Receivables (Tables)

12 Months Ended

Jan. 01, 2022

Receivables [Abstract]

Schedule of Components of Trade and Other Accounts Receivable

The components of Snap-on’s trade and other accounts receivable as of 2021 and 2020 year end are as follows:

(Amounts in millions)	2021		2020
Trade and other accounts receivable	$	709.6	$	667.0
Allowances for credit losses	(27.3)		(26.3)
Total trade and other accounts receivable – net	$	682.3	$	640.7

Rollforward of Combined Allowances for Doubtful Accounts Related to Trade and Other Accounts Receivable

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for 2021 and 2020:

(Amounts in millions)	2021		2020
Allowances for credit losses:
Beginning of period	$	26.3	$	20.9
Provision for credit losses	15.5		18.9
Charge-offs	(13.6)		(13.6)
Recoveries	—		0.2
Currency translation	(0.9)		(0.1)
End of period	$	27.3	$	26.3

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

The components of Snap-on’s current finance and contract receivables as of 2021 and 2020 year end are as follows:

(Amounts in millions)	2021		2020
Finance installment receivables	$	557.0	$	533.9
Finance lease receivables, net of unearned finance charges of $1.3 million and $4.4 million, respectively	7.1		20.2
Total finance receivables	564.1		554.1
Contract installment receivables	55.2		59.1
Contract lease receivables, net of unearned finance charges of $18.7 million and $18.2 million, respectively	57.3		55.7
Total contract receivables	112.5		114.8
Total	676.6		668.9
Allowances for credit losses:
Finance installment receivables	(21.7)		(23.6)
Finance lease receivables	(0.1)		(0.3)
Total finance allowance for credit losses	(21.8)		(23.9)
Contract installment receivables	(0.9)		(1.4)
Contract lease receivables	(1.2)		(0.9)
Total contract allowance for credit losses	(2.1)		(2.3)
Total allowance for credit losses	(23.9)		(26.2)
Total current finance and contract receivables – net	$	652.7	$	642.7
Finance receivables – net	$	542.3	$	530.2
Contract receivables – net	110.4		112.5
Total current finance and contract receivables – net	$	652.7	$	642.7

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of 2021 and 2020 year end are as follows: 

(Amounts in millions)	2021		2020
Finance installment receivables	$	1,155.3	$	1,173.1
Finance lease receivables, net of unearned finance charges of $0.5 million and $2.5 million, respectively	4.2		15.6
Total finance receivables	1,159.5		1,188.7
Contract installment receivables	197.1		199.7
Contract lease receivables, net of unearned finance charges of $30.3 million and $30.2 million, respectively	187.4		181.7
Total contract receivables	384.5		381.4
Total	1,544.0		1,570.1
Allowances for credit losses:
Finance installment receivables	(45.4)		(52.1)
Finance lease receivables	(0.1)		(0.3)
Total finance allowance for credit losses	(45.5)		(52.4)
Contract installment receivables	(3.2)		(3.1)
Contract lease receivables	(3.1)		(3.6)
Total contract allowance for credit losses	(6.3)		(6.7)
Total allowance for credit losses	(51.8)		(59.1)
Total long-term finance and contract receivables – net	$	1,492.2	$	1,511.0
Finance receivables – net	$	1,114.0	$	1,136.3
Contract receivables – net	378.2		374.7
Total long-term finance and contract receivables – net	$	1,492.2	$	1,511.0

Long-term finance and contract receivables installments, net of unearned finance charges, as of 2021 and 2020 year end are scheduled as follows: 

	2021				2020
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Due in Months:
13 – 24	$	428.1	$	91.7	$	444.6	$	92.0
25 – 36	361.3		81.3		360.3		78.9
37 – 48	246.2		66.6		250.9		67.1
49 – 60	119.8		52.2		132.9		51.3
Thereafter	4.1		92.7		—		92.1
Total	$	1,159.5	$	384.5	$	1,188.7	$	381.4

Financing Receivable Credit Quality Indicators

The amortized cost basis of finance and contract receivables by origination year as of 2021 year end is as follows: 

(Amounts in millions)	2021		2020		2019		2018		2017		Prior		Total
Finance Receivables:
Delinquent	$	12.8	$	16.4	$	8.2	$	4.4	$	2.1	$	0.6	$	44.5
Non-delinquent	1,070.7		392.4		144.1		54.4		14.9		2.6		1,679.1
Total Finance receivables	$	1,083.5	$	408.8	$	152.3	$	58.8	$	17.0	$	3.2	$	1,723.6
Contract receivables:
Delinquent	$	0.7	$	1.3	$	0.6	$	0.7	$	0.1	$	0.1	$	3.5
Non-delinquent	172.0		121.5		87.8		56.9		30.5		24.8		493.5
Total Contract receivables	$	172.7	$	122.8	$	88.4	$	57.6	$	30.6	$	24.9	$	497.0

Allowance for Credit Loss Rollforward

The following is a rollforward of the allowances for credit losses for finance and contract receivables for 2021 and 2020: 

	2021				2020
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for credit losses:
Beginning of year	$	76.3	$	9.0	$	61.9	$	5.6
Impact of adopting ASU No. 2016-13	—		—		5.2		2.9
Provision for credit losses	32.1		0.8		54.6		3.8
Charge-offs	(50.9)		(1.8)		(53.8)		(3.8)
Recoveries	9.8		0.4		8.2		0.4
Currency translation	—		—		0.2		0.1
End of year	$	67.3	$	8.4	$	76.3	$	9.0

Financing Receivable, Past Due

The aging of finance and contract receivables as of 2021 and 2020 year end 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
2021 year end:
Finance receivables	$	16.0	$	10.5	$	18.0	$	44.5	$	1,679.1	$	1,723.6	$	16.0
Contract receivables	1.7		0.9		0.9		3.5		493.5		497.0		0.1
2020 year end:
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

Financing Receivable, Nonaccrual

The amount of finance and contract receivables on nonaccrual status as of 2021 and 2020 year end is as follows: 

(Amounts in millions)	2021		2020
Finance receivables	$	7.7	$	9.6
Contract receivables	2.7		2.4