Note 17: 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 and technical education market segments (collectively, “critical industries”), primarily through direct and distributor channels. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the company’s worldwide mobile tool distribution channel. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealership service and repair shops (“OEM dealerships”), through direct and distributor channels. Financial Services consists of the business operations of Snap-on’s finance subsidiaries.

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

Financial data by segment was as follows:


	Three Months Ended						Nine Months Ended
	October 3,			September 27,			October 3,			September 27,
(Amounts in millions)	2015			2014			2015			2014
Net sales:
Commercial & Industrial Group	$	288.5		$	298.8		$	881.8		$	876.6
Snap-on Tools Group		380.6			355.0			1,157.5			1,067.7
Repair Systems & Information Group		282.9			271.2			832.6			812.4

Segment net sales		952.0			925.0			2,871.9			2,756.7
Intersegment eliminations		(130.5	)		(118.7	)		(370.8	)		(336.4	)

Total net sales	$	821.5		$	806.3		$	2,501.1		$	2,420.3
Financial Services revenue		61.1			53.6			177.2			155.5

Total revenues	$	882.6		$	859.9		$	2,678.3		$	2,575.8


Operating earnings:
Commercial & Industrial Group	$	41.3		$	40.8		$	127.5		$	118.1
Snap-on Tools Group		56.3			49.5			184.1			159.2
Repair Systems & Information Group		69.7			63.3			201.3			186.0
Financial Services		43.5			37.7			125.2			106.9

Segment operating earnings		210.8			191.3			638.1			570.2
Corporate		(23.7	)		(23.0	)		(80.6	)		(72.9	)

Operating earnings	$	187.1		$	168.3		$	557.5		$	497.3
Interest expense		(13.0	)		(12.7	)		(38.9	)		(39.1	)
Other income (expense) – net		(0.5	)		(0.9	)		(1.9	)		(0.7	)

Earnings before income taxes and equity earnings	$	173.6		$	154.7		$	516.7		$	457.5


	October 3,			January 3,
(Amounts in millions)	2015			2015
Assets:
Commercial & Industrial Group	$	936.1		$	939.7
Snap-on Tools Group		656.2			600.1
Repair Systems & Information Group		1,058.0			1,036.8
Financial Services		1,513.3			1,368.3

Total assets from reportable segments	$	4,163.6		$	3,944.9
Corporate		371.6			401.7
Elimination of intersegment receivables		(43.8	)		(36.5	)

Total assets	$	4,491.4		$	4,310.1