Exit and Disposal Activities

9 Months Ended

Oct. 01, 2016

Restructuring and Related Activities [Abstract]

Exit and Disposal Activities

Note 6: Exit and Disposal Activities

Snap-on did not record any costs for exit and disposal activities in the three month period ended October 1, 2016; Snap-on recorded $0.9 million of costs for exit and disposal activities in the nine month period ended October 1, 2016, as follows:

	Nine Months Ended
(Amounts in millions)	October 1, 2016
Exit and disposal costs:
Repair Systems & Information Group:
Cost of goods sold	$	0.8
Operating expenses		0.1
Total exit and disposal costs	$	0.9

The $0.9 million of costs incurred during the nine month period ended October 1, 2016, qualified for accrual treatment. Snap-on did not record any costs for exit and disposal activities in the three and nine month periods ended October 3, 2015.

Snap-on’s exit and disposal accrual activity for the first nine months of 2016 is as follows:

	Balance at		First Six Months				Balance at		Third Quarter				Balance at
(Amounts in millions)	January 2, 2016		Provision		Usage		July 2, 2016		Provision		Usage		October 1, 2016
Severance costs:
Commercial & Industrial Group	$	0.3	$	–	$	(0.1)	$	0.2	$	–	$	–	$	0.2
Repair Systems & Information Group		3.8		0.9		(1.2)		3.5		–		(0.6)		2.9
Total	$	4.1	$	0.9	$	(1.3)	$	3.7	$	–	$	(0.6)	$	3.1

The company expects that approximately $1.0 million of the $3.1 million exit and disposal accrual as of October 1, 2016, will be utilized in the balance of 2016; due to the timing of longer-term severance payments, it is anticipated that the remainder of the exit and disposal accrual will be utilized in 2017. Snap-on expects to fund the remaining cash requirements of its exit and disposal activities with available cash on hand, cash flows from operations 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 judgment under prevailing circumstances.