Exit and Disposal Activities

12 Months Ended

Jan. 01, 2022

Restructuring and Related Activities [Abstract]

Snap-on did not record any costs for exit and disposal activities during fiscal 2021. Snap-on recorded $12.5 million of costs associated with exit and disposal activities during fiscal 2020. The costs associated with disposal activities by operating segment are as follows:


(Amounts in millions)	2021		2020
Exit and disposal costs
Cost of goods sold:
Commercial & Industrial Group	$	—	$	6.4
Repair System & Information Group	—		0.7
Total cost of goods sold	$	—	$	7.1

Operating Expenses:
Snap-on Tools Group	$	—	$	0.6
Repair System & Information Group	—		4.8
Total operating expenses	$	—	$	5.4

Total exit and disposal costs:
Commercial & Industrial Group	$	—	$	6.4
Snap-on Tools Group	—		0.6
Repair System & Information Group	—		5.5
Total exit and disposal costs	$	—	$	12.5

Of the $12.5 million of costs incurred in 2020, $12.2 million qualified for accrual treatment. Costs associated with exit and disposal activities in 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 2021 and 2020 are as follows:


	Balance at						Balance at						Balance at
(Amounts in millions)	2019 Year End		Provision in 2020		Usage in 2020		2020 Year End		Provision in 2021		Usage in 2021		2021 Year End
Severance costs:
Commercial & Industrial Group	$	—	$	6.4	$	(0.6)	$	5.8	$	—	$	(1.5)	$	4.3
Snap-on Tools Group	—		0.6		(0.2)		0.4		—		(0.1)		0.3
Repair System & Information Group	—		5.2		(1.4)		3.8		—		(1.4)		2.4
Total	$	—	$	12.2	$	(2.2)	$	10.0	$	—	$	(3.0)	$	7.0

As of January 1, 2022, the company expects that approximately $5.2 million of the $7.0 million exit and disposal accrual will be utilized in 2022, 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.