QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of incorporation) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Class | Outstanding at October 16, 2020 | |||||||
Page | ||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | ( | ( | ( | ( | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | |||||||||||||||||||
Operating earnings before financial services | |||||||||||||||||||||||
Financial services revenue | |||||||||||||||||||||||
Financial services expenses | ( | ( | ( | ( | |||||||||||||||||||
Operating earnings from financial services | |||||||||||||||||||||||
Operating earnings | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense) – net | |||||||||||||||||||||||
Earnings before income taxes and equity earnings | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Earnings before equity earnings | |||||||||||||||||||||||
Equity earnings (loss), net of tax | ( | ||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Net earnings attributable to Snap-on Incorporated | $ | $ | $ | $ | |||||||||||||||||||
Net earnings per share attributable to Snap-on Incorporated: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | |||||||||||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Dividends declared per common share | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | ||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation* | ( | ( | |||||||||||||||||||||
Unrealized cash flow hedges, net of tax: | |||||||||||||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||||||||
Reclassification of cash flow hedges to net earnings | ( | ( | ( | ( | |||||||||||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||||||||||||
Amortization of net unrecognized losses and prior service credits included in net periodic benefit cost | |||||||||||||||||||||||
Income tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Net of tax | |||||||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income attributable to Snap-on Incorporated | $ | $ | $ | $ |
September 26, 2020 | December 28, 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade and other accounts receivable – net | |||||||||||
Finance receivables – net | |||||||||||
Contract receivables – net | |||||||||||
Inventories – net | |||||||||||
Prepaid expenses and other assets | |||||||||||
Total current assets | |||||||||||
Property and equipment: | |||||||||||
Land | |||||||||||
Buildings and improvements | |||||||||||
Machinery, equipment and computer software | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Property and equipment – net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deferred income tax assets | |||||||||||
Long-term finance receivables – net | |||||||||||
Long-term contract receivables – net | |||||||||||
Goodwill | |||||||||||
Other intangibles – net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ |
September 26, 2020 | December 28, 2019 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Notes payable and current maturities of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued benefits | |||||||||||
Accrued compensation | |||||||||||
Franchisee deposits | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred income tax liabilities | |||||||||||
Retiree health care benefits | |||||||||||
Pension liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 15) | |||||||||||
Equity | |||||||||||
Shareholders’ equity attributable to Snap-on Incorporated: | |||||||||||
Preferred stock (authorized | |||||||||||
Common stock (authorized | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock at cost ( | ( | ( | |||||||||
Total shareholders’ equity attributable to Snap-on Incorporated | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
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 27, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Net Earnings for the three months ended September 26, 2020 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Cash dividends – $ | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share repurchases – | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Other | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at September 26, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
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 December 28, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Impact of adopting the Credit Loss Standard (ASU No. 2016-13) | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Balance at December 29, 2019 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net Earnings for the nine months ended September 26, 2020 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Cash dividends – $ | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share repurchases – | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Other | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at September 26, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
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 | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Net Earnings for the three months ended September 28, 2019 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Cash dividends – $ | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share repurchases – | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Other | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at Balance at 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 | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Impact of U.S. tax reform on Accumulated Other Comprehensive Income (Loss) ( ) | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance at December 30, 2018 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net Earnings for the nine months ended September 28, 2019 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Cash dividends – $ | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share repurchases – | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Other | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at Balance at September 28, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Nine Months Ended | |||||||||||
September 26, 2020 | September 28, 2019 | ||||||||||
Operating activities: | |||||||||||
Net earnings | $ | $ | |||||||||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of other intangibles | |||||||||||
Provision for losses on finance receivables | |||||||||||
Provision for losses on non-finance receivables | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred income tax provision (benefit) | ( | ||||||||||
Loss on sales of assets | |||||||||||
Settlement of treasury lock | |||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Trade and other accounts receivable | ( | ||||||||||
Contract receivables | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Prepaid and other assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Accruals and other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Investing activities: | |||||||||||
Additions to finance receivables | ( | ( | |||||||||
Collections of finance receivables | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisitions of businesses, net of cash acquired | ( | ( | |||||||||
Disposals of property and equipment | |||||||||||
Other | ( | ( | |||||||||
Net cash used by investing activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Proceeds from issuance of long-term debt | |||||||||||
Net increase (decrease) in other short-term borrowings | ( | ||||||||||
Cash dividends paid | ( | ( | |||||||||
Purchases of treasury stock | ( | ( | |||||||||
Proceeds from stock purchase and option plans | |||||||||||
Other | ( | ( | |||||||||
Net cash provided (used) by financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ( | |||||||||
Increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of year | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental cash flow disclosures: | |||||||||||
Cash paid for interest | $ | ( | $ | ( | |||||||
Net cash paid for income taxes | ( | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||||||||
Revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Total net sales | |||||||||||||||||||||||
Financial services revenue | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||||||||||
For the Three Months Ended September 26, 2020 | ||||||||||||||||||||||||||||||||||||||
Commercial | Snap-on | Repair Systems | ||||||||||||||||||||||||||||||||||||
& Industrial | Tools | & Information | Financial | Snap-on | ||||||||||||||||||||||||||||||||||
(Amounts in millions) | Group | Group | Group | Services | Eliminations | Incorporated | ||||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||||||||
North America* | $ | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||
Europe | — | |||||||||||||||||||||||||||||||||||||
All other | — | |||||||||||||||||||||||||||||||||||||
External net sales | — | |||||||||||||||||||||||||||||||||||||
Intersegment net sales | ( | — | ||||||||||||||||||||||||||||||||||||
Total net sales | ( | |||||||||||||||||||||||||||||||||||||
Financial services revenue | — | |||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
For the Nine Months Ended September 26, 2020 | ||||||||||||||||||||||||||||||||||||||
Commercial | Snap-on | Repair Systems | ||||||||||||||||||||||||||||||||||||
& Industrial | Tools | & Information | Financial | Snap-on | ||||||||||||||||||||||||||||||||||
(Amounts in millions) | Group | Group | Group | Services | Eliminations | Incorporated | ||||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||||||||
North America* | $ | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||
Europe | — | |||||||||||||||||||||||||||||||||||||
All other | — | |||||||||||||||||||||||||||||||||||||
External net sales | — | |||||||||||||||||||||||||||||||||||||
Intersegment net sales | ( | — | ||||||||||||||||||||||||||||||||||||
Total net sales | ( | |||||||||||||||||||||||||||||||||||||
Financial services revenue | — | |||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
* North America is comprised of the United States, Canada and Mexico. | ||||||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||
North America* | $ | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||
Europe | — | |||||||||||||||||||||||||||||||||||||
All other | — | |||||||||||||||||||||||||||||||||||||
External net sales | — | |||||||||||||||||||||||||||||||||||||
Intersegment net sales | ( | — | ||||||||||||||||||||||||||||||||||||
Total net sales | ( | |||||||||||||||||||||||||||||||||||||
Financial services revenue | — | |||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||
North America* | $ | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||
Europe | — | |||||||||||||||||||||||||||||||||||||
All other | — | |||||||||||||||||||||||||||||||||||||
External net sales | — | |||||||||||||||||||||||||||||||||||||
Intersegment net sales | ( | — | ||||||||||||||||||||||||||||||||||||
Total net sales | ( | |||||||||||||||||||||||||||||||||||||
Financial services revenue | — | |||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
* North America is comprised of the United States, Canada and Mexico. |
For the Three Months Ended September 26, 2020 | ||||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||
All other professionals | — | |||||||||||||||||||||||||||||||||||||
External net sales | — | |||||||||||||||||||||||||||||||||||||
Intersegment net sales | ( | — | ||||||||||||||||||||||||||||||||||||
Total net sales | ( | |||||||||||||||||||||||||||||||||||||
Financial services revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
For the Nine Months Ended September 26, 2020 | ||||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||
All other professionals | — | |||||||||||||||||||||||||||||||||||||
External net sales | — | |||||||||||||||||||||||||||||||||||||
Intersegment net sales | ( | — | ||||||||||||||||||||||||||||||||||||
Total net sales | ( | |||||||||||||||||||||||||||||||||||||
Financial services revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||
All other professionals | — | |||||||||||||||||||||||||||||||||||||
External net sales | — | |||||||||||||||||||||||||||||||||||||
Intersegment net sales | ( | — | ||||||||||||||||||||||||||||||||||||
Total net sales | ( | |||||||||||||||||||||||||||||||||||||
Financial services revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||
All other professionals | — | |||||||||||||||||||||||||||||||||||||
External net sales | — | |||||||||||||||||||||||||||||||||||||
Intersegment net sales | ( | — | ||||||||||||||||||||||||||||||||||||
Total net sales | ( | |||||||||||||||||||||||||||||||||||||
Financial services revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Balance at | Opening Balance at | |||||||||||||||||||
(Amounts in millions) | December 28, 2019 | Topic 326 Adjustments | December 29, 2019 | |||||||||||||||||
Current assets | ||||||||||||||||||||
Finance receivables - allowance for credit losses | $ | ( | $ | ( | $ | ( | ||||||||||||||
Contract receivables - allowance for credit losses | ( | ( | ( | |||||||||||||||||
Long-term assets | ||||||||||||||||||||
Finance receivables - allowance for credit losses | ( | ( | ( | |||||||||||||||||
Contract receivables - allowance for credit losses | ( | ( | ( | |||||||||||||||||
Total allowances for credit losses | $ | ( | $ | ( | $ | ( | ||||||||||||||
Deferred income tax assets | $ | $ | $ | |||||||||||||||||
Equity | ||||||||||||||||||||
Retained Earnings | $ | $ | ( | $ |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
Trade and other accounts receivable | $ | $ | |||||||||
Allowances for credit losses | ( | ( | |||||||||
Total trade and other accounts receivable – net | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||
(Amounts in millions) | September 26, 2020 | September 26, 2020 | |||||||||
Allowances for credit losses: | |||||||||||
Beginning of period | $ | $ | |||||||||
Provision for credit losses | |||||||||||
Charge-offs | ( | ( | |||||||||
Recoveries | |||||||||||
Currency translation | ( | ||||||||||
End of period | $ | $ |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
Finance installment receivables | $ | $ | |||||||||
Finance lease receivables, net of unearned finance charges of $ | |||||||||||
Total finance receivables | |||||||||||
Contract installment receivables | |||||||||||
Contract lease receivables, net of unearned finance charges of $ | |||||||||||
Total contract receivables | |||||||||||
Total | |||||||||||
Allowances for credit losses: | |||||||||||
Finance installment receivables | ( | ( | |||||||||
Finance lease receivables | ( | ( | |||||||||
Total finance allowance for credit losses | ( | ( | |||||||||
Contract installment receivables | ( | ( | |||||||||
Contract lease receivables | ( | ( | |||||||||
Total contract allowance for credit losses | ( | ( | |||||||||
Total allowance for credit losses | ( | ( | |||||||||
Total current finance and contract receivables – net | $ | $ | |||||||||
Finance receivables – net | $ | $ | |||||||||
Contract receivables – net | |||||||||||
Total current finance and contract receivables – net | $ | $ |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
Finance installment receivables | $ | $ | |||||||||
Finance lease receivables, net of unearned finance charges of $ | |||||||||||
Total finance receivables | |||||||||||
Contract installment receivables | |||||||||||
Contract lease receivables, net of unearned finance charges of $ | |||||||||||
Total contract receivables | |||||||||||
Total | |||||||||||
Allowances for credit losses: | |||||||||||
Finance installment receivables | ( | ( | |||||||||
Finance lease receivables | ( | ( | |||||||||
Total finance allowance for credit losses | ( | ( | |||||||||
Contract installment receivables | ( | ( | |||||||||
Contract lease receivables | ( | ( | |||||||||
Total contract allowance for credit losses | ( | ( | |||||||||
Total allowance for credit losses | ( | ( | |||||||||
Total long-term finance and contract receivables – net | $ | $ | |||||||||
Finance receivables – net | $ | $ | |||||||||
Contract receivables – net | |||||||||||
Total long-term finance and contract receivables – net | $ | $ |
(Amounts in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||||||||||||||||
Finance Receivables: | |||||||||||||||||||||||||||||||||||||||||
Delinquent | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Non-delinquent | |||||||||||||||||||||||||||||||||||||||||
Total Finance receivables | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Contract receivables: | |||||||||||||||||||||||||||||||||||||||||
Delinquent | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Non-delinquent | |||||||||||||||||||||||||||||||||||||||||
Total Contract receivables | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended September 26, 2020 | Nine Months Ended September 26, 2020 | ||||||||||||||||||||||
(Amounts in millions) | Finance Receivables | Contract Receivables | Finance Receivables | Contract Receivables | |||||||||||||||||||
Allowances for credit losses: | |||||||||||||||||||||||
Beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Impact of adopting ASU No. 2016-13 | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | |||||||||||||||||||
Recoveries | |||||||||||||||||||||||
Currency translation | |||||||||||||||||||||||
End of period | $ | $ | $ | $ |
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 credit losses: | |||||||||||||||||||||||
Beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | |||||||||||||||||||
Recoveries | |||||||||||||||||||||||
Currency translation | ( | ( | |||||||||||||||||||||
End of period | $ | $ | $ | $ |
(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 26, 2020: | |||||||||||||||||||||||||||||||||||||||||
Finance receivables | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Contract receivables | |||||||||||||||||||||||||||||||||||||||||
December 28, 2019: | |||||||||||||||||||||||||||||||||||||||||
Finance receivables | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Contract receivables |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
Finance receivables | $ | $ | |||||||||
Contract receivables |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
Finished goods | $ | $ | |||||||||
Work in progress | |||||||||||
Raw materials | |||||||||||
Total FIFO value | |||||||||||
Excess of current cost over LIFO cost | ( | ( | |||||||||
Total inventories – net | $ | $ |
(Amounts in millions) | Commercial & Industrial Group | Snap-on Tools Group | Repair Systems & Information Group | Total | |||||||||||||||||||
Balance as of December 28, 2019 | $ | $ | $ | $ | |||||||||||||||||||
Currency translation | |||||||||||||||||||||||
Acquisitions and related adjustments | |||||||||||||||||||||||
Balance as of September 26, 2020 | $ | $ | $ | $ |
September 26, 2020 | December 28, 2019 | ||||||||||||||||||||||
(Amounts in millions) | Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||||||||
Amortized other intangible assets: | |||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Developed technology | ( | ( | |||||||||||||||||||||
Internally developed software | ( | ( | |||||||||||||||||||||
Patents | ( | ( | |||||||||||||||||||||
Trademarks | ( | ( | |||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||
Total | ( | ( | |||||||||||||||||||||
Non-amortized trademarks | — | — | |||||||||||||||||||||
Total other intangible assets | $ | $ | ( | $ | $ | ( |
In Years | |||||
Customer relationships | |||||
Developed technology | |||||
Internally developed software | |||||
Patents | |||||
Trademarks | |||||
Other |
Nine Months Ended | |||||
(Amounts in millions) | September 26, 2020 | ||||
Exit and disposal costs | |||||
Cost of goods sold: | |||||
Commercial & Industrial Group | $ | ||||
Repair System & Information Group | |||||
Total cost of goods sold | $ | ||||
Operating Expenses: | |||||
Snap-on Tools Group | $ | ||||
Repair System & Information Group | |||||
Total operating expenses | $ | ||||
Total exit and disposal costs: | |||||
Commercial & Industrial Group | $ | ||||
Snap-on Tools Group | |||||
Repair System & Information Group | |||||
Total exit and disposal costs | $ |
Balance at | First Six Months | Balance at | Third Quarter | Balance at | ||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | December 28, 2019 | Provision | Usage | June 27, 2020 | Provision | Usage | September 26, 2020 | |||||||||||||||||||||||||||||||||||||
Severance costs: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial & Industrial Group | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Snap-on Tools Group | ( | |||||||||||||||||||||||||||||||||||||||||||
Repair System & Information Group | ( | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ( | $ |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
$ | $ | ||||||||||
Other* | ( | ||||||||||
Less: notes payable and current maturities of long-term debt | |||||||||||
Current maturities of long-term debt | ( | ||||||||||
Commercial paper borrowings | ( | ||||||||||
Other notes | ( | ( | |||||||||
( | ( | ||||||||||
Total long-term debt | $ | $ |
* | Includes the net effects of debt amortization costs and fair value adjustments of interest rate swaps. |
September 26, 2020 | December 28, 2019 | ||||||||||||||||||||||
(Amounts in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
Finance receivables – net | $ | $ | $ | $ | |||||||||||||||||||
Contract receivables – net | |||||||||||||||||||||||
Long-term debt and notes payable and current maturities of long-term debt |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of unrecognized loss | |||||||||||||||||||||||
Amortization of prior service credit | ( | ( | |||||||||||||||||||||
Net periodic pension cost | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||||||||
Interest cost | $ | $ | $ | $ | |||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of unrecognized gain | ( | ( | |||||||||||||||||||||
Net periodic postretirement health care cost | $ | $ | $ | $ |
Nine Months Ended | |||||||||||
September 26, 2020 | September 28, 2019 | ||||||||||
Expected term of option (in years) | |||||||||||
Expected volatility factor | |||||||||||
Expected dividend yield | |||||||||||
Risk-free interest rate |
Shares (in thousands) | Exercise Price Per Share* | Remaining Contractual Term* (in years) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding at December 28, 2019 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited or expired | ( | ||||||||||||||||||||||
Outstanding at September 26, 2020 | $ | ||||||||||||||||||||||
Exercisable at September 26, 2020 |
* | Weighted-average |
Shares (in thousands) | Fair Value Price per Share* | ||||||||||
Non-vested performance awards at December 28, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested | |||||||||||
Cancellations and other | ( | ||||||||||
Non-vested performance awards at September 26, 2020 |
* | Weighted-average |
Nine Months Ended | |||||||||||
September 26, 2020 | September 28, 2019 | ||||||||||
Expected term of stock-settled SARs (in years) | |||||||||||
Expected volatility factor | |||||||||||
Expected dividend yield | |||||||||||
Risk-free interest rate |
Stock-settled SARs (in thousands) | Exercise Price Per Share* | Remaining Contractual Term* (in years) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding at December 28, 2019 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited or expired | ( | ||||||||||||||||||||||
Outstanding at September 26, 2020 | $ | ||||||||||||||||||||||
Exercisable at September 26, 2020 |
* | Weighted-average |
Nine Months Ended | |||||||||||
September 26, 2020 | September 28, 2019 | ||||||||||
Expected term of cash-settled SARs (in years) | |||||||||||
Expected volatility factor | |||||||||||
Expected dividend yield | |||||||||||
Risk-free interest rate |
Cash-settled SARs (in thousands) | Fair Value Price per Share* | ||||||||||
Non-vested cash-settled SARs at December 28, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Non-vested cash-settled SARs at September 26, 2020 |
* | Weighted-average |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | ||||||||||||||||||||
Weighted-average common shares outstanding | 54,325,711 | 54,969,340 | 54,421,129 | 55,245,705 | |||||||||||||||||||
Effect of dilutive securities | 441,636 | 687,602 | 448,292 | 755,157 | |||||||||||||||||||
Weighted-average common shares outstanding, assuming dilution | 54,767,347 | 55,656,942 | 54,869,421 | 56,000,862 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||||||||
Warranty reserve: | |||||||||||||||||||||||
Beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Usage | ( | ( | ( | ( | |||||||||||||||||||
End of period | $ | $ | $ | $ |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
Finance leases: | |||||||||||
Property and equipment - gross | $ | $ | |||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Property and equipment - net | $ | $ | |||||||||
Other accrued liabilities | $ | $ | |||||||||
Other long-term liabilities | |||||||||||
Total finance lease liabilities | $ | $ | |||||||||
Operating leases: | |||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Other accrued liabilities | $ | $ | |||||||||
Operating lease liabilities | |||||||||||
Total operating lease liabilities | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||||||||
Interest income | $ | $ | $ | $ | |||||||||||||||||||
Net foreign exchange loss | ( | ( | ( | ( | |||||||||||||||||||
Net periodic pension and postretirement benefits – non-service | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total other income (expense) – net | $ | $ | $ | $ |
(Amounts in millions) | Foreign Currency Translation | Cash Flow Hedges | Defined Benefit Pension and Postretirement Plans | Total | |||||||||||||||||||
Balance as of June 27, 2020 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||||||||
Amounts reclassified from Accumulated OCI | ( | ||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance as of September 26, 2020 | $ | ( | $ | $ | ( | $ | ( |
(Amounts in millions) | Foreign Currency Translation | Cash Flow Hedges | Defined Benefit Pension and Postretirement Plans | Total | |||||||||||||||||||
Balance as of December 28, 2019 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||||||||
Amounts reclassified from Accumulated OCI | ( | ||||||||||||||||||||||
Net other comprehensive income | |||||||||||||||||||||||
Balance as of September 26, 2020 | $ | ( | $ | $ | ( | $ | ( |
(Amounts in millions) | Foreign Currency Translation | Cash Flow Hedges | Defined Benefit Pension and Postretirement Plans | Total | |||||||||||||||||||
Balance as of June 29, 2019 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from Accumulated OCI | ( | ||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Balance as of 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 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Impact of the Tax Cuts and Jobs Act on Accumulated Other Comprehensive Income (ASU No. 2018-02) | — | — | ( | ( | |||||||||||||||||||
Balance at December 30, 2018 | ( | ( | ( | ||||||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from Accumulated OCI | ( | ||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Balance as of September 28, 2019 | $ | ( | $ | $ | ( | $ | ( |
Amount Reclassified from Accumulated OCI | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | Statement of Earnings Presentation | ||||||||||||||||||||||
(Amounts in millions) | ||||||||||||||||||||||||||
Gains on cash flow hedges: | ||||||||||||||||||||||||||
Treasury locks | $ | $ | $ | $ | Interest expense | |||||||||||||||||||||
Income tax expense | Income tax expense | |||||||||||||||||||||||||
Net of tax | ||||||||||||||||||||||||||
Amortization of net unrecognized losses and prior service credits | ( | ( | ( | ( | See footnote below* | |||||||||||||||||||||
Income tax benefit | Income tax expense | |||||||||||||||||||||||||
Net of tax | ( | ( | ( | ( | ||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | ( | $ | ( | $ | ( | $ | ( |
* | These Accumulated OCI components are included in the computation of net periodic pension and postretirement health care costs; see Note 11 and Note 12 for further information. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Commercial & Industrial Group | $ | $ | $ | $ | |||||||||||||||||||
Snap-on Tools Group | |||||||||||||||||||||||
Repair Systems & Information Group | |||||||||||||||||||||||
Segment net sales | |||||||||||||||||||||||
Intersegment eliminations | ( | ( | ( | ( | |||||||||||||||||||
Total net sales | |||||||||||||||||||||||
Financial Services revenue | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Operating earnings: | |||||||||||||||||||||||
Commercial & Industrial Group | $ | $ | $ | $ | |||||||||||||||||||
Snap-on Tools Group | |||||||||||||||||||||||
Repair Systems & Information Group | |||||||||||||||||||||||
Financial Services | |||||||||||||||||||||||
Segment operating earnings | |||||||||||||||||||||||
Corporate | ( | ( | ( | ( | |||||||||||||||||||
Operating earnings | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense) – net | |||||||||||||||||||||||
Earnings before income taxes and equity earnings | $ | $ | $ | $ |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
Assets: | |||||||||||
Commercial & Industrial Group | $ | $ | |||||||||
Snap-on Tools Group | |||||||||||
Repair Systems & Information Group | |||||||||||
Financial Services | |||||||||||
Total assets from reportable segments | |||||||||||
Corporate | |||||||||||
Elimination of intersegment receivables | ( | ( | |||||||||
Total assets | $ | $ |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
Net sales | $ | 941.6 | 100.0 | % | $ | 901.8 | 100.0 | % | $ | 39.8 | 4.4 | % | ||||||||||||||||||||||||||
Cost of goods sold | (472.1) | (50.1) | % | (453.7) | (50.3) | % | (18.4) | (4.1) | % | |||||||||||||||||||||||||||||
Gross profit | 469.5 | 49.9 | % | 448.1 | 49.7 | % | 21.4 | 4.8 | % | |||||||||||||||||||||||||||||
Operating expenses | (283.8) | (30.2) | % | (280.4) | (31.1) | % | (3.4) | (1.2) | % | |||||||||||||||||||||||||||||
Operating earnings before financial services | 185.7 | 19.7 | % | 167.7 | 18.6 | % | 18.0 | 10.7 | % | |||||||||||||||||||||||||||||
Financial services revenue | 85.8 | 100.0 | % | 84.1 | 100.0 | % | 1.7 | 2.0 | % | |||||||||||||||||||||||||||||
Financial services expenses | (20.2) | (23.5) | % | (23.1) | (27.5) | % | 2.9 | 12.6 | % | |||||||||||||||||||||||||||||
Operating earnings from financial services | 65.6 | 76.5 | % | 61.0 | 72.5 | % | 4.6 | 7.5 | % | |||||||||||||||||||||||||||||
Operating earnings | 251.3 | 24.5 | % | 228.7 | 23.2 | % | 22.6 | 9.9 | % | |||||||||||||||||||||||||||||
Interest expense | (13.8) | (1.3) | % | (12.0) | (1.2) | % | (1.8) | (15.0) | % | |||||||||||||||||||||||||||||
Other income (expense) – net | 2.8 | 0.2 | % | 2.8 | 0.3 | % | — | — | ||||||||||||||||||||||||||||||
Earnings before income taxes and equity earnings | 240.3 | 23.4 | % | 219.5 | 22.3 | % | 20.8 | 9.5 | % | |||||||||||||||||||||||||||||
Income tax expense | (55.1) | (5.4) | % | (50.4) | (5.1) | % | (4.7) | (9.3) | % | |||||||||||||||||||||||||||||
Earnings before equity earnings | 185.2 | 18.0 | % | 169.1 | 17.2 | % | 16.1 | 9.5 | % | |||||||||||||||||||||||||||||
Equity earnings (loss), net of tax | (0.5) | — | 0.1 | — | (0.6) | NM | ||||||||||||||||||||||||||||||||
Net earnings | 184.7 | 18.0 | % | 169.2 | 17.2 | % | 15.5 | 9.2 | % | |||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | (5.0) | (0.5) | % | (4.6) | (0.5) | % | (0.4) | (8.7) | % | |||||||||||||||||||||||||||||
Net earnings attributable to Snap-on Inc. | $ | 179.7 | 17.5 | % | $ | 164.6 | 16.7 | % | $ | 15.1 | 9.2 | % |
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. |
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
Net sales | $ | 2,518.1 | 100.0 | % | $ | 2,774.8 | 100.0 | % | $ | (256.7) | (9.3) | % | ||||||||||||||||||||||||||
Cost of goods sold | (1,285.8) | (51.1) | % | (1,381.3) | (49.8) | % | 95.5 | 6.9 | % | |||||||||||||||||||||||||||||
Gross profit | 1,232.3 | 48.9 | % | 1,393.5 | 50.2 | % | (161.2) | (11.6) | % | |||||||||||||||||||||||||||||
Operating expenses | (816.6) | (32.4) | % | (848.5) | (30.6) | % | 31.9 | 3.8 | % | |||||||||||||||||||||||||||||
Operating earnings before financial services | 415.7 | 16.5 | % | 545.0 | 19.6 | % | (129.3) | (23.7) | % | |||||||||||||||||||||||||||||
Financial services revenue | 256.3 | 100.0 | % | 253.8 | 100.0 | % | 2.5 | 1.0 | % | |||||||||||||||||||||||||||||
Financial services expenses | (76.2) | (29.7) | % | (70.1) | (27.6) | % | (6.1) | (8.7) | % | |||||||||||||||||||||||||||||
Operating earnings from financial services | 180.1 | 70.3 | % | 183.7 | 72.4 | % | (3.6) | (2.0) | % | |||||||||||||||||||||||||||||
Operating earnings | 595.8 | 21.5 | % | 728.7 | 24.1 | % | (132.9) | (18.2) | % | |||||||||||||||||||||||||||||
Interest expense | (38.6) | (1.4) | % | (36.9) | (1.2) | % | (1.7) | (4.6) | % | |||||||||||||||||||||||||||||
Other income (expense) – net | 6.3 | 0.2 | % | 6.4 | 0.2 | % | (0.1) | (1.6) | % | |||||||||||||||||||||||||||||
Earnings before income taxes and equity earnings | 563.5 | 20.3 | % | 698.2 | 23.1 | % | (134.7) | (19.3) | % | |||||||||||||||||||||||||||||
Income tax expense | (130.9) | (4.7) | % | (162.9) | (5.4) | % | 32.0 | 19.6 | % | |||||||||||||||||||||||||||||
Earnings before equity earnings | 432.6 | 15.6 | % | 535.3 | 17.7 | % | (102.7) | (19.2) | % | |||||||||||||||||||||||||||||
Equity earnings, net of tax | — | — | 0.9 | — | (0.9) | NM | ||||||||||||||||||||||||||||||||
Net earnings | 432.6 | 15.6 | % | 536.2 | 17.7 | % | (103.6) | (19.3) | % | |||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | (14.5) | (0.5) | % | (13.3) | (0.4) | % | (1.2) | (9.0) | % | |||||||||||||||||||||||||||||
Net earnings attributable to Snap-on Inc. | $ | 418.1 | 15.1 | % | $ | 522.9 | 17.3 | % | $ | (104.8) | (20.0) | % |
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. |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
External net sales | $ | 235.7 | 76.4 | % | $ | 257.0 | 76.6 | % | $ | (21.3) | (8.3) | % | ||||||||||||||||||||||||||
Intersegment net sales | 72.7 | 23.6 | % | 78.3 | 23.4 | % | (5.6) | (7.2) | % | |||||||||||||||||||||||||||||
Segment net sales | 308.4 | 100.0 | % | 335.3 | 100.0 | % | (26.9) | (8.0) | % | |||||||||||||||||||||||||||||
Cost of goods sold | (193.5) | (62.7) | % | (208.3) | (62.1) | % | 14.8 | 7.1 | % | |||||||||||||||||||||||||||||
Gross profit | 114.9 | 37.3 | % | 127.0 | 37.9 | % | (12.1) | (9.5) | % | |||||||||||||||||||||||||||||
Operating expenses | (71.8) | (23.3) | % | (78.7) | (23.5) | % | 6.9 | 8.8 | % | |||||||||||||||||||||||||||||
Segment operating earnings | $ | 43.1 | 14.0 | % | $ | 48.3 | 14.4 | % | $ | (5.2) | (10.8) | % |
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
External net sales | $ | 667.2 | 76.7 | % | $ | 769.5 | 77.5 | % | $ | (102.3) | (13.3) | % | ||||||||||||||||||||||||||
Intersegment net sales | 203.0 | 23.3 | % | 223.3 | 22.5 | % | (20.3) | (9.1) | % | |||||||||||||||||||||||||||||
Segment net sales | 870.2 | 100.0 | % | 992.8 | 100.0 | % | (122.6) | (12.3) | % | |||||||||||||||||||||||||||||
Cost of goods sold | (554.6) | (63.7) | % | (606.3) | (61.1) | % | 51.7 | 8.5 | % | |||||||||||||||||||||||||||||
Gross profit | 315.6 | 36.3 | % | 386.5 | 38.9 | % | (70.9) | (18.3) | % | |||||||||||||||||||||||||||||
Operating expenses | (218.1) | (25.1) | % | (242.8) | (24.4) | % | 24.7 | 10.2 | % | |||||||||||||||||||||||||||||
Segment operating earnings | $ | 97.5 | 11.2 | % | $ | 143.7 | 14.5 | % | $ | (46.2) | (32.2) | % |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
Segment net sales | $ | 449.8 | 100.0 | % | $ | 385.2 | 100.0 | % | $ | 64.6 | 16.8 | % | ||||||||||||||||||||||||||
Cost of goods sold | (245.3) | (54.5) | % | (218.0) | (56.6) | % | (27.3) | (12.5) | % | |||||||||||||||||||||||||||||
Gross profit | 204.5 | 45.5 | % | 167.2 | 43.4 | % | 37.3 | 22.3 | % | |||||||||||||||||||||||||||||
Operating expenses | (117.4) | (26.1) | % | (114.2) | (29.6) | % | (3.2) | (2.8) | % | |||||||||||||||||||||||||||||
Segment operating earnings | $ | 87.1 | 19.4 | % | $ | 53.0 | 13.8 | % | $ | 34.1 | 64.3 | % |
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
Segment net sales | $ | 1,149.0 | 100.0 | % | $ | 1,201.2 | 100.0 | % | $ | (52.2) | (4.3) | % | ||||||||||||||||||||||||||
Cost of goods sold | (649.3) | (56.5) | % | (668.0) | (55.6) | % | 18.7 | 2.8 | % | |||||||||||||||||||||||||||||
Gross profit | 499.7 | 43.5 | % | 533.2 | 44.4 | % | (33.5) | (6.3) | % | |||||||||||||||||||||||||||||
Operating expenses | (325.6) | (28.3) | % | (341.7) | (28.5) | % | 16.1 | 4.7 | % | |||||||||||||||||||||||||||||
Segment operating earnings | $ | 174.1 | 15.2 | % | $ | 191.5 | 15.9 | % | $ | (17.4) | (9.1) | % |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
External net sales | $ | 256.1 | 80.7 | % | $ | 259.6 | 80.4 | % | $ | (3.5) | (1.3) | % | ||||||||||||||||||||||||||
Intersegment net sales | 61.4 | 19.3 | % | 63.1 | 19.6 | % | (1.7) | (2.7) | % | |||||||||||||||||||||||||||||
Segment net sales | 317.5 | 100.0 | % | 322.7 | 100.0 | % | (5.2) | (1.6) | % | |||||||||||||||||||||||||||||
Cost of goods sold | (167.4) | (52.7) | % | (168.8) | (52.3) | % | 1.4 | 0.8 | % | |||||||||||||||||||||||||||||
Gross profit | 150.1 | 47.3 | % | 153.9 | 47.7 | % | (3.8) | (2.5) | % | |||||||||||||||||||||||||||||
Operating expenses | (70.0) | (22.1) | % | (70.6) | (21.9) | % | 0.6 | 0.8 | % | |||||||||||||||||||||||||||||
Segment operating earnings | $ | 80.1 | 25.2 | % | $ | 83.3 | 25.8 | % | $ | (3.2) | (3.8) | % |
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
External net sales | $ | 701.9 | 80.0 | % | $ | 804.1 | 80.5 | % | $ | (102.2) | (12.7) | % | ||||||||||||||||||||||||||
Intersegment net sales | 175.2 | 20.0 | % | 195.4 | 19.5 | % | (20.2) | (10.3) | % | |||||||||||||||||||||||||||||
Segment net sales | 877.1 | 100.0 | % | 999.5 | 100.0 | % | (122.4) | (12.2) | % | |||||||||||||||||||||||||||||
Cost of goods sold | (460.1) | (52.5) | % | (525.7) | (52.6) | % | 65.6 | 12.5 | % | |||||||||||||||||||||||||||||
Gross profit | 417.0 | 47.5 | % | 473.8 | 47.4 | % | (56.8) | (12.0) | % | |||||||||||||||||||||||||||||
Operating expenses | (209.0) | (23.8) | % | (218.3) | (21.8) | % | 9.3 | 4.3 | % | |||||||||||||||||||||||||||||
Segment operating earnings | $ | 208.0 | 23.7 | % | $ | 255.5 | 25.6 | % | $ | (47.5) | (18.6) | % |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
Financial services revenue | $ | 85.8 | 100.0 | % | $ | 84.1 | 100.0 | % | $ | 1.7 | 2.0 | % | ||||||||||||||||||||||||||
Financial services expenses | (20.2) | (23.5) | % | (23.1) | (27.5) | % | 2.9 | 12.6 | % | |||||||||||||||||||||||||||||
Segment operating earnings | $ | 65.6 | 76.5 | % | $ | 61.0 | 72.5 | % | $ | 4.6 | 7.5 | % |
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | Change | |||||||||||||||||||||||||||||||||||
Financial services revenue | $ | 256.3 | 100.0 | % | $ | 253.8 | 100.0 | % | $ | 2.5 | 1.0 | % | ||||||||||||||||||||||||||
Financial services expenses | (76.2) | (29.7) | % | (70.1) | (27.6) | % | (6.1) | (8.7) | % | |||||||||||||||||||||||||||||
Segment operating earnings | $ | 180.1 | 70.3 | % | $ | 183.7 | 72.4 | % | $ | (3.6) | (2.0) | % |
Operations* | Financial Services | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||||||||
Net sales | $ | 941.6 | $ | 901.8 | $ | — | $ | — | |||||||||||||||
Cost of goods sold | (472.1) | (453.7) | — | — | |||||||||||||||||||
Gross profit | 469.5 | 448.1 | — | — | |||||||||||||||||||
Operating expenses | (283.8) | (280.4) | — | — | |||||||||||||||||||
Operating earnings before financial services | 185.7 | 167.7 | — | — | |||||||||||||||||||
Financial services revenue | — | — | 85.8 | 84.1 | |||||||||||||||||||
Financial services expenses | — | — | (20.2) | (23.1) | |||||||||||||||||||
Operating earnings from financial services | — | — | 65.6 | 61.0 | |||||||||||||||||||
Operating earnings | 185.7 | 167.7 | 65.6 | 61.0 | |||||||||||||||||||
Interest expense | (13.8) | (11.9) | — | (0.1) | |||||||||||||||||||
Intersegment interest income (expense) – net | 16.5 | 17.3 | (16.5) | (17.3) | |||||||||||||||||||
Other income (expense) – net | 2.8 | 2.9 | — | (0.1) | |||||||||||||||||||
Earnings before income taxes and equity earnings | 191.2 | 176.0 | 49.1 | 43.5 | |||||||||||||||||||
Income tax expense | (42.4) | (39.2) | (12.7) | (11.2) | |||||||||||||||||||
Earnings before equity earnings | 148.8 | 136.8 | 36.4 | 32.3 | |||||||||||||||||||
Financial services – net earnings attributable to Snap-on | 36.4 | 32.3 | — | — | |||||||||||||||||||
Equity earnings (loss), net of tax | (0.5) | 0.1 | — | — | |||||||||||||||||||
Net earnings | 184.7 | 169.2 | 36.4 | 32.3 | |||||||||||||||||||
Net earnings attributable to noncontrolling interests | (5.0) | (4.6) | — | — | |||||||||||||||||||
Net earnings attributable to Snap-on | $ | 179.7 | $ | 164.6 | $ | 36.4 | $ | 32.3 |
Operations* | Financial Services | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||||||||
Net sales | $ | 2,518.1 | $ | 2,774.8 | $ | — | $ | — | |||||||||||||||
Cost of goods sold | (1,285.8) | (1,381.3) | — | — | |||||||||||||||||||
Gross profit | 1,232.3 | 1,393.5 | — | — | |||||||||||||||||||
Operating expenses | (816.6) | (848.5) | — | — | |||||||||||||||||||
Operating earnings before financial services | 415.7 | 545.0 | — | — | |||||||||||||||||||
Financial services revenue | — | — | 256.3 | 253.8 | |||||||||||||||||||
Financial services expenses | — | — | (76.2) | (70.1) | |||||||||||||||||||
Operating earnings from financial services | — | — | 180.1 | 183.7 | |||||||||||||||||||
Operating earnings | 415.7 | 545.0 | 180.1 | 183.7 | |||||||||||||||||||
Interest expense | (38.5) | (36.7) | (0.1) | (0.2) | |||||||||||||||||||
Intersegment interest income (expense) – net | 51.1 | 52.8 | (51.1) | (52.8) | |||||||||||||||||||
Other income (expense) – net | 6.3 | 6.5 | — | (0.1) | |||||||||||||||||||
Earnings before income taxes and equity earnings | 434.6 | 567.6 | 128.9 | 130.6 | |||||||||||||||||||
Income tax expense | (97.5) | (129.1) | (33.4) | (33.8) | |||||||||||||||||||
Earnings before equity earnings | 337.1 | 438.5 | 95.5 | 96.8 | |||||||||||||||||||
Financial services – net earnings attributable to Snap-on | 95.5 | 96.8 | — | — | |||||||||||||||||||
Equity earnings, net of tax | — | 0.9 | — | — | |||||||||||||||||||
Net earnings | 432.6 | 536.2 | 95.5 | 96.8 | |||||||||||||||||||
Net earnings attributable to noncontrolling interests | (14.5) | (13.3) | — | — | |||||||||||||||||||
Net earnings attributable to Snap-on | $ | 418.1 | $ | 522.9 | $ | 95.5 | $ | 96.8 |
Operations* | Financial Services | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | December 28, 2019 | September 26, 2020 | December 28, 2019 | |||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 787.2 | $ | 184.4 | $ | 0.3 | $ | 0.1 | |||||||||||||||
Intersegment receivables | 11.3 | 14.2 | — | — | |||||||||||||||||||
Trade and other accounts receivable – net | 617.8 | 693.5 | 1.1 | 1.1 | |||||||||||||||||||
Finance receivables – net | — | — | 532.1 | 530.1 | |||||||||||||||||||
Contract receivables – net | 7.0 | 6.8 | 106.3 | 93.9 | |||||||||||||||||||
Inventories – net | 764.4 | 760.4 | — | — | |||||||||||||||||||
Prepaid expenses and other assets | 122.7 | 111.8 | 8.3 | 7.0 | |||||||||||||||||||
Total current assets | 2,310.4 | 1,771.1 | 648.1 | 632.2 | |||||||||||||||||||
Property and equipment – net | 503.8 | 519.8 | 1.6 | 1.7 | |||||||||||||||||||
Operating lease right-of-use assets | 48.6 | 52.9 | 2.4 | 2.7 | |||||||||||||||||||
Investment in Financial Services | 347.0 | 340.5 | — | — | |||||||||||||||||||
Deferred income tax assets | 24.6 | 32.7 | 22.7 | 19.6 | |||||||||||||||||||
Intersegment long-term notes receivable | 302.9 | 755.5 | — | — | |||||||||||||||||||
Long-term finance receivables – net | — | — | 1,122.3 | 1,103.5 | |||||||||||||||||||
Long-term contract receivables – net | 13.3 | 16.0 | 353.9 | 344.1 | |||||||||||||||||||
Goodwill | 938.5 | 913.8 | — | — | |||||||||||||||||||
Other intangibles – net | 241.6 | 243.9 | — | — | |||||||||||||||||||
Other assets | 67.8 | 73.0 | 0.2 | 0.2 | |||||||||||||||||||
Total assets | $ | 4,798.5 | $ | 4,719.2 | $ | 2,151.2 | $ | 2,104.0 |
Operations* | Financial Services | ||||||||||||||||||||||
(Amounts in millions) | September 26, 2020 | December 28, 2019 | September 26, 2020 | December 28, 2019 | |||||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Notes payable and current maturities of long-term debt | $ | 17.9 | $ | 202.9 | $ | 250.0 | $ | — | |||||||||||||||
Accounts payable | 204.9 | 197.3 | 1.1 | 1.2 | |||||||||||||||||||
Intersegment payables | — | — | 11.3 | 14.2 | |||||||||||||||||||
Accrued benefits | 53.6 | 53.2 | — | 0.1 | |||||||||||||||||||
Accrued compensation | 80.3 | 52.2 | 2.2 | 1.7 | |||||||||||||||||||
Franchisee deposits | 85.9 | 68.2 | — | — | |||||||||||||||||||
Other accrued liabilities | 392.8 | 353.7 | 37.3 | 25.7 | |||||||||||||||||||
Total current liabilities | 835.4 | 927.5 | 301.9 | 42.9 | |||||||||||||||||||
Long-term debt and intersegment long-term debt | — | — | 1,484.7 | 1,702.4 | |||||||||||||||||||
Deferred income tax liabilities | 63.5 | 69.3 | — | — | |||||||||||||||||||
Retiree health care benefits | 31.5 | 33.6 | — | — | |||||||||||||||||||
Pension liabilities | 103.7 | 122.1 | — | — | |||||||||||||||||||
Operating lease liabilities | 31.0 | 34.5 | 2.6 | 3.0 | |||||||||||||||||||
Other long-term liabilities | 92.6 | 101.4 | 15.0 | 15.2 | |||||||||||||||||||
Total liabilities | 1,157.7 | 1,288.4 | 1,804.2 | 1,763.5 | |||||||||||||||||||
Total shareholders’ equity attributable to Snap-on Inc. | 3,619.0 | 3,409.1 | 347.0 | 340.5 | |||||||||||||||||||
Noncontrolling interests | 21.8 | 21.7 | — | — | |||||||||||||||||||
Total equity | 3,640.8 | 3,430.8 | 347.0 | 340.5 | |||||||||||||||||||
Total liabilities and equity | $ | 4,798.5 | $ | 4,719.2 | $ | 2,151.2 | $ | 2,104.0 |
(Amounts in millions) | September 26, 2020 | December 28, 2019 | |||||||||
Cash and cash equivalents | $ | 787.5 | $ | 184.5 | |||||||
Trade and other accounts receivable – net | 618.9 | 694.6 | |||||||||
Finance receivables – net | 532.1 | 530.1 | |||||||||
Contract receivables – net | 113.3 | 100.7 | |||||||||
Inventories – net | 764.4 | 760.4 | |||||||||
Prepaid expenses and other assets | 122.0 | 110.2 | |||||||||
Total current assets | 2,938.2 | 2,380.5 | |||||||||
Notes payable and current maturities of long-term debt | (267.9) | (202.9) | |||||||||
Accounts payable | (206.0) | (198.5) | |||||||||
Other current liabilities | (643.1) | (546.2) | |||||||||
Total current liabilities | (1,117.0) | (947.6) | |||||||||
Total working capital | $ | 1,821.2 | $ | 1,432.9 | |||||||
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* | ||||||||||||||||||||||
6/28/20 to 7/25/20 | — | — | — | $331.8 million | ||||||||||||||||||||||
7/26/20 to 8/22/20 | 180,000 | $150.79 | 180,000 | $312.5 million | ||||||||||||||||||||||
8/23/20 to 9/26/20 | 120,000 | $149.61 | 120,000 | $294.5 million | ||||||||||||||||||||||
Total/Average | 300,000 | $150.32 | 300,000 | N/A | ||||||||||||||||||||||
N/A: Not applicable |
Citibank Purchases (Sales) of Snap-on Stock | ||||||||||||||
Period | Shares purchased (sold) | Average price per share | ||||||||||||
6/28/20 to 7/25/20 | — | — | ||||||||||||
7/26/20 to 8/22/20 | (20,300) | $143.73 | ||||||||||||
8/23/20 to 9/26/20 | 2,000 | $152.98 | ||||||||||||
Total/Average | (18,300) | $144.56 |
Item 6: Exhibits | ||||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Exhibit 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
Exhibit 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
Exhibit 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
Exhibit 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
Exhibit 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
Exhibit 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
Exhibit 104 | Cover page Inline XBRL data (contained in Exhibit 101) |
SNAP-ON INCORPORATED | |||||
Date: October 22, 2020 | /s/ Aldo J. Pagliari | ||||
Aldo J. Pagliari, Principal Financial Officer, | |||||
Senior Vice President – Finance and | |||||
Chief Financial Officer |
/s/ Nicholas T. Pinchuk | ||
Nicholas T. Pinchuk | ||
Chief Executive Officer |
/s/ Aldo J. Pagliari | ||
Aldo J. Pagliari | ||
Principal Financial Officer |
/s/ Nicholas T. Pinchuk | ||
Nicholas T. Pinchuk | ||
Chief Executive Officer | ||
October 22, 2020 |
/s/ Aldo J. Pagliari | ||
Aldo J. Pagliari | ||
Principal Financial Officer | ||
October 22, 2020 |
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Net sales | $ 1,027.4 | $ 985.9 | $ 2,774.4 | $ 3,028.6 |
Operating earnings | 251.3 | 228.7 | 595.8 | 728.7 |
Interest expense | (13.8) | (12.0) | (38.6) | (36.9) |
Other income (expense) – net | 2.8 | 2.8 | 6.3 | 6.4 |
Earnings before income taxes and equity earnings | 240.3 | 219.5 | 563.5 | 698.2 |
Income tax expense | (55.1) | (50.4) | (130.9) | (162.9) |
Earnings before equity earnings | 185.2 | 169.1 | 432.6 | 535.3 |
Equity earnings (loss), net of tax | (0.5) | 0.1 | 0.0 | 0.9 |
Net earnings | 184.7 | 169.2 | 432.6 | 536.2 |
Net earnings attributable to noncontrolling interests | (5.0) | (4.6) | (14.5) | (13.3) |
Net earnings attributable to Snap-on Incorporated | $ 179.7 | $ 164.6 | $ 418.1 | $ 522.9 |
Net earnings per share attributable to Snap-on Incorporated: | ||||
Basic (in dollars per share) | $ 3.31 | $ 2.99 | $ 7.69 | $ 9.47 |
Diluted (in dollars per share) | $ 3.28 | $ 2.96 | $ 7.62 | $ 9.34 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 54.3 | 55.0 | 54.4 | 55.2 |
Effect of dilutive securities (in shares) | 0.5 | 0.7 | 0.5 | 0.8 |
Weighted-average common shares outstanding, diluted (in shares) | 54.8 | 55.7 | 54.9 | 56.0 |
Dividends declared per common share (in dollars per share) | $ 1.08 | $ 0.95 | $ 3.24 | $ 2.85 |
Excluding Financial Services | ||||
Net sales | $ 941.6 | $ 901.8 | $ 2,518.1 | $ 2,774.8 |
Cost of goods sold | (472.1) | (453.7) | (1,285.8) | (1,381.3) |
Gross profit | 469.5 | 448.1 | 1,232.3 | 1,393.5 |
Operating expenses | (283.8) | (280.4) | (816.6) | (848.5) |
Operating earnings | 185.7 | 167.7 | 415.7 | 545.0 |
Financial Service | ||||
Net sales | 85.8 | 84.1 | 256.3 | 253.8 |
Cost of goods sold | (20.2) | (23.1) | (76.2) | (70.1) |
Operating earnings | $ 65.6 | $ 61.0 | $ 180.1 | $ 183.7 |
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Current assets: | ||
Cash and cash equivalents | $ 787.5 | $ 184.5 |
Trade and other accounts receivable – net | 618.9 | 694.6 |
Finance receivables and contract receivables - net | 645.4 | 630.8 |
Inventories – net | 764.4 | 760.4 |
Prepaid expenses and other assets | 122.0 | 110.2 |
Total current assets | 2,938.2 | 2,380.5 |
Property and equipment: | ||
Property and equipment and finance lease right-of-use asset, gross | 1,451.0 | 1,425.0 |
Accumulated depreciation and amortization | (945.6) | (903.5) |
Property and equipment – net | 505.4 | 521.5 |
Operating lease right-of-use assets | 51.0 | 55.6 |
Deferred income tax assets | 47.3 | 52.3 |
Long-term finance receivables and contract receivables - net | 1,489.5 | 1,463.6 |
Goodwill | 938.5 | 913.8 |
Other intangibles – net | 241.6 | 243.9 |
Other assets | 56.1 | 62.3 |
Total assets | 6,267.6 | 5,693.5 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 267.9 | 202.9 |
Accounts payable | 206.0 | 198.5 |
Accrued benefits | 53.6 | 53.3 |
Accrued compensation | 82.5 | 53.9 |
Franchisee deposits | 85.9 | 68.2 |
Other accrued liabilities | 421.1 | 370.8 |
Total current liabilities | 1,117.0 | 947.6 |
Long-term debt | 1,181.8 | 946.9 |
Deferred income tax liabilities | 63.5 | 69.3 |
Retiree health care benefits | 31.5 | 33.6 |
Pension liabilities | 103.7 | 122.1 |
Operating lease liabilities | 33.6 | 37.5 |
Other long-term liabilities | 95.7 | 105.7 |
Total liabilities | 2,626.8 | 2,262.7 |
Commitments and contingencies | ||
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 67,430,879 and 67,423,106 shares, respectively) | 67.4 | 67.4 |
Additional paid-in capital | 386.3 | 379.1 |
Retained earnings | 5,014.9 | 4,779.7 |
Accumulated other comprehensive loss | (465.6) | (507.9) |
Treasury stock at cost (13,220,919 and 12,772,882 shares, respectively) | (1,384.0) | (1,309.2) |
Total shareholders’ equity attributable to Snap-on Incorporated | 3,619.0 | 3,409.1 |
Noncontrolling interests | 21.8 | 21.7 |
Total equity | 3,640.8 | 3,430.8 |
Total liabilities and equity | 6,267.6 | 5,693.5 |
Land | ||
Property and equipment: | ||
Property and equipment, gross | 32.3 | 31.9 |
Buildings and improvements | ||
Property and equipment: | ||
Property and equipment and finance lease right-of-use asset, gross | 414.5 | 405.1 |
Machinery, equipment and computer software | ||
Property and equipment: | ||
Property and equipment and finance lease right-of-use asset, gross | 1,004.2 | 988.0 |
Finance Receivables | ||
Current assets: | ||
Finance receivables and contract receivables - net | 532.1 | 530.1 |
Property and equipment: | ||
Long-term finance receivables and contract receivables - net | 1,122.3 | 1,103.5 |
Contract Receivables | ||
Current assets: | ||
Finance receivables and contract receivables - net | 113.3 | 100.7 |
Property and equipment: | ||
Long-term finance receivables and contract receivables - net | $ 367.2 | $ 360.1 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
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) | 67,430,879 | 67,423,106 |
Treasury stock (in shares) | 13,220,919 | 12,772,882 |
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Cumulative Effect, Period of Adoption, Adjusted Balance |
Common Stock |
Common Stock
Cumulative Effect, Period of Adoption, Adjusted Balance
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Additional Paid-in Capital |
Additional Paid-in Capital
Cumulative Effect, Period of Adoption, Adjusted Balance
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Retained Earnings |
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
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Retained Earnings
Cumulative Effect, Period of Adoption, Adjusted Balance
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Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period of Adoption, Adjustment
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Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period of Adoption, Adjusted Balance
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Treasury Stock |
Treasury Stock
Cumulative Effect, Period of Adoption, Adjusted Balance
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Noncontrolling Interests |
Noncontrolling Interests
Cumulative Effect, Period of Adoption, Adjusted Balance
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 29, 2018 | $ 3,118.6 | $ 3,118.6 | $ 67.4 | $ 67.4 | $ 359.4 | $ 359.4 | $ 4,257.6 | $ 45.9 | $ 4,303.5 | $ (462.2) | $ (45.9) | $ (508.1) | $ (1,123.4) | $ (1,123.4) | $ 19.8 | $ 19.8 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net earnings | 536.2 | 522.9 | 13.3 | ||||||||||||||
Other comprehensive income (loss) | (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 income (loss) | (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 | ||||||||||
Beginning balance at Dec. 28, 2019 | 3,430.8 | $ 3,424.7 | 67.4 | $ 67.4 | 379.1 | $ 379.1 | 4,779.7 | $ 4,773.6 | (507.9) | $ (507.9) | (1,309.2) | $ (1,309.2) | 21.7 | $ 21.7 | |||
Beginning balance (Accounting Standards Update 2016-13) at Dec. 28, 2019 | $ (6.1) | $ (6.1) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net earnings | 432.6 | 418.1 | 14.5 | ||||||||||||||
Other comprehensive income (loss) | 42.3 | 42.3 | |||||||||||||||
Cash dividends | (176.5) | (176.5) | |||||||||||||||
Stock compensation plans | 28.0 | 7.2 | 20.8 | ||||||||||||||
Share repurchases | (95.6) | (95.6) | |||||||||||||||
Other | (14.7) | (0.3) | (14.4) | ||||||||||||||
Ending balance at Sep. 26, 2020 | 3,640.8 | 67.4 | 386.3 | 5,014.9 | (465.6) | (1,384.0) | 21.8 | ||||||||||
Beginning balance at Jun. 27, 2020 | 3,508.6 | 67.4 | 383.1 | 4,894.2 | (514.4) | (1,343.6) | 21.9 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net earnings | 184.7 | 179.7 | 5.0 | ||||||||||||||
Other comprehensive income (loss) | 48.8 | 48.8 | |||||||||||||||
Cash dividends | (58.8) | (58.8) | |||||||||||||||
Stock compensation plans | 7.9 | 3.2 | 4.7 | ||||||||||||||
Share repurchases | (45.1) | (45.1) | |||||||||||||||
Other | (5.3) | (0.2) | (5.1) | ||||||||||||||
Ending balance at Sep. 26, 2020 | $ 3,640.8 | $ 67.4 | $ 386.3 | $ 5,014.9 | $ (465.6) | $ (1,384.0) | $ 21.8 |
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 29, 2018 |
|
Statement of Stockholders' Equity [Abstract] | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | ||||
Cash dividends per share (in dollars per share) | $ 1.08 | $ 0.95 | $ 3.24 | $ 2.85 | |
Share repurchases (in shares) | 300,000 | 400,000 | 649,000 | 1,060,000 | |
Treasury Stock, Value, Acquired, Cost Method | $ (45.1) | $ (59.7) | $ (95.6) | $ (167.2) |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Operating activities: | ||
Net earnings | $ 432.6 | $ 536.2 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||
Depreciation | 54.3 | 52.2 |
Amortization of other intangibles | 17.2 | 16.3 |
Provision for losses on finance receivables | 41.2 | 35.8 |
Provision for losses on non-finance receivables | 16.3 | 14.4 |
Stock-based compensation expense | 12.5 | 18.7 |
Deferred income tax provision (benefit) | (8.5) | 10.7 |
Loss on sales of assets | 0.7 | 0.8 |
Settlement of treasury lock | 1.4 | 0.0 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Trade and other accounts receivable | 58.5 | (8.4) |
Contract receivables | (26.8) | (12.9) |
Inventories | (3.6) | (97.3) |
Prepaid and other assets | (0.3) | (17.0) |
Accounts payable | 10.3 | 9.2 |
Accruals and other liabilities | 85.2 | (80.8) |
Net cash provided by operating activities | 691.0 | 477.9 |
Investing activities: | ||
Additions to finance receivables | (611.5) | (628.1) |
Collections of finance receivables | 542.7 | 565.1 |
Capital expenditures | (39.1) | (77.8) |
Acquisitions of businesses, net of cash acquired | (6.1) | (38.9) |
Disposals of property and equipment | 1.4 | 0.3 |
Other | (1.6) | (1.3) |
Net cash used by investing activities | (114.2) | (180.7) |
Financing activities: | ||
Proceeds from issuance of long-term debt | 489.9 | 0.0 |
Net increase (decrease) in other short-term borrowings | (187.7) | 46.9 |
Cash dividends paid | (176.5) | (157.6) |
Purchases of treasury stock | (95.6) | (167.2) |
Proceeds from stock purchase and option plans | 16.5 | 26.2 |
Other | (19.3) | (18.5) |
Net cash provided (used) by financing activities | 27.3 | (270.2) |
Effect of exchange rate changes on cash and cash equivalents | (1.1) | (0.4) |
Increase in cash and cash equivalents | 603.0 | 26.6 |
Cash and cash equivalents at beginning of year | 184.5 | 140.9 |
Cash and cash equivalents at end of period | 787.5 | 167.5 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | (41.2) | (44.8) |
Net cash paid for income taxes | $ (131.9) | $ (140.5) |
Summary of Accounting Policies |
9 Months Ended |
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Sep. 26, 2020 | |
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 2019 Annual Report on Form 10-K for the fiscal year ended December 28, 2019 (“2019 year end”), as updated below. The company’s 2020 fiscal year, which ends on January 2, 2021, will contain 53 weeks of operating results, with the additional week occurring in the fourth quarter. The company’s 2019 fiscal year contained 52 weeks of operating results. Snap-on’s 2020 fiscal third quarter ended on September 26, 2020; the 2019 fiscal third quarter ended on September 28, 2019. The company’s 2020 and 2019 fiscal third quarters each 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 26, 2020, and September 28, 2019, have been made. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. With the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), the company has updated the following policies, effective December 29, 2019, the beginning of Snap-on’s fiscal year 2020: Financial services revenue: Snap-on generates revenue from various financing programs that include: (i) installment sales and lease contracts arising from franchisees’ customers and Snap-on customers who require financing for the purchase or lease of tools and diagnostic and equipment products on an extended-term payment plan; and (ii) business loans and vehicle leases to franchisees. These financing programs are offered through Snap-on’s wholly owned finance subsidiaries. Financial services revenue consists primarily of interest income on finance and contract receivables and is recognized over the life of the underlying contracts, with interest computed primarily on the average daily balances of the underlying contracts. The decision to finance through Snap-on or another financing source is solely at the election of the customer. When assessing customers for potential financing, Snap-on considers various factors regarding ability to pay, including the customers’ financial condition, past payment experience, and credit bureau and proprietary Snap-on credit model information, as well as the value of the underlying collateral. For finance and contract receivables, Snap-on assesses quantitative and qualitative factors through the use of credit quality indicators consisting primarily of collection experience and related internal metrics. Delinquency is the primary indicator of credit quality for finance and contract receivables. Snap-on conducts monthly reviews of credit and collection performance for both the finance and contract receivable portfolios, focusing on data such as delinquency trends, nonaccrual receivables, and write-off and recovery activity. Receivables and allowances for credit losses: All trade, finance and contract receivables are reported on the Condensed Consolidated Balance Sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. The amortized costs for finance and contract receivables are the amount originated adjusted for applicable accrued interest and net of deferred fees or costs, net of collections and write-offs. Snap-on maintains allowances for credit losses, which represent an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the company’s ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in each of its receivable portfolios (trade, finance and contract receivables). For trade receivables, Snap-on uses historical loss experience rates by portfolio and applies them to a related aging analysis while also considering customer and/or economic risk where appropriate. For finance receivables, Snap-on uses a vintage loss experience analysis. For contract receivables, a weighted-average remaining maturity method is primarily used. Determination of the proper amount of allowances by portfolio requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings. The allowances take into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, delinquency trends, collection experience, current economic conditions, supportable forecasts, when appropriate, and credit risk characteristics. Snap-on evaluates the credit risk of the customer when extending credit based on a combination of various financial and qualitative factors that may affect its customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau and proprietary Snap-on credit model information, as well as the value of the underlying collateral. Management performs detailed reviews of its receivables on a monthly and/or quarterly basis to assess the adequacy of the allowances and to determine if any impairment has occurred. Monthly reviews of credit and collection performance are conducted for both its finance and contract receivable portfolios focusing on data such as delinquency trends, non-performing assets, and write-off and recovery activity. These reviews allow for the formulation of collection strategies and potential collection policy modifications in response to changing risk profiles in the finance and contract receivable portfolios. A receivable may have credit losses when it is expected that all amounts related to the receivable will not be collected according to the contractual terms of the agreement. Amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. For both finance and contract receivables, net write-offs include the principal amount of losses written off as well as written-off interest and fees, and recourse from franchisees on finance receivables. Recovered interest and fees previously written off are recorded through the allowances for credit losses and increase the allowance. Finance receivables are assessed for write-off when an account becomes 120 days past due and are written off typically within 60 days of asset repossession. Contract receivables related to equipment leases are generally written off when an account becomes 150 days past due, while contract receivables related to franchise finance and van leases are generally written off up to 180 days past the asset return date. For finance and contract receivables, customer bankruptcies are generally written off upon notification that the associated debt is not being reaffirmed or, in any event, no later than 180 days past due. Changes to the allowances for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings. Actual amounts as of the balance sheet dates may be materially different than the amounts reported in future periods due to the uncertainty in the estimation process. Also, future amounts could differ materially from those estimates due to changes in circumstances after the balance sheet date. Snap-on does not believe that its trade, finance or contract receivables represent significant concentrations of credit risk because of the diversified portfolio of individual customers and geographical areas. See Note 4 for further information on receivables and allowances for credit losses. 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 10 for further information on financial instruments. New Accounting Standards The following new accounting pronouncements were adopted by Snap-on in fiscal year 2020: On December 29, 2019, the beginning of Snap-on’s fiscal year, the company adopted 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. The adoption of this ASU did not have an impact on the company’s Condensed Consolidated Financial Statements or disclosures. On December 29, 2019, the beginning of Snap-on’s fiscal year, the company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The main objective of this ASU is to provide financial statement users with more information about the expected credit losses over the contractual life of financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Snap-on adopted ASU No. 2016-13 under the modified retrospective approach for receivables measured at amortized costs with prior periods reported in accordance with previously applicable guidance. See Note 4 for a discussion about the impact the adoption of this ASU had on the company and further information on credit losses. The following new accounting pronouncement, and related impact on adoption, is being evaluated by the company: In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years; this ASU allows for early adoption in any interim period 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.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | 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. Revenue Disaggregation: The following table shows the consolidated revenues by revenue source:
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 tables represent external net sales disaggregated by geography, based on the customers’ billing addresses:
The following tables represent external net sales disaggregated by customer type:
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 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 dealership service and repair shops (“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 $215.0 million of long-term contracts that have fixed consideration that extends beyond one year as of September 26, 2020. Snap-on expects to recognize approximately 50% of these contracts as revenue by the end of fiscal 2021, an additional 40% by the end of fiscal 2023 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 was $57.8 million and $65.1 million at September 26, 2020, and December 28, 2019, respectively. The current portion of contract liabilities is included in “Other accrued liabilities” and the non-current portion of such liabilities is included in “Other long-term liabilities” on the accompanying Condensed Consolidated Balance Sheets. During the three and nine months ended September 26, 2020, Snap-on recognized revenue of $7.3 million and $49.7 million, respectively, that was included in the $65.1 million contract liability balance at December 28, 2019, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.
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Acquisitions |
9 Months Ended |
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Sep. 26, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On January 31, 2020, Snap-on acquired substantially all of the assets related to the TreadReader product line from Sigmavision Limited (“Sigmavision”), for a cash purchase price of $5.9 million. Sigmavision designs and manufactures handheld devices and drive-over ramps that provide tire information for use in the automotive industry. The company completed the purchase accounting valuations for the acquired net assets of Sigmavision, including intangible assets, in the second quarter of 2020. The $5.6 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. On August 7, 2019, Snap-on acquired Cognitran Limited (“Cognitran”) for a cash purchase price of $30.6 million (or $29.6 million, net of cash acquired). 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. The company completed the purchase accounting valuations for the acquired net assets of Cognitran, including intangible assets, in the second quarter of 2020. The $14.5 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 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 company completed the purchase accounting valuations for the acquired net assets of Power Hawk, including intangible assets, in the third quarter of 2019. 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. For segment reporting purposes, the results of operations and assets of Sigmavision, Cognitran and TMB have been included in the Repair Systems & Information Group since the respective acquisition dates, and the results of operations and assets of Power Hawk 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. See Note 6 for further information on goodwill and other intangible assets.
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Receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | ReceivablesAt the beginning of fiscal 2020, Snap-on adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The adoption did not have a significant impact on the company’s consolidated financial statements. Under ASU No. 2016-13, Snap-on is required to remeasure expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The effects of adjustments to the December 28, 2019 Condensed Consolidated Balance Sheet as a result of the adoption of ASU No. 2016-13, including an increase in the allowance for credit losses of $8.1 million, were as follows:
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 26, 2020, and December 28, 2019, are as follows:
The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and nine months ended September 26, 2020:
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 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 payment terms of approximately four years. Contract receivables, with payment terms of up to 10 years, are comprised of extended-term 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, as well as extended-term contracts 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. Finance and contract receivables are generally secured by the underlying tools and/or diagnostic or equipment products financed and, for contracts to franchisees, other franchisee assets. The components of Snap-on’s current finance and contract receivables as of September 26, 2020, and December 28, 2019, are as follows:
The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of September 26, 2020, and December 28, 2019, are as follows:
Credit quality: The company’s receivable portfolio is comprised of two portfolio segments, finance and contract receivables, which are the same segments used to estimate expected credit losses reported in the allowance for credit losses. The amortized cost basis for finance and contract receivables is the amount originated adjusted for applicable accrued interest and net of deferred fees or costs, collection of cash, and write-offs. The company monitors and assesses credit risk based on the characteristics of each portfolio segment. When extending credit, Snap-on evaluates the collectability of the receivables based on a combination of various financial and qualitative factors that may affect a customer’s ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau and proprietary Snap-on credit model information, as well as the value of the underlying collateral. For finance and contract receivables, Snap-on assesses quantitative and qualitative factors through the use of credit quality indicators consisting primarily of collection experience and related internal metrics. Delinquency is the primary indicator of credit quality for finance and contract receivables. Snap-on conducts monthly reviews of credit and collection performance for both the finance and contract receivable portfolios focusing on data such as delinquency trends, nonaccrual receivables, and write-off and recovery activity. These reviews allow for the formulation of collection strategies and potential collection policy modifications in response to changing risk profiles in the finance and contract receivable portfolios. The other internal metrics include credit exposure by customer and delinquency classification to further monitor changing risk profiles. The company maintains a system that aggregates credit exposure and provides delinquency data by days past due aging categories. A receivable 30 days or more past due is considered delinquent. However, customers are monitored prior to becoming 30 days past due. The amortized cost basis of finance and contract receivables by origination year as of September 26, 2020, are as follows:
Allowance for credit losses: The allowance for credit losses utilizes an expected credit loss objective for the recognition of credit losses on receivables over the contractual life using historical experience, asset specific risk characteristics, current conditions, reasonable and supportable forecasts, and the appropriate reversion period, when applicable. The allowance for credit losses is maintained at a level that is considered adequate to cover credit-related losses on the receivables. Management performs detailed reviews of its receivables on a monthly and/or quarterly basis to assess the adequacy of the allowance and determine if any impairment has occurred. A receivable may have credit losses when it is expected that all amounts related to the receivable will not be collected according to the contractual terms of the agreement. Amounts determined to be uncollectable are charged directly against the allowance, while amounts recovered on previously written-off accounts increase the allowance. For both finance and contract receivables, net write-offs include the principal amount of losses written off as well as written-off accrued interest and fees, and recourse from franchisees on finance receivables. Recovered interest and fees previously written off are recorded through the allowance for credit losses and increase the allowance. Finance receivables are assessed for write-off when an account becomes 120 days past due and are written off typically within 60 days of asset repossession. Contract receivables related to equipment leases are generally written off when an account becomes 150 days past due, while contract receivables related to franchise finance and van leases are generally written off up to 180 days past the asset return date. For finance and contract receivables, customer bankruptcies are generally written off upon notification that the associated debt is not being reaffirmed or, in any event, no later than 180 days past due. Additions to the allowances for credit losses are maintained through adjustments to the provision for credit losses. For finance receivables, the company uses a vintage loss rate methodology to determine expected losses. Vintage analysis aims to calculate losses based on the timing of the losses relative to the origination of the receivables. The finance receivable portfolio contains a substantial amount of homogeneous contracts which fits well with the vintage analysis. For contract receivables, the company primarily uses a Weighted-Average Remaining Maturity methodology (“WARM”). The WARM methodology calculates the average annual write-off rate and applies it to the remaining term of the receivables. The WARM method is used since the contract receivables have limited loss experience over generally longer terms and, therefore, the predictive loss patterns are more difficult to estimate. The company performed a correlation analysis to compare historical losses to many economic factors. The primary economic factors considered were real gross domestic product, civilian unemployment, industrial production index, and repair and maintenance employment rate; the company determined that there is limited correlation between the historical losses and economic factors. As a result, consideration was given to qualitative factors to adjust the reserve balance for asset specific risk characteristics, current conditions and future expectations. Similar qualitative factors are considered for both finance and contract receivables. The qualitative factors used in determining the estimate of expected credit losses are influenced by the changes in the composition of the portfolio, underwriting practices, and other relevant conditions that were different from the historical periods, which included considering the impact of the ongoing coronavirus (“COVID-19”) pandemic. The allowance for credit losses is adjusted each period for changes in the credit risk and expected lifetime credit losses. The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and nine months ended September 26, 2020, and September 28, 2019:
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 contractual payment due date. The entire receivable balance of a contract is considered delinquent when contractual payments become 30 days past due. Removal from delinquent status occurs when the cumulative amount of monthly contractual payments then due have been received by the company. It is the general practice of Snap-on’s financial services business not to engage in contract or loan modifications. In limited instances, Snap-on’s financial services business may modify certain receivables in troubled debt restructurings. The amount and number of restructured finance and contract receivables as of September 26, 2020, and December 28, 2019, 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 26, 2020, and December 28, 2019, is as follows:
Nonaccrual: SOC maintains the accrual of interest income during the progression through the various stages of delinquency prior to processing for write-off. At the time of write-off, the entire balance including the accrued but unpaid interest income amount is recorded as a loss. 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. 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. 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. A receivable may have credit losses when it is expected that all amounts related to the receivable will not be collected according to the contractual terms of the applicable agreement. Such finance and contract receivables are covered by the company’s respective allowances for credit losses and are written-off against the allowances when appropriate. The amount of finance and contract receivables on nonaccrual status as of September 26, 2020, and December 28, 2019, is as follows:
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories by major classification are as follows:
Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 56% and 58% of total inventories as of September 26, 2020 and December 28, 2019, respectively. The company accounts for its non-U.S. inventory on the FIFO method. As of September 26, 2020, approximately 29% of the company’s U.S. inventory was accounted for using the FIFO method and 71% 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 26, 2020, or September 28, 2019.
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Goodwill and Other Intangible Assets |
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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 26, 2020, are as follows:
Goodwill of $938.5 million as of September 26, 2020, included $5.6 million from the acquisition of certain assets of Sigmavision and a $3.1 million increase resulting from the completion of purchase accounting valuations for the 2019 Cognitran acquisition. The goodwill from Sigmavision and Cognitran is included in the Repair Systems & Information Group. See Note 3 for additional information on acquisitions. Additional disclosures related to other intangible assets are as follows:
Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2020, and 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 26, 2020, the company had no accumulated impairment losses. The weighted-average amortization periods related to other intangible assets are as follows:
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 11 years. The company’s customer relationships generally have contractual terms of 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 $5.8 million and $17.2 million for the respective three and nine months ended September 26, 2020, and $5.5 million and $16.3 million for the respective three and nine months ended September 28, 2019. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $22.7 million in 2020, $21.3 million in 2021, $17.7 million in 2022, $14.5 million in 2023, $11.2 million in 2024, and $6.8 million in 2025.
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Exit and Disposal Activities |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exit and Disposal Activities | Exit and Disposal Activities Snap-on did not record any costs for exit and disposal activities in the three months ended September 26, 2020. For the nine months ended September 26, 2020, Snap-on recorded costs for exit and disposal activities as follows:
Of the $11.5 million of costs incurred in the nine month period ended September 26, 2020, $11.4 million qualified for accrual treatment. Costs associated with exit and disposal activities in the first nine months of 2020 primarily related to headcount reductions from the ongoing optimization of the company’s cost structure in Europe and various other management and realignment actions. Snap-on’s exit and disposal accrual activity for the third quarter of 2020 is as follows:
As of September 26, 2020, the company expects that of the $10.8 million exit and disposal accrual, approximately $3.0 million will be utilized in the balance of 2020, $7.1 million in 2021 and the remainder thereafter, primarily for longer-term severance payments. Snap-on expects to fund the remaining cash requirements of its exit and disposal activities with available cash on hand, cash flows from operating activities and borrowings under the company’s existing credit facilities. The estimated costs for the exit and disposal activities were based on management’s best business judgement under prevailing circumstances.
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Income Taxes |
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Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.8% in both the first nine months of 2020 and 2019. 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 $0.7 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 $0.8 million over the next 12 months for uncertain tax positions expected to be taken in future tax filings.
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Short-term and Long-term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term and Long-term Debt | Short-term and Long-term Debt Short-term and long-term debt as of September 26, 2020, and December 28, 2019, consisted of the following:
Notes payable and current maturities of long-term debt of $267.9 million as of September 26, 2020, consisted of $250.0 million of 6.125% unsecured notes that mature on September 1, 2021 (the “2021 Notes”), $14.3 million of other notes, and $3.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps. As of 2019 year end, notes payable of $202.9 million included $193.6 million of commercial paper borrowings and $9.3 million of other notes. On April 30, 2020, Snap-on sold, at a discount, $500 million of unsecured 3.10% notes that mature on May 1, 2050 (the “2050 Notes”). Interest on the 2050 Notes accrues at a rate of 3.10% and is paid semi-annually beginning November 1, 2020. Snap-on used the $489.9 million of net proceeds from the sale of the 2050 Notes, reflecting $4.4 million of transaction costs, for general corporate purposes, which may include working capital, capital expenditures and potential acquisitions. Snap-on has an $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 26, 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 -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 26, 2020, the company’s actual ratios of 0.15 and 0.73 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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Financial Instruments |
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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 the fair value of the derivative is recorded in “Notes payable and current maturities of long-term debt” and “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets as of September 26, 2020, and December 28, 2019, respectively. The notional amount of interest rate swaps outstanding and designated as fair value hedges was $100.0 million as of both September 26, 2020 and December 28, 2019. 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. In the second quarter of 2020, Snap-on entered into a $300 million treasury lock to manage changes in interest rates in anticipation of the issuance of fixed rate debt. Snap-on settled the $300 million treasury lock in conjunction with the April 2020 issuance of the 2050 Notes. The $1.4 million gain on the settlement of the treasury lock was recorded in Accumulated OCI and is being amortized over the term of the 2050 Notes and recognized as an adjustment to interest expense on the Condensed Consolidated Statements of Earnings. There were no treasury locks outstanding as of both September 26, 2020, and December 28, 2019. 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 26, 2020, Snap-on had equity forwards in place intended to manage market risk with respect to 98,700 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:
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 and current maturities of long-term debt were 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 and current maturities 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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Pension Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | Pension Plans Snap-on’s net periodic pension cost included the following components:
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 17 for additional information on other income (expense) - net. Snap-on intends to make contributions of $8.7 million to its foreign pension plans and $2.9 million to its domestic pension plans in 2020, as required by law. Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2020.
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Postretirement Health Care Plans |
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Health Care Plans | Postretirement Health Care Plans Snap-on’s net periodic postretirement health care cost included the following components:
The components of net periodic postretirement health care cost are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 17 for additional information on other income (expense) - net.
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Stock-based Compensation and Other Stock Plans |
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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 continue in accordance with their terms. As of September 26, 2020, the 2011 Plan had 1,429,213 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 $5.6 million and $12.5 million for the respective three and nine months ended September 26, 2020, and $4.6 million and $18.7 million for the respective three and nine months ended September 28, 2019. Cash received from stock purchase and option plan exercises during the respective three and nine months ended September 26, 2020, totaled $2.7 million and $16.5 million. 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. The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $1.0 million and $3.3 million for the respective three and nine months ended September 26, 2020, and $1.0 million and $5.6 million for the respective three and nine months ended September 28, 2019. 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 expected annual dividend as a percentage of the market value of our common stock as of the date of grant. 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 26, 2020, and September 28, 2019, using the Black-Scholes valuation model:
A summary of stock option activity as of and for the nine months ended September 26, 2020, is presented below:
The weighted-average grant date fair value of options granted during the nine months ended September 26, 2020, and September 28, 2019, was $22.95 and $29.98, respectively. The intrinsic value of options exercised was $4.0 million and $8.7 million during the respective three and nine months ended September 26, 2020, and $3.9 million and $16.2 million during the respective three and nine months ended September 28, 2019. The fair value of stock options vested was $14.6 million and $15.7 million during the respective nine months ended September 26, 2020, and September 28, 2019. As of September 26, 2020, there was $16.3 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 26, 2020, and September 28, 2019, was $155.34 and $155.92, respectively. PSUs related to 21,184 shares and 32,114 shares were paid out during the respective nine months ended September 26, 2020, and September 28, 2019. Earned PSUs vest and 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 2019 performance, none of the RSUs granted in 2019 were earned. 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; these RSUs vested as of fiscal 2019 year end and were paid out shortly thereafter. Changes to the company’s non-vested performance awards during the nine months ended September 26, 2020, are as follows:
As of September 26, 2020, there was $7.5 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 expected annual dividend as a percentage of the market value of our common stock as of the date of grant (for stock-settled SARs) or reporting date (for cash-settled SARs). 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 26, 2020, and September 28, 2019, using the Black-Scholes valuation model:
Changes to the company’s stock-settled SARs during the nine months ended September 26, 2020, are as follows:
The weighted-average grant date fair value of stock-settled SARs granted during the nine months ended September 26, 2020, and September 28, 2019, was $21.31 and $26.45, respectively. The intrinsic value of stock-settled SARs exercised was zero during both the three and nine months ended September 26, 2020, and $0.1 million during both the three and nine months ended September 28, 2019. The fair value of stock-settled SARs vested was $2.3 million and $2.1 million during the respective nine months ended September 26, 2020, and September 28, 2019. As of September 26, 2020, there was $2.9 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 26, 2020, and September 28, 2019, using the Black-Scholes valuation model:
The intrinsic value of cash-settled SARs exercised was zero and $0.2 million during the respective three and nine months ended September 26, 2020, and zero and $0.5 million during the respective three and nine months ended September 28, 2019. The fair value of cash-settled SARs vested was zero and $0.1 million during the respective nine months ended September 26, 2020, and September 28, 2019. Changes to the company’s non-vested cash-settled SARs during the nine months ended September 26, 2020, are as follows:
As of September 26, 2020, 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 7,380 shares and 7,605 shares of restricted stock to non-employee directors for the respective nine months ended September 26, 2020, and September 28, 2019. The fair value of the restricted stock awards is expensed over a -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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Earnings Per Share |
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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:
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 26, 2020, there were 2,750,149 awards outstanding that were anti-dilutive; as of September 28, 2019, there were 1,223,983 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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Commitments and Contingencies |
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 26, 2020, and September 28, 2019, is as follows:
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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Leases |
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessee Accounting: Supplemental balance sheet information related to leases as of September 26, 2020, and December 28, 2019 is as follows:
Lessor Accounting: Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics and equipment products and it offers financing to franchisees for vehicle leases. Sales-type leases are included in both “Finance receivables - net” and “Long-term finance receivables - net” and also in both “Contract receivables - net” and “Long-term contract receivables - net” on the accompanying Condensed Consolidated Balance Sheets. See Note 4 for further information on finance and contract receivables.
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Leases | Leases Lessee Accounting: Supplemental balance sheet information related to leases as of September 26, 2020, and December 28, 2019 is as follows:
Lessor Accounting: Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics and equipment products and it offers financing to franchisees for vehicle leases. Sales-type leases are included in both “Finance receivables - net” and “Long-term finance receivables - net” and also in both “Contract receivables - net” and “Long-term contract receivables - net” on the accompanying Condensed Consolidated Balance Sheets. See Note 4 for further information on finance and contract receivables.
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Leases | Leases Lessee Accounting: Supplemental balance sheet information related to leases as of September 26, 2020, and December 28, 2019 is as follows:
Lessor Accounting: Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics and equipment products and it offers financing to franchisees for vehicle leases. Sales-type leases are included in both “Finance receivables - net” and “Long-term finance receivables - net” and also in both “Contract receivables - net” and “Long-term contract receivables - net” on the accompanying Condensed Consolidated Balance Sheets. See Note 4 for further information on finance and contract receivables.
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Other Income (Expense) - Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Accumulated Other Comprehensive Income (Loss) |
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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 26, 2020:
The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 26, 2020:
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:
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:
The reclassifications out of Accumulated OCI for the three and nine month periods ended September 26, 2020, and September 28, 2019, are as follows:
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Segments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | SegmentsSnap-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 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 intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results. Financial Data by Segment:
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Subsequent Event |
9 Months Ended |
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Sep. 26, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn September 28, 2020, subsequent to the end of the third quarter, Snap-on acquired substantially all of the assets of AutoCrib, Inc. (“AutoCrib”) for a cash purchase price of approximately $36.0 million. AutoCrib, based in Tustin, California, designs, manufactures and markets tool and asset control solutions for a variety of aerospace, automotive, military, natural resources and general industry operations. For segment reporting purposes, the results of operations and assets of AutoCrib will be included in the Commercial & Industrial Group beginning on the acquisition date. |
Summary of Accounting Policies - (Policies) |
9 Months Ended |
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Sep. 26, 2020 | |
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 2019 Annual Report on Form 10-K for the fiscal year ended December 28, 2019 (“2019 year end”), as updated below. The company’s 2020 fiscal year, which ends on January 2, 2021, will contain 53 weeks of operating results, with the additional week occurring in the fourth quarter. The company’s 2019 fiscal year contained 52 weeks of operating results. Snap-on’s 2020 fiscal third quarter ended on September 26, 2020; the 2019 fiscal third quarter ended on September 28, 2019. The company’s 2020 and 2019 fiscal third quarters each 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 26, 2020, and September 28, 2019, have been made. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.
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Financial services revenue | Financial services revenue: Snap-on generates revenue from various financing programs that include: (i) installment sales and lease contracts arising from franchisees’ customers and Snap-on customers who require financing for the purchase or lease of tools and diagnostic and equipment products on an extended-term payment plan; and (ii) business loans and vehicle leases to franchisees. These financing programs are offered through Snap-on’s wholly owned finance subsidiaries. Financial services revenue consists primarily of interest income on finance and contract receivables and is recognized over the life of the underlying contracts, with interest computed primarily on the average daily balances of the underlying contracts.The decision to finance through Snap-on or another financing source is solely at the election of the customer. When assessing customers for potential financing, Snap-on considers various factors regarding ability to pay, including the customers’ financial condition, past payment experience, and credit bureau and proprietary Snap-on credit model information, as well as the value of the underlying collateral. For finance and contract receivables, Snap-on assesses quantitative and qualitative factors through the use of credit quality indicators consisting primarily of collection experience and related internal metrics. Delinquency is the primary indicator of credit quality for finance and contract receivables. Snap-on conducts monthly reviews of credit and collection performance for both the finance and contract receivable portfolios, focusing on data such as delinquency trends, nonaccrual receivables, and write-off and recovery activity. |
Receivables and allowances for credit losses | Receivables and allowances for credit losses: All trade, finance and contract receivables are reported on the Condensed Consolidated Balance Sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. The amortized costs for finance and contract receivables are the amount originated adjusted for applicable accrued interest and net of deferred fees or costs, net of collections and write-offs. Snap-on maintains allowances for credit losses, which represent an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the company’s ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in each of its receivable portfolios (trade, finance and contract receivables). For trade receivables, Snap-on uses historical loss experience rates by portfolio and applies them to a related aging analysis while also considering customer and/or economic risk where appropriate. For finance receivables, Snap-on uses a vintage loss experience analysis. For contract receivables, a weighted-average remaining maturity method is primarily used. Determination of the proper amount of allowances by portfolio requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings. The allowances take into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, delinquency trends, collection experience, current economic conditions, supportable forecasts, when appropriate, and credit risk characteristics. Snap-on evaluates the credit risk of the customer when extending credit based on a combination of various financial and qualitative factors that may affect its customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau and proprietary Snap-on credit model information, as well as the value of the underlying collateral. Management performs detailed reviews of its receivables on a monthly and/or quarterly basis to assess the adequacy of the allowances and to determine if any impairment has occurred. Monthly reviews of credit and collection performance are conducted for both its finance and contract receivable portfolios focusing on data such as delinquency trends, non-performing assets, and write-off and recovery activity. These reviews allow for the formulation of collection strategies and potential collection policy modifications in response to changing risk profiles in the finance and contract receivable portfolios. A receivable may have credit losses when it is expected that all amounts related to the receivable will not be collected according to the contractual terms of the agreement. Amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. For both finance and contract receivables, net write-offs include the principal amount of losses written off as well as written-off interest and fees, and recourse from franchisees on finance receivables. Recovered interest and fees previously written off are recorded through the allowances for credit losses and increase the allowance. Finance receivables are assessed for write-off when an account becomes 120 days past due and are written off typically within 60 days of asset repossession. Contract receivables related to equipment leases are generally written off when an account becomes 150 days past due, while contract receivables related to franchise finance and van leases are generally written off up to 180 days past the asset return date. For finance and contract receivables, customer bankruptcies are generally written off upon notification that the associated debt is not being reaffirmed or, in any event, no later than 180 days past due. Changes to the allowances for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings. Actual amounts as of the balance sheet dates may be materially different than the amounts reported in future periods due to the uncertainty in the estimation process. Also, future amounts could differ materially from those estimates due to changes in circumstances after the balance sheet date. Snap-on does not believe that its trade, finance or contract receivables represent significant concentrations of credit risk because of the diversified portfolio of individual customers and geographical areas. See Note 4 for further information on receivables and allowances for credit losses.
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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.
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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 10 for further information on financial instruments.
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New Accounting Standards | New Accounting Standards The following new accounting pronouncements were adopted by Snap-on in fiscal year 2020: On December 29, 2019, the beginning of Snap-on’s fiscal year, the company adopted 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. The adoption of this ASU did not have an impact on the company’s Condensed Consolidated Financial Statements or disclosures. On December 29, 2019, the beginning of Snap-on’s fiscal year, the company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The main objective of this ASU is to provide financial statement users with more information about the expected credit losses over the contractual life of financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Snap-on adopted ASU No. 2016-13 under the modified retrospective approach for receivables measured at amortized costs with prior periods reported in accordance with previously applicable guidance. See Note 4 for a discussion about the impact the adoption of this ASU had on the company and further information on credit losses. The following new accounting pronouncement, and related impact on adoption, is being evaluated by the company: In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years; this ASU allows for early adoption in any interim period 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.
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Revenue Recognition - (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table shows the consolidated revenues by revenue source:
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 tables represent external net sales disaggregated by geography, based on the customers’ billing addresses:
The following tables represent external net sales disaggregated by customer type:
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Receivables - (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Effects of ASU 2016-13 Adoption | The effects of adjustments to the December 28, 2019 Condensed Consolidated Balance Sheet as a result of the adoption of ASU No. 2016-13, including an increase in the allowance for credit losses of $8.1 million, were as follows:
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Components of Trade and Other Accounts Receivable | The components of Snap-on’s trade and other accounts receivable as of September 26, 2020, and December 28, 2019, are as follows:
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Components of Finance and Contract Receivables, Current and Beyond One Year | The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and nine months ended September 26, 2020:
The components of Snap-on’s current finance and contract receivables as of September 26, 2020, and December 28, 2019, are as follows:
The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of September 26, 2020, and December 28, 2019, are as follows:
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Schedule of Delinquent and Non-delinquent Finance and Contract Receivables | The amortized cost basis of finance and contract receivables by origination year as of September 26, 2020, are as follows:
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Financing Receivable, Allowance for Credit Loss | The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and nine months ended September 26, 2020, and September 28, 2019:
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Aging of Finance and Contract Receivables | The aging of finance and contract receivables as of September 26, 2020, and December 28, 2019, is as follows:
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Schedule of Finance and Contract Receivables on Nonaccrual Status | The amount of finance and contract receivables on nonaccrual status as of September 26, 2020, and December 28, 2019, is as follows:
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Inventories - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories by Major Classification | Inventories by major classification are as follows:
|
Goodwill and Other Intangible Assets - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 26, 2020, are as follows:
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Other Intangible Assets by Major Class | Additional disclosures related to other intangible assets are as follows:
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Weighted-Average Amortization Period by Major Class | The weighted-average amortization periods related to other intangible assets are as follows:
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Exit and Disposal Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost and Rollforward of Reserve | Snap-on did not record any costs for exit and disposal activities in the three months ended September 26, 2020. For the nine months ended September 26, 2020, Snap-on recorded costs for exit and disposal activities as follows:
Snap-on’s exit and disposal accrual activity for the third quarter of 2020 is as follows:
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Short-term and Long-term Debt - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term and Long-term Debt | Short-term and long-term debt as of September 26, 2020, and December 28, 2019, consisted of the following:
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Financial Instruments - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments Not Approximating Carrying Values in Financial Statements | The fair values of financial instruments that do not approximate the carrying values in the financial statements are as follows:
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Pension Plans - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Cost | Snap-on’s net periodic pension cost included the following components:
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Postretirement Health Care Plans - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Postretirement Health Care Cost | Snap-on’s net periodic postretirement health care cost included the following components:
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Stock-based Compensation and Other Stock Plans - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 26, 2020, and September 28, 2019, using the Black-Scholes valuation model:
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Summary of Stock Option Activity | A summary of stock option activity as of and for the nine months ended September 26, 2020, is presented below:
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Summary of Changes in Non-Vested Performance Awards | Changes to the company’s non-vested performance awards during the nine months ended September 26, 2020, are as follows:
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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 26, 2020, and September 28, 2019, using the 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 26, 2020, and September 28, 2019, using the Black-Scholes valuation model:
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Summary of Changes in SARs | Changes to the company’s stock-settled SARs during the nine months ended September 26, 2020, are as follows:
Changes to the company’s non-vested cash-settled SARs during the nine months ended September 26, 2020, are as follows:
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Earnings Per Share - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Commitments and Contingencies - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 26, 2020, and September 28, 2019, is as follows:
|
Leases - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 26, 2020, and December 28, 2019 is as follows:
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Other Income (Expense) - Net - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Accumulated Other Comprehensive Income (Loss) - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 26, 2020:
The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 26, 2020:
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:
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:
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Reclassifications Out of Accumulated OCI | The reclassifications out of Accumulated OCI for the three and nine month periods ended September 26, 2020, and September 28, 2019, are as follows:
|
Segments - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Segment | Financial Data by Segment:
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Assets by Segment |
|
Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 935.8 | $ 896.2 | $ 2,500.8 | $ 2,758.4 |
Net sales | 1,027.4 | 985.9 | 2,774.4 | 3,028.6 |
Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (134.1) | (141.4) | (378.2) | (418.7) |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,075.7 | 1,043.2 | 2,896.3 | 3,193.5 |
Commercial & Industrial Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 308.4 | 335.3 | 870.2 | 992.8 |
Commercial & Industrial Group | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 308.4 | 335.3 | 870.2 | 992.8 |
Snap-on Tools Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
Snap-on Tools Group | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
Repair Systems & Information Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 317.5 | 322.7 | 877.1 | 999.5 |
Repair Systems & Information Group | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 317.5 | 322.7 | 877.1 | 999.5 |
Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 85.8 | 84.1 | 256.3 | 253.8 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5.8 | 5.6 | 17.3 | 16.4 |
Excluding Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 941.6 | 901.8 | 2,518.1 | 2,774.8 |
Excluding Financial Services | Vehicle service professionals | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 728.2 | 665.6 | 1,912.6 | 2,070.1 |
Excluding Financial Services | All other professionals | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 213.4 | 236.2 | 605.5 | 704.7 |
Excluding Financial Services | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (134.1) | (141.4) | (378.2) | (418.7) |
Excluding Financial Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 941.6 | 901.8 | 2,518.1 | 2,774.8 |
Excluding Financial Services | Commercial & Industrial Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 235.7 | 257.0 | 667.2 | 769.5 |
Excluding Financial Services | Commercial & Industrial Group | Vehicle service professionals | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 22.3 | 20.8 | 61.7 | 64.8 |
Excluding Financial Services | Commercial & Industrial Group | All other professionals | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 213.4 | 236.2 | 605.5 | 704.7 |
Excluding Financial Services | Commercial & Industrial Group | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 72.7 | 78.3 | 203.0 | 223.3 |
Excluding Financial Services | Commercial & Industrial Group | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 308.4 | 335.3 | 870.2 | 992.8 |
Excluding Financial Services | Snap-on Tools Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
Excluding Financial Services | Snap-on Tools Group | Vehicle service professionals | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
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 | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
Excluding Financial Services | Repair Systems & Information Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 256.1 | 259.6 | 701.9 | 804.1 |
Excluding Financial Services | Repair Systems & Information Group | Vehicle service professionals | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 256.1 | 259.6 | 701.9 | 804.1 |
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 | 61.4 | 63.1 | 175.2 | 195.4 |
Excluding Financial Services | Repair Systems & Information Group | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 317.5 | 322.7 | 877.1 | 999.5 |
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 | 679.1 | 651.2 | 1,829.1 | 1,970.8 |
Excluding Financial Services | North America | Commercial & Industrial Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 103.9 | 125.3 | 309.7 | 355.8 |
Excluding Financial Services | North America | Snap-on Tools Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 389.2 | 337.6 | 1,007.6 | 1,039.3 |
Excluding Financial Services | North America | Repair Systems & Information Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 186.0 | 188.3 | 511.8 | 575.7 |
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 | 160.3 | 148.0 | 424.4 | 492.9 |
Excluding Financial Services | Europe | Commercial & Industrial Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 66.8 | 65.1 | 188.8 | 214.8 |
Excluding Financial Services | Europe | Snap-on Tools Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 38.6 | 28.3 | 87.2 | 101.7 |
Excluding Financial Services | Europe | Repair Systems & Information Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 54.9 | 54.6 | 148.4 | 176.4 |
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 | 102.2 | 102.6 | 264.6 | 311.1 |
Excluding Financial Services | All other | Commercial & Industrial Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 65.0 | 66.6 | 168.7 | 198.9 |
Excluding Financial Services | All other | Snap-on Tools Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 22.0 | 19.3 | 54.2 | 60.2 |
Excluding Financial Services | All other | Repair Systems & Information Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15.2 | 16.7 | 41.7 | 52.0 |
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 | 85.8 | 84.1 | 256.3 | 253.8 |
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 | $ 85.8 | $ 84.1 | $ 256.3 | $ 253.8 |
Revenue Recognition - Narrative (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 26, 2020 |
Sep. 26, 2020 |
Dec. 28, 2019 |
|
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 | $ 57.8 | $ 57.8 | $ 65.1 |
Contract with customer, liability, revenue recognized | $ 7.3 | $ 49.7 | |
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% |
Revenue Recognition - Performance Obligations (Details) $ in Millions |
Sep. 26, 2020
USD ($)
|
---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Contractual obligation | $ 215.0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-27 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 15 months |
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, expected timing of satisfaction, period | 2 years |
Revenue, remaining performance obligation, percentage of revenue recognized | 40.00% |
Acquisitions - Narrative (Detail) - USD ($) $ in Millions |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jan. 31, 2020 |
Aug. 07, 2019 |
Apr. 02, 2019 |
Jan. 25, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 28, 2019 |
|
Business Acquisition [Line Items] | |||||||
Goodwill | $ 938.5 | $ 913.8 | |||||
Payment to acquire business, net of cash acquired | 6.1 | $ 38.9 | |||||
Sigmavision | |||||||
Business Acquisition [Line Items] | |||||||
Cash purchase price of acquisition | $ 5.9 | ||||||
Goodwill | 5.6 | ||||||
Cognitran Limited | |||||||
Business Acquisition [Line Items] | |||||||
Cash purchase price of acquisition | $ 30.6 | ||||||
Goodwill | 14.5 | ||||||
Payment to acquire business, net of cash acquired | $ 29.6 | ||||||
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 |
Receivables - Narrative (Detail) $ in Millions |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 26, 2020
USD ($)
portfolioSegment
|
Jun. 27, 2020
USD ($)
|
Dec. 28, 2019
USD ($)
|
Sep. 28, 2019
USD ($)
|
Jun. 29, 2019
USD ($)
|
Dec. 29, 2018
USD ($)
|
|
Financing Receivable, Past Due [Line Items] | ||||||
Increase in allowance for credit losses | $ 67.5 | |||||
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 | |||||
Number of portfolio segments | portfolioSegment | 2 | |||||
Minimum period past due to consider receivable balances as delinquent (in days) | 30 days | |||||
Minimum period past due to declare receivable as non-accrual status (in days) | 90 days | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Increase in allowance for credit losses | 8.1 | |||||
Finance Receivables | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Increase in allowance for credit losses | $ 75.0 | $ 72.5 | 61.9 | $ 61.1 | $ 60.9 | $ 61.4 |
Financing receivable, threshold period past due, writeoff (in days) | 120 days | |||||
Financing receivable, threshold period after asset repossession, writeoff (in days) | 60 days | |||||
Contract Receivables | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Increase in allowance for credit losses | $ 9.0 | $ 9.1 | $ 5.6 | $ 6.0 | $ 5.0 | $ 4.3 |
Contract Receivables | Non-Franchisee | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing receivable, threshold period past due, writeoff (in days) | 150 days | |||||
Contract Receivables | Franchisee | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing receivable, threshold period past due, writeoff (in days) | 180 days | |||||
Financing Receivables And Contract Receivables, Customer Bankruptcy | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing receivable, threshold period past due, writeoff (in days) | 180 days |
Receivables - Summary of Effects of ASU 2016-13 Adoption (Details) - USD ($) $ in Millions |
Sep. 26, 2020 |
Jun. 27, 2020 |
Dec. 28, 2019 |
Sep. 28, 2019 |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|---|---|---|---|
Current assets: | ||||||
Allowance for credit losses, current | $ (26.1) | $ (21.2) | ||||
Long-term assets | ||||||
Allowance for credit loss, noncurrent | (57.9) | (46.3) | ||||
Total allowances for credit losses | (67.5) | |||||
Deferred income tax assets | 47.3 | 52.3 | ||||
Equity | ||||||
Retained earnings | 5,014.9 | 4,779.7 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||||
Long-term assets | ||||||
Total allowances for credit losses | (8.1) | |||||
Deferred income tax assets | 2.0 | |||||
Equity | ||||||
Retained earnings | (6.1) | |||||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
Long-term assets | ||||||
Total allowances for credit losses | (75.6) | |||||
Deferred income tax assets | 54.3 | |||||
Equity | ||||||
Retained earnings | 4,773.6 | |||||
Finance Receivables | ||||||
Current assets: | ||||||
Allowance for credit losses, current | (23.8) | (19.7) | ||||
Long-term assets | ||||||
Allowance for credit loss, noncurrent | (51.2) | (42.2) | ||||
Total allowances for credit losses | (75.0) | $ (72.5) | (61.9) | $ (61.1) | $ (60.9) | $ (61.4) |
Finance Receivables | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||||
Current assets: | ||||||
Allowance for credit losses, current | (1.7) | |||||
Long-term assets | ||||||
Allowance for credit loss, noncurrent | (3.5) | |||||
Finance Receivables | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
Current assets: | ||||||
Allowance for credit losses, current | (21.4) | |||||
Long-term assets | ||||||
Allowance for credit loss, noncurrent | (45.7) | |||||
Contract Receivables | ||||||
Current assets: | ||||||
Allowance for credit losses, current | (2.3) | (1.5) | ||||
Long-term assets | ||||||
Allowance for credit loss, noncurrent | (6.7) | (4.1) | ||||
Total allowances for credit losses | $ (9.0) | $ (9.1) | (5.6) | $ (6.0) | $ (5.0) | $ (4.3) |
Contract Receivables | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||||
Current assets: | ||||||
Allowance for credit losses, current | (0.5) | |||||
Long-term assets | ||||||
Allowance for credit loss, noncurrent | (2.4) | |||||
Contract Receivables | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
Current assets: | ||||||
Allowance for credit losses, current | (2.0) | |||||
Long-term assets | ||||||
Allowance for credit loss, noncurrent | $ (6.5) |
Receivables - Components of Trade and Other Accounts Receivable (Details) - USD ($) $ in Millions |
Sep. 26, 2020 |
Jun. 27, 2020 |
Dec. 28, 2019 |
---|---|---|---|
Receivables [Abstract] | |||
Trade and other accounts receivable | $ 642.4 | $ 715.5 | |
Allowances for credit losses | (23.5) | $ (23.6) | (20.9) |
Total trade and other accounts receivable – net | $ 618.9 | $ 694.6 |
Receivables - Trade and Other Receivables Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 26, 2020 |
Sep. 26, 2020 |
|
Allowances for credit losses: | ||
Beginning of period | $ 23.6 | $ 20.9 |
Provision for credit losses | 4.1 | 13.2 |
Charge-offs | (4.5) | (10.0) |
Recoveries | 0.0 | 0.0 |
Currency translation | 0.3 | (0.6) |
End of period | $ 23.5 | $ 23.5 |
Receivables - Components of Current Finance and Contract Receivables (Details) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | $ 671.5 | $ 652.0 |
Allowance for credit losses, current | (26.1) | (21.2) |
Total current finance and contract receivables – net | 645.4 | 630.8 |
Finance Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | 555.9 | 549.8 |
Allowance for credit losses, current | (23.8) | (19.7) |
Total current finance and contract receivables – net | 532.1 | 530.1 |
Finance Receivables | Finance and Contract Installment Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | 531.5 | 511.9 |
Allowance for credit losses, current | (23.4) | (19.2) |
Finance Receivables | Finance and Contract Lease Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unearned finance charges, current | 6.0 | 11.7 |
Finance and contract receivables, current | 24.4 | 37.9 |
Allowance for credit losses, current | (0.4) | (0.5) |
Contract Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | 115.6 | 102.2 |
Allowance for credit losses, current | (2.3) | (1.5) |
Total current finance and contract receivables – net | 113.3 | 100.7 |
Contract Receivables | Finance and Contract Installment Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | 62.2 | 50.8 |
Allowance for credit losses, current | (1.3) | (0.5) |
Contract Receivables | Finance and Contract Lease Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unearned finance charges, current | 17.9 | 18.2 |
Finance and contract receivables, current | 53.4 | 51.4 |
Allowance for credit losses, current | $ (1.0) | $ (1.0) |
Receivables - Components of Finance and Contract Receivables Beyond One Year (Details) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | $ 1,547.4 | $ 1,509.9 |
Allowance for credit loss, noncurrent | (57.9) | (46.3) |
Total long-term finance and contract receivables – net | 1,489.5 | 1,463.6 |
Finance Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | 1,173.5 | 1,145.7 |
Allowance for credit loss, noncurrent | (51.2) | (42.2) |
Total long-term finance and contract receivables – net | 1,122.3 | 1,103.5 |
Finance Receivables | Finance and Contract Installment Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | 1,152.9 | 1,106.0 |
Allowance for credit loss, noncurrent | (50.9) | (41.6) |
Finance Receivables | Finance and Contract Lease Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unearned finance charges, noncurrent | 3.6 | 8.2 |
Long-term finance and contract receivables | 20.6 | 39.7 |
Allowance for credit loss, noncurrent | (0.3) | (0.6) |
Contract Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | 373.9 | 364.2 |
Allowance for credit loss, noncurrent | (6.7) | (4.1) |
Total long-term finance and contract receivables – net | 367.2 | 360.1 |
Contract Receivables | Finance and Contract Installment Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | 198.2 | 195.5 |
Allowance for credit loss, noncurrent | (3.1) | (1.8) |
Contract Receivables | Finance and Contract Lease Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unearned finance charges, noncurrent | 29.3 | 29.4 |
Long-term finance and contract receivables | 175.7 | 168.7 |
Allowance for credit loss, noncurrent | $ (3.6) | $ (2.3) |
Receivables - Schedule of Performing and Nonperforming Finance and Contract Receivables (Details) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Finance Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 979.7 | |
2019 | 459.6 | |
2018 | 190.3 | |
2017 | 75.0 | |
2016 | 22.6 | |
Prior | 2.2 | |
Total | 1,729.4 | $ 1,695.5 |
Contract Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 151.1 | |
2019 | 133.1 | |
2018 | 91.8 | |
2017 | 57.7 | |
2016 | 28.9 | |
Prior | 26.9 | |
Total | 489.5 | $ 466.4 |
Delinquent | Finance Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 7.7 | |
2019 | 19.0 | |
2018 | 10.7 | |
2017 | 5.7 | |
2016 | 2.3 | |
Prior | 0.4 | |
Total | 45.8 | |
Delinquent | Contract Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0.3 | |
2019 | 0.7 | |
2018 | 0.5 | |
2017 | 0.6 | |
2016 | 0.5 | |
Prior | 0.5 | |
Total | 3.1 | |
Non-delinquent | Finance Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 972.0 | |
2019 | 440.6 | |
2018 | 179.6 | |
2017 | 69.3 | |
2016 | 20.3 | |
Prior | 1.8 | |
Total | 1,683.6 | |
Non-delinquent | Contract Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 150.8 | |
2019 | 132.4 | |
2018 | 91.3 | |
2017 | 57.1 | |
2016 | 28.4 | |
Prior | 26.4 | |
Total | $ 486.4 |
Receivables - Finance and Contract Receivables Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Allowances for credit losses: | ||||
Beginning of period | $ 67.5 | |||
Finance Receivables | ||||
Allowances for credit losses: | ||||
Beginning of period | $ 72.5 | $ 60.9 | 61.9 | $ 61.4 |
Impact of adopting ASU No. 2016-13 | 0.0 | 5.2 | ||
Provision for credit losses | 9.8 | 11.4 | 41.2 | 35.8 |
Charge-offs | (9.5) | (13.0) | (39.6) | (41.9) |
Recoveries | 2.1 | 1.9 | 6.3 | 5.9 |
Currency translation | 0.1 | (0.1) | 0.0 | (0.1) |
End of period | 75.0 | 61.1 | 75.0 | 61.1 |
Contract Receivables | ||||
Allowances for credit losses: | ||||
Beginning of period | 9.1 | 5.0 | 5.6 | 4.3 |
Impact of adopting ASU No. 2016-13 | 0.0 | 2.9 | ||
Provision for credit losses | 0.5 | 1.9 | 3.1 | 4.0 |
Charge-offs | (0.7) | (1.0) | (2.9) | (2.7) |
Recoveries | 0.1 | 0.0 | 0.3 | 0.3 |
Currency translation | 0.0 | 0.1 | 0.0 | 0.1 |
End of period | $ 9.0 | $ 6.0 | $ 9.0 | $ 6.0 |
Receivables - Aging of Finance and Contract Receivables (Details) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Finance Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 45.8 | $ 53.1 |
Total Not Past Due | 1,683.6 | 1,642.4 |
Total | 1,729.4 | 1,695.5 |
Greater Than 90 Days Past Due and Accruing | 13.9 | 17.2 |
Finance Receivables | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 17.8 | 19.7 |
Finance Receivables | 60-90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11.2 | 12.0 |
Finance Receivables | Greater Than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 16.8 | 21.4 |
Contract Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3.1 | 3.9 |
Total Not Past Due | 486.4 | 462.5 |
Total | 489.5 | 466.4 |
Greater Than 90 Days Past Due and Accruing | 0.3 | 0.5 |
Contract Receivables | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1.3 | 1.5 |
Contract Receivables | 60-90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0.5 | 0.9 |
Contract Receivables | Greater Than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 1.3 | $ 1.5 |
Receivables - Schedule of Finance and Contract Receivables on Nonaccrual Status (Details) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Finance Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 9.8 | $ 12.2 |
Contract Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 2.5 | $ 2.2 |
Inventories - Schedule of Inventories by Major Classification (Detail) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 664.8 | $ 661.0 |
Work in progress | 59.3 | 57.1 |
Raw materials | 124.5 | 126.8 |
Total FIFO value | 848.6 | 844.9 |
Excess of current cost over LIFO cost | (84.2) | (84.5) |
Total inventories – net | $ 764.4 | $ 760.4 |
Inventories - Narrative (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 28, 2019 |
|
Geographic Valuation Methodologies Of Inventory [Line Items] | |||||
Percentage of FIFO Inventory | 56.00% | 56.00% | 58.00% | ||
Effect of LIFO inventory liquidation on income | $ 0 | $ 0 | $ 0 | $ 0 | |
United States | |||||
Geographic Valuation Methodologies Of Inventory [Line Items] | |||||
Percentage of FIFO Inventory | 29.00% | 29.00% | |||
Percentage of LIFO Inventory | 71.00% | 71.00% |
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions |
9 Months Ended |
---|---|
Sep. 26, 2020
USD ($)
| |
Goodwill [Roll Forward] | |
Balance as of December 28, 2019 | $ 913.8 |
Currency translation | 16.0 |
Acquisitions and related adjustments | 8.7 |
Balance as of June 27, 2020 | 938.5 |
Commercial & Industrial Group | |
Goodwill [Roll Forward] | |
Balance as of December 28, 2019 | 286.2 |
Currency translation | 11.3 |
Acquisitions and related adjustments | 0.0 |
Balance as of June 27, 2020 | 297.5 |
Snap-on Tools Group | |
Goodwill [Roll Forward] | |
Balance as of December 28, 2019 | 12.5 |
Currency translation | 0.0 |
Acquisitions and related adjustments | 0.0 |
Balance as of June 27, 2020 | 12.5 |
Repair Systems & Information Group | |
Goodwill [Roll Forward] | |
Balance as of December 28, 2019 | 615.1 |
Currency translation | 4.7 |
Acquisitions and related adjustments | 8.7 |
Balance as of June 27, 2020 | $ 628.5 |
Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 28, 2019 |
|
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 938,500,000 | $ 938,500,000 | $ 913,800,000 | ||
Accumulated impairment losses | 0 | $ 0 | |||
Weighted-average amortization period (in years) | 11 years | ||||
Aggregate amortization expense | 5,800,000 | $ 5,500,000 | $ 17,200,000 | $ 16,300,000 | |
Estimated annual amortization expense for fiscal period 2020 | 22,700,000 | 22,700,000 | |||
Estimated annual amortization expense for fiscal period 2021 | 21,300,000 | 21,300,000 | |||
Estimated annual amortization expense for fiscal period 2022 | 17,700,000 | 17,700,000 | |||
Estimated annual amortization expense for fiscal period 2023 | 14,500,000 | 14,500,000 | |||
Estimated annual amortization expense for fiscal period 2024 | 11,200,000 | 11,200,000 | |||
Estimated annual amortization expense for fiscal period 2025 | 6,800,000 | 6,800,000 | |||
Sigmavision | |||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |||||
Goodwill | 5,600,000 | 5,600,000 | |||
Cognitran Limited | |||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |||||
Goodwill | 14,500,000 | $ 14,500,000 | |||
Customer relationships | |||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |||||
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 | ||||
Repair Systems & Information Group | |||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |||||
Goodwill | 628,500,000 | $ 628,500,000 | $ 615,100,000 | ||
Repair Systems & Information Group | Sigmavision | |||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 5,600,000 | 5,600,000 | |||
Repair Systems & Information Group | Cognitran Limited | |||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |||||
Goodwill, purchase accounting adjustments | $ 3,100,000 |
Goodwill and Other Intangible Assets - Other Intangible Assets by Major Class (Detail) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 425.1 | $ 420.0 |
Non-amortized trademarks | 116.8 | 115.0 |
Total other intangible assets | 541.9 | 535.0 |
Accumulated Amortization | (300.3) | (291.1) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 183.5 | 182.9 |
Accumulated Amortization | (125.8) | (117.9) |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 19.7 | 19.8 |
Accumulated Amortization | (19.2) | (18.9) |
Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 169.1 | 168.0 |
Accumulated Amortization | (124.8) | (125.4) |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 41.2 | 38.5 |
Accumulated Amortization | (24.6) | (23.7) |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3.8 | 3.5 |
Accumulated Amortization | (2.2) | (2.1) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 7.8 | 7.3 |
Accumulated Amortization | $ (3.7) | $ (3.1) |
Goodwill and Other Intangible Assets - Weighted-Average Amortization Period by Major Class (Detail) |
9 Months Ended |
---|---|
Sep. 26, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average amortization period (in years) | 11 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) | 2 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 |
Exit and Disposal Activities - Summary of Exit and Disposal Activities (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 26, 2020 |
Sep. 26, 2020 |
|
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | $ 0.0 | $ 11.5 |
Commercial & Industrial Group | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | 6.4 | |
Repair Systems & Information Group | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | 4.5 | |
Snap-on Tools Group | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | 0.6 | |
Cost of goods sold: | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | 7.1 | |
Cost of goods sold: | Commercial & Industrial Group | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | 6.4 | |
Cost of goods sold: | Repair Systems & Information Group | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | 0.7 | |
Operating Expenses: | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | 4.4 | |
Operating Expenses: | Repair Systems & Information Group | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | 3.8 | |
Operating Expenses: | Snap-on Tools Group | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and disposal costs | $ 0.6 |
Exit and Disposal Activities - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|---|
Jan. 02, 2021 |
Sep. 26, 2020 |
Jun. 27, 2020 |
Sep. 26, 2020 |
Jan. 01, 2022 |
Dec. 28, 2019 |
|
Restructuring Cost and Reserve [Line Items] | ||||||
Exit and disposal costs | $ 0.0 | $ 11.5 | ||||
Provision | 0.0 | $ 11.4 | 11.4 | |||
Restructuring reserve | $ 10.8 | $ 11.4 | $ 10.8 | $ 0.0 | ||
Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit and disposal costs | $ 3.0 | $ 7.1 |
Exit and Disposal Activities - Restructuring Accrual Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended |
---|---|---|---|
Sep. 26, 2020 |
Jun. 27, 2020 |
Sep. 26, 2020 |
|
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 11.4 | $ 0.0 | $ 0.0 |
Provision | 0.0 | 11.4 | 11.4 |
Usage | (0.6) | 0.0 | |
Restructuring reserve, ending balance | 10.8 | 11.4 | 10.8 |
Commercial & Industrial Group | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 6.4 | 0.0 | 0.0 |
Provision | 0.0 | 6.4 | |
Usage | (0.1) | 0.0 | |
Restructuring reserve, ending balance | 6.3 | 6.4 | 6.3 |
Snap-on Tools Group | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0.6 | 0.0 | 0.0 |
Provision | 0.0 | 0.6 | |
Usage | (0.2) | 0.0 | |
Restructuring reserve, ending balance | 0.4 | 0.6 | 0.4 |
Repair Systems & Information Group | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 4.4 | 0.0 | 0.0 |
Provision | 0.0 | 4.4 | |
Usage | (0.3) | 0.0 | |
Restructuring reserve, ending balance | $ 4.1 | $ 4.4 | $ 4.1 |
Income Taxes - Narrative (Detail) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Income Tax [Line Items] | ||
Effective income tax rate | 23.80% | 23.80% |
Minimum | ||
Income Tax [Line Items] | ||
Decrease in unrecognized tax benefits | $ 0 | |
Increase in unrecognized tax benefits | 0 | |
Maximum | ||
Income Tax [Line Items] | ||
Decrease in unrecognized tax benefits | 700,000 | |
Increase in unrecognized tax benefits | $ 800,000 |
Short-term and Long-term Debt - Summary (Detail) - USD ($) $ in Millions |
Sep. 26, 2020 |
Apr. 30, 2020 |
Dec. 28, 2019 |
---|---|---|---|
Schedule Of Debt Instruments [Line Items] | |||
Long term debt | $ 1,449.7 | $ 1,149.8 | |
Less: notes payable and current maturities of long-term debt | |||
Current maturities of long-term debt | (250.0) | 0.0 | |
Total current debt | (267.9) | (202.9) | |
Total long-term debt | 1,181.8 | 946.9 | |
Commercial paper borrowings | |||
Less: notes payable and current maturities of long-term debt | |||
Short-term debt | 0.0 | (193.6) | |
Other notes | |||
Less: notes payable and current maturities of long-term debt | |||
Short-term debt | (17.9) | (9.3) | |
Other Debt | |||
Schedule Of Debt Instruments [Line Items] | |||
Long term debt | $ (0.3) | 199.8 | |
6.125% unsecured notes due 2021 | |||
Schedule Of Debt Instruments [Line Items] | |||
Unsecured notes, interest rate | 6.125% | ||
6.125% unsecured notes due 2021 | Unsecured Debt | |||
Schedule Of Debt Instruments [Line Items] | |||
Long term debt | $ 250.0 | 250.0 | |
3.25% unsecured notes due 2027 | |||
Schedule Of Debt Instruments [Line Items] | |||
Unsecured notes, interest rate | 3.25% | ||
3.25% unsecured notes due 2027 | Unsecured Debt | |||
Schedule Of Debt Instruments [Line Items] | |||
Long term debt | $ 300.0 | 300.0 | |
4.10% unsecured notes due 2048 | |||
Schedule Of Debt Instruments [Line Items] | |||
Unsecured notes, interest rate | 4.10% | ||
4.10% unsecured notes due 2048 | Unsecured Debt | |||
Schedule Of Debt Instruments [Line Items] | |||
Long term debt | $ 400.0 | 400.0 | |
3.10% unsecured notes due 2050 | |||
Schedule Of Debt Instruments [Line Items] | |||
Unsecured notes, interest rate | 3.10% | ||
3.10% unsecured notes due 2050 | Unsecured Debt | |||
Schedule Of Debt Instruments [Line Items] | |||
Unsecured notes, interest rate | 3.10% | ||
Long term debt | $ 500.0 | $ 0.0 |
Short-term and Long-term Debt - Narrative (Detail) |
9 Months Ended | ||||
---|---|---|---|---|---|
Apr. 30, 2020
USD ($)
|
Sep. 26, 2020
USD ($)
revision
|
Sep. 28, 2019
USD ($)
|
Dec. 28, 2019
USD ($)
|
Sep. 16, 2019
USD ($)
|
|
Schedule Of Debt Instruments [Line Items] | |||||
Notes payable and current maturities of long-term debt | $ 267,900,000 | $ 202,900,000 | |||
Commercial paper outstanding | 193,600,000 | ||||
Other notes payable | $ 9,300,000 | ||||
Proceeds from issuance of long-term debt | 489,900,000 | $ 0 | |||
Other notes | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Short-term debt | 14,300,000 | ||||
Note Payable, Debt Amortization Costs And Fair Value Adjustments Of Interest Rate Swaps | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Short-term debt | $ 3,600,000 | ||||
6.125% unsecured notes due 2021 | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Unsecured notes, interest rate | 6.125% | ||||
6.125% unsecured notes due 2021 | Unsecured Debt | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Debt instrument, face amount | $ 250,000,000.0 | ||||
3.10% unsecured notes due 2050 | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Unsecured notes, interest rate | 3.10% | ||||
3.10% unsecured notes due 2050 | Unsecured Debt | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
Unsecured notes, interest rate | 3.10% | ||||
Proceeds from issuance of long-term debt | $ 489,900,000 | ||||
Payments of financing costs | $ 4,400,000 | ||||
Five-year Multi-Currency Revolving Credit Facility | Revolving Credit Facility | Line of Credit | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Revolving credit facility, amount available | $ 800,000,000 | ||||
Credit Facility borrowings | $ 0 | ||||
Number of allowed revisions to debt ratios | revision | 2 | ||||
Debt maturity, term | 5 years | ||||
Actual debt-to-capital ratio | 0.15 | ||||
Actual debt-to-income ratio | 0.73 | ||||
Five-year Multi-Currency Revolving Credit Facility | Revolving Credit Facility | Maximum | Line of Credit | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Maximum limit of required debt-to-capital ratio | 0.60 | ||||
Maximum limit of required debt-to-income ratio | 3.50 | ||||
Five-year Multi-Currency Revolving Credit Facility | Revolving Credit Facility | Maximum | Material Acquisition | Line of Credit | |||||
Schedule Of Debt Instruments [Line Items] | |||||
Maximum limit of required debt-to-capital ratio | 0.65 | ||||
Maximum limit of required debt-to-income ratio | 4.00 |
Financial Instruments - Narrative (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 26, 2020 |
Jun. 27, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 28, 2019 |
|
Investment Holdings [Line Items] | ||||||
Other comprehensive income before reclassifications | $ 0 | $ 0 | $ 1,400,000 | $ 0 | ||
Equity Forwards | ||||||
Investment Holdings [Line Items] | ||||||
Equity forwards in place of common stock associated with its deferred compensation plans (in shares) | 98,700 | 98,700 | ||||
Treasury locks | ||||||
Investment Holdings [Line Items] | ||||||
Treasury lock | $ 300,000,000 | |||||
Other comprehensive income before reclassifications | $ 1,400,000 | |||||
Treasury locks outstanding | $ 0 | $ 0 | $ 0 | |||
Fair Value Hedging | ||||||
Investment Holdings [Line Items] | ||||||
Notional amount of interest rate swaps outstanding and designated as fair value hedges | $ 100,000,000.0 | $ 100,000,000.0 | $ 100,000,000.0 |
Financial Instruments - Fair Values of Financial Instruments Not Approximating Carrying Values in Financial Statements (Detail) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt and notes payable and current maturities of long-term debt | $ 1,449.7 | $ 1,149.8 |
Carrying Value | Finance Receivables | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance and contract receivables, after allowance for credit loss | 1,654.4 | 1,633.6 |
Carrying Value | Contract Receivables | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance and contract receivables, after allowance for credit loss | 480.5 | 460.8 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt and notes payable and current maturities of long-term debt | 1,619.4 | 1,238.8 |
Fair Value | Finance Receivables | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance and contract receivables, after allowance for credit loss | 2,007.4 | 1,920.6 |
Fair Value | Contract Receivables | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance and contract receivables, after allowance for credit loss | $ 536.3 | $ 505.5 |
Pension Plans - Net Periodic Pension Cost (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6.7 | $ 5.9 | $ 20.2 | $ 17.7 |
Interest cost | 12.2 | 14.1 | 36.6 | 42.3 |
Expected return on plan assets | (23.7) | (22.8) | (71.1) | (68.3) |
Amortization of unrecognized loss | 8.7 | 6.3 | 25.9 | 18.8 |
Amortization of prior service credit | 0.0 | (0.2) | 0.0 | (0.6) |
Net periodic cost | $ 3.9 | $ 3.3 | $ 11.6 | $ 9.9 |
Pension Plans - Narrative (Detail) $ in Millions |
Sep. 26, 2020
USD ($)
|
---|---|
Foreign Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future employer contributions | $ 8.7 |
United States Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future employer contributions | $ 2.9 |
Postretirement Health Care Plans - Net Periodic Postretirement Health Care Cost (Detail) - Postretirement Health Coverage - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Postretirement Health Care Plans [Line Items] | ||||
Interest cost | $ 0.4 | $ 0.4 | $ 1.1 | $ 1.4 |
Expected return on plan assets | (0.2) | (0.1) | (0.5) | (0.5) |
Amortization of unrecognized gain | 0.0 | (0.2) | 0.0 | (0.6) |
Net periodic cost | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.3 |
Stock-based Compensation and Other Stock Plans - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net stock-based compensation expense | $ 5.6 | $ 4.6 | $ 12.5 | $ 18.7 |
Cash received from stock purchase and option plan exercises | 2.7 | 1.6 | 16.5 | 26.2 |
Tax benefit realized from exercise and vesting of share-based payment arrangements | $ 1.0 | $ 1.0 | $ 3.3 | $ 5.6 |
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) | 1,429,213 | 1,429,213 |
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. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
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) | $ 22.95 | $ 29.98 | ||
Intrinsic value of stock exercised | $ 4.0 | $ 3.9 | $ 8.7 | $ 16.2 |
Fair value of stock vested | 14.6 | $ 15.7 | ||
Unrecognized compensation cost related to non-vested award | $ 16.3 | $ 16.3 | ||
Cost expected to be recognized over weighted-average period, in years | 1 year 8 months 12 days |
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. 26, 2020 |
Sep. 28, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 6 months 10 days | 5 years 6 months 10 days |
Expected volatility factor | 21.67% | 21.30% |
Expected dividend yield | 2.78% | 1.79% |
Risk-free interest rate | 1.50% | 2.54% |
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. 26, 2020
USD ($)
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 3,114 |
Granted (in shares) | shares | 459 |
Exercised (in shares) | shares | (106) |
Forfeited or expired (in shares) | shares | (17) |
Ending balance (in shares) | shares | 3,450 |
Exercisable at September 26, 2020 (in shares) | shares | 2,545 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 135.60 |
Granted (in dollars per share) | $ / shares | 155.34 |
Exercised (in dollars per share) | $ / shares | 63.43 |
Forfeited or expired (in dollars per share) | $ / shares | 160.03 |
Ending balance (in dollars per share) | $ / shares | 140.33 |
Exercisable at September 26, 2020 (in dollars per share) | $ / shares | $ 134.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | |
Outstanding, remaining contractual term (in years) | 6 years |
Exercisable, remaining contractual term (in years) | 5 years |
Outstanding, aggregate intrinsic value | $ | $ 43.3 |
Exercisable, aggregate intrinsic value | $ | $ 43.3 |
Stock-based Compensation and Other Stock Plans - Performance Awards Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 28, 2019 |
Dec. 29, 2018 |
Dec. 30, 2017 |
|
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) | $ 155.34 | $ 155.92 | |||
Performance awards shares paid out (in shares) | 21,184 | 32,114 | |||
Unrecognized compensation cost related to non-vested award | $ 7.5 | ||||
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) | 0 | 33,170 | 13,648 |
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. 26, 2020
$ / 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 | 98 |
Granted (in shares) | shares | 82 |
Vested (in shares) | shares | 0 |
Cancellations and other (in shares) | shares | (74) |
Ending balance (in shares) | shares | 106 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 158.94 |
Granted (in dollars per share) | $ / shares | 155.34 |
Vested (in dollars per share) | $ / shares | 0 |
Cancellations and other (in dollars per share) | $ / shares | 157.49 |
Ending balance (in dollars per share) | $ / shares | $ 157.17 |
Stock-based Compensation and Other Stock Plans - Stock Appreciation Rights Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Stock Appreciation Rights (SARs) | ||||
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) | $ 21.63 | |||
Intrinsic value of stock exercised | $ 0 | $ 0 | $ 200,000 | $ 500,000 |
Fair value of stock vested | 0 | $ 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) | $ 21.31 | $ 26.45 | ||
Intrinsic value of stock exercised | 0 | $ 100,000 | $ 0 | $ 100,000 |
Fair value of stock vested | 2,300,000 | $ 2,100,000 | ||
Unrecognized compensation cost related to non-vested award | $ 2,900,000 | $ 2,900,000 | ||
Cost expected to be recognized over weighted-average period, in years | 1 year 8 months 12 days |
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. 26, 2020 |
Sep. 28, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 9 months | 3 years 7 months 24 days |
Expected volatility factor | 22.50% | 22.60% |
Expected dividend yield | 2.78% | 1.81% |
Risk-free interest rate | 1.42% | 2.48% |
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. 26, 2020
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 | 450 |
Granted (in shares) | shares | 92 |
Exercised (in shares) | shares | (1) |
Forfeited or expired (in shares) | shares | (6) |
Ending balance (in shares) | shares | 535 |
Exercisable at September 26, 2020 (in shares) | shares | 355 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 149.18 |
Granted (in dollars per share) | $ / shares | 155.34 |
Exercised (in dollars per share) | $ / shares | 94.93 |
Forfeited or expired (in dollars per share) | $ / shares | 130.68 |
Ending balance (in dollars per share) | $ / shares | 150.56 |
Exercisable at September 26, 2020 (in dollars per share) | $ / shares | $ 147.56 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | |
Outstanding, remaining contractual term | 6 years 9 months 18 days |
Outstanding, aggregate intrinsic value | $ | $ 2.1 |
Exercisable, remaining contractual term | 5 years 9 months 18 days |
Exercisable, aggregate intrinsic value | $ | $ 2.1 |
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) - Stock Appreciation Rights (SARs) |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 2 months 8 days | 3 years 1 month 2 days |
Expected volatility factor | 33.08% | 23.36% |
Expected dividend yield | 3.04% | 1.94% |
Risk-free interest rate | 0.15% | 1.58% |
Stock-based Compensation and Other Stock Plans - Summary of Changes in Non-Vested Cash-Settled SARs (Details) - Stock Appreciation Rights (SARs) shares in Thousands |
9 Months Ended |
---|---|
Sep. 26, 2020
$ / 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 | 2 |
Granted (in shares) | shares | 1 |
Vested (in shares) | shares | (1) |
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 | |
Beginning balance (in dollars per share) | $ / shares | $ 25.96 |
Granted (in dollars per share) | $ / shares | 21.63 |
Vested (in dollars per share) | $ / shares | 18.16 |
Ending balance (in dollars per share) | $ / shares | $ 20.81 |
Stock-based Compensation and Other Stock Plans - Restricted Stock Awards Narrative (Details) - Restricted Stock - Non Employee Directors - shares |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 7,380 | 7,605 |
Vesting period | 1 year |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding (in shares) | 54.3 | 55.0 | 54.4 | 55.2 |
Effect of dilutive securities (in shares) | 0.5 | 0.7 | 0.5 | 0.8 |
Weighted-average common shares outstanding, diluted (in shares) | 54.8 | 55.7 | 54.9 | 56.0 |
Earnings Per Share - Narrative (Detail) - shares |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Stock-Settled SARs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding options or stock settled SARs (in shares) | 2,750,149 | 1,223,983 |
Commitments and Contingencies - Summary of Product Warranty Accrual Activity (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Beginning of period | $ 17.2 | $ 17.8 | $ 17.3 | $ 17.1 |
Additions | 4.6 | 3.8 | 10.6 | 12.5 |
Usage | (4.5) | (4.6) | (10.6) | (12.6) |
End of period | $ 17.3 | $ 17.0 | $ 17.3 | $ 17.0 |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Finance leases: | ||
Property and equipment - gross | $ 10.0 | $ 9.2 |
Accumulated depreciation and amortization | (2.8) | (1.5) |
Property and equipment - net | 7.2 | 7.7 |
Other accrued liabilities | 2.7 | 2.8 |
Other long-term liabilities | 8.2 | 10.0 |
Total finance lease liabilities | 10.9 | 12.8 |
Operating leases: | ||
Operating lease right-of-use assets | 51.0 | 55.6 |
Other accrued liabilities | 18.8 | 19.5 |
Operating lease liabilities | 33.6 | 37.5 |
Total operating lease liabilities | $ 52.4 | $ 57.0 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent |
Other Income (Expense) - Net - Computation of Other Income (Expense) - Net (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Other Income and Expenses [Abstract] | ||||
Interest income | $ 0.5 | $ 0.4 | $ 1.2 | $ 1.1 |
Net foreign exchange loss | (0.4) | (0.2) | (3.0) | (2.7) |
Net periodic pension and postretirement benefits – non-service | 2.6 | 2.5 | 8.0 | 7.5 |
Other | 0.1 | 0.1 | 0.1 | 0.5 |
Total other income (expense) – net | $ 2.8 | $ 2.8 | $ 6.3 | $ 6.4 |
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 | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 3,508.6 | $ 3,308.7 | $ 3,430.8 | $ 3,118.6 |
Other comprehensive income (loss) before reclassifications | 42.6 | (47.3) | 23.8 | (48.1) |
Amounts reclassified from Accumulated OCI | 6.2 | 4.1 | 18.5 | 12.3 |
Net other comprehensive income (loss) | 48.8 | (43.2) | 42.3 | (35.8) |
Ending balance | 3,640.8 | 3,325.2 | 3,640.8 | 3,325.2 |
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 3,424.7 | 3,118.6 | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (207.6) | (178.7) | (187.4) | (177.9) |
Other comprehensive income (loss) before reclassifications | 42.6 | (47.3) | 22.4 | (48.1) |
Amounts reclassified from Accumulated OCI | 0.0 | 0.0 | 0.0 | 0.0 |
Net other comprehensive income (loss) | 42.6 | (47.3) | 22.4 | (48.1) |
Ending balance | (165.0) | (226.0) | (165.0) | (226.0) |
Foreign Currency Translation | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (177.9) | |||
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 11.3 | 11.5 | 10.7 | 12.2 |
Other comprehensive income (loss) before reclassifications | 0.0 | 0.0 | 1.4 | 0.0 |
Amounts reclassified from Accumulated OCI | (0.4) | (0.4) | (1.2) | (1.1) |
Net other comprehensive income (loss) | (0.4) | (0.4) | 0.2 | (1.1) |
Ending balance | 10.9 | 11.1 | 10.9 | 11.1 |
Cash Flow Hedges | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 12.2 | |||
Defined Benefit Pension and Postretirement Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (318.1) | (333.5) | (331.2) | (296.5) |
Other comprehensive income (loss) before reclassifications | 0.0 | 0.0 | 0.0 | 0.0 |
Amounts reclassified from Accumulated OCI | 6.6 | 4.5 | 19.7 | 13.4 |
Net other comprehensive income (loss) | 6.6 | 4.5 | 19.7 | 13.4 |
Ending balance | (311.5) | (329.0) | (311.5) | (329.0) |
Defined Benefit Pension and Postretirement Plans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (45.9) | |||
Defined Benefit Pension and Postretirement Plans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (342.4) | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (514.4) | (500.7) | (507.9) | (462.2) |
Net other comprehensive income (loss) | 48.8 | (43.2) | 42.3 | (35.8) |
Ending balance | $ (465.6) | $ (543.9) | (465.6) | (543.9) |
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (45.9) | |||
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (45.9) | |||
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (507.9) | $ (508.1) |
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated OCI (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Gains on cash flow hedges: | ||||
Interest expense | $ (13.8) | $ (12.0) | $ (38.6) | $ (36.9) |
Income tax expense | (55.1) | (50.4) | (130.9) | (162.9) |
Amortization of net unrecognized losses and prior service credits | 2.8 | 2.8 | 6.3 | 6.4 |
Net earnings | 184.7 | 169.2 | 432.6 | 536.2 |
Reclassification out of AOCI | ||||
Gains on cash flow hedges: | ||||
Net earnings | (6.2) | (4.1) | (18.5) | (12.3) |
Cash Flow Hedges | Reclassification out of AOCI | ||||
Gains on cash flow hedges: | ||||
Interest expense | 0.4 | 0.4 | 1.2 | 1.1 |
Income tax expense | 0.0 | 0.0 | 0.0 | 0.0 |
Net earnings | 0.4 | 0.4 | 1.2 | 1.1 |
Defined Benefit Pension and Postretirement Plans | Reclassification out of AOCI | ||||
Gains on cash flow hedges: | ||||
Income tax expense | 2.1 | 1.4 | 6.2 | 4.2 |
Amortization of net unrecognized losses and prior service credits | (8.7) | (5.9) | (25.9) | (17.6) |
Net earnings | $ (6.6) | $ (4.5) | $ (19.7) | $ (13.4) |
Segments - Net Sales by Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,027.4 | $ 985.9 | $ 2,774.4 | $ 3,028.6 |
Operating earnings | 251.3 | 228.7 | 595.8 | 728.7 |
Interest expense | (13.8) | (12.0) | (38.6) | (36.9) |
Other income (expense) – net | 2.8 | 2.8 | 6.3 | 6.4 |
Earnings before income taxes and equity earnings | 240.3 | 219.5 | 563.5 | 698.2 |
Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 308.4 | 335.3 | 870.2 | 992.8 |
Snap-on Tools Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
Repair Systems & Information Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 317.5 | 322.7 | 877.1 | 999.5 |
Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 85.8 | 84.1 | 256.3 | 253.8 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,075.7 | 1,043.2 | 2,896.3 | 3,193.5 |
Operating earnings | 275.9 | 245.6 | 659.7 | 774.4 |
Operating Segments | Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 308.4 | 335.3 | 870.2 | 992.8 |
Operating earnings | 43.1 | 48.3 | 97.5 | 143.7 |
Operating Segments | Snap-on Tools Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
Operating earnings | 87.1 | 53.0 | 174.1 | 191.5 |
Operating Segments | Repair Systems & Information Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 317.5 | 322.7 | 877.1 | 999.5 |
Operating earnings | 80.1 | 83.3 | 208.0 | 255.5 |
Operating Segments | Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Operating earnings | 65.6 | 61.0 | 180.1 | 183.7 |
Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (134.1) | (141.4) | (378.2) | (418.7) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating earnings | (24.6) | (16.9) | (63.9) | (45.7) |
Excluding Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 941.6 | 901.8 | 2,518.1 | 2,774.8 |
Operating earnings | 185.7 | 167.7 | 415.7 | 545.0 |
Excluding Financial Services | Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 235.7 | 257.0 | 667.2 | 769.5 |
Excluding Financial Services | Snap-on Tools Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
Excluding Financial Services | Repair Systems & Information Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 256.1 | 259.6 | 701.9 | 804.1 |
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 | 941.6 | 901.8 | 2,518.1 | 2,774.8 |
Excluding Financial Services | Operating Segments | Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 308.4 | 335.3 | 870.2 | 992.8 |
Excluding Financial Services | Operating Segments | Snap-on Tools Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 449.8 | 385.2 | 1,149.0 | 1,201.2 |
Excluding Financial Services | Operating Segments | Repair Systems & Information Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 317.5 | 322.7 | 877.1 | 999.5 |
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 | (134.1) | (141.4) | (378.2) | (418.7) |
Excluding Financial Services | Intersegment eliminations | Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 72.7 | 78.3 | 203.0 | 223.3 |
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 | 61.4 | 63.1 | 175.2 | 195.4 |
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 | 85.8 | 84.1 | 256.3 | 253.8 |
Operating earnings | 65.6 | 61.0 | 180.1 | 183.7 |
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 | 85.8 | 84.1 | 256.3 | 253.8 |
Financial Service | Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Segments - Assets by Segment (Detail) - USD ($) $ in Millions |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Assets | $ 6,267.6 | $ 5,693.5 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 5,438.9 | 5,452.1 |
Operating Segments | Commercial & Industrial Group | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,124.2 | 1,138.8 |
Operating Segments | Snap-on Tools Group | ||
Segment Reporting Information [Line Items] | ||
Assets | 796.7 | 827.4 |
Operating Segments | Repair Systems & Information Group | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,366.8 | 1,381.9 |
Operating Segments | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,151.2 | 2,104.0 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | 884.8 | 303.1 |
Elimination of intersegment receivables | ||
Segment Reporting Information [Line Items] | ||
Assets | $ (56.1) | $ (61.7) |
Subsequent Event (Details) $ in Millions |
Sep. 28, 2020
USD ($)
|
---|---|
AutoCrib | Subsequent Event | |
Subsequent Event [Line Items] | |
Cash purchase price of acquisition | $ 36.0 |
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