follows: 

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	12.5	$	12.0
Contract receivables	2.7		5.8

The following is a rollforward of the allowances for doubtful accounts for finance and contract receivables for the three and nine months ended September 28, 2019, and September 29, 2018:

	Three Months Ended September 28, 2019				Nine Months Ended September 28, 2019
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	60.9	$	5.0	$	61.4	$	4.3
Provision	11.4		1.9		35.8		4.0
Charge-offs	(13.0)		(1.0)		(41.9)		(2.7)
Recoveries	1.9		—		5.9		0.3
Currency translation	(0.1)		0.1		(0.1)		0.1
End of period	$	61.1	$	6.0	$	61.1	$	6.0

	Three Months Ended September 29, 2018				Nine Months Ended September 29, 2018
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	59.0	$	4.8	$	56.5	$	4.6
Provision	12.1		0.4		41.5		1.5
Charge-offs	(13.3)		(0.7)		(43.7)		(1.8)
Recoveries	1.7		0.1		5.3		0.3
Currency translation	0.1		—		—		—
End of period	$	59.6	$	4.6	$	59.6	$	4.6

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Short-term and Long-term Debt

9 Months Ended

Sep. 28, 2019

Debt Disclosure [Abstract]

Short-term and Long-term Debt

Short-term and Long-term Debt

Short-term and long-term debt as of September 28, 2019, and December 29, 2018, consisted of the following:

(Amounts in millions)	September 28, 2019		December 29, 2018
6.125% unsecured notes due 2021	$	250.0	$	250.0
3.25% unsecured notes due 2027	300.0		300.0
4.10% unsecured notes due 2048	400.0		400.0
Other debt*	229.8		182.3
	1,179.8		1,132.3
Less: notes payable
Commercial paper borrowings	(218.8)		(177.1)
Other notes	(13.5)		(9.2)
	(232.3)		(186.3)
Total long-term debt	$	947.5	$	946.0

* Includes the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

Notes payable of $232.3 million as of September 28, 2019, included $218.8 million of commercial paper borrowings and $13.5 million of other notes. As of 2018 year end, notes payable of $186.3 million included $177.1 million of commercial paper borrowings and $9.2 million of other notes.

On February 20, 2018, Snap-on commenced a tender offer to repurchase $200 million in principal amount of its unsecured 6.70% notes that were scheduled to mature on March 1, 2019 (the “2019 Notes”), with $26.1 million of the 2019 Notes tendered and repaid on February 27, 2018. On February 20, 2018, Snap-on also issued a notice of redemption for any remaining outstanding 2019 Notes not tendered, with the redemption completed on March 22, 2018. The total cash cost for this tender and redemption was $209.1 million, including accrued interest of $1.5 million. Snap-on recorded $7.8 million for the loss on the early extinguishment of debt related to the 2019 Notes, which included the redemption premium and other issuance costs associated with this debt in “Other income (expense) - net” on the accompanying Condensed Consolidated Statement of Earnings. See Note 16 for additional information on Other income (expense) - net.

On February 20, 2018, Snap-on sold, at a discount, $400 million of unsecured 4.10% long-term notes that mature on March 1, 2048 (the “2048 Notes”). Interest on the 2048 Notes accrues at a rate of 4.10% per year and is paid semi-annually. Snap-on used a portion of the $395.4 million of net proceeds from the sale of the 2048 Notes, reflecting $3.5 million of transaction costs, to repay the 2019 Notes. The remaining net proceeds were used to repay a portion of its then-outstanding commercial paper borrowings and for general corporate purposes.

On September 16, 2019, Snap-on entered into a five-year, $800 million multi-currency revolving credit facility that terminates on September 16, 2024 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of September 28, 2019. The Credit Facility amended and restated in its entirety Snap-on's previous $700 million multi-currency revolving credit facility that was set to terminate on December 15, 2020. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of Consolidated Net Debt to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of September 28, 2019, the company’s actual ratios of 0.21 and 0.96 respectively, were both within the permitted ranges set forth in this financial covenant. Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.

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Postretirement Health Care Plans - (Tables)

9 Months Ended

Sep. 28, 2019

Postemployment Benefits [Abstract]

Net Periodic Postretirement Health Care Cost

Snap-on’s net periodic postretirement health care cost included the following components: 

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Interest cost	$	0.4	$	0.5	$	1.4	$	1.4
Expected return on plan assets	(0.1)		(0.2)		(0.5)		(0.6)
Amortization of unrecognized gain	(0.2)		(0.1)		(0.6)		(0.3)
Net periodic postretirement health care cost	$	0.1	$	0.2	$	0.3	$	0.5

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Goodwill and Other Intangible Assets - (Tables)

9 Months Ended

Sep. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill by Segment

The changes in the carrying amount of goodwill by segment for the nine months ended September 28, 2019, are as follows:

(Amounts in millions)	Commercial & Industrial Group		Snap-on Tools Group		Repair Systems & Information Group		Total
Balance as of December 29, 2018	$	286.2	$	12.5	$	603.5	$	902.2
Currency translation	(11.7)		—		(5.8)		(17.5)
Acquisitions and related adjustments	6.4		—		29.0		35.4
Balance as of September 28, 2019	$	280.9	$	12.5	$	626.7	$	920.1

Other Intangible Assets by Major Class

Additional disclosures related to other intangible assets are as follows:

	September 28, 2019				December 29, 2018
(Amounts in millions)	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Amortized other intangible assets:
Customer relationships	$	171.3	$	(114.3)	$	172.2	$	(107.6)
Developed technology	18.4		(18.3)		18.5		(18.3)
Internally developed software	165.1		(122.6)		156.6		(116.6)
Patents	37.3		(23.4)		35.7		(22.9)
Trademarks	3.3		(2.0)		3.2		(2.0)
Other	7.1		(3.0)		7.3		(2.9)
Total	402.5		(283.6)		393.5		(270.3)
Non-amortized trademarks	106.3		—		109.7		—
Total other intangible assets	$	508.8	$	(283.6)	$	503.2	$	(270.3)

Weighted-Average Amortization Period by Major Class

The weighted-average amortization periods related to other intangible assets are as follows:

	In Years
Customer relationships	15
Developed technology	3
Internally developed software	6
Patents	7
Trademarks	5
Other	39

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Leases - (Tables)

9 Months Ended

Sep. 28, 2019

Leases [Abstract]

Summary of Effects of New Accounting Pronouncement

The adoption of Topic 842 impacted the company’s previously reported results as follows:

(Amounts in millions)	Classification	Balance at December 29, 2018		Topic 842 Adjustments		Opening Balance at December 30, 2018
Assets
Finance lease assets	Property and equipment - net	$	7.8	$	—	$	7.8
Operating lease assets	Operating lease right-of-use assets	—		60.5		60.5
Liabilities
Current:
Finance lease liabilities	Other accrued liabilities	$	1.2	$	—	$	1.2
Operating lease liabilities	Other accrued liabilities	—		20.2		20.2
Non-current:
Finance lease liabilities	Other long-term liabilities	$	6.6	$	—	$	6.6
Operating lease liabilities	Operating lease liabilities	—		40.4		40.4

Schedule of Lease Cost

Total lease costs consist of the following:

	Three Months Ended		Nine Months Ended
(Amounts in millions)	September 28, 2019		September 28, 2019
Finance lease costs*:
Amortization of ROU assets	$	0.4	$	1.1
Interest on lease liabilities	0.1		0.2
Operating lease costs*	6.1		18.6
Total lease costs	$	6.6	$	19.9

* Includes short-term leases, variable lease costs and sublease income, which are immaterial.

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended
(Amounts in millions)	September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	1.0
Operating cash flows from finance leases	0.2
Operating cash flows from operating leases	17.5
ROU assets obtained in exchange for new lease obligations:
Finance lease liabilities	$	1.3
Operating lease liabilities	9.6

Schedule of Lease Supplemental Balance Sheet Information and Weighted-Average Lease Terms and Discount Rates

Supplemental balance sheet information related to leases as of September 28, 2019, is as follows:

(Amounts in millions)	September 28, 2019
Finance leases:
Property and equipment - gross	$	9.2
Accumulated depreciation and amortization	(1.1)
Property and equipment - net	$	8.1
Other accrued liabilities	$	2.9
Other long-term liabilities	10.8
Total finance lease liabilities	$	13.7
Operating leases:
Operating lease right-of-use assets	$	52.4
Other accrued liabilities	$	19.3
Operating lease liabilities	34.3
Total operating lease liabilities	$	53.6

Weighted-average lease terms and discount rates as of September 28, 2019, are as follows:

	September 28, 2019
Weighted-average remaining lease terms:
Finance leases	4.7 years
Operating leases	3.4 years
Weighted-average discount rates:
Finance leases	3.9%
Operating leases	3.0%

Schedule of Operating Lease Liability Maturities (Topic 842)

Maturities of lease liabilities as of September 28, 2019, are as follows:

(Amounts in millions)	Operating Leases		Finance Leases
Year:
2019 (excluding the nine months ended September 28, 2019)	$	5.6	$	0.8
2020	19.0		3.3
2021	14.1		3.1
2022	9.4		2.8
2023	4.4		2.6
2024 and thereafter	3.9		2.3
Total lease payments	56.4		14.9
Less: amount representing interest	(2.8)		(1.2)
Total lease liabilities	$	53.6	$	13.7

Schedule of Finance Lease Liability Maturities (Topic 842)

Maturities of lease liabilities as of September 28, 2019, are as follows:

(Amounts in millions)	Operating Leases		Finance Leases
Year:
2019 (excluding the nine months ended September 28, 2019)	$	5.6	$	0.8
2020	19.0		3.3
2021	14.1		3.1
2022	9.4		2.8
2023	4.4		2.6
2024 and thereafter	3.9		2.3
Total lease payments	56.4		14.9
Less: amount representing interest	(2.8)		(1.2)
Total lease liabilities	$	53.6	$	13.7

Schedule of Future Minimum Rental Payments for Operating Leases (Topic 840)

Snap-on’s future minimum lease commitments, net of sub-lease rental income, as of December 29, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:

(Amounts in millions)	Operating   Leases		Capital Leases
Year:
2019	$	25.6	$	3.3
2020	18.4		3.2
2021	13.9		2.9
2022	9.8		2.5
2023	4.9		2.2
2024 and thereafter	4.4		1.9
Total minimum lease payments	$	77.0	16.0
Less: amount representing interest			(0.9)
Total present value of minimum capital lease payments			$	15.1

Schedule of Future Minimum Lease Payments for Capital Leases (Topic 840)

Snap-on’s future minimum lease commitments, net of sub-lease rental income, as of December 29, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:

(Amounts in millions)	Operating   Leases		Capital Leases
Year:
2019	$	25.6	$	3.3
2020	18.4		3.2
2021	13.9		2.9
2022	9.8		2.5
2023	4.9		2.2
2024 and thereafter	4.4		1.9
Total minimum lease payments	$	77.0	16.0
Less: amount representing interest			(0.9)
Total present value of minimum capital lease payments			$	15.1

Schedule of Minimum Capital Lease Payments Present Value

Amounts included in the accompanying Condensed Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2018 year end are as follows: 

(Amounts in millions)	December 29, 2018
Other accrued liabilities	$	3.0
Other long-term liabilities	12.1
Total present value of minimum capital lease payments	$	15.1

Schedule of Sales-type Lease Receivable Maturities

Future minimum lease payments as of September 28, 2019, consisted of the following:

(Amounts in millions)	Lease Receivables
Year:
2019 (excluding the nine months ended September 28, 2019)	$	28.9
2020	109.3
2021	80.3
2022	55.5
2023	37.9
2024 and thereafter	36.4
Total lease payments	348.3
Less: unearned finance charges	(63.9)
Net investment in leases	$	284.4

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Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Net sales	$ 985.9	$ 980.1	$ 3,028.6	$ 3,035.2
Operating earnings	228.7	232.4	728.7	717.9
Interest expense	(12.0)	(12.4)	(36.9)	(38.0)
Other income (expense) – net	2.8	(1.0)	6.4	1.2
Earnings before income taxes and equity earnings	219.5	219.0	698.2	681.1
Income tax expense	(50.4)	(51.5)	(162.9)	(164.9)
Earnings before equity earnings	169.1	167.5	535.3	516.2
Equity earnings (loss), net of tax	0.1	(0.1)	0.9	0.7
Net earnings	169.2	167.4	536.2	516.9
Net earnings attributable to noncontrolling interests	(4.6)	(4.2)	(13.3)	(12.0)
Net earnings attributable to Snap-on Incorporated	$ 164.6	$ 163.2	$ 522.9	$ 504.9
Net earnings per share attributable to Snap-on Incorporated:
Basic (in dollars per share)	$ 2.99	$ 2.90	$ 9.47	$ 8.95
Diluted (in dollars per share)	$ 2.96	$ 2.85	$ 9.34	$ 8.78
Weighted-average shares outstanding:
Basic (in shares)	55.0	56.3	55.2	56.4
Effect of dilutive securities (in shares)	0.7	1.0	0.8	1.1
Diluted (in shares)	55.7	57.3	56.0	57.5
Dividends declared per common share (in dollars per share)	$ 0.95	$ 0.82	$ 2.85	$ 2.46
Excluding Financial Services
Net sales	$ 901.8	$ 898.1	$ 2,774.8	$ 2,788.2
Cost of goods sold	(453.7)	(444.2)	(1,381.3)	(1,375.6)
Gross profit	448.1	453.9	1,393.5	1,412.6
Operating expenses	(280.4)	(280.8)	(848.5)	(868.7)
Operating earnings	167.7	173.1	545.0	543.9
Financial Service
Net sales	84.1	82.0	253.8	247.0
Cost of goods sold	(23.1)	(22.7)	(70.1)	(73.0)
Operating earnings	$ 61.0	$ 59.3	$ 183.7	$ 174.0

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Condensed Consolidated Statements of Equity (Unaudited) Statement - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interests
Beginning balance at Dec. 30, 2017	$ 2,972.3	$ 67.4	$ 343.2	$ 3,772.3	$ (329.0)	$ (900.0)	$ 18.4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	516.9			504.9			12.0
Other comprehensive (loss) income	(40.7)				(40.7)
Cash dividends	(138.9)			(138.9)
Stock compensation plans	72.1		17.7			54.4
Share repurchases	(184.4)					(184.4)
Other	(13.2)			(2.5)			(10.7)
Ending balance at Sep. 29, 2018	3,184.1	67.4	360.9	4,135.8	(369.7)	(1,030.0)	19.7
Beginning balance at Jun. 30, 2018	3,111.6	67.4	352.6	4,018.9	(377.3)	(968.4)	18.4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	167.4			163.2			4.2
Other comprehensive (loss) income	7.6				7.6
Cash dividends	(46.1)			(46.1)
Stock compensation plans	32.4		8.3			24.1
Share repurchases	(85.7)					(85.7)
Other	(3.1)			(0.2)			(2.9)
Ending balance at Sep. 29, 2018	3,184.1	67.4	360.9	4,135.8	(369.7)	(1,030.0)	19.7
Beginning balance at Dec. 29, 2018	3,118.6	67.4	359.4	4,257.6	(462.2)	(1,123.4)	19.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	45.9			45.9	(45.9)
Ending balance at Dec. 30, 2018	3,118.6	67.4	359.4	4,303.5	(508.1)	(1,123.4)	19.8
Beginning balance at Dec. 29, 2018	3,118.6	67.4	359.4	4,257.6	(462.2)	(1,123.4)	19.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	536.2			522.9			13.3
Other comprehensive (loss) income	(35.8)				(35.8)
Cash dividends	(157.6)			(157.6)
Stock compensation plans	43.2		15.1			28.1
Share repurchases	(167.2)					(167.2)
Other	(12.2)			(0.5)			(11.7)
Ending balance at Sep. 28, 2019	3,325.2	67.4	374.5	4,668.3	(543.9)	(1,262.5)	21.4
Beginning balance at Jun. 29, 2019	3,308.7	67.4	371.7	4,556.1	(500.7)	(1,206.4)	20.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	169.2			164.6			4.6
Other comprehensive (loss) income	(43.2)				(43.2)
Cash dividends	(52.3)			(52.3)
Stock compensation plans	6.4		2.8			3.6
Share repurchases	(59.7)					(59.7)
Other	(3.9)			(0.1)			(3.8)
Ending balance at Sep. 28, 2019	$ 3,325.2	$ 67.4	$ 374.5	$ 4,668.3	$ (543.9)	$ (1,262.5)	$ 21.4

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Revenue Recognition - (Tables)

9 Months Ended

Sep. 28, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table shows the consolidated revenues by revenue source:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Revenue from contracts with customers	$	896.2	$	892.7	$	2,758.4	$	2,772.3
Other revenues	5.6		5.4		16.4		15.9
Total net sales	901.8		898.1		2,774.8		2,788.2
Financial services revenue	84.1		82.0		253.8		247.0
Total revenues	$	985.9	$	980.1	$	3,028.6	$	3,035.2

Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for both intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

The following table represents external net sales disaggregated by geography, based on the customers’ billing addresses:

	For the Three Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	125.3	$	337.6	$	188.3	$	—	$	—	$	651.2
Europe	65.1		28.3		54.6		—		—		148.0
All other	66.6		19.3		16.7		—		—		102.6
External net sales	257.0		385.2		259.6		—		—		901.8
Intersegment net sales	78.3		—		63.1		—		(141.4)		—
Total net sales	335.3		385.2		322.7		—		(141.4)		901.8
Financial services revenue	—		—		—		84.1		—		84.1
Total revenue	$	335.3	$	385.2	$	322.7	$	84.1	$	(141.4)	$	985.9
* North America is comprised of the United States, Canada and Mexico.

	For the Nine Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	355.8	$	1,039.3	$	575.7	$	—	$	—	$	1,970.8
Europe	214.8		101.7		176.4		—		—		492.9
All other	198.9		60.2		52.0		—		—		311.1
External net sales	769.5		1,201.2		804.1		—		—		2,774.8
Intersegment net sales	223.3		—		195.4		—		(418.7)		—
Total net sales	992.8		1,201.2		999.5		—		(418.7)		2,774.8
Financial services revenue	—		—		—		253.8		—		253.8
Total revenue	$	992.8	$	1,201.2	$	999.5	$	253.8	$	(418.7)	$	3,028.6

	For the Three Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	119.9	$	335.4	$	177.6	$	—	$	—	$	632.9
Europe	70.4		32.0		57.6		—		—		160.0
All other	65.4		22.4		17.4		—		—		105.2
External net sales	255.7		389.8		252.6		—		—		898.1
Intersegment net sales	74.5		—		61.8		—		(136.3)		—
Total net sales	330.2		389.8		314.4		—		(136.3)		898.1
Financial services revenue	—		—		—		82.0		—		82.0
Total revenue	$	330.2	$	389.8	$	314.4	$	82.0	$	(136.3)	$	980.1

	For the Nine Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales by geographic region:
North America*	$	345.7	$	1,020.5	$	552.3	$	—	$	—	$	1,918.5
Europe	229.9		117.2		192.8		—		—		539.9
All other	206.0		68.7		55.1		—		—		329.8
External net sales	781.6		1,206.4		800.2		—		—		2,788.2
Intersegment net sales	218.0		—		194.3		—		(412.3)		—
Total net sales	999.6		1,206.4		994.5		—		(412.3)		2,788.2
Financial services revenue	—		—		—		247.0		—		247.0
Total revenue	$	999.6	$	1,206.4	$	994.5	$	247.0	$	(412.3)	$	3,035.2
* North America is comprised of the United States, Canada and Mexico.

The following table represents external net sales disaggregated by customer type:

	For the Three Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	20.8	$	385.2	$	259.6	$	—	$	—	$	665.6
All other professionals	236.2		—		—		—		—		236.2
External net sales	257.0		385.2		259.6		—		—		901.8
Intersegment net sales	78.3		—		63.1		—		(141.4)		—
Total net sales	335.3		385.2		322.7		—		(141.4)		901.8
Financial services revenue	—		—		—		84.1		—		84.1
Total revenue	$	335.3	$	385.2	$	322.7	$	84.1	$	(141.4)	$	985.9

	For the Nine Months Ended September 28, 2019
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	64.8	$	1,201.2	$	804.1	$	—	$	—	$	2,070.1
All other professionals	704.7		—		—		—		—		704.7
External net sales	769.5		1,201.2		804.1		—		—		2,774.8
Intersegment net sales	223.3		—		195.4		—		(418.7)		—
Total net sales	992.8		1,201.2		999.5		—		(418.7)		2,774.8
Financial services revenue	—		—		—		253.8		—		253.8
Total revenue	$	992.8	$	1,201.2	$	999.5	$	253.8	$	(418.7)	$	3,028.6

	For the Three Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	21.4	$	389.8	$	252.6	$	—	$	—	$	663.8
All other professionals	234.3		—		—		—		—		234.3
External net sales	255.7		389.8		252.6		—		—		898.1
Intersegment net sales	74.5		—		61.8		—		(136.3)		—
Total net sales	330.2		389.8		314.4		—		(136.3)		898.1
Financial services revenue	—		—		—		82.0		—		82.0
Total revenue	$	330.2	$	389.8	$	314.4	$	82.0	$	(136.3)	$	980.1

	For the Nine Months Ended September 29, 2018
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
Vehicle service professionals	$	69.5	$	1,206.4	$	800.2	$	—	$	—	$	2,076.1
All other professionals	712.1		—		—		—		—		712.1
External net sales	781.6		1,206.4		800.2		—		—		2,788.2
Intersegment net sales	218.0		—		194.3		—		(412.3)		—
Total net sales	999.6		1,206.4		994.5		—		(412.3)		2,788.2
Financial services revenue	—		—		—		247.0		—		247.0
Total revenue	$	999.6	$	1,206.4	$	994.5	$	247.0	$	(412.3)	$	3,035.2

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Stock-based Compensation and Other Stock Plans

9 Months Ended

Sep. 28, 2019

Share-based Payment Arrangement [Abstract]

Stock-based Compensation and Other Stock Plans

Stock-based Compensation and Other Stock Plans

The 2011 Incentive Stock and Awards Plan (the “2011 Plan”) provides for the grant of stock options, performance awards, stock appreciation rights (“SARs”) and restricted stock awards (which may be designated as “restricted stock units” or “RSUs”). No further grants are being made under its predecessor, the 2001 Incentive Stock and Awards Plan (the “2001 Plan”), although outstanding awards under the 2001 Plan will continue in accordance with their terms. As of September 28, 2019, the 2011 Plan had 2,007,654 shares available for future grants. The company uses treasury stock to deliver shares under both the 2001 and 2011 Plans.

Net stock-based compensation expense was $4.6 million and $18.7 million for the respective three and nine months ended September 28, 2019, and $8.0 million and $22.6 million for the respective three and nine months ended September 29, 2018. Cash received from stock purchase and option plan exercises during the respective three and nine months ended September 28, 2019, totaled $1.6 million and $26.2 million. Cash received from stock purchase and option plan exercises during the respective three and nine months ended September 29, 2018, totaled $25.8 million and $54.1 million. The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $1.0 million and $5.6 million for the respective three and nine months ended September 28, 2019, and $4.5 million and $12.1 million for the respective three and nine months ended September 29, 2018.

Stock Options

Stock options are granted with an exercise price equal to the market value of a share of Snap-on’s common stock on the date of grant and have a contractual term of ten years. Stock option grants vest ratably on the first, second and third anniversaries of the date of grant.

The fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model. The company uses historical data regarding stock option exercise and forfeiture behaviors for different participating groups to estimate the period of time that options granted are expected to be outstanding. Expected volatility is based on the historical volatility of the company’s stock for the length of time corresponding to the expected term of the option. The expected dividend yield is based on the company’s historical dividend payments. The risk-free interest rate is based on the U.S. treasury yield curve on the grant date for the expected term of the option.

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:    

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of option (in years)	5.53	5.35
Expected volatility factor	21.30%	20.08%
Expected dividend yield	1.79%	1.68%
Risk-free interest rate	2.54%	2.71%

A summary of stock option activity as of and for the nine months ended September 28, 2019, is presented below:

	Shares (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 29, 2018	3,130	$	127.57
Granted	462	155.93
Exercised	(191)	77.92
Forfeited or expired	(49)	161.24
Outstanding at September 28, 2019	3,352	133.82		6.2	$	82.8
Exercisable at September 28, 2019	2,404	123.47		5.2	82.8

* Weighted-average

The weighted-average grant date fair value of options granted during the nine months ended September 28, 2019, and September 29, 2018, was $29.98 and $30.21, respectively. The intrinsic value of options exercised was $3.9 million and $16.2 million during the respective three and nine months ended September 28, 2019, and $18.1 million and $39.3 million during the respective three and nine months ended September 29, 2018. The fair value of stock options vested was $15.7 million and $16.0 million during the respective nine months ended September 28, 2019, and September 29, 2018.

As of September 28, 2019, there was $19.4 million of unrecognized compensation cost related to non-vested stock options that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

Performance Awards

Performance awards, which are granted as performance share units (“PSUs”) and performance-based RSUs, are earned and expensed using the fair value of the award over a contractual term of three years based on the company’s performance. Vesting of the performance awards is dependent upon performance relative to pre-defined goals for revenue growth and return on net assets for the applicable performance period. For performance achieved above specified levels, the recipient may earn additional shares of stock, not to exceed 100% of the number of performance awards initially granted.

The PSUs have a three-year performance period based on the results of the consolidated financial metrics of the company. The performance-based RSUs have a one-year performance period based on the results of the consolidated financial metrics of the company followed by a two-year cliff vesting schedule, assuming continued employment.

The fair value of performance awards is calculated using the market value of a share of Snap-on’s common stock on the date of grant and assumed forfeitures based on recent historical experience; in recent years, forfeitures have not been significant. The weighted-average grant date fair value of performance awards granted during the nine months ended September 28, 2019, and September 29, 2018, was $155.92 and $161.18, respectively. PSUs related to 32,114 shares and 50,182 shares were paid out during the respective nine months ended September 28, 2019, and September 29, 2018. Earned PSUs are generally paid out following the conclusion of the applicable performance period upon approval by the Organization and Executive Compensation Committee of the company’s Board of Directors (the “Board”).

Based on the company’s 2018 performance, 33,170 RSUs granted in 2018 were earned; assuming continued employment, these RSUs will vest at the end of fiscal 2020. Based on the company’s 2017 performance, 13,648 RSUs granted in 2017 were earned; assuming continued employment, these RSUs will vest at the end of fiscal 2019. Based on the company’s 2016 performance, 45,502 RSUs granted in 2016 were earned; these RSUs vested as of fiscal 2018 year end and were paid out shortly thereafter.

Changes to the company’s non-vested performance awards during the nine months ended September 28, 2019, are as follows:

	Shares (in thousands)	Fair Value Price per Share*
Non-vested performance awards at December 29, 2018	120	$	164.00
Granted	84	155.92
Vested	(2)	164.55
Cancellations and other	(42)	160.11
Non-vested performance awards at September 28, 2019	160	160.73

* Weighted-average

As of September 28, 2019, there was $12.0 million of unrecognized compensation cost related to non-vested performance awards that is expected to be recognized as a charge to earnings over a weighted-average period of 1.8 years.

Stock Appreciation Rights (“SARs”)

The company also issues stock-settled and cash-settled SARs to certain key non-U.S. employees. SARs have a contractual term of ten years and vest ratably on the first, second and third anniversaries of the date of grant. SARs are granted with an exercise price equal to the market value of a share of Snap-on’s common stock on the date of grant.

Stock-settled SARs are accounted for as equity instruments and provide for the issuance of Snap-on common stock equal to the amount by which the company’s stock has appreciated over the exercise price. Stock-settled SARs have an effect on dilutive shares and shares outstanding as any appreciation of Snap-on’s common stock value over the exercise price will be settled in shares of common stock. Cash-settled SARs provide for the cash payment of the excess of the fair market value of Snap-on’s common stock price on the date of exercise over the grant price. Cash-settled SARs have no effect on dilutive shares or shares outstanding as any appreciation of Snap-on’s common stock over the grant price is paid in cash and not in common stock.

The fair value of stock-settled SARs is estimated on the date of grant using the Black-Scholes valuation model. The fair value of cash-settled SARs is revalued (mark-to-market) each reporting period using the Black-Scholes valuation model based on Snap-on’s period-end stock price. The company uses historical data regarding SARs exercise and forfeiture behaviors for different participating groups to estimate the expected term of the SARs granted based on the period of time that similar instruments granted are expected to be outstanding. Expected volatility is based on the historical volatility of the company’s stock for the length of time corresponding to the expected term of the SARs. The expected dividend yield is based on the company’s historical dividend payments. The risk-free interest rate is based on the U.S. treasury yield curve in effect as of the grant date (for stock-settled SARs) or reporting date (for cash-settled SARs) for the length of time corresponding to the expected term of the SARs.

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of stock-settled SARs (in years)	3.65	3.58
Expected volatility factor	22.60%	20.08%
Expected dividend yield	1.81%	1.63%
Risk-free interest rate	2.48%	2.40%

Changes to the company’s stock-settled SARs during the nine months ended September 28, 2019, are as follows:

	Stock-settled SARs (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 29, 2018	372	$	147.41
Granted	92	155.95
Exercised	(1)	96.57
Forfeited or expired	(6)	150.14
Outstanding at September 28, 2019	457	149.19		7.2	$	4.6
Exercisable at September 28, 2019	277	142.29		6.2	4.6

* Weighted-average

The weighted-average grant date fair value of stock-settled SARs granted during the nine months ended September 28, 2019, and September 29, 2018, was $26.45 and $24.71, respectively. The intrinsic value of stock-settled SARs exercised was $0.1 million during both the three and nine months ended September 28, 2019, and $1.2 million and $1.8 million during the respective three and nine months ended September 29, 2018. The fair value of stock-settled SARs vested was $2.1 million and $2.2 million during the respective nine months ended September 28, 2019, and September 29, 2018.

As of September 28, 2019, there was $3.2 million of unrecognized compensation cost related to non-vested stock-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the nine months ended September 28, 2019, and September 29, 2018, using the Black-Scholes valuation model:

	Nine Months Ended
	September 28, 2019	September 29, 2018
Expected term of cash-settled SARs (in years)	3.09	3.01
Expected volatility factor	23.36%	21.22%
Expected dividend yield	1.94%	1.70%
Risk-free interest rate	1.58%	2.88%

The intrinsic value of cash-settled SARs exercised was zero and $0.5 million during the respective three and nine months ended September 28, 2019, and $1.1 million and $3.2 million during the respective three and nine months ended September 29, 2018. The fair value of cash-settled SARs vested was $0.1 million during both the nine months ended September 28, 2019, and September 29, 2018.

Changes to the company’s non-vested cash-settled SARs during the nine months ended September 28, 2019, are as follows:

	Cash-settled SARs (in thousands)	Fair Value Price per Share*
Non-vested cash-settled SARs at December 29, 2018	3	$	14.89
Granted	1	22.90
Vested	(2)	21.38
Non-vested cash-settled SARs at September 28, 2019	2	19.50

* Weighted-average

As of September 28, 2019, there was $0.1 million of unrecognized compensation cost related to non-vested cash-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

Restricted Stock Awards – Non-employee Directors

The company awarded 7,605 shares and 6,975 shares of restricted stock to non-employee directors for the respective nine months ended September 28, 2019, and September 29, 2018. The fair value of the restricted stock awards is expensed over a one-year vesting period based on the fair value on the date of grant. All restrictions generally lapse upon the earlier of the first anniversary of the grant date, the recipient’s death or disability or in the event of a change in control, as defined in the 2011 Plan. If termination of the recipient’s service occurs prior to the first anniversary of the grant date for any reason other than death or disability, the shares of restricted stock would be forfeited, unless otherwise determined by the Board.

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Other Income (Expense) - Net

9 Months Ended

Sep. 28, 2019

Other Income and Expenses [Abstract]

Other Income (Expense) - Net

Other Income (Expense) – Net

“Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings consists of the following:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Interest income	$	0.4	$	0.1	$	1.1	$	0.4
Net foreign exchange loss	(0.2)		(1.8)		(2.7)		(4.2)
Net periodic pension and postretirement benefits – non-service	2.5		1.3		7.5		2.7
Settlement of treasury lock	—		—		—		13.3
Loss on early extinguishment of debt	—		—		—		(7.8)
Other	0.1		(0.6)		0.5		(3.2)
Total other income (expense) – net	$	2.8	$	(1.0)	$	6.4	$	1.2

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Revenue Recognition - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 28, 2019	Sep. 28, 2019	Dec. 29, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue, performance obligation, description of timing		The remaining duration of these unsatisfied performance obligations range from one month up to 60 months.
Contract with customer, liability	$ 67.2	$ 67.2	$ 63.8
Contract with customer, liability, revenue recognized	$ 8.0	$ 43.2
Transferred at Point in Time | Sales Revenue, Net | Ship and Bill Performance Obligations
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk, percentage		90.00%

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Accumulated Other Comprehensive Income (Loss) - (Tables)

9 Months Ended

Sep. 28, 2019

Equity [Abstract]

Net Changes in Accumulated OCI by Component, Net of Tax

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 28, 2019:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance at June 29, 2019	$	(178.7)	$	11.5	$	(333.5)	$	(500.7)
Other comprehensive loss before reclassifications	(47.3)		—		—		(47.3)
Amounts reclassified from Accumulated OCI	—		(0.4)		4.5		4.1
Net other comprehensive income (loss)	(47.3)		(0.4)		4.5		(43.2)
Balance as of September 28, 2019	$	(226.0)	$	11.1	$	(329.0)	$	(543.9)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 28, 2019:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 29, 2018	$	(177.9)	$	12.2	$	(296.5)	$	(462.2)
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	—		—		(45.9)		(45.9)
Balance at December 30, 2018	(177.9)		12.2		(342.4)		(508.1)
Other comprehensive loss before reclassifications	(48.1)		—		—		(48.1)
Amounts reclassified from Accumulated OCI	—		(1.1)		13.4		12.3
Net other comprehensive income (loss)	(48.1)		(1.1)		13.4		(35.8)
Balance as of September 28, 2019	$	(226.0)	$	11.1	$	(329.0)	$	(543.9)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 29, 2018:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance at June 30, 2018	$	(141.0)	$	12.9	$	(249.2)	$	(377.3)
Other comprehensive income before reclassifications	2.0		—		—		2.0
Amounts reclassified from Accumulated OCI	—		(0.4)		6.0		5.6
Net other comprehensive income (loss)	2.0		(0.4)		6.0		7.6
Balance as of September 29, 2018	$	(139.0)	$	12.5	$	(243.2)	$	(369.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 29, 2018:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 30, 2017	$	(82.5)	$	14.5	$	(261.0)	$	(329.0)
Other comprehensive loss before reclassifications	(56.5)		(0.8)		—		(57.3)
Amounts reclassified from Accumulated OCI	—		(1.2)		17.8		16.6
Net other comprehensive income (loss)	(56.5)		(2.0)		17.8		(40.7)
Balance as of September 29, 2018	$	(139.0)	$	12.5	$	(243.2)	$	(369.7)

Reclassifications Out of Accumulated OCI

The reclassifications out of Accumulated OCI for the three and nine month periods ended September 28, 2019, and September 29, 2018, are as follows: 

	Amount Reclassified from Accumulated OCI
	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018		Statement of Earnings Presentation
(Amounts in millions)
Gains on cash flow hedges:
Treasury locks	$	0.4	$	0.4	$	1.1	$	1.2	Interest expense
Income tax expense	—		—		—		—		Income tax expense
Net of tax	0.4		0.4		1.1		1.2
Amortization of net unrecognized losses and prior service credits	(5.9)		(7.8)		(17.6)		(23.4)		See footnote below*
Income tax benefit	1.4		1.8		4.2		5.6		Income tax expense
Net of tax	(4.5)		(6.0)		(13.4)		(17.8)
Total reclassifications for the period, net of tax	$	(4.1)	$	(5.6)	$	(12.3)	$	(16.6)

* These Accumulated OCI components are included in the computation of net periodic pension and postretirement health care costs; see Note 10 and Note 11 for further information.

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Receivables - Components of Trade and Other Accounts Receivable (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Receivables [Abstract]
Trade and other accounts receivable	$ 705.0	$ 710.1
Allowances for doubtful accounts	(20.2)	(17.5)
Total trade and other accounts receivable – net	$ 684.8	$ 692.6

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Income Taxes - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Income Tax [Line Items]
Effective income tax rate		23.80%	24.60%
Tax Cuts And Jobs Act Of 2017, incomplete accounting, increase (decrease) in provisional income tax expense	$ 1.8		$ 3.9
Tax Cuts And Jobs Act Of 2017, incomplete accounting, increase in provisional income tax rate, basis points	0.50%		0.50%
Minimum
Income Tax [Line Items]
Decrease in unrecognized tax benefits		$ 0.0
Increase in unrecognized tax benefits		0.0
Maximum
Income Tax [Line Items]
Decrease in unrecognized tax benefits		2.5
Increase in unrecognized tax benefits		$ 0.9

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Leases - Maturities of Operating and Financing Lease Liabilities (Details) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2019 (excluding the nine months ended September 28, 2019)	$ 5.6
2020	19.0
2021	14.1
2022	9.4
2023	4.4
2024 and thereafter	3.9
Total lease payments	56.4
Less: amount representing interest	(2.8)
Total operating lease liabilities	53.6
Finance Lease, Liability, Payment, Due [Abstract]
2019 (excluding the nine months ended September 28, 2019)	0.8
2020	3.3
2021	3.1
2022	2.8
2023	2.6
2024 and thereafter	2.3
Total lease payments	14.9
Less: amount representing interest	(1.2)
Total finance lease liabilities	$ 13.7
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019		$ 25.6
2020		18.4
2021		13.9
2022		9.8
2023		4.9
2024 and thereafter		4.4
Total minimum lease payments		77.0
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract]
2019		3.3
2020		3.2
2021		2.9
2022		2.5
2023		2.2
2024 and thereafter		1.9
Total minimum lease payments		16.0
Less: amount representing interest		(0.9)
Total present value of minimum capital lease payments		$ 15.1

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Accumulated Other Comprehensive Income (Loss) - Net Changes in Accumulated OCI by Component, Net of Tax (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Dec. 30, 2018	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 3,118.6	$ 3,308.7	$ 3,111.6	$ 3,118.6	$ 2,972.3
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	45.9
Other comprehensive (loss) income before reclassifications		(47.3)	2.0	(48.1)	(57.3)
Amounts reclassified from Accumulated OCI		4.1	5.6	12.3	16.6
Net other comprehensive income (loss)		(43.2)	7.6	(35.8)	(40.7)
Ending balance	3,118.6	3,325.2	3,184.1	3,325.2	3,184.1
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(177.9)	(178.7)	(141.0)	(177.9)	(82.5)
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	0.0
Other comprehensive (loss) income before reclassifications		(47.3)	2.0	(48.1)	(56.5)
Amounts reclassified from Accumulated OCI		0.0	0.0	0.0	0.0
Net other comprehensive income (loss)		(47.3)	2.0	(48.1)	(56.5)
Ending balance	(177.9)	(226.0)	(139.0)	(226.0)	(139.0)
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	12.2	11.5	12.9	12.2	14.5
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	0.0
Other comprehensive (loss) income before reclassifications		0.0	0.0	0.0	(0.8)
Amounts reclassified from Accumulated OCI		(0.4)	(0.4)	(1.1)	(1.2)
Net other comprehensive income (loss)		(0.4)	(0.4)	(1.1)	(2.0)
Ending balance	12.2	11.1	12.5	11.1	12.5
Defined Benefit Pension and Postretirement Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(296.5)	(333.5)	(249.2)	(296.5)	(261.0)
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	(45.9)
Other comprehensive (loss) income before reclassifications		0.0	0.0	0.0	0.0
Amounts reclassified from Accumulated OCI		4.5	6.0	13.4	17.8
Net other comprehensive income (loss)		4.5	6.0	13.4	17.8
Ending balance	(342.4)	(329.0)	(243.2)	(329.0)	(243.2)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(462.2)	(500.7)	(377.3)	(462.2)	(329.0)
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	(45.9)
Net other comprehensive income (loss)		(43.2)	7.6	(35.8)	(40.7)
Ending balance	$ (508.1)	$ (543.9)	$ (369.7)	$ (543.9)	$ (369.7)

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Financial Instruments - Fair Values of Financial Instruments Not Approximating Carrying Values in Financial Statements (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt and notes payable	$ 1,179.8	$ 1,132.3
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables – net	1,618.2	1,592.9
Contract receivables – net	451.3	443.2
Long-term debt and notes payable	1,179.8	1,132.3
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables – net	1,912.4	1,845.4
Contract receivables – net	499.1	481.2
Long-term debt and notes payable	$ 1,277.5	$ 1,136.0

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Earnings Per Share

9 Months Ended

Sep. 28, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The shares used in the computation of the company’s basic and diluted earnings per common share are as follows:

	Three Months Ended		Nine Months Ended
	September 28, 2019	September 29, 2018	September 28, 2019	September 29, 2018
Weighted-average common shares outstanding	54,969,340	56,260,432	55,245,705	56,447,218
Effect of dilutive securities	687,602	1,073,501	755,157	1,033,190
Weighted-average common shares outstanding, assuming dilution	55,656,942	57,333,933	56,000,862	57,480,408

The dilutive effect of the potential exercise of outstanding options and stock-settled SARs to purchase common shares is calculated using the treasury stock method. As of September 28, 2019, there were 1,223,983 awards outstanding that were anti-dilutive; as of September 29, 2018, there were 689,665 awards outstanding that were anti-dilutive. Performance-based equity awards are included in the diluted earnings per share calculation based on the attainment of the applicable performance metrics to date.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 28, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 28, 2019:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance at June 29, 2019	$	(178.7)	$	11.5	$	(333.5)	$	(500.7)
Other comprehensive loss before reclassifications	(47.3)		—		—		(47.3)
Amounts reclassified from Accumulated OCI	—		(0.4)		4.5		4.1
Net other comprehensive income (loss)	(47.3)		(0.4)		4.5		(43.2)
Balance as of September 28, 2019	$	(226.0)	$	11.1	$	(329.0)	$	(543.9)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 28, 2019:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 29, 2018	$	(177.9)	$	12.2	$	(296.5)	$	(462.2)
Impact of the Tax Act on Accumulated Other Comprehensive Income (ASU No. 2018-02)	—		—		(45.9)		(45.9)
Balance at December 30, 2018	(177.9)		12.2		(342.4)		(508.1)
Other comprehensive loss before reclassifications	(48.1)		—		—		(48.1)
Amounts reclassified from Accumulated OCI	—		(1.1)		13.4		12.3
Net other comprehensive income (loss)	(48.1)		(1.1)		13.4		(35.8)
Balance as of September 28, 2019	$	(226.0)	$	11.1	$	(329.0)	$	(543.9)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 29, 2018:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance at June 30, 2018	$	(141.0)	$	12.9	$	(249.2)	$	(377.3)
Other comprehensive income before reclassifications	2.0		—		—		2.0
Amounts reclassified from Accumulated OCI	—		(0.4)		6.0		5.6
Net other comprehensive income (loss)	2.0		(0.4)		6.0		7.6
Balance as of September 29, 2018	$	(139.0)	$	12.5	$	(243.2)	$	(369.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 29, 2018:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 30, 2017	$	(82.5)	$	14.5	$	(261.0)	$	(329.0)
Other comprehensive loss before reclassifications	(56.5)		(0.8)		—		(57.3)
Amounts reclassified from Accumulated OCI	—		(1.2)		17.8		16.6
Net other comprehensive income (loss)	(56.5)		(2.0)		17.8		(40.7)
Balance as of September 29, 2018	$	(139.0)	$	12.5	$	(243.2)	$	(369.7)

The reclassifications out of Accumulated OCI for the three and nine month periods ended September 28, 2019, and September 29, 2018, are as follows: 

	Amount Reclassified from Accumulated OCI
	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018		Statement of Earnings Presentation
(Amounts in millions)
Gains on cash flow hedges:
Treasury locks	$	0.4	$	0.4	$	1.1	$	1.2	Interest expense
Income tax expense	—		—		—		—		Income tax expense
Net of tax	0.4		0.4		1.1		1.2
Amortization of net unrecognized losses and prior service credits	(5.9)		(7.8)		(17.6)		(23.4)		See footnote below*
Income tax benefit	1.4		1.8		4.2		5.6		Income tax expense
Net of tax	(4.5)		(6.0)		(13.4)		(17.8)
Total reclassifications for the period, net of tax	$	(4.1)	$	(5.6)	$	(12.3)	$	(16.6)

* These Accumulated OCI components are included in the computation of net periodic pension and postretirement health care costs; see Note 10 and Note 11 for further information.

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Receivables - (Tables)

9 Months Ended

Sep. 28, 2019

Receivables [Abstract]

Components of Trade and Other Accounts Receivable

The components of Snap-on’s trade and other accounts receivable as of September 28, 2019, and December 29, 2018, are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Trade and other accounts receivable	$	705.0	$	710.1
Allowances for doubtful accounts	(20.2)		(17.5)
Total trade and other accounts receivable – net	$	684.8	$	692.6

Components of Current Finance and Contract Receivables

The components of Snap-on’s current finance and contract receivables as of September 28, 2019, and December 29, 2018, are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	553.3	$	538.1
Contract receivables	104.3		99.5
Total	657.6		637.6
Allowances for doubtful accounts:
Finance receivables	(19.8)		(19.6)
Contract receivables	(1.6)		(1.2)
Total	(21.4)		(20.8)
Total current finance and contract receivables – net	$	636.2	$	616.8
Finance receivables – net	$	533.5	$	518.5
Contract receivables – net	102.7		98.3
Total current finance and contract receivables – net	$	636.2	$	616.8

Components of Finance and Contract Receivables Beyond One Year

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of September 28, 2019, and December 29, 2018, are as follows: 

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	1,126.0	$	1,116.2
Contract receivables	353.0		348.0
Total	1,479.0		1,464.2
Allowances for doubtful accounts:
Finance receivables	(41.3)		(41.8)
Contract receivables	(4.4)		(3.1)
Total	(45.7)		(44.9)
Total long-term finance and contract receivables – net	$	1,433.3	$	1,419.3
Finance receivables – net	$	1,084.7	$	1,074.4
Contract receivables – net	348.6		344.9
Total long-term finance and contract receivables – net	$	1,433.3	$	1,419.3

Aging of Finance and Contract Receivables

The aging of finance and contract receivables as of September 28, 2019, and December 29, 2018, is as follows:

(Amounts in millions)	30-59 Days Past Due		60-90 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Total Not Past Due		Total		Greater Than 90 Days Past Due and Accruing
September 28, 2019:
Finance receivables	$	18.0	$	11.2	$	19.9	$	49.1	$	1,630.2	$	1,679.3	$	15.7
Contract receivables	1.5		1.0		1.6		4.1		453.2		457.3		0.2
December 29, 2018:
Finance receivables	$	19.4	$	12.1	$	20.3	$	51.8	$	1,602.5	$	1,654.3	$	15.9
Contract receivables	1.7		1.2		5.2		8.1		439.4		447.5		0.2

Schedule of Performing and Nonperforming Finance and Contract Receivables

The amount of performing and nonperforming finance and contract receivables based on payment activity as of September 28, 2019, and December 29, 2018, is as follows: 

	September 28, 2019				December 29, 2018
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Performing	$	1,651.1	$	454.4	$	1,626.4	$	441.5
Nonperforming	28.2		2.9		27.9		6.0
Total	$	1,679.3	$	457.3	$	1,654.3	$	447.5

Schedule of Finance and Contract Receivables on Nonaccrual Status

The amount of finance and contract receivables on nonaccrual status as of September 28, 2019, and December 29, 2018, is as follows: 

(Amounts in millions)	September 28, 2019		December 29, 2018
Finance receivables	$	12.5	$	12.0
Contract receivables	2.7		5.8

Rollforward of Allowances for Doubtful Accounts for Finance and Contract Receivables

The following is a rollforward of the allowances for doubtful accounts for finance and contract receivables for the three and nine months ended September 28, 2019, and September 29, 2018:

	Three Months Ended September 28, 2019				Nine Months Ended September 28, 2019
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	60.9	$	5.0	$	61.4	$	4.3
Provision	11.4		1.9		35.8		4.0
Charge-offs	(13.0)		(1.0)		(41.9)		(2.7)
Recoveries	1.9		—		5.9		0.3
Currency translation	(0.1)		0.1		(0.1)		0.1
End of period	$	61.1	$	6.0	$	61.1	$	6.0

	Three Months Ended September 29, 2018				Nine Months Ended September 29, 2018
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	59.0	$	4.8	$	56.5	$	4.6
Provision	12.1		0.4		41.5		1.5
Charge-offs	(13.3)		(0.7)		(43.7)		(1.8)
Recoveries	1.7		0.1		5.3		0.3
Currency translation	0.1		—		—		—
End of period	$	59.6	$	4.6	$	59.6	$	4.6

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Receivables - Narrative (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 28, 2019	Dec. 29, 2018
Receivables [Abstract]
Minimum payment term for trade and other accounts receivable (in days)	30 days
Maximum payment term for trade and other accounts receivable (in days)	120 days
Average payment term for finance receivables (in years)	4 years
Maximum payment term for contract receivables (in years)	10 years
Minimum period past due to consider receivable balances as delinquent (in days)	30 days
Minimum period past due to consider non-accrual finance receivables nonperforming (in days)	90 days
Minimum period past due to declare receivable as non-accrual status (in days)	90 days
Impaired finance receivables	$ 28.2	$ 27.9
Impaired contract receivables	$ 2.9	$ 6.0

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Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 896.2	$ 892.7	$ 2,758.4	$ 2,772.3
Net sales	985.9	980.1	3,028.6	3,035.2
Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	(141.4)	(136.3)	(418.7)	(412.3)
Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	1,043.2	1,034.4	3,193.5	3,200.5
Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	335.3	330.2	992.8	999.6
Commercial & Industrial Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	335.3	330.2	992.8	999.6
Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	385.2	389.8	1,201.2	1,206.4
Snap-on Tools Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	385.2	389.8	1,201.2	1,206.4
Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	322.7	314.4	999.5	994.5
Repair Systems & Information Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	322.7	314.4	999.5	994.5
Financial Services
Disaggregation of Revenue [Line Items]
Net sales	84.1	82.0	253.8	247.0
Other revenues
Disaggregation of Revenue [Line Items]
Net sales	5.6	5.4	16.4	15.9
Excluding Financial Services
Disaggregation of Revenue [Line Items]
Net sales	901.8	898.1	2,774.8	2,788.2
Excluding Financial Services | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	665.6	663.8	2,070.1	2,076.1
Excluding Financial Services | All other professionals
Disaggregation of Revenue [Line Items]
Net sales	236.2	234.3	704.7	712.1
Excluding Financial Services | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	(141.4)	(136.3)	(418.7)	(412.3)
Excluding Financial Services | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	901.8	898.1	2,774.8	2,788.2
Excluding Financial Services | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	257.0	255.7	769.5	781.6
Excluding Financial Services | Commercial & Industrial Group | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	20.8	21.4	64.8	69.5
Excluding Financial Services | Commercial & Industrial Group | All other professionals
Disaggregation of Revenue [Line Items]
Net sales	236.2	234.3	704.7	712.1
Excluding Financial Services | Commercial & Industrial Group | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	78.3	74.5	223.3	218.0
Excluding Financial Services | Commercial & Industrial Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	335.3	330.2	992.8	999.6
Excluding Financial Services | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	385.2	389.8	1,201.2	1,206.4
Excluding Financial Services | Snap-on Tools Group | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	385.2	389.8	1,201.2	1,206.4
Excluding Financial Services | Snap-on Tools Group | All other professionals
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | Snap-on Tools Group | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | Snap-on Tools Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	385.2	389.8	1,201.2	1,206.4
Excluding Financial Services | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	259.6	252.6	804.1	800.2
Excluding Financial Services | Repair Systems & Information Group | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	259.6	252.6	804.1	800.2
Excluding Financial Services | Repair Systems & Information Group | All other professionals
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | Repair Systems & Information Group | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	63.1	61.8	195.4	194.3
Excluding Financial Services | Repair Systems & Information Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	322.7	314.4	999.5	994.5
Excluding Financial Services | Financial Services
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | Financial Services | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | Financial Services | All other professionals
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | Financial Services | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | Financial Services | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | North America
Disaggregation of Revenue [Line Items]
Net sales	651.2	632.9	1,970.8	1,918.5
Excluding Financial Services | North America | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	125.3	119.9	355.8	345.7
Excluding Financial Services | North America | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	337.6	335.4	1,039.3	1,020.5
Excluding Financial Services | North America | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	188.3	177.6	575.7	552.3
Excluding Financial Services | North America | Financial Services
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | Europe
Disaggregation of Revenue [Line Items]
Net sales	148.0	160.0	492.9	539.9
Excluding Financial Services | Europe | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	65.1	70.4	214.8	229.9
Excluding Financial Services | Europe | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	28.3	32.0	101.7	117.2
Excluding Financial Services | Europe | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	54.6	57.6	176.4	192.8
Excluding Financial Services | Europe | Financial Services
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Excluding Financial Services | All other
Disaggregation of Revenue [Line Items]
Net sales	102.6	105.2	311.1	329.8
Excluding Financial Services | All other | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	66.6	65.4	198.9	206.0
Excluding Financial Services | All other | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	19.3	22.4	60.2	68.7
Excluding Financial Services | All other | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	16.7	17.4	52.0	55.1
Excluding Financial Services | All other | Financial Services
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Financial Service
Disaggregation of Revenue [Line Items]
Net sales	84.1	82.0	253.8	247.0
Financial Service | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Financial Service | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Financial Service | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Financial Service | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	0.0	0.0	0.0	0.0
Financial Service | Financial Services
Disaggregation of Revenue [Line Items]
Net sales	$ 84.1	$ 82.0	$ 253.8	$ 247.0

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Other Income (Expense) - Net - (Tables)

9 Months Ended

Sep. 28, 2019

Other Income and Expenses [Abstract]

Computation of Other Income (Expense) - Net

“Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings consists of the following:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Interest income	$	0.4	$	0.1	$	1.1	$	0.4
Net foreign exchange loss	(0.2)		(1.8)		(2.7)		(4.2)
Net periodic pension and postretirement benefits – non-service	2.5		1.3		7.5		2.7
Settlement of treasury lock	—		—		—		13.3
Loss on early extinguishment of debt	—		—		—		(7.8)
Other	0.1		(0.6)		0.5		(3.2)
Total other income (expense) – net	$	2.8	$	(1.0)	$	6.4	$	1.2

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Short-term and Long-term Debt - Summary (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Schedule Of Debt Instruments [Line Items]
Other debt	$ 229.8	$ 182.3
Long-term debt including current maturities	1,179.8	1,132.3
Less: notes payable
Commercial paper borrowings	(218.8)	(177.1)
Other notes	(13.5)	(9.2)
Notes payable and current maturities of long-term debt	(232.3)	(186.3)
Total long-term debt	$ 947.5	946.0
6.125% unsecured notes due 2021
Schedule Of Debt Instruments [Line Items]
Unsecured notes, interest rate	6.125%
Noncurrent unsecured notes	$ 250.0	250.0
3.25% unsecured notes due 2027
Schedule Of Debt Instruments [Line Items]
Unsecured notes, interest rate	3.25%
Noncurrent unsecured notes	$ 300.0	300.0
4.10% unsecured notes due 2048
Schedule Of Debt Instruments [Line Items]
Unsecured notes, interest rate	4.10%
Noncurrent unsecured notes	$ 400.0	$ 400.0

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Leases - Capital Lease Under Topic 840 Balance Sheet Location (Details) $ in Millions	Dec. 29, 2018 USD ($)
Leases [Abstract]
Other accrued liabilities	$ 3.0
Other long-term liabilities	12.1
Total present value of minimum capital lease payments	$ 15.1

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Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated OCI (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Gains on cash flow hedges:
Interest expense	$ (12.0)	$ (12.4)	$ (36.9)	$ (38.0)
Amortization of net unrecognized losses and prior service credits	2.8	(1.0)	6.4	1.2
Income tax expense	(50.4)	(51.5)	(162.9)	(164.9)
Net earnings	169.2	167.4	536.2	516.9
Reclassification out of AOCI
Gains on cash flow hedges:
Net earnings	(4.1)	(5.6)	(12.3)	(16.6)
Cash Flow Hedges | Reclassification out of AOCI
Gains on cash flow hedges:
Interest expense	0.4	0.4	1.1	1.2
Income tax expense	0.0	0.0	0.0	0.0
Net earnings	0.4	0.4	1.1	1.2
Defined Benefit Pension and Postretirement Plans | Reclassification out of AOCI
Gains on cash flow hedges:
Amortization of net unrecognized losses and prior service credits	(5.9)	(7.8)	(17.6)	(23.4)
Income tax expense	1.4	1.8	4.2	5.6
Net earnings	$ (4.5)	$ (6.0)	$ (13.4)	$ (17.8)

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Pension Plans - Net Periodic Pension Cost (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 5.9	$ 6.3	$ 17.7	$ 18.9
Interest cost	14.1	13.2	42.3	39.6
Expected return on plan assets	(22.8)	(22.6)	(68.3)	(66.5)
Amortization of unrecognized loss	6.3	8.2	18.8	24.6
Amortization of prior service credit	(0.2)	(0.3)	(0.6)	(0.9)
Net periodic cost	$ 3.3	$ 4.8	$ 9.9	$ 15.7

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Receivables - Components of Finance and Contract Receivables Beyond One Year (Detail) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Receivables [Abstract]
Finance receivables	$ 1,126.0	$ 1,116.2
Contract receivables	353.0	348.0
Total	1,479.0	1,464.2
Allowances for doubtful accounts:
Finance receivables	(41.3)	(41.8)
Contract receivables	(4.4)	(3.1)
Total	(45.7)	(44.9)
Total long-term finance and contract receivables – net	1,433.3	1,419.3
Finance receivables – net	1,084.7	1,074.4
Contract receivables – net	$ 348.6	$ 344.9

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Receivables - Rollforward of Allowances for Doubtful Accounts for Finance and Contract Receivables (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Finance receivables, allowance for doubtful accounts, beginning of year	$ 60.9	$ 59.0	$ 61.4	$ 56.5
Finance receivables, provision	11.4	12.1	35.8	41.5
Finance receivables, charge-offs	(13.0)	(13.3)	(41.9)	(43.7)
Finance receivables, recoveries	1.9	1.7	5.9	5.3
Finance receivables, currency translation	(0.1)	0.1	(0.1)	0.0
Finance receivables, allowance for doubtful accounts, end of period	61.1	59.6	61.1	59.6
Contract receivables, allowance for doubtful accounts, beginning of year	5.0	4.8	4.3	4.6
Contract receivables, provision	1.9	0.4	4.0	1.5
Contract receivables, charge-offs	(1.0)	(0.7)	(2.7)	(1.8)
Contract receivables, recoveries	0.0	0.1	0.3	0.3
Contract receivables, currency translation	0.1	0.0	0.1	0.0
Contract receivables, allowance for doubtful accounts, end of period	$ 6.0	$ 4.6	$ 6.0	$ 4.6

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Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018	Dec. 29, 2018
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	$ 920,100,000		$ 920,100,000		$ 902,200,000
Gross Carrying Value	402,500,000		402,500,000		393,500,000
Accumulated impairment losses	0		$ 0
Weighted-average amortization period (in years)			12 years
Aggregate amortization expense	5,500,000	$ 6,200,000	$ 16,300,000	$ 19,200,000
Estimated annual amortization expense for fiscal period 2019	21,600,000		21,600,000
Estimated annual amortization expense for fiscal period 2020	19,200,000		19,200,000
Estimated annual amortization expense for fiscal period 2021	17,100,000		17,100,000
Estimated annual amortization expense for fiscal period 2022	14,000,000.0		14,000,000.0
Estimated annual amortization expense for fiscal period 2023	12,400,000		12,400,000
Estimated annual amortization expense for fiscal period 2024	10,200,000		10,200,000
Cognitran Limited
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	27,700,000		27,700,000
Power Hawk Technologies Inc
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	6,400,000		6,400,000
TMB GeoMarketing Limited
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	1,300,000		1,300,000
Customer relationships
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Value	171,300,000		$ 171,300,000		$ 172,200,000
Weighted-average amortization period (in years)			15 years
Customer relationship contractual term, minimum (in years)			3 years
Customer relationship contractual term, maximum (in years)			5 years
Customer relationships | Power Hawk Technologies Inc
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 900,000		$ 900,000

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Stock-based Compensation and Other Stock Plans - Stock Appreciation Rights Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Cash-Settled Stock Appreciation Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average contractual term (in years)			10 years
Weighted-average grant date fair value granted (in dollars per share)			$ 22.90
Intrinsic value of stock exercised	$ 0	$ 1,100,000	$ 500,000	$ 3,200,000
Fair value of stock vested			100,000	$ 100,000
Unrecognized compensation cost related to non-vested award	100,000		$ 100,000
Cost expected to be recognized over weighted-average period, in years			1 year 8 months 12 days
Stock-Settled SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value granted (in dollars per share)			$ 26.45	$ 24.71
Intrinsic value of stock exercised	100,000	$ 1,200,000	$ 100,000	$ 1,800,000
Fair value of stock vested			2,100,000	$ 2,200,000
Unrecognized compensation cost related to non-vested award	$ 3,200,000		$ 3,200,000
Cost expected to be recognized over weighted-average period, in years			1 year 8 months 12 days

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Leases - Effects of New Accounting Pronouncement (Details) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 30, 2018	Dec. 29, 2018
ASSETS
Finance lease liabilities	$ 8.1	$ 7.8	$ 7.8
Operating lease right-of-use assets	52.4	60.5
Current liabilities:
Other accrued liabilities	2.9	1.2	1.2
Other accrued liabilities	19.3	20.2
Non-current:
Other long-term liabilities	10.8	6.6	$ 6.6
Operating lease liabilities	$ 34.3	40.4
Topic 842 Adjustments
ASSETS
Finance lease liabilities		0.0
Operating lease right-of-use assets		60.5
Current liabilities:
Other accrued liabilities		0.0
Other accrued liabilities		20.2
Non-current:
Other long-term liabilities		0.0
Operating lease liabilities		$ 40.4

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Earnings Per Share [Abstract]
Weighted-average common shares outstanding (in shares)	55.0	56.3	55.2	56.4
Effect of dilutive securities (in shares)	0.7	1.0	0.8	1.1
Diluted (in shares)	55.7	57.3	56.0	57.5

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Stock-based Compensation and Other Stock Plans - Stock Options, Summary of Weighted Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model (Details) - Stock Option	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 6 months 10 days	5 years 4 months 6 days
Expected volatility factor	21.30%	20.08%
Expected dividend yield	1.79%	1.68%
Risk-free interest rate	2.54%	2.71%

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Inventories

9 Months Ended

Sep. 28, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories by major classification are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Finished goods	$	650.8	$	577.0
Work in progress	55.2		51.7
Raw materials	130.0		123.5
Total FIFO value	836.0		752.2
Excess of current cost over LIFO cost	(82.5)		(78.4)
Total inventories – net	$	753.5	$	673.8

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 58% and 61% of total inventories as of September 28, 2019, and December 29, 2018, respectively. The company accounts for its non-U.S. inventory on the FIFO method. As of September 28, 2019, approximately 32% of the company’s U.S. inventory was accounted for using the FIFO method and 68% was accounted for using the last-in, first-out (“LIFO”) method. There were no LIFO inventory liquidations in the three and nine months ended September 28, 2019, or September 29, 2018.

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Financial Instruments

9 Months Ended

Sep. 28, 2019

Investments, All Other Investments [Abstract]

Financial Instruments

Financial Instruments

Derivatives: All derivative instruments are reported in the Condensed Consolidated Financial Statements at fair value. Changes in the fair value of derivatives are recorded each period in earnings or on the accompanying Condensed Consolidated Balance Sheets, depending on whether the derivative is designated as part of a hedged transaction. Gains or losses on derivative instruments recorded in earnings are presented in the same Condensed Consolidated Statement of Earnings line that is used to present the earnings effect of the hedged item. Gains or losses on derivative instruments in accumulated other comprehensive income (loss) (“Accumulated OCI”) are reclassified to earnings in the period in which earnings are affected by the underlying hedged item.

The criteria used to determine if hedge accounting treatment is appropriate are: (i) the designation of the hedge to an underlying exposure; (ii) whether or not overall risk is being reduced; and (iii) if there is a correlation between the value of the derivative instrument and the underlying hedged item. Once a derivative contract is entered into, Snap-on designates the derivative as a fair value hedge, a cash flow hedge, a hedge of a net investment in a foreign operation, or a natural hedging instrument whose change in fair value is recognized as an economic hedge against changes in the value of the hedged item. Snap-on does not use derivative instruments for speculative or trading purposes.

The company is exposed to global market risks, including the effects of changes in foreign currency exchange rates, interest rates, and the company’s stock price, and therefore uses derivatives to manage financial exposures that occur in the normal course of business. The primary risks managed by using derivative instruments are foreign currency risk, interest rate risk and stock-based deferred compensation risk.

Foreign Currency Risk Management: Snap-on has significant international operations and is subject to certain risks inherent with foreign operations that include currency fluctuations. Foreign currency exchange risk exists to the extent that Snap-on has payment obligations or receipts denominated in currencies other than the functional currency, including intercompany loans denominated in foreign currencies. To manage these exposures, Snap-on identifies naturally offsetting positions and then purchases hedging instruments to protect the residual net exposures. Snap-on manages most of these exposures on a consolidated basis, which allows for netting of certain exposures to take advantage of natural offsets. Foreign currency forward contracts (“foreign currency forwards”) are used to hedge the net exposures. Gains or losses on net foreign currency hedges are intended to offset losses or gains on the underlying net exposures in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. Snap-on’s foreign currency forwards are typically not designated as hedges. The fair value changes of these contracts are reported in earnings as foreign exchange gain or loss, which is included in “Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings.

Interest Rate Risk Management: Snap-on aims to control funding costs by managing the exposure created by the differing maturities and interest rate structures of Snap-on’s borrowings through the use of interest rate swap agreements (“interest rate swaps”) and treasury lock agreements (“treasury locks”).

Interest Rate Swaps: Snap-on enters into interest rate swaps to manage risks associated with changing interest rates related to the company’s fixed rate borrowings. Interest rate swaps are accounted for as fair value hedges. The differentials paid or received on interest rate swaps are recognized as adjustments to “Interest expense” on the accompanying Condensed Consolidated Statements of Earnings. The change in fair value of the designated and qualifying derivative is recorded in “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets. The notional amount of interest rate swaps outstanding and designated as fair value hedges was $100 million as of both September 28, 2019, and December 29, 2018.

Treasury locks: Snap-on uses treasury locks to manage the potential change in interest rates in anticipation of the issuance of fixed rate debt. Treasury locks are accounted for as cash flow hedges. The differentials to be paid or received on treasury locks related to the anticipated issuance of fixed rate debt are initially recorded in Accumulated OCI for derivative instruments that are designated and qualify as cash flow hedges. Upon the issuance of debt, the related amount in Accumulated OCI is released over the term of the debt and recognized as an adjustment to interest expense on the Condensed Consolidated Statements of Earnings.

Snap-on entered into a $300 million treasury lock in the fourth quarter of 2017 to manage changes in interest rates in anticipation of the issuance of fixed rate debt in the first quarter of 2018. In the first quarter of 2018, Snap-on settled the outstanding $300 million treasury lock after it was deemed to be an ineffective hedge related to the 2048 Notes, which were issued in February 2018. The $13.3 million gain on the settlement of the treasury lock was recorded in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. There were no treasury locks outstanding as of both September 28, 2019, and December 29, 2018. See Note 16 for additional information on Other income (expense) - net.

Stock-based Deferred Compensation Risk Management: Snap-on aims to manage market risk associated with the stock-based portion of its deferred compensation plans through the use of prepaid equity forward agreements (“equity forwards”). Equity forwards are used to aid in offsetting the potential mark-to-market effect on stock-based deferred compensation from changes in Snap-on’s stock price. Since stock-based deferred compensation liabilities increase as the company’s stock price rises and decrease as the company’s stock price declines, the equity forwards are intended to mitigate the potential impact on deferred compensation expense that may result from such mark-to-market changes. As of September 28, 2019, Snap-on had equity forwards in place intended to manage market risk with respect to 108,000 shares of Snap-on common stock associated with its deferred compensation plans.

Counterparty Risk: Snap-on is exposed to credit losses in the event of non-performance by the counterparties to its various financial agreements, including its foreign currency forward contracts, interest rate swap agreements, treasury lock agreements and prepaid equity forward agreements. Snap-on does not obtain collateral or other security to support financial instruments subject to credit risk, but monitors the credit standing of the counterparties and generally enters into agreements with financial institution counterparties with a credit rating of A- or better. Snap-on does not anticipate non-performance by its counterparties, but cannot provide assurances.

Fair Value of Financial Instruments: The fair values of financial instruments that do not approximate the carrying values in the financial statements are as follows:

	September 28, 2019				December 29, 2018
(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Finance receivables – net	$	1,618.2	$	1,912.4	$	1,592.9	$	1,845.4
Contract receivables – net	451.3		499.1		443.2		481.2
Long-term debt and notes payable	1,179.8		1,277.5		1,132.3		1,136.0

The following methods and assumptions were used in estimating the fair value of financial instruments:

•Finance and contract receivables include both short-term and long-term receivables. The fair value estimates of finance and contract receivables are derived utilizing discounted cash flow analyses performed on groupings of receivables that are similar in terms of loan type and characteristics. The cash flow analyses consider recent prepayment trends where applicable. The cash flows are discounted over the average life of the receivables using a current market discount rate of a similar term adjusted for credit quality. Significant inputs to the fair value measurements of the receivables are unobservable and, as such, are classified as Level 3.

•Fair value of long-term debt was estimated, using Level 2 fair value measurements, based on quoted market values of Snap-on’s publicly traded senior debt. The carrying value of long-term debt includes adjustments related to fair value hedges. The fair value of notes payable approximates such instruments’ carrying value due to their short-term nature.

•The fair value of all other financial instruments, including trade and other accounts receivable, accounts payable and other financial instruments, approximates such instruments’ carrying value due to their short-term nature.

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Commitments and Contingencies - (Tables)

9 Months Ended

Sep. 28, 2019

Commitments and Contingencies Disclosure [Abstract]

Summary of Product Warranty Accrual Activity

Snap-on’s product warranty accrual activity for the three and nine months ended September 28, 2019, and September 29, 2018, is as follows:

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Warranty reserve:
Beginning of period	$	17.8	$	17.5	$	17.1	$	17.2
Additions	3.8		3.0		12.5		10.9
Usage	(4.6)		(3.3)		(12.6)		(10.9)
End of period	$	17.0	$	17.2	$	17.0	$	17.2

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Comprehensive income:
Net earnings		$ 169.2	$ 167.4	$ 536.2	$ 516.9
Other comprehensive income (loss):
Foreign currency translation*	[1]	(47.3)	2.0	(48.1)	(56.5)
Unrealized cash flow hedges, net of tax:
Other comprehensive loss before reclassifications		0.0		0.0
Other comprehensive loss before reclassifications			0.0		(0.8)
Reclassification of cash flow hedges to net earnings		(0.4)		(1.1)
Reclassification of cash flow hedges to net earnings			(0.4)		(1.2)
Defined benefit pension and postretirement plans:
Amortization of net unrecognized losses and prior service credits included in net periodic benefit cost		5.9	7.8	17.6	23.4
Income tax benefit		(1.4)	(1.8)	(4.2)	(5.6)
Net of tax		4.5	6.0	13.4	17.8
Total comprehensive income		126.0	175.0	500.4	476.2
Comprehensive income attributable to noncontrolling interests		(4.6)	(4.2)	(13.3)	(12.0)
Comprehensive income attributable to Snap-on Incorporated		$ 121.4	$ 170.8	$ 487.1	$ 464.2

[1] There is no reclassification adjustment as there was no sale or liquidation of any foreign entity during any period presented.

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Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends per share (in dollars per share)	$ 0.95	$ 0.82	$ 2.85	$ 2.46
Share repurchases (in shares)	400,000	493,000	1,060,000	1,139,000

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Pension Plans - (Tables)

9 Months Ended

Sep. 28, 2019

Retirement Benefits [Abstract]

Net Periodic Pension Cost

Snap-on’s net periodic pension cost included the following components: 

	Three Months Ended				Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Service cost	$	5.9	$	6.3	$	17.7	$	18.9
Interest cost	14.1		13.2		42.3		39.6
Expected return on plan assets	(22.8)		(22.6)		(68.3)		(66.5)
Amortization of unrecognized loss	6.3		8.2		18.8		24.6
Amortization of prior service credit	(0.2)		(0.3)		(0.6)		(0.9)
Net periodic pension cost	$	3.3	$	4.8	$	9.9	$	15.7

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Inventories - (Tables)

9 Months Ended

Sep. 28, 2019

Inventory Disclosure [Abstract]

Inventories by Major Classification

Inventories by major classification are as follows:

(Amounts in millions)	September 28, 2019		December 29, 2018
Finished goods	$	650.8	$	577.0
Work in progress	55.2		51.7
Raw materials	130.0		123.5
Total FIFO value	836.0		752.2
Excess of current cost over LIFO cost	(82.5)		(78.4)
Total inventories – net	$	753.5	$	673.8