10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

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

For the quarterly period ended July 3, 2021

OR

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

For the transition period from                                                   to                                                          

Commission File Number 1-7724

Snap-on Incorporated

(Exact name of registrant as specified in its charter)

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

(262) 656-5200

(Registrant’s telephone number, including area code)

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

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

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

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

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

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

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

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

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

Class	Outstanding at July 16, 2021
Common Stock, $1.00 par value	53,970,510 shares

TABLE OF CONTENTS 

		Page
Part I: Financial Information
Item 1.	Financial Statements
	Condensed Consolidated Statements of Earnings (unaudited) – Three and Six Months Ended July 3, 2021, and June 27, 2020	3
	Condensed Consolidated Statements of Comprehensive Income (unaudited) – Three and Six Months Ended July 3, 2021, and June 27, 2020	4
	Condensed Consolidated Balance Sheets (unaudited) – July 3, 2021, and January 2, 2021	5
	Condensed Consolidated Statements of Equity (unaudited) – Three and Six Months Ended July 3, 2021, and June 27, 2020	7
	Condensed Consolidated Statements of Cash Flows (unaudited) – Six Months Ended July 3, 2021, and June 27, 2020	9
	Notes to Condensed Consolidated Financial Statements (unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	57
Item 4.	Controls and Procedures	58
Part II: Other Information
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 6.	Exhibits	61
	Signatures	62

2

PART I. FINANCIAL INFORMATION

Item 1: Financial Statements

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Amounts in millions, except per share data)

(Unaudited)

	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net sales	$	1,081.4	$	724.3	$	2,106.0	$	1,576.5
Cost of goods sold	(538.3)		(383.1)		(1,049.3)		(813.7)
Gross profit	543.1		341.2		1,056.7		762.8
Operating expenses	(326.0)		(250.1)		(638.7)		(532.8)
Operating earnings before financial services	217.1		91.1		418.0		230.0
Financial services revenue	86.9		84.6		175.5		170.5
Financial services expenses	(18.0)		(27.0)		(41.3)		(56.0)
Operating earnings from financial services	68.9		57.6		134.2		114.5
Operating earnings	286.0		148.7		552.2		344.5
Interest expense	(14.3)		(13.4)		(28.6)		(24.8)
Other income (expense) – net	3.4		2.0		7.7		3.5
Earnings before income taxes and equity earnings	275.1		137.3		531.3		323.2
Income tax expense	(62.9)		(31.9)		(122.0)		(75.8)
Earnings before equity earnings	212.2		105.4		409.3		247.4
Equity earnings, net of tax	1.0		0.5		1.5		0.5
Net earnings	213.2		105.9		410.8		247.9
Net earnings attributable to noncontrolling interests	(5.2)		(4.7)		(10.2)		(9.5)
Net earnings attributable to Snap-on Incorporated	$	208.0	$	101.2	$	400.6	$	238.4
Net earnings per share attributable to Snap-on Incorporated:
Basic	$	3.85	$	1.86	$	7.40	$	4.37
Diluted	3.76		1.85		7.26		4.34
Weighted-average shares outstanding:
Basic	54.0		54.4		54.1		54.5
Effect of dilutive securities	1.3		0.4		1.1		0.4
Diluted	55.3		54.8		55.2		54.9
Dividends declared per common share	$	1.23	$	1.08	$	2.46	$	2.16

See Notes to Condensed Consolidated Financial Statements.

3

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in millions)

(Unaudited)

 

	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Comprehensive income (loss):
Net earnings	$	213.2	$	105.9	$	410.8	$	247.9
Other comprehensive income (loss):
Foreign currency translation	20.2		87.8		(8.8)		(20.2)
Reclassification of foreign currency translation loss from sale of equity interest to net earnings	(1.0)		—		(1.0)		—
Unrealized cash flow hedges, net of tax:
Other comprehensive income before reclassifications	—		1.4		—		1.4
Reclassification of cash flow hedges to net earnings	(0.4)		(0.4)		(0.8)		(0.8)
Defined benefit pension and postretirement plans:
Amortization of net unrecognized losses included in net periodic benefit cost	9.1		8.8		18.2		17.2
Income tax benefit	(2.3)		(2.1)		(4.5)		(4.1)
Net of tax	6.8		6.7		13.7		13.1
Total comprehensive income	$	238.8	$	201.4	$	413.9	$	241.4
Comprehensive income attributable to noncontrolling interests	(5.2)		(4.7)		(10.2)		(9.5)
Comprehensive income attributable to Snap-on Incorporated	$	233.6	$	196.7	$	403.7	$	231.9

.

See Notes to Condensed Consolidated Financial Statements.

4

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except share data)

(Unaudited)

	July 3, 2021		January 2, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	965.9	$	923.4
Trade and other accounts receivable – net	645.4		640.7
Finance receivables – net	535.3		530.2
Contract receivables – net	103.9		112.5
Inventories – net	760.9		746.5
Prepaid expenses and other assets	138.3		129.7
Total current assets	3,149.7		3,083.0
Property and equipment:
Land	34.6		34.0
Buildings and improvements	432.8		432.0
Machinery, equipment and computer software	1,055.0		1,033.4
Property and equipment – gross	1,522.4		1,499.4
Accumulated depreciation and amortization	(996.3)		(973.2)
Property and equipment – net	526.1		526.2
Operating lease right-of-use assets	52.4		51.9
Deferred income tax assets	52.1		50.3
Long-term finance receivables – net	1,124.4		1,136.3
Long-term contract receivables – net	379.9		374.7
Goodwill	1,177.6		982.4
Other intangibles – net	255.2		260.8
Other assets	74.2		91.7
Total assets	$	6,791.6	$	6,557.3

See Notes to Condensed Consolidated Financial Statements.

5

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except share data)

(Unaudited)

	July 3, 2021		January 2, 2021
LIABILITIES AND EQUITY
Current liabilities:
Notes payable and current maturities of long-term debt	$	268.1	$	268.5
Accounts payable	280.2		222.9
Accrued benefits	54.2		59.7
Accrued compensation	91.7		89.9
Franchisee deposits	78.3		78.4
Other accrued liabilities	449.6		445.5
Total current liabilities	1,222.1		1,164.9
Long-term debt	1,182.5		1,182.1
Deferred income tax liabilities	81.8		70.4
Retiree health care benefits	33.0		34.5
Pension liabilities	111.6		127.1
Operating lease liabilities	34.2		34.0
Other long-term liabilities	100.9		97.7
Total liabilities	2,766.1		2,710.7
Commitments and contingencies (Note 15)
Equity
Shareholders’ equity attributable to Snap-on Incorporated:
Preferred stock (authorized 15,000,000 shares of $1 par value; none outstanding)	—		—
Common stock (authorized 250,000,000 shares of $1 par value; issued 67,438,011 and 67,430,958 shares, respectively)	67.4		67.4
Additional paid-in capital	461.1		391.7
Retained earnings	5,423.5		5,156.9
Accumulated other comprehensive loss	(362.7)		(365.8)
Treasury stock at cost (13,467,498 and 13,328,859 shares, respectively)	(1,585.9)		(1,425.3)
Total shareholders’ equity attributable to Snap-on Incorporated	4,003.4		3,824.9
Noncontrolling interests	22.1		21.7
Total equity	4,025.5		3,846.6
Total liabilities and equity	$	6,791.6	$	6,557.3

See Notes to Condensed Consolidated Financial Statements.

6

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Amounts in millions, except share data)

(Unaudited)

The following summarizes the changes in total equity for the three month period ended July 3, 2021:

	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 April 3, 2021	$	67.4	$	419.7	$	5,282.5	$	(388.3)	$	(1,505.3)	$	21.9	$	3,897.9
Net Earnings for the three months ended July 3, 2021	—		—		208.0		—		—		5.2		213.2
Other comprehensive income	—		—		—		25.6		—		—		25.6
Cash dividends – $1.23 per share	—		—		(66.7)		—		—		—		(66.7)
Stock compensation plans	—		41.4		—		—		56.8		—		98.2
Share repurchases – 566,900 shares	—		—		—		—		(137.4)		—		(137.4)
Other	—		—		(0.3)		—		—		(5.0)		(5.3)
Balance at July 3, 2021	$	67.4	$	461.1	$	5,423.5	$	(362.7)	$	(1,585.9)	$	22.1	$	4,025.5

The following summarizes the changes in total equity for the six month period ended July 3, 2021:

	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 January 2, 2021	$	67.4	$	391.7	$	5,156.9	$	(365.8)	$	(1,425.3)	$	21.7	$	3,846.6
Net Earnings for the six months ended July 3, 2021	—		—		400.6		—		—		10.2		410.8
Other comprehensive income	—		—		—		3.1		—		—		3.1
Cash dividends – $2.46 per share	—		—		(133.4)		—		—		—		(133.4)
Stock compensation plans	—		69.4		—		—		128.7		—		198.1
Share repurchases – 1,288,900 shares	—		—		—		—		(289.3)		—		(289.3)
Other	—		—		(0.6)		—		—		(9.8)		(10.4)
Balance at July 3, 2021	$	67.4	$	461.1	$	5,423.5	$	(362.7)	$	(1,585.9)	$	22.1	$	4,025.5

See Notes to Condensed Consolidated Financial Statements.

7

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Amounts in millions, except share data)

(Unaudited)

The following summarizes the changes in total equity for the three month period ended June 27, 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 March 28, 2020	$	67.4	$	378.4	$	4,852.0	$	(609.9)	$	(1,356.6)	$	22.1	$	3,353.4
Net Earnings for the three months ended June 27, 2020	—		—		101.2		—		—		4.7		105.9
Other comprehensive income	—		—		—		95.5		—		—		95.5
Cash dividends – $1.08 per share	—		—		(58.7)		—		—		—		(58.7)
Stock compensation plans	—		4.7		—		—		13.0		—		17.7
Other	—		—		(0.3)		—		—		(4.9)		(5.2)
Balance at Balance at June 27, 2020	$	67.4	$	383.1	$	4,894.2	$	(514.4)	$	(1,343.6)	$	21.9	$	3,508.6

The following summarizes the changes in total equity for the six month period ended June 27, 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 December 28, 2019	$	67.4	$	379.1	$	4,779.7	$	(507.9)	$	(1,309.2)	$	21.7	$	3,430.8
Impact of adopting the Credit Loss Standard (ASU No. 2016-13)	—		—		(6.1)		—		—		—		(6.1)
Balance at December 29, 2019	67.4		379.1		4,773.6		(507.9)		(1,309.2)		21.7		3,424.7
Net Earnings for the six months ended June 27, 2020	—		—		238.4		—		—		9.5		247.9
Other comprehensive loss	—		—		—		(6.5)		—		—		(6.5)
Cash dividends – $2.16 per share	—		—		(117.7)		—		—		—		(117.7)
Stock compensation plans	—		4.0		—		—		16.1		—		20.1
Share repurchases – 349,000 shares	—		—		—		—		(50.5)		—		(50.5)
Other	—		—		(0.1)		—		—		(9.3)		(9.4)
Balance at Balance at June 27, 2020	$	67.4	$	383.1	$	4,894.2	$	(514.4)	$	(1,343.6)	$	21.9	$	3,508.6

See Notes to Condensed Consolidated Financial Statements.

8

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)

(Unaudited)

	Six Months Ended
	July 3, 2021		June 27, 2020
Operating activities:
Net earnings	$	410.8	$	247.9
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation	37.9		36.2
Amortization of other intangibles	12.3		11.4
Provision for losses on finance receivables	17.9		31.4
Provision for losses on non-finance receivables	8.1		11.7
Stock-based compensation expense	23.8		6.9
Deferred income tax provision (benefit)	4.0		(1.9)
Loss on sales of assets	1.4		0.2
Settlement of treasury lock	—		1.4
Changes in operating assets and liabilities, net of effects of acquisitions:
Trade and other accounts receivable	(4.0)		112.5
Contract receivables	4.5		(11.8)
Inventories	(16.1)		(32.0)
Prepaid and other assets	(14.3)		(18.1)
Accounts payable	59.5		(8.1)
Accruals and other liabilities	11.7		79.3
Net cash provided by operating activities	557.5		467.0
Investing activities:
Additions to finance receivables	(454.5)		(414.6)
Collections of finance receivables	447.9		357.5
Capital expenditures	(37.6)		(29.0)
Acquisitions of businesses, net of cash acquired	(195.8)		(6.1)
Proceeds on sale of property and equipment	1.4		0.9
Other	1.7		(4.1)
Net cash used by investing activities	(236.9)		(95.4)
Financing activities:
Proceeds from issuance of long-term debt	—		489.9
Net increase (decrease) in other short-term borrowings	2.9		(190.0)
Cash dividends paid	(133.4)		(117.7)
Purchases of treasury stock	(289.3)		(50.5)
Proceeds from stock purchase and option plans	154.8		13.8
Other	(13.9)		(13.1)
Net cash provided (used) by financing activities	(278.9)		132.4
Effect of exchange rate changes on cash and cash equivalents	0.8		(2.3)
Increase in cash and cash equivalents	42.5		501.7
Cash and cash equivalents at beginning of year	923.4		184.5
Cash and cash equivalents at end of period	$	965.9	$	686.2
Supplemental cash flow disclosures:
Cash paid for interest	$	(27.9)	$	(21.6)
Net cash paid for income taxes	(126.6)		(27.4)

See Notes to Condensed Consolidated Financial Statements.

9

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Summary of Accounting Policies

Principles of consolidation and presentation

The Condensed Consolidated Financial Statements include the accounts of Snap-on Incorporated and its wholly owned and majority-owned subsidiaries (collectively, “Snap-on” or the “company”). These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Snap-on’s 2020 Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (“2020 year end”).

The company’s 2021 fiscal year, which ends on January 1, 2022, will contain 52 weeks of operating results. The company’s 2020 fiscal year contained 53 weeks of operating results, with the additional week occurring in the fourth quarter. Snap-on’s 2021 fiscal second quarter ended on July 3, 2021; the 2020 fiscal second quarter ended on June 27, 2020. The company’s 2021 and 2020 fiscal second 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 six month periods ended July 3, 2021, and June 27, 2020, have been made. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

Use of Estimates

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

Financial Instruments

The fair value of the company’s derivative financial instruments is generally determined using quoted prices in active markets for similar assets and liabilities. The carrying value of the company’s non-derivative financial instruments either approximates fair value, due to their short-term nature, or the amount disclosed for fair value is based upon a discounted cash flow analysis or quoted market values. See Note 10 for further information on financial instruments.

New Accounting Standards

The following new accounting pronouncement was adopted by Snap-on in fiscal year 2021:

On January 3, 2021, the beginning of Snap-on’s 2021 fiscal year, the company adopted 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. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements.

Note 2: Revenue Recognition

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

10

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Revenue Disaggregation: The following table shows the consolidated revenues by revenue source:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Revenue from contracts with customers	$	1,075.3	$	718.4	$	2,094.1	$	1,565.0
Other revenues	6.1		5.9		11.9		11.5
Total net sales	1,081.4		724.3		2,106.0		1,576.5
Financial services revenue	86.9		84.6		175.5		170.5
Total revenues	$	1,168.3	$	808.9	$	2,281.5	$	1,747.0

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:

	For the Three Months Ended July 3, 2021
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
North America*	$	126.6	$	416.3	$	236.8	$	—	$	—	$	779.7
Europe	79.2		43.8		66.5		—		—		189.5
All other	68.9		24.0		19.3		—		—		112.2
External net sales	274.7		484.1		322.6		—		—		1,081.4
Intersegment net sales	75.8		—		76.0		—		(151.8)		—
Total net sales	350.5		484.1		398.6		—		(151.8)		1,081.4
Financial services revenue	—		—		—		86.9		—		86.9
Total revenue	$	350.5	$	484.1	$	398.6	$	86.9	$	(151.8)	$	1,168.3

	For the Six Months Ended July 3, 2021
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
North America*	$	244.6	$	824.4	$	437.7	$	—	$	—	$	1,506.7
Europe	163.5		88.0		127.1		—		—		378.6
All other	137.7		50.0		33.0		—		—		220.7
External net sales	545.8		962.4		597.8		—		—		2,106.0
Intersegment net sales	150.4		—		148.4		—		(298.8)		—
Total net sales	696.2		962.4		746.2		—		(298.8)		2,106.0
Financial services revenue	—		—		—		175.5		—		175.5
Total revenue	$	696.2	$	962.4	$	746.2	$	175.5	$	(298.8)	$	2,281.5
* North America is comprised of the United States, Canada and Mexico.

11

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	For the Three Months Ended June 27, 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*	$	96.9	$	291.5	$	148.5	$	—	$	—	$	536.9
Europe	54.9		17.5		36.9		—		—		109.3
All other	52.7		14.3		11.1		—		—		78.1
External net sales	204.5		323.3		196.5		—		—		724.3
Intersegment net sales	57.4		—		48.5		—		(105.9)		—
Total net sales	261.9		323.3		245.0		—		(105.9)		724.3
Financial services revenue	—		—		—		84.6		—		84.6
Total revenue	$	261.9	$	323.3	$	245.0	$	84.6	$	(105.9)	$	808.9

	For the Six Months Ended June 27, 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*	$	205.8	$	618.4	$	325.8	$	—	$	—	$	1,150.0
Europe	122.0		48.6		93.5		—		—		264.1
All other	103.7		32.2		26.5		—		—		162.4
External net sales	431.5		699.2		445.8		—		—		1,576.5
Intersegment net sales	130.3		—		113.8		—		(244.1)		—
Total net sales	561.8		699.2		559.6		—		(244.1)		1,576.5
Financial services revenue	—		—		—		170.5		—		170.5
Total revenue	$	561.8	$	699.2	$	559.6	$	170.5	$	(244.1)	$	1,747.0
* North America is comprised of the United States, Canada and Mexico.

12

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The following tables represent external net sales disaggregated by customer type:

	For the Three Months Ended July 3, 2021
	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	$	25.7	$	484.1	$	322.6	$	—	$	—	$	832.4
All other professionals	249.0		—		—		—		—		249.0
External net sales	274.7		484.1		322.6		—		—		1,081.4
Intersegment net sales	75.8		—		76.0		—		(151.8)		—
Total net sales	350.5		484.1		398.6		—		(151.8)		1,081.4
Financial services revenue	—		—		—		86.9		—		86.9
Total revenue	$	350.5	$	484.1	$	398.6	$	86.9	$	(151.8)	$	1,168.3

	For the Six Months Ended July 3, 2021
	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	$	49.8	$	962.4	$	597.8	$	—	$	—	$	1,610.0
All other professionals	496.0		—		—		—		—		496.0
External net sales	545.8		962.4		597.8		—		—		2,106.0
Intersegment net sales	150.4		—		148.4		—		(298.8)		—
Total net sales	696.2		962.4		746.2		—		(298.8)		2,106.0
Financial services revenue	—		—		—		175.5		—		175.5
Total revenue	$	696.2	$	962.4	$	746.2	$	175.5	$	(298.8)	$	2,281.5

	For the Three Months Ended June 27, 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	$	20.0	$	323.3	$	196.5	$	—	$	—	$	539.8
All other professionals	184.5		—		—		—		—		184.5
External net sales	204.5		323.3		196.5		—		—		724.3
Intersegment net sales	57.4		—		48.5		—		(105.9)		—
Total net sales	261.9		323.3		245.0		—		(105.9)		724.3
Financial services revenue	—		—		—		84.6		—		84.6
Total revenue	$	261.9	$	323.3	$	245.0	$	84.6	$	(105.9)	$	808.9

13

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	For the Six Months Ended June 27, 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	$	39.4	$	699.2	$	445.8	$	—	$	—	$	1,184.4
All other professionals	392.1		—		—		—		—		392.1
External net sales	431.5		699.2		445.8		—		—		1,576.5
Intersegment net sales	130.3		—		113.8		—		(244.1)		—
Total net sales	561.8		699.2		559.6		—		(244.1)		1,576.5
Financial services revenue	—		—		—		170.5		—		170.5
Total revenue	$	561.8	$	699.2	$	559.6	$	170.5	$	(244.1)	$	1,747.0

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 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 $205.0 million of long-term contracts that have fixed consideration that extends beyond one year as of July 3, 2021. Snap-on expects to recognize approximately 60% of these contracts as revenue by the end of fiscal 2022, an additional 35% by the end of fiscal 2024 and the balance thereafter. 

14

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Contract Liabilities (Deferred Revenues): Contract liabilities are recorded when cash payments are received in advance of Snap-on’s performance.  The timing of payment is typically on a monthly, quarterly or annual basis. The balance of total contract liabilities was $68.8 million and $61.0 million at July 3, 2021, and January 2, 2021, 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 six months ended July 3, 2021, Snap-on recognized revenue of $10.6 million and $41.6 million, respectively, that was included in the $61.0 million contract liability balance at January 2, 2021, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

Note 3: Acquisitions

On July 1, 2021, Snap-on exchanged its 35% equity interest in Deville S.A., valued at $21.8 million, for 100% ownership of Secateurs Pradines (“Pradines”), a wholly owned subsidiary of Deville S.A. with a fair value of $20.0 million (or $15.8 million, net of cash acquired), and cash of $1.8 million, receivable upon settlement of the Pradines working capital adjustment, expected in the third quarter of 2021. Pradines, located in Bauge-en-Anjou, France, designs and manufactures horticultural hand tools for professionals and individuals. In the second quarter of 2021, the company recorded, on a preliminary basis, the $9.6 million excess of the purchase price over the fair value of net assets acquired in “Goodwill” in the accompanying Condensed Consolidated Balance Sheets. The company anticipates completing the purchase accounting for the acquired net assets of Pradines in the first half of 2022.

On February 26, 2021, Snap-on acquired Dealer-FX Group, Inc. (“Dealer-FX”) for a cash purchase price of $200.1 million (or $200.0 million, net of cash acquired). Dealer-FX, based in Markham, Ontario, is a leading developer, marketer and provider of service operations software solutions for automotive OEM customers and their dealers. Dealer-FX specializes in software as a service (SaaS) management systems, communications platforms, extensive data integrations, and offers a digitalized solution that increases productivity and enhances the vehicle owners’ experience. In the first quarter of 2021, the company recorded, on a preliminary basis, the $195.2 million excess of the purchase price over the fair value of the net assets acquired in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets. The company anticipates completing the purchase accounting for the acquired net assets of Dealer-FX in 2021.

On September 28, 2020, Snap-on acquired substantially all of the assets of AutoCrib, Inc. (“AutoCrib”) for a cash purchase price of $35.4 million. AutoCrib, based in Tustin, California, designs, manufactures and markets asset and tool control solutions for a variety of aerospace, automotive, military, natural resources and general industry operations. In the first quarter of 2021, the company completed the purchase accounting valuations for the acquired net assets of AutoCrib, including intangible assets. The $18.3 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 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.

For segment reporting purposes, the results of operations and assets of Dealer-FX and Sigmavision have been included in the Repair Systems & Information Group since the respective acquisition dates, and the results of operations and assets of Pradines and AutoCrib 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.

15

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 4: Receivables

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

The components of Snap-on’s trade and other accounts receivable as of July 3, 2021, and January 2, 2021, are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Trade and other accounts receivable	$	674.9	$	667.0
Allowances for credit losses	(29.5)		(26.3)
Total trade and other accounts receivable – net	$	645.4	$	640.7

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and six months ended July 3, 2021, and June 27, 2020:

	Three months ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Allowances for credit losses:
Beginning of period	$	25.8	$	20.4	$	26.3	$	20.9
Provision for credit losses	5.4		5.5		7.3		9.1
Charge-offs	(2.1)		(2.4)		(4.2)		(5.5)
Recoveries	—		—		—		—
Currency translation	0.4		0.1		0.1		(0.9)
End of period	$	29.5	$	23.6	$	29.5	$	23.6

Finance and Contract Receivables: Snap-on Credit LLC (“SOC”), the company’s financial services operation in the United States, originates extended-term finance and contract receivables on sales of Snap-on’s products sold through the U.S. franchisee 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.

16

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The components of Snap-on’s current finance and contract receivables as of July 3, 2021, and January 2, 2021, are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance installment receivables	$	547.2	$	533.9
Finance lease receivables, net of unearned finance charges of $2.4 million and $4.4 million, respectively	11.2		20.2
Total finance receivables	558.4		554.1
Contract installment receivables	49.8		59.1
Contract lease receivables, net of unearned finance charges of $18.4 million and $18.2 million, respectively	56.3		55.7
Total contract receivables	106.1		114.8
Total	664.5		668.9
Allowances for credit losses:
Finance installment receivables	(22.9)		(23.6)
Finance lease receivables	(0.2)		(0.3)
Total finance allowance for credit losses	(23.1)		(23.9)
Contract installment receivables	(0.8)		(1.4)
Contract lease receivables	(1.4)		(0.9)
Total contract allowance for credit losses	(2.2)		(2.3)
Total allowance for credit losses	(25.3)		(26.2)
Total current finance and contract receivables – net	$	639.2	$	642.7
Finance receivables – net	$	535.3	$	530.2
Contract receivables – net	103.9		112.5
Total current finance and contract receivables – net	$	639.2	$	642.7

17

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of July 3, 2021, and January 2, 2021, are as follows: 

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance installment receivables	$	1,165.5	$	1,173.1
Finance lease receivables, net of unearned finance charges of $1.1 million and $2.5 million, respectively	8.1		15.6
Total finance receivables	1,173.6		1,188.7
Contract installment receivables	201.0		199.7
Contract lease receivables, net of unearned finance charges of $30.3 million and $30.2 million, respectively	185.7		181.7
Total contract receivables	386.7		381.4
Total	1,560.3		1,570.1
Allowances for credit losses:
Finance installment receivables	(49.1)		(52.1)
Finance lease receivables	(0.1)		(0.3)
Total finance allowance for credit losses	(49.2)		(52.4)
Contract installment receivables	(3.1)		(3.1)
Contract lease receivables	(3.7)		(3.6)
Total contract allowance for credit losses	(6.8)		(6.7)
Total allowance for credit losses	(56.0)		(59.1)
Total long-term finance and contract receivables – net	$	1,504.3	$	1,511.0
Finance receivables – net	$	1,124.4	$	1,136.3
Contract receivables – net	379.9		374.7
Total long-term finance and contract receivables – net	$	1,504.3	$	1,511.0

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.

18

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

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 July 3, 2021, are as follows:

(Amounts in millions)	2021		2020		2019		2018		2017		Prior		Total
Finance Receivables:
Delinquent	$	2.3	$	15.5	$	9.2	$	5.1	$	2.7	$	1.1	$	35.9
Non-delinquent	695.0		645.8		227.8		90.8		30.2		6.5		1,696.1
Total Finance receivables	$	697.3	$	661.3	$	237.0	$	95.9	$	32.9	$	7.6	$	1,732.0
Contract receivables:
Delinquent	$	—	$	0.4	$	0.6	$	0.4	$	0.1	$	0.1	$	1.6
Non-delinquent	91.0		146.2		106.5		71.1		41.2		35.2		491.2
Total Contract receivables	$	91.0	$	146.6	$	107.1	$	71.5	$	41.3	$	35.3	$	492.8

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 generally has 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. Changes 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”) to determine expected losses. 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.

19

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The company performed a correlation analysis to compare historical losses to various 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 six months ended July 3, 2021, and June 27, 2020:

 

	Three Months Ended July 3, 2021				Six Months Ended July 3, 2021
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for credit losses:
Beginning of period	$	75.3	$	9.2	$	76.3	$	9.0
Provision for credit losses	6.6		0.1		17.9		0.8
Charge-offs	(12.4)		(0.5)		(27.3)		(1.1)
Recoveries	2.8		0.2		5.4		0.3
Currency translation	—		—		—		—
End of period	$	72.3	$	9.0	$	72.3	$	9.0

	Three Months Ended June 27, 2020				Six Months Ended June 27, 2020
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for credit losses:
Beginning of period	$	69.2	$	8.6	$	61.9	$	5.6
Impact of adopting ASU No. 2016-13	—		—		5.2		2.9
Provision for credit losses	15.1		1.2		31.4		2.6
Charge-offs	(14.2)		(0.9)		(30.1)		(2.2)
Recoveries	2.2		0.2		4.2		0.2
Currency translation	0.2		—		(0.1)		—
End of period	$	72.5	$	9.1	$	72.5	$	9.1

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 July 3, 2021, and January 2, 2021, were immaterial to both the financial services portfolio and the company’s results of operations and financial position.

20

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The aging of finance and contract receivables as of July 3, 2021, and January 2, 2021, is as follows:

(Amounts in millions)	30-59 Days Past Due		60-90 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Total Not Past Due		Total		Greater Than 90 Days Past Due and Accruing
July 3, 2021:
Finance receivables	$	13.4	$	8.3	$	14.2	$	35.9	$	1,696.1	$	1,732.0	$	11.8
Contract receivables	0.7		0.2		0.7		1.6		491.2		492.8		0.1
January 2, 2021:
Finance receivables	$	18.4	$	12.2	$	21.1	$	51.7	$	1,691.1	$	1,742.8	$	18.2
Contract receivables	1.3		0.6		1.5		3.4		492.8		496.2		0.2

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 generally has 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 July 3, 2021, and January 2, 2021, is as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance receivables	$	8.2	$	9.6
Contract receivables	1.6		2.4

Note 5: Inventories

Inventories by major classification are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finished goods	$	648.1	$	643.4
Work in progress	64.4		61.6
Raw materials	133.2		125.5
Total FIFO value	845.7		830.5
Excess of current cost over LIFO cost	(84.8)		(84.0)
Total inventories – net	$	760.9	$	746.5

21

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 58% and 57% of total inventories as of July 3, 2021 and January 2, 2021, respectively. The company accounts for its non-U.S. inventory on the FIFO method. As of July 3, 2021, approximately 31% of the company’s U.S. inventory was accounted for using the FIFO method and 69% was accounted for using the last-in, first-out (“LIFO”) method. There were no LIFO inventory liquidations in the three and six months ended July 3, 2021, or June 27, 2020.

Note 6: Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by segment for the six months ended July 3, 2021, are as follows:

(Amounts in millions)	Commercial & Industrial Group		Snap-on Tools Group		Repair Systems & Information Group		Total
Balance as of January 2, 2021	$	331.2	$	12.4	$	638.8	$	982.4
Currency translation	(6.5)		—		(3.1)		(9.6)
Acquisitions and related adjustments	9.6		—		195.2		204.8
Balance as of July 3, 2021	$	334.3	$	12.4	$	830.9	$	1,177.6

Goodwill of $1,177.6 million as of July 3, 2021, included $195.2 million, on a preliminary basis, from the acquisition of Dealer-FX and $9.6 million, on a preliminary basis, from the acquisition of Pradines. The goodwill from Dealer-FX is included in the Repair Systems & Information Group and the goodwill from Pradines is included in the Commercial & Industrial Group. See Note 3 for additional information on acquisitions.

Additional disclosures related to other intangible assets are as follows:

	July 3, 2021				January 2, 2021
(Amounts in millions)	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Amortized other intangible assets:
Customer relationships	$	191.6	$	(135.9)	$	191.5	$	(130.1)
Developed technology	22.1		(20.7)		21.8		(19.9)
Internally developed software	178.6		(133.7)		172.2		(128.0)
Patents	43.8		(25.0)		43.2		(25.3)
Trademarks	4.0		(2.4)		3.9		(2.4)
Other	8.2		(4.0)		8.2		(3.9)
Total	448.3		(321.7)		440.8		(309.6)
Non-amortized trademarks	128.6		—		129.6		—
Total other intangible assets	$	576.9	$	(321.7)	$	570.4	$	(309.6)

Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2021, and the testing did not result in any impairment. Provision for impairment of goodwill and/or other intangible assets in a future period could arise due to 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. As of July 3, 2021, the company had no accumulated impairment losses.

22

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

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

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

Snap-on is amortizing its customer relationships on both an accelerated and straight-line basis over a 15-year weighted-average life; the remaining intangibles are amortized on a straight-line basis. The weighted-average amortization period for all amortizable intangibles on a combined basis is 11 years.

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

The aggregate amortization expense was $6.3 million and $12.3 million for the respective three and six month periods ended July 3, 2021, and $5.7 million and $11.4 million for the respective three and six month periods ended June 27, 2020. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $24.7 million in 2021, $22.2 million in 2022, $18.6 million in 2023, $13.2 million in 2024, $8.7 million in 2025, and $8.0 million in 2026.

Note 7: Exit and Disposal Activities

Snap-on did not record any costs for exit and disposal activities in the three and six month periods ended July 3, 2021. For the respective three and six month periods ended June 27, 2020, Snap-on recorded costs of $4.0 million and $11.5 million for exit and disposal activities. The costs associated with exit and disposal activities by operating segment are as follows:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Exit and disposal costs
Cost of goods sold:
Commercial & Industrial Group	$	—	$	2.0	$	—	$	6.4
Repair System & Information Group	—		—		—		0.7
Total cost of goods sold	$	—	$	2.0	$	—	$	7.1
Operating Expenses:
Snap-on Tools Group	$	—	$	0.6	$	—	$	0.6
Repair System & Information Group	—		1.4		—		3.8
Total operating expenses	$	—	$	2.0	$	—	$	4.4
Total exit and disposal costs:
Commercial & Industrial Group	$	—	$	2.0	$	—	$	6.4
Snap-on Tools Group	—		0.6		—		0.6
Repair System & Information Group	—		1.4		—		4.5
Total exit and disposal costs	$	—	$	4.0	$	—	$	11.5

23

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Costs associated with exit and disposal activities in the first six 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 first six months of 2021 is as follows:

	Balance at		First Quarter				Balance at		Second Quarter				Balance at
(Amounts in millions)	January 2, 2021		Provision		Usage		April 3, 2021		Provision		Usage		July 3, 2021
Severance costs:
Commercial & Industrial Group	$	5.8	$	—	$	(0.3)	$	5.5	$	—	$	(0.5)	$	5.0
Snap-on Tools Group	0.4		—		—		0.4		—		—		0.4
Repair System & Information Group	3.8		—		(0.2)		3.6		—		(0.5)		3.1
Total	$	10.0	$	—	$	(0.5)	$	9.5	$	—	$	(1.0)	$	8.5

As of July 3, 2021, the company expects that of the $8.5 million exit and disposal accrual, approximately $4.1 million will be utilized in the balance of 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.

Note 8: Income Taxes

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.4% and 24.2% in the respective first six month periods of 2021 and 2020. 

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.

Note 9: Short-term and Long-term Debt

Short-term and long-term debt as of July 3, 2021, and January 2, 2021, consisted of the following:

(Amounts in millions)	July 3, 2021		January 2, 2021
6.125% unsecured notes due 2021	$	250.0	$	250.0
3.25% unsecured notes due 2027	300.0		300.0
4.10% unsecured notes due 2048	400.0		400.0
3.10% unsecured notes due 2050	500.0		500.0
Other*	0.6		0.6
	1,450.6		1,450.6
Less: notes payable and current maturities of long-term debt
Current maturities of long-term debt	(250.0)		(250.0)
Other notes*	(18.1)		(18.5)
	(268.1)		(268.5)
Total long-term debt	$	1,182.5	$	1,182.1

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

24

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Notes payable and current maturities of long-term debt of $268.1 million as of July 3, 2021, consisted of $250.0 million of 6.125% unsecured notes that mature on September 1, 2021 (the “2021 Notes”), $17.5 million of other notes and $0.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps. As of 2020 year end, notes payable of $268.5 million included $250.0 million of the 2021 Notes, $14.9 million of other notes and $3.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

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 July 3, 2021. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of Consolidated Net Debt to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of July 3, 2021, the company’s actual ratios of 0.11 and 0.44, respectively, were both within the permitted ranges set forth in this financial covenant. Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.

Note 10: 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 and effective 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. See Note 17 for additional information on Other income (expense) - net.

25

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

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” on the accompanying Condensed Consolidated Balance Sheets as of both July 3, 2021, and January 2, 2021. The notional amount of interest rate swaps outstanding and designated as fair value hedges was $100.0 million as of both July 3, 2021, and January 2, 2021.

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. There were no treasury locks outstanding as of both July 3, 2021, and January 2, 2021.

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 July 3, 2021, Snap-on had equity forwards in place intended to manage market risk with respect to 70,700 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.

26

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

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:

	July 3, 2021				January 2, 2021
(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Finance receivables – net	$	1,659.7	$	2,008.5	$	1,666.5	$	2,024.4
Contract receivables – net	483.8		542.2		487.2		545.4
Long-term debt and notes payable and current maturities of long-term debt	1,450.6		1,605.8		1,450.6		1,678.2

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.

Note 11: Pension Plans

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Service cost	$	6.9	$	6.6	$	14.4	$	13.5
Interest cost	10.5		12.3		21.1		24.4
Expected return on plan assets	(23.5)		(23.7)		(47.1)		(47.4)
Amortization of unrecognized loss	9.1		8.8		18.2		17.2
Net periodic pension cost	$	3.0	$	4.0	$	6.6	$	7.7

The components of net periodic pension cost, other than the service cost component, are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 17 for additional information on other income (expense) - net.

Snap-on intends to make contributions of $9.2 million to its foreign pension plans and $2.2 million to its domestic pension plans in 2021, as required by law. Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2021.

27

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 12: Postretirement Health Care Plans

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Interest cost	$	0.3	$	0.3	$	0.6	$	0.7
Expected return on plan assets	(0.2)		(0.1)		(0.4)		(0.3)
Net periodic postretirement health care cost	$	0.1	$	0.2	$	0.2	$	0.4

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.

Note 13: 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 July 3, 2021, the 2011 Plan had 3,634,380 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 $11.5 million and $23.8 million for the respective three and six month periods ended July 3, 2021, and $5.8 million and $6.9 million for the respective three and six month periods ended June 27, 2020. Cash received from stock purchase and option plan exercises during the respective three and six month periods ended July 3, 2021, totaled $61.8 million and $154.8 million. Cash received from stock purchase and option plan exercises during the respective three and six month periods ended June 27, 2020 totaled $12.3 million and $13.8 million. The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $6.2 million and $13.9 million for the respective three and six month periods ended July 3, 2021, and $0.8 million and $2.3 million for the respective three and six month periods ended June 27, 2020.

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 10 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 six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of option (in years)	5.33	5.53
Expected volatility factor	21.80%	21.67%
Expected dividend yield	2.59%	2.78%
Risk-free interest rate	0.67%	1.50%

28

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

A summary of stock option activity as of and for the six months ended July 3, 2021, is presented below:

	Shares (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 2, 2021	3,120	$	142.47
Granted	333	189.91
Exercised	(877)	144.66
Forfeited or expired	(23)	168.73
Outstanding at July 3, 2021	2,553	147.67		6.0	$	194.6
Exercisable at July 3, 2021	1,790	138.09		4.8	153.6

* Weighted-average

The weighted-average grant date fair value of options granted during the six months ended July 3, 2021, and June 27, 2020, was $26.19 and $22.95, respectively. The intrinsic value of options exercised was $28.1 million and $58.9 million during the respective three and six month periods ended July 3, 2021, and $3.3 million and $4.7 million for the respective three and six month periods ended June 27, 2020. The fair value of stock options vested was $12.5 million and $14.6 million during the respective six month periods ended July 3, 2021, and June 27, 2020.

As of July 3, 2021, there was $15.5 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 1.9 years.

Performance Share Unit and Restricted Stock Unit Awards: Performance share units (“PSUs”) 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 PSUs 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.

Time-based RSUs are earned and expensed using the fair value of the award over the contractual term of three years. Vesting of the time-based RSUs is dependent upon continued employment over the 3-year cliff vesting period.

The fair value of PSUs and RSUs 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 awards granted during the six months ended July 3, 2021, and June 27, 2020, was $187.12 and $155.34, respectively. There were no PSUs paid out during the six months ended July 3, 2021. PSUs related to 21,184 shares were paid out during the six months ended June 27, 2020. 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”).

Changes to the company’s non-vested PSUs and RSUs during the six months ended July 3, 2021, are as follows:

	Shares (in thousands)	Fair Value Price per Share*
Non-vested performance awards at January 2, 2021	76	$	155.61
Granted	127	187.12
Vested	—	—
Cancellations and other	(3)	181.51
Non-vested performance awards at July 3, 2021	200	175.18

* Weighted-average

29

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

As of July 3, 2021, there was $22.7 million of unrecognized compensation cost related to non-vested PSUs and RSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 2.3 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 six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of stock-settled SARs (in years)	3.94	3.75
Expected volatility factor	22.50%	22.50%
Expected dividend yield	2.59%	2.78%
Risk-free interest rate	0.19%	1.42%

Changes to the company’s stock-settled SARs during the six months ended July 3, 2021, are as follows:

	Stock-settled SARs (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 2, 2021	502	$	151.59
Granted	83	189.89
Exercised	(48)	144.52
Forfeited or expired	(136)	152.26
Outstanding at July 3, 2021	401	160.06		7.2	$	25.6
Exercisable at July 3, 2021	230	151.12		5.8	16.7

* Weighted-average

The weighted-average grant date fair value of stock-settled SARs granted during the six months ended July 3, 2021, and June 27, 2020, was $24.05 and $21.31, respectively. The intrinsic value of stock-settled SARs exercised was $0.8 million and $3.0 million during the respective three and six month periods ended July 3, 2021, and zero for both the three and six months ended June 27, 2020. The fair value of stock-settled SARs vested was $2.1 million and $2.3 million during the respective six month periods ended July 3, 2021, and June 27, 2020.

30

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

As of July 3, 2021, there was $3.2 million of unrecognized compensation cost related to non-vested stock-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.9 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of cash-settled SARs (in years)	3.59	3.43
Expected volatility factor	22.49%	32.04%
Expected dividend yield	2.20%	3.23%
Risk-free interest rate	0.45%	0.19%

The intrinsic value of cash-settled SARs exercised was $0.1 million and $0.6 million during the respective three and six month periods ended July 3, 2021, and $0.1 million and $0.2 million for the respective three and six month periods ended June 27, 2020. The fair value of cash-settled SARs vested was $0.1 million and zero during the respective six month periods ended July 3, 2021, and June 27, 2020.

Changes to the company’s non-vested cash-settled SARs during the six months ended July 3, 2021, are as follows:

	Cash-settled SARs (in thousands)	Fair Value Price per Share*
Non-vested cash-settled SARs at January 2, 2021	2	$	36.99
Granted	1	44.24
Vested	(1)	62.80
Non-vested cash-settled SARs at July 3, 2021	2	54.36

* Weighted-average

As of July 3, 2021, 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 1.9 years.

Restricted Stock Awards – Non-employee Directors: The company awarded 6,858 shares and 7,380 shares of restricted stock to non-employee directors for the respective six month periods ended July 3, 2021, and June 27, 2020. The fair value of the restricted stock awards is expensed over a one-year vesting period based on the fair value on the date of grant. All restrictions generally lapse upon the earlier of the first anniversary of the grant date, the recipient’s death or disability or in the event of a change in control, as defined in the 2011 Plan. If termination of the recipient’s service occurs prior to the first anniversary of the grant date for any reason other than death or disability, the shares of restricted stock would be forfeited, unless otherwise determined by the Board.

Employee stock purchase plan: Substantially all Snap-on employees in the United States and Canada are eligible to participate in an employee stock purchase plan. The purchase price of the company’s common stock to participants is the lesser of the mean of the high and low price of the stock on the beginning date (May 15) or ending date (the following May 14) of each plan year. For the six months ended July 3, 2021, and June 27, 2020, issuances under this plan totaled 82,286 shares and 25,425 shares, respectively. As of July 3, 2021, shares reserved for issuance under this plan totaled 597,275 shares and Snap-on held participant contributions of approximately $0.5 million. Participants are able to withdraw from the plan at any time prior to the ending date and receive back all contributions made during the plan year. Compensation expense for plan participants was $4.8 million and $9.6 million for the respective three and six month periods ended July 3, 2021, and zero and $0.1 million of benefit for the respective three and six month periods ended June 27, 2020.

31

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Franchisee stock purchase plan: All franchisees in the United States and Canada are eligible to participate in a franchisee stock purchase plan. The purchase price of the company’s common stock to participants is the lesser of the mean of the high and low price of the stock on the beginning date (May 15) or ending date (the following May 14) of each plan year. For the six months ended July 3, 2021, and June 27, 2020, issuances under this plan totaled 143,388 shares and 55,980 shares, respectively. As of July 3, 2021, shares reserved for issuance under this plan totaled 270,162 shares and Snap-on held participant contributions of approximately $1.3 million. Participants are able to withdraw from the plan at any time prior to the ending date and receive back all contributions made during the plan year. The company recognized mark-to-market expense of $11.3 million and $16.7 million for the respective three and six month periods ended July 3, 2021, and zero and $0.2 million of benefit for the respective three and six month periods ended June 27, 2020.

Note 14: Earnings Per Share

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

	Three Months Ended		Six Months Ended
	July 3, 2021	June 27, 2020	July 3, 2021	June 27, 2020
Weighted-average common shares outstanding	54,051,436	54,413,820	54,117,937	54,468,839
Effect of dilutive securities	1,256,296	378,730	1,094,874	451,621
Weighted-average common shares outstanding, assuming dilution	55,307,732	54,792,550	55,212,811	54,920,460

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 July 3, 2021, there were no awards outstanding that were anti-dilutive; as of June 27, 2020, there were 3,238,975 awards outstanding that were anti-dilutive. Performance-based equity awards are included in the diluted earnings per share calculation based on the attainment of the applicable performance metrics to date.

Note 15: 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 six months ended July 3, 2021, and June 27, 2020, is as follows:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Warranty reserve:
Beginning of period	$	18.3	$	17.2	$	17.6	$	17.3
Additions	3.8		2.3		7.9		6.0
Usage	(3.6)		(2.3)		(7.0)		(6.1)
End of period	$	18.5	$	17.2	$	18.5	$	17.2

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.

32

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 16: Leases

Lessee Accounting: Supplemental balance sheet information related to leases as of July 3, 2021, and January 2, 2021 is as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance leases:
Property and equipment - gross	$	22.9	$	24.3
Accumulated depreciation and amortization	(17.2)		(17.5)
Property and equipment - net	$	5.7	$	6.8
Other accrued liabilities	$	2.6	$	2.7
Other long-term liabilities	5.7		7.4
Total finance lease liabilities	$	8.3	$	10.1
Operating leases:
Operating lease right-of-use assets	$	52.4	$	51.9
Other accrued liabilities	$	19.7	$	19.3
Operating lease liabilities	34.2		34.0
Total operating lease liabilities	$	53.9	$	53.3

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.

Note 17: Other Income (Expense) – Net

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Interest income	$	0.4	$	0.3	$	0.8	$	0.7
Net foreign exchange income (loss)	0.2		(0.7)		—		(2.6)
Net periodic pension and postretirement benefits – non-service	3.8		2.4		7.6		5.4
Foreign currency translation loss from sale of equity interest	(1.0)		—		(1.0)		—
Other	—		—		0.3		—
Total other income (expense) – net	$	3.4	$	2.0	$	7.7	$	3.5

33

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 18: 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 July 3, 2021:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of April 3, 2021	$	(103.7)	$	10.1	$	(294.7)	$	(388.3)
Other comprehensive income before reclassifications	20.2		—		—		20.2
Amounts reclassified from Accumulated OCI	(1.0)		(0.4)		6.8		5.4
Net other comprehensive income (loss)	19.2		(0.4)		6.8		25.6
Balance as of July 3, 2021	$	(84.5)	$	9.7	$	(287.9)	$	(362.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended July 3, 2021:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of January 2, 2021	$	(74.7)	$	10.5	$	(301.6)	$	(365.8)
Other comprehensive loss before reclassifications	(8.8)		—		—		(8.8)
Amounts reclassified from Accumulated OCI	(1.0)		(0.8)		13.7		11.9
Net other comprehensive income (loss)	(9.8)		(0.8)		13.7		3.1
Balance as of July 3, 2021	$	(84.5)	$	9.7	$	(287.9)	$	(362.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended June 27, 2020:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of March 28, 2020	$	(295.4)	$	10.3	$	(324.8)	$	(609.9)
Other comprehensive income before reclassifications	87.8		1.4		—		89.2
Amounts reclassified from Accumulated OCI	—		(0.4)		6.7		6.3
Net other comprehensive income	87.8		1.0		6.7		95.5
Balance as of June 27, 2020	$	(207.6)	$	11.3	$	(318.1)	$	(514.4)

34

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended June 27, 2020:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 28, 2019	$	(187.4)	$	10.7	$	(331.2)	$	(507.9)
Other comprehensive income (loss) before reclassifications	(20.2)		1.4		—		(18.8)
Amounts reclassified from Accumulated OCI	—		(0.8)		13.1		12.3
Net other comprehensive income (loss)	(20.2)		0.6		13.1		(6.5)
Balance as of June 27, 2020	$	(207.6)	$	11.3	$	(318.1)	$	(514.4)

The reclassifications out of Accumulated OCI for the three and six month periods ended July 3, 2021, and June 27, 2020, are as follows: 

	Amount Reclassified from Accumulated OCI
	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020		Statement of Earnings Presentation
(Amounts in millions)
Foreign currency loss from sale of equity interest:
Foreign currency	$	1.0	$	—	$	1.0	$	—	Other income (expense) - net
Income tax expense	—		—		—		—		Income tax expense
Net of tax	1.0		—		1.0		—
Gains on cash flow hedges:
Treasury locks	$	0.4	$	0.4	$	0.8	$	0.8	Interest expense
Income tax expense	—		—		—		—		Income tax expense
Net of tax	0.4		0.4		0.8		0.8
Amortization of net unrecognized losses	(9.1)		(8.8)		(18.2)		(17.2)		See footnote below*
Income tax benefit	2.3		2.1		4.5		4.1		Income tax expense
Net of tax	(6.8)		(6.7)		(13.7)		(13.1)
Total reclassifications for the period, net of tax	$	(5.4)	$	(6.3)	$	(11.9)	$	(12.3)

* 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.

35

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Note 19: Segments

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net sales:
Commercial & Industrial Group	$	350.5	$	261.9	$	696.2	$	561.8
Snap-on Tools Group	484.1		323.3		962.4		699.2
Repair Systems & Information Group	398.6		245.0		746.2		559.6
Segment net sales	1,233.2		830.2		2,404.8		1,820.6
Intersegment eliminations	(151.8)		(105.9)		(298.8)		(244.1)
Total net sales	1,081.4		724.3		2,106.0		1,576.5
Financial Services revenue	86.9		84.6		175.5		170.5
Total revenues	$	1,168.3	$	808.9	$	2,281.5	$	1,747.0
Operating earnings:
Commercial & Industrial Group	$	55.5	$	22.9	$	106.2	$	54.4
Snap-on Tools Group	103.5		38.4		202.4		87.0
Repair Systems & Information Group	86.7		50.6		168.1		127.9
Financial Services	68.9		57.6		134.2		114.5
Segment operating earnings	314.6		169.5		610.9		383.8
Corporate	(28.6)		(20.8)		(58.7)		(39.3)
Operating earnings	286.0		148.7		552.2		344.5
Interest expense	(14.3)		(13.4)		(28.6)		(24.8)
Other income (expense) – net	3.4		2.0		7.7		3.5
Earnings before income taxes and equity earnings	$	275.1	$	137.3	$	531.3	$	323.2

36

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

(Amounts in millions)	July 3, 2021		January 2, 2021
Assets:
Commercial & Industrial Group	$	1,197.5	$	1,210.4
Snap-on Tools Group	763.6		775.3
Repair Systems & Information Group	1,618.6		1,399.7
Financial Services	2,165.0		2,170.3
Total assets from reportable segments	5,744.7		5,555.7
Corporate	1,115.3		1,063.2
Elimination of intersegment receivables	(68.4)		(61.6)
Total assets	$	6,791.6	$	6,557.3

37

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

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

Caution Regarding Forward-Looking Statements:

Statements in this document that are not historical facts, including statements that: (i) are in the future tense; (ii) include the words “expects,” “plans,” “targets,” “estimates,” “believes,” “anticipates,” or similar words that reference Snap-on Incorporated (“Snap-on” or “the company”) or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on’s or management’s future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Snap-on cautions the reader that any forward-looking statements included in this document that are based upon assumptions and estimates were developed by management in good faith and are subject to risks, uncertainties or other factors that could cause (and in some cases have caused) actual results to differ materially from those described in any such statement. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results or regarded as a representation by the company or its management that the projected results will be achieved. For those forward-looking statements, Snap-on cautions the reader that numerous important factors, such as those listed below, the factors discussed in its Annual Report on Form 10-K for the fiscal year ended January 2, 2021, and those discussed in this document, could affect the company’s actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, Snap-on.

These risks and uncertainties include, without limitation, uncertainties related to estimates, statements, assumptions and projections generally, and the timing and progress with which Snap-on can attain value through its Snap-on Value Creation Processes, including its ability to realize efficiencies and savings from its rapid continuous improvement and other cost reduction initiatives, improve workforce productivity, achieve improvements in the company’s manufacturing footprint and greater efficiencies in its supply chain, and enhance machine maintenance, plant productivity and manufacturing line set-up and change-over practices, any or all of which could result in production inefficiencies, higher costs and/or lost revenues. These risks include the evolving impact and unknown duration of the coronavirus (“COVID-19”) pandemic, which has the potential to amplify the impact of the other risks facing the company. These risks also include the impact of governmental actions related thereto on Snap-on’s business, as well as uncertainties related to Snap-on’s capability to implement future strategies with respect to its existing businesses, its ability to refine its brand and franchise strategies, retain and attract franchisees, further enhance service and value to franchisees and thereby help improve their sales and profitability, introduce successful new products, successfully pursue, complete and integrate acquisitions, as well as its ability to withstand disruption arising from natural disasters, planned facility closures or other labor interruptions, the effects of external negative factors, including adverse developments in world financial markets, developments related to tariffs and other trade issues or disputes, weakness in certain areas of the global economy (including as a result of the impact of matters related to the United Kingdom’s exit from the European Union and the COVID-19 pandemic), and significant changes in the current competitive environment, inflation, interest rates and other monetary and market fluctuations, changes in tax rates, laws and regulations as well as uncertainty surrounding potential changes, and the impact of energy and raw material supply and pricing, including steel (as a result of U.S. tariffs imposed on certain steel imports or otherwise) and gasoline, the amount, rate and growth of Snap-on’s general and administrative expenses, including health care and postretirement costs, continuing and potentially increasing required contributions to pension and postretirement plans, the impacts of non-strategic business and/or product line rationalizations, and the effects on business as a result of new legislation, regulations or government-related developments or issues, risks associated with data security and technological systems and protections, potential reputational damages and costs related to litigation as well as an inability to assure that costs will be reduced or eliminated on appeal, the impact of changes in financial accounting standards, the ability to effectively manage human capital resources, and other world or local events outside Snap-on’s control, including terrorist disruptions and other outbreaks of infectious diseases and civil unrest. Snap-on disclaims any responsibility to update any forward-looking statement provided in this document, except as required by law.

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

38

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Non-GAAP Measures

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

Recent Acquisitions

On July 1, 2021, Snap-on exchanged its 35% equity interest in Deville S.A., valued at $21.8 million, for 100% ownership of Secateurs Pradines (“Pradines”), a wholly owned subsidiary of Deville S.A. with a fair value of $20.0 million (or $15.8 million, net of cash acquired), and cash of $1.8 million, receivable upon settlement of the Pradines working capital adjustment, expected in the third quarter of 2021. Pradines, located in Bauge-en-Anjou, France, designs and manufactures horticultural hand tools for professionals and individuals. Pradines has been the primary supplier of pruning products to Snap-on and the acquisition allows the company to improve and expand its pruning tool offering.

On February 26, 2021, Snap-on acquired Dealer-FX Group, Inc. (“Dealer-FX”) for a cash purchase price of $200.1 million (or $200.0 million, net of cash acquired). Dealer-FX, based in Markham, Ontario, is a leading developer, marketer and provider of service operations software solutions for automotive original equipment manufacturer (“OEM”) customers and their dealers. Dealer-FX specializes in software as a service (SaaS) management systems, communications platforms, extensive data integrations, and offers a digitalized solution that increases productivity and enhances the vehicle owners’ experience. The acquisition of Dealer-FX complemented and expanded Snap-on’s existing OEM and dealership business that provides electronic parts catalogs, essential tool and diagnostics programs, and custom analytics to OEMs and dealerships.

On September 28, 2020, Snap-on acquired substantially all of the assets of AutoCrib, Inc. (“AutoCrib”) for a cash purchase price of $35.4 million. AutoCrib, based in Tustin, California, designs, manufactures and markets asset and tool control solutions. The acquisition of AutoCrib complemented and expanded Snap-on’s existing tool control offering to customers in a variety of industrial applications, including aerospace, automotive, military, natural resources and general industry.

On January 31, 2020, Snap-on acquired substantially all of the assets of 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 acquisition of the TreadReader product line enhanced and expanded Snap-on’s existing capabilities in serving vehicle repair facilities and expanded the company’s presence with repair shop owners and managers.

For segment reporting purposes, the results of operations and assets of Dealer-FX and Sigmavision have been included in the Repair Systems & Information Group since the respective acquisition dates, and the results of operations and assets of Pradines and AutoCrib 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.

39

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Effect of COVID-19

During the second quarter of 2021, with ongoing advancement against the COVID-19 pandemic, the effects on the company have lessened from previous periods, particularly from the heavily-impacted second quarter of 2020. The company sustained the accommodation of its operations to the virus environment, continuing without significant disruption to serve its franchisees and other professional customers as they performed essential work, while taking what it believes to be appropriate measures to ensure the health and safety of its personnel. Throughout the pandemic, Snap-on has generally maintained its headcount, manufacturing capacity, brand position and product development. The company’s supply chain and distribution channels have not been materially impacted by the pandemic, and the company has taken steps to ensure access to raw materials and components, but it cannot provide assurances with respect to the future due to the evolving nature of the pandemic environment. In the first half of 2021, COVID-19-related costs were not significant.

The ultimate impact of COVID-19 on our business, results of operations, financial condition and cash flows is dependent on future developments, including the duration of the pandemic and the related length of its impact on the global economy, which are uncertain and cannot be predicted at this time. See also Part I, Item 1A, Risk Factors in Snap-on’s 2020 Form 10-K for an additional discussion of risks related to COVID-19.

RESULTS OF OPERATIONS

Results of operations for the three months ended July 3, 2021, and June 27, 2020, are as follows:

	Three Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
Net sales	$	1,081.4	100.0	%	$	724.3	100.0	%	$	357.1	49.3	%
Cost of goods sold	(538.3)		(49.8)	%	(383.1)		(52.9)	%	(155.2)		(40.5)	%
Gross profit	543.1		50.2	%	341.2		47.1	%	201.9		59.2	%
Operating expenses	(326.0)		(30.1)	%	(250.1)		(34.5)	%	(75.9)		(30.3)	%
Operating earnings before financial services	217.1		20.1	%	91.1		12.6	%	126.0		138.3	%
Financial services revenue	86.9		100.0	%	84.6		100.0	%	2.3		2.7	%
Financial services expenses	(18.0)		(20.7)	%	(27.0)		(31.9)	%	9.0		33.3	%
Operating earnings from financial services	68.9		79.3	%	57.6		68.1	%	11.3		19.6	%
Operating earnings	286.0		24.5	%	148.7		18.4	%	137.3		92.3	%
Interest expense	(14.3)		(1.2)	%	(13.4)		(1.6)	%	(0.9)		(6.7)	%
Other income (expense) – net	3.4		0.2	%	2.0		0.2	%	1.4		70.0	%
Earnings before income taxes and equity earnings	275.1		23.5	%	137.3		17.0	%	137.8		100.4	%
Income tax expense	(62.9)		(5.3)	%	(31.9)		(4.0)	%	(31.0)		(97.2)	%
Earnings before equity earnings	212.2		18.2	%	105.4		13.0	%	106.8		101.3	%
Equity earnings, net of tax	1.0		—		0.5		0.1	%	0.5		100.0	%
Net earnings	213.2		18.2	%	105.9		13.1	%	107.3		101.3	%
Net earnings attributable to noncontrolling interests	(5.2)		(0.4)	%	(4.7)		(0.6)	%	(0.5)		(10.6)	%
Net earnings attributable to Snap-on Inc.	$	208.0	17.8	%	$	101.2	12.5	%	$	106.8	105.5	%

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.

40

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Net sales of $1,081.4 million in the second quarter of 2021 increased $357.1 million, or 49.3% from 2020 levels, reflecting a $316.9 million, or 42.5%, organic gain, $19.6 million of acquisition-related sales and $20.6 million of favorable foreign currency translation.

Gross profit of $543.1 million in the second quarter of 2021 increased $201.9 million, or 59.2%, compared to $341.2 million last year. Gross margin (gross profit as a percentage of net sales) of 50.2% in the quarter improved 310 basis points (100 basis points (“bps”) equals 1.0 percent) from the second quarter of 2020 primarily due to higher sales volumes, 30 bps from lower costs related to $2.0 million of exit and disposal activities (“restructuring actions”) recorded in the second quarter of 2020 and benefits from the company’s “Rapid Continuous Improvement” or “RCI” initiatives, partially offset by 20 bps of unfavorable foreign currency effects.

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

Operating expenses of $326.0 million in the second quarter of 2021 compared to $250.1 million in the second quarter of last year. Operating expenses as a percentage of net sales of 30.1% improved 440 bps from last year primarily due to higher sales volumes and 20 bps from lower costs related to $2.0 million of restructuring actions recorded in the second quarter of 2020. These items were partially offset by costs associated with higher stock-based expenses and by 70 bps of unfavorable acquisition effects.

Operating earnings before financial services of $217.1 million in the second quarter of 2021 increased $126.0 million, or 138.3%, compared to $91.1 million in the second quarter of 2020, which included $4.0 million of charges for restructuring actions. As a percentage of net sales, operating earnings before financial services of 20.1% improved 750 bps from 12.6% last year, which included 50 bps of costs from restructuring actions.

Financial services revenue of $86.9 million in the second quarter of 2021 compared to $84.6 million last year. Financial services operating earnings of $68.9 million in the period compared to $57.6 million in 2020.

Operating earnings of $286.0 million in the second quarter of 2021 increased $137.3 million, or 92.3%, compared to $148.7 million last year, which included $4.0 million of charges for restructuring actions. As a percentage of revenues (net sales plus financial services revenue), operating earnings of 24.5% in the quarter compared to 18.4% last year, which included 50 bps of costs from restructuring actions.

Interest expense in the second quarter of 2021 increased $0.9 million compared to last year. See Note 9 to the Condensed Consolidated Financial Statements for information on Snap-on’s debt and credit facilities.

Other income (expense) – net primarily includes net gains and losses associated with hedging and currency exchange rate transactions, non-service components of net periodic benefit costs, and interest income. See Note 17 to the Condensed Consolidated Financial Statements for information on Other income (expense) – net.

The 2021 second quarter effective income tax rate on earnings attributable to Snap-on was 23.3%. The 2020 effective income tax rate was 24.1%, which included a 20 bps increase related to the restructuring actions. See Note 8 to the Condensed Consolidated Financial Statements for information on income taxes.

Net earnings attributable to Snap-on in the second quarter of 2021 were $208.0 million, or $3.76 per diluted share. Net earnings attributable to Snap-on in the second quarter of 2020 were $101.2 million, or $1.85 per diluted share, which included a $3.3 million, or $0.06 per diluted share, after-tax charge related to the restructuring actions.

41

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Results of operations for the six months ended July 3, 2021, and June 27, 2020, are as follows:

	Six Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
Net sales	$	2,106.0	100.0	%	$	1,576.5	100.0	%	$	529.5	33.6	%
Cost of goods sold	(1,049.3)		(49.8)	%	(813.7)		(51.6)	%	(235.6)		(29.0)	%
Gross profit	1,056.7		50.2	%	762.8		48.4	%	293.9		38.5	%
Operating expenses	(638.7)		(30.4)	%	(532.8)		(33.8)	%	(105.9)		(19.9)	%
Operating earnings before financial services	418.0		19.8	%	230.0		14.6	%	188.0		81.7	%
Financial services revenue	175.5		100.0	%	170.5		100.0	%	5.0		2.9	%
Financial services expenses	(41.3)		(23.5)	%	(56.0)		(32.8)	%	14.7		26.3	%
Operating earnings from financial services	134.2		76.5	%	114.5		67.2	%	19.7		17.2	%
Operating earnings	552.2		24.2	%	344.5		19.7	%	207.7		60.3	%
Interest expense	(28.6)		(1.2)	%	(24.8)		(1.4)	%	(3.8)		(15.3)	%
Other income (expense) – net	7.7		0.3	%	3.5		0.2	%	4.2		120.0	%
Earnings before income taxes and equity earnings	531.3		23.3	%	323.2		18.5	%	208.1		64.4	%
Income tax expense	(122.0)		(5.4)	%	(75.8)		(4.3)	%	(46.2)		(60.9)	%
Earnings before equity earnings	409.3		17.9	%	247.4		14.2	%	161.9		65.4	%
Equity earnings, net of tax	1.5		0.1	%	0.5		—		1.0		NM
Net earnings	410.8		18.0	%	247.9		14.2	%	162.9		65.7	%
Net earnings attributable to noncontrolling interests	(10.2)		(0.4)	%	(9.5)		(0.6)	%	(0.7)		(7.4)	%
Net earnings attributable to Snap-on Inc.	$	400.6	17.6	%	$	238.4	13.6	%	$	162.2	68.0	%

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.

Net sales of $2,106.0 million in the first six months of 2021 increased $529.5 million, or 33.6% from 2020 levels, reflecting a $458.8 million, or 28.4%, organic gain, $30.9 million of acquisition-related sales and $39.8 million of favorable foreign currency translation.

Gross profit of $1,056.7 million in the first six months of 2021 increased $293.9 million, or 38.5%, compared to $762.8 million last year. Gross margin of 50.2% in the first six months of 2021 improved 180 basis points from last year primarily due to higher sales volumes, 40 bps from lower costs related to $7.1 million of exit and disposal activities recorded last year and benefits from the company’s RCI initiatives, partially offset by 30 bps of unfavorable foreign currency effects.

Operating expenses of $638.7 million in the first six months of 2021 compared to $532.8 million in 2020. Operating expenses as a percentage of net sales of 30.4% improved 340 bps from last year primarily due to higher sales volumes and 30 bps from lower costs related to $4.4 million of restructuring actions recorded in 2020. These items were partially offset by costs associated with higher stock-based expenses and by 50 bps of unfavorable acquisition effects.

Operating earnings before financial services of $418.0 million in the first six months of 2021 increased $188.0 million, or 81.7%, compared to $230.0 million in 2020, which included $11.5 million of charges for restructuring actions. As a percentage of net sales, operating earnings before financial services of 19.8% improved 520 bps from 14.6% last year, which included 70 bps of costs from restructuring actions.

Financial services revenue of $175.5 million in the first six months of 2021 compared to $170.5 million last year. Financial services operating earnings of $134.2 million in the period compared to $114.5 million in 2020, which included a $2.6 million charge related to higher credit reserves resulting from the economic uncertainty associated with the COVID-19 pandemic.

42

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Operating earnings of $552.2 million in the first six months of 2021 increased $207.7 million, or 60.3%, compared to $344.5 million last year, which included $11.5 million of charges for restructuring actions. As a percentage of revenues, operating earnings of 24.2% compared to 19.7% last year, which included 70 bps of costs from restructuring actions.

Interest expense in the first six months of 2021 increased $3.8 million compared to last year. See Note 9 to the Condensed Consolidated Financial Statements for information on Snap-on’s debt and credit facilities.

Other income (expense) – net primarily includes net gains and losses associated with hedging and currency exchange rate transactions, non-service components of net periodic benefit costs, and interest income. See Note 17 to the Condensed Consolidated Financial Statements for information on Other income (expense) – net.

In the first six months of 2021, Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.4%. The 2020 effective income tax rate was 24.2%, which included a 20 bps increase related to the restructuring actions. See Note 8 to the Condensed Consolidated Financial Statements for information on income taxes.

Net earnings attributable to Snap-on in the first six months of 2021 were $400.6 million, or $7.26 per diluted share. Net earnings attributable to Snap-on in the first six months of 2020 were $238.4 million, or $4.34 per diluted share, which included a $9.3 million, or $0.17 per diluted share, after-tax charge related to the restructuring actions.

Exit and Disposal Activities

Snap-on did not record any costs for exit and disposal activities in the three and six month periods ended July 3, 2021. For the respective three and six month periods ended June 27, 2020, Snap-on recorded costs of $4.0 million and $11.5 million for exit and disposal activities. See Note 7 to the Condensed Consolidated Financial Statements for information on Snap-on’s exit and disposal activities.

Segment Results

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

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

43

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Commercial & Industrial Group

	Three Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
External net sales	$	274.7	78.4	%	$	204.5	78.1	%	$	70.2	34.3	%
Intersegment net sales	75.8		21.6	%	57.4		21.9	%	18.4		32.1	%
Segment net sales	350.5		100.0	%	261.9		100.0	%	88.6		33.8	%
Cost of goods sold	(212.0)		(60.5)	%	(171.7)		(65.6)	%	(40.3)		(23.5)	%
Gross profit	138.5		39.5	%	90.2		34.4	%	48.3		53.5	%
Operating expenses	(83.0)		(23.7)	%	(67.3)		(25.7)	%	(15.7)		(23.3)	%
Segment operating earnings	$	55.5	15.8	%	$	22.9	8.7	%	$	32.6	142.4	%

Segment net sales of $350.5 million in the second quarter of 2021 increased $88.6 million, or 33.8% from 2020 levels, reflecting a $71.3 million, or 26.3%, organic sales increase, $7.7 million of acquisition-related sales and $9.6 million of favorable foreign currency translation. The organic gain reflects higher activity in all of the segment’s operations and includes mid-teen increases in sales to customers in critical industries.

Segment gross margin in the second quarter of 39.5% improved 510 bps from last year, primarily due to benefits from higher sales volumes and 80 bps from lower costs related to $2.0 million of restructuring actions recorded in the second quarter of 2020, partially offset by 60 bps of unfavorable foreign currency effects.

Segment operating expense as a percentage of sales in the second quarter of 23.7% improved 200 bps as compared to 2020 primarily due to higher sales volumes.

As a result of these factors, segment operating earnings of $55.5 million in the second quarter of 2021, including $1.1 million of unfavorable foreign currency effects, increased $32.6 million, or 142.4%, compared to $22.9 million in 2020, which included $2.0 million of restructuring charges. Operating margin (segment operating earnings as a percentage of segment net sales) for the Commercial & Industrial Group of 15.8% in the second quarter of 2021 compared to 8.7% in 2020.

	Six Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
External net sales	$	545.8	78.4	%	$	431.5	76.8	%	$	114.3	26.5	%
Intersegment net sales	150.4		21.6	%	130.3		23.2	%	20.1		15.4	%
Segment net sales	696.2		100.0	%	561.8		100.0	%	134.4		23.9	%
Cost of goods sold	(423.8)		(60.9)	%	(361.1)		(64.3)	%	(62.7)		(17.4)	%
Gross profit	272.4		39.1	%	200.7		35.7	%	71.7		35.7	%
Operating expenses	(166.2)		(23.8)	%	(146.3)		(26.0)	%	(19.9)		(13.6)	%
Segment operating earnings	$	106.2	15.3	%	$	54.4	9.7	%	$	51.8	95.2	%

Segment net sales of $696.2 million in the first six months of 2021 increased $134.4 million, or 23.9% from 2020 levels, reflecting a $100.6 million, or 17.3%, organic sales increase, $15.0 million of acquisition-related sales and $18.8 million of favorable foreign currency translation. The organic increase primarily includes gains of over 25% in the segment’s European-based hand tools business and Asia Pacific operations, as well as a high single-digit increase to customers in critical industries.

44

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Segment gross margin in the first six months of 39.1% improved 340 bps from last year, primarily due to benefits from higher sales volumes and 110 bps from lower costs related to $6.4 million of restructuring actions recorded in 2020, partially offset by 60 bps of unfavorable foreign currency effects.

Segment operating expense as a percentage of sales in the first six months of 23.8% improved 220 bps as compared to 2020 primarily due to higher sales volumes.

As a result of these factors, segment operating earnings of $106.2 million in the first six months of 2021, including $2.5 million of unfavorable foreign currency effects, increased $51.8 million, or 95.2%, compared to $54.4 million in 2020, which included $6.4 million of restructuring charges. Operating margin for the Commercial & Industrial Group of 15.3% in the first six months of 2021 compared to 9.7% in 2020.

Snap-on Tools Group

	Three Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
Segment net sales	$	484.1	100.0	%	$	323.3	100.0	%	$	160.8	49.7	%
Cost of goods sold	(257.6)		(53.2)	%	(188.5)		(58.3)	%	(69.1)		(36.7)	%
Gross profit	226.5		46.8	%	134.8		41.7	%	91.7		68.0	%
Operating expenses	(123.0)		(25.4)	%	(96.4)		(29.8)	%	(26.6)		(27.6)	%
Segment operating earnings	$	103.5	21.4	%	$	38.4	11.9	%	$	65.1	169.5	%

Segment net sales of $484.1 million in the second quarter of 2021 increased $160.8 million, or 49.7% from 2020 levels, reflecting a $154.1 million, or 46.7%, organic sales gain and $6.7 million of favorable foreign currency translation. The organic increase reflects a gain of approximately 40% in the U.S. franchise business and a gain of approximately 80% in the segment’s international operations.

Segment gross margin in the second quarter of 46.8% improved 510 bps from last year primarily due to higher sales volumes, benefits from RCI initiatives, and 50 bps of favorable foreign currency effects.

Segment operating expenses as a percentage of net sales in the second quarter of 25.4% improved 440 bps from last year primarily due to higher sales volumes and 20 bps from lower costs related to $0.6 million of restructuring actions recorded in 2020, partially offset by higher stock-based expenses related to the company’s franchisee stock purchase plan.

As a result of these factors, segment operating earnings of $103.5 million in the second quarter of 2021, including $3.6 million of favorable foreign currency effects, increased $65.1 million, or 169.5%, compared to $38.4 million in 2020, which included $0.6 million of restructuring charges. Operating margin for the Snap-on Tools Group of 21.4% in the second quarter of 2021 compared to 11.9% last year.

	Six Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
Segment net sales	$	962.4	100.0	%	$	699.2	100.0	%	$	263.2	37.6	%
Cost of goods sold	(516.2)		(53.6)	%	(404.0)		(57.8)	%	(112.2)		(27.8)	%
Gross profit	446.2		46.4	%	295.2		42.2	%	151.0		51.2	%
Operating expenses	(243.8)		(25.4)	%	(208.2)		(29.8)	%	(35.6)		(17.1)	%
Segment operating earnings	$	202.4	21.0	%	$	87.0	12.4	%	$	115.4	132.6	%

Segment net sales of $962.4 million in the first six months of 2021 increased $263.2 million, or 37.6% from 2020 levels, reflecting a $249.8 million, or 35.1%, organic sales gain and $13.4 million of favorable foreign currency translation. The organic increase reflects a gain of approximately 30% in the U.S. franchise business and a gain of approximately 50% in the segment’s international operations.

45

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Segment gross margin in the first six months of 46.4% improved 420 bps from last year primarily due to higher sales volumes, benefits from RCI initiatives, and 40 bps of favorable foreign currency effects.

Segment operating expenses as a percentage of net sales in the first six months of 25.4% improved 440 bps from last year primarily due to higher sales volumes and 10 bps from lower costs related to $0.6 million of restructuring actions recorded in 2020, partially offset by higher stock-based expenses related to the company’s franchisee stock purchase plan.

As a result of these factors, segment operating earnings of $202.4 million in the first six months of 2021, including $5.9 million of favorable foreign currency effects, increased $115.4 million, or 132.6%, compared to $87.0 million in 2020. Operating margin for the Snap-on Tools Group of 21.0% in the first six months of 2021 compared to 12.4% last year.

Repair Systems & Information Group

	Three Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
External net sales	$	322.6	80.9	%	$	196.5	80.2	%	$	126.1	64.2	%
Intersegment net sales	76.0		19.1	%	48.5		19.8	%	27.5		56.7	%
Segment net sales	398.6		100.0	%	245.0		100.0	%	153.6		62.7	%
Cost of goods sold	(220.5)		(55.3)	%	(128.8)		(52.6)	%	(91.7)		(71.2)	%
Gross profit	178.1		44.7	%	116.2		47.4	%	61.9		53.3	%
Operating expenses	(91.4)		(22.9)	%	(65.6)		(26.7)	%	(25.8)		(39.3)	%
Segment operating earnings	$	86.7	21.8	%	$	50.6	20.7	%	$	36.1	71.3	%

Segment net sales of $398.6 million in the second quarter of 2021 increased $153.6 million, or 62.7% from 2020 levels, reflecting a $135.7 million, or 54.1%, organic sales increase, $11.9 million of acquisition-related sales and $6.0 million of favorable foreign currency translation. The higher activity reflects an increase of approximately 80% in sales of undercar equipment, as well as a gain of approximately 50% in sales to OEM dealerships and an increase of approximately 30% in sales of diagnostic and repair information products to independent repair shop owners and managers.

Segment gross margin in the second quarter of 44.7% declined 270 bps from last year primarily due to the impact of higher sales in lower gross margin businesses and 40 bps of unfavorable foreign currency effects, partially offset by 70 bps of benefits from acquisitions.

Segment operating expenses as a percentage of net sales in the second quarter of 22.9%, improved 380 bps from 2020 primarily due to higher sales volumes and 50 bps from lower costs related to $1.4 million of restructuring actions recorded in the second quarter of 2020, partially offset by 190 bps of unfavorable acquisition effects.

As a result of these factors, segment operating earnings of $86.7 million in the second quarter of 2021, including $1.1 million of unfavorable foreign currency effects, increased $36.1 million, or 71.3%, from $50.6 million in 2020, which included $1.4 million of restructuring charges. Operating margin for the Repair Systems & Information Group of 21.8% in the second quarter of 2021 compared to 20.7% last year.

46

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

	Six Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
External net sales	$	597.8	80.1	%	$	445.8	79.7	%	$	152.0	34.1	%
Intersegment net sales	148.4		19.9	%	113.8		20.3	%	34.6		30.4	%
Segment net sales	746.2		100.0	%	559.6		100.0	%	186.6		33.3	%
Cost of goods sold	(408.1)		(54.7)	%	(292.7)		(52.3)	%	(115.4)		(39.4)	%
Gross profit	338.1		45.3	%	266.9		47.7	%	71.2		26.7	%
Operating expenses	(170.0)		(22.8)	%	(139.0)		(24.8)	%	(31.0)		(22.3)	%
Segment operating earnings	$	168.1	22.5	%	$	127.9	22.9	%	$	40.2	31.4	%

Segment net sales of $746.2 million in the first six months of 2021 increased $186.6 million, or 33.3% from 2020 levels, reflecting a $159.9 million, or 28.0%, organic sales increase, $15.9 million of acquisition-related sales and $10.8 million of favorable foreign currency translation. The organic gain reflects higher activity in all of the segment’s operations and includes high-teen increases in sales of diagnostic and repair information products to independent repair shop owners and managers.

Segment gross margin in the first six months of 45.3% declined 240 bps from last year primarily due to the impact of higher sales in lower gross margin businesses and 50 bps of unfavorable foreign currency effects, partially offset by 50 bps of benefits from acquisitions.

Segment operating expenses as a percentage of net sales in the first six months of 22.8%, improved 200 bps from 2020 primarily due to higher sales volumes and 70 bps from lower costs related to $3.8 million of restructuring actions recorded in 2020, partially offset by 140 bps of unfavorable acquisition effects.

As a result of these factors, segment operating earnings of $168.1 million in the first six months of 2021, including $2.6 million of unfavorable foreign currency effects, increased $40.2 million, or 31.4%, from $127.9 million in 2020, which included $4.5 million of restructuring charges. Operating margin for the Repair Systems & Information Group of 22.5% in the first six months of 2021 compared to 22.9% last year.

Financial Services

	Three Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
Financial services revenue	$	86.9	100.0	%	$	84.6	100.0	%	$	2.3	2.7	%
Financial services expenses	(18.0)		(20.7)	%	(27.0)		(31.9)	%	9.0		33.3	%
Segment operating earnings	$	68.9	79.3	%	$	57.6	68.1	%	$	11.3	19.6	%

Financial services revenue in the second quarter of 2021 increased $2.3 million, or 2.7%, from 2020, primarily due to $2.6 million from growth in the company’s financial services portfolio, partially offset by a $0.3 million decrease from lower average portfolio yields. In the second quarters of 2021 and 2020, the respective average yields on finance receivables were 17.5% and 17.6%. In the second quarters of 2021 and 2020, the respective average yields on contract receivables were 8.5% and 8.2%. The lower yield on contract receivables in the second quarter of 2020 includes the impact of business operation support loans provided to franchisees during that period in response to the COVID-19 environment. Originations of $285.8 million in the second quarter of 2021 increased $30.0 million, or 11.7%, from 2020 levels.

Financial services expenses primarily include personnel-related and other general and administrative costs, as well as provisions for credit losses. These expenses are generally more dependent on changes in the size of the financial services portfolio than they are on the revenue of the segment. Financial services expenses in the second quarter of 2021 decreased primarily due to lower provisions for credit losses compared to the second quarter of 2020. As a percentage of the average financial services portfolio, financial services expenses were 0.8% in the second quarter of 2021 and 1.3% in 2020.

Financial services operating earnings in the second quarter of 2021, including $1.0 million of favorable foreign currency effects, increased $11.3 million, or 19.6%, from 2020 levels.

47

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

	Six Months Ended
(Amounts in millions)	July 3, 2021				June 27, 2020				Change
Financial services revenue	$	175.5	100.0	%	$	170.5	100.0	%	$	5.0	2.9	%
Financial services expenses	(41.3)		(23.5)	%	(56.0)		(32.8)	%	14.7		26.3	%
Segment operating earnings	$	134.2	76.5	%	$	114.5	67.2	%	$	19.7	17.2	%

Financial services revenue in the first six months of 2021 increased $5.0 million, or 2.9%, from 2020, primarily due to $6.2 million from growth in the company’s financial services portfolio, partially offset by a $1.2 million decrease from lower average portfolio yields. In the first six months of 2021 and 2020, the respective average yields on finance receivables were 17.5% and 17.7%. In the first six months of 2021 and 2020, the respective average yields on contract receivables were 8.4% and 8.6%. Originations of $547.6 million in the first six months of 2021 increased $36.2 million, or 7.1%, from 2020 levels.

Financial services expenses in the first six months of 2021 decreased primarily due to lower provisions for credit losses compared to 2020, which included a $2.6 million charge related to higher credit reserves resulting from the economic uncertainty associated with the COVID-19 pandemic. As a percentage of the average financial services portfolio, financial services expenses were 1.9% in the first six months of 2021 and 2.6% in 2020.

Financial services operating earnings in the first six months of 2021, including $1.7 million of favorable foreign currency effects, increased $19.7 million, or 17.2%, from 2020 levels.

Corporate

Snap-on’s second quarter 2021 general corporate expenses of $28.6 million compared to $20.8 million last year. Snap-on’s general corporate expenses in the first six months of 2021 of $58.7 million compared to $39.3 million last year. The increased year-over-year general corporate expenses primarily reflect higher stock-based compensation, including costs associated with the company’s employee stock purchase plan.

48

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Non-GAAP Supplemental Data

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

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

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Statements of Earnings information for the three months ended July 3, 2021, and June 27, 2020, is as follows:

	Operations*				Financial Services
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net sales	$	1,081.4	$	724.3	$	—	$	—
Cost of goods sold	(538.3)		(383.1)		—		—
Gross profit	543.1		341.2		—		—
Operating expenses	(326.0)		(250.1)		—		—
Operating earnings before financial services	217.1		91.1		—		—
Financial services revenue	—		—		86.9		84.6
Financial services expenses	—		—		(18.0)		(27.0)
Operating earnings from financial services	—		—		68.9		57.6
Operating earnings	217.1		91.1		68.9		57.6
Interest expense	(14.2)		(13.4)		(0.1)		—
Intersegment interest income (expense) – net	14.8		16.5		(14.8)		(16.5)
Other income (expense) – net	3.3		2.0		0.1		—
Earnings before income taxes and equity earnings	221.0		96.2		54.1		41.1
Income tax expense	(49.2)		(21.3)		(13.7)		(10.6)
Earnings before equity earnings	171.8		74.9		40.4		30.5
Financial services – net earnings attributable to Snap-on	40.4		30.5		—		—
Equity earnings, net of tax	1.0		0.5		—		—
Net earnings	213.2		105.9		40.4		30.5
Net earnings attributable to noncontrolling interests	(5.2)		(4.7)		—		—
Net earnings attributable to Snap-on	$	208.0	$	101.2	$	40.4	$	30.5

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

49

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Statements of Earnings information for the six months ended July 3, 2021, and June 27, 2020, is as follows:

	Operations*				Financial Services
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net sales	$	2,106.0	$	1,576.5	$	—	$	—
Cost of goods sold	(1,049.3)		(813.7)		—		—
Gross profit	1,056.7		762.8		—		—
Operating expenses	(638.7)		(532.8)		—		—
Operating earnings before financial services	418.0		230.0		—		—
Financial services revenue	—		—		175.5		170.5
Financial services expenses	—		—		(41.3)		(56.0)
Operating earnings from financial services	—		—		134.2		114.5
Operating earnings	418.0		230.0		134.2		114.5
Interest expense	(28.5)		(24.7)		(0.1)		(0.1)
Intersegment interest income (expense) – net	29.2		34.6		(29.2)		(34.6)
Other income (expense) – net	7.6		3.5		0.1		—
Earnings before income taxes and equity earnings	426.3		243.4		105.0		79.8
Income tax expense	(95.7)		(55.1)		(26.3)		(20.7)
Earnings before equity earnings	330.6		188.3		78.7		59.1
Financial services – net earnings attributable to Snap-on	78.7		59.1		—		—
Equity earnings, net of tax	1.5		0.5		—		—
Net earnings	410.8		247.9		78.7		59.1
Net earnings attributable to noncontrolling interests	(10.2)		(9.5)		—		—
Net earnings attributable to Snap-on	$	400.6	$	238.4	$	78.7	$	59.1

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

50

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Non-GAAP Supplemental Consolidating Data – Supplemental Condensed Balance Sheet information as of July 3, 2021, and January 2, 2021, is as follows:

 

	Operations*				Financial Services
(Amounts in millions)	July 3, 2021		January 2, 2021		July 3, 2021		January 2, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	965.6	$	923.2	$	0.3	$	0.2
Intersegment receivables	15.2		14.6		—		0.2
Trade and other accounts receivable – net	644.7		639.7		0.7		1.0
Finance receivables – net	—		—		535.3		530.2
Contract receivables – net	6.8		7.0		97.1		105.5
Inventories – net	760.9		746.5		—		—
Prepaid expenses and other assets	138.2		131.1		9.6		7.8
Total current assets	2,531.4		2,462.1		643.0		644.9
Property and equipment – net	524.1		524.4		2.0		1.8
Operating lease right-of-use assets	50.3		49.7		2.1		2.2
Investment in Financial Services	349.4		349.8		—		—
Deferred income tax assets	27.7		27.6		24.4		22.7
Intersegment long-term notes receivable	314.5		316.9		—		—
Long-term finance receivables – net	—		—		1,124.4		1,136.3
Long-term contract receivables – net	10.9		12.4		369.0		362.3
Goodwill	1,177.6		982.4		—		—
Other intangibles – net	255.2		260.8		—		—
Other assets	86.5		103.9		0.1		0.1
Total assets	$	5,327.6	$	5,090.0	$	2,165.0	$	2,170.3

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

51

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

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

	Operations*				Financial Services
(Amounts in millions)	July 3, 2021		January 2, 2021		July 3, 2021		January 2, 2021
LIABILITIES AND EQUITY
Current liabilities:
Notes payable and current maturities of long-term debt	$	18.1	$	18.5	$	250.0	$	250.0
Accounts payable	279.4		222.3		0.8		0.6
Intersegment payables	—		—		15.2		14.8
Accrued benefits	54.2		59.7		—		—
Accrued compensation	89.2		87.2		2.5		2.7
Franchisee deposits	78.3		78.4		—		—
Other accrued liabilities	425.5		418.8		33.6		35.9
Total current liabilities	944.7		884.9		302.1		304.0
Long-term debt and intersegment long-term debt	—		—		1,497.0		1,499.0
Deferred income tax liabilities	81.8		70.4		—		—
Retiree health care benefits	33.0		34.5		—		—
Pension liabilities	111.6		127.1		—		—
Operating lease liabilities	32.3		31.6		1.9		2.4
Other long-term liabilities	98.7		94.9		14.6		15.1
Total liabilities	1,302.1		1,243.4		1,815.6		1,820.5
Total shareholders’ equity attributable to Snap-on	4,003.4		3,824.9		349.4		349.8
Noncontrolling interests	22.1		21.7		—		—
Total equity	4,025.5		3,846.6		349.4		349.8
Total liabilities and equity	$	5,327.6	$	5,090.0	$	2,165.0	$	2,170.3

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

52

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Liquidity and Capital Resources

Snap-on’s growth has historically been funded by a combination of cash provided by operating activities and debt financing. Snap-on believes that its cash from operations and collections of finance receivables, coupled with its sources of borrowings and available cash on hand, are sufficient to fund its currently anticipated requirements for scheduled debt repayments (including the maturity of the 2021 Notes as defined below), payments of interest and dividends, new receivables originated by our financial services businesses, capital expenditures, working capital, the funding of pension plans, and funding for share repurchases and acquisitions, if and as they arise.

Due to Snap-on’s credit rating over the years, external funds have been available at an acceptable cost. As of the close of business on July 16, 2021, Snap-on’s long-term debt and commercial paper were rated, respectively, A2 and P-1 by Moody’s Investors Service; A- and A-2 by Standard & Poor’s; and A and F1 by Fitch Ratings. Snap-on believes that its current credit arrangements are sound and that the strength of its balance sheet affords the company the financial flexibility, including through access to financial markets for potential new financing, to respond to both internal growth opportunities and those available through acquisitions. However, based on current macroeconomic conditions resulting from the on-going uncertainty caused by the COVID-19 pandemic, Snap-on cannot provide any assurances of the availability of future financing or the terms on which it might be available, or that its debt ratings may not decrease.

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

As of July 3, 2021, working capital (current assets less current liabilities) of $1,927.6 million increased $9.5 million from $1,918.1 million as of January 2, 2021 (fiscal 2020 year-end) primarily as a result of the net changes discussed below.

The following represents the company’s working capital position as of July 3, 2021, and January 2, 2021:

(Amounts in millions)	July 3, 2021		January 2, 2021
Cash and cash equivalents	$	965.9	$	923.4
Trade and other accounts receivable – net	645.4		640.7
Finance receivables – net	535.3		530.2
Contract receivables – net	103.9		112.5
Inventories – net	760.9		746.5
Prepaid expenses and other assets	138.3		129.7
Total current assets	3,149.7		3,083.0
Notes payable and current maturities of long-term debt	(268.1)		(268.5)
Accounts payable	(280.2)		(222.9)
Other current liabilities	(673.8)		(673.5)
Total current liabilities	(1,222.1)		(1,164.9)
Working capital	$	1,927.6	$	1,918.1

Cash and cash equivalents of $965.9 million as of July 3, 2021, increased $42.5 million from 2020 year-end levels primarily due to: (i) $557.5 million of cash generated from operations; (ii) $447.9 million of cash from collections of finance receivables; (iii) $154.8 million of cash proceeds from stock purchase and option plan exercises and (iv) $2.9 million of net proceeds from other short-term borrowings. These increases in cash and cash equivalents were partially offset by: (i) the funding of $454.5 million of new finance receivables; (ii) the repurchase of 1,288,900 shares of the company’s common stock for $289.3 million; (iii) the funding of $195.8 million for acquisitions; (iv) dividend payments to shareholders of $133.4 million; and (v) the funding of $37.6 million of capital expenditures.

Of the $965.9 million of cash and cash equivalents as of July 3, 2021, $276.5 million was held outside of the United States. Snap-on maintains non-U.S. funds in its foreign operations to: (i) provide adequate working capital; (ii) satisfy various regulatory requirements; and/or (iii) take advantage of business expansion opportunities as they arise. Although the Tax Cuts and Jobs Act (“Tax Act”) generally eliminated U.S. federal taxation of dividends from foreign subsidiaries, such dividends may still be subject to state income taxation and foreign withholding taxes. Snap-on periodically evaluates its cash held outside the United States and may pursue opportunities to repatriate certain foreign cash amounts to the extent that it can be accomplished in a tax efficient manner.

53

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Trade and other accounts receivable – net of $645.4 million as of July 3, 2021, increased $4.7 million from 2020 year-end levels, primarily due to $8.9 million from acquisitions, partially offset by $1.3 million of foreign currency translation. Days sales outstanding (trade and other accounts receivable – net as of the respective period end, divided by the respective trailing 12 months sales, times 360 days) was 56 days at July 3, 2021, and 64 days at January 2, 2021.

The current portions of net finance and contract receivables of $639.2 million as of July 3, 2021, compared to $642.7 million at 2020 year end. The long-term portions of net finance and contract receivables of $1,504.3 million as of July 3, 2021, compared to $1,511.0 million at 2020 year end. The combined $10.2 million decrease in net current and long-term finance and contract receivables over 2020 year-end levels primarily reflects increases from originations and $6.4 million of foreign currency translation, more than offset by collections and other reductions.

Inventories – net of $760.9 million as of July 3, 2021, increased $14.4 million from 2020 year-end levels primarily to support higher customer demand and new product innovation and $2.3 million from acquisitions, partially offset by $2.1 million of foreign currency translation. Inventory turns (trailing 12 months of cost of goods sold, divided by the average of the beginning and ending inventory balance for the trailing 12 months) were 2.7 turns and 2.4 turns as of July 3, 2021, and January 2, 2021, respectively. Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 58% and 57% of total inventories as of July 3, 2021 and January 2, 2021, respectively. All other inventories are accounted for using the last-in, first-out (“LIFO”) method. The company’s LIFO reserve was $84.8 million and $84.0 million as of July 3, 2021, and January 2, 2021, respectively.

Notes payable and current maturities of long-term debt of $268.1 million as of July 3, 2021, consisted of $250.0 million of unsecured 6.125% notes that mature on September 1, 2021 (the “2021 Notes”) and $17.5 million of other notes and $0.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps. Notes payable and current maturities of long-term debt of $268.5 million as of 2020 year end, consisted of $250.0 million of the 2021 Notes, and $14.9 million of other notes and $3.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

Accounts payable of $280.2 million as of July 3, 2021, increased $57.3 million from 2020 year-end levels primarily due to the timing of payments and $3.6 million from acquisitions, partially offset by $1.1 million of foreign currency translation.

Other accrued liabilities of $449.6 million as of July 3, 2021, increased $4.1 million from 2020 year-end levels primarily due to $2.4 million from acquisitions, partially offset by $1.4 million of foreign currency translation.

Long-term debt of $1,182.5 million as of July 3, 2021, consisted of: (i) $300 million of unsecured 3.25% notes that mature on March 1, 2027 (the “2027 Notes”); (ii) $400 million of unsecured 4.10% notes that mature on March 1, 2048 (the “2048 Notes”); and (iii) $500 million of 3.10% notes that mature on May 1, 2050 (“the 2050 Notes”), partially offset by $17.5 million from the net effects of debt amortization costs.

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 July 3, 2021. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of Consolidated Net Debt to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of July 3, 2021, the company’s actual ratios of 0.11 and 0.44 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.

54

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Snap-on believes it has sufficient available cash and access to both committed and uncommitted credit facilities to cover its expected funding needs on both a short-term and long-term basis, however, it is continuing to monitor the impact of the COVID-19 pandemic on its business and the credit and financial markets. Snap-on manages its aggregate short-term borrowings so as not to exceed its availability under the Credit Facility. Snap-on believes that it can access short-term debt markets, predominantly through commercial paper issuances and existing lines of credit, to fund its short-term requirements and to ensure near-term liquidity. Snap-on regularly monitors the credit and financial markets and, if it believes conditions are favorable, it may take advantage of such conditions to issue long-term debt to further improve its liquidity and capital resources. Near-term liquidity requirements for Snap-on include scheduled debt payments, including the maturity of the 2021 Notes, payments of interest and dividends, funding to support new receivables originated by our financial services businesses, capital expenditures, working capital, the funding of pension plans, and funding for share repurchases and acquisitions, if and as they arise. Snap-on intends to make contributions of $9.2 million to its foreign pension plans and $2.2 million to its domestic pension plans in 2021, as required by law. Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2021.

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

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

Operating Activities

Net cash provided by operating activities was $557.5 million and $467.0 million in the first six months of 2021 and 2020, respectively. The $90.5 million year-over-year increase in net cash provided by operating activities primarily reflects a $162.9 million increase in net earnings, offset by a $80.5 million decrease from net changes in operating assets and liabilities.

Investing Activities

Net cash used by investing activities of $236.9 million in the first six months of 2021 included additions to finance receivables of $454.5 million, offset by collections of $447.9 million. Net cash used by investing activities of $95.4 million in the first six months of 2020 included additions to finance receivables of $414.6 million, partially offset by collections of $357.5 million. Finance receivables are comprised of extended-term installment payment contracts to both technicians and independent shop owners (i.e., franchisees’ customers) to enable them to purchase tools and diagnostic and equipment products on an extended-term payment plan, generally with payment terms of approximately four years.

Net cash used by investing activities in the respective first six month periods of 2021 and 2020 also included a net $195.8 million and $6.1 million for acquisitions. See Note 3 to the Condensed Consolidated Financial Statements for information about acquisitions.

Capital expenditures were $37.6 million and $29.0 million in the first six months of 2021 and 2020, respectively. Capital expenditures in both years included continued investments related to the company’s execution of its strategic Value Creation Processes around safety, quality, customer connection, innovation and RCI.

Financing Activities

Net cash used by financing activities of $278.9 million in the first six months of 2021 included net proceeds from notes payable and other short-term borrowings of $2.9 million. Net cash provided by financing activities of $132.4 million in the first six months of 2020 included Snap-on’s sale, on April 30, 2020, of $500 million of the 2050 Notes at a discount, from which Snap-on received $489.9 million of net proceeds, reflecting $4.4 million of transaction costs, partially offset by repayments of notes payable and other short-term borrowings of $190.0 million.

55

SNAP-ON INCORPORATED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS

(continued)

Proceeds from stock purchase and option plan exercises totaled $154.8 million and $13.8 million in the first six months of 2021 and 2020, respectively. Snap-on has undertaken stock repurchases from time to time to offset dilution created by shares issued for employee and franchisee stock purchase plans, as well as stock options, and for other corporate purposes. In the first six months of 2021, Snap-on repurchased 1,288,900 shares of its common stock for $289.3 million under its previously announced share repurchase programs. In the first six months of 2020, Snap-on repurchased 349,000 shares of its common stock for $50.5 million under its previously announced share repurchase programs. As of July 3, 2021, Snap-on had remaining availability to repurchase up to an additional $251.6 million in common stock pursuant to its Board’s authorizations. The purchase of Snap-on common stock is at the company’s discretion, subject to prevailing financial and market conditions. Snap-on believes that its cash generated from operations, available cash on hand, and funds available from its credit facilities, will be sufficient to fund the company’s additional share repurchases, if any.

Snap-on has paid consecutive quarterly cash dividends, without interruption or reduction, since 1939. Cash dividends totaled $133.4 million and $117.7 million in the first six months of 2021 and 2020, respectively. On November 6, 2020, the Board increased the quarterly cash dividend by 13.9% to $1.23 per share ($4.92 per share annualized). Snap-on believes that its cash generated from operations, available cash on hand, and funds available from its credit facilities, will be sufficient to pay dividends.

Off-Balance Sheet Arrangements

The company had no off-balance sheet arrangements as of July 3, 2021.

Critical Accounting Policies and Estimates

Snap-on’s discussion of its critical accounting policies and estimates, contained in its Annual Report on Form 10-K for the fiscal year ended January 2, 2021, have not materially changed since the report was filed.

Outlook

With ongoing advancement against the COVID-19 pandemic, many national and local governments around the world have revised restrictive measures that were previously in place, and economic activity continues to progress towards pre-pandemic levels in most geographies. During 2021, the company believes the trajectory of advancement may be uncertain due to the evolving nature and duration of the pandemic and quarterly year-over-year comparisons to 2020 performance may be less meaningful than comparisons to pre-pandemic periods.

Snap-on expects to make continued progress along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, the company expects that capital expenditures in 2021 will be in the range of $90 million to $100 million, of which $37.6 million was incurred in the first six months of the year. Snap-on continues to respond to the global macroeconomic challenges through its RCI, sourcing and other cost reduction initiatives.

Snap-on currently anticipates that its full year 2021 effective income tax rate will be in the range of 23% to 24%.

56

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Market, Credit and Economic Risks

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

Foreign Currency Risk Management

Snap-on has significant international operations and is subject to certain risks inherent with foreign operations that include currency fluctuations. Foreign currency exchange risk exists to the extent that Snap-on has payment obligations or receipts denominated in currencies other than the functional currency, including intercompany loans denominated in foreign currencies. To manage these exposures, Snap-on identifies naturally offsetting positions and then purchases hedging instruments to protect the residual net exposures. See Note 10 to the Condensed Consolidated Financial Statements for information on foreign currency risk management.

Interest Rate Risk Management

Snap-on aims to control funding costs by managing the exposure created by the differing maturities and interest rate structures of Snap-on’s borrowings through the use of interest rate swap agreements. Treasury lock agreements are used from time to time to manage the potential change in interest rates in anticipation of the issuance of fixed rate debt. See Note 10 to the Condensed Consolidated Financial Statements for information on interest rate risk management.

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

The estimated maximum potential net one-day loss in fair value, calculated using the VAR model, as of July 3, 2021, was $17.6 million, consisting of an $18.0 million loss on interest rate-sensitive financial instruments and a $0.4 million gain on foreign currency-sensitive financial instruments. The VAR model is a risk management tool and does not purport to represent actual losses in fair value that will be incurred by Snap-on, nor does it consider the potential effect of favorable changes in market factors.

Stock-based Deferred Compensation Risk Management

Snap-on aims to manage market risk associated with the stock-based portion of its deferred compensation plans through the use of equity forwards. Equity forwards are used to aid in offsetting the potential mark-to-market effect on stock-based deferred compensation from changes in Snap-on’s stock price. Since stock-based deferred compensation liabilities increase as the company’s stock price rises and decrease as the company’s stock price declines, the equity forwards are intended to mitigate the potential impact on deferred compensation expense that may result from such mark-to-market changes. See Note 10 to the Condensed Consolidated Financial Statements for additional information on stock-based deferred compensation risk management.

57

Credit Risk

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

Counterparty Risk

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

Economic Risk

Economic risk is the possibility of loss resulting from economic instability in certain areas of the world. Snap-on continually monitors its exposure in these markets. For example, the company is monitoring the impact of and developments related to COVID-19, which has created global economic uncertainty. In addition, the company is monitoring developments related to the United Kingdom’s exit from the European Union, and the effects this may have on the world economy and the company. Inflation has not had a significant impact on the company.

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

Item 4: Controls and Procedures

Evaluation of Disclosure Controls and Procedures

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

In accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), the company’s management evaluated, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of the company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of July 3, 2021. Based upon their evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of July 3, 2021, to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission rules and forms, and to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control

There has not been any change in the company’s internal control over financial reporting during the quarter ended July 3, 2021, that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f)).

58

PART II. OTHER INFORMATION

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

Issuer Purchases of Equity Securities

The following chart discloses information regarding the shares of Snap-on’s common stock repurchased by the company during the second quarter of fiscal 2021, all of which were purchased pursuant to the Board’s authorizations that the company has publicly announced. Snap-on has undertaken stock repurchases from time to time to offset dilution created by shares issued for employee and franchisee stock purchase plans and equity plans, and for other corporate purposes, as well as when the company believes market conditions are favorable. The repurchase of Snap-on common stock is at the company’s discretion, subject to prevailing financial and market conditions, and pursuant to the Board’s authorizations that the company has publicly announced.

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*
04/04/2021 to 05/01/2021	85,000	$238.14	85,000	$274.3 million
05/02/2021 to 05/29/2021	299,500	$250.20	299,500	$292.5 million
05/30/2021 to 07/03/2021	182,400	$231.46	182,400	$251.6 million
Total/Average	566,900	$242.36	566,900	N/A
N/A: Not applicable

* Subject to further adjustment pursuant to the 1996 Authorization described below, as of July 3, 2021, the approximate value of shares that may yet be

purchased pursuant to the outstanding Board authorizations discussed below is $251.6 million.

•In 1996, the Board authorized the company to repurchase shares of the company’s common stock from time to time in the open market or in privately negotiated transactions (the “1996 Authorization”). The 1996 Authorization allows the repurchase of up to the number of shares issued or delivered from treasury from time to time under the various plans the company has in place that call for the issuance of the company’s common stock. Because the number of shares that are purchased pursuant to the 1996 Authorization will change from time to time as (i) the company issues shares under its various plans; and (ii) shares are repurchased pursuant to this authorization, the number of shares authorized to be repurchased will vary from time to time. The 1996 Authorization will expire when terminated by the Board. When calculating the approximate value of shares that the company may yet purchase under the 1996 Authorization, the company assumed a price of $237.60, $254.62 and $223.91 per share of common stock as of the end of the respective fiscal 2021 months ended May 1, 2021, May 29, 2021, and July 3, 2021.

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

59

Other Purchases or Sales of Equity Securities

The following chart discloses information regarding transactions in shares of Snap-on’s common stock by Citibank, N.A. (“Citibank”) during the second quarter of 2021 pursuant to a prepaid equity forward agreement (the “Agreement”) with Citibank that is intended to reduce the impact of market risk associated with the stock-based portion of the company’s deferred compensation plans. The company’s stock-based deferred compensation liabilities, which are impacted by changes in the company’s stock price, increase as the company’s stock price rises and decrease as the company’s stock price declines. Pursuant to the Agreement, Citibank may purchase or sell shares of the company’s common stock (for Citibank’s account) in the market or in privately negotiated transactions. The Agreement has no stated expiration date and does not provide for Snap-on to purchase or repurchase its shares.

Citibank Sales of Snap-on Stock
Period	Shares sold	Average price per share
04/04/2021 to 05/01/2021	—	—
05/02/2021 to 05/29/2021	—	—
05/30/2021 to 07/03/2021	8,400	$251.82
Total/Average	8,400	$251.82

60

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

61

SIGNATURES

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

 

	SNAP-ON INCORPORATED
Date: July 22, 2021	/s/ Aldo J. Pagliari
	Aldo J. Pagliari, Principal Financial Officer,
	Senior Vice President – Finance and
	Chief Financial Officer

62

EX-31.1

EXHIBIT 31.1

Certification of the Chief Executive Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Nicholas T. Pinchuk, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: July 22, 2021

/s/ Nicholas T. Pinchuk

Nicholas T. Pinchuk

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of the Principal Financial Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Aldo J. Pagliari, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: July 22, 2021

/s/ Aldo J. Pagliari

Aldo J. Pagliari

Principal Financial Officer

EX-32.1

EXHIBIT 32.1

Certification of Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Snap-on Incorporated (the “Company”) on Form 10-Q for the period ended July 3, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Nicholas T. Pinchuk as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

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

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

/s/ Nicholas T. Pinchuk

Nicholas T. Pinchuk

Chief Executive Officer

July 22, 2021

EX-32.2

EXHIBIT 32.2

Certification of Principal Financial Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Snap-on Incorporated (the “Company”) on Form 10-Q for the period ended July 3, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Aldo J. Pagliari as Principal Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

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

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

/s/ Aldo J. Pagliari

Aldo J. Pagliari

Principal Financial Officer

July 22, 2021

XML

Cover - shares	6 Months Ended
	Jul. 03, 2021	Jul. 16, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 03, 2021
Document Transition Report	false
Entity File Number	1-7724
Entity Registrant Name	Snap-on Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	39-0622040
Entity Address, Address Line One	2801 80th Street,
Entity Address, City or Town	Kenosha,
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53143
City Area Code	262
Local Phone Number	656-5200
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	SNA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		53,970,510
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000091440
Current Fiscal Year End Date	--01-01

XML

Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Net sales	$ 1,168.3	$ 808.9	$ 2,281.5	$ 1,747.0
Operating earnings	286.0	148.7	552.2	344.5
Interest expense	(14.3)	(13.4)	(28.6)	(24.8)
Other income (expense) – net	3.4	2.0	7.7	3.5
Earnings before income taxes and equity earnings	275.1	137.3	531.3	323.2
Income tax expense	(62.9)	(31.9)	(122.0)	(75.8)
Earnings before equity earnings	212.2	105.4	409.3	247.4
Equity earnings, net of tax	1.0	0.5	1.5	0.5
Net earnings	213.2	105.9	410.8	247.9
Net earnings attributable to noncontrolling interests	(5.2)	(4.7)	(10.2)	(9.5)
Net earnings attributable to Snap-on Incorporated	$ 208.0	$ 101.2	$ 400.6	$ 238.4
Net earnings per share attributable to Snap-on Incorporated:
Basic (in dollars per share)	$ 3.85	$ 1.86	$ 7.40	$ 4.37
Diluted (in dollars per share)	$ 3.76	$ 1.85	$ 7.26	$ 4.34
Weighted-average shares outstanding:
Basic (in shares)	54.0	54.4	54.1	54.5
Effect of dilutive securities (in shares)	1.3	0.4	1.1	0.4
Diluted (in shares)	55.3	54.8	55.2	54.9
Dividends declared per common share (in dollars per share)	$ 1.23	$ 1.08	$ 2.46	$ 2.16
Excluding Financial Services
Net sales	$ 1,081.4	$ 724.3	$ 2,106.0	$ 1,576.5
Cost of goods sold	(538.3)	(383.1)	(1,049.3)	(813.7)
Gross profit	543.1	341.2	1,056.7	762.8
Operating expenses	(326.0)	(250.1)	(638.7)	(532.8)
Operating earnings	217.1	91.1	418.0	230.0
Financial Service
Net sales	86.9	84.6	175.5	170.5
Cost of goods sold	(18.0)	(27.0)	(41.3)	(56.0)
Operating earnings	$ 68.9	$ 57.6	$ 134.2	$ 114.5

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Comprehensive income (loss):
Net earnings	$ 213.2	$ 105.9	$ 410.8	$ 247.9
Other comprehensive income (loss):
Foreign currency translation	20.2	87.8	(8.8)	(20.2)
Reclassification of foreign currency translation loss from sale of equity interest to net earnings	(1.0)	0.0	(1.0)	0.0
Unrealized cash flow hedges, net of tax:
Other comprehensive income before reclassifications	0.0	1.4	0.0	1.4
Reclassification of cash flow hedges to net earnings	(0.4)	(0.4)	(0.8)	(0.8)
Defined benefit pension and postretirement plans:
Amortization of net unrecognized losses included in net periodic benefit cost	9.1	8.8	18.2	17.2
Income tax benefit	(2.3)	(2.1)	(4.5)	(4.1)
Net of tax	6.8	6.7	13.7	13.1
Total comprehensive income	238.8	201.4	413.9	241.4
Comprehensive income attributable to noncontrolling interests	(5.2)	(4.7)	(10.2)	(9.5)
Comprehensive income attributable to Snap-on Incorporated	$ 233.6	$ 196.7	$ 403.7	$ 231.9

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 965.9	$ 923.4
Trade and other accounts receivable – net	645.4	640.7
Finance receivables and contract receivables - net	639.2	642.7
Inventories – net	760.9	746.5
Prepaid expenses and other assets	138.3	129.7
Total current assets	3,149.7	3,083.0
Property and equipment:
Property and equipment and finance lease right-of-use asset, gross	1,522.4	1,499.4
Accumulated depreciation and amortization	(996.3)	(973.2)
Property and equipment and finance lease right-of-use asset, net	526.1	526.2
Operating lease right-of-use assets	52.4	51.9
Deferred income tax assets	52.1	50.3
Long-term finance receivables and contract receivables - net	1,504.3	1,511.0
Goodwill	1,177.6	982.4
Other intangibles – net	255.2	260.8
Other assets	74.2	91.7
Total assets	6,791.6	6,557.3
Current liabilities:
Notes payable and current maturities of long-term debt	268.1	268.5
Accounts payable	280.2	222.9
Accrued benefits	54.2	59.7
Accrued compensation	91.7	89.9
Franchisee deposits	78.3	78.4
Other accrued liabilities	449.6	445.5
Total current liabilities	1,222.1	1,164.9
Long-term debt	1,182.5	1,182.1
Deferred income tax liabilities	81.8	70.4
Retiree health care benefits	33.0	34.5
Pension liabilities	111.6	127.1
Operating lease liabilities	34.2	34.0
Other long-term liabilities	100.9	97.7
Total liabilities	2,766.1	2,710.7
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 67,438,011 and 67,430,958 shares, respectively)	67.4	67.4
Additional paid-in capital	461.1	391.7
Retained earnings	5,423.5	5,156.9
Accumulated other comprehensive loss	(362.7)	(365.8)
Treasury stock at cost (13,467,498 and 13,328,859 shares, respectively)	(1,585.9)	(1,425.3)
Total shareholders’ equity attributable to Snap-on Incorporated	4,003.4	3,824.9
Noncontrolling interests	22.1	21.7
Total equity	4,025.5	3,846.6
Total liabilities and equity	6,791.6	6,557.3
Land
Property and equipment:
Property and equipment and finance lease right-of-use asset, gross	34.6	34.0
Buildings and improvements
Property and equipment:
Property and equipment and finance lease right-of-use asset, gross	432.8	432.0
Machinery, equipment and computer software
Property and equipment:
Property and equipment and finance lease right-of-use asset, gross	1,055.0	1,033.4
Finance Receivables
Current assets:
Finance receivables and contract receivables - net	535.3	530.2
Property and equipment:
Long-term finance receivables and contract receivables - net	1,124.4	1,136.3
Contract Receivables
Current assets:
Finance receivables and contract receivables - net	103.9	112.5
Property and equipment:
Long-term finance receivables and contract receivables - net	$ 379.9	$ 374.7

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 03, 2021	Jan. 02, 2021
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)	67,438,011	67,430,958
Treasury stock (in shares)	13,467,498	13,328,859

XML

Condensed Consolidated Statements of Equity - 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	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock	Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Noncontrolling Interests	Noncontrolling Interests Cumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance at Dec. 28, 2019	$ 3,430.8	$ (6.1)	$ 3,424.7	$ 67.4	$ 67.4	$ 379.1	$ 379.1	$ 4,779.7	$ (6.1)	$ 4,773.6	$ (507.9)	$ (507.9)	$ (1,309.2)	$ (1,309.2)	$ 21.7	$ 21.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	247.9							238.4							9.5
Other comprehensive income (loss)	(6.5)										(6.5)
Cash dividends	(117.7)							(117.7)
Stock compensation plans	20.1					4.0							16.1
Share repurchases	(50.5)												(50.5)
Other	(9.4)							(0.1)							(9.3)
Ending balance at Jun. 27, 2020	3,508.6			67.4		383.1		4,894.2			(514.4)		(1,343.6)		21.9
Beginning balance at Mar. 28, 2020	3,353.4			67.4		378.4		4,852.0			(609.9)		(1,356.6)		22.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	105.9							101.2							4.7
Other comprehensive income (loss)	95.5										95.5
Cash dividends	(58.7)							(58.7)
Stock compensation plans	17.7					4.7							13.0
Other	(5.2)							(0.3)							(4.9)
Ending balance at Jun. 27, 2020	3,508.6			67.4		383.1		4,894.2			(514.4)		(1,343.6)		21.9
Beginning balance at Jan. 02, 2021	3,846.6			67.4		391.7		5,156.9			(365.8)		(1,425.3)		21.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	410.8							400.6							10.2
Other comprehensive income (loss)	3.1										3.1
Cash dividends	(133.4)							(133.4)
Stock compensation plans	198.1					69.4							128.7
Share repurchases	(289.3)												(289.3)
Other	(10.4)							(0.6)							(9.8)
Ending balance at Jul. 03, 2021	4,025.5			67.4		461.1		5,423.5			(362.7)		(1,585.9)		22.1
Beginning balance at Apr. 03, 2021	3,897.9			67.4		419.7		5,282.5			(388.3)		(1,505.3)		21.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	213.2							208.0							5.2
Other comprehensive income (loss)	25.6										25.6
Cash dividends	(66.7)							(66.7)
Stock compensation plans	98.2					41.4							56.8
Share repurchases	(137.4)												(137.4)
Other	(5.3)							(0.3)							(5.0)
Ending balance at Jul. 03, 2021	$ 4,025.5			$ 67.4		$ 461.1		$ 5,423.5			$ (362.7)		$ (1,585.9)		$ 22.1

XML

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended
	Jul. 03, 2021	Jul. 03, 2021	Jun. 27, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends per share (in dollars per share)	$ 1.23	$ 2.46	$ 2.16
Share repurchases (in shares)	566,900	1,288,900	349,000

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Operating activities:
Net earnings	$ 410.8	$ 247.9
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation	37.9	36.2
Amortization of other intangibles	12.3	11.4
Provision for losses on finance receivables	17.9	31.4
Provision for losses on non-finance receivables	8.1	11.7
Stock-based compensation expense	23.8	6.9
Deferred income tax provision (benefit)	4.0	(1.9)
Loss on sales of assets	1.4	0.2
Settlement of treasury lock	0.0	1.4
Changes in operating assets and liabilities, net of effects of acquisitions:
Trade and other accounts receivable	(4.0)	112.5
Contract receivables	4.5	(11.8)
Inventories	(16.1)	(32.0)
Prepaid and other assets	(14.3)	(18.1)
Accounts payable	59.5	(8.1)
Accruals and other liabilities	11.7	79.3
Net cash provided by operating activities	557.5	467.0
Investing activities:
Additions to finance receivables	(454.5)	(414.6)
Collections of finance receivables	447.9	357.5
Capital expenditures	(37.6)	(29.0)
Acquisitions of businesses, net of cash acquired	(195.8)	(6.1)
Proceeds on sale of property and equipment	1.4	0.9
Other	1.7	(4.1)
Net cash used by investing activities	(236.9)	(95.4)
Financing activities:
Proceeds from issuance of long-term debt	0.0	489.9
Net increase (decrease) in other short-term borrowings	2.9	(190.0)
Cash dividends paid	(133.4)	(117.7)
Purchases of treasury stock	(289.3)	(50.5)
Proceeds from stock purchase and option plans	154.8	13.8
Other	(13.9)	(13.1)
Net cash provided (used) by financing activities	(278.9)	132.4
Effect of exchange rate changes on cash and cash equivalents	0.8	(2.3)
Increase in cash and cash equivalents	42.5	501.7
Cash and cash equivalents at beginning of year	923.4	184.5
Cash and cash equivalents at end of period	965.9	686.2
Supplemental cash flow disclosures:
Cash paid for interest	(27.9)	(21.6)
Net cash paid for income taxes	$ (126.6)	$ (27.4)

XML

Summary of Accounting Policies

6 Months Ended

Jul. 03, 2021

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 2020 Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (“2020 year end”).

The company’s 2021 fiscal year, which ends on January 1, 2022, will contain 52 weeks of operating results. The company’s 2020 fiscal year contained 53 weeks of operating results, with the additional week occurring in the fourth quarter. Snap-on’s 2021 fiscal second quarter ended on July 3, 2021; the 2020 fiscal second quarter ended on June 27, 2020. The company’s 2021 and 2020 fiscal second 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 six month periods ended July 3, 2021, and June 27, 2020, have been made. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

Use of Estimates

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

Financial Instruments

The fair value of the company’s derivative financial instruments is generally determined using quoted prices in active markets for similar assets and liabilities. The carrying value of the company’s non-derivative financial instruments either approximates fair value, due to their short-term nature, or the amount disclosed for fair value is based upon a discounted cash flow analysis or quoted market values. See Note 10 for further information on financial instruments.

New Accounting Standards

The following new accounting pronouncement was adopted by Snap-on in fiscal year 2021:

On January 3, 2021, the beginning of Snap-on’s 2021 fiscal year, the company adopted 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. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements.

XML

Revenue Recognition

6 Months Ended

Jul. 03, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

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

Revenue Disaggregation: The following table shows the consolidated revenues by revenue source:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Revenue from contracts with customers	$	1,075.3	$	718.4	$	2,094.1	$	1,565.0
Other revenues	6.1		5.9		11.9		11.5
Total net sales	1,081.4		724.3		2,106.0		1,576.5
Financial services revenue	86.9		84.6		175.5		170.5
Total revenues	$	1,168.3	$	808.9	$	2,281.5	$	1,747.0

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:

	For the Three Months Ended July 3, 2021
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
North America*	$	126.6	$	416.3	$	236.8	$	—	$	—	$	779.7
Europe	79.2		43.8		66.5		—		—		189.5
All other	68.9		24.0		19.3		—		—		112.2
External net sales	274.7		484.1		322.6		—		—		1,081.4
Intersegment net sales	75.8		—		76.0		—		(151.8)		—
Total net sales	350.5		484.1		398.6		—		(151.8)		1,081.4
Financial services revenue	—		—		—		86.9		—		86.9
Total revenue	$	350.5	$	484.1	$	398.6	$	86.9	$	(151.8)	$	1,168.3

	For the Six Months Ended July 3, 2021
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
North America*	$	244.6	$	824.4	$	437.7	$	—	$	—	$	1,506.7
Europe	163.5		88.0		127.1		—		—		378.6
All other	137.7		50.0		33.0		—		—		220.7
External net sales	545.8		962.4		597.8		—		—		2,106.0
Intersegment net sales	150.4		—		148.4		—		(298.8)		—
Total net sales	696.2		962.4		746.2		—		(298.8)		2,106.0
Financial services revenue	—		—		—		175.5		—		175.5
Total revenue	$	696.2	$	962.4	$	746.2	$	175.5	$	(298.8)	$	2,281.5
* North America is comprised of the United States, Canada and Mexico.

	For the Three Months Ended June 27, 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*	$	96.9	$	291.5	$	148.5	$	—	$	—	$	536.9
Europe	54.9		17.5		36.9		—		—		109.3
All other	52.7		14.3		11.1		—		—		78.1
External net sales	204.5		323.3		196.5		—		—		724.3
Intersegment net sales	57.4		—		48.5		—		(105.9)		—
Total net sales	261.9		323.3		245.0		—		(105.9)		724.3
Financial services revenue	—		—		—		84.6		—		84.6
Total revenue	$	261.9	$	323.3	$	245.0	$	84.6	$	(105.9)	$	808.9

	For the Six Months Ended June 27, 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*	$	205.8	$	618.4	$	325.8	$	—	$	—	$	1,150.0
Europe	122.0		48.6		93.5		—		—		264.1
All other	103.7		32.2		26.5		—		—		162.4
External net sales	431.5		699.2		445.8		—		—		1,576.5
Intersegment net sales	130.3		—		113.8		—		(244.1)		—
Total net sales	561.8		699.2		559.6		—		(244.1)		1,576.5
Financial services revenue	—		—		—		170.5		—		170.5
Total revenue	$	561.8	$	699.2	$	559.6	$	170.5	$	(244.1)	$	1,747.0
* North America is comprised of the United States, Canada and Mexico.

The following tables represent external net sales disaggregated by customer type:

	For the Three Months Ended July 3, 2021
	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	$	25.7	$	484.1	$	322.6	$	—	$	—	$	832.4
All other professionals	249.0		—		—		—		—		249.0
External net sales	274.7		484.1		322.6		—		—		1,081.4
Intersegment net sales	75.8		—		76.0		—		(151.8)		—
Total net sales	350.5		484.1		398.6		—		(151.8)		1,081.4
Financial services revenue	—		—		—		86.9		—		86.9
Total revenue	$	350.5	$	484.1	$	398.6	$	86.9	$	(151.8)	$	1,168.3

	For the Six Months Ended July 3, 2021
	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	$	49.8	$	962.4	$	597.8	$	—	$	—	$	1,610.0
All other professionals	496.0		—		—		—		—		496.0
External net sales	545.8		962.4		597.8		—		—		2,106.0
Intersegment net sales	150.4		—		148.4		—		(298.8)		—
Total net sales	696.2		962.4		746.2		—		(298.8)		2,106.0
Financial services revenue	—		—		—		175.5		—		175.5
Total revenue	$	696.2	$	962.4	$	746.2	$	175.5	$	(298.8)	$	2,281.5

	For the Three Months Ended June 27, 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	$	20.0	$	323.3	$	196.5	$	—	$	—	$	539.8
All other professionals	184.5		—		—		—		—		184.5
External net sales	204.5		323.3		196.5		—		—		724.3
Intersegment net sales	57.4		—		48.5		—		(105.9)		—
Total net sales	261.9		323.3		245.0		—		(105.9)		724.3
Financial services revenue	—		—		—		84.6		—		84.6
Total revenue	$	261.9	$	323.3	$	245.0	$	84.6	$	(105.9)	$	808.9

	For the Six Months Ended June 27, 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	$	39.4	$	699.2	$	445.8	$	—	$	—	$	1,184.4
All other professionals	392.1		—		—		—		—		392.1
External net sales	431.5		699.2		445.8		—		—		1,576.5
Intersegment net sales	130.3		—		113.8		—		(244.1)		—
Total net sales	561.8		699.2		559.6		—		(244.1)		1,576.5
Financial services revenue	—		—		—		170.5		—		170.5
Total revenue	$	561.8	$	699.2	$	559.6	$	170.5	$	(244.1)	$	1,747.0

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 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 $205.0 million of long-term contracts that have fixed consideration that extends beyond one year as of July 3, 2021. Snap-on expects to recognize approximately 60% of these contracts as revenue by the end of fiscal 2022, an additional 35% by the end of fiscal 2024 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 $68.8 million and $61.0 million at July 3, 2021, and January 2, 2021, 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 six months ended July 3, 2021, Snap-on recognized revenue of $10.6 million and $41.6 million, respectively, that was included in the $61.0 million contract liability balance at January 2, 2021, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

XML

Acquisitions

6 Months Ended

Jul. 03, 2021

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

On July 1, 2021, Snap-on exchanged its 35% equity interest in Deville S.A., valued at $21.8 million, for 100% ownership of Secateurs Pradines (“Pradines”), a wholly owned subsidiary of Deville S.A. with a fair value of $20.0 million (or $15.8 million, net of cash acquired), and cash of $1.8 million, receivable upon settlement of the Pradines working capital adjustment, expected in the third quarter of 2021. Pradines, located in Bauge-en-Anjou, France, designs and manufactures horticultural hand tools for professionals and individuals. In the second quarter of 2021, the company recorded, on a preliminary basis, the $9.6 million excess of the purchase price over the fair value of net assets acquired in “Goodwill” in the accompanying Condensed Consolidated Balance Sheets. The company anticipates completing the purchase accounting for the acquired net assets of Pradines in the first half of 2022.

On February 26, 2021, Snap-on acquired Dealer-FX Group, Inc. (“Dealer-FX”) for a cash purchase price of $200.1 million (or $200.0 million, net of cash acquired). Dealer-FX, based in Markham, Ontario, is a leading developer, marketer and provider of service operations software solutions for automotive OEM customers and their dealers. Dealer-FX specializes in software as a service (SaaS) management systems, communications platforms, extensive data integrations, and offers a digitalized solution that increases productivity and enhances the vehicle owners’ experience. In the first quarter of 2021, the company recorded, on a preliminary basis, the $195.2 million excess of the purchase price over the fair value of the net assets acquired in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets. The company anticipates completing the purchase accounting for the acquired net assets of Dealer-FX in 2021.

On September 28, 2020, Snap-on acquired substantially all of the assets of AutoCrib, Inc. (“AutoCrib”) for a cash purchase price of $35.4 million. AutoCrib, based in Tustin, California, designs, manufactures and markets asset and tool control solutions for a variety of aerospace, automotive, military, natural resources and general industry operations. In the first quarter of 2021, the company completed the purchase accounting valuations for the acquired net assets of AutoCrib, including intangible assets. The $18.3 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 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.

For segment reporting purposes, the results of operations and assets of Dealer-FX and Sigmavision have been included in the Repair Systems & Information Group since the respective acquisition dates, and the results of operations and assets of Pradines and AutoCrib 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.

XML

Receivables

6 Months Ended

Jul. 03, 2021

Receivables [Abstract]

Receivables

Receivables

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

The components of Snap-on’s trade and other accounts receivable as of July 3, 2021, and January 2, 2021, are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Trade and other accounts receivable	$	674.9	$	667.0
Allowances for credit losses	(29.5)		(26.3)
Total trade and other accounts receivable – net	$	645.4	$	640.7

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and six months ended July 3, 2021, and June 27, 2020:

	Three months ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Allowances for credit losses:
Beginning of period	$	25.8	$	20.4	$	26.3	$	20.9
Provision for credit losses	5.4		5.5		7.3		9.1
Charge-offs	(2.1)		(2.4)		(4.2)		(5.5)
Recoveries	—		—		—		—
Currency translation	0.4		0.1		0.1		(0.9)
End of period	$	29.5	$	23.6	$	29.5	$	23.6

Finance and Contract Receivables: Snap-on Credit LLC (“SOC”), the company’s financial services operation in the United States, originates extended-term finance and contract receivables on sales of Snap-on’s products sold through the U.S. franchisee 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 July 3, 2021, and January 2, 2021, are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance installment receivables	$	547.2	$	533.9
Finance lease receivables, net of unearned finance charges of $2.4 million and $4.4 million, respectively	11.2		20.2
Total finance receivables	558.4		554.1
Contract installment receivables	49.8		59.1
Contract lease receivables, net of unearned finance charges of $18.4 million and $18.2 million, respectively	56.3		55.7
Total contract receivables	106.1		114.8
Total	664.5		668.9
Allowances for credit losses:
Finance installment receivables	(22.9)		(23.6)
Finance lease receivables	(0.2)		(0.3)
Total finance allowance for credit losses	(23.1)		(23.9)
Contract installment receivables	(0.8)		(1.4)
Contract lease receivables	(1.4)		(0.9)
Total contract allowance for credit losses	(2.2)		(2.3)
Total allowance for credit losses	(25.3)		(26.2)
Total current finance and contract receivables – net	$	639.2	$	642.7
Finance receivables – net	$	535.3	$	530.2
Contract receivables – net	103.9		112.5
Total current finance and contract receivables – net	$	639.2	$	642.7

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of July 3, 2021, and January 2, 2021, are as follows: 

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance installment receivables	$	1,165.5	$	1,173.1
Finance lease receivables, net of unearned finance charges of $1.1 million and $2.5 million, respectively	8.1		15.6
Total finance receivables	1,173.6		1,188.7
Contract installment receivables	201.0		199.7
Contract lease receivables, net of unearned finance charges of $30.3 million and $30.2 million, respectively	185.7		181.7
Total contract receivables	386.7		381.4
Total	1,560.3		1,570.1
Allowances for credit losses:
Finance installment receivables	(49.1)		(52.1)
Finance lease receivables	(0.1)		(0.3)
Total finance allowance for credit losses	(49.2)		(52.4)
Contract installment receivables	(3.1)		(3.1)
Contract lease receivables	(3.7)		(3.6)
Total contract allowance for credit losses	(6.8)		(6.7)
Total allowance for credit losses	(56.0)		(59.1)
Total long-term finance and contract receivables – net	$	1,504.3	$	1,511.0
Finance receivables – net	$	1,124.4	$	1,136.3
Contract receivables – net	379.9		374.7
Total long-term finance and contract receivables – net	$	1,504.3	$	1,511.0

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 July 3, 2021, are as follows:

(Amounts in millions)	2021		2020		2019		2018		2017		Prior		Total
Finance Receivables:
Delinquent	$	2.3	$	15.5	$	9.2	$	5.1	$	2.7	$	1.1	$	35.9
Non-delinquent	695.0		645.8		227.8		90.8		30.2		6.5		1,696.1
Total Finance receivables	$	697.3	$	661.3	$	237.0	$	95.9	$	32.9	$	7.6	$	1,732.0
Contract receivables:
Delinquent	$	—	$	0.4	$	0.6	$	0.4	$	0.1	$	0.1	$	1.6
Non-delinquent	91.0		146.2		106.5		71.1		41.2		35.2		491.2
Total Contract receivables	$	91.0	$	146.6	$	107.1	$	71.5	$	41.3	$	35.3	$	492.8

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 generally has 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. Changes 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”) to determine expected losses. 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 various 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 six months ended July 3, 2021, and June 27, 2020:

 

	Three Months Ended July 3, 2021				Six Months Ended July 3, 2021
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for credit losses:
Beginning of period	$	75.3	$	9.2	$	76.3	$	9.0
Provision for credit losses	6.6		0.1		17.9		0.8
Charge-offs	(12.4)		(0.5)		(27.3)		(1.1)
Recoveries	2.8		0.2		5.4		0.3
Currency translation	—		—		—		—
End of period	$	72.3	$	9.0	$	72.3	$	9.0

	Three Months Ended June 27, 2020				Six Months Ended June 27, 2020
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for credit losses:
Beginning of period	$	69.2	$	8.6	$	61.9	$	5.6
Impact of adopting ASU No. 2016-13	—		—		5.2		2.9
Provision for credit losses	15.1		1.2		31.4		2.6
Charge-offs	(14.2)		(0.9)		(30.1)		(2.2)
Recoveries	2.2		0.2		4.2		0.2
Currency translation	0.2		—		(0.1)		—
End of period	$	72.5	$	9.1	$	72.5	$	9.1

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 July 3, 2021, and January 2, 2021, 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 July 3, 2021, and January 2, 2021, is as follows:

(Amounts in millions)	30-59 Days Past Due		60-90 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Total Not Past Due		Total		Greater Than 90 Days Past Due and Accruing
July 3, 2021:
Finance receivables	$	13.4	$	8.3	$	14.2	$	35.9	$	1,696.1	$	1,732.0	$	11.8
Contract receivables	0.7		0.2		0.7		1.6		491.2		492.8		0.1
January 2, 2021:
Finance receivables	$	18.4	$	12.2	$	21.1	$	51.7	$	1,691.1	$	1,742.8	$	18.2
Contract receivables	1.3		0.6		1.5		3.4		492.8		496.2		0.2

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 generally has 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 July 3, 2021, and January 2, 2021, is as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance receivables	$	8.2	$	9.6
Contract receivables	1.6		2.4

XML

Inventories

6 Months Ended

Jul. 03, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories by major classification are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finished goods	$	648.1	$	643.4
Work in progress	64.4		61.6
Raw materials	133.2		125.5
Total FIFO value	845.7		830.5
Excess of current cost over LIFO cost	(84.8)		(84.0)
Total inventories – net	$	760.9	$	746.5

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 58% and 57% of total inventories as of July 3, 2021 and January 2, 2021, respectively. The company accounts for its non-U.S. inventory on the FIFO method. As of July 3, 2021, approximately 31% of the company’s U.S. inventory was accounted for using the FIFO method and 69% was accounted for using the last-in, first-out (“LIFO”) method. There were no LIFO inventory liquidations in the three and six months ended July 3, 2021, or June 27, 2020.

XML

Goodwill and Other Intangible Assets

6 Months Ended

Jul. 03, 2021

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 six months ended July 3, 2021, are as follows:

(Amounts in millions)	Commercial & Industrial Group		Snap-on Tools Group		Repair Systems & Information Group		Total
Balance as of January 2, 2021	$	331.2	$	12.4	$	638.8	$	982.4
Currency translation	(6.5)		—		(3.1)		(9.6)
Acquisitions and related adjustments	9.6		—		195.2		204.8
Balance as of July 3, 2021	$	334.3	$	12.4	$	830.9	$	1,177.6

Goodwill of $1,177.6 million as of July 3, 2021, included $195.2 million, on a preliminary basis, from the acquisition of Dealer-FX and $9.6 million, on a preliminary basis, from the acquisition of Pradines. The goodwill from Dealer-FX is included in the Repair Systems & Information Group and the goodwill from Pradines is included in the Commercial & Industrial Group. See Note 3 for additional information on acquisitions.

Additional disclosures related to other intangible assets are as follows:

	July 3, 2021				January 2, 2021
(Amounts in millions)	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Amortized other intangible assets:
Customer relationships	$	191.6	$	(135.9)	$	191.5	$	(130.1)
Developed technology	22.1		(20.7)		21.8		(19.9)
Internally developed software	178.6		(133.7)		172.2		(128.0)
Patents	43.8		(25.0)		43.2		(25.3)
Trademarks	4.0		(2.4)		3.9		(2.4)
Other	8.2		(4.0)		8.2		(3.9)
Total	448.3		(321.7)		440.8		(309.6)
Non-amortized trademarks	128.6		—		129.6		—
Total other intangible assets	$	576.9	$	(321.7)	$	570.4	$	(309.6)

Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2021, and the testing did not result in any impairment. Provision for impairment of goodwill and/or other intangible assets in a future period could arise due to 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. As of July 3, 2021, the company had no accumulated impairment losses.

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

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

Snap-on is amortizing its customer relationships on both an accelerated and straight-line basis over a 15-year weighted-average life; the remaining intangibles are amortized on a straight-line basis. The weighted-average amortization period for all amortizable intangibles on a combined basis is 11 years.

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

The aggregate amortization expense was $6.3 million and $12.3 million for the respective three and six month periods ended July 3, 2021, and $5.7 million and $11.4 million for the respective three and six month periods ended June 27, 2020. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $24.7 million in 2021, $22.2 million in 2022, $18.6 million in 2023, $13.2 million in 2024, $8.7 million in 2025, and $8.0 million in 2026.

XML

Exit and Disposal Activities

6 Months Ended

Jul. 03, 2021

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 and six month periods ended July 3, 2021. For the respective three and six month periods ended June 27, 2020, Snap-on recorded costs of $4.0 million and $11.5 million for exit and disposal activities. The costs associated with exit and disposal activities by operating segment are as follows:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Exit and disposal costs
Cost of goods sold:
Commercial & Industrial Group	$	—	$	2.0	$	—	$	6.4
Repair System & Information Group	—		—		—		0.7
Total cost of goods sold	$	—	$	2.0	$	—	$	7.1
Operating Expenses:
Snap-on Tools Group	$	—	$	0.6	$	—	$	0.6
Repair System & Information Group	—		1.4		—		3.8
Total operating expenses	$	—	$	2.0	$	—	$	4.4
Total exit and disposal costs:
Commercial & Industrial Group	$	—	$	2.0	$	—	$	6.4
Snap-on Tools Group	—		0.6		—		0.6
Repair System & Information Group	—		1.4		—		4.5
Total exit and disposal costs	$	—	$	4.0	$	—	$	11.5

Costs associated with exit and disposal activities in the first six 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 first six months of 2021 is as follows:

	Balance at		First Quarter				Balance at		Second Quarter				Balance at
(Amounts in millions)	January 2, 2021		Provision		Usage		April 3, 2021		Provision		Usage		July 3, 2021
Severance costs:
Commercial & Industrial Group	$	5.8	$	—	$	(0.3)	$	5.5	$	—	$	(0.5)	$	5.0
Snap-on Tools Group	0.4		—		—		0.4		—		—		0.4
Repair System & Information Group	3.8		—		(0.2)		3.6		—		(0.5)		3.1
Total	$	10.0	$	—	$	(0.5)	$	9.5	$	—	$	(1.0)	$	8.5

As of July 3, 2021, the company expects that of the $8.5 million exit and disposal accrual, approximately $4.1 million will be utilized in the balance of 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.

XML

Income Taxes

6 Months Ended

Jul. 03, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.4% and 24.2% in the respective first six month periods of 2021 and 2020. 

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.

XML

Short-term and Long-term Debt

6 Months Ended

Jul. 03, 2021

Debt Disclosure [Abstract]

Short-term and Long-term Debt

Short-term and Long-term Debt

Short-term and long-term debt as of July 3, 2021, and January 2, 2021, consisted of the following:

(Amounts in millions)	July 3, 2021		January 2, 2021
6.125% unsecured notes due 2021	$	250.0	$	250.0
3.25% unsecured notes due 2027	300.0		300.0
4.10% unsecured notes due 2048	400.0		400.0
3.10% unsecured notes due 2050	500.0		500.0
Other*	0.6		0.6
	1,450.6		1,450.6
Less: notes payable and current maturities of long-term debt
Current maturities of long-term debt	(250.0)		(250.0)
Other notes*	(18.1)		(18.5)
	(268.1)		(268.5)
Total long-term debt	$	1,182.5	$	1,182.1

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

Notes payable and current maturities of long-term debt of $268.1 million as of July 3, 2021, consisted of $250.0 million of 6.125% unsecured notes that mature on September 1, 2021 (the “2021 Notes”), $17.5 million of other notes and $0.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps. As of 2020 year end, notes payable of $268.5 million included $250.0 million of the 2021 Notes, $14.9 million of other notes and $3.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps. 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 July 3, 2021. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of Consolidated Net Debt to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of July 3, 2021, the company’s actual ratios of 0.11 and 0.44, 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.

XML

Financial Instruments

6 Months Ended

Jul. 03, 2021

Investments, All Other Investments [Abstract]

Financial Instruments

Financial Instruments

Derivatives: All derivative instruments are reported in the Condensed Consolidated Financial Statements at fair value. Changes in the fair value of derivatives are recorded each period in earnings or on the accompanying Condensed Consolidated Balance Sheets, depending on whether the derivative is designated and effective 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. See Note 17 for additional information on Other income (expense) - net.

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” on the accompanying Condensed Consolidated Balance Sheets as of both July 3, 2021, and January 2, 2021. The notional amount of interest rate swaps outstanding and designated as fair value hedges was $100.0 million as of both July 3, 2021, and January 2, 2021.

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. There were no treasury locks outstanding as of both July 3, 2021, and January 2, 2021.

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 July 3, 2021, Snap-on had equity forwards in place intended to manage market risk with respect to 70,700 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:

	July 3, 2021				January 2, 2021
(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Finance receivables – net	$	1,659.7	$	2,008.5	$	1,666.5	$	2,024.4
Contract receivables – net	483.8		542.2		487.2		545.4
Long-term debt and notes payable and current maturities of long-term debt	1,450.6		1,605.8		1,450.6		1,678.2

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.

XML

Pension Plans

6 Months Ended

Jul. 03, 2021

Retirement Benefits [Abstract]

Pension Plans

Pension Plans

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Service cost	$	6.9	$	6.6	$	14.4	$	13.5
Interest cost	10.5		12.3		21.1		24.4
Expected return on plan assets	(23.5)		(23.7)		(47.1)		(47.4)
Amortization of unrecognized loss	9.1		8.8		18.2		17.2
Net periodic pension cost	$	3.0	$	4.0	$	6.6	$	7.7

The components of net periodic pension cost, other than the service cost component, are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 17 for additional information on other income (expense) - net.

Snap-on intends to make contributions of $9.2 million to its foreign pension plans and $2.2 million to its domestic pension plans in 2021, as required by law. Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2021.

XML

Postretirement Health Care Plans

6 Months Ended

Jul. 03, 2021

Postemployment Benefits [Abstract]

Postretirement Health Care Plans

Postretirement Health Care Plans

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Interest cost	$	0.3	$	0.3	$	0.6	$	0.7
Expected return on plan assets	(0.2)		(0.1)		(0.4)		(0.3)
Net periodic postretirement health care cost	$	0.1	$	0.2	$	0.2	$	0.4

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.

XML

Stock-based Compensation and Other Stock Plans

6 Months Ended

Jul. 03, 2021

Share-based Payment Arrangement [Abstract]

Stock-based Compensation and Other Stock Plans

Stock-based Compensation and Other Stock Plans

The 2011 Incentive Stock and Awards Plan (the “2011 Plan”) provides for the grant of stock options, performance awards, stock appreciation rights (“SARs”) and restricted stock awards (which may be designated as “restricted stock units” or “RSUs”). No further grants are being made under its predecessor, the 2001 Incentive Stock and Awards Plan (the “2001 Plan”), although outstanding awards under the 2001 Plan continue in accordance with their terms. As of July 3, 2021, the 2011 Plan had 3,634,380 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 $11.5 million and $23.8 million for the respective three and six month periods ended July 3, 2021, and $5.8 million and $6.9 million for the respective three and six month periods ended June 27, 2020. Cash received from stock purchase and option plan exercises during the respective three and six month periods ended July 3, 2021, totaled $61.8 million and $154.8 million. Cash received from stock purchase and option plan exercises during the respective three and six month periods ended June 27, 2020 totaled $12.3 million and $13.8 million. The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $6.2 million and $13.9 million for the respective three and six month periods ended July 3, 2021, and $0.8 million and $2.3 million for the respective three and six month periods ended June 27, 2020.

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 10 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 six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of option (in years)	5.33	5.53
Expected volatility factor	21.80%	21.67%
Expected dividend yield	2.59%	2.78%
Risk-free interest rate	0.67%	1.50%

A summary of stock option activity as of and for the six months ended July 3, 2021, is presented below:

	Shares (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 2, 2021	3,120	$	142.47
Granted	333	189.91
Exercised	(877)	144.66
Forfeited or expired	(23)	168.73
Outstanding at July 3, 2021	2,553	147.67		6.0	$	194.6
Exercisable at July 3, 2021	1,790	138.09		4.8	153.6

* Weighted-average

The weighted-average grant date fair value of options granted during the six months ended July 3, 2021, and June 27, 2020, was $26.19 and $22.95, respectively. The intrinsic value of options exercised was $28.1 million and $58.9 million during the respective three and six month periods ended July 3, 2021, and $3.3 million and $4.7 million for the respective three and six month periods ended June 27, 2020. The fair value of stock options vested was $12.5 million and $14.6 million during the respective six month periods ended July 3, 2021, and June 27, 2020.

As of July 3, 2021, there was $15.5 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 1.9 years.

Performance Share Unit and Restricted Stock Unit Awards: Performance share units (“PSUs”) 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 PSUs 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.

Time-based RSUs are earned and expensed using the fair value of the award over the contractual term of three years. Vesting of the time-based RSUs is dependent upon continued employment over the 3-year cliff vesting period.

The fair value of PSUs and RSUs 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 awards granted during the six months ended July 3, 2021, and June 27, 2020, was $187.12 and $155.34, respectively. There were no PSUs paid out during the six months ended July 3, 2021. PSUs related to 21,184 shares were paid out during the six months ended June 27, 2020. 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”).

Changes to the company’s non-vested PSUs and RSUs during the six months ended July 3, 2021, are as follows:

	Shares (in thousands)	Fair Value Price per Share*
Non-vested performance awards at January 2, 2021	76	$	155.61
Granted	127	187.12
Vested	—	—
Cancellations and other	(3)	181.51
Non-vested performance awards at July 3, 2021	200	175.18

* Weighted-average

As of July 3, 2021, there was $22.7 million of unrecognized compensation cost related to non-vested PSUs and RSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 2.3 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 six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of stock-settled SARs (in years)	3.94	3.75
Expected volatility factor	22.50%	22.50%
Expected dividend yield	2.59%	2.78%
Risk-free interest rate	0.19%	1.42%

Changes to the company’s stock-settled SARs during the six months ended July 3, 2021, are as follows:

	Stock-settled SARs (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 2, 2021	502	$	151.59
Granted	83	189.89
Exercised	(48)	144.52
Forfeited or expired	(136)	152.26
Outstanding at July 3, 2021	401	160.06		7.2	$	25.6
Exercisable at July 3, 2021	230	151.12		5.8	16.7

* Weighted-average

The weighted-average grant date fair value of stock-settled SARs granted during the six months ended July 3, 2021, and June 27, 2020, was $24.05 and $21.31, respectively. The intrinsic value of stock-settled SARs exercised was $0.8 million and $3.0 million during the respective three and six month periods ended July 3, 2021, and zero for both the three and six months ended June 27, 2020. The fair value of stock-settled SARs vested was $2.1 million and $2.3 million during the respective six month periods ended July 3, 2021, and June 27, 2020.

As of July 3, 2021, there was $3.2 million of unrecognized compensation cost related to non-vested stock-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.9 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of cash-settled SARs (in years)	3.59	3.43
Expected volatility factor	22.49%	32.04%
Expected dividend yield	2.20%	3.23%
Risk-free interest rate	0.45%	0.19%

The intrinsic value of cash-settled SARs exercised was $0.1 million and $0.6 million during the respective three and six month periods ended July 3, 2021, and $0.1 million and $0.2 million for the respective three and six month periods ended June 27, 2020. The fair value of cash-settled SARs vested was $0.1 million and zero during the respective six month periods ended July 3, 2021, and June 27, 2020.

Changes to the company’s non-vested cash-settled SARs during the six months ended July 3, 2021, are as follows:

	Cash-settled SARs (in thousands)	Fair Value Price per Share*
Non-vested cash-settled SARs at January 2, 2021	2	$	36.99
Granted	1	44.24
Vested	(1)	62.80
Non-vested cash-settled SARs at July 3, 2021	2	54.36

* Weighted-average

As of July 3, 2021, 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 1.9 years.

Restricted Stock Awards – Non-employee Directors: The company awarded 6,858 shares and 7,380 shares of restricted stock to non-employee directors for the respective six month periods ended July 3, 2021, and June 27, 2020. The fair value of the restricted stock awards is expensed over a one-year vesting period based on the fair value on the date of grant. All restrictions generally lapse upon the earlier of the first anniversary of the grant date, the recipient’s death or disability or in the event of a change in control, as defined in the 2011 Plan. If termination of the recipient’s service occurs prior to the first anniversary of the grant date for any reason other than death or disability, the shares of restricted stock would be forfeited, unless otherwise determined by the Board.

Employee stock purchase plan: Substantially all Snap-on employees in the United States and Canada are eligible to participate in an employee stock purchase plan. The purchase price of the company’s common stock to participants is the lesser of the mean of the high and low price of the stock on the beginning date (May 15) or ending date (the following May 14) of each plan year. For the six months ended July 3, 2021, and June 27, 2020, issuances under this plan totaled 82,286 shares and 25,425 shares, respectively. As of July 3, 2021, shares reserved for issuance under this plan totaled 597,275 shares and Snap-on held participant contributions of approximately $0.5 million. Participants are able to withdraw from the plan at any time prior to the ending date and receive back all contributions made during the plan year. Compensation expense for plan participants was $4.8 million and $9.6 million for the respective three and six month periods ended July 3, 2021, and zero and $0.1 million of benefit for the respective three and six month periods ended June 27, 2020.

Franchisee stock purchase plan: All franchisees in the United States and Canada are eligible to participate in a franchisee stock purchase plan. The purchase price of the company’s common stock to participants is the lesser of the mean of the high and low price of the stock on the beginning date (May 15) or ending date (the following May 14) of each plan year. For the six months ended July 3, 2021, and June 27, 2020, issuances under this plan totaled 143,388 shares and 55,980 shares, respectively. As of July 3, 2021, shares reserved for issuance under this plan totaled 270,162 shares and Snap-on held participant contributions of approximately $1.3 million. Participants are able to withdraw from the plan at any time prior to the ending date and receive back all contributions made during the plan year. The company recognized mark-to-market expense of $11.3 million and $16.7 million for the respective three and six month periods ended July 3, 2021, and zero and $0.2 million of benefit for the respective three and six month periods ended June 27, 2020.

XML

Earnings Per Share

6 Months Ended

Jul. 03, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

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

	Three Months Ended		Six Months Ended
	July 3, 2021	June 27, 2020	July 3, 2021	June 27, 2020
Weighted-average common shares outstanding	54,051,436	54,413,820	54,117,937	54,468,839
Effect of dilutive securities	1,256,296	378,730	1,094,874	451,621
Weighted-average common shares outstanding, assuming dilution	55,307,732	54,792,550	55,212,811	54,920,460

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 July 3, 2021, there were no awards outstanding that were anti-dilutive; as of June 27, 2020, there were 3,238,975 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.

XML

Commitments and Contingencies

6 Months Ended

Jul. 03, 2021

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 six months ended July 3, 2021, and June 27, 2020, is as follows:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Warranty reserve:
Beginning of period	$	18.3	$	17.2	$	17.6	$	17.3
Additions	3.8		2.3		7.9		6.0
Usage	(3.6)		(2.3)		(7.0)		(6.1)
End of period	$	18.5	$	17.2	$	18.5	$	17.2

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.

XML

Leases

6 Months Ended

Jul. 03, 2021

Leases [Abstract]

Leases

Leases

Lessee Accounting: Supplemental balance sheet information related to leases as of July 3, 2021, and January 2, 2021 is as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance leases:
Property and equipment - gross	$	22.9	$	24.3
Accumulated depreciation and amortization	(17.2)		(17.5)
Property and equipment - net	$	5.7	$	6.8
Other accrued liabilities	$	2.6	$	2.7
Other long-term liabilities	5.7		7.4
Total finance lease liabilities	$	8.3	$	10.1
Operating leases:
Operating lease right-of-use assets	$	52.4	$	51.9
Other accrued liabilities	$	19.7	$	19.3
Operating lease liabilities	34.2		34.0
Total operating lease liabilities	$	53.9	$	53.3

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.

Leases

Leases

Lessee Accounting: Supplemental balance sheet information related to leases as of July 3, 2021, and January 2, 2021 is as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance leases:
Property and equipment - gross	$	22.9	$	24.3
Accumulated depreciation and amortization	(17.2)		(17.5)
Property and equipment - net	$	5.7	$	6.8
Other accrued liabilities	$	2.6	$	2.7
Other long-term liabilities	5.7		7.4
Total finance lease liabilities	$	8.3	$	10.1
Operating leases:
Operating lease right-of-use assets	$	52.4	$	51.9
Other accrued liabilities	$	19.7	$	19.3
Operating lease liabilities	34.2		34.0
Total operating lease liabilities	$	53.9	$	53.3

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.

Leases

Leases

Lessee Accounting: Supplemental balance sheet information related to leases as of July 3, 2021, and January 2, 2021 is as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance leases:
Property and equipment - gross	$	22.9	$	24.3
Accumulated depreciation and amortization	(17.2)		(17.5)
Property and equipment - net	$	5.7	$	6.8
Other accrued liabilities	$	2.6	$	2.7
Other long-term liabilities	5.7		7.4
Total finance lease liabilities	$	8.3	$	10.1
Operating leases:
Operating lease right-of-use assets	$	52.4	$	51.9
Other accrued liabilities	$	19.7	$	19.3
Operating lease liabilities	34.2		34.0
Total operating lease liabilities	$	53.9	$	53.3

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.

XML

Other Income (Expense) - Net

6 Months Ended

Jul. 03, 2021

Other Income and Expenses [Abstract]

Other Income (Expense) - Net

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Interest income	$	0.4	$	0.3	$	0.8	$	0.7
Net foreign exchange income (loss)	0.2		(0.7)		—		(2.6)
Net periodic pension and postretirement benefits – non-service	3.8		2.4		7.6		5.4
Foreign currency translation loss from sale of equity interest	(1.0)		—		(1.0)		—
Other	—		—		0.3		—
Total other income (expense) – net	$	3.4	$	2.0	$	7.7	$	3.5

XML

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jul. 03, 2021

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 July 3, 2021:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of April 3, 2021	$	(103.7)	$	10.1	$	(294.7)	$	(388.3)
Other comprehensive income before reclassifications	20.2		—		—		20.2
Amounts reclassified from Accumulated OCI	(1.0)		(0.4)		6.8		5.4
Net other comprehensive income (loss)	19.2		(0.4)		6.8		25.6
Balance as of July 3, 2021	$	(84.5)	$	9.7	$	(287.9)	$	(362.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended July 3, 2021:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of January 2, 2021	$	(74.7)	$	10.5	$	(301.6)	$	(365.8)
Other comprehensive loss before reclassifications	(8.8)		—		—		(8.8)
Amounts reclassified from Accumulated OCI	(1.0)		(0.8)		13.7		11.9
Net other comprehensive income (loss)	(9.8)		(0.8)		13.7		3.1
Balance as of July 3, 2021	$	(84.5)	$	9.7	$	(287.9)	$	(362.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended June 27, 2020:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of March 28, 2020	$	(295.4)	$	10.3	$	(324.8)	$	(609.9)
Other comprehensive income before reclassifications	87.8		1.4		—		89.2
Amounts reclassified from Accumulated OCI	—		(0.4)		6.7		6.3
Net other comprehensive income	87.8		1.0		6.7		95.5
Balance as of June 27, 2020	$	(207.6)	$	11.3	$	(318.1)	$	(514.4)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended June 27, 2020:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 28, 2019	$	(187.4)	$	10.7	$	(331.2)	$	(507.9)
Other comprehensive income (loss) before reclassifications	(20.2)		1.4		—		(18.8)
Amounts reclassified from Accumulated OCI	—		(0.8)		13.1		12.3
Net other comprehensive income (loss)	(20.2)		0.6		13.1		(6.5)
Balance as of June 27, 2020	$	(207.6)	$	11.3	$	(318.1)	$	(514.4)

The reclassifications out of Accumulated OCI for the three and six month periods ended July 3, 2021, and June 27, 2020, are as follows: 

	Amount Reclassified from Accumulated OCI
	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020		Statement of Earnings Presentation
(Amounts in millions)
Foreign currency loss from sale of equity interest:
Foreign currency	$	1.0	$	—	$	1.0	$	—	Other income (expense) - net
Income tax expense	—		—		—		—		Income tax expense
Net of tax	1.0		—		1.0		—
Gains on cash flow hedges:
Treasury locks	$	0.4	$	0.4	$	0.8	$	0.8	Interest expense
Income tax expense	—		—		—		—		Income tax expense
Net of tax	0.4		0.4		0.8		0.8
Amortization of net unrecognized losses	(9.1)		(8.8)		(18.2)		(17.2)		See footnote below*
Income tax benefit	2.3		2.1		4.5		4.1		Income tax expense
Net of tax	(6.8)		(6.7)		(13.7)		(13.1)
Total reclassifications for the period, net of tax	$	(5.4)	$	(6.3)	$	(11.9)	$	(12.3)

* 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.

XML

Segments

6 Months Ended

Jul. 03, 2021

Segment Reporting [Abstract]

Segments

Segments

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net sales:
Commercial & Industrial Group	$	350.5	$	261.9	$	696.2	$	561.8
Snap-on Tools Group	484.1		323.3		962.4		699.2
Repair Systems & Information Group	398.6		245.0		746.2		559.6
Segment net sales	1,233.2		830.2		2,404.8		1,820.6
Intersegment eliminations	(151.8)		(105.9)		(298.8)		(244.1)
Total net sales	1,081.4		724.3		2,106.0		1,576.5
Financial Services revenue	86.9		84.6		175.5		170.5
Total revenues	$	1,168.3	$	808.9	$	2,281.5	$	1,747.0
Operating earnings:
Commercial & Industrial Group	$	55.5	$	22.9	$	106.2	$	54.4
Snap-on Tools Group	103.5		38.4		202.4		87.0
Repair Systems & Information Group	86.7		50.6		168.1		127.9
Financial Services	68.9		57.6		134.2		114.5
Segment operating earnings	314.6		169.5		610.9		383.8
Corporate	(28.6)		(20.8)		(58.7)		(39.3)
Operating earnings	286.0		148.7		552.2		344.5
Interest expense	(14.3)		(13.4)		(28.6)		(24.8)
Other income (expense) – net	3.4		2.0		7.7		3.5
Earnings before income taxes and equity earnings	$	275.1	$	137.3	$	531.3	$	323.2

(Amounts in millions)	July 3, 2021		January 2, 2021
Assets:
Commercial & Industrial Group	$	1,197.5	$	1,210.4
Snap-on Tools Group	763.6		775.3
Repair Systems & Information Group	1,618.6		1,399.7
Financial Services	2,165.0		2,170.3
Total assets from reportable segments	5,744.7		5,555.7
Corporate	1,115.3		1,063.2
Elimination of intersegment receivables	(68.4)		(61.6)
Total assets	$	6,791.6	$	6,557.3

XML

Summary of Accounting Policies - (Policies)

6 Months Ended

Jul. 03, 2021

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 2020 Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (“2020 year end”).

The company’s 2021 fiscal year, which ends on January 1, 2022, will contain 52 weeks of operating results. The company’s 2020 fiscal year contained 53 weeks of operating results, with the additional week occurring in the fourth quarter. Snap-on’s 2021 fiscal second quarter ended on July 3, 2021; the 2020 fiscal second quarter ended on June 27, 2020. The company’s 2021 and 2020 fiscal second 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 six month periods ended July 3, 2021, and June 27, 2020, have been made. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

Use of Estimates

Use of Estimates

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

Financial Instruments

Financial Instruments

The fair value of the company’s derivative financial instruments is generally determined using quoted prices in active markets for similar assets and liabilities. The carrying value of the company’s non-derivative financial instruments either approximates fair value, due to their short-term nature, or the amount disclosed for fair value is based upon a discounted cash flow analysis or quoted market values. See Note 10 for further information on financial instruments.

New Accounting Standards

New Accounting Standards

The following new accounting pronouncement was adopted by Snap-on in fiscal year 2021:

On January 3, 2021, the beginning of Snap-on’s 2021 fiscal year, the company adopted 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. The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements.

XML

Revenue Recognition - (Tables)

6 Months Ended

Jul. 03, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table shows the consolidated revenues by revenue source:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Revenue from contracts with customers	$	1,075.3	$	718.4	$	2,094.1	$	1,565.0
Other revenues	6.1		5.9		11.9		11.5
Total net sales	1,081.4		724.3		2,106.0		1,576.5
Financial services revenue	86.9		84.6		175.5		170.5
Total revenues	$	1,168.3	$	808.9	$	2,281.5	$	1,747.0

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:

	For the Three Months Ended July 3, 2021
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
North America*	$	126.6	$	416.3	$	236.8	$	—	$	—	$	779.7
Europe	79.2		43.8		66.5		—		—		189.5
All other	68.9		24.0		19.3		—		—		112.2
External net sales	274.7		484.1		322.6		—		—		1,081.4
Intersegment net sales	75.8		—		76.0		—		(151.8)		—
Total net sales	350.5		484.1		398.6		—		(151.8)		1,081.4
Financial services revenue	—		—		—		86.9		—		86.9
Total revenue	$	350.5	$	484.1	$	398.6	$	86.9	$	(151.8)	$	1,168.3

	For the Six Months Ended July 3, 2021
	Commercial		Snap-on		Repair Systems
	& Industrial		Tools		& Information		Financial				Snap-on
(Amounts in millions)	Group		Group		Group		Services		Eliminations		Incorporated
Net sales:
North America*	$	244.6	$	824.4	$	437.7	$	—	$	—	$	1,506.7
Europe	163.5		88.0		127.1		—		—		378.6
All other	137.7		50.0		33.0		—		—		220.7
External net sales	545.8		962.4		597.8		—		—		2,106.0
Intersegment net sales	150.4		—		148.4		—		(298.8)		—
Total net sales	696.2		962.4		746.2		—		(298.8)		2,106.0
Financial services revenue	—		—		—		175.5		—		175.5
Total revenue	$	696.2	$	962.4	$	746.2	$	175.5	$	(298.8)	$	2,281.5
* North America is comprised of the United States, Canada and Mexico.

	For the Three Months Ended June 27, 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*	$	96.9	$	291.5	$	148.5	$	—	$	—	$	536.9
Europe	54.9		17.5		36.9		—		—		109.3
All other	52.7		14.3		11.1		—		—		78.1
External net sales	204.5		323.3		196.5		—		—		724.3
Intersegment net sales	57.4		—		48.5		—		(105.9)		—
Total net sales	261.9		323.3		245.0		—		(105.9)		724.3
Financial services revenue	—		—		—		84.6		—		84.6
Total revenue	$	261.9	$	323.3	$	245.0	$	84.6	$	(105.9)	$	808.9

	For the Six Months Ended June 27, 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*	$	205.8	$	618.4	$	325.8	$	—	$	—	$	1,150.0
Europe	122.0		48.6		93.5		—		—		264.1
All other	103.7		32.2		26.5		—		—		162.4
External net sales	431.5		699.2		445.8		—		—		1,576.5
Intersegment net sales	130.3		—		113.8		—		(244.1)		—
Total net sales	561.8		699.2		559.6		—		(244.1)		1,576.5
Financial services revenue	—		—		—		170.5		—		170.5
Total revenue	$	561.8	$	699.2	$	559.6	$	170.5	$	(244.1)	$	1,747.0
* North America is comprised of the United States, Canada and Mexico.

The following tables represent external net sales disaggregated by customer type:

	For the Three Months Ended July 3, 2021
	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	$	25.7	$	484.1	$	322.6	$	—	$	—	$	832.4
All other professionals	249.0		—		—		—		—		249.0
External net sales	274.7		484.1		322.6		—		—		1,081.4
Intersegment net sales	75.8		—		76.0		—		(151.8)		—
Total net sales	350.5		484.1		398.6		—		(151.8)		1,081.4
Financial services revenue	—		—		—		86.9		—		86.9
Total revenue	$	350.5	$	484.1	$	398.6	$	86.9	$	(151.8)	$	1,168.3

	For the Six Months Ended July 3, 2021
	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	$	49.8	$	962.4	$	597.8	$	—	$	—	$	1,610.0
All other professionals	496.0		—		—		—		—		496.0
External net sales	545.8		962.4		597.8		—		—		2,106.0
Intersegment net sales	150.4		—		148.4		—		(298.8)		—
Total net sales	696.2		962.4		746.2		—		(298.8)		2,106.0
Financial services revenue	—		—		—		175.5		—		175.5
Total revenue	$	696.2	$	962.4	$	746.2	$	175.5	$	(298.8)	$	2,281.5

	For the Three Months Ended June 27, 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	$	20.0	$	323.3	$	196.5	$	—	$	—	$	539.8
All other professionals	184.5		—		—		—		—		184.5
External net sales	204.5		323.3		196.5		—		—		724.3
Intersegment net sales	57.4		—		48.5		—		(105.9)		—
Total net sales	261.9		323.3		245.0		—		(105.9)		724.3
Financial services revenue	—		—		—		84.6		—		84.6
Total revenue	$	261.9	$	323.3	$	245.0	$	84.6	$	(105.9)	$	808.9

	For the Six Months Ended June 27, 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	$	39.4	$	699.2	$	445.8	$	—	$	—	$	1,184.4
All other professionals	392.1		—		—		—		—		392.1
External net sales	431.5		699.2		445.8		—		—		1,576.5
Intersegment net sales	130.3		—		113.8		—		(244.1)		—
Total net sales	561.8		699.2		559.6		—		(244.1)		1,576.5
Financial services revenue	—		—		—		170.5		—		170.5
Total revenue	$	561.8	$	699.2	$	559.6	$	170.5	$	(244.1)	$	1,747.0

XML

Receivables - (Tables)

6 Months Ended

Jul. 03, 2021

Receivables [Abstract]

Components of Trade and Other Accounts Receivable

The components of Snap-on’s trade and other accounts receivable as of July 3, 2021, and January 2, 2021, are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Trade and other accounts receivable	$	674.9	$	667.0
Allowances for credit losses	(29.5)		(26.3)
Total trade and other accounts receivable – net	$	645.4	$	640.7

Accounts Receivable, Allowance for Credit Loss

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and six months ended July 3, 2021, and June 27, 2020:

	Three months ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Allowances for credit losses:
Beginning of period	$	25.8	$	20.4	$	26.3	$	20.9
Provision for credit losses	5.4		5.5		7.3		9.1
Charge-offs	(2.1)		(2.4)		(4.2)		(5.5)
Recoveries	—		—		—		—
Currency translation	0.4		0.1		0.1		(0.9)
End of period	$	29.5	$	23.6	$	29.5	$	23.6

Components of Finance and Contract Receivables, Current and Beyond One Year

The components of Snap-on’s current finance and contract receivables as of July 3, 2021, and January 2, 2021, are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance installment receivables	$	547.2	$	533.9
Finance lease receivables, net of unearned finance charges of $2.4 million and $4.4 million, respectively	11.2		20.2
Total finance receivables	558.4		554.1
Contract installment receivables	49.8		59.1
Contract lease receivables, net of unearned finance charges of $18.4 million and $18.2 million, respectively	56.3		55.7
Total contract receivables	106.1		114.8
Total	664.5		668.9
Allowances for credit losses:
Finance installment receivables	(22.9)		(23.6)
Finance lease receivables	(0.2)		(0.3)
Total finance allowance for credit losses	(23.1)		(23.9)
Contract installment receivables	(0.8)		(1.4)
Contract lease receivables	(1.4)		(0.9)
Total contract allowance for credit losses	(2.2)		(2.3)
Total allowance for credit losses	(25.3)		(26.2)
Total current finance and contract receivables – net	$	639.2	$	642.7
Finance receivables – net	$	535.3	$	530.2
Contract receivables – net	103.9		112.5
Total current finance and contract receivables – net	$	639.2	$	642.7

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of July 3, 2021, and January 2, 2021, are as follows: 

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance installment receivables	$	1,165.5	$	1,173.1
Finance lease receivables, net of unearned finance charges of $1.1 million and $2.5 million, respectively	8.1		15.6
Total finance receivables	1,173.6		1,188.7
Contract installment receivables	201.0		199.7
Contract lease receivables, net of unearned finance charges of $30.3 million and $30.2 million, respectively	185.7		181.7
Total contract receivables	386.7		381.4
Total	1,560.3		1,570.1
Allowances for credit losses:
Finance installment receivables	(49.1)		(52.1)
Finance lease receivables	(0.1)		(0.3)
Total finance allowance for credit losses	(49.2)		(52.4)
Contract installment receivables	(3.1)		(3.1)
Contract lease receivables	(3.7)		(3.6)
Total contract allowance for credit losses	(6.8)		(6.7)
Total allowance for credit losses	(56.0)		(59.1)
Total long-term finance and contract receivables – net	$	1,504.3	$	1,511.0
Finance receivables – net	$	1,124.4	$	1,136.3
Contract receivables – net	379.9		374.7
Total long-term finance and contract receivables – net	$	1,504.3	$	1,511.0

Financing Receivable Credit Quality Indicators

The amortized cost basis of finance and contract receivables by origination year as of July 3, 2021, are as follows:

(Amounts in millions)	2021		2020		2019		2018		2017		Prior		Total
Finance Receivables:
Delinquent	$	2.3	$	15.5	$	9.2	$	5.1	$	2.7	$	1.1	$	35.9
Non-delinquent	695.0		645.8		227.8		90.8		30.2		6.5		1,696.1
Total Finance receivables	$	697.3	$	661.3	$	237.0	$	95.9	$	32.9	$	7.6	$	1,732.0
Contract receivables:
Delinquent	$	—	$	0.4	$	0.6	$	0.4	$	0.1	$	0.1	$	1.6
Non-delinquent	91.0		146.2		106.5		71.1		41.2		35.2		491.2
Total Contract receivables	$	91.0	$	146.6	$	107.1	$	71.5	$	41.3	$	35.3	$	492.8

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 six months ended July 3, 2021, and June 27, 2020:

 

	Three Months Ended July 3, 2021				Six Months Ended July 3, 2021
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for credit losses:
Beginning of period	$	75.3	$	9.2	$	76.3	$	9.0
Provision for credit losses	6.6		0.1		17.9		0.8
Charge-offs	(12.4)		(0.5)		(27.3)		(1.1)
Recoveries	2.8		0.2		5.4		0.3
Currency translation	—		—		—		—
End of period	$	72.3	$	9.0	$	72.3	$	9.0

	Three Months Ended June 27, 2020				Six Months Ended June 27, 2020
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for credit losses:
Beginning of period	$	69.2	$	8.6	$	61.9	$	5.6
Impact of adopting ASU No. 2016-13	—		—		5.2		2.9
Provision for credit losses	15.1		1.2		31.4		2.6
Charge-offs	(14.2)		(0.9)		(30.1)		(2.2)
Recoveries	2.2		0.2		4.2		0.2
Currency translation	0.2		—		(0.1)		—
End of period	$	72.5	$	9.1	$	72.5	$	9.1

Aging of Finance and Contract Receivables

The aging of finance and contract receivables as of July 3, 2021, and January 2, 2021, is as follows:

(Amounts in millions)	30-59 Days Past Due		60-90 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Total Not Past Due		Total		Greater Than 90 Days Past Due and Accruing
July 3, 2021:
Finance receivables	$	13.4	$	8.3	$	14.2	$	35.9	$	1,696.1	$	1,732.0	$	11.8
Contract receivables	0.7		0.2		0.7		1.6		491.2		492.8		0.1
January 2, 2021:
Finance receivables	$	18.4	$	12.2	$	21.1	$	51.7	$	1,691.1	$	1,742.8	$	18.2
Contract receivables	1.3		0.6		1.5		3.4		492.8		496.2		0.2

Schedule of Finance and Contract Receivables on Nonaccrual Status

The amount of finance and contract receivables on nonaccrual status as of July 3, 2021, and January 2, 2021, is as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance receivables	$	8.2	$	9.6
Contract receivables	1.6		2.4

XML

Inventories - (Tables)

6 Months Ended

Jul. 03, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories by Major Classification

Inventories by major classification are as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finished goods	$	648.1	$	643.4
Work in progress	64.4		61.6
Raw materials	133.2		125.5
Total FIFO value	845.7		830.5
Excess of current cost over LIFO cost	(84.8)		(84.0)
Total inventories – net	$	760.9	$	746.5

XML

Goodwill and Other Intangible Assets - (Tables)

6 Months Ended

Jul. 03, 2021

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 six months ended July 3, 2021, are as follows:

(Amounts in millions)	Commercial & Industrial Group		Snap-on Tools Group		Repair Systems & Information Group		Total
Balance as of January 2, 2021	$	331.2	$	12.4	$	638.8	$	982.4
Currency translation	(6.5)		—		(3.1)		(9.6)
Acquisitions and related adjustments	9.6		—		195.2		204.8
Balance as of July 3, 2021	$	334.3	$	12.4	$	830.9	$	1,177.6

Other Intangible Assets by Major Class

Additional disclosures related to other intangible assets are as follows:

	July 3, 2021				January 2, 2021
(Amounts in millions)	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Amortized other intangible assets:
Customer relationships	$	191.6	$	(135.9)	$	191.5	$	(130.1)
Developed technology	22.1		(20.7)		21.8		(19.9)
Internally developed software	178.6		(133.7)		172.2		(128.0)
Patents	43.8		(25.0)		43.2		(25.3)
Trademarks	4.0		(2.4)		3.9		(2.4)
Other	8.2		(4.0)		8.2		(3.9)
Total	448.3		(321.7)		440.8		(309.6)
Non-amortized trademarks	128.6		—		129.6		—
Total other intangible assets	$	576.9	$	(321.7)	$	570.4	$	(309.6)

Weighted-Average Amortization Period by Major Class

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

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

XML

Exit and Disposal Activities (Tables)

6 Months Ended

Jul. 03, 2021

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 and six month periods ended July 3, 2021. For the respective three and six month periods ended June 27, 2020, Snap-on recorded costs of $4.0 million and $11.5 million for exit and disposal activities. The costs associated with exit and disposal activities by operating segment are as follows:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Exit and disposal costs
Cost of goods sold:
Commercial & Industrial Group	$	—	$	2.0	$	—	$	6.4
Repair System & Information Group	—		—		—		0.7
Total cost of goods sold	$	—	$	2.0	$	—	$	7.1
Operating Expenses:
Snap-on Tools Group	$	—	$	0.6	$	—	$	0.6
Repair System & Information Group	—		1.4		—		3.8
Total operating expenses	$	—	$	2.0	$	—	$	4.4
Total exit and disposal costs:
Commercial & Industrial Group	$	—	$	2.0	$	—	$	6.4
Snap-on Tools Group	—		0.6		—		0.6
Repair System & Information Group	—		1.4		—		4.5
Total exit and disposal costs	$	—	$	4.0	$	—	$	11.5

Snap-on’s exit and disposal accrual activity for the first six months of 2021 is as follows:

	Balance at		First Quarter				Balance at		Second Quarter				Balance at
(Amounts in millions)	January 2, 2021		Provision		Usage		April 3, 2021		Provision		Usage		July 3, 2021
Severance costs:
Commercial & Industrial Group	$	5.8	$	—	$	(0.3)	$	5.5	$	—	$	(0.5)	$	5.0
Snap-on Tools Group	0.4		—		—		0.4		—		—		0.4
Repair System & Information Group	3.8		—		(0.2)		3.6		—		(0.5)		3.1
Total	$	10.0	$	—	$	(0.5)	$	9.5	$	—	$	(1.0)	$	8.5

XML

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

6 Months Ended

Jul. 03, 2021

Debt Disclosure [Abstract]

Schedule of Short-term and Long-term Debt

Short-term and long-term debt as of July 3, 2021, and January 2, 2021, consisted of the following:

(Amounts in millions)	July 3, 2021		January 2, 2021
6.125% unsecured notes due 2021	$	250.0	$	250.0
3.25% unsecured notes due 2027	300.0		300.0
4.10% unsecured notes due 2048	400.0		400.0
3.10% unsecured notes due 2050	500.0		500.0
Other*	0.6		0.6
	1,450.6		1,450.6
Less: notes payable and current maturities of long-term debt
Current maturities of long-term debt	(250.0)		(250.0)
Other notes*	(18.1)		(18.5)
	(268.1)		(268.5)
Total long-term debt	$	1,182.5	$	1,182.1

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

XML

Financial Instruments - (Tables)

6 Months Ended

Jul. 03, 2021

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:

	July 3, 2021				January 2, 2021
(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Finance receivables – net	$	1,659.7	$	2,008.5	$	1,666.5	$	2,024.4
Contract receivables – net	483.8		542.2		487.2		545.4
Long-term debt and notes payable and current maturities of long-term debt	1,450.6		1,605.8		1,450.6		1,678.2

XML

Pension Plans - (Tables)

6 Months Ended

Jul. 03, 2021

Retirement Benefits [Abstract]

Schedule of Net Periodic Pension Cost

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Service cost	$	6.9	$	6.6	$	14.4	$	13.5
Interest cost	10.5		12.3		21.1		24.4
Expected return on plan assets	(23.5)		(23.7)		(47.1)		(47.4)
Amortization of unrecognized loss	9.1		8.8		18.2		17.2
Net periodic pension cost	$	3.0	$	4.0	$	6.6	$	7.7

XML

Postretirement Health Care Plans - (Tables)

6 Months Ended

Jul. 03, 2021

Postemployment Benefits [Abstract]

Schedule of Net Periodic Postretirement Health Care Cost

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Interest cost	$	0.3	$	0.3	$	0.6	$	0.7
Expected return on plan assets	(0.2)		(0.1)		(0.4)		(0.3)
Net periodic postretirement health care cost	$	0.1	$	0.2	$	0.2	$	0.4

XML

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

6 Months Ended

Jul. 03, 2021

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 six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of option (in years)	5.33	5.53
Expected volatility factor	21.80%	21.67%
Expected dividend yield	2.59%	2.78%
Risk-free interest rate	0.67%	1.50%

Summary of Stock Option Activity

A summary of stock option activity as of and for the six months ended July 3, 2021, is presented below:

	Shares (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 2, 2021	3,120	$	142.47
Granted	333	189.91
Exercised	(877)	144.66
Forfeited or expired	(23)	168.73
Outstanding at July 3, 2021	2,553	147.67		6.0	$	194.6
Exercisable at July 3, 2021	1,790	138.09		4.8	153.6

* Weighted-average

Summary of Changes in Non-Vested Performance Awards

Changes to the company’s non-vested PSUs and RSUs during the six months ended July 3, 2021, are as follows:

	Shares (in thousands)	Fair Value Price per Share*
Non-vested performance awards at January 2, 2021	76	$	155.61
Granted	127	187.12
Vested	—	—
Cancellations and other	(3)	181.51
Non-vested performance awards at July 3, 2021	200	175.18

* Weighted-average

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 six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of stock-settled SARs (in years)	3.94	3.75
Expected volatility factor	22.50%	22.50%
Expected dividend yield	2.59%	2.78%
Risk-free interest rate	0.19%	1.42%

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the six months ended July 3, 2021, and June 27, 2020, using the Black-Scholes valuation model:

	Six Months Ended
	July 3, 2021	June 27, 2020
Expected term of cash-settled SARs (in years)	3.59	3.43
Expected volatility factor	22.49%	32.04%
Expected dividend yield	2.20%	3.23%
Risk-free interest rate	0.45%	0.19%

Summary of Changes in SARs

Changes to the company’s stock-settled SARs during the six months ended July 3, 2021, are as follows:

	Stock-settled SARs (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 2, 2021	502	$	151.59
Granted	83	189.89
Exercised	(48)	144.52
Forfeited or expired	(136)	152.26
Outstanding at July 3, 2021	401	160.06		7.2	$	25.6
Exercisable at July 3, 2021	230	151.12		5.8	16.7

* Weighted-average

Changes to the company’s non-vested cash-settled SARs during the six months ended July 3, 2021, are as follows:

	Cash-settled SARs (in thousands)	Fair Value Price per Share*
Non-vested cash-settled SARs at January 2, 2021	2	$	36.99
Granted	1	44.24
Vested	(1)	62.80
Non-vested cash-settled SARs at July 3, 2021	2	54.36

* Weighted-average

XML

Earnings Per Share - (Tables)

6 Months Ended

Jul. 03, 2021

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Common Share

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

	Three Months Ended		Six Months Ended
	July 3, 2021	June 27, 2020	July 3, 2021	June 27, 2020
Weighted-average common shares outstanding	54,051,436	54,413,820	54,117,937	54,468,839
Effect of dilutive securities	1,256,296	378,730	1,094,874	451,621
Weighted-average common shares outstanding, assuming dilution	55,307,732	54,792,550	55,212,811	54,920,460

XML

Commitments and Contingencies - (Tables)

6 Months Ended

Jul. 03, 2021

Commitments and Contingencies Disclosure [Abstract]

Summary of Product Warranty Accrual Activity

Snap-on’s product warranty accrual activity for the three and six months ended July 3, 2021, and June 27, 2020, is as follows:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Warranty reserve:
Beginning of period	$	18.3	$	17.2	$	17.6	$	17.3
Additions	3.8		2.3		7.9		6.0
Usage	(3.6)		(2.3)		(7.0)		(6.1)
End of period	$	18.5	$	17.2	$	18.5	$	17.2

XML

Leases - (Tables)

6 Months Ended

Jul. 03, 2021

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 July 3, 2021, and January 2, 2021 is as follows:

(Amounts in millions)	July 3, 2021		January 2, 2021
Finance leases:
Property and equipment - gross	$	22.9	$	24.3
Accumulated depreciation and amortization	(17.2)		(17.5)
Property and equipment - net	$	5.7	$	6.8
Other accrued liabilities	$	2.6	$	2.7
Other long-term liabilities	5.7		7.4
Total finance lease liabilities	$	8.3	$	10.1
Operating leases:
Operating lease right-of-use assets	$	52.4	$	51.9
Other accrued liabilities	$	19.7	$	19.3
Operating lease liabilities	34.2		34.0
Total operating lease liabilities	$	53.9	$	53.3

XML

Other Income (Expense) - Net - (Tables)

6 Months Ended

Jul. 03, 2021

Other Income and Expenses [Abstract]

Schedule of Other Income (Expense) - Net

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

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Interest income	$	0.4	$	0.3	$	0.8	$	0.7
Net foreign exchange income (loss)	0.2		(0.7)		—		(2.6)
Net periodic pension and postretirement benefits – non-service	3.8		2.4		7.6		5.4
Foreign currency translation loss from sale of equity interest	(1.0)		—		(1.0)		—
Other	—		—		0.3		—
Total other income (expense) – net	$	3.4	$	2.0	$	7.7	$	3.5

XML

Accumulated Other Comprehensive Income (Loss) - (Tables)

6 Months Ended

Jul. 03, 2021

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 July 3, 2021:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of April 3, 2021	$	(103.7)	$	10.1	$	(294.7)	$	(388.3)
Other comprehensive income before reclassifications	20.2		—		—		20.2
Amounts reclassified from Accumulated OCI	(1.0)		(0.4)		6.8		5.4
Net other comprehensive income (loss)	19.2		(0.4)		6.8		25.6
Balance as of July 3, 2021	$	(84.5)	$	9.7	$	(287.9)	$	(362.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended July 3, 2021:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of January 2, 2021	$	(74.7)	$	10.5	$	(301.6)	$	(365.8)
Other comprehensive loss before reclassifications	(8.8)		—		—		(8.8)
Amounts reclassified from Accumulated OCI	(1.0)		(0.8)		13.7		11.9
Net other comprehensive income (loss)	(9.8)		(0.8)		13.7		3.1
Balance as of July 3, 2021	$	(84.5)	$	9.7	$	(287.9)	$	(362.7)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended June 27, 2020:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of March 28, 2020	$	(295.4)	$	10.3	$	(324.8)	$	(609.9)
Other comprehensive income before reclassifications	87.8		1.4		—		89.2
Amounts reclassified from Accumulated OCI	—		(0.4)		6.7		6.3
Net other comprehensive income	87.8		1.0		6.7		95.5
Balance as of June 27, 2020	$	(207.6)	$	11.3	$	(318.1)	$	(514.4)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended June 27, 2020:

(Amounts in millions)	Foreign Currency Translation		Cash Flow Hedges		Defined Benefit Pension and Postretirement Plans		Total
Balance as of December 28, 2019	$	(187.4)	$	10.7	$	(331.2)	$	(507.9)
Other comprehensive income (loss) before reclassifications	(20.2)		1.4		—		(18.8)
Amounts reclassified from Accumulated OCI	—		(0.8)		13.1		12.3
Net other comprehensive income (loss)	(20.2)		0.6		13.1		(6.5)
Balance as of June 27, 2020	$	(207.6)	$	11.3	$	(318.1)	$	(514.4)

Reclassifications Out of Accumulated OCI

The reclassifications out of Accumulated OCI for the three and six month periods ended July 3, 2021, and June 27, 2020, are as follows: 

	Amount Reclassified from Accumulated OCI
	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020		Statement of Earnings Presentation
(Amounts in millions)
Foreign currency loss from sale of equity interest:
Foreign currency	$	1.0	$	—	$	1.0	$	—	Other income (expense) - net
Income tax expense	—		—		—		—		Income tax expense
Net of tax	1.0		—		1.0		—
Gains on cash flow hedges:
Treasury locks	$	0.4	$	0.4	$	0.8	$	0.8	Interest expense
Income tax expense	—		—		—		—		Income tax expense
Net of tax	0.4		0.4		0.8		0.8
Amortization of net unrecognized losses	(9.1)		(8.8)		(18.2)		(17.2)		See footnote below*
Income tax benefit	2.3		2.1		4.5		4.1		Income tax expense
Net of tax	(6.8)		(6.7)		(13.7)		(13.1)
Total reclassifications for the period, net of tax	$	(5.4)	$	(6.3)	$	(11.9)	$	(12.3)

* 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.

XML

Segments - (Tables)

6 Months Ended

Jul. 03, 2021

Segment Reporting [Abstract]

Net Sales by Segment

Financial Data by Segment:

	Three Months Ended				Six Months Ended
(Amounts in millions)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net sales:
Commercial & Industrial Group	$	350.5	$	261.9	$	696.2	$	561.8
Snap-on Tools Group	484.1		323.3		962.4		699.2
Repair Systems & Information Group	398.6		245.0		746.2		559.6
Segment net sales	1,233.2		830.2		2,404.8		1,820.6
Intersegment eliminations	(151.8)		(105.9)		(298.8)		(244.1)
Total net sales	1,081.4		724.3		2,106.0		1,576.5
Financial Services revenue	86.9		84.6		175.5		170.5
Total revenues	$	1,168.3	$	808.9	$	2,281.5	$	1,747.0
Operating earnings:
Commercial & Industrial Group	$	55.5	$	22.9	$	106.2	$	54.4
Snap-on Tools Group	103.5		38.4		202.4		87.0
Repair Systems & Information Group	86.7		50.6		168.1		127.9
Financial Services	68.9		57.6		134.2		114.5
Segment operating earnings	314.6		169.5		610.9		383.8
Corporate	(28.6)		(20.8)		(58.7)		(39.3)
Operating earnings	286.0		148.7		552.2		344.5
Interest expense	(14.3)		(13.4)		(28.6)		(24.8)
Other income (expense) – net	3.4		2.0		7.7		3.5
Earnings before income taxes and equity earnings	$	275.1	$	137.3	$	531.3	$	323.2

Assets by Segment

(Amounts in millions)	July 3, 2021		January 2, 2021
Assets:
Commercial & Industrial Group	$	1,197.5	$	1,210.4
Snap-on Tools Group	763.6		775.3
Repair Systems & Information Group	1,618.6		1,399.7
Financial Services	2,165.0		2,170.3
Total assets from reportable segments	5,744.7		5,555.7
Corporate	1,115.3		1,063.2
Elimination of intersegment receivables	(68.4)		(61.6)
Total assets	$	6,791.6	$	6,557.3

XML

Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 1,075.3	$ 718.4	$ 2,094.1	$ 1,565.0
Net sales	1,168.3	808.9	2,281.5	1,747.0
Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	(151.8)	(105.9)	(298.8)	(244.1)
Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	1,233.2	830.2	2,404.8	1,820.6
Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	350.5	261.9	696.2	561.8
Commercial & Industrial Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	350.5	261.9	696.2	561.8
Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	484.1	323.3	962.4	699.2
Snap-on Tools Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	484.1	323.3	962.4	699.2
Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	398.6	245.0	746.2	559.6
Repair Systems & Information Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	398.6	245.0	746.2	559.6
Financial Services
Disaggregation of Revenue [Line Items]
Net sales	86.9	84.6	175.5	170.5
Other revenues
Disaggregation of Revenue [Line Items]
Net sales	6.1	5.9	11.9	11.5
Excluding Financial Services
Disaggregation of Revenue [Line Items]
Net sales	1,081.4	724.3	2,106.0	1,576.5
Excluding Financial Services | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	832.4	539.8	1,610.0	1,184.4
Excluding Financial Services | All other professionals
Disaggregation of Revenue [Line Items]
Net sales	249.0	184.5	496.0	392.1
Excluding Financial Services | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	(151.8)	(105.9)	(298.8)	(244.1)
Excluding Financial Services | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	1,081.4	724.3	2,106.0	1,576.5
Excluding Financial Services | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	274.7	204.5	545.8	431.5
Excluding Financial Services | Commercial & Industrial Group | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	25.7	20.0	49.8	39.4
Excluding Financial Services | Commercial & Industrial Group | All other professionals
Disaggregation of Revenue [Line Items]
Net sales	249.0	184.5	496.0	392.1
Excluding Financial Services | Commercial & Industrial Group | Intersegment eliminations
Disaggregation of Revenue [Line Items]
Net sales	75.8	57.4	150.4	130.3
Excluding Financial Services | Commercial & Industrial Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	350.5	261.9	696.2	561.8
Excluding Financial Services | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	484.1	323.3	962.4	699.2
Excluding Financial Services | Snap-on Tools Group | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	484.1	323.3	962.4	699.2
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	484.1	323.3	962.4	699.2
Excluding Financial Services | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	322.6	196.5	597.8	445.8
Excluding Financial Services | Repair Systems & Information Group | Vehicle service professionals
Disaggregation of Revenue [Line Items]
Net sales	322.6	196.5	597.8	445.8
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	76.0	48.5	148.4	113.8
Excluding Financial Services | Repair Systems & Information Group | Operating Segments
Disaggregation of Revenue [Line Items]
Net sales	398.6	245.0	746.2	559.6
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	779.7	536.9	1,506.7	1,150.0
Excluding Financial Services | North America | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	126.6	96.9	244.6	205.8
Excluding Financial Services | North America | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	416.3	291.5	824.4	618.4
Excluding Financial Services | North America | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	236.8	148.5	437.7	325.8
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	189.5	109.3	378.6	264.1
Excluding Financial Services | Europe | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	79.2	54.9	163.5	122.0
Excluding Financial Services | Europe | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	43.8	17.5	88.0	48.6
Excluding Financial Services | Europe | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	66.5	36.9	127.1	93.5
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	112.2	78.1	220.7	162.4
Excluding Financial Services | All other | Commercial & Industrial Group
Disaggregation of Revenue [Line Items]
Net sales	68.9	52.7	137.7	103.7
Excluding Financial Services | All other | Snap-on Tools Group
Disaggregation of Revenue [Line Items]
Net sales	24.0	14.3	50.0	32.2
Excluding Financial Services | All other | Repair Systems & Information Group
Disaggregation of Revenue [Line Items]
Net sales	19.3	11.1	33.0	26.5
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	86.9	84.6	175.5	170.5
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	$ 86.9	$ 84.6	$ 175.5	$ 170.5

XML

Revenue Recognition - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 03, 2021	Jul. 03, 2021	Jan. 02, 2021
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	$ 68.8	$ 68.8	$ 61.0
Contract with customer, liability, revenue recognized	$ 10.6	$ 41.6
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%

XML

Revenue Recognition - Performance Obligations (Details) $ in Millions	Jul. 03, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contractual obligation	$ 205.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-04
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, remaining performance obligation, percentage of revenue recognized	60.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
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	35.00%

XML

Acquisitions - Narrative (Detail) - USD ($) $ in Millions					6 Months Ended
	Jul. 01, 2021	Feb. 26, 2021	Sep. 28, 2020	Jan. 31, 2020	Jul. 03, 2021	Jun. 27, 2020	Jan. 02, 2021
Business Acquisition [Line Items]
Payment to acquire business, net of cash acquired					$ 195.8	$ 6.1
Goodwill					1,177.6		$ 982.4
Dealer-FX
Business Acquisition [Line Items]
Payment to acquire business, net of cash acquired		$ 200.0
Cash purchase price of acquisition		$ 200.1
Goodwill					195.2
AutoCrib
Business Acquisition [Line Items]
Cash purchase price of acquisition			$ 35.4
Goodwill					18.3
Sigmavision
Business Acquisition [Line Items]
Cash purchase price of acquisition				$ 5.9
Goodwill					5.6
Secateurs Pradines
Business Acquisition [Line Items]
Equity method investment, ownership percentage	100.00%
Consideration transferred, including equity interest	$ 20.0
Payment to acquire business, net of cash acquired	15.8
Other cash payment to acquire business	$ 1.8
Goodwill					$ 9.6
Deville S.A. | Secateurs Pradines
Business Acquisition [Line Items]
Equity method investment, ownership percentage	35.00%
Equity method investments	$ 21.8

XML

Receivables - Narrative (Detail)	6 Months Ended
	Jul. 03, 2021 portfolioSegment
Financing Receivable, Past Due [Line Items]
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	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
Finance Receivables
Financing Receivable, Past Due [Line Items]
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 | 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

XML

Receivables - Components of Trade and Other Accounts Receivable (Details) - USD ($) $ in Millions	Jul. 03, 2021	Apr. 03, 2021	Jan. 02, 2021	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019
Receivables [Abstract]
Trade and other accounts receivable	$ 674.9		$ 667.0
Allowances for credit losses	(29.5)	$ (25.8)	(26.3)	$ (23.6)	$ (20.4)	$ (20.9)
Total trade and other accounts receivable – net	$ 645.4		$ 640.7

XML

Receivables - Trade and Other Receivables Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Allowances for credit losses:
Beginning of period	$ 25.8	$ 20.4	$ 26.3	$ 20.9
Provision for credit losses	5.4	5.5	7.3	9.1
Charge-offs	(2.1)	(2.4)	(4.2)	(5.5)
Recoveries	0.0	0.0	0.0	0.0
Currency translation	0.4	0.1	0.1	(0.9)
End of period	$ 29.5	$ 23.6	$ 29.5	$ 23.6

XML

Receivables - Components of Current Finance and Contract Receivables (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance and contract receivables, current	$ 664.5	$ 668.9
Allowance for credit losses, current	(25.3)	(26.2)
Total current finance and contract receivables – net	639.2	642.7
Finance Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance and contract receivables, current	558.4	554.1
Allowance for credit losses, current	(23.1)	(23.9)
Total current finance and contract receivables – net	535.3	530.2
Finance Receivables | Finance and Contract Installment Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance and contract receivables, current	547.2	533.9
Allowance for credit losses, current	(22.9)	(23.6)
Finance Receivables | Finance and Contract Lease Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Unearned finance charges, current	2.4	4.4
Finance and contract receivables, current	11.2	20.2
Allowance for credit losses, current	(0.2)	(0.3)
Contract Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance and contract receivables, current	106.1	114.8
Allowance for credit losses, current	(2.2)	(2.3)
Total current finance and contract receivables – net	103.9	112.5
Contract Receivables | Finance and Contract Installment Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance and contract receivables, current	49.8	59.1
Allowance for credit losses, current	(0.8)	(1.4)
Contract Receivables | Finance and Contract Lease Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Unearned finance charges, current	18.4	18.2
Finance and contract receivables, current	56.3	55.7
Allowance for credit losses, current	$ (1.4)	$ (0.9)

XML

Receivables - Components of Finance and Contract Receivables Beyond One Year (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Long-term finance and contract receivables	$ 1,560.3	$ 1,570.1
Allowance for credit loss, noncurrent	(56.0)	(59.1)
Total long-term finance and contract receivables – net	1,504.3	1,511.0
Finance Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Long-term finance and contract receivables	1,173.6	1,188.7
Allowance for credit loss, noncurrent	(49.2)	(52.4)
Total long-term finance and contract receivables – net	1,124.4	1,136.3
Finance Receivables | Finance and Contract Installment Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Long-term finance and contract receivables	1,165.5	1,173.1
Allowance for credit loss, noncurrent	(49.1)	(52.1)
Finance Receivables | Finance and Contract Lease Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Unearned finance charges, noncurrent	1.1	2.5
Long-term finance and contract receivables	8.1	15.6
Allowance for credit loss, noncurrent	(0.1)	(0.3)
Contract Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Long-term finance and contract receivables	386.7	381.4
Allowance for credit loss, noncurrent	(6.8)	(6.7)
Total long-term finance and contract receivables – net	379.9	374.7
Contract Receivables | Finance and Contract Installment Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Long-term finance and contract receivables	201.0	199.7
Allowance for credit loss, noncurrent	(3.1)	(3.1)
Contract Receivables | Finance and Contract Lease Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Unearned finance charges, noncurrent	30.3	30.2
Long-term finance and contract receivables	185.7	181.7
Allowance for credit loss, noncurrent	$ (3.7)	$ (3.6)

XML

Receivables - Schedule of Performing and Nonperforming Finance and Contract Receivables (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Finance Receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 697.3
2020	661.3
2019	237.0
2018	95.9
2017	32.9
Prior	7.6
Total	1,732.0	$ 1,742.8
Contract Receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2021	91.0
2020	146.6
2019	107.1
2018	71.5
2017	41.3
Prior	35.3
Total	492.8	$ 496.2
Delinquent | Finance Receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2021	2.3
2020	15.5
2019	9.2
2018	5.1
2017	2.7
Prior	1.1
Total	35.9
Delinquent | Contract Receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0.0
2020	0.4
2019	0.6
2018	0.4
2017	0.1
Prior	0.1
Total	1.6
Non-delinquent | Finance Receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2021	695.0
2020	645.8
2019	227.8
2018	90.8
2017	30.2
Prior	6.5
Total	1,696.1
Non-delinquent | Contract Receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2021	91.0
2020	146.2
2019	106.5
2018	71.1
2017	41.2
Prior	35.2
Total	$ 491.2

XML

Receivables - Finance and Contract Receivables Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Finance Receivables
Allowances for credit losses:
Beginning of period	$ 75.3	$ 69.2	$ 76.3	$ 61.9
Impact of adopting ASU No. 2016-13		0.0		5.2
Provision for credit losses	6.6	15.1	17.9	31.4
Charge-offs	(12.4)	(14.2)	(27.3)	(30.1)
Recoveries	2.8	2.2	5.4	4.2
Currency translation	0.0	0.2	0.0	(0.1)
End of period	72.3	72.5	72.3	72.5
Contract Receivables
Allowances for credit losses:
Beginning of period	9.2	8.6	9.0	5.6
Impact of adopting ASU No. 2016-13		0.0		2.9
Provision for credit losses	0.1	1.2	0.8	2.6
Charge-offs	(0.5)	(0.9)	(1.1)	(2.2)
Recoveries	0.2	0.2	0.3	0.2
Currency translation	0.0	0.0	0.0	0.0
End of period	$ 9.0	$ 9.1	$ 9.0	$ 9.1

XML

Receivables - Aging of Finance and Contract Receivables (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Finance Receivables
Financing Receivable, Past Due [Line Items]
Total	$ 1,732.0	$ 1,742.8
Greater Than 90 Days Past Due and Accruing	11.8	18.2
Finance Receivables | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total	13.4	18.4
Finance Receivables | 60-90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total	8.3	12.2
Finance Receivables | Greater Than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total	14.2	21.1
Finance Receivables | Total Past Due
Financing Receivable, Past Due [Line Items]
Total	35.9	51.7
Finance Receivables | Total Not Past Due
Financing Receivable, Past Due [Line Items]
Total	1,696.1	1,691.1
Contract Receivables
Financing Receivable, Past Due [Line Items]
Total	492.8	496.2
Greater Than 90 Days Past Due and Accruing	0.1	0.2
Contract Receivables | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total	0.7	1.3
Contract Receivables | 60-90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total	0.2	0.6
Contract Receivables | Greater Than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total	0.7	1.5
Contract Receivables | Total Past Due
Financing Receivable, Past Due [Line Items]
Total	1.6	3.4
Contract Receivables | Total Not Past Due
Financing Receivable, Past Due [Line Items]
Total	$ 491.2	$ 492.8

XML

Receivables - Schedule of Finance and Contract Receivables on Nonaccrual Status (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Finance Receivables
Financing Receivable, Past Due [Line Items]
Nonaccrual	$ 8.2	$ 9.6
Contract Receivables
Financing Receivable, Past Due [Line Items]
Nonaccrual	$ 1.6	$ 2.4

XML

Inventories - Schedule of Inventories by Major Classification (Detail) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 648.1	$ 643.4
Work in progress	64.4	61.6
Raw materials	133.2	125.5
Total FIFO value	845.7	830.5
Excess of current cost over LIFO cost	(84.8)	(84.0)
Total inventories – net	$ 760.9	$ 746.5

XML

Inventories - Narrative (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020	Jan. 02, 2021
Geographic Valuation Methodologies Of Inventory [Line Items]
Percentage of FIFO Inventory	58.00%		58.00%		57.00%
Effect of LIFO inventory liquidation on income	$ 0	$ 0	$ 0	$ 0
United States
Geographic Valuation Methodologies Of Inventory [Line Items]
Percentage of FIFO Inventory	31.00%		31.00%
Percentage of LIFO Inventory	69.00%		69.00%

XML

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions	6 Months Ended
	Jul. 03, 2021 USD ($)
Goodwill [Roll Forward]
Balance as of December 28, 2019	$ 982.4
Currency translation	(9.6)
Acquisitions and related adjustments	204.8
Balance as of June 27, 2020	1,177.6
Commercial & Industrial Group
Goodwill [Roll Forward]
Balance as of December 28, 2019	331.2
Currency translation	(6.5)
Acquisitions and related adjustments	9.6
Balance as of June 27, 2020	334.3
Snap-on Tools Group
Goodwill [Roll Forward]
Balance as of December 28, 2019	12.4
Currency translation	0.0
Acquisitions and related adjustments	0.0
Balance as of June 27, 2020	12.4
Repair Systems & Information Group
Goodwill [Roll Forward]
Balance as of December 28, 2019	638.8
Currency translation	(3.1)
Acquisitions and related adjustments	195.2
Balance as of June 27, 2020	$ 830.9

XML

Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020	Jan. 02, 2021
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	$ 1,177,600,000		$ 1,177,600,000		$ 982,400,000
Accumulated impairment losses	0		$ 0
Weighted-average amortization period (in years)			11 years
Aggregate amortization expense	6,300,000	$ 5,700,000	$ 12,300,000	$ 11,400,000
Estimated annual amortization expense for fiscal period 2021	24,700,000		24,700,000
Estimated annual amortization expense for fiscal period 2022	22,200,000		22,200,000
Estimated annual amortization expense for fiscal period 2023	18,600,000		18,600,000
Estimated annual amortization expense for fiscal period 2024	13,200,000		13,200,000
Estimated annual amortization expense for fiscal period 2025	8,700,000		8,700,000
Estimated annual amortization expense for fiscal period 2026	8,000,000.0		8,000,000.0
Dealer-FX
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	195,200,000		195,200,000
Secateurs Pradines
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	9,600,000		$ 9,600,000
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	830,900,000		$ 830,900,000		638,800,000
Repair Systems & Information Group | Dealer-FX
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	195,200,000		195,200,000
Commercial & Industrial Group
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	334,300,000		334,300,000		$ 331,200,000
Commercial & Industrial Group | Secateurs Pradines
Acquired Finite And Indefinite Lived Intangible Assets [Line Items]
Goodwill	$ 9,600,000		$ 9,600,000

XML

Goodwill and Other Intangible Assets - Other Intangible Assets by Major Class (Detail) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 448.3	$ 440.8
Non-amortized trademarks	128.6	129.6
Total other intangible assets	576.9	570.4
Accumulated Amortization	(321.7)	(309.6)
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	191.6	191.5
Accumulated Amortization	(135.9)	(130.1)
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	22.1	21.8
Accumulated Amortization	(20.7)	(19.9)
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	178.6	172.2
Accumulated Amortization	(133.7)	(128.0)
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	43.8	43.2
Accumulated Amortization	(25.0)	(25.3)
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	4.0	3.9
Accumulated Amortization	(2.4)	(2.4)
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	8.2	8.2
Accumulated Amortization	$ (4.0)	$ (3.9)

XML

Goodwill and Other Intangible Assets - Weighted-Average Amortization Period by Major Class (Detail)	6 Months Ended
	Jul. 03, 2021
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)	3 years
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	6 years
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	7 years
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	5 years
Other
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	39 years

XML

Exit and Disposal Activities - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jan. 01, 2022	Jul. 03, 2021	Jun. 27, 2020	Apr. 03, 2021	Jan. 02, 2021
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	$ 0	$ 4,000,000.0		$ 0	$ 11,500,000
Restructuring reserve	$ 8,500,000			$ 8,500,000		$ 9,500,000	$ 10,000,000.0
Forecast
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs			$ 4,100,000

XML

Exit and Disposal Activities - Summary of Exit and Disposal Activities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	$ 0	$ 4,000,000.0	$ 0	$ 11,500,000
Commercial & Industrial Group
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	0	2,000,000.0	0	6,400,000
Repair Systems & Information Group
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	0	1,400,000	0	4,500,000
Snap-on Tools Group
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	0	600,000	0	600,000
Cost of goods sold:
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	0	2,000,000.0	0	7,100,000
Cost of goods sold: | Commercial & Industrial Group
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	0	2,000,000.0	0	6,400,000
Cost of goods sold: | Repair Systems & Information Group
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	0	0	0	700,000
Operating Expenses:
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	0	2,000,000.0	0	4,400,000
Operating Expenses: | Repair Systems & Information Group
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	0	1,400,000	0	3,800,000
Operating Expenses: | Snap-on Tools Group
Restructuring Cost and Reserve [Line Items]
Exit and disposal costs	$ 0	$ 600,000	$ 0	$ 600,000

XML

Exit and Disposal Activities - Restructuring Accrual Rollforward (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 03, 2021	Apr. 03, 2021
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 9.5	$ 10.0
Provision	0.0	0.0
Usage	(1.0)	(0.5)
Restructuring reserve, ending balance	8.5	9.5
Commercial & Industrial Group
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	5.5	5.8
Provision	0.0	0.0
Usage	(0.5)	(0.3)
Restructuring reserve, ending balance	5.0	5.5
Snap-on Tools Group
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	0.4	0.4
Provision	0.0	0.0
Usage	0.0	0.0
Restructuring reserve, ending balance	0.4	0.4
Repair Systems & Information Group
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	3.6	3.8
Provision	0.0	0.0
Usage	(0.5)	(0.2)
Restructuring reserve, ending balance	$ 3.1	$ 3.6

XML

Income Taxes - Narrative (Detail) - USD ($)	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Income Tax [Line Items]
Effective income tax rate	23.40%	24.20%
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

XML

Short-term and Long-term Debt - Summary (Detail) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Schedule Of Debt Instruments [Line Items]
Long term debt	$ 1,450.6	$ 1,450.6
Less: notes payable and current maturities of long-term debt
Current maturities of long-term debt	(250.0)	(250.0)
Total current debt	(268.1)	(268.5)
Long-term debt	1,182.5	1,182.1
Other notes
Less: notes payable and current maturities of long-term debt
Short-term debt	(18.1)	(18.5)
Other Debt
Schedule Of Debt Instruments [Line Items]
Long term debt	$ 0.6	0.6
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]
Unsecured notes, interest rate	6.125%
Long term debt	$ 250.0	250.0
3.25% unsecured notes due 2027 | Unsecured Debt
Schedule Of Debt Instruments [Line Items]
Unsecured notes, interest rate	3.25%
Long term debt	$ 300.0	300.0
4.10% unsecured notes due 2048 | Unsecured Debt
Schedule Of Debt Instruments [Line Items]
Unsecured notes, interest rate	4.10%
Long term debt	$ 400.0	400.0
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	$ 500.0

XML

Short-term and Long-term Debt - Narrative (Detail)	6 Months Ended
	Jul. 03, 2021 USD ($) revision	Jan. 02, 2021 USD ($)
Schedule Of Debt Instruments [Line Items]
Notes payable and current maturities of long-term debt	$ 268,100,000	$ 268,500,000
Other notes*
Schedule Of Debt Instruments [Line Items]
Short-term debt	17,500,000	14,900,000
Note Payable, Debt Amortization Costs And Fair Value Adjustments Of Interest Rate Swaps
Schedule Of Debt Instruments [Line Items]
Short-term debt	$ 600,000	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	$ 250,000,000.0
Unsecured notes, interest rate	6.125%
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	0.11
Actual debt-to-income ratio	0.44
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

XML

Financial Instruments - Narrative (Detail) - USD ($)	Jul. 03, 2021	Jan. 02, 2021
Equity Forwards
Investment Holdings [Line Items]
Equity forwards in place of common stock associated with its deferred compensation plans (in shares)	70,700
Treasury locks
Investment Holdings [Line Items]
Treasury locks outstanding	$ 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

XML

Financial Instruments - Fair Values of Financial Instruments Not Approximating Carrying Values in Financial Statements (Detail) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
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	$ 1,450.6	$ 1,450.6
Carrying Value | Finance Receivables
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance and contract receivables, after allowance for credit loss	1,659.7	1,666.5
Carrying Value | Contract Receivables
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance and contract receivables, after allowance for credit loss	483.8	487.2
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	1,605.8	1,678.2
Fair Value | Finance Receivables
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance and contract receivables, after allowance for credit loss	2,008.5	2,024.4
Fair Value | Contract Receivables
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance and contract receivables, after allowance for credit loss	$ 542.2	$ 545.4

XML

Pension Plans - Net Periodic Pension Cost (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 6.9	$ 6.6	$ 14.4	$ 13.5
Interest cost	10.5	12.3	21.1	24.4
Expected return on plan assets	(23.5)	(23.7)	(47.1)	(47.4)
Amortization of unrecognized loss	9.1	8.8	18.2	17.2
Net periodic cost	$ 3.0	$ 4.0	$ 6.6	$ 7.7

XML

Pension Plans - Narrative (Detail) $ in Millions	Jul. 03, 2021 USD ($)
Foreign Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Expected future employer contributions	$ 9.2
United States Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Expected future employer contributions	$ 2.2

XML

Postretirement Health Care Plans - Net Periodic Postretirement Health Care Cost (Detail) - Postretirement Health Coverage - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Postretirement Health Care Plans [Line Items]
Interest cost	$ 0.3	$ 0.3	$ 0.6	$ 0.7
Expected return on plan assets	(0.2)	(0.1)	(0.4)	(0.3)
Net periodic cost	$ 0.1	$ 0.2	$ 0.2	$ 0.4

XML

Stock-based Compensation and Other Stock Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net stock-based compensation expense	$ 11.5	$ 5.8	$ 23.8	$ 6.9
Cash received from stock purchase and option plan exercises	61.8	12.3	154.8	13.8
Tax benefit realized from exercise and vesting of share-based payment arrangements	$ 6.2	$ 0.8	$ 13.9	$ 2.3
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)	3,634,380		3,634,380

XML

Stock-based Compensation and Other Stock Plans - Stock Options Narrative (Details) - Stock Option - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
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)			$ 26.19	$ 22.95
Intrinsic value of stock exercised	$ 28.1	$ 3.3	$ 58.9	$ 4.7
Fair value of stock vested			12.5	$ 14.6
Unrecognized compensation cost related to non-vested award	$ 15.5		$ 15.5
Cost expected to be recognized over weighted-average period, in years			1 year 10 months 24 days

XML

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	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 3 months 29 days	5 years 6 months 10 days
Expected volatility factor	21.80%	21.67%
Expected dividend yield	2.59%	2.78%
Risk-free interest rate	0.67%	1.50%

XML

Stock-based Compensation and Other Stock Plans - Summary of Changes in Stock Options (Details) - Stock Option $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jul. 03, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (in shares) | shares	3,120
Granted (in shares) | shares	333
Exercised (in shares) | shares	(877)
Forfeited or expired (in shares) | shares	(23)
Ending balance (in shares) | shares	2,553
Exercisable at end of period (in shares) | shares	1,790
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 142.47
Granted (in dollars per share) | $ / shares	189.91
Exercised (in dollars per share) | $ / shares	144.66
Forfeited or expired (in dollars per share) | $ / shares	168.73
Ending balance (in dollars per share) | $ / shares	147.67
Exercisable at end of period (in dollars per share) | $ / shares	$ 138.09
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)	4 years 9 months 18 days
Outstanding, aggregate intrinsic value | $	$ 194.6
Exercisable, aggregate intrinsic value | $	$ 153.6

XML

Stock-based Compensation and Other Stock Plans - Performance Share Unit and Restricted Stock Awards Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
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)	$ 187.12	$ 155.34
Performance awards shares paid out (in shares)	0	21,184
Unrecognized compensation cost related to non-vested award	$ 22.7
Cost expected to be recognized over weighted-average period, in years	2 years 3 months 18 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average contractual term (in years)	3 years
Cliff vesting schedule	3 years

XML

Stock-based Compensation and Other Stock Plans - Summary of Changes in Non-Vested Performance Awards (Details) - Nonvested Performance Shares shares in Thousands	6 Months Ended
	Jul. 03, 2021 $ / 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	76
Granted (in shares) | shares	127
Vested (in shares) | shares	0
Cancellations and other (in shares) | shares	(3)
Ending balance (in shares) | shares	200
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	$ 155.61
Granted (in dollars per share) | $ / shares	187.12
Vested (in dollars per share) | $ / shares	0
Cancellations and other (in dollars per share) | $ / shares	181.51
Ending balance (in dollars per share) | $ / shares	$ 175.18

XML

Stock-based Compensation and Other Stock Plans - Stock Appreciation Rights Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
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)			$ 44.24
Intrinsic value of stock exercised	$ 100,000	$ 100,000	$ 600,000	$ 200,000
Fair value of stock vested			100,000	$ 0
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 10 months 24 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)			$ 24.05	$ 21.31
Intrinsic value of stock exercised	800,000	$ 0	$ 3,000,000.0	$ 0
Fair value of stock vested			2,100,000	$ 2,300,000
Unrecognized compensation cost related to non-vested award	$ 3,200,000		$ 3,200,000
Cost expected to be recognized over weighted-average period, in years			1 year 10 months 24 days

XML

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	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 years 11 months 8 days	3 years 9 months
Expected volatility factor	22.50%	22.50%
Expected dividend yield	2.59%	2.78%
Risk-free interest rate	0.19%	1.42%

XML

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	6 Months Ended
	Jul. 03, 2021 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	502
Granted (in shares) | shares	83
Exercised (in shares) | shares	(48)
Forfeited or expired (in shares) | shares	(136)
Ending balance (in shares) | shares	401
Exercisable at end of period (in shares) | shares	230
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	$ 151.59
Granted (in dollars per share) | $ / shares	189.89
Exercised (in dollars per share) | $ / shares	144.52
Forfeited or expired (in dollars per share) | $ / shares	152.26
Ending balance (in dollars per share) | $ / shares	160.06
Exercisable at end of period (in dollars per share) | $ / shares	$ 151.12
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
Outstanding, remaining contractual term	7 years 2 months 12 days
Exercisable, remaining contractual term	5 years 9 months 18 days
Outstanding, aggregate intrinsic value | $	$ 25.6
Exercisable, aggregate intrinsic value | $	$ 16.7

XML

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)	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 years 7 months 2 days	3 years 5 months 4 days
Expected volatility factor	22.49%	32.04%
Expected dividend yield	2.20%	3.23%
Risk-free interest rate	0.45%	0.19%

XML

Stock-based Compensation and Other Stock Plans - Summary of Changes in Non-Vested Cash-Settled SARs (Details) - Stock Appreciation Rights (SARs) shares in Thousands	6 Months Ended
	Jul. 03, 2021 $ / 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	$ 36.99
Granted (in dollars per share) | $ / shares	44.24
Vested (in dollars per share) | $ / shares	62.80
Ending balance (in dollars per share) | $ / shares	$ 54.36

XML

Stock-based Compensation and Other Stock Plans - Restricted Stock Awards Narrative (Details) - Restricted Stock - Non Employee Directors - shares	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	6,858	7,380
Vesting period	1 year

XML

Stock-based Compensation and Other Stock Plans - Employee Stock Purchase Plan Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in period (in shares)			82,286	25,425
Shares reserved for future issuance (in shares)	597,275		597,275
Participant contributions held	$ 500,000		$ 500,000
Compensation expense	$ 4,800,000	$ 0	$ 9,600,000	$ (100,000)
Franchise Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in period (in shares)			143,388	55,980
Shares reserved for future issuance (in shares)	270,162		270,162
Participant contributions held	$ 1,300,000		$ 1,300,000
Compensation expense	$ 11,300,000	$ 0	$ 16,700,000	$ (200,000)

XML

Stock-based Compensation and Other Stock Plans - Franchise Stock Purchase Plan Narrative (Details) - Franchise Stock - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in period (in shares)			143,388	55,980
Shares reserved for future issuance (in shares)	270,162		270,162
Participant contributions held	$ 1,300,000		$ 1,300,000
Compensation expense	$ 11,300,000	$ 0	$ 16,700,000	$ (200,000)

XML

Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Earnings Per Share [Abstract]
Weighted-average common shares outstanding (in shares)	54.0	54.4	54.1	54.5
Effect of dilutive securities (in shares)	1.3	0.4	1.1	0.4
Diluted (in shares)	55.3	54.8	55.2	54.9

XML

Earnings Per Share - Narrative (Detail) - shares	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Stock-Settled SARs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding options or stock settled SARs (in shares)	0	3,238,975

XML

Commitments and Contingencies - Summary of Product Warranty Accrual Activity (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning of period	$ 18.3	$ 17.2	$ 17.6	$ 17.3
Additions	3.8	2.3	7.9	6.0
Usage	(3.6)	(2.3)	(7.0)	(6.1)
End of period	$ 18.5	$ 17.2	$ 18.5	$ 17.2

XML

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Finance leases:
Property and equipment - gross	$ 22.9	$ 24.3
Accumulated depreciation and amortization	$ (17.2)	$ (17.5)
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet	us-gaap:PropertyPlantAndEquipmentNet
Property and equipment - net	$ 5.7	$ 6.8
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Other accrued liabilities	$ 2.6	$ 2.7
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Other long-term liabilities	$ 5.7	$ 7.4
Total finance lease liabilities	8.3	10.1
Operating leases:
Operating lease right-of-use assets	$ 52.4	$ 51.9
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Other accrued liabilities	$ 19.7	$ 19.3
Operating lease liabilities	34.2	34.0
Total operating lease liabilities	$ 53.9	$ 53.3

XML

Other Income (Expense) - Net - Computation of Other Income (Expense) - Net (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Other Income and Expenses [Abstract]
Interest income	$ 0.4	$ 0.3	$ 0.8	$ 0.7
Net foreign exchange income (loss)	0.2	(0.7)	0.0	(2.6)
Net periodic pension and postretirement benefits – non-service	3.8	2.4	7.6	5.4
Foreign currency translation loss from sale of equity interest	(1.0)	0.0	(1.0)	0.0
Other	0.0	0.0	0.3	0.0
Total other income (expense) – net	$ 3.4	$ 2.0	$ 7.7	$ 3.5

XML

Accumulated Other Comprehensive Income (Loss) - Net Changes in Accumulated OCI by Component, Net of Tax (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 3,897.9	$ 3,353.4	$ 3,846.6	$ 3,430.8
Other comprehensive income (loss) before reclassifications	20.2	89.2	(8.8)	(18.8)
Amounts reclassified from Accumulated OCI	5.4	6.3	11.9	12.3
Net other comprehensive income (loss)	25.6	95.5	3.1	(6.5)
Ending balance	4,025.5	3,508.6	4,025.5	3,508.6
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(103.7)	(295.4)	(74.7)	(187.4)
Other comprehensive income (loss) before reclassifications	20.2	87.8	(8.8)	(20.2)
Amounts reclassified from Accumulated OCI	(1.0)	0.0	(1.0)	0.0
Net other comprehensive income (loss)	19.2	87.8	(9.8)	(20.2)
Ending balance	(84.5)	(207.6)	(84.5)	(207.6)
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	10.1	10.3	10.5	10.7
Other comprehensive income (loss) before reclassifications	0.0	1.4	0.0	1.4
Amounts reclassified from Accumulated OCI	(0.4)	(0.4)	(0.8)	(0.8)
Net other comprehensive income (loss)	(0.4)	1.0	(0.8)	0.6
Ending balance	9.7	11.3	9.7	11.3
Defined Benefit Pension and Postretirement Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(294.7)	(324.8)	(301.6)	(331.2)
Other comprehensive income (loss) before reclassifications	0.0	0.0	0.0	0.0
Amounts reclassified from Accumulated OCI	6.8	6.7	13.7	13.1
Net other comprehensive income (loss)	6.8	6.7	13.7	13.1
Ending balance	(287.9)	(318.1)	(287.9)	(318.1)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(388.3)	(609.9)	(365.8)	(507.9)
Net other comprehensive income (loss)	25.6	95.5	3.1	(6.5)
Ending balance	$ (362.7)	$ (514.4)	$ (362.7)	$ (514.4)

XML

Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated OCI (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Gains on cash flow hedges:
Interest expense	$ (14.3)	$ (13.4)	$ (28.6)	$ (24.8)
Amortization of net unrecognized losses	3.4	2.0	7.7	3.5
Income tax expense	(62.9)	(31.9)	(122.0)	(75.8)
Net earnings	213.2	105.9	410.8	247.9
Reclassification out of AOCI
Gains on cash flow hedges:
Net earnings	(5.4)	(6.3)	(11.9)	(12.3)
Sale Of Equity Interest | Reclassification out of AOCI
Gains on cash flow hedges:
Amortization of net unrecognized losses	1.0	0.0	1.0	0.0
Income tax expense	0.0	0.0	0.0	0.0
Net earnings	1.0	0.0	1.0	0.0
Cash Flow Hedges | Reclassification out of AOCI
Gains on cash flow hedges:
Interest expense	0.4	0.4	0.8	0.8
Income tax expense	0.0	0.0	0.0	0.0
Net earnings	0.4	0.4	0.8	0.8
Defined Benefit Pension and Postretirement Plans | Reclassification out of AOCI
Gains on cash flow hedges:
Amortization of net unrecognized losses	(9.1)	(8.8)	(18.2)	(17.2)
Income tax expense	2.3	2.1	4.5	4.1
Net earnings	$ (6.8)	$ (6.7)	$ (13.7)	$ (13.1)

XML

Segments - Net Sales by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Segment Reporting Information [Line Items]
Total revenues	$ 1,168.3	$ 808.9	$ 2,281.5	$ 1,747.0
Operating earnings	286.0	148.7	552.2	344.5
Interest expense	(14.3)	(13.4)	(28.6)	(24.8)
Other income (expense) – net	3.4	2.0	7.7	3.5
Earnings before income taxes and equity earnings	275.1	137.3	531.3	323.2
Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	350.5	261.9	696.2	561.8
Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	484.1	323.3	962.4	699.2
Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	398.6	245.0	746.2	559.6
Financial Services
Segment Reporting Information [Line Items]
Total revenues	86.9	84.6	175.5	170.5
Operating Segments
Segment Reporting Information [Line Items]
Total revenues	1,233.2	830.2	2,404.8	1,820.6
Operating earnings	314.6	169.5	610.9	383.8
Operating Segments | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	350.5	261.9	696.2	561.8
Operating earnings	55.5	22.9	106.2	54.4
Operating Segments | Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	484.1	323.3	962.4	699.2
Operating earnings	103.5	38.4	202.4	87.0
Operating Segments | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	398.6	245.0	746.2	559.6
Operating earnings	86.7	50.6	168.1	127.9
Operating Segments | Financial Services
Segment Reporting Information [Line Items]
Operating earnings	68.9	57.6	134.2	114.5
Intersegment eliminations
Segment Reporting Information [Line Items]
Total revenues	(151.8)	(105.9)	(298.8)	(244.1)
Corporate
Segment Reporting Information [Line Items]
Operating earnings	(28.6)	(20.8)	(58.7)	(39.3)
Excluding Financial Services
Segment Reporting Information [Line Items]
Total revenues	1,081.4	724.3	2,106.0	1,576.5
Operating earnings	217.1	91.1	418.0	230.0
Excluding Financial Services | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	274.7	204.5	545.8	431.5
Excluding Financial Services | Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	484.1	323.3	962.4	699.2
Excluding Financial Services | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	322.6	196.5	597.8	445.8
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	1,081.4	724.3	2,106.0	1,576.5
Excluding Financial Services | Operating Segments | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	350.5	261.9	696.2	561.8
Excluding Financial Services | Operating Segments | Snap-on Tools Group
Segment Reporting Information [Line Items]
Total revenues	484.1	323.3	962.4	699.2
Excluding Financial Services | Operating Segments | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Total revenues	398.6	245.0	746.2	559.6
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	(151.8)	(105.9)	(298.8)	(244.1)
Excluding Financial Services | Intersegment eliminations | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Total revenues	75.8	57.4	150.4	130.3
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	76.0	48.5	148.4	113.8
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	86.9	84.6	175.5	170.5
Operating earnings	68.9	57.6	134.2	114.5
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	86.9	84.6	175.5	170.5
Financial Service | Intersegment eliminations
Segment Reporting Information [Line Items]
Total revenues	$ 0.0	$ 0.0	$ 0.0	$ 0.0

XML

Segments - Assets by Segment (Detail) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Segment Reporting Information [Line Items]
Assets	$ 6,791.6	$ 6,557.3
Operating Segments
Segment Reporting Information [Line Items]
Assets	5,744.7	5,555.7
Operating Segments | Commercial & Industrial Group
Segment Reporting Information [Line Items]
Assets	1,197.5	1,210.4
Operating Segments | Snap-on Tools Group
Segment Reporting Information [Line Items]
Assets	763.6	775.3
Operating Segments | Repair Systems & Information Group
Segment Reporting Information [Line Items]
Assets	1,618.6	1,399.7
Operating Segments | Financial Services
Segment Reporting Information [Line Items]
Assets	2,165.0	2,170.3
Corporate
Segment Reporting Information [Line Items]
Assets	1,115.3	1,063.2
Elimination of intersegment receivables
Segment Reporting Information [Line Items]
Assets	$ (68.4)	$ (61.6)

XML

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2018-02 [Member]