Cover
Cover - shares | 6 Months Ended | |
Jun. 29, 2024 | Jul. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2024 | |
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, $1.00 par value | |
Trading Symbol | SNA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 52,682,657 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000091440 | |
Current Fiscal Year End Date | --12-28 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Net sales | $ 1,279.9 | $ 1,284.7 | $ 2,561.8 | $ 2,560.3 |
Operating earnings | 350.5 | 343.9 | 689.7 | 670 |
Interest expense | (12.3) | (12.6) | (24.8) | (25) |
Other income (expense) – net | 18.7 | 16.8 | 36.8 | 32 |
Earnings before income taxes | 356.9 | 348.1 | 701.7 | 677 |
Income tax expense | (79.3) | (78.2) | (154.5) | (152.8) |
Net earnings | 277.6 | 269.9 | 547.2 | 524.2 |
Net earnings attributable to noncontrolling interests | (6.4) | (5.9) | (12.5) | (11.5) |
Net earnings attributable to Snap-on Incorporated | $ 271.2 | $ 264 | $ 534.7 | $ 512.7 |
Net earnings per share attributable to Snap-on Incorporated: | ||||
Basic (in dollars per share) | $ 5.15 | $ 4.98 | $ 10.15 | $ 9.67 |
Diluted (in dollars per share) | $ 5.07 | $ 4.89 | $ 9.98 | $ 9.49 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 52,661,542 | 52,956,701 | 52,701,553 | 52,987,935 |
Effect of dilutive securities (in shares) | 834,342 | 1,049,178 | 881,904 | 1,046,880 |
Diluted (in shares) | 53,495,884 | 54,005,879 | 53,583,457 | 54,034,815 |
Dividends declared per common share (in dollars per share) | $ 1.86 | $ 1.62 | $ 3.72 | $ 3.24 |
Total net sales | ||||
Net sales | $ 1,179.4 | $ 1,191.3 | $ 2,361.7 | $ 2,374.3 |
Cost of goods sold | (582.1) | (587.6) | (1,167.7) | (1,181) |
Gross profit | 597.3 | 603.7 | 1,194 | 1,193.3 |
Operating expenses | (317) | (326.7) | (642.8) | (656.5) |
Operating earnings | 280.3 | 277 | 551.2 | 536.8 |
Financial services revenue | ||||
Net sales | 100.5 | 93.4 | 200.1 | 186 |
Cost of goods sold | (30.3) | (26.5) | (61.6) | (52.8) |
Operating earnings | $ 70.2 | $ 66.9 | $ 138.5 | $ 133.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Comprehensive income (loss): | ||||
Net earnings | $ 277.6 | $ 269.9 | $ 547.2 | $ 524.2 |
Other comprehensive income (loss): | ||||
Foreign currency translation | (12.8) | 0.2 | (57.6) | 18.3 |
Reclassification of cash flow hedges to net earnings, net of tax | (0.4) | (0.4) | (0.8) | (0.8) |
Defined benefit pension and postretirement plans: | ||||
Amortization of net unrecognized losses | 2.2 | 0.1 | 4 | 0.1 |
Income tax benefit | (0.5) | 0 | (0.9) | 0 |
Net of tax | 1.7 | 0.1 | 3.1 | 0.1 |
Total comprehensive income | 266.1 | 269.8 | 491.9 | 541.8 |
Comprehensive income attributable to noncontrolling interests | (6.4) | (5.9) | (12.5) | (11.5) |
Comprehensive income attributable to Snap-on Incorporated | $ 259.7 | $ 263.9 | $ 479.4 | $ 530.3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,232.7 | $ 1,001.5 |
Trade and other accounts receivable – net | 783.5 | 791.3 |
Finance receivables and contract receivables - net | 729.9 | 714.9 |
Inventories – net | 965 | 1,005.9 |
Prepaid expenses and other current assets | 147 | 138.4 |
Total current assets | 3,858.1 | 3,652 |
Property and equipment: | ||
Property and equipment – gross | 1,584 | 1,570.4 |
Accumulated depreciation | (1,045.3) | (1,031.1) |
Property and equipment – net | 538.7 | 539.3 |
Operating lease right-of-use assets | 74.9 | 74.7 |
Deferred income tax assets | 78.9 | 76 |
Long-term finance receivables and contract receivables - net | 1,718.8 | 1,692.1 |
Goodwill | 1,067.9 | 1,097.4 |
Other intangible assets – net | 274.8 | 268.9 |
Pension assets | 130.9 | 130.5 |
Other long-term assets | 16.9 | 14 |
Total assets | 7,759.9 | 7,544.9 |
Current liabilities: | ||
Notes payable | 15.7 | 15.6 |
Accounts payable | 271.1 | 238 |
Accrued benefits | 54.4 | 64.4 |
Accrued compensation | 74.2 | 102.9 |
Franchisee deposits | 76.8 | 73.3 |
Other accrued liabilities | 457.9 | 447.4 |
Total current liabilities | 950.1 | 941.6 |
Long-term debt | 1,185.1 | 1,184.6 |
Deferred income tax liabilities | 84.2 | 79.2 |
Retiree health care benefits | 20.7 | 21.8 |
Pension liabilities | 69.3 | 82.3 |
Operating lease liabilities | 54.8 | 54.6 |
Other long-term liabilities | 86.8 | 87.4 |
Total liabilities | 2,451 | 2,451.5 |
Commitments and contingencies (Note 14) | ||
Shareholders’ equity attributable to Snap-on Incorporated: | ||
Preferred stock (authorized 15,000,000 shares of $1 par value; none outstanding) | 0 | 0 |
Common stock (authorized 250,000,000 shares of $1 par value; issued 67,456,553 and 67,450,999 shares, respectively) | 67.5 | 67.5 |
Additional paid-in capital | 542.8 | 545.5 |
Retained earnings | 7,286 | 6,948.5 |
Accumulated other comprehensive loss | (504.8) | (449.5) |
Treasury stock at cost (14,800,401 and 14,756,982 shares, respectively) | (2,105.2) | (2,040.7) |
Total shareholders’ equity attributable to Snap-on Incorporated | 5,286.3 | 5,071.3 |
Noncontrolling interests | 22.6 | 22.1 |
Total equity | 5,308.9 | 5,093.4 |
Total liabilities and equity | 7,759.9 | 7,544.9 |
Land | ||
Property and equipment: | ||
Property and equipment – gross | 34 | 34.5 |
Buildings and improvements | ||
Property and equipment: | ||
Property and equipment – gross | 444.8 | 452.8 |
Machinery, equipment and computer software | ||
Property and equipment: | ||
Property and equipment – gross | 1,105.2 | 1,083.1 |
Finance Receivables | ||
Current assets: | ||
Finance receivables and contract receivables - net | 617.9 | 594.1 |
Property and equipment: | ||
Long-term finance receivables and contract receivables - net | 1,301.4 | 1,284.2 |
Contract Receivables | ||
Current assets: | ||
Finance receivables and contract receivables - net | 112 | 120.8 |
Property and equipment: | ||
Long-term finance receivables and contract receivables - net | $ 417.4 | $ 407.9 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 2024 | Dec. 30, 2023 |
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) | 67,456,553 | 67,450,999 |
Treasury stock at cost (in shares) | 14,800,401 | 14,756,982 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests |
Beginning balance at Dec. 31, 2022 | $ 4,503.5 | $ 67.4 | $ 499.9 | $ 6,296.2 | $ (528.3) | $ (1,853.9) | $ 22.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 524.2 | 512.7 | 11.5 | ||||
Other comprehensive (loss) income | 17.6 | 17.6 | |||||
Cash dividends | (172) | (172) | |||||
Stock compensation plans | 100.7 | 21.2 | 79.5 | ||||
Share repurchases | (182) | (182) | |||||
Other | (12.7) | 0.1 | (1.3) | (11.5) | |||
Ending balance at Jul. 01, 2023 | 4,779.3 | 67.5 | 521.1 | 6,635.6 | (510.7) | (1,956.4) | 22.2 |
Beginning balance at Apr. 01, 2023 | 4,632.4 | 67.5 | 500.2 | 6,458.1 | (510.6) | (1,905) | 22.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 269.9 | 264 | 5.9 | ||||
Other comprehensive (loss) income | (0.1) | (0.1) | |||||
Cash dividends | (85.9) | (85.9) | |||||
Stock compensation plans | 64.3 | 20.9 | 43.4 | ||||
Share repurchases | (94.8) | (94.8) | |||||
Other | (6.5) | (0.6) | (5.9) | ||||
Ending balance at Jul. 01, 2023 | 4,779.3 | 67.5 | 521.1 | 6,635.6 | (510.7) | (1,956.4) | 22.2 |
Beginning balance at Dec. 30, 2023 | 5,093.4 | 67.5 | 545.5 | 6,948.5 | (449.5) | (2,040.7) | 22.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 547.2 | 534.7 | 12.5 | ||||
Other comprehensive (loss) income | (55.3) | (55.3) | |||||
Cash dividends | (196.2) | (196.2) | |||||
Stock compensation plans | 50.4 | (2.7) | 53.1 | ||||
Share repurchases | (117.6) | (117.6) | |||||
Other | (13) | (1) | (12) | ||||
Ending balance at Jun. 29, 2024 | 5,308.9 | 67.5 | 542.8 | 7,286 | (504.8) | (2,105.2) | 22.6 |
Beginning balance at Mar. 30, 2024 | 5,163.3 | 67.5 | 527.4 | 7,113.1 | (493.3) | (2,073.7) | 22.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 277.6 | 271.2 | 6.4 | ||||
Other comprehensive (loss) income | (11.5) | (11.5) | |||||
Cash dividends | (98) | (98) | |||||
Stock compensation plans | 31.3 | 15.4 | 15.9 | ||||
Share repurchases | (47.4) | (47.4) | |||||
Other | (6.4) | 0 | (0.3) | (6.1) | |||
Ending balance at Jun. 29, 2024 | $ 5,308.9 | $ 67.5 | $ 542.8 | $ 7,286 | $ (504.8) | $ (2,105.2) | $ 22.6 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 1.86 | $ 1.62 | $ 3.72 | $ 3.24 |
Share repurchases (in shares) | 174,000 | 359,000 | 422,000 | 715,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Operating activities: | ||
Net earnings | $ 547.2 | $ 524.2 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||
Depreciation | 36.4 | 35.8 |
Amortization of other intangible assets | 12.7 | 13.9 |
Provision for losses on finance receivables | 35.4 | 27.9 |
Provision for losses on non-finance receivables | 11.8 | 8.8 |
Stock-based compensation expense | 15.8 | 20.4 |
Deferred income tax benefit | (4.4) | (9.2) |
Gain on sales of assets | (0.3) | (0.3) |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Trade and other accounts receivable | (20.8) | (30.7) |
Contract receivables | (3.7) | (2.9) |
Inventories | 21.9 | (13.4) |
Prepaid expenses and other current assets | (11.9) | 14.2 |
Accounts payable | 38.1 | (8.3) |
Accrued and other liabilities | (28.4) | (8.5) |
Net cash provided by operating activities | 649.8 | 571.9 |
Investing activities: | ||
Additions to finance receivables | (504.2) | (536.3) |
Collections of finance receivables | 422.8 | 418.1 |
Capital expenditures | (45) | (48.8) |
Disposals of property and equipment | 1.6 | 1 |
Other | 1.4 | (1.5) |
Net cash used by investing activities | (123.4) | (167.5) |
Financing activities: | ||
Net increase in other short-term borrowings | 0.4 | 0.3 |
Cash dividends paid | (196.2) | (172) |
Purchases of treasury stock | (117.6) | (182) |
Proceeds from stock purchase plans and stock option exercises | 51.7 | 84.6 |
Other | (30.4) | (19.5) |
Net cash used by financing activities | (292.1) | (288.6) |
Effect of exchange rate changes on cash and cash equivalents | (3.1) | (1.7) |
Increase in cash and cash equivalents | 231.2 | 114.1 |
Cash and cash equivalents at beginning of year | 1,001.5 | 757.2 |
Cash and cash equivalents at end of period | 1,232.7 | 871.3 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | (22) | (22.3) |
Net cash paid for income taxes | $ (153.7) | $ (147.7) |
Summary of Accounting Policies
Summary of Accounting Policies | 6 Months Ended |
Jun. 29, 2024 | |
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 2023 Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (“2023 year end”). The company’s 2024 fiscal second quarter ended on June 29, 2024, and its 2023 fiscal second quarter ended on July 1, 2023. The company’s 2024 and 2023 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 June 29, 2024, and July 1, 2023, 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 9 for additional information on financial instruments. New Accounting Standards In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024. The guidance is to be applied on a prospective basis with the option to apply the standard retrospectively; this ASU allows for early adoption. The adoption of this ASU is not expected to have a material impact on Snap-on’s Condensed Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires the disclosure of additional segment information. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024; this ASU allows for early adoption. The adoption of this ASU is not expected to have a material impact on Snap-on’s Condensed Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Snap-on recognizes revenue from the sale of tools, diagnostics, equipment, 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) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Revenue from contracts with customers $ 1,172.0 $ 1,184.6 $ 2,347.2 $ 2,361.1 Other revenues 7.4 6.7 14.5 13.2 Total net sales 1,179.4 1,191.3 2,361.7 2,374.3 Financial services revenue 100.5 93.4 200.1 186.0 Total revenues $ 1,279.9 $ 1,284.7 $ 2,561.8 $ 2,560.3 Snap-on evaluates the performance of its operating segments based on segment revenues and segment operating earnings. The Snap-on Tools Group segment revenues include external net sales, while the Commercial & Industrial Group and the Repair Systems & Information Group segment revenues include both external and intersegment net sales. Snap-on accounts for intersegment net 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 June 29, 2024 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 163.5 $ 413.4 $ 298.2 $ — $ — $ 875.1 Europe 76.8 41.4 67.2 — — 185.4 All other 64.7 27.2 27.0 — — 118.9 External net sales 305.0 482.0 392.4 — — 1,179.4 Intersegment net sales 67.0 — 62.4 — (129.4) — Total net sales 372.0 482.0 454.8 — (129.4) 1,179.4 Financial services revenue — — — 100.5 — 100.5 Total revenue $ 372.0 $ 482.0 $ 454.8 $ 100.5 $ (129.4) $ 1,279.9 For the Six Months Ended June 29, 2024 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 312.1 $ 846.7 $ 600.3 $ — $ — $ 1,759.1 Europe 157.8 81.0 129.3 — — 368.1 All other 126.1 54.4 54.0 — — 234.5 External net sales 596.0 982.1 783.6 — — 2,361.7 Intersegment net sales 135.9 — 135.0 — (270.9) — Total net sales 731.9 982.1 918.6 — (270.9) 2,361.7 Financial services revenue — — — 200.1 — 200.1 Total revenue $ 731.9 $ 982.1 $ 918.6 $ 200.1 $ (270.9) $ 2,561.8 * North America is comprised of the United States, Canada and Mexico. For the Three Months Ended July 1, 2023 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 144.3 $ 459.3 $ 285.9 $ — $ — $ 889.5 Europe 75.5 39.0 63.6 — — 178.1 All other 70.0 24.8 28.9 — — 123.7 External net sales 289.8 523.1 378.4 — — 1,191.3 Intersegment net sales 74.4 — 73.6 — (148.0) — Total net sales 364.2 523.1 452.0 — (148.0) 1,191.3 Financial services revenue — — — 93.4 — 93.4 Total revenue $ 364.2 $ 523.1 $ 452.0 $ 93.4 $ (148.0) $ 1,284.7 For the Six Months Ended July 1, 2023 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 281.9 $ 933.2 $ 567.7 $ — $ — $ 1,782.8 Europe 150.5 74.7 126.8 — — 352.0 All other 136.0 52.2 51.3 — — 239.5 External net sales 568.4 1,060.1 745.8 — — 2,374.3 Intersegment net sales 159.6 — 152.8 — (312.4) — Total net sales 728.0 1,060.1 898.6 — (312.4) 2,374.3 Financial services revenue — — — 186.0 — 186.0 Total revenue $ 728.0 $ 1,060.1 $ 898.6 $ 186.0 $ (312.4) $ 2,560.3 * 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 June 29, 2024 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 $ 21.0 $ 482.0 $ 392.4 $ — $ — $ 895.4 All other professionals 284.0 — — — — 284.0 External net sales 305.0 482.0 392.4 — — 1,179.4 Intersegment net sales 67.0 — 62.4 — (129.4) — Total net sales 372.0 482.0 454.8 — (129.4) 1,179.4 Financial services revenue — — — 100.5 — 100.5 Total revenue $ 372.0 $ 482.0 $ 454.8 $ 100.5 $ (129.4) $ 1,279.9 For the Six Months Ended June 29, 2024 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 $ 41.3 $ 982.1 $ 783.6 $ — $ — $ 1,807.0 All other professionals 554.7 — — — — 554.7 External net sales 596.0 982.1 783.6 — — 2,361.7 Intersegment net sales 135.9 — 135.0 — (270.9) — Total net sales 731.9 982.1 918.6 — (270.9) 2,361.7 Financial services revenue — — — 200.1 — 200.1 Total revenue $ 731.9 $ 982.1 $ 918.6 $ 200.1 $ (270.9) $ 2,561.8 For the Three Months Ended July 1, 2023 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 $ 21.7 $ 523.1 $ 378.4 $ — $ — $ 923.2 All other professionals 268.1 — — — — 268.1 External net sales 289.8 523.1 378.4 — — 1,191.3 Intersegment net sales 74.4 — 73.6 — (148.0) — Total net sales 364.2 523.1 452.0 — (148.0) 1,191.3 Financial services revenue — — — 93.4 — 93.4 Total revenue $ 364.2 $ 523.1 $ 452.0 $ 93.4 $ (148.0) $ 1,284.7 For the Six Months Ended July 1, 2023 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 $ 42.8 $ 1,060.1 $ 745.8 $ — $ — $ 1,848.7 All other professionals 525.6 — — — — 525.6 External net sales 568.4 1,060.1 745.8 — — 2,374.3 Intersegment net sales 159.6 — 152.8 — (312.4) — Total net sales 728.0 1,060.1 898.6 — (312.4) 2,374.3 Financial services revenue — — — 186.0 — 186.0 Total revenue $ 728.0 $ 1,060.1 $ 898.6 $ 186.0 $ (312.4) $ 2,560.3 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 computer-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 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 include repair services. The remaining sales revenue is earned over time primarily for software subscriptions, other subscription service agreements and extended warranty programs. Snap-on enters into contracts related to the selling of tools, diagnostics, repair information, equipment 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 $184.0 million of long-term contracts that have fixed consideration that extends beyond one year as of June 29, 2024. Snap-on expects to recognize approximately 65% of these contracts as revenue by the end of fiscal 2025, an additional 30% by the end of fiscal 2027, and the balance thereafter. Contract liabilities: 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 $63.3 million at June 29, 2024, and December 30, 2023, 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 June 29, 2024, Snap-on recognized $13.4 million and $48.8 million of revenue that was included in the $63.3 million contract liability balance at December 30, 2023, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 29, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Acquisitions On November 20, 2023, Snap-on acquired certain assets of SAVTEQ, Inc. (“SAVTEQ”) for a cash purchase price of $3.0 million. SAVTEQ, based in Lexington, Kentucky, provides precise non-contact measuring capabilities. In fiscal 2023, the company completed the purchase accounting valuations for the acquired net assets of SAVTEQ. The $1.7 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 November 1, 2023, Snap-on acquired Mountz, Inc. (“Mountz”) for a cash purchase price of $39.6 million. Mountz, based in San Jose, California, is a leading developer, manufacturer and marketer of high-precision torque tools, including measurement, calibration and documentation products. The company completed the purchase accounting valuations for the acquired net assets of Mountz in the first quarter of 2024. The $19.8 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 SAVTEQ have been included in the Repair Systems & Information Group and the results of operations and assets of Mountz have been included in the Commercial & Industrial Group since the respective acquisition dates. Pro forma financial information has not been presented for these acquisitions as the net effects, individually and collectively, were neither significant nor material to Snap-on’s results of operations or financial position. See Note 6 for additional information on goodwill and other intangible assets. |
Receivables
Receivables | 6 Months Ended |
Jun. 29, 2024 | |
Receivables [Abstract] | |
Receivables | Receivables Trade and other accounts receivable: Snap-on’s trade and other accounts receivable primarily arise from the sale of tools, diagnostics, and equipment products to a broad range of industrial and commercial customers and to Snap-on’s independent franchise van channel with payment terms generally ranging from 30 to 120 days. The components of Snap-on’s trade and other accounts receivable as of June 29, 2024, and December 30, 2023, are as follows: (Amounts in millions) June 29, December 30, 2023 Trade and other accounts receivable $ 820.0 $ 826.2 Allowances for credit losses (36.5) (34.9) Total trade and other accounts receivable – net $ 783.5 $ 791.3 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 June 29, 2024, and July 1, 2023: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Allowances for credit losses: Beginning of period $ 35.9 $ 31.2 $ 34.9 $ 31.1 Provision for credit losses 6.6 3.5 10.9 8.2 Charge-offs (5.6) (2.5) (8.6) (7.3) Recoveries — — 0.1 — Currency translation (0.4) 0.1 (0.8) 0.3 End of period $ 36.5 $ 32.3 $ 36.5 $ 32.3 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. 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, diagnostics, and equipment products on an extended-term payment plan, with average 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, diagnostics, 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, diagnostics and/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 June 29, 2024, and December 30, 2023, are as follows: (Amounts in millions) June 29, December 30, 2023 Finance installment receivables $ 626.0 $ 605.2 Finance lease receivables, net of unearned finance charges of $5.3 million and $3.4 million, respectively 14.6 10.1 Total finance receivables 640.6 615.3 Contract installment receivables 50.6 59.9 Contract lease receivables, net of unearned finance charges of $21.7 million and $21.1 million, respectively 63.1 62.7 Total contract receivables 113.7 122.6 Total 754.3 737.9 Allowances for credit losses: Finance installment receivables (22.4) (21.1) Finance lease receivables (0.3) (0.1) Total finance allowances for credit losses (22.7) (21.2) Contract installment receivables (0.8) (0.9) Contract lease receivables (0.9) (0.9) Total contract allowances for credit losses (1.7) (1.8) Total allowances for credit losses (24.4) (23.0) Total current finance and contract receivables – net $ 729.9 $ 714.9 Finance receivables – net $ 617.9 $ 594.1 Contract receivables – net 112.0 120.8 Total current finance and contract receivables – net $ 729.9 $ 714.9 The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of June 29, 2024, and December 30, 2023, are as follows: (Amounts in millions) June 29, December 30, 2023 Finance installment receivables $ 1,330.8 $ 1,318.5 Finance lease receivables, net of unearned finance charges of $4.4 million and $2.8 million, respectively 19.0 12.3 Total finance receivables 1,349.8 1,330.8 Contract installment receivables 221.3 216.0 Contract lease receivables, net of unearned finance charges of $36.7 million and $35.1 million, respectively 201.2 196.8 Total contract receivables 422.5 412.8 Total 1,772.3 1,743.6 Allowances for credit losses: Finance installment receivables (48.0) (46.4) Finance lease receivables (0.4) (0.2) Total finance allowances for credit losses (48.4) (46.6) Contract installment receivables (3.3) (3.1) Contract lease receivables (1.8) (1.8) Total contract allowances for credit losses (5.1) (4.9) Total allowances for credit losses (53.5) (51.5) Total long-term finance and contract receivables – net $ 1,718.8 $ 1,692.1 Finance receivables – net $ 1,301.4 $ 1,284.2 Contract receivables – net 417.4 407.9 Total long-term finance and contract receivables – net $ 1,718.8 $ 1,692.1 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 allowances 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, collections, 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 delinquency classification, collection experience and credit exposure by customer. 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 company also 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, customer receivables are monitored prior to becoming 30 days past due. The amortized cost basis of finance and contract receivables by origination year as of June 29, 2024, and charge-offs recorded in the six months ended June 29, 2024, by origination year, are as follows: (Amounts in millions) 2024 2023 2022 2021 2020 Prior Total Finance receivables: Delinquent $ 5.0 $ 25.6 $ 12.9 $ 5.9 $ 3.2 $ 1.7 $ 54.3 Non-delinquent 865.6 708.3 237.8 84.1 33.0 7.3 1,936.1 Total Finance receivables $ 870.6 $ 733.9 $ 250.7 $ 90.0 $ 36.2 $ 9.0 $ 1,990.4 Finance receivables charge-offs $ 0.2 $ 16.7 $ 11.3 $ 4.9 $ 2.7 $ 1.2 $ 37.0 Contract receivables: Delinquent $ — $ 0.4 $ 0.8 $ 0.7 $ 0.5 $ 0.5 $ 2.9 Non-delinquent 104.0 161.9 105.9 69.8 46.3 45.4 533.3 Total Contract receivables $ 104.0 $ 162.3 $ 106.7 $ 70.5 $ 46.8 $ 45.9 $ 536.2 Contract receivables charge-offs $ — $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 1.0 Allowances for credit losses: The allowances for credit losses are maintained at levels that are considered adequate to cover expected credit losses over the remaining contractual life of the receivables using historical loss experience, asset specific risk characteristics, current conditions, reasonable and supportable forecasts, and an appropriate reversion period, when applicable. Management performs detailed reviews of its receivables on a monthly and/or quarterly basis to assess the adequacy of the allowances and to 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 allowances, while amounts recovered on previously written off accounts increase the allowances. For both finance and contract receivables, write-offs include the uncollectable principal amount of the receivable as well as the uncollectable accrued interest and fees, net of repossessions. For finance receivables only, write-offs are partially offset by recourse from franchisees. Recovered interest and fees previously written off are recorded through the allowances for credit losses and increase the allowances. Absent a repossession, finance receivables are typically written off when an account reaches 120 days past due. Repossessed accounts are typically written off 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 no later than when the receivable becomes 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 when the receivable becomes 180 days past due. Changes to the allowances for credit losses are maintained through adjustments to the provisions 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 (“WARM”) methodology. The WARM methodology calculates the average annual write-off rate and applies it to the remaining term of the receivables. The WARM methodology is used since 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 many 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. The allowances for credit losses are 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 June 29, 2024, and July 1, 2023: Three Months Ended Six Months Ended (Amounts in millions) Finance Contract Finance Contract Allowances for credit losses: Beginning of period $ 69.8 $ 6.8 $ 67.8 $ 6.7 Provision for credit losses 17.2 0.3 35.4 0.9 Charge-offs (18.7) (0.4) (37.0) (1.0) Recoveries 2.8 0.1 5.0 0.2 Currency translation — — (0.1) — End of period $ 71.1 $ 6.8 $ 71.1 $ 6.8 Three Months Ended Six Months Ended (Amounts in millions) Finance Receivables Contract Receivables Finance Receivables Contract Receivables Allowances for credit losses: Beginning of period $ 62.7 $ 6.5 $ 60.9 $ 6.6 Provision for credit losses 13.7 0.3 27.9 0.6 Charge-offs (13.9) (0.4) (28.4) (0.9) Recoveries 2.5 0.1 4.6 0.2 Currency translation 0.1 — 0.1 — End of period $ 65.1 $ 6.5 $ 65.1 $ 6.5 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. The amount and number of finance and contract receivable modifications as of June 29, 2024, and December 30, 2023, 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 June 29, 2024, and December 30, 2023, is as follows: (Amounts in millions) 30-59 60-90 Greater Total Past Total Not Total Greater June 29, 2024: Finance receivables $ 20.5 $ 12.2 $ 21.6 $ 54.3 $ 1,936.1 $ 1,990.4 $ 18.3 Contract receivables 1.3 0.6 1.0 2.9 533.3 536.2 0.2 December 30, 2023: Finance receivables $ 21.5 $ 13.6 $ 23.2 $ 58.3 $ 1,887.8 $ 1,946.1 $ 19.9 Contract receivables 1.5 0.6 1.2 3.3 532.1 535.4 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 may have 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 June 29, 2024, and December 30, 2023, is as follows: (Amounts in millions) June 29, December 30, 2023 Finance receivables $ 11.7 $ 10.6 Contract receivables 2.8 3.3 |
Inventories
Inventories | 6 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories by major classification are as follows: (Amounts in millions) June 29, December 30, 2023 Finished goods $ 840.8 $ 874.6 Work in progress 79.5 76.1 Raw materials 166.9 171.1 Total FIFO value 1,087.2 1,121.8 Excess of current cost over LIFO cost (122.2) (115.9) Total inventories – net $ 965.0 $ 1,005.9 Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 59% of total inventories as of both June 29, 2024, and December 30, 2023. The company accounts for its non-U.S. inventory on the FIFO method. As of June 29, 2024, approximately 37% of the company’s U.S. inventory was accounted for using the FIFO method and 63% was accounted for using the last-in, first-out (“LIFO”) method. There were no LIFO inventory liquidations in the three and six months ended June 29, 2024, or July 1, 2023. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024, are as follows: (Amounts in millions) Commercial Snap-on Repair Systems Total Balance as of December 30, 2023 $ 346.6 $ 12.4 $ 738.4 $ 1,097.4 Currency translation (10.7) — (5.6) (16.3) Acquisition adjustments (13.2) — — (13.2) Balance as of June 29, 2024 $ 322.7 $ 12.4 $ 732.8 $ 1,067.9 Goodwill of $1,067.9 million as of June 29, 2024, includes $19.8 million from the acquisition of Mountz. In the first quarter of 2024, the purchase accounting valuations for the acquired net assets of Mountz were completed, resulting in a reduction of goodwill of $13.2 million from year end 2023. See Note 3 for additional information on acquisitions. Additional disclosures related to other intangible assets are as follows: June 29, 2024 December 30, 2023 (Amounts in millions) Gross Carrying Value Accumulated Net Carrying Value Gross Carrying Value Accumulated Net Carrying Value Amortized other intangible assets: Customer relationships $ 220.7 $ (166.8) $ 53.9 $ 214.5 $ (163.6) $ 50.9 Developed technology 36.1 (31.2) 4.9 36.2 (29.8) 6.4 Internally developed software 196.8 (153.0) 43.8 191.3 (148.2) 43.1 Patents 48.1 (20.7) 27.4 53.0 (26.8) 26.2 Trademarks 3.9 (2.5) 1.4 4.0 (2.5) 1.5 Other 6.1 (2.8) 3.3 6.2 (2.8) 3.4 Total 511.7 (377.0) 134.7 505.2 (373.7) 131.5 Non-amortized trademarks 140.1 — 140.1 137.4 — 137.4 Total other intangible assets $ 651.8 $ (377.0) $ 274.8 $ 642.6 $ (373.7) $ 268.9 The gross carrying value of customer relationships and non-amortized trademarks includes $8.7 million and $5.4 million, respectively, related to the Mountz acquisition. Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2024, the results of which did not result in any impairment. Provisions for the impairment of goodwill and/or other intangible assets could arise in a future period due to significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, changes in key personnel or litigation, a sustained decrease in share price and/or other events. As of June 29, 2024, the company had no accumulated impairment losses. The weighted-average amortization periods related to other intangible assets are as follows: In Years Customer relationships 14 Developed technology 5 Internally developed software 6 Patents 15 Trademarks 9 Other 39 The weighted-average amortization period for all amortizable intangible assets on a combined basis is 12 years. Intangible asset renewal costs are expensed as incurred. The aggregate amortization expense was $6.4 million and $12.7 million for the respective three and six month periods ended June 29, 2024, and $7.0 million and $13.9 million for the respective three and six month periods ended July 1, 2023. Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $25.1 million in 2024, $19.6 million in 2025, $14.5 million in 2026, $12.2 million in 2027, $10.6 million in 2028, and $8.0 million in 2029. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Snap-on’s effective income tax rate on earnings attributable to Snap-on was 22.4% and 23.0% in the first six months of fiscal 2024 and 2023, respectively. 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 $0.9 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 $0.9 million over the next 12 months for uncertain tax positions expected to be taken in future tax filings. |
Short-term and Long-term Debt
Short-term and Long-term Debt | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Debt | Short-term and Long-term Debt Short-term and long-term debt as of June 29, 2024, and December 30, 2023, consisted of the following: (Amounts in millions) June 29, December 30, 2023 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 debt* 0.8 0.2 1,200.8 1,200.2 Less: notes payable (15.7) (15.6) Total long-term debt $ 1,185.1 $ 1,184.6 * Includes unamortized debt issuance costs and issuance discounts. S nap-on has a $900 million multicurrency revolving credit facility that terminates on September 12, 2028 (the “Credit Facility”). The Credit Facility contains an accordion feature that, subject to certain customary conditions, may allow the maximum commitment to be increased by up to $450 million with the approval of the lenders providing additional commitments. No amounts were borrowed or outstanding under the Credit Facility during the six months ended and as of June 29, 2024. 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 June 29, 2024, the company’s actual ratios of 0.01 and 0.03, 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. As of June 29, 2024, there were no commercial paper issuances outstanding. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [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. Snap-on is exposed to global market risks, including the effects of changes in foreign currency exchange rates, interest rates, and the company’s stock price. The company 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 16 for additional information on Other income (expense) – net. Interest rate risk management: Snap-on may manage 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 may enter 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 “Long-term debt” on the accompanying Condensed Consolidate d Balance Sheets. T here were no outstanding interest rate swaps as of both June 29, 2024, and December 30, 2023 . Treasury locks: Snap-on may use 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 June 29, 2024, and December 30, 2023. See Note 16 for additional information on Other income (expense) – net. Stock-based deferred compensation risk management: Snap-on manages 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 June 29, 2024, Snap-on had equity forwards in place intended to manage market risk with respect to 77,600 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: June 29, 2024 December 30, 2023 (Amounts in millions) Carrying Fair Carrying Fair Finance receivables – net $ 1,919.3 $ 2,165.1 $ 1,878.3 $ 2,138.7 Contract receivables – net 529.4 561.6 528.7 561.6 Long-term debt and notes payable 1,200.8 959.1 1,200.2 1,031.5 The following methods and assumptions are 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 is 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 includes unamortized debt issuance costs and issuance discounts. 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. |
Pension Plans
Pension Plans | 6 Months Ended |
Jun. 29, 2024 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans Snap-on’s net periodic pension benefit included the following components: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Service cost $ 5.0 $ 4.5 $ 10.0 $ 9.4 Interest cost 16.4 16.4 32.8 32.7 Expected return on plan assets (25.3) (26.1) (50.8) (52.3) Amortization of unrecognized loss 2.5 0.4 4.6 0.7 Net periodic pension benefit $ (1.4) $ (4.8) $ (3.4) $ (9.5) The components of net periodic pension benefit, other than the service cost component, are included in “Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 16 for additional information on other income (expense) – net. Snap-on intends to make contributions of $6.0 million to its foreign pension plans and $3.7 million to its domestic pension plans in 2024, as required by law. Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2024. |
Postretirement Health Care Plan
Postretirement Health Care Plans | 6 Months Ended |
Jun. 29, 2024 | |
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) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Interest cost $ 0.4 $ 0.6 $ 0.9 $ 1.1 Expected return on plan assets (0.1) (0.2) (0.3) (0.4) Amortization of unrecognized gain (0.3) (0.3) (0.6) (0.6) Net periodic postretirement health care cost $ — $ 0.1 $ — $ 0.1 The components of net periodic postretirement health care cost, other than the service cost component, are included in “Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings. See Note 16 for additional information on Other income (expense) – net. |
Stock-based Compensation and Ot
Stock-based Compensation and Other Stock Plans | 6 Months Ended |
Jun. 29, 2024 | |
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 share units (“PSUs”), stock appreciation rights (“SARs”) and restricted stock awards (which may be designated as “restricted stock units” or “RSUs”). As of June 29, 2024, the 2011 Plan had 2,080,196 shares available for future grants. The company uses treasury stock to deliver shares under the 2011 Plan. Net stock-based compensation expense was $6.0 million and $15.8 million for the respective three and six month periods ended June 29, 2024, and $10.2 million and $20.4 million for the respective three and six month periods ended July 1, 2023. Cash received from stock purchase plans and stock option exercises totaled $23.4 million and $51.7 million during the respective three and six month periods ended June 29, 2024, and $51.8 million and $84.6 million for the respective three and six month periods ended July 1, 2023. The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $1.4 million and $11.1 million for the respective three and six month periods ended June 29, 2024, and $5.4 million and $10.5 million for the respective three and six month periods ended July 1, 2023. 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 stock 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 stock 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 stock option. The following weighted-average assumptions were used in calculating the fair value of stock options granted during the three month period ended July 1, 2023, and the six month periods ended June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model; no stock options were granted during the three month period ended June 29, 2024: Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Expected term of stock option (in years) N/A 3.80 4.90 4.89 Expected volatility factor N/A 24.52% 23.63% 23.99% Expected dividend yield N/A 2.48% 2.76% 2.60% Risk-free interest rate N/A 3.63% 4.30% 3.99% N/A: Not applicable Below is a summary of stock option activity as of and for the six months ended June 29, 2024: Shares (in thousands) Exercise Remaining Contractual Term* (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 30, 2023 1,916 $ 177.79 Granted 233 269.01 Exercised (206) 170.74 Forfeited or expired (26) 243.37 Outstanding at June 29, 2024 1,917 188.75 5.5 $ 141.0 Exercisable at June 29, 2024 1,464 169.08 4.4 135.1 * Weighted-average The weighted-average grant date fair value of stock options granted during the six months ended June 29, 2024, and July 1, 2023, was $55.07 and $51.09, respectively. The intrinsic value of stock options exercised was $5.6 million and $22.7 million during the respective three and six month periods ended June 29, 2024, and $24.5 million and $47.1 million during the respective three and six month periods ended July 1, 2023. The fair value of stock options vested was $9.5 million and $9.1 million during the respective six month periods ended June 29, 2024, and July 1, 2023. As of June 29, 2024, there was $18.6 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 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. The fair value of PSUs 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 PSUs granted during the six months ended June 29, 2024, and July 1, 2023, was $269.00 and $249.26, respectively. PSUs related to 137,096 shares and 60,402 shares were paid out during the six months ended June 29, 2024, and July 1, 2023, respectively. 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 during the six months ended June 29, 2024, are as follows: Shares (in thousands) Fair Value Non-vested PSUs at December 30, 2023 177 $ 226.81 Granted 53 269.00 Performance assumption change ** (15) 211.67 Vested — — Cancellations and other (6) 251.12 Non-vested PSUs at June 29, 2024 209 237.92 * Weighted-average ** Reflects the number of PSUs adjusted based on performance metrics. As of June 29, 2024, there was $23.1 million of unrecognized compensation cost related to non-vested PSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 1.3 years. Restricted stock units: RSUs are earned and expensed using the fair value of the award over the contractual term of three years. Vesting of the RSUs is dependent upon continued employment over the three-year cliff vesting period. The fair value of 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 RSUs granted during the six months ended June 29, 2024, and July 1, 2023, was $269.00 and $249.26, respectively. Changes to the company’s non-vested RSUs during the six months ended June 29, 2024, are as follows: Shares (in thousands) Fair Value Non-vested RSUs at December 30, 2023 80 $ 215.84 Granted 24 269.00 Vested (29) 189.89 Cancellations and other (2) 250.50 Non-vested RSUs at June 29, 2024 73 242.27 * Weighted-average As of June 29, 2024, there was $9.5 million of unrecognized compensation cost related to non-vested RSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 1.6 years. Stock appreciation rights: The company also issues stock-settled and cash-settled SARs to certain key non-U.S. employees. SARs have a contractual term of 10 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 June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model: Six Months Ended June 29, 2024 July 1, 2023 Expected term of stock-settled SARs (in years) 4.20 4.08 Expected volatility factor 23.80% 24.68% Expected dividend yield 2.77% 2.60% Risk-free interest rate 4.22% 3.87% Below is a summary of stock-settled SARs as of and for the six months ended June 29, 2024: Stock-settled SARs (in thousands) Exercise Remaining Contractual Term* (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 30, 2023 321 $ 189.93 Granted 63 269.00 Exercised (11) 160.40 Forfeited or expired (20) 186.61 Outstanding at June 29, 2024 353 205.08 6.7 $ 20.4 Exercisable at June 29, 2024 228 178.99 5.5 18.8 * Weighted-average The weighted-average grant date fair value of stock-settled SARs granted during the six months ended June 29, 2024, and July 1, 2023, was $52.12 and $48.85, respectively. The intrinsic value of stock-settled SARs exercised was $0.1 million and $1.4 million during the respective three and six month periods ended June 29, 2024, and $2.6 million and $4.8 million during the respective three and six periods ended July 1, 2023. The fair value of stock-settled SARs vested was $2.3 million and $1.9 million during the respective six month periods ended June 29, 2024, and July 1, 2023. As of June 29, 2024, there was $4.9 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 June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model: Six Months Ended June 29, 2024 July 1, 2023 Expected term of cash-settled SARs (in years) 3.88 3.80 Expected volatility factor 23.54% 24.06% Expected dividend yield 2.85% 2.25% Risk-free interest rate 4.52% 4.49% The intrinsic value of cash-settled SARs exercised was zero for both the three and six month periods ended June 29, 2024, and zero and $0.4 million for the respective three and six month periods ended July 1, 2023. The fair value of cash-settled SARs vested was $0.1 million for both the six month periods ended June 29, 2024, and July 1, 2023. Changes to the company’s non-vested cash-settled SARs during the six months ended June 29, 2024, are as follows: Cash-settled SARs (in thousands) Fair Value Non-vested cash-settled SARs at December 30, 2023 2 $ 79.16 Granted 1 46.37 Vested (1) 62.37 Non-vested cash-settled SARs at June 29, 2024 2 50.07 * Weighted-average As of June 29, 2024, 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 2.0 years. Restricted stock awards – non-employee directors: The company awarded 5,391 shares and 5,760 shares of restricted stock to non-employee directors for the respective six month periods ended June 29, 2024, and July 1, 2023. 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 on the restricted stock awards 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 prices of the stock on the beginning date (May 15) or ending date (the following May 14) of each plan year. The company records compensation expense when Snap-on’s period-end stock price is greater than the plan purchase price. There were 21,798 shares and 27,225 shares issued under this plan for the respective six month periods ended June 29, 2024, and July 1, 2023. As of June 29, 2024, 529,800 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $0.4 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 a $0.2 million compensation benefit and $0.1 million of compensation expense for plan participants during the respective three and six month periods ended June 29, 2024, and $0.5 million and $1.0 million of compensation expense during the respective three and six month periods ended July 1, 2023. 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 prices of the stock on the beginning date (May 15) or ending date (the following May 14) of each plan year. The company records mark-to-market expense when Snap-on’s period-end stock price is greater than the plan purchase price. There were 42,687 shares and 46,510 shares issued under this plan for the respective six month periods ended June 29, 2024, and July 1, 2023. As of June 29, 2024, 136,049 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $1.2 million. Participants are able to withdraw from the plan at any time prior to the ending date and generally receive back all contributions made during the plan year. The company recognized a mark-to-market benefit of $0.6 million and $0.1 million of mark-to-market expense during the respective three and six month periods ended June 29, 2024, and $0.7 million and $1.6 million of mark-to-market expense during the respective three and six month periods ended July 1, 2023. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Weighted-average common shares outstanding 52,661,542 52,956,701 52,701,553 52,987,935 Effect of dilutive securities 834,342 1,049,178 881,904 1,046,880 Weighted-average common shares outstanding, assuming dilution 53,495,884 54,005,879 53,583,457 54,034,815 The dilutive effect of the potential exercise of outstanding stock options and stock-settled SARs to purchase common shares is calculated using the treasury stock method. As of June 29, 2024, there were no awards outstanding that were anti-dilutive; as of July 1, 2023, there were 500 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024, and July 1, 2023, is as follows: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Warranty reserve: Beginning of period $ 14.9 $ 14.8 $ 14.7 $ 14.3 Additions 3.6 4.1 7.6 7.9 Usage (3.3) (4.0) (7.1) (7.3) End of period $ 15.2 $ 14.9 $ 15.2 $ 14.9 In the ordinary course of our business, Snap-on is subject to legal disputes that are being litigated and/or settled. The accompanying Condensed Consolidated Statements of Earnings for the three and six months ended June 29, 2024, include benefits in “Operating expenses” of $11.2 million and $22.5 million, respectively, for payments received associated with a legal matter; the final payments related to this matter were received in the three months ended June 29, 2024. Although it is not possible to predict the outcome of 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. |
Leases
Leases | 6 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Leases | Leases Lessee accounting: Supplemental balance sheet information related to leases as of June 29, 2024, and December 30, 2023, is as follows: (Amounts in millions) June 29, December 30, 2023 Finance leases: Property and equipment - gross $ 16.6 $ 19.1 Accumulated depreciation (14.7) (16.8) Property and equipment - net $ 1.9 $ 2.3 Other accrued liabilities $ 1.0 $ 1.6 Other long-term liabilities 1.0 1.1 Total finance lease liabilities $ 2.0 $ 2.7 Operating leases: Operating lease right-of-use assets $ 74.9 $ 74.7 Other accrued liabilities $ 24.3 $ 23.8 Operating lease liabilities 54.8 54.6 Total operating lease liabilities $ 79.1 $ 78.4 Lessor accounting: Snap-on’s Financial Services business offers lease financing to support the sales of tools, diagnostics, and equipment products, as well as vehicle leases for franchisees. 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 additional information on finance and contract receivables. |
Leases | Leases Lessee accounting: Supplemental balance sheet information related to leases as of June 29, 2024, and December 30, 2023, is as follows: (Amounts in millions) June 29, December 30, 2023 Finance leases: Property and equipment - gross $ 16.6 $ 19.1 Accumulated depreciation (14.7) (16.8) Property and equipment - net $ 1.9 $ 2.3 Other accrued liabilities $ 1.0 $ 1.6 Other long-term liabilities 1.0 1.1 Total finance lease liabilities $ 2.0 $ 2.7 Operating leases: Operating lease right-of-use assets $ 74.9 $ 74.7 Other accrued liabilities $ 24.3 $ 23.8 Operating lease liabilities 54.8 54.6 Total operating lease liabilities $ 79.1 $ 78.4 Lessor accounting: Snap-on’s Financial Services business offers lease financing to support the sales of tools, diagnostics, and equipment products, as well as vehicle leases for franchisees. 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 additional information on finance and contract receivables. |
Leases | Leases Lessee accounting: Supplemental balance sheet information related to leases as of June 29, 2024, and December 30, 2023, is as follows: (Amounts in millions) June 29, December 30, 2023 Finance leases: Property and equipment - gross $ 16.6 $ 19.1 Accumulated depreciation (14.7) (16.8) Property and equipment - net $ 1.9 $ 2.3 Other accrued liabilities $ 1.0 $ 1.6 Other long-term liabilities 1.0 1.1 Total finance lease liabilities $ 2.0 $ 2.7 Operating leases: Operating lease right-of-use assets $ 74.9 $ 74.7 Other accrued liabilities $ 24.3 $ 23.8 Operating lease liabilities 54.8 54.6 Total operating lease liabilities $ 79.1 $ 78.4 Lessor accounting: Snap-on’s Financial Services business offers lease financing to support the sales of tools, diagnostics, and equipment products, as well as vehicle leases for franchisees. 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 additional information on finance and contract receivables. |
Other Income (Expense) - Net
Other Income (Expense) - Net | 6 Months Ended |
Jun. 29, 2024 | |
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) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Interest income $ 14.2 $ 9.9 $ 27.1 $ 17.9 Net foreign exchange loss (1.5) (2.4) (3.5) (4.9) Net periodic pension and postretirement benefits – non-service 6.4 9.2 13.4 18.8 Other (0.4) 0.1 (0.2) 0.2 Total other income (expense) – net $ 18.7 $ 16.8 $ 36.8 $ 32.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended June 29, 2024: (Amounts in millions) Foreign Cash Flow Defined Total Balance as of March 30, 2024 $ (256.6) $ 5.3 $ (242.0) $ (493.3) Other comprehensive loss before reclassifications (12.8) — — (12.8) Amounts reclassified from Accumulated OCI — (0.4) 1.7 1.3 Net other comprehensive income (loss) (12.8) (0.4) 1.7 (11.5) Balance as of June 29, 2024 $ (269.4) $ 4.9 $ (240.3) $ (504.8) Below is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended June 29, 2024: (Amounts in millions) Foreign Cash Flow Defined Total Balance as of December 30, 2023 $ (211.8) $ 5.7 $ (243.4) $ (449.5) Other comprehensive loss before reclassifications (57.6) — — (57.6) Amounts reclassified from Accumulated OCI — (0.8) 3.1 2.3 Net other comprehensive income (loss) (57.6) (0.8) 3.1 (55.3) Balance as of June 29, 2024 $ (269.4) $ 4.9 $ (240.3) $ (504.8) Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended July 1, 2023: (Amounts in millions) Foreign Cash Flow Defined Total Balance as of April 1, 2023 $ (254.4) $ 6.9 $ (263.1) $ (510.6) Other comprehensive income before reclassifications 0.2 — — 0.2 Amounts reclassified from Accumulated OCI — (0.4) 0.1 (0.3) Net other comprehensive income (loss) 0.2 (0.4) 0.1 (0.1) Balance as of July 1, 2023 $ (254.2) $ 6.5 $ (263.0) $ (510.7) Below is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended July 1, 2023: (Amounts in millions) Foreign Cash Flow Defined Total Balance as of December 31, 2022 $ (272.5) $ 7.3 $ (263.1) $ (528.3) Other comprehensive income before reclassifications 18.3 — — 18.3 Amounts reclassified from Accumulated OCI — (0.8) 0.1 (0.7) Net other comprehensive income (loss) 18.3 (0.8) 0.1 17.6 Balance as of July 1, 2023 $ (254.2) $ 6.5 $ (263.0) $ (510.7) The reclassifications out of Accumulated OCI for the three and six month periods ended June 29, 2024, and July 1, 2023, are as follows: Amount Reclassified from Accumulated OCI Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Statement of Earnings 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 $ (2.2) $ (0.1) $ (4.0) $ (0.1) See footnote below* Income tax benefit 0.5 — 0.9 — Income tax expense Net of tax (1.7) (0.1) (3.1) (0.1) Total reclassifications for the period, net of tax $ (1.3) $ 0.3 $ (2.3) $ 0.7 * These Accumulated OCI components are included in the computation of net periodic pension and postretirement health care costs; see Note 10 and Note 11 for additional information. |
Segments
Segments | 6 Months Ended |
Jun. 29, 2024 | |
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 and military, 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 multinational 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 and segment operating earnings. The Snap-on Tools Group segment revenues include external net sales, while the Commercial & Industrial Group and the Repair Systems & Information Group segment revenues include both external and intersegment net sales. Snap-on accounts for intersegment net 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. Financial Data by Segment: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net sales: Commercial & Industrial Group $ 372.0 $ 364.2 $ 731.9 $ 728.0 Snap-on Tools Group 482.0 523.1 982.1 1,060.1 Repair Systems & Information Group 454.8 452.0 918.6 898.6 Segment net sales 1,308.8 1,339.3 2,632.6 2,686.7 Intersegment eliminations (129.4) (148.0) (270.9) (312.4) Total net sales 1,179.4 1,191.3 2,361.7 2,374.3 Financial Services revenue 100.5 93.4 200.1 186.0 Total revenues $ 1,279.9 $ 1,284.7 $ 2,561.8 $ 2,560.3 Operating earnings: Commercial & Industrial Group $ 62.2 $ 58.1 $ 117.6 $ 113.9 Snap-on Tools Group 114.8 137.7 232.1 269.4 Repair Systems & Information Group 113.6 110.4 226.5 215.0 Financial Services 70.2 66.9 138.5 133.2 Segment operating earnings 360.8 373.1 714.7 731.5 Corporate (10.3) (29.2) (25.0) (61.5) Operating earnings 350.5 343.9 689.7 670.0 Interest expense (12.3) (12.6) (24.8) (25.0) Other income (expense) – net 18.7 16.8 36.8 32.0 Earnings before income taxes $ 356.9 $ 348.1 $ 701.7 $ 677.0 (Amounts in millions) June 29, December 30, 2023 Assets: Commercial & Industrial Group $ 1,274.3 $ 1,293.7 Snap-on Tools Group 928.6 941.8 Repair Systems & Information Group 1,661.5 1,680.0 Financial Services 2,476.6 2,430.0 Total assets from reportable segments 6,341.0 6,345.5 Corporate 1,508.9 1,285.0 Elimination of intersegment receivables (90.0) (85.6) Total assets $ 7,759.9 $ 7,544.9 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 271.2 | $ 264 | $ 534.7 | $ 512.7 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 2024 | |
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 2023 Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (“2023 year end”). The company’s 2024 fiscal second quarter ended on June 29, 2024, and its 2023 fiscal second quarter ended on July 1, 2023. The company’s 2024 and 2023 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 June 29, 2024, and July 1, 2023, 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 9 for additional information on financial instruments. |
New Accounting Standards | New Accounting Standards In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024. The guidance is to be applied on a prospective basis with the option to apply the standard retrospectively; this ASU allows for early adoption. The adoption of this ASU is not expected to have a material impact on Snap-on’s Condensed Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires the disclosure of additional segment information. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024; this ASU allows for early adoption. The adoption of this ASU is not expected to have a material impact on Snap-on’s Condensed Consolidated Financial Statements. |
Revenue Recognition | Snap-on recognizes revenue from the sale of tools, diagnostics, equipment, 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. Snap-on evaluates the performance of its operating segments based on segment revenues and segment operating earnings. The Snap-on Tools Group segment revenues include external net sales, while the Commercial & Industrial Group and the Repair Systems & Information Group segment revenues include both external and intersegment net sales. Snap-on accounts for intersegment net 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. 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 computer-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 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 include repair services. The remaining sales revenue is earned over time primarily for software subscriptions, other subscription service agreements and extended warranty programs. Snap-on enters into contracts related to the selling of tools, diagnostics, repair information, equipment 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. Contract liabilities: |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table shows the consolidated revenues by revenue source: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Revenue from contracts with customers $ 1,172.0 $ 1,184.6 $ 2,347.2 $ 2,361.1 Other revenues 7.4 6.7 14.5 13.2 Total net sales 1,179.4 1,191.3 2,361.7 2,374.3 Financial services revenue 100.5 93.4 200.1 186.0 Total revenues $ 1,279.9 $ 1,284.7 $ 2,561.8 $ 2,560.3 The following tables represent external net sales disaggregated by geography, based on the customers’ billing addresses: For the Three Months Ended June 29, 2024 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 163.5 $ 413.4 $ 298.2 $ — $ — $ 875.1 Europe 76.8 41.4 67.2 — — 185.4 All other 64.7 27.2 27.0 — — 118.9 External net sales 305.0 482.0 392.4 — — 1,179.4 Intersegment net sales 67.0 — 62.4 — (129.4) — Total net sales 372.0 482.0 454.8 — (129.4) 1,179.4 Financial services revenue — — — 100.5 — 100.5 Total revenue $ 372.0 $ 482.0 $ 454.8 $ 100.5 $ (129.4) $ 1,279.9 For the Six Months Ended June 29, 2024 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 312.1 $ 846.7 $ 600.3 $ — $ — $ 1,759.1 Europe 157.8 81.0 129.3 — — 368.1 All other 126.1 54.4 54.0 — — 234.5 External net sales 596.0 982.1 783.6 — — 2,361.7 Intersegment net sales 135.9 — 135.0 — (270.9) — Total net sales 731.9 982.1 918.6 — (270.9) 2,361.7 Financial services revenue — — — 200.1 — 200.1 Total revenue $ 731.9 $ 982.1 $ 918.6 $ 200.1 $ (270.9) $ 2,561.8 * North America is comprised of the United States, Canada and Mexico. For the Three Months Ended July 1, 2023 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 144.3 $ 459.3 $ 285.9 $ — $ — $ 889.5 Europe 75.5 39.0 63.6 — — 178.1 All other 70.0 24.8 28.9 — — 123.7 External net sales 289.8 523.1 378.4 — — 1,191.3 Intersegment net sales 74.4 — 73.6 — (148.0) — Total net sales 364.2 523.1 452.0 — (148.0) 1,191.3 Financial services revenue — — — 93.4 — 93.4 Total revenue $ 364.2 $ 523.1 $ 452.0 $ 93.4 $ (148.0) $ 1,284.7 For the Six Months Ended July 1, 2023 Commercial Snap-on Repair Systems & Industrial Tools & Information Financial Snap-on (Amounts in millions) Group Group Group Services Eliminations Incorporated Net sales: North America* $ 281.9 $ 933.2 $ 567.7 $ — $ — $ 1,782.8 Europe 150.5 74.7 126.8 — — 352.0 All other 136.0 52.2 51.3 — — 239.5 External net sales 568.4 1,060.1 745.8 — — 2,374.3 Intersegment net sales 159.6 — 152.8 — (312.4) — Total net sales 728.0 1,060.1 898.6 — (312.4) 2,374.3 Financial services revenue — — — 186.0 — 186.0 Total revenue $ 728.0 $ 1,060.1 $ 898.6 $ 186.0 $ (312.4) $ 2,560.3 * 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 June 29, 2024 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 $ 21.0 $ 482.0 $ 392.4 $ — $ — $ 895.4 All other professionals 284.0 — — — — 284.0 External net sales 305.0 482.0 392.4 — — 1,179.4 Intersegment net sales 67.0 — 62.4 — (129.4) — Total net sales 372.0 482.0 454.8 — (129.4) 1,179.4 Financial services revenue — — — 100.5 — 100.5 Total revenue $ 372.0 $ 482.0 $ 454.8 $ 100.5 $ (129.4) $ 1,279.9 For the Six Months Ended June 29, 2024 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 $ 41.3 $ 982.1 $ 783.6 $ — $ — $ 1,807.0 All other professionals 554.7 — — — — 554.7 External net sales 596.0 982.1 783.6 — — 2,361.7 Intersegment net sales 135.9 — 135.0 — (270.9) — Total net sales 731.9 982.1 918.6 — (270.9) 2,361.7 Financial services revenue — — — 200.1 — 200.1 Total revenue $ 731.9 $ 982.1 $ 918.6 $ 200.1 $ (270.9) $ 2,561.8 For the Three Months Ended July 1, 2023 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 $ 21.7 $ 523.1 $ 378.4 $ — $ — $ 923.2 All other professionals 268.1 — — — — 268.1 External net sales 289.8 523.1 378.4 — — 1,191.3 Intersegment net sales 74.4 — 73.6 — (148.0) — Total net sales 364.2 523.1 452.0 — (148.0) 1,191.3 Financial services revenue — — — 93.4 — 93.4 Total revenue $ 364.2 $ 523.1 $ 452.0 $ 93.4 $ (148.0) $ 1,284.7 For the Six Months Ended July 1, 2023 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 $ 42.8 $ 1,060.1 $ 745.8 $ — $ — $ 1,848.7 All other professionals 525.6 — — — — 525.6 External net sales 568.4 1,060.1 745.8 — — 2,374.3 Intersegment net sales 159.6 — 152.8 — (312.4) — Total net sales 728.0 1,060.1 898.6 — (312.4) 2,374.3 Financial services revenue — — — 186.0 — 186.0 Total revenue $ 728.0 $ 1,060.1 $ 898.6 $ 186.0 $ (312.4) $ 2,560.3 |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Receivables [Abstract] | |
Schedule of Components of Trade and Other Accounts Receivable | The components of Snap-on’s trade and other accounts receivable as of June 29, 2024, and December 30, 2023, are as follows: (Amounts in millions) June 29, December 30, 2023 Trade and other accounts receivable $ 820.0 $ 826.2 Allowances for credit losses (36.5) (34.9) Total trade and other accounts receivable – net $ 783.5 $ 791.3 |
Schedule of Allowance for Credit Losses on Receivables | 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 June 29, 2024, and July 1, 2023: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Allowances for credit losses: Beginning of period $ 35.9 $ 31.2 $ 34.9 $ 31.1 Provision for credit losses 6.6 3.5 10.9 8.2 Charge-offs (5.6) (2.5) (8.6) (7.3) Recoveries — — 0.1 — Currency translation (0.4) 0.1 (0.8) 0.3 End of period $ 36.5 $ 32.3 $ 36.5 $ 32.3 |
Schedule of Components of Finance and Contract Receivables, Current and Beyond One Year | The components of Snap-on’s current finance and contract receivables as of June 29, 2024, and December 30, 2023, are as follows: (Amounts in millions) June 29, December 30, 2023 Finance installment receivables $ 626.0 $ 605.2 Finance lease receivables, net of unearned finance charges of $5.3 million and $3.4 million, respectively 14.6 10.1 Total finance receivables 640.6 615.3 Contract installment receivables 50.6 59.9 Contract lease receivables, net of unearned finance charges of $21.7 million and $21.1 million, respectively 63.1 62.7 Total contract receivables 113.7 122.6 Total 754.3 737.9 Allowances for credit losses: Finance installment receivables (22.4) (21.1) Finance lease receivables (0.3) (0.1) Total finance allowances for credit losses (22.7) (21.2) Contract installment receivables (0.8) (0.9) Contract lease receivables (0.9) (0.9) Total contract allowances for credit losses (1.7) (1.8) Total allowances for credit losses (24.4) (23.0) Total current finance and contract receivables – net $ 729.9 $ 714.9 Finance receivables – net $ 617.9 $ 594.1 Contract receivables – net 112.0 120.8 Total current finance and contract receivables – net $ 729.9 $ 714.9 The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of June 29, 2024, and December 30, 2023, are as follows: (Amounts in millions) June 29, December 30, 2023 Finance installment receivables $ 1,330.8 $ 1,318.5 Finance lease receivables, net of unearned finance charges of $4.4 million and $2.8 million, respectively 19.0 12.3 Total finance receivables 1,349.8 1,330.8 Contract installment receivables 221.3 216.0 Contract lease receivables, net of unearned finance charges of $36.7 million and $35.1 million, respectively 201.2 196.8 Total contract receivables 422.5 412.8 Total 1,772.3 1,743.6 Allowances for credit losses: Finance installment receivables (48.0) (46.4) Finance lease receivables (0.4) (0.2) Total finance allowances for credit losses (48.4) (46.6) Contract installment receivables (3.3) (3.1) Contract lease receivables (1.8) (1.8) Total contract allowances for credit losses (5.1) (4.9) Total allowances for credit losses (53.5) (51.5) Total long-term finance and contract receivables – net $ 1,718.8 $ 1,692.1 Finance receivables – net $ 1,301.4 $ 1,284.2 Contract receivables – net 417.4 407.9 Total long-term finance and contract receivables – net $ 1,718.8 $ 1,692.1 |
Schedule of Financing Receivable Credit Quality Indicators | The amortized cost basis of finance and contract receivables by origination year as of June 29, 2024, and charge-offs recorded in the six months ended June 29, 2024, by origination year, are as follows: (Amounts in millions) 2024 2023 2022 2021 2020 Prior Total Finance receivables: Delinquent $ 5.0 $ 25.6 $ 12.9 $ 5.9 $ 3.2 $ 1.7 $ 54.3 Non-delinquent 865.6 708.3 237.8 84.1 33.0 7.3 1,936.1 Total Finance receivables $ 870.6 $ 733.9 $ 250.7 $ 90.0 $ 36.2 $ 9.0 $ 1,990.4 Finance receivables charge-offs $ 0.2 $ 16.7 $ 11.3 $ 4.9 $ 2.7 $ 1.2 $ 37.0 Contract receivables: Delinquent $ — $ 0.4 $ 0.8 $ 0.7 $ 0.5 $ 0.5 $ 2.9 Non-delinquent 104.0 161.9 105.9 69.8 46.3 45.4 533.3 Total Contract receivables $ 104.0 $ 162.3 $ 106.7 $ 70.5 $ 46.8 $ 45.9 $ 536.2 Contract receivables charge-offs $ — $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 1.0 |
Schedule of 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 June 29, 2024, and July 1, 2023: Three Months Ended Six Months Ended (Amounts in millions) Finance Contract Finance Contract Allowances for credit losses: Beginning of period $ 69.8 $ 6.8 $ 67.8 $ 6.7 Provision for credit losses 17.2 0.3 35.4 0.9 Charge-offs (18.7) (0.4) (37.0) (1.0) Recoveries 2.8 0.1 5.0 0.2 Currency translation — — (0.1) — End of period $ 71.1 $ 6.8 $ 71.1 $ 6.8 Three Months Ended Six Months Ended (Amounts in millions) Finance Receivables Contract Receivables Finance Receivables Contract Receivables Allowances for credit losses: Beginning of period $ 62.7 $ 6.5 $ 60.9 $ 6.6 Provision for credit losses 13.7 0.3 27.9 0.6 Charge-offs (13.9) (0.4) (28.4) (0.9) Recoveries 2.5 0.1 4.6 0.2 Currency translation 0.1 — 0.1 — End of period $ 65.1 $ 6.5 $ 65.1 $ 6.5 |
Schedule of Aging of Finance and Contract Receivables | The aging of finance and contract receivables as of June 29, 2024, and December 30, 2023, is as follows: (Amounts in millions) 30-59 60-90 Greater Total Past Total Not Total Greater June 29, 2024: Finance receivables $ 20.5 $ 12.2 $ 21.6 $ 54.3 $ 1,936.1 $ 1,990.4 $ 18.3 Contract receivables 1.3 0.6 1.0 2.9 533.3 536.2 0.2 December 30, 2023: Finance receivables $ 21.5 $ 13.6 $ 23.2 $ 58.3 $ 1,887.8 $ 1,946.1 $ 19.9 Contract receivables 1.5 0.6 1.2 3.3 532.1 535.4 0.2 |
Schedule of Finance and Contract Receivables on Nonaccrual Status | The amount of finance and contract receivables on nonaccrual status as of June 29, 2024, and December 30, 2023, is as follows: (Amounts in millions) June 29, December 30, 2023 Finance receivables $ 11.7 $ 10.6 Contract receivables 2.8 3.3 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories by Major Classification | Inventories by major classification are as follows: (Amounts in millions) June 29, December 30, 2023 Finished goods $ 840.8 $ 874.6 Work in progress 79.5 76.1 Raw materials 166.9 171.1 Total FIFO value 1,087.2 1,121.8 Excess of current cost over LIFO cost (122.2) (115.9) Total inventories – net $ 965.0 $ 1,005.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment for the six months ended June 29, 2024, are as follows: (Amounts in millions) Commercial Snap-on Repair Systems Total Balance as of December 30, 2023 $ 346.6 $ 12.4 $ 738.4 $ 1,097.4 Currency translation (10.7) — (5.6) (16.3) Acquisition adjustments (13.2) — — (13.2) Balance as of June 29, 2024 $ 322.7 $ 12.4 $ 732.8 $ 1,067.9 |
Schedule of Other Intangible Assets by Major Class | Additional disclosures related to other intangible assets are as follows: June 29, 2024 December 30, 2023 (Amounts in millions) Gross Carrying Value Accumulated Net Carrying Value Gross Carrying Value Accumulated Net Carrying Value Amortized other intangible assets: Customer relationships $ 220.7 $ (166.8) $ 53.9 $ 214.5 $ (163.6) $ 50.9 Developed technology 36.1 (31.2) 4.9 36.2 (29.8) 6.4 Internally developed software 196.8 (153.0) 43.8 191.3 (148.2) 43.1 Patents 48.1 (20.7) 27.4 53.0 (26.8) 26.2 Trademarks 3.9 (2.5) 1.4 4.0 (2.5) 1.5 Other 6.1 (2.8) 3.3 6.2 (2.8) 3.4 Total 511.7 (377.0) 134.7 505.2 (373.7) 131.5 Non-amortized trademarks 140.1 — 140.1 137.4 — 137.4 Total other intangible assets $ 651.8 $ (377.0) $ 274.8 $ 642.6 $ (373.7) $ 268.9 |
Schedule of Weighted-Average Amortization Period by Major Class | The weighted-average amortization periods related to other intangible assets are as follows: In Years Customer relationships 14 Developed technology 5 Internally developed software 6 Patents 15 Trademarks 9 Other 39 |
Short-term and Long-term Debt (
Short-term and Long-term Debt (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Debt | Short-term and long-term debt as of June 29, 2024, and December 30, 2023, consisted of the following: (Amounts in millions) June 29, December 30, 2023 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 debt* 0.8 0.2 1,200.8 1,200.2 Less: notes payable (15.7) (15.6) Total long-term debt $ 1,185.1 $ 1,184.6 * Includes unamortized debt issuance costs and issuance discounts. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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: June 29, 2024 December 30, 2023 (Amounts in millions) Carrying Fair Carrying Fair Finance receivables – net $ 1,919.3 $ 2,165.1 $ 1,878.3 $ 2,138.7 Contract receivables – net 529.4 561.6 528.7 561.6 Long-term debt and notes payable 1,200.8 959.1 1,200.2 1,031.5 |
Pension Plans (Tables)
Pension Plans (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Benefit | Snap-on’s net periodic pension benefit included the following components: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Service cost $ 5.0 $ 4.5 $ 10.0 $ 9.4 Interest cost 16.4 16.4 32.8 32.7 Expected return on plan assets (25.3) (26.1) (50.8) (52.3) Amortization of unrecognized loss 2.5 0.4 4.6 0.7 Net periodic pension benefit $ (1.4) $ (4.8) $ (3.4) $ (9.5) |
Postretirement Health Care Pl_2
Postretirement Health Care Plans (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Interest cost $ 0.4 $ 0.6 $ 0.9 $ 1.1 Expected return on plan assets (0.1) (0.2) (0.3) (0.4) Amortization of unrecognized gain (0.3) (0.3) (0.6) (0.6) Net periodic postretirement health care cost $ — $ 0.1 $ — $ 0.1 |
Stock-based Compensation and _2
Stock-based Compensation and Other Stock Plans - (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule 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 three month period ended July 1, 2023, and the six month periods ended June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model; no stock options were granted during the three month period ended June 29, 2024: Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Expected term of stock option (in years) N/A 3.80 4.90 4.89 Expected volatility factor N/A 24.52% 23.63% 23.99% Expected dividend yield N/A 2.48% 2.76% 2.60% Risk-free interest rate N/A 3.63% 4.30% 3.99% N/A: Not applicable |
Schedule of Stock Option Activity | Below is a summary of stock option activity as of and for the six months ended June 29, 2024: Shares (in thousands) Exercise Remaining Contractual Term* (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 30, 2023 1,916 $ 177.79 Granted 233 269.01 Exercised (206) 170.74 Forfeited or expired (26) 243.37 Outstanding at June 29, 2024 1,917 188.75 5.5 $ 141.0 Exercisable at June 29, 2024 1,464 169.08 4.4 135.1 * Weighted-average |
Schedule of Changes in Non-Vested Performance Awards | Changes to the company’s non-vested PSUs during the six months ended June 29, 2024, are as follows: Shares (in thousands) Fair Value Non-vested PSUs at December 30, 2023 177 $ 226.81 Granted 53 269.00 Performance assumption change ** (15) 211.67 Vested — — Cancellations and other (6) 251.12 Non-vested PSUs at June 29, 2024 209 237.92 * Weighted-average ** Reflects the number of PSUs adjusted based on performance metrics. |
Schedule of Non-vested Restricted Stock Units Activity | Changes to the company’s non-vested RSUs during the six months ended June 29, 2024, are as follows: Shares (in thousands) Fair Value Non-vested RSUs at December 30, 2023 80 $ 215.84 Granted 24 269.00 Vested (29) 189.89 Cancellations and other (2) 250.50 Non-vested RSUs at June 29, 2024 73 242.27 * Weighted-average |
Schedule 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 June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model: Six Months Ended June 29, 2024 July 1, 2023 Expected term of stock-settled SARs (in years) 4.20 4.08 Expected volatility factor 23.80% 24.68% Expected dividend yield 2.77% 2.60% Risk-free interest rate 4.22% 3.87% The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the six months ended June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model: Six Months Ended June 29, 2024 July 1, 2023 Expected term of cash-settled SARs (in years) 3.88 3.80 Expected volatility factor 23.54% 24.06% Expected dividend yield 2.85% 2.25% Risk-free interest rate 4.52% 4.49% |
Schedule of Changes in SARs | Below is a summary of stock-settled SARs as of and for the six months ended June 29, 2024: Stock-settled SARs (in thousands) Exercise Remaining Contractual Term* (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 30, 2023 321 $ 189.93 Granted 63 269.00 Exercised (11) 160.40 Forfeited or expired (20) 186.61 Outstanding at June 29, 2024 353 205.08 6.7 $ 20.4 Exercisable at June 29, 2024 228 178.99 5.5 18.8 * Weighted-average Changes to the company’s non-vested cash-settled SARs during the six months ended June 29, 2024, are as follows: Cash-settled SARs (in thousands) Fair Value Non-vested cash-settled SARs at December 30, 2023 2 $ 79.16 Granted 1 46.37 Vested (1) 62.37 Non-vested cash-settled SARs at June 29, 2024 2 50.07 * Weighted-average |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of 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 June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Weighted-average common shares outstanding 52,661,542 52,956,701 52,701,553 52,987,935 Effect of dilutive securities 834,342 1,049,178 881,904 1,046,880 Weighted-average common shares outstanding, assuming dilution 53,495,884 54,005,879 53,583,457 54,034,815 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Accrual Activity | Snap-on’s product warranty accrual activity for the three and six months ended June 29, 2024, and July 1, 2023, is as follows: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Warranty reserve: Beginning of period $ 14.9 $ 14.8 $ 14.7 $ 14.3 Additions 3.6 4.1 7.6 7.9 Usage (3.3) (4.0) (7.1) (7.3) End of period $ 15.2 $ 14.9 $ 15.2 $ 14.9 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024, and December 30, 2023, is as follows: (Amounts in millions) June 29, December 30, 2023 Finance leases: Property and equipment - gross $ 16.6 $ 19.1 Accumulated depreciation (14.7) (16.8) Property and equipment - net $ 1.9 $ 2.3 Other accrued liabilities $ 1.0 $ 1.6 Other long-term liabilities 1.0 1.1 Total finance lease liabilities $ 2.0 $ 2.7 Operating leases: Operating lease right-of-use assets $ 74.9 $ 74.7 Other accrued liabilities $ 24.3 $ 23.8 Operating lease liabilities 54.8 54.6 Total operating lease liabilities $ 79.1 $ 78.4 |
Other Income (Expense) - Net (T
Other Income (Expense) - Net (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Interest income $ 14.2 $ 9.9 $ 27.1 $ 17.9 Net foreign exchange loss (1.5) (2.4) (3.5) (4.9) Net periodic pension and postretirement benefits – non-service 6.4 9.2 13.4 18.8 Other (0.4) 0.1 (0.2) 0.2 Total other income (expense) – net $ 18.7 $ 16.8 $ 36.8 $ 32.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Schedule of Net Changes in Accumulated OCI by Component, Net of Tax | Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended June 29, 2024: (Amounts in millions) Foreign Cash Flow Defined Total Balance as of March 30, 2024 $ (256.6) $ 5.3 $ (242.0) $ (493.3) Other comprehensive loss before reclassifications (12.8) — — (12.8) Amounts reclassified from Accumulated OCI — (0.4) 1.7 1.3 Net other comprehensive income (loss) (12.8) (0.4) 1.7 (11.5) Balance as of June 29, 2024 $ (269.4) $ 4.9 $ (240.3) $ (504.8) Below is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended June 29, 2024: (Amounts in millions) Foreign Cash Flow Defined Total Balance as of December 30, 2023 $ (211.8) $ 5.7 $ (243.4) $ (449.5) Other comprehensive loss before reclassifications (57.6) — — (57.6) Amounts reclassified from Accumulated OCI — (0.8) 3.1 2.3 Net other comprehensive income (loss) (57.6) (0.8) 3.1 (55.3) Balance as of June 29, 2024 $ (269.4) $ 4.9 $ (240.3) $ (504.8) Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended July 1, 2023: (Amounts in millions) Foreign Cash Flow Defined Total Balance as of April 1, 2023 $ (254.4) $ 6.9 $ (263.1) $ (510.6) Other comprehensive income before reclassifications 0.2 — — 0.2 Amounts reclassified from Accumulated OCI — (0.4) 0.1 (0.3) Net other comprehensive income (loss) 0.2 (0.4) 0.1 (0.1) Balance as of July 1, 2023 $ (254.2) $ 6.5 $ (263.0) $ (510.7) Below is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended July 1, 2023: (Amounts in millions) Foreign Cash Flow Defined Total Balance as of December 31, 2022 $ (272.5) $ 7.3 $ (263.1) $ (528.3) Other comprehensive income before reclassifications 18.3 — — 18.3 Amounts reclassified from Accumulated OCI — (0.8) 0.1 (0.7) Net other comprehensive income (loss) 18.3 (0.8) 0.1 17.6 Balance as of July 1, 2023 $ (254.2) $ 6.5 $ (263.0) $ (510.7) |
Schedule of Reclassifications Out of Accumulated OCI | The reclassifications out of Accumulated OCI for the three and six month periods ended June 29, 2024, and July 1, 2023, are as follows: Amount Reclassified from Accumulated OCI Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Statement of Earnings 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 $ (2.2) $ (0.1) $ (4.0) $ (0.1) See footnote below* Income tax benefit 0.5 — 0.9 — Income tax expense Net of tax (1.7) (0.1) (3.1) (0.1) Total reclassifications for the period, net of tax $ (1.3) $ 0.3 $ (2.3) $ 0.7 * These Accumulated OCI components are included in the computation of net periodic pension and postretirement health care costs; see Note 10 and Note 11 for additional information. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Segment | Financial Data by Segment: Three Months Ended Six Months Ended (Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net sales: Commercial & Industrial Group $ 372.0 $ 364.2 $ 731.9 $ 728.0 Snap-on Tools Group 482.0 523.1 982.1 1,060.1 Repair Systems & Information Group 454.8 452.0 918.6 898.6 Segment net sales 1,308.8 1,339.3 2,632.6 2,686.7 Intersegment eliminations (129.4) (148.0) (270.9) (312.4) Total net sales 1,179.4 1,191.3 2,361.7 2,374.3 Financial Services revenue 100.5 93.4 200.1 186.0 Total revenues $ 1,279.9 $ 1,284.7 $ 2,561.8 $ 2,560.3 Operating earnings: Commercial & Industrial Group $ 62.2 $ 58.1 $ 117.6 $ 113.9 Snap-on Tools Group 114.8 137.7 232.1 269.4 Repair Systems & Information Group 113.6 110.4 226.5 215.0 Financial Services 70.2 66.9 138.5 133.2 Segment operating earnings 360.8 373.1 714.7 731.5 Corporate (10.3) (29.2) (25.0) (61.5) Operating earnings 350.5 343.9 689.7 670.0 Interest expense (12.3) (12.6) (24.8) (25.0) Other income (expense) – net 18.7 16.8 36.8 32.0 Earnings before income taxes $ 356.9 $ 348.1 $ 701.7 $ 677.0 |
Schedule of Assets by Segment | (Amounts in millions) June 29, December 30, 2023 Assets: Commercial & Industrial Group $ 1,274.3 $ 1,293.7 Snap-on Tools Group 928.6 941.8 Repair Systems & Information Group 1,661.5 1,680.0 Financial Services 2,476.6 2,430.0 Total assets from reportable segments 6,341.0 6,345.5 Corporate 1,508.9 1,285.0 Elimination of intersegment receivables (90.0) (85.6) Total assets $ 7,759.9 $ 7,544.9 |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 1,172 | $ 1,184.6 | $ 2,347.2 | $ 2,361.1 |
Net sales | 1,279.9 | 1,284.7 | 2,561.8 | 2,560.3 |
Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (129.4) | (148) | (270.9) | (312.4) |
Commercial & Industrial Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 372 | 364.2 | 731.9 | 728 |
Snap-on Tools Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 482 | 523.1 | 982.1 | 1,060.1 |
Repair Systems & Information Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 454.8 | 452 | 918.6 | 898.6 |
Financial Services | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 100.5 | 93.4 | 200.1 | 186 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 7.4 | 6.7 | 14.5 | 13.2 |
Total net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,179.4 | 1,191.3 | 2,361.7 | 2,374.3 |
Total net sales | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,179.4 | 1,191.3 | 2,361.7 | 2,374.3 |
Total net sales | Vehicle service professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 895.4 | 923.2 | 1,807 | 1,848.7 |
Total net sales | All other professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 284 | 268.1 | 554.7 | 525.6 |
Total net sales | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,308.8 | 1,339.3 | 2,632.6 | 2,686.7 |
Total net sales | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (129.4) | (148) | (270.9) | (312.4) |
Total net sales | Commercial & Industrial Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 372 | 364.2 | 731.9 | 728 |
Total net sales | Commercial & Industrial Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 305 | 289.8 | 596 | 568.4 |
Total net sales | Commercial & Industrial Group | Total assets from reportable segments | Vehicle service professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 21 | 21.7 | 41.3 | 42.8 |
Total net sales | Commercial & Industrial Group | Total assets from reportable segments | All other professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 284 | 268.1 | 554.7 | 525.6 |
Total net sales | Commercial & Industrial Group | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 67 | 74.4 | 135.9 | 159.6 |
Total net sales | Snap-on Tools Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 482 | 523.1 | 982.1 | 1,060.1 |
Total net sales | Snap-on Tools Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 482 | 523.1 | 982.1 | 1,060.1 |
Total net sales | Snap-on Tools Group | Total assets from reportable segments | Vehicle service professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 482 | 523.1 | 982.1 | 1,060.1 |
Total net sales | Snap-on Tools Group | Total assets from reportable segments | All other professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | Snap-on Tools Group | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | Repair Systems & Information Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 454.8 | 452 | 918.6 | 898.6 |
Total net sales | Repair Systems & Information Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 392.4 | 378.4 | 783.6 | 745.8 |
Total net sales | Repair Systems & Information Group | Total assets from reportable segments | Vehicle service professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 392.4 | 378.4 | 783.6 | 745.8 |
Total net sales | Repair Systems & Information Group | Total assets from reportable segments | All other professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | Repair Systems & Information Group | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 62.4 | 73.6 | 135 | 152.8 |
Total net sales | Financial Services | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | Financial Services | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | Financial Services | Total assets from reportable segments | Vehicle service professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | Financial Services | Total assets from reportable segments | All other professionals | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | Financial Services | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | North America | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 875.1 | 889.5 | 1,759.1 | 1,782.8 |
Total net sales | North America | Commercial & Industrial Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 163.5 | 144.3 | 312.1 | 281.9 |
Total net sales | North America | Snap-on Tools Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 413.4 | 459.3 | 846.7 | 933.2 |
Total net sales | North America | Repair Systems & Information Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 298.2 | 285.9 | 600.3 | 567.7 |
Total net sales | North America | Financial Services | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | Europe | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 185.4 | 178.1 | 368.1 | 352 |
Total net sales | Europe | Commercial & Industrial Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 76.8 | 75.5 | 157.8 | 150.5 |
Total net sales | Europe | Snap-on Tools Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 41.4 | 39 | 81 | 74.7 |
Total net sales | Europe | Repair Systems & Information Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 67.2 | 63.6 | 129.3 | 126.8 |
Total net sales | Europe | Financial Services | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total net sales | All other | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 118.9 | 123.7 | 234.5 | 239.5 |
Total net sales | All other | Commercial & Industrial Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64.7 | 70 | 126.1 | 136 |
Total net sales | All other | Snap-on Tools Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 27.2 | 24.8 | 54.4 | 52.2 |
Total net sales | All other | Repair Systems & Information Group | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 27 | 28.9 | 54 | 51.3 |
Total net sales | All other | Financial Services | Total assets from reportable segments | External Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Financial services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 100.5 | 93.4 | 200.1 | 186 |
Financial services revenue | Intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Financial services revenue | Commercial & Industrial Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Financial services revenue | Snap-on Tools Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Financial services revenue | Repair Systems & Information Group | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Financial services revenue | Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 100.5 | 93.4 | 200.1 | 186 |
Financial services revenue | Financial Services | Total assets from reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 100.5 | $ 93.4 | $ 200.1 | $ 186 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 29, 2024 USD ($) revenueCategory | Jun. 29, 2024 USD ($) revenueCategory | Dec. 30, 2023 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of revenue product and service categories | revenueCategory | 3 | 3 | |
Revenue, performance obligation, description of timing | The remaining duration of these unsatisfied performance obligations range from one month up to 60 months. | ||
Contractual obligation | $ 184 | $ 184 | |
Contract with customer, liability | 68.8 | 68.8 | $ 63.3 |
Contract with customer, liability, revenue recognized | $ 13.4 | $ 48.8 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-30 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 18 months | 18 months | |
Revenue, remaining performance obligation, percentage of revenue recognized | 65% | 65% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-28 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years | 2 years | |
Revenue, remaining performance obligation, percentage of revenue recognized | 30% | 30% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | |||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 month | 1 month | |
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 60 months | 60 months | |
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% |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Nov. 20, 2023 | Nov. 01, 2023 | Jun. 29, 2024 | Dec. 30, 2023 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,067.9 | $ 1,097.4 | ||
S A V T E Q | ||||
Business Acquisition [Line Items] | ||||
Cash purchase price of acquisition | $ 3 | |||
Goodwill | $ 1.7 | |||
Mountz | ||||
Business Acquisition [Line Items] | ||||
Cash purchase price of acquisition | $ 39.6 | |||
Goodwill | $ 19.8 | $ 19.8 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) | 6 Months Ended |
Jun. 29, 2024 portfolio_segment | |
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 |
Receivables - Components of Tra
Receivables - Components of Trade and Other Accounts Receivable (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Mar. 30, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||||||
Trade and other accounts receivable | $ 820 | $ 826.2 | ||||
Allowances for credit losses | (36.5) | $ (35.9) | (34.9) | $ (32.3) | $ (31.2) | $ (31.1) |
Total trade and other accounts receivable – net | $ 783.5 | $ 791.3 |
Receivables - Schedule of Allow
Receivables - Schedule of Allowance For Credit Losses On Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Allowances for credit losses: | ||||
Beginning of period | $ 35.9 | $ 31.2 | $ 34.9 | $ 31.1 |
Provision for credit losses | 6.6 | 3.5 | 10.9 | 8.2 |
Charge-offs | (5.6) | (2.5) | (8.6) | (7.3) |
Recoveries | 0 | 0 | 0.1 | 0 |
Currency translation | (0.4) | 0.1 | (0.8) | 0.3 |
End of period | $ 36.5 | $ 32.3 | $ 36.5 | $ 32.3 |
Receivables - Components of Cur
Receivables - Components of Current Finance and Contract Receivables (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | $ 754.3 | $ 737.9 |
Allowance for credit losses, current | (24.4) | (23) |
Total current finance and contract receivables – net | 729.9 | 714.9 |
Finance Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | 640.6 | 615.3 |
Allowance for credit losses, current | (22.7) | (21.2) |
Total current finance and contract receivables – net | 617.9 | 594.1 |
Finance Receivables | Finance installment receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | 626 | 605.2 |
Allowance for credit losses, current | (22.4) | (21.1) |
Finance Receivables | Finance lease receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unearned finance charges, current | 5.3 | 3.4 |
Finance and contract receivables, current | 14.6 | 10.1 |
Allowance for credit losses, current | (0.3) | (0.1) |
Contract Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | 113.7 | 122.6 |
Allowance for credit losses, current | (1.7) | (1.8) |
Total current finance and contract receivables – net | 112 | 120.8 |
Contract Receivables | Finance installment receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Finance and contract receivables, current | 50.6 | 59.9 |
Allowance for credit losses, current | (0.8) | (0.9) |
Contract Receivables | Finance lease receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unearned finance charges, current | 21.7 | 21.1 |
Finance and contract receivables, current | 63.1 | 62.7 |
Allowance for credit losses, current | $ (0.9) | $ (0.9) |
Receivables - Components of Fin
Receivables - Components of Finance and Contract Receivables Beyond One Year (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | $ 1,772.3 | $ 1,743.6 |
Allowance for credit loss, noncurrent | (53.5) | (51.5) |
Total long-term finance and contract receivables – net | 1,718.8 | 1,692.1 |
Finance Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | 1,349.8 | 1,330.8 |
Allowance for credit loss, noncurrent | (48.4) | (46.6) |
Total long-term finance and contract receivables – net | 1,301.4 | 1,284.2 |
Finance Receivables | Finance installment receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | 1,330.8 | 1,318.5 |
Allowance for credit loss, noncurrent | (48) | (46.4) |
Finance Receivables | Finance lease receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unearned finance charges, noncurrent | 4.4 | 2.8 |
Long-term finance and contract receivables | 19 | 12.3 |
Allowance for credit loss, noncurrent | (0.4) | (0.2) |
Contract Receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | 422.5 | 412.8 |
Allowance for credit loss, noncurrent | (5.1) | (4.9) |
Total long-term finance and contract receivables – net | 417.4 | 407.9 |
Contract Receivables | Finance installment receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Long-term finance and contract receivables | 221.3 | 216 |
Allowance for credit loss, noncurrent | (3.3) | (3.1) |
Contract Receivables | Finance lease receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unearned finance charges, noncurrent | 36.7 | 35.1 |
Long-term finance and contract receivables | 201.2 | 196.8 |
Allowance for credit loss, noncurrent | $ (1.8) | $ (1.8) |
Receivables - Schedule of Perfo
Receivables - Schedule of Performing and Nonperforming Finance and Contract Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Finance Receivables | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | $ 870.6 | $ 870.6 | |||
2023 | 733.9 | 733.9 | |||
2022 | 250.7 | 250.7 | |||
2021 | 90 | 90 | |||
2020 | 36.2 | 36.2 | |||
Prior | 9 | 9 | |||
Total | 1,990.4 | 1,990.4 | $ 1,946.1 | ||
Finance and contract receivables charge-offs year one | 0.2 | ||||
Finance and contract receivables charge-offs year two | 16.7 | ||||
Finance and contract receivables charge-offs year three | 11.3 | ||||
Finance and contract receivables charge-offs year four | 4.9 | ||||
Finance and contract receivables charge-offs year five | 2.7 | ||||
Finance and contract receivables charge-offs more than five years | 1.2 | ||||
Finance and contract receivables charge-offs | 18.7 | $ 13.9 | 37 | $ 28.4 | |
Contract Receivables | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 104 | 104 | |||
2023 | 162.3 | 162.3 | |||
2022 | 106.7 | 106.7 | |||
2021 | 70.5 | 70.5 | |||
2020 | 46.8 | 46.8 | |||
Prior | 45.9 | 45.9 | |||
Total | 536.2 | 536.2 | $ 535.4 | ||
Finance and contract receivables charge-offs year one | 0 | ||||
Finance and contract receivables charge-offs year two | 0.2 | ||||
Finance and contract receivables charge-offs year three | 0.2 | ||||
Finance and contract receivables charge-offs year four | 0.2 | ||||
Finance and contract receivables charge-offs year five | 0.2 | ||||
Finance and contract receivables charge-offs more than five years | 0.2 | ||||
Finance and contract receivables charge-offs | 0.4 | $ 0.4 | 1 | $ 0.9 | |
Delinquent | Finance Receivables | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 5 | 5 | |||
2023 | 25.6 | 25.6 | |||
2022 | 12.9 | 12.9 | |||
2021 | 5.9 | 5.9 | |||
2020 | 3.2 | 3.2 | |||
Prior | 1.7 | 1.7 | |||
Total | 54.3 | 54.3 | |||
Delinquent | Contract Receivables | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 0 | 0 | |||
2023 | 0.4 | 0.4 | |||
2022 | 0.8 | 0.8 | |||
2021 | 0.7 | 0.7 | |||
2020 | 0.5 | 0.5 | |||
Prior | 0.5 | 0.5 | |||
Total | 2.9 | 2.9 | |||
Non-delinquent | Finance Receivables | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 865.6 | 865.6 | |||
2023 | 708.3 | 708.3 | |||
2022 | 237.8 | 237.8 | |||
2021 | 84.1 | 84.1 | |||
2020 | 33 | 33 | |||
Prior | 7.3 | 7.3 | |||
Total | 1,936.1 | 1,936.1 | |||
Non-delinquent | Contract Receivables | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2024 | 104 | 104 | |||
2023 | 161.9 | 161.9 | |||
2022 | 105.9 | 105.9 | |||
2021 | 69.8 | 69.8 | |||
2020 | 46.3 | 46.3 | |||
Prior | 45.4 | 45.4 | |||
Total | $ 533.3 | $ 533.3 |
Receivables - Finance and Contr
Receivables - Finance and Contract Receivables Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Allowances for credit losses: | ||||
Provision for credit losses | $ 35.4 | $ 27.9 | ||
Finance Receivables | ||||
Allowances for credit losses: | ||||
Beginning of period | $ 69.8 | $ 62.7 | 67.8 | 60.9 |
Provision for credit losses | 17.2 | 13.7 | 35.4 | 27.9 |
Charge-offs | (18.7) | (13.9) | (37) | (28.4) |
Recoveries | 2.8 | 2.5 | 5 | 4.6 |
Currency translation | 0 | 0.1 | (0.1) | 0.1 |
End of period | 71.1 | 65.1 | 71.1 | 65.1 |
Contract Receivables | ||||
Allowances for credit losses: | ||||
Beginning of period | 6.8 | 6.5 | 6.7 | 6.6 |
Provision for credit losses | 0.3 | 0.3 | 0.9 | 0.6 |
Charge-offs | (0.4) | (0.4) | (1) | (0.9) |
Recoveries | 0.1 | 0.1 | 0.2 | 0.2 |
Currency translation | 0 | 0 | 0 | 0 |
End of period | $ 6.8 | $ 6.5 | $ 6.8 | $ 6.5 |
Receivables - Aging of Finance
Receivables - Aging of Finance and Contract Receivables (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Finance Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,990.4 | $ 1,946.1 |
Greater Than 90 Days Past Due and Accruing | 18.3 | 19.9 |
Finance Receivables | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 54.3 | 58.3 |
Finance Receivables | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 20.5 | 21.5 |
Finance Receivables | 60-90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12.2 | 13.6 |
Finance Receivables | Greater Than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 21.6 | 23.2 |
Finance Receivables | Total Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,936.1 | 1,887.8 |
Contract Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 536.2 | 535.4 |
Greater Than 90 Days Past Due and Accruing | 0.2 | 0.2 |
Contract Receivables | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2.9 | 3.3 |
Contract Receivables | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1.3 | 1.5 |
Contract Receivables | 60-90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0.6 | 0.6 |
Contract Receivables | Greater Than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1 | 1.2 |
Contract Receivables | Total Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 533.3 | $ 532.1 |
Receivables - Schedule of Finan
Receivables - Schedule of Finance and Contract Receivables on Nonaccrual Status (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Finance Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 11.7 | $ 10.6 |
Contract Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 2.8 | $ 3.3 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories by Major Classification (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 840.8 | $ 874.6 |
Work in progress | 79.5 | 76.1 |
Raw materials | 166.9 | 171.1 |
Total FIFO value | 1,087.2 | 1,121.8 |
Excess of current cost over LIFO cost | (122.2) | (115.9) |
Total inventories – net | $ 965 | $ 1,005.9 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Geographic Valuation Methodologies Of Inventory [Line Items] | |||||
Percentage of FIFO inventory | 59% | 59% | 59% | ||
Effect of LIFO inventory liquidation on income | $ 0 | $ 0 | $ 0 | $ 0 | |
United States | |||||
Geographic Valuation Methodologies Of Inventory [Line Items] | |||||
Percentage of FIFO inventory | 37% | 37% | |||
Percentage of LIFO inventory | 63% | 63% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Millions | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balances | $ 1,097.4 |
Currency translation | (16.3) |
Acquisition adjustments | (13.2) |
Ending balances | 1,067.9 |
Commercial & Industrial Group | |
Goodwill [Roll Forward] | |
Beginning balances | 346.6 |
Currency translation | (10.7) |
Acquisition adjustments | (13.2) |
Ending balances | 322.7 |
Snap-on Tools Group | |
Goodwill [Roll Forward] | |
Beginning balances | 12.4 |
Currency translation | 0 |
Acquisition adjustments | 0 |
Ending balances | 12.4 |
Repair Systems & Information Group | |
Goodwill [Roll Forward] | |
Beginning balances | 738.4 |
Currency translation | (5.6) |
Acquisition adjustments | 0 |
Ending balances | $ 732.8 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | Nov. 01, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 1,067,900,000 | $ 1,067,900,000 | $ 1,097,400,000 | ||||
Acquisition adjustments | (13,200,000) | ||||||
Gross carrying value, finite-lived intangible assets | 511,700,000 | 511,700,000 | 505,200,000 | ||||
Non-amortized trademarks | 140,100,000 | 140,100,000 | 137,400,000 | ||||
Accumulated impairment losses | $ 0 | $ 0 | |||||
Weighted-average amortization period (in years) | 12 years | 12 years | |||||
Aggregate amortization expense | $ 6,400,000 | $ 7,000,000 | $ 12,700,000 | $ 13,900,000 | |||
Estimated annual amortization expense for fiscal period 2024 | 25,100,000 | 25,100,000 | |||||
Estimated annual amortization expense for fiscal period 2025 | 19,600,000 | 19,600,000 | |||||
Estimated annual amortization expense for fiscal period 2026 | 14,500,000 | 14,500,000 | |||||
Estimated annual amortization expense for fiscal period 2027 | 12,200,000 | 12,200,000 | |||||
Estimated annual amortization expense for fiscal period 2028 | 10,600,000 | 10,600,000 | |||||
Estimated annual amortization expense for fiscal period 2029 | 8,000,000 | 8,000,000 | |||||
Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying value, finite-lived intangible assets | $ 220,700,000 | $ 220,700,000 | 214,500,000 | ||||
Weighted-average amortization period (in years) | 14 years | 14 years | |||||
Trademarks | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying value, finite-lived intangible assets | $ 3,900,000 | $ 3,900,000 | $ 4,000,000 | ||||
Weighted-average amortization period (in years) | 9 years | 9 years | |||||
Mountz | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 19,800,000 | $ 19,800,000 | $ 19,800,000 | ||||
Acquisition adjustments | $ 13,200,000 | ||||||
Non-amortized trademarks | 5,400,000 | 5,400,000 | |||||
Mountz | Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying value, finite-lived intangible assets | $ 8,700,000 | $ 8,700,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets by Major Class (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 511.7 | $ 505.2 |
Non-amortized trademarks | 140.1 | 137.4 |
Total other intangible assets | 651.8 | 642.6 |
Accumulated Amortization | (377) | (373.7) |
Net Carrying Value | 134.7 | 131.5 |
Non-amortized trademarks | 140.1 | 137.4 |
Total other intangible assets | 274.8 | 268.9 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 220.7 | 214.5 |
Accumulated Amortization | (166.8) | (163.6) |
Net Carrying Value | 53.9 | 50.9 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 36.1 | 36.2 |
Accumulated Amortization | (31.2) | (29.8) |
Net Carrying Value | 4.9 | 6.4 |
Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 196.8 | 191.3 |
Accumulated Amortization | (153) | (148.2) |
Net Carrying Value | 43.8 | 43.1 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 48.1 | 53 |
Accumulated Amortization | (20.7) | (26.8) |
Net Carrying Value | 27.4 | 26.2 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3.9 | 4 |
Accumulated Amortization | (2.5) | (2.5) |
Net Carrying Value | 1.4 | 1.5 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 6.1 | 6.2 |
Accumulated Amortization | (2.8) | (2.8) |
Net Carrying Value | $ 3.3 | $ 3.4 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Weighted-Average Amortization Period by Major Class (Details) | Jun. 29, 2024 |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average amortization period (in years) | 12 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average amortization period (in years) | 14 years |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average amortization period (in years) | 5 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) | 15 years |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average amortization period (in years) | 9 years |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average amortization period (in years) | 39 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax [Line Items] | ||
Effective income tax rate | 22.40% | 23% |
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 | 900,000 | |
Increase in unrecognized tax benefits | $ 900,000 |
Short-term and Long-term Debt -
Short-term and Long-term Debt - Schedule of Short-term and Long-term Debt (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Schedule Of Debt Instruments [Line Items] | ||
Long term debt | $ 1,200.8 | $ 1,200.2 |
Total long-term debt | 1,185.1 | 1,184.6 |
Less: notes payable | ||
Schedule Of Debt Instruments [Line Items] | ||
Less: notes payable | (15.7) | (15.6) |
Other | ||
Schedule Of Debt Instruments [Line Items] | ||
Long term debt | $ 0.8 | 0.2 |
3.25% unsecured notes due 2027 | Unsecured Debt | ||
Schedule Of Debt Instruments [Line Items] | ||
Unsecured notes, interest rate | 3.25% | |
Long term debt | $ 300 | 300 |
4.10% unsecured notes due 2048 | Unsecured Debt | ||
Schedule Of Debt Instruments [Line Items] | ||
Unsecured notes, interest rate | 4.10% | |
Long term debt | $ 400 | 400 |
3.10% unsecured notes due 2050 | Unsecured Debt | ||
Schedule Of Debt Instruments [Line Items] | ||
Unsecured notes, interest rate | 3.10% | |
Long term debt | $ 500 | $ 500 |
Short-term and Long-term Debt_2
Short-term and Long-term Debt - Narrative (Details) | 6 Months Ended |
Jun. 29, 2024 USD ($) revision | |
Commercial paper borrowings | |
Schedule Of Debt Instruments [Line Items] | |
Short-term debt | $ 0 |
Five-year Multi-Currency Revolving Credit Facility | |
Schedule Of Debt Instruments [Line Items] | |
Revolving credit facility, maximum capacity | 900,000,000 |
Revolving credit facility, outstanding amount | $ 0 |
Number of allowed revisions to debt ratios | revision | 2 |
Debt maturity, term | 5 years |
Actual debt-to-capital ratio | 0.01 |
Actual debt-to-income ratio | 0.03 |
Five-year Multi-Currency Revolving Credit Facility | Line of Credit | |
Schedule Of Debt Instruments [Line Items] | |
Revolving credit facility, maximum capacity | $ 450,000,000 |
Five-year Multi-Currency Revolving Credit Facility | Maximum | |
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 | Maximum | Material Acquisition | |
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 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity forwards in place of common stock associated with its deferred compensation plans (in shares) | 77,600 | |
Treasury locks | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Treasury locks outstanding | $ 0 | $ 0 |
Fair Value Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional amount of interest rate swaps outstanding and designated as fair value hedges | $ 0 | $ 0 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Financial Instruments Not Approximating Carrying Values in Financial Statements (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt and notes payable | $ 1,200.8 | $ 1,200.2 |
Carrying Value | Finance Receivables | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance receivables – net | 1,919.3 | 1,878.3 |
Carrying Value | Contract Receivables | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance receivables – net | 529.4 | 528.7 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt and notes payable | 959.1 | 1,031.5 |
Fair Value | Finance Receivables | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance receivables – net | 2,165.1 | 2,138.7 |
Fair Value | Contract Receivables | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance receivables – net | $ 561.6 | $ 561.6 |
Pension Plans - Net Periodic Pe
Pension Plans - Net Periodic Pension (Benefit) Cost (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 5 | $ 4.5 | $ 10 | $ 9.4 |
Interest cost | 16.4 | 16.4 | 32.8 | 32.7 |
Expected return on plan assets | (25.3) | (26.1) | (50.8) | (52.3) |
Amortization of unrecognized loss | 2.5 | 0.4 | 4.6 | 0.7 |
Net periodic postretirement health care cost | $ (1.4) | $ (4.8) | $ (3.4) | $ (9.5) |
Pension Plans - Narrative (Deta
Pension Plans - Narrative (Details) - Pension Plans, Defined Benefit $ in Millions | Jun. 29, 2024 USD ($) |
Foreign Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future employer contributions | $ 6 |
United States Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future employer contributions | $ 3.7 |
Postretirement Health Care Pl_3
Postretirement Health Care Plans (Details) - Postretirement Health Coverage - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Postretirement Health Care Plans [Line Items] | ||||
Interest cost | $ 0.4 | $ 0.6 | $ 0.9 | $ 1.1 |
Expected return on plan assets | (0.1) | (0.2) | (0.3) | (0.4) |
Amortization of unrecognized gain | (0.3) | (0.3) | (0.6) | (0.6) |
Net periodic postretirement health care cost | $ 0 | $ 0.1 | $ 0 | $ 0.1 |
Stock-based Compensation and _3
Stock-based Compensation and Other Stock Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net stock-based compensation expense | $ 6 | $ 10.2 | $ 15.8 | $ 20.4 |
Cash received from stock purchase and option plan exercises | 23.4 | 51.8 | 51.7 | 84.6 |
Tax benefit realized from exercise and vesting of share-based payment arrangements | $ 1.4 | $ 5.4 | $ 11.1 | $ 10.5 |
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) | 2,080,196 | 2,080,196 |
Stock-based Compensation and _4
Stock-based Compensation and Other Stock Plans - Stock Options Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | 233,000 | ||
Options, weighted-average grant date fair value granted (in dollars per share) | $ 55.07 | $ 51.09 | ||
Intrinsic value of options exercised | $ 5.6 | $ 24.5 | $ 22.7 | $ 47.1 |
Fair value of options vested | $ 9.5 | $ 9.1 | ||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average contractual term (in years) | 10 years | |||
Unrecognized compensation cost related to non-vested award | $ 18.6 | $ 18.6 | ||
Cost expected to be recognized over weighted-average period (in years) | 1 year 10 months 24 days |
Stock-based Compensation and _5
Stock-based Compensation and Other Stock Plans - Stock Options, Summary of Weighted Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Granted (in shares) | 0 | 233,000 | ||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term of stock option (in years) | 3 years 9 months 18 days | 4 years 10 months 24 days | 4 years 10 months 20 days | |
Expected volatility factor | 24.52% | 23.63% | 23.99% | |
Expected dividend yield | 2.48% | 2.76% | 2.60% | |
Risk-free interest rate | 3.63% | 4.30% | 3.99% |
Stock-based Compensation and _6
Stock-based Compensation and Other Stock Plans - Schedule of Changes in Stock Options (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 29, 2024 USD ($) $ / shares shares | Jun. 29, 2024 USD ($) $ / shares shares | |
Shares | ||
Beginning balance (in shares) | shares | 1,916,000 | |
Granted (in shares) | shares | 0 | 233,000 |
Exercised (in shares) | shares | (206,000) | |
Forfeited or expired (in shares) | shares | (26,000) | |
Ending balance (in shares) | shares | 1,917,000 | 1,917,000 |
Exercisable at end of period (in shares) | shares | 1,464,000 | 1,464,000 |
Exercise Price Per Share | ||
Beginning balance (in dollars per share) | $ / shares | $ 177.79 | |
Granted (in dollars per share) | $ / shares | 269.01 | |
Exercised (in dollars per share) | $ / shares | 170.74 | |
Forfeited or expired (in dollars per share) | $ / shares | 243.37 | |
Ending balance (in dollars per share) | $ / shares | $ 188.75 | 188.75 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 169.08 | $ 169.08 |
Remaining Contractual Term and Aggregate Intrinsic Value | ||
Outstanding, remaining contractual term (in years) | 5 years 6 months | |
Exercisable, remaining contractual term (in years) | 4 years 4 months 24 days | |
Outstanding, aggregate intrinsic value | $ | $ 141 | $ 141 |
Exercisable, aggregate intrinsic value | $ | $ 135.1 | $ 135.1 |
Stock-based Compensation and _7
Stock-based Compensation and Other Stock Plans - Performance Share Unit and Restricted Stock Unit Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
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% | |
Performance period | 3 years | |
Weighted-average grant date fair value granted (in dollars per share) | $ 269 | $ 249.26 |
Performance awards shares paid out (in shares) | 137,096 | 60,402 |
Unrecognized compensation cost related to non-vested award | $ 23.1 | |
Cost expected to be recognized over weighted-average period (in years) | 1 year 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 | |
Weighted-average grant date fair value granted (in dollars per share) | $ 269 | $ 249.26 |
Unrecognized compensation cost related to non-vested award | $ 9.5 | |
Cost expected to be recognized over weighted-average period (in years) | 1 year 7 months 6 days | |
Cliff vesting schedule | 3 years |
Stock-based Compensation and _8
Stock-based Compensation and Other Stock Plans - Schedule of Performance Share Unit and Restricted Stock Unit (Details) - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Performance Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 177 | |
Granted (in shares) | 53 | |
Performance assumption change (in shares) | (15) | |
Vested (in shares) | 0 | |
Cancellations and other (in shares) | (6) | |
Ending balance (in shares) | 209 | |
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) | $ 226.81 | |
Granted (in dollars per share) | 269 | $ 249.26 |
Performance assumption change (in dollars per share) | 211.67 | |
Vested (in dollars per share) | 0 | |
Cancellations and other (in dollars per share) | 251.12 | |
Ending balance (in dollars per share) | $ 237.92 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 80 | |
Granted (in shares) | 24 | |
Vested (in shares) | (29) | |
Cancellations and other (in shares) | (2) | |
Ending balance (in shares) | 73 | |
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) | $ 215.84 | |
Granted (in dollars per share) | 269 | $ 249.26 |
Vested (in dollars per share) | 189.89 | |
Cancellations and other (in dollars per share) | 250.50 | |
Ending balance (in dollars per share) | $ 242.27 |
Stock-based Compensation and _9
Stock-based Compensation and Other Stock Plans - Stock Appreciation Rights Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
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) | $ 46.37 | |||
Intrinsic value of stock exercised | $ 0 | $ 0 | $ 0 | $ 400,000 |
Fair value of stock vested | 100,000 | $ 100,000 | ||
Unrecognized compensation cost related to non-vested award | 100,000 | $ 100,000 | ||
Cost expected to be recognized over weighted-average period (in years) | 2 years | |||
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) | $ 52.12 | $ 48.85 | ||
Intrinsic value of stock exercised | 100,000 | $ 2,600,000 | $ 1,400,000 | $ 4,800,000 |
Fair value of stock vested | 2,300,000 | $ 1,900,000 | ||
Unrecognized compensation cost related to non-vested award | $ 4,900,000 | $ 4,900,000 | ||
Cost expected to be recognized over weighted-average period (in years) | 1 year 10 months 24 days |
Stock-based Compensation and_10
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 | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term of stock-settled SARs (in years) | 4 years 2 months 12 days | 4 years 29 days |
Expected volatility factor | 23.80% | 24.68% |
Expected dividend yield | 2.77% | 2.60% |
Risk-free interest rate | 4.22% | 3.87% |
Stock-based Compensation and_11
Stock-based Compensation and Other Stock Plans - Schedule of Changes in Stock-Settled SARs (Details) - Stock-Settled SARs $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 29, 2024 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 | 321 |
Granted (in shares) | shares | 63 |
Exercised (in shares) | shares | (11) |
Forfeited or expired (in shares) | shares | (20) |
Ending balance (in shares) | shares | 353 |
Exercisable at end of period (in shares) | shares | 228 |
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 | $ 189.93 |
Granted (in dollars per share) | $ / shares | 269 |
Exercised (in dollars per share) | $ / shares | 160.40 |
Forfeited or expired (in dollars per share) | $ / shares | 186.61 |
Ending balance (in dollars per share) | $ / shares | 205.08 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 178.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | |
Outstanding, remaining contractual term | 6 years 8 months 12 days |
Exercisable, remaining contractual term | 5 years 6 months |
Outstanding, aggregate intrinsic value | $ | $ 20.4 |
Exercisable, aggregate intrinsic value | $ | $ 18.8 |
Stock-based Compensation and_12
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 | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 10 months 17 days | 3 years 9 months 18 days |
Expected volatility factor | 23.54% | 24.06% |
Expected dividend yield | 2.85% | 2.25% |
Risk-free interest rate | 4.52% | 4.49% |
Stock-based Compensation and_13
Stock-based Compensation and Other Stock Plans - Schedule of Changes in Non-Vested Cash-Settled SARs (Details) - Stock Appreciation Rights (SARs) shares in Thousands | 6 Months Ended |
Jun. 29, 2024 $ / 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 | $ 79.16 |
Granted (in dollars per share) | $ / shares | 46.37 |
Vested (in dollars per share) | $ / shares | 62.37 |
Ending balance (in dollars per share) | $ / shares | $ 50.07 |
Stock-based Compensation and_14
Stock-based Compensation and Other Stock Plans - Restricted Stock Awards, Non-employee Directors Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of stock exercised | $ 0 | $ 0 | $ 0 | $ 400,000 |
Fair value of stock vested | 100,000 | $ 100,000 | ||
Unrecognized compensation cost related to non-vested award | $ 100,000 | $ 100,000 | ||
Cost expected to be recognized over weighted-average period (in years) | 2 years | |||
Granted (in shares) | 1,000 | |||
Restricted Stock | Non Employee Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 5,391 | 5,760 | ||
Vesting period | 1 year |
Stock-based Compensation and_15
Stock-based Compensation and Other Stock Plans - Employee Stock Purchase Plan Narrative (Details) - Employee Stock - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued in period (in shares) | 21,798 | 27,225 | ||
Shares reserved for future issuance (in shares) | 529,800 | 529,800 | ||
Participant contributions held | $ 0.4 | $ 0.4 | ||
Compensation (benefit) expense | $ (0.2) | $ 0.5 | $ 0.1 | $ 1 |
Stock-based Compensation and_16
Stock-based Compensation and Other Stock Plans - Franchise Stock Purchase Plan Narrative (Details) - Franchise Stock - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued in period (in shares) | 42,687 | 46,510 | ||
Shares reserved for future issuance (in shares) | 136,049 | 136,049 | ||
Participant contributions held | $ 1.2 | $ 1.2 | ||
Compensation (benefit) expense | $ (0.6) | $ 0.7 | $ 0.1 | $ 1.6 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding (in shares) | 52,661,542 | 52,956,701 | 52,701,553 | 52,987,935 |
Effect of dilutive securities (in shares) | 834,342 | 1,049,178 | 881,904 | 1,046,880 |
Diluted (in shares) | 53,495,884 | 54,005,879 | 53,583,457 | 54,034,815 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 29, 2024 | Jul. 01, 2023 | |
Stock-Settled SARs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding anti-dilutive options or stock settled SARs (in shares) | 0 | 500 |
Commitments and Contingencies -
Commitments and Contingencies - Product Warranty Accrual Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Warranty reserve: | ||||
Beginning of period | $ 14.9 | $ 14.8 | $ 14.7 | $ 14.3 |
Additions | 3.6 | 4.1 | 7.6 | 7.9 |
Usage | (3.3) | (4) | (7.1) | (7.3) |
End of period | $ 15.2 | $ 14.9 | $ 15.2 | $ 14.9 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 29, 2024 | Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Proceeds from legal settlements | $ 11.2 | $ 22.5 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Finance leases: | ||
Property and equipment - gross | $ 16.6 | $ 19.1 |
Accumulated depreciation | $ (14.7) | $ (16.8) |
Finance lease, right-of-use asset, statement of financial position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Property and equipment - net | $ 1.9 | $ 2.3 |
Finance lease, liability, current, statement of financial position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Other accrued liabilities | $ 1 | $ 1.6 |
Finance lease, liability, noncurrent, statement of financial position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Other long-term liabilities | $ 1 | $ 1.1 |
Total finance lease liabilities | 2 | 2.7 |
Operating leases: | ||
Operating lease right-of-use assets | $ 74.9 | $ 74.7 |
Operating lease, liability, current, statement of financial position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Other accrued liabilities | $ 24.3 | $ 23.8 |
Operating lease liabilities | 54.8 | 54.6 |
Total operating lease liabilities | $ 79.1 | $ 78.4 |
Other Income (Expense) - Net (D
Other Income (Expense) - Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 14.2 | $ 9.9 | $ 27.1 | $ 17.9 |
Net foreign exchange loss | (1.5) | (2.4) | (3.5) | (4.9) |
Net periodic pension and postretirement benefits – non-service | 6.4 | 9.2 | 13.4 | 18.8 |
Other | (0.4) | 0.1 | (0.2) | 0.2 |
Total other income (expense) – net | $ 18.7 | $ 16.8 | $ 36.8 | $ 32 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Net Changes in Accumulated OCI by Component, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 5,163.3 | $ 4,632.4 | $ 5,093.4 | $ 4,503.5 |
Other comprehensive income before reclassifications | 0.2 | 18.3 | ||
Amounts reclassified from Accumulated OCI | (0.3) | (0.7) | ||
Net other comprehensive income (loss) | (11.5) | (0.1) | (55.3) | 17.6 |
Ending balance | 5,308.9 | 4,779.3 | 5,308.9 | 4,779.3 |
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (493.3) | (510.6) | (449.5) | (528.3) |
Other comprehensive income before reclassifications | (12.8) | (57.6) | ||
Amounts reclassified from Accumulated OCI | 1.3 | 2.3 | ||
Net other comprehensive income (loss) | (11.5) | (0.1) | (55.3) | 17.6 |
Ending balance | (504.8) | (510.7) | (504.8) | (510.7) |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (256.6) | (254.4) | (211.8) | (272.5) |
Other comprehensive income before reclassifications | (12.8) | 0.2 | (57.6) | 18.3 |
Amounts reclassified from Accumulated OCI | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) | (12.8) | 0.2 | (57.6) | 18.3 |
Ending balance | (269.4) | (254.2) | (269.4) | (254.2) |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 5.3 | 6.9 | 5.7 | 7.3 |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from Accumulated OCI | (0.4) | (0.4) | (0.8) | (0.8) |
Net other comprehensive income (loss) | (0.4) | (0.4) | (0.8) | (0.8) |
Ending balance | 4.9 | 6.5 | 4.9 | 6.5 |
Defined Benefit Pension and Postretirement Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (242) | (263.1) | (243.4) | (263.1) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from Accumulated OCI | 1.7 | 0.1 | 3.1 | 0.1 |
Net other comprehensive income (loss) | 1.7 | 0.1 | 3.1 | 0.1 |
Ending balance | $ (240.3) | $ (263) | $ (240.3) | $ (263) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Gains on cash flow hedges: | ||||
Interest expense | $ (12.3) | $ (12.6) | $ (24.8) | $ (25) |
Other income (expense) - net | 18.7 | 16.8 | 36.8 | 32 |
Income tax expense | (79.3) | (78.2) | (154.5) | (152.8) |
Net earnings | 277.6 | 269.9 | 547.2 | 524.2 |
Reclassification out of AOCI | ||||
Gains on cash flow hedges: | ||||
Net earnings | (1.3) | 0.3 | (2.3) | 0.7 |
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 |
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: | ||||
Other income (expense) - net | (2.2) | (0.1) | (4) | (0.1) |
Income tax expense | 0.5 | 0 | 0.9 | 0 |
Net earnings | $ (1.7) | $ (0.1) | $ (3.1) | $ (0.1) |
Segments - Schedule of Net Sale
Segments - Schedule of Net Sales by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,279.9 | $ 1,284.7 | $ 2,561.8 | $ 2,560.3 |
Operating earnings | 350.5 | 343.9 | 689.7 | 670 |
Interest expense | (12.3) | (12.6) | (24.8) | (25) |
Other income (expense) – net | 18.7 | 16.8 | 36.8 | 32 |
Earnings before income taxes | 356.9 | 348.1 | 701.7 | 677 |
Total assets from reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating earnings | 360.8 | 373.1 | 714.7 | 731.5 |
Total assets from reportable segments | Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 372 | 364.2 | 731.9 | 728 |
Total assets from reportable segments | Snap-on Tools Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 482 | 523.1 | 982.1 | 1,060.1 |
Total assets from reportable segments | Repair Systems & Information Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 454.8 | 452 | 918.6 | 898.6 |
Total assets from reportable segments | Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 100.5 | 93.4 | 200.1 | 186 |
Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (129.4) | (148) | (270.9) | (312.4) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating earnings | 10.3 | 29.2 | 25 | 61.5 |
Total net sales | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,179.4 | 1,191.3 | 2,361.7 | 2,374.3 |
Operating earnings | 280.3 | 277 | 551.2 | 536.8 |
Total net sales | Total assets from reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,308.8 | 1,339.3 | 2,632.6 | 2,686.7 |
Total net sales | Total assets from reportable segments | Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 372 | 364.2 | 731.9 | 728 |
Operating earnings | 62.2 | 58.1 | 117.6 | 113.9 |
Total net sales | Total assets from reportable segments | Snap-on Tools Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 482 | 523.1 | 982.1 | 1,060.1 |
Operating earnings | 114.8 | 137.7 | 232.1 | 269.4 |
Total net sales | Total assets from reportable segments | Repair Systems & Information Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 454.8 | 452 | 918.6 | 898.6 |
Operating earnings | 113.6 | 110.4 | 226.5 | 215 |
Total net sales | Total assets from reportable segments | Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Total net sales | Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (129.4) | (148) | (270.9) | (312.4) |
Total net sales | Intersegment eliminations | Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 67 | 74.4 | 135.9 | 159.6 |
Total net sales | Intersegment eliminations | Snap-on Tools Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Total net sales | Intersegment eliminations | Repair Systems & Information Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 62.4 | 73.6 | 135 | 152.8 |
Total net sales | Intersegment eliminations | Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Financial services revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 100.5 | 93.4 | 200.1 | 186 |
Operating earnings | 70.2 | 66.9 | 138.5 | 133.2 |
Financial services revenue | Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 100.5 | 93.4 | 200.1 | 186 |
Financial services revenue | Total assets from reportable segments | Commercial & Industrial Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Financial services revenue | Total assets from reportable segments | Snap-on Tools Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Financial services revenue | Total assets from reportable segments | Repair Systems & Information Group | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Financial services revenue | Total assets from reportable segments | Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 100.5 | 93.4 | 200.1 | 186 |
Operating earnings | 70.2 | 66.9 | 138.5 | 133.2 |
Financial services revenue | Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Segments - Schedule of Assets b
Segments - Schedule of Assets by Segment (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Segment Reporting Information [Line Items] | ||
Assets | $ 7,759.9 | $ 7,544.9 |
Total assets from reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 6,341 | 6,345.5 |
Total assets from reportable segments | Commercial & Industrial Group | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,274.3 | 1,293.7 |
Total assets from reportable segments | Snap-on Tools Group | ||
Segment Reporting Information [Line Items] | ||
Assets | 928.6 | 941.8 |
Total assets from reportable segments | Repair Systems & Information Group | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,661.5 | 1,680 |
Total assets from reportable segments | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,476.6 | 2,430 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,508.9 | 1,285 |
Elimination of intersegment receivables | ||
Segment Reporting Information [Line Items] | ||
Assets | $ (90) | $ (85.6) |