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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Snap on Inc | NYSE:SNA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.08 | 0.03% | 267.82 | 269.28 | 266.51 | 268.56 | 46,702 | 16:39:02 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
39-0622040
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
2801 80
th
Street, Kenosha, Wisconsin
|
|
53143
|
(Address of principal executive offices)
|
|
(Zip code)
|
Large accelerated filer
x
|
|
Accelerated filer ☐
|
|
Non-accelerated filer ☐
|
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
Class
|
|
Outstanding at July 13, 2018
|
Common Stock, $1.00 par value
|
|
56,402,181 shares
|
|
|
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Page
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||
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|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Net sales
|
$
|
954.6
|
|
|
$
|
921.4
|
|
|
$
|
1,890.1
|
|
|
$
|
1,808.5
|
|
Cost of goods sold
|
(467.5
|
)
|
|
(458.2
|
)
|
|
(931.4
|
)
|
|
(897.0
|
)
|
||||
Gross profit
|
487.1
|
|
|
463.2
|
|
|
958.7
|
|
|
911.5
|
|
||||
Operating expenses
|
(294.0
|
)
|
|
(279.5
|
)
|
|
(587.9
|
)
|
|
(557.6
|
)
|
||||
Operating earnings before financial services
|
193.1
|
|
|
183.7
|
|
|
370.8
|
|
|
353.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial services revenue
|
82.0
|
|
|
77.7
|
|
|
165.0
|
|
|
154.5
|
|
||||
Financial services expenses
|
(24.2
|
)
|
|
(23.1
|
)
|
|
(50.3
|
)
|
|
(47.4
|
)
|
||||
Operating earnings from financial services
|
57.8
|
|
|
54.6
|
|
|
114.7
|
|
|
107.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating earnings
|
250.9
|
|
|
238.3
|
|
|
485.5
|
|
|
461.0
|
|
||||
Interest expense
|
(12.0
|
)
|
|
(13.0
|
)
|
|
(25.6
|
)
|
|
(25.7
|
)
|
||||
Other income (expense) – net
|
(0.6
|
)
|
|
(1.9
|
)
|
|
2.2
|
|
|
(4.3
|
)
|
||||
Earnings before income taxes and equity earnings
|
238.3
|
|
|
223.4
|
|
|
462.1
|
|
|
431.0
|
|
||||
Income tax expense
|
(55.8
|
)
|
|
(67.3
|
)
|
|
(113.4
|
)
|
|
(129.9
|
)
|
||||
Earnings before equity earnings
|
182.5
|
|
|
156.1
|
|
|
348.7
|
|
|
301.1
|
|
||||
Equity earnings, net of tax
|
0.2
|
|
|
0.7
|
|
|
0.8
|
|
|
0.8
|
|
||||
Net earnings
|
182.7
|
|
|
156.8
|
|
|
349.5
|
|
|
301.9
|
|
||||
Net earnings attributable to noncontrolling interests
|
(4.0
|
)
|
|
(3.6
|
)
|
|
(7.8
|
)
|
|
(7.1
|
)
|
||||
Net earnings attributable to Snap-on Incorporated
|
$
|
178.7
|
|
|
$
|
153.2
|
|
|
$
|
341.7
|
|
|
$
|
294.8
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per share attributable to Snap-on Incorporated:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
3.17
|
|
|
$
|
2.65
|
|
|
$
|
6.04
|
|
|
$
|
5.09
|
|
Diluted
|
3.12
|
|
|
2.60
|
|
|
5.93
|
|
|
4.98
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
56.4
|
|
|
57.8
|
|
|
56.6
|
|
|
57.9
|
|
||||
Effect of dilutive securities
|
0.9
|
|
|
1.2
|
|
|
1.0
|
|
|
1.3
|
|
||||
Diluted
|
57.3
|
|
|
59.0
|
|
|
57.6
|
|
|
59.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share
|
$
|
0.82
|
|
|
$
|
0.71
|
|
|
$
|
1.64
|
|
|
$
|
1.42
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
$
|
182.7
|
|
|
$
|
156.8
|
|
|
$
|
349.5
|
|
|
$
|
301.9
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation*
|
(97.6
|
)
|
|
49.4
|
|
|
(58.5
|
)
|
|
87.5
|
|
||||
Unrealized gain/loss on cash flow hedges, net of tax:
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
6.1
|
|
||||
Reclassification of cash flow hedges to net earnings
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(0.8
|
)
|
|
(0.7
|
)
|
||||
Defined benefit pension and postretirement plans:
|
|
|
|
|
|
|
|
||||||||
Amortization of net unrecognized losses and prior service credits included in net periodic benefit cost
|
8.0
|
|
|
6.7
|
|
|
15.6
|
|
|
13.2
|
|
||||
Income tax benefit
|
(2.0
|
)
|
|
(2.3
|
)
|
|
(3.8
|
)
|
|
(4.6
|
)
|
||||
Net of tax
|
6.0
|
|
|
4.4
|
|
|
11.8
|
|
|
8.6
|
|
||||
Total comprehensive income
|
$
|
90.8
|
|
|
$
|
210.2
|
|
|
$
|
301.2
|
|
|
$
|
403.4
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income attributable to noncontrolling interests
|
(4.0
|
)
|
|
(3.6
|
)
|
|
(7.8
|
)
|
|
(7.1
|
)
|
||||
Comprehensive income attributable to Snap-on Incorporated
|
$
|
86.8
|
|
|
$
|
206.6
|
|
|
$
|
293.4
|
|
|
$
|
396.3
|
|
|
June 30,
2018 |
|
December 30,
2017 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
112.3
|
|
|
$
|
92.0
|
|
Trade and other accounts receivable – net
|
667.1
|
|
|
675.6
|
|
||
Finance receivables – net
|
514.4
|
|
|
505.4
|
|
||
Contract receivables – net
|
87.6
|
|
|
96.8
|
|
||
Inventories – net
|
668.3
|
|
|
638.8
|
|
||
Prepaid expenses and other assets
|
105.7
|
|
|
110.7
|
|
||
Total current assets
|
2,155.4
|
|
|
2,119.3
|
|
||
|
|
|
|
||||
Property and equipment:
|
|
|
|
||||
Land
|
24.1
|
|
|
24.5
|
|
||
Buildings and improvements
|
364.5
|
|
|
357.4
|
|
||
Machinery, equipment and computer software
|
924.5
|
|
|
889.2
|
|
||
|
1,313.1
|
|
|
1,271.1
|
|
||
Accumulated depreciation and amortization
|
(833.7
|
)
|
|
(786.7
|
)
|
||
Property and equipment – net
|
479.4
|
|
|
484.4
|
|
||
|
|
|
|
||||
Deferred income tax assets
|
51.7
|
|
|
52.0
|
|
||
Long-term finance receivables – net
|
1,051.3
|
|
|
1,039.2
|
|
||
Long-term contract receivables – net
|
332.6
|
|
|
322.6
|
|
||
Goodwill
|
911.0
|
|
|
924.1
|
|
||
Other intangibles – net
|
240.9
|
|
|
253.7
|
|
||
Other assets
|
49.7
|
|
|
53.8
|
|
||
Total assets
|
$
|
5,272.0
|
|
|
$
|
5,249.1
|
|
|
June 30,
2018 |
|
December 30,
2017 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Notes payable and current maturities of long-term debt
|
$
|
127.6
|
|
|
$
|
433.2
|
|
Accounts payable
|
198.5
|
|
|
178.2
|
|
||
Accrued benefits
|
44.6
|
|
|
55.8
|
|
||
Accrued compensation
|
68.1
|
|
|
71.5
|
|
||
Franchisee deposits
|
68.7
|
|
|
66.5
|
|
||
Other accrued liabilities
|
419.5
|
|
|
388.1
|
|
||
Total current liabilities
|
927.0
|
|
|
1,193.3
|
|
||
|
|
|
|
||||
Long-term debt
|
945.4
|
|
|
753.6
|
|
||
Deferred income tax liabilities
|
27.2
|
|
|
28.4
|
|
||
Retiree health care benefits
|
34.5
|
|
|
36.0
|
|
||
Pension liabilities
|
117.8
|
|
|
158.9
|
|
||
Other long-term liabilities
|
108.5
|
|
|
106.6
|
|
||
Total liabilities
|
2,160.4
|
|
|
2,276.8
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 14)
|
|
|
|
||||
|
|
|
|
||||
Equity
|
|
|
|
||||
Shareholders’ equity attributable to Snap-on Incorporated:
|
|
|
|
||||
Preferred stock
(authorized 15,000,000 shares of $1 par value; none outstanding)
|
—
|
|
|
—
|
|
||
Common stock
(authorized 250,000,000 shares of $1 par value; issued 67,414,937 and 67,407,704 shares, respectively)
|
67.4
|
|
|
67.4
|
|
||
Additional paid-in capital
|
352.6
|
|
|
343.2
|
|
||
Retained earnings
|
4,018.9
|
|
|
3,772.3
|
|
||
Accumulated other comprehensive loss
|
(377.3
|
)
|
|
(329.0
|
)
|
||
Treasury stock at cost
(11,014,379 and 10,717,455 shares, respectively)
|
(968.4
|
)
|
|
(900.0
|
)
|
||
Total shareholders’ equity attributable to Snap-on Incorporated
|
3,093.2
|
|
|
2,953.9
|
|
||
Noncontrolling interests
|
18.4
|
|
|
18.4
|
|
||
Total equity
|
3,111.6
|
|
|
2,972.3
|
|
||
Total liabilities and equity
|
$
|
5,272.0
|
|
|
$
|
5,249.1
|
|
|
|
Shareholders’ Equity Attributable to Snap-on Incorporated
|
|
|
|
|
||||||||||||||||||||||
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||
Balance at December 30, 2017
|
|
$
|
67.4
|
|
|
$
|
343.2
|
|
|
$
|
3,772.3
|
|
|
$
|
(329.0
|
)
|
|
$
|
(900.0
|
)
|
|
$
|
18.4
|
|
|
$
|
2,972.3
|
|
Net earnings for the six months ended June 30, 2018
|
|
—
|
|
|
—
|
|
|
341.7
|
|
|
—
|
|
|
—
|
|
|
7.8
|
|
|
349.5
|
|
|||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48.3
|
)
|
|
—
|
|
|
—
|
|
|
(48.3
|
)
|
|||||||
Cash dividends – $1.64 per share
|
|
—
|
|
|
—
|
|
|
(92.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(92.8
|
)
|
|||||||
Stock compensation plans
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
—
|
|
|
30.3
|
|
|
—
|
|
|
39.7
|
|
|||||||
Share repurchases – 646,000 shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(98.7
|
)
|
|
—
|
|
|
(98.7
|
)
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
|
(7.8
|
)
|
|
(10.1
|
)
|
|||||||
Balance at June 30, 2018
|
|
$
|
67.4
|
|
|
$
|
352.6
|
|
|
$
|
4,018.9
|
|
|
$
|
(377.3
|
)
|
|
$
|
(968.4
|
)
|
|
$
|
18.4
|
|
|
$
|
3,111.6
|
|
|
|
Shareholders’ Equity Attributable to Snap-on Incorporated
|
|
|
|
|
||||||||||||||||||||||
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||
Balance at December 31, 2016
|
|
$
|
67.4
|
|
|
$
|
317.3
|
|
|
$
|
3,384.9
|
|
|
$
|
(498.5
|
)
|
|
$
|
(653.9
|
)
|
|
$
|
18.0
|
|
|
$
|
2,635.2
|
|
Net earnings for the six months ended July 1, 2017
|
|
—
|
|
|
—
|
|
|
294.8
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
|
301.9
|
|
|||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101.5
|
|
|
—
|
|
|
—
|
|
|
101.5
|
|
|||||||
Cash dividends – $1.42 per share
|
|
—
|
|
|
—
|
|
|
(82.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(82.3
|
)
|
|||||||
Stock compensation plans
|
|
—
|
|
|
19.8
|
|
|
—
|
|
|
—
|
|
|
26.8
|
|
|
—
|
|
|
46.6
|
|
|||||||
Share repurchases – 745,000 shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(122.5
|
)
|
|
—
|
|
|
(122.5
|
)
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
|
(7.4
|
)
|
|||||||
Balance at July 1, 2017
|
|
$
|
67.4
|
|
|
$
|
337.1
|
|
|
$
|
3,597.0
|
|
|
$
|
(397.0
|
)
|
|
$
|
(749.6
|
)
|
|
$
|
18.1
|
|
|
$
|
2,873.0
|
|
|
Six Months Ended
|
||||||
|
June 30,
2018 |
|
July 1,
2017 |
||||
Operating activities:
|
|
|
|
||||
Net earnings
|
$
|
349.5
|
|
|
$
|
301.9
|
|
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
|
|
|
|
||||
Depreciation
|
35.0
|
|
|
32.3
|
|
||
Amortization of other intangibles
|
13.0
|
|
|
13.6
|
|
||
Provision for losses on finance receivables
|
29.4
|
|
|
25.8
|
|
||
Provision for losses on non-finance receivables
|
5.5
|
|
|
4.6
|
|
||
Stock-based compensation expense
|
14.6
|
|
|
14.4
|
|
||
Deferred income tax provision (benefit)
|
(4.1
|
)
|
|
3.1
|
|
||
Loss (gain) on sales of assets
|
0.1
|
|
|
(0.2
|
)
|
||
Settlement of treasury lock
|
—
|
|
|
14.9
|
|
||
Loss on early extinguishment of debt
|
7.8
|
|
|
—
|
|
||
Changes in operating assets and liabilities, net of effects of acquisitions:
|
|
|
|
||||
Increase in trade and other accounts receivable
|
(9.1
|
)
|
|
(26.8
|
)
|
||
Increase in contract receivables
|
(4.5
|
)
|
|
(5.6
|
)
|
||
Increase in inventories
|
(24.5
|
)
|
|
(48.3
|
)
|
||
(Increase) decrease in prepaid and other assets
|
6.4
|
|
|
(9.9
|
)
|
||
Increase in accounts payable
|
25.4
|
|
|
27.7
|
|
||
Decrease in accruals and other liabilities
|
(25.7
|
)
|
|
(28.0
|
)
|
||
Net cash provided by operating activities
|
418.8
|
|
|
319.5
|
|
||
Investing activities:
|
|
|
|
||||
Additions to finance receivables
|
(436.7
|
)
|
|
(458.8
|
)
|
||
Collections of finance receivables
|
379.9
|
|
|
352.9
|
|
||
Capital expenditures
|
(38.6
|
)
|
|
(34.4
|
)
|
||
Acquisitions of businesses, net of cash acquired
|
(3.0
|
)
|
|
(80.2
|
)
|
||
Disposals of property and equipment
|
0.5
|
|
|
0.9
|
|
||
Other
|
(2.9
|
)
|
|
(0.7
|
)
|
||
Net cash used by investing activities
|
(100.8
|
)
|
|
(220.3
|
)
|
||
Financing activities:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
395.4
|
|
|
297.8
|
|
||
Repayments of long-term debt
|
(457.8
|
)
|
|
(150.0
|
)
|
||
Repayment of notes payable
|
(16.8
|
)
|
|
—
|
|
||
Net decrease in other short-term borrowings
|
(37.2
|
)
|
|
(52.7
|
)
|
||
Cash dividends paid
|
(92.8
|
)
|
|
(82.3
|
)
|
||
Purchases of treasury stock
|
(98.7
|
)
|
|
(122.5
|
)
|
||
Proceeds from stock purchase and option plans
|
28.3
|
|
|
34.6
|
|
||
Other
|
(16.2
|
)
|
|
(14.9
|
)
|
||
Net cash used by financing activities
|
(295.8
|
)
|
|
(90.0
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(1.9
|
)
|
|
2.2
|
|
||
Increase in cash and cash equivalents
|
20.3
|
|
|
11.4
|
|
||
Cash and cash equivalents at beginning of year
|
92.0
|
|
|
77.6
|
|
||
Cash and cash equivalents at end of period
|
$
|
112.3
|
|
|
$
|
89.0
|
|
Supplemental cash flow disclosures:
|
|
|
|
||||
Cash paid for interest
|
$
|
(27.8
|
)
|
|
$
|
(24.9
|
)
|
Net cash paid for income taxes
|
(97.4
|
)
|
|
(99.8
|
)
|
|
|
Balance at
|
|
Topic 606
|
|
Opening Balance at
|
||||||
(Amounts in millions)
|
|
December 30, 2017
|
|
Adjustments
|
|
December 31, 2017
|
||||||
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Inventories - net
|
|
$
|
638.8
|
|
|
$
|
20.9
|
|
|
$
|
659.7
|
|
Deferred income tax assets
|
|
52.0
|
|
|
0.6
|
|
|
52.6
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities and Equity
|
|
|
|
|
|
|
||||||
Other accrued liabilities
|
|
$
|
388.1
|
|
|
$
|
23.3
|
|
|
$
|
411.4
|
|
Retained earnings
|
|
3,772.3
|
|
|
(1.8
|
)
|
|
3,770.5
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
(Amounts in millions)
|
|
June 30, 2018
|
|
June 30, 2018
|
||||
|
|
|
|
|
||||
Revenue from contracts with customers
|
|
$
|
949.2
|
|
|
$
|
1,879.6
|
|
Other revenues
|
|
5.4
|
|
|
10.5
|
|
||
Total net sales
|
|
954.6
|
|
|
1,890.1
|
|
||
Financial services revenue
|
|
82.0
|
|
|
165.0
|
|
||
Total revenues
|
|
$
|
1,036.6
|
|
|
$
|
2,055.1
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2018
|
||||||||||||||||||||||
|
|
Commercial &
|
|
Snap-on
|
|
Repair Systems
|
|
|
|
|
|
|
||||||||||||
|
|
Industrial
|
|
Tools
|
|
& Information
|
|
Financial
|
|
|
|
Snap-on
|
||||||||||||
(Amounts in millions)
|
|
Group
|
|
Group
|
|
Group
|
|
Services
|
|
Eliminations
|
|
Incorporated
|
||||||||||||
Net sales by geographic region:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
North America*
|
|
$
|
118.3
|
|
|
$
|
346.2
|
|
|
$
|
189.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
653.9
|
|
Europe
|
|
76.6
|
|
|
43.7
|
|
|
68.2
|
|
|
—
|
|
|
—
|
|
|
188.5
|
|
||||||
All other
|
|
72.2
|
|
|
22.0
|
|
|
18.0
|
|
|
—
|
|
|
—
|
|
|
112.2
|
|
||||||
External net sales
|
|
267.1
|
|
|
411.9
|
|
|
275.6
|
|
|
—
|
|
|
—
|
|
|
954.6
|
|
||||||
Intersegment net sales
|
|
70.7
|
|
|
—
|
|
|
67.5
|
|
|
—
|
|
|
(138.2
|
)
|
|
—
|
|
||||||
Total net sales
|
|
337.8
|
|
|
411.9
|
|
|
343.1
|
|
|
—
|
|
|
(138.2
|
)
|
|
954.6
|
|
||||||
Financial services revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82.0
|
|
|
—
|
|
|
82.0
|
|
||||||
Total revenue
|
|
$
|
337.8
|
|
|
$
|
411.9
|
|
|
$
|
343.1
|
|
|
$
|
82.0
|
|
|
$
|
(138.2
|
)
|
|
$
|
1,036.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2018
|
||||||||||||||||||||||
|
|
Commercial &
|
|
Snap-on
|
|
Repair Systems
|
|
|
|
|
|
|
||||||||||||
|
|
Industrial
|
|
Tools
|
|
& Information
|
|
Financial
|
|
|
|
Snap-on
|
||||||||||||
(Amounts in millions)
|
|
Group
|
|
Group
|
|
Group
|
|
Services
|
|
Eliminations
|
|
Incorporated
|
||||||||||||
Net sales by geographic region:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
North America*
|
|
$
|
225.8
|
|
|
$
|
685.1
|
|
|
$
|
374.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,285.6
|
|
Europe
|
|
159.5
|
|
|
85.2
|
|
|
135.2
|
|
|
—
|
|
|
—
|
|
|
379.9
|
|
||||||
All other
|
|
140.6
|
|
|
46.3
|
|
|
37.7
|
|
|
—
|
|
|
—
|
|
|
224.6
|
|
||||||
External net sales
|
|
525.9
|
|
|
816.6
|
|
|
547.6
|
|
|
—
|
|
|
—
|
|
|
1,890.1
|
|
||||||
Intersegment net sales
|
|
143.5
|
|
|
—
|
|
|
132.5
|
|
|
—
|
|
|
(276.0
|
)
|
|
—
|
|
||||||
Total net sales
|
|
669.4
|
|
|
816.6
|
|
|
680.1
|
|
|
—
|
|
|
(276.0
|
)
|
|
1,890.1
|
|
||||||
Financial services revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165.0
|
|
|
—
|
|
|
165.0
|
|
||||||
Total revenue
|
|
$
|
669.4
|
|
|
$
|
816.6
|
|
|
$
|
680.1
|
|
|
$
|
165.0
|
|
|
$
|
(276.0
|
)
|
|
$
|
2,055.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* North America is comprised of the United States, Canada and Mexico.
|
|
|
For the three months ended June 30, 2018
|
||||||||||||||||||||||
|
|
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
|
|
$
|
25.6
|
|
|
$
|
411.9
|
|
|
$
|
275.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
713.1
|
|
All other professionals
|
|
241.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
241.5
|
|
||||||
External net sales
|
|
267.1
|
|
|
411.9
|
|
|
275.6
|
|
|
—
|
|
|
—
|
|
|
954.6
|
|
||||||
Intersegment net sales
|
|
70.7
|
|
|
—
|
|
|
67.5
|
|
|
—
|
|
|
(138.2
|
)
|
|
—
|
|
||||||
Total net sales
|
|
337.8
|
|
|
411.9
|
|
|
343.1
|
|
|
—
|
|
|
(138.2
|
)
|
|
954.6
|
|
||||||
Financial services revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82.0
|
|
|
—
|
|
|
82.0
|
|
||||||
Total revenue
|
|
$
|
337.8
|
|
|
$
|
411.9
|
|
|
$
|
343.1
|
|
|
$
|
82.0
|
|
|
$
|
(138.2
|
)
|
|
$
|
1,036.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2018
|
||||||||||||||||||||||
|
|
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
|
|
$
|
48.1
|
|
|
$
|
816.6
|
|
|
$
|
547.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,412.3
|
|
All other professionals
|
|
477.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
477.8
|
|
||||||
External net sales
|
|
525.9
|
|
|
816.6
|
|
|
547.6
|
|
|
—
|
|
|
—
|
|
|
1,890.1
|
|
||||||
Intersegment net sales
|
|
143.5
|
|
|
—
|
|
|
132.5
|
|
|
—
|
|
|
(276.0
|
)
|
|
—
|
|
||||||
Total net sales
|
|
669.4
|
|
|
816.6
|
|
|
680.1
|
|
|
—
|
|
|
(276.0
|
)
|
|
1,890.1
|
|
||||||
Financial services revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165.0
|
|
|
—
|
|
|
165.0
|
|
||||||
Total revenue
|
|
$
|
669.4
|
|
|
$
|
816.6
|
|
|
$
|
680.1
|
|
|
$
|
165.0
|
|
|
$
|
(276.0
|
)
|
|
$
|
2,055.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
||||
Trade and other accounts receivable
|
$
|
683.3
|
|
|
$
|
690.2
|
|
Allowances for doubtful accounts
|
(16.2
|
)
|
|
(14.6
|
)
|
||
Total trade and other accounts receivable – net
|
$
|
667.1
|
|
|
$
|
675.6
|
|
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
||||
Finance receivables, net of unearned finance charges of $20.7 million and $21.0 million, respectively
|
$
|
533.4
|
|
|
$
|
523.1
|
|
Contract receivables, net of unearned finance charges of $18.6 million and $17.6 million, respectively
|
88.9
|
|
|
98.1
|
|
||
Total
|
622.3
|
|
|
621.2
|
|
||
Allowances for doubtful accounts:
|
|
|
|
||||
Finance receivables
|
(19.0
|
)
|
|
(17.7
|
)
|
||
Contract receivables
|
(1.3
|
)
|
|
(1.3
|
)
|
||
Total
|
(20.3
|
)
|
|
(19.0
|
)
|
||
Total current finance and contract receivables – net
|
$
|
602.0
|
|
|
$
|
602.2
|
|
|
|
|
|
||||
Finance receivables – net
|
$
|
514.4
|
|
|
$
|
505.4
|
|
Contract receivables – net
|
87.6
|
|
|
96.8
|
|
||
Total current finance and contract receivables – net
|
$
|
602.0
|
|
|
$
|
602.2
|
|
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
||||
Finance receivables, net of unearned finance charges of $16.7 million and $16.7 million, respectively
|
$
|
1,091.3
|
|
|
$
|
1,078.0
|
|
Contract receivables, net of unearned finance charges of $27.6 million and $25.5 million, respectively
|
336.1
|
|
|
325.9
|
|
||
Total
|
1,427.4
|
|
|
1,403.9
|
|
||
Allowances for doubtful accounts:
|
|
|
|
||||
Finance receivables
|
(40.0
|
)
|
|
(38.8
|
)
|
||
Contract receivables
|
(3.5
|
)
|
|
(3.3
|
)
|
||
Total
|
(43.5
|
)
|
|
(42.1
|
)
|
||
Total long-term finance and contract receivables – net
|
$
|
1,383.9
|
|
|
$
|
1,361.8
|
|
|
|
|
|
||||
Finance receivables – net
|
$
|
1,051.3
|
|
|
$
|
1,039.2
|
|
Contract receivables – net
|
332.6
|
|
|
322.6
|
|
||
Total long-term finance and contract receivables – net
|
$
|
1,383.9
|
|
|
$
|
1,361.8
|
|
(Amounts in millions)
|
30-59
Days Past
Due
|
|
60-90
Days Past
Due
|
|
Greater
Than 90
Days Past
Due
|
|
Total Past
Due
|
|
Total Not
Past Due
|
|
Total
|
|
Greater
Than 90
Days Past
Due and
Accruing
|
||||||||||||||
June 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Finance receivables
|
$
|
16.9
|
|
|
$
|
10.6
|
|
|
$
|
16.2
|
|
|
$
|
43.7
|
|
|
$
|
1,581.0
|
|
|
$
|
1,624.7
|
|
|
$
|
12.3
|
|
Contract receivables
|
2.0
|
|
|
0.9
|
|
|
3.5
|
|
|
6.4
|
|
|
418.6
|
|
|
425.0
|
|
|
0.2
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Finance receivables
|
$
|
19.3
|
|
|
$
|
13.9
|
|
|
$
|
20.1
|
|
|
$
|
53.3
|
|
|
$
|
1,547.8
|
|
|
$
|
1,601.1
|
|
|
$
|
15.4
|
|
Contract receivables
|
1.2
|
|
|
0.6
|
|
|
1.9
|
|
|
3.7
|
|
|
420.3
|
|
|
424.0
|
|
|
0.6
|
|
|
June 30, 2018
|
|
December 30, 2017
|
||||||||||||
(Amounts in millions)
|
Finance
Receivables
|
|
Contract
Receivables
|
|
Finance
Receivables
|
|
Contract
Receivables
|
||||||||
Performing
|
$
|
1,600.1
|
|
|
$
|
420.5
|
|
|
$
|
1,573.1
|
|
|
$
|
421.7
|
|
Nonperforming
|
24.6
|
|
|
4.5
|
|
|
28.0
|
|
|
2.3
|
|
||||
Total
|
$
|
1,624.7
|
|
|
$
|
425.0
|
|
|
$
|
1,601.1
|
|
|
$
|
424.0
|
|
(Amounts in millions)
|
June 30, 2018
|
|
December 30,
2017 |
||||
Finance receivables
|
$
|
12.3
|
|
|
$
|
12.6
|
|
Contract receivables
|
4.3
|
|
|
1.7
|
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended
June 30, 2018 |
||||||||||||
(Amounts in millions)
|
Finance
Receivables
|
|
Contract
Receivables
|
|
Finance
Receivables
|
|
Contract
Receivables
|
||||||||
Allowances for doubtful accounts:
|
|
|
|
|
|
|
|
||||||||
Beginning of period
|
$
|
58.3
|
|
|
$
|
4.6
|
|
|
$
|
56.5
|
|
|
$
|
4.6
|
|
Provision
|
13.6
|
|
|
0.6
|
|
|
29.4
|
|
|
1.1
|
|
||||
Charge-offs
|
(14.6
|
)
|
|
(0.5
|
)
|
|
(30.4
|
)
|
|
(1.1
|
)
|
||||
Recoveries
|
1.7
|
|
|
0.1
|
|
|
3.6
|
|
|
0.2
|
|
||||
Currency translation
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
||||
End of period
|
$
|
59.0
|
|
|
$
|
4.8
|
|
|
$
|
59.0
|
|
|
$
|
4.8
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
July 1, 2017 |
|
Six Months Ended
July 1, 2017 |
||||||||||||
(Amounts in millions)
|
Finance
Receivables
|
|
Contract
Receivables
|
|
Finance
Receivables
|
|
Contract
Receivables
|
||||||||
Allowances for doubtful accounts:
|
|
|
|
|
|
|
|
||||||||
Beginning of period
|
$
|
50.5
|
|
|
$
|
4.7
|
|
|
$
|
48.6
|
|
|
$
|
3.9
|
|
Provision
|
12.8
|
|
|
0.6
|
|
|
25.8
|
|
|
1.9
|
|
||||
Charge-offs
|
(12.5
|
)
|
|
(0.6
|
)
|
|
(25.4
|
)
|
|
(1.2
|
)
|
||||
Recoveries
|
1.7
|
|
|
—
|
|
|
3.4
|
|
|
0.1
|
|
||||
Currency translation
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
End of period
|
$
|
52.5
|
|
|
$
|
4.8
|
|
|
$
|
52.5
|
|
|
$
|
4.8
|
|
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
||||
Finished goods
|
$
|
566.9
|
|
|
$
|
541.9
|
|
Work in progress
|
50.7
|
|
|
49.3
|
|
||
Raw materials
|
127.1
|
|
|
122.7
|
|
||
Total FIFO value
|
744.7
|
|
|
713.9
|
|
||
Excess of current cost over LIFO cost
|
(76.4
|
)
|
|
(75.1
|
)
|
||
Total inventories – net
|
$
|
668.3
|
|
|
$
|
638.8
|
|
(Amounts in millions)
|
Commercial
& Industrial
Group
|
|
Snap-on
Tools Group
|
|
Repair Systems
& Information
Group
|
|
Total
|
||||||||
Balance as of December 30, 2017
|
$
|
298.4
|
|
|
$
|
12.5
|
|
|
$
|
613.2
|
|
|
$
|
924.1
|
|
Currency translation
|
(10.7
|
)
|
|
—
|
|
|
(6.5
|
)
|
|
(17.2
|
)
|
||||
Acquisitions and related adjustments
|
4.1
|
|
|
—
|
|
|
—
|
|
|
4.1
|
|
||||
Balance as of June 30, 2018
|
$
|
291.8
|
|
|
$
|
12.5
|
|
|
$
|
606.7
|
|
|
$
|
911.0
|
|
|
June 30, 2018
|
|
December 30, 2017
|
||||||||||||
(Amounts in millions)
|
Gross Carrying
Value
|
|
Accumulated
Amortization
|
|
Gross Carrying
Value
|
|
Accumulated
Amortization
|
||||||||
Amortized other intangible assets:
|
|
|
|
|
|
|
|
||||||||
Customer relationships
|
$
|
173.3
|
|
|
$
|
(103.0
|
)
|
|
$
|
175.2
|
|
|
$
|
(98.2
|
)
|
Developed technology
|
18.7
|
|
|
(18.4
|
)
|
|
18.9
|
|
|
(18.4
|
)
|
||||
Internally developed software
|
181.1
|
|
|
(139.8
|
)
|
|
177.0
|
|
|
(133.4
|
)
|
||||
Patents
|
34.4
|
|
|
(22.7
|
)
|
|
34.1
|
|
|
(22.7
|
)
|
||||
Trademarks
|
3.0
|
|
|
(1.9
|
)
|
|
3.0
|
|
|
(2.0
|
)
|
||||
Other
|
7.7
|
|
|
(2.9
|
)
|
|
7.7
|
|
|
(2.7
|
)
|
||||
Total
|
418.2
|
|
|
(288.7
|
)
|
|
415.9
|
|
|
(277.4
|
)
|
||||
Non-amortized trademarks
|
111.4
|
|
|
—
|
|
|
115.2
|
|
|
—
|
|
||||
Total other intangible assets
|
$
|
529.6
|
|
|
$
|
(288.7
|
)
|
|
$
|
531.1
|
|
|
$
|
(277.4
|
)
|
|
In Years
|
Customer relationships
|
15
|
Developed technology
|
3
|
Internally developed software
|
4
|
Patents
|
8
|
Trademarks
|
6
|
Other
|
39
|
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
||||
4.25% unsecured notes due 2018
|
$
|
—
|
|
|
$
|
250.0
|
|
6.70% unsecured notes due 2019
|
—
|
|
|
200.0
|
|
||
6.125% unsecured notes due 2021
|
250.0
|
|
|
250.0
|
|
||
3.25% unsecured notes due 2027
|
300.0
|
|
|
300.0
|
|
||
4.10% unsecured notes due 2048
|
400.0
|
|
|
—
|
|
||
Other debt*
|
123.0
|
|
|
186.8
|
|
||
|
1,073.0
|
|
|
1,186.8
|
|
||
Less: notes payable and current maturities of long-term debt:
|
|
|
|
||||
Current maturities of long-term debt
|
—
|
|
|
(250.0
|
)
|
||
Commercial paper borrowings
|
(115.5
|
)
|
|
(151.0
|
)
|
||
Other notes
|
(12.1
|
)
|
|
(32.2
|
)
|
||
|
(127.6
|
)
|
|
(433.2
|
)
|
||
Total long-term debt
|
$
|
945.4
|
|
|
$
|
753.6
|
|
|
|
|
|
*
|
Includes fair value adjustments related to interest rate swaps, debt discounts and debt issuance costs.
|
|
June 30, 2018
|
|
December 30, 2017
|
||||||||||||
(Amounts in millions)
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
Finance receivables – net
|
$
|
1,565.7
|
|
|
$
|
1,806.3
|
|
|
$
|
1,544.6
|
|
|
$
|
1,791.5
|
|
Contract receivables – net
|
420.2
|
|
|
458.0
|
|
|
419.4
|
|
|
459.1
|
|
||||
Long-term debt, notes payable and current maturities of long-term debt
|
1,073.0
|
|
|
1,085.4
|
|
|
1,186.8
|
|
|
1,235.6
|
|
•
|
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 and current maturities of long-term debt were 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 adjustments related to fair value hedges. 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.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Service cost
|
$
|
6.1
|
|
|
$
|
5.3
|
|
|
$
|
12.6
|
|
|
$
|
11.2
|
|
Interest cost
|
13.2
|
|
|
13.9
|
|
|
26.4
|
|
|
27.9
|
|
||||
Expected return on plan assets
|
(22.2
|
)
|
|
(20.9
|
)
|
|
(43.9
|
)
|
|
(41.0
|
)
|
||||
Amortization of unrecognized loss
|
8.4
|
|
|
7.0
|
|
|
16.4
|
|
|
13.9
|
|
||||
Amortization of prior service credit
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.6
|
)
|
|
(0.6
|
)
|
||||
Net periodic pension cost
|
$
|
5.2
|
|
|
$
|
5.0
|
|
|
$
|
10.9
|
|
|
$
|
11.4
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Interest cost
|
$
|
0.4
|
|
|
$
|
0.5
|
|
|
$
|
0.9
|
|
|
$
|
1.0
|
|
Expected return on plan assets
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||
Amortization of unrecognized gain
|
(0.1
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
||||
Net periodic postretirement health care cost
|
$
|
0.1
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.5
|
|
|
Six Months Ended
|
||
|
June 30,
2018 |
|
July 1,
2017 |
Expected term of option
(in years)
|
5.35
|
|
5.15
|
Expected volatility factor
|
20.08%
|
|
22.01%
|
Expected dividend yield
|
1.68%
|
|
1.63%
|
Risk-free interest rate
|
2.71%
|
|
1.78%
|
|
Shares
(in thousands)
|
|
Exercise
Price Per
Share*
|
|
Remaining
Contractual
Term*
(in years)
|
|
Aggregate
Intrinsic
Value
(in millions)
|
|||||
Outstanding at December 30, 2017
|
3,198
|
|
|
$
|
115.30
|
|
|
|
|
|
||
Granted
|
515
|
|
|
161.18
|
|
|
|
|
|
|||
Exercised
|
(244
|
)
|
|
73.33
|
|
|
|
|
|
|||
Forfeited or expired
|
(34
|
)
|
|
159.17
|
|
|
|
|
|
|||
Outstanding at June 30, 2018
|
3,435
|
|
|
124.72
|
|
|
6.6
|
|
$
|
128.8
|
|
|
Exercisable at June 30, 2018
|
2,340
|
|
|
108.26
|
|
|
5.5
|
|
124.4
|
|
|
|
|
*
|
Weighted-average
|
|
|
Shares
(in thousands)
|
|
Fair Value
Price per
Share*
|
|||
Non-vested performance awards at December 30, 2017
|
132
|
|
|
$
|
149.93
|
|
Granted
|
93
|
|
|
160.25
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Cancellations and other
|
(7
|
)
|
|
158.90
|
|
|
Non-vested performance awards at June 30, 2018
|
218
|
|
|
154.06
|
|
|
|
|
*
|
Weighted-average
|
|
|
Six Months Ended
|
||
|
June 30,
2018 |
|
July 1,
2017 |
Expected term of stock-settled SARs
(in years)
|
3.58
|
|
3.99
|
Expected volatility factor
|
20.08%
|
|
19.39%
|
Expected dividend yield
|
1.63%
|
|
1.46%
|
Risk-free interest rate
|
2.40%
|
|
1.55%
|
|
Stock-settled
SARs
(in thousands)
|
|
Exercise
Price Per
Share*
|
|
Remaining
Contractual
Term*
(in years)
|
|
Aggregate
Intrinsic
Value
(in millions)
|
|||||
Outstanding at December 30, 2017
|
360
|
|
|
$
|
138.63
|
|
|
|
|
|
||
Granted
|
89
|
|
|
161.18
|
|
|
|
|
|
|||
Exercised
|
(8
|
)
|
|
101.87
|
|
|
|
|
|
|||
Forfeited or expired
|
(21
|
)
|
|
131.42
|
|
|
|
|
|
|||
Outstanding at June 30, 2018
|
420
|
|
|
144.43
|
|
|
7.7
|
|
$
|
7.7
|
|
|
Exercisable at June 30, 2018
|
238
|
|
|
132.55
|
|
|
6.7
|
|
7.0
|
|
|
|
|
*
|
Weighted-average
|
|
|
Six Months Ended
|
||
|
June 30,
2018 |
|
July 1,
2017 |
Expected term of cash-settled SARs
(in years)
|
3.26
|
|
3.62
|
Expected volatility factor
|
20.54%
|
|
19.56%
|
Expected dividend yield
|
1.67%
|
|
1.55%
|
Risk-free interest rate
|
2.63%
|
|
1.55%
|
|
Cash-settled
SARs
(in thousands)
|
|
Fair Value
Price per
Share*
|
|||
Non-vested cash-settled SARs at December 30, 2017
|
5
|
|
|
$
|
35.41
|
|
Granted
|
1
|
|
|
24.26
|
|
|
Vested
|
(3
|
)
|
|
24.30
|
|
|
Non-vested cash-settled SARs at June 30, 2018
|
3
|
|
|
23.94
|
|
|
|
|
*
|
Weighted-average
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||
Weighted-average common shares outstanding
|
56,429,715
|
|
|
57,790,299
|
|
|
56,540,611
|
|
|
57,865,481
|
|
Effect of dilutive securities
|
912,347
|
|
|
1,223,560
|
|
|
1,013,034
|
|
|
1,303,683
|
|
Weighted-average common shares outstanding, assuming dilution
|
57,342,062
|
|
|
59,013,859
|
|
|
57,553,645
|
|
|
59,169,164
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Warranty reserve:
|
|
|
|
|
|
|
|
||||||||
Beginning of period
|
$
|
17.5
|
|
|
$
|
17.1
|
|
|
$
|
17.2
|
|
|
$
|
16.0
|
|
Additions
|
4.1
|
|
|
5.6
|
|
|
7.9
|
|
|
9.3
|
|
||||
Usage
|
(4.1
|
)
|
|
(3.8
|
)
|
|
(7.6
|
)
|
|
(6.4
|
)
|
||||
End of period
|
$
|
17.5
|
|
|
$
|
18.9
|
|
|
$
|
17.5
|
|
|
$
|
18.9
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Interest income
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
Net foreign exchange loss
|
(0.3
|
)
|
|
(2.0
|
)
|
|
(2.4
|
)
|
|
(3.7
|
)
|
||||
Net periodic pension and postretirement benefits (costs) – non-service
|
0.8
|
|
|
—
|
|
|
1.4
|
|
|
(0.7
|
)
|
||||
Settlement of treasury lock
|
—
|
|
|
—
|
|
|
13.3
|
|
|
—
|
|
||||
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
(7.8
|
)
|
|
—
|
|
||||
Other
|
(1.3
|
)
|
|
—
|
|
|
(2.6
|
)
|
|
(0.1
|
)
|
||||
Total other income (expense) – net
|
$
|
(0.6
|
)
|
|
$
|
(1.9
|
)
|
|
$
|
2.2
|
|
|
$
|
(4.3
|
)
|
(Amounts in millions)
|
Foreign
Currency
Translation
|
|
Cash Flow
Hedges
|
|
Defined
Benefit
Pension and
Postretirement
Plans
|
|
Total
|
||||||||
Balance as of March 31, 2018
|
$
|
(43.4
|
)
|
|
$
|
13.2
|
|
|
$
|
(255.2
|
)
|
|
$
|
(285.4
|
)
|
Other comprehensive loss before reclassifications
|
(97.6
|
)
|
|
—
|
|
|
—
|
|
|
(97.6
|
)
|
||||
Amounts reclassified from Accumulated OCI
|
—
|
|
|
(0.3
|
)
|
|
6.0
|
|
|
5.7
|
|
||||
Net other comprehensive income (loss)
|
(97.6
|
)
|
|
(0.3
|
)
|
|
6.0
|
|
|
(91.9
|
)
|
||||
Balance as of June 30, 2018
|
$
|
(141.0
|
)
|
|
$
|
12.9
|
|
|
$
|
(249.2
|
)
|
|
$
|
(377.3
|
)
|
(Amounts in millions)
|
Foreign
Currency
Translation
|
|
Cash Flow
Hedges
|
|
Defined
Benefit
Pension and
Postretirement
Plans
|
|
Total
|
||||||||
Balance as of December 30, 2017
|
$
|
(82.5
|
)
|
|
$
|
14.5
|
|
|
$
|
(261.0
|
)
|
|
$
|
(329.0
|
)
|
Other comprehensive loss before reclassifications
|
(58.5
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
(59.3
|
)
|
||||
Amounts reclassified from Accumulated OCI
|
—
|
|
|
(0.8
|
)
|
|
11.8
|
|
|
11.0
|
|
||||
Net other comprehensive income (loss)
|
(58.5
|
)
|
|
(1.6
|
)
|
|
11.8
|
|
|
(48.3
|
)
|
||||
Balance as of June 30, 2018
|
$
|
(141.0
|
)
|
|
$
|
12.9
|
|
|
$
|
(249.2
|
)
|
|
$
|
(377.3
|
)
|
(Amounts in millions)
|
Foreign
Currency
Translation
|
|
Cash Flow
Hedges
|
|
Defined
Benefit
Pension and
Postretirement
Plans
|
|
Total
|
||||||||
Balance as of April 1, 2017
|
$
|
(179.6
|
)
|
|
$
|
15.0
|
|
|
$
|
(285.8
|
)
|
|
$
|
(450.4
|
)
|
Other comprehensive income before reclassifications
|
49.4
|
|
|
—
|
|
|
—
|
|
|
49.4
|
|
||||
Amounts reclassified from Accumulated OCI
|
—
|
|
|
(0.4
|
)
|
|
4.4
|
|
|
4.0
|
|
||||
Net other comprehensive income (loss)
|
49.4
|
|
|
(0.4
|
)
|
|
4.4
|
|
|
53.4
|
|
||||
Balance as of July 1, 2017
|
$
|
(130.2
|
)
|
|
$
|
14.6
|
|
|
$
|
(281.4
|
)
|
|
$
|
(397.0
|
)
|
(Amounts in millions)
|
Foreign
Currency
Translation
|
|
Cash Flow
Hedges
|
|
Defined
Benefit
Pension and
Postretirement
Plans
|
|
Total
|
||||||||
Balance as of December 31, 2016
|
$
|
(217.7
|
)
|
|
$
|
9.2
|
|
|
$
|
(290.0
|
)
|
|
$
|
(498.5
|
)
|
Other comprehensive income before reclassifications
|
87.5
|
|
|
6.1
|
|
|
—
|
|
|
93.6
|
|
||||
Amounts reclassified from Accumulated OCI
|
—
|
|
|
(0.7
|
)
|
|
8.6
|
|
|
7.9
|
|
||||
Net other comprehensive income
|
87.5
|
|
|
5.4
|
|
|
8.6
|
|
|
101.5
|
|
||||
Balance as of July 1, 2017
|
$
|
(130.2
|
)
|
|
$
|
14.6
|
|
|
$
|
(281.4
|
)
|
|
$
|
(397.0
|
)
|
|
|
Amount Reclassified from Accumulated OCI
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
||||||||||||
|
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
|
Statement of Earnings
Presentation
|
||||||||
(Amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Treasury locks
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
|
$
|
0.8
|
|
|
$
|
0.7
|
|
|
Interest expense
|
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Income tax expense
|
||||
Net of tax
|
|
0.3
|
|
|
0.4
|
|
|
0.8
|
|
|
0.7
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net unrecognized losses and prior service credits
|
|
(8.0
|
)
|
|
(6.7
|
)
|
|
(15.6
|
)
|
|
(13.2
|
)
|
|
See footnote below*
|
||||
Income tax benefit
|
|
2.0
|
|
|
2.3
|
|
|
3.8
|
|
|
4.6
|
|
|
Income tax expense
|
||||
Net of tax
|
|
(6.0
|
)
|
|
(4.4
|
)
|
|
(11.8
|
)
|
|
(8.6
|
)
|
|
|
||||
Total reclassifications for the period, net of tax
|
|
$
|
(5.7
|
)
|
|
$
|
(4.0
|
)
|
|
$
|
(11.0
|
)
|
|
$
|
(7.9
|
)
|
|
|
|
|
|
*
|
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 further information.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Net sales:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial Group
|
$
|
337.8
|
|
|
$
|
310.0
|
|
|
$
|
669.4
|
|
|
$
|
608.7
|
|
Snap-on Tools Group
|
411.9
|
|
|
413.8
|
|
|
816.6
|
|
|
823.2
|
|
||||
Repair Systems & Information Group
|
343.1
|
|
|
338.1
|
|
|
680.1
|
|
|
656.9
|
|
||||
Segment net sales
|
1,092.8
|
|
|
1,061.9
|
|
|
2,166.1
|
|
|
2,088.8
|
|
||||
Intersegment eliminations
|
(138.2
|
)
|
|
(140.5
|
)
|
|
(276.0
|
)
|
|
(280.3
|
)
|
||||
Total net sales
|
$
|
954.6
|
|
|
$
|
921.4
|
|
|
$
|
1,890.1
|
|
|
$
|
1,808.5
|
|
Financial Services revenue
|
82.0
|
|
|
77.7
|
|
|
165.0
|
|
|
154.5
|
|
||||
Total revenues
|
$
|
1,036.6
|
|
|
$
|
999.1
|
|
|
$
|
2,055.1
|
|
|
$
|
1,963.0
|
|
Operating earnings:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial Group
|
$
|
49.0
|
|
|
$
|
43.0
|
|
|
$
|
95.5
|
|
|
$
|
84.9
|
|
Snap-on Tools Group
|
79.0
|
|
|
80.7
|
|
|
147.9
|
|
|
151.0
|
|
||||
Repair Systems & Information Group
|
88.7
|
|
|
82.2
|
|
|
174.5
|
|
|
161.3
|
|
||||
Financial Services
|
57.8
|
|
|
54.6
|
|
|
114.7
|
|
|
107.1
|
|
||||
Segment operating earnings
|
274.5
|
|
|
260.5
|
|
|
532.6
|
|
|
504.3
|
|
||||
Corporate
|
(23.6
|
)
|
|
(22.2
|
)
|
|
(47.1
|
)
|
|
(43.3
|
)
|
||||
Operating earnings
|
$
|
250.9
|
|
|
$
|
238.3
|
|
|
$
|
485.5
|
|
|
$
|
461.0
|
|
Interest expense
|
(12.0
|
)
|
|
(13.0
|
)
|
|
(25.6
|
)
|
|
(25.7
|
)
|
||||
Other income (expense) – net
|
(0.6
|
)
|
|
(1.9
|
)
|
|
2.2
|
|
|
(4.3
|
)
|
||||
Earnings before income taxes and equity earnings
|
$
|
238.3
|
|
|
$
|
223.4
|
|
|
$
|
462.1
|
|
|
$
|
431.0
|
|
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
||||
Assets:
|
|
|
|
||||
Commercial & Industrial Group
|
$
|
1,087.4
|
|
|
$
|
1,113.9
|
|
Snap-on Tools Group
|
746.7
|
|
|
714.3
|
|
||
Repair Systems & Information Group
|
1,289.0
|
|
|
1,314.3
|
|
||
Financial Services
|
1,988.4
|
|
|
1,971.8
|
|
||
Total assets from reportable segments
|
$
|
5,111.5
|
|
|
$
|
5,114.3
|
|
Corporate
|
225.1
|
|
|
200.6
|
|
||
Elimination of intersegment receivables
|
(64.6
|
)
|
|
(65.8
|
)
|
||
Total assets
|
$
|
5,272.0
|
|
|
$
|
5,249.1
|
|
|
|
Three Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
Net sales
|
|
$
|
954.6
|
|
|
100.0
|
%
|
|
$
|
921.4
|
|
|
100.0
|
%
|
|
$
|
33.2
|
|
|
3.6
|
%
|
Cost of goods sold
|
|
(467.5
|
)
|
|
(49.0
|
)%
|
|
(458.2
|
)
|
|
(49.7
|
)%
|
|
(9.3
|
)
|
|
(2.0
|
)%
|
|||
Gross profit
|
|
487.1
|
|
|
51.0
|
%
|
|
463.2
|
|
|
50.3
|
%
|
|
23.9
|
|
|
5.2
|
%
|
|||
Operating expenses
|
|
(294.0
|
)
|
|
(30.8
|
)%
|
|
(279.5
|
)
|
|
(30.4
|
)%
|
|
(14.5
|
)
|
|
(5.2
|
)%
|
|||
Operating earnings before financial services
|
|
193.1
|
|
|
20.2
|
%
|
|
183.7
|
|
|
19.9
|
%
|
|
9.4
|
|
|
5.1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Financial services revenue
|
|
82.0
|
|
|
100.0
|
%
|
|
77.7
|
|
|
100.0
|
%
|
|
4.3
|
|
|
5.5
|
%
|
|||
Financial services expenses
|
|
(24.2
|
)
|
|
(29.5
|
)%
|
|
(23.1
|
)
|
|
(29.7
|
)%
|
|
(1.1
|
)
|
|
(4.8
|
)%
|
|||
Operating earnings from financial services
|
|
57.8
|
|
|
70.5
|
%
|
|
54.6
|
|
|
70.3
|
%
|
|
3.2
|
|
|
5.9
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating earnings
|
|
250.9
|
|
|
24.2
|
%
|
|
238.3
|
|
|
23.9
|
%
|
|
12.6
|
|
|
5.3
|
%
|
|||
Interest expense
|
|
(12.0
|
)
|
|
(1.1
|
)%
|
|
(13.0
|
)
|
|
(1.3
|
)%
|
|
1.0
|
|
|
7.7
|
%
|
|||
Other income (expense) – net
|
|
(0.6
|
)
|
|
(0.1
|
)%
|
|
(1.9
|
)
|
|
(0.2
|
)%
|
|
1.3
|
|
|
NM
|
|
|||
Earnings before income taxes and equity earnings
|
|
238.3
|
|
|
23.0
|
%
|
|
223.4
|
|
|
22.4
|
%
|
|
14.9
|
|
|
6.7
|
%
|
|||
Income tax expense
|
|
(55.8
|
)
|
|
(5.4
|
)%
|
|
(67.3
|
)
|
|
(6.8
|
)%
|
|
11.5
|
|
|
17.1
|
%
|
|||
Earnings before equity earnings
|
|
182.5
|
|
|
17.6
|
%
|
|
156.1
|
|
|
15.6
|
%
|
|
26.4
|
|
|
16.9
|
%
|
|||
Equity earnings, net of tax
|
|
0.2
|
|
|
—
|
|
|
0.7
|
|
|
0.1
|
%
|
|
(0.5
|
)
|
|
NM
|
|
|||
Net earnings
|
|
182.7
|
|
|
17.6
|
%
|
|
156.8
|
|
|
15.7
|
%
|
|
25.9
|
|
|
16.5
|
%
|
|||
Net earnings attributable to noncontrolling interests
|
|
(4.0
|
)
|
|
(0.4
|
)%
|
|
(3.6
|
)
|
|
(0.4
|
)%
|
|
(0.4
|
)
|
|
(11.1
|
)%
|
|||
Net earnings attributable to Snap-on Inc.
|
|
$
|
178.7
|
|
|
17.2
|
%
|
|
$
|
153.2
|
|
|
15.3
|
%
|
|
$
|
25.5
|
|
|
16.6
|
%
|
NM: Not meaningful
|
|
|
|
Percentage Disclosure: All income statement line item percentages below “Operating earnings from financial services” are calculated as a percentage of the sum of Net sales and Financial services revenue.
|
|
|
Six Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
Net sales
|
|
$
|
1,890.1
|
|
|
100.0
|
%
|
|
$
|
1,808.5
|
|
|
100.0
|
%
|
|
$
|
81.6
|
|
|
4.5
|
%
|
Cost of goods sold
|
|
(931.4
|
)
|
|
(49.3
|
)%
|
|
(897.0
|
)
|
|
(49.6
|
)%
|
|
(34.4
|
)
|
|
(3.8
|
)%
|
|||
Gross profit
|
|
958.7
|
|
|
50.7
|
%
|
|
911.5
|
|
|
50.4
|
%
|
|
47.2
|
|
|
5.2
|
%
|
|||
Operating expenses
|
|
(587.9
|
)
|
|
(31.1
|
)%
|
|
(557.6
|
)
|
|
(30.8
|
)%
|
|
(30.3
|
)
|
|
(5.4
|
)%
|
|||
Operating earnings before financial services
|
|
370.8
|
|
|
19.6
|
%
|
|
353.9
|
|
|
19.6
|
%
|
|
16.9
|
|
|
4.8
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Financial services revenue
|
|
165.0
|
|
|
100.0
|
%
|
|
154.5
|
|
|
100.0
|
%
|
|
10.5
|
|
|
6.8
|
%
|
|||
Financial services expenses
|
|
(50.3
|
)
|
|
(30.5
|
)%
|
|
(47.4
|
)
|
|
(30.7
|
)%
|
|
(2.9
|
)
|
|
(6.1
|
)%
|
|||
Operating earnings from financial services
|
|
114.7
|
|
|
69.5
|
%
|
|
107.1
|
|
|
69.3
|
%
|
|
7.6
|
|
|
7.1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating earnings
|
|
485.5
|
|
|
23.6
|
%
|
|
461.0
|
|
|
23.5
|
%
|
|
24.5
|
|
|
5.3
|
%
|
|||
Interest expense
|
|
(25.6
|
)
|
|
(1.2
|
)%
|
|
(25.7
|
)
|
|
(1.3
|
)%
|
|
0.1
|
|
|
0.4
|
%
|
|||
Other income (expense) – net
|
|
2.2
|
|
|
0.1
|
%
|
|
(4.3
|
)
|
|
(0.2
|
)%
|
|
6.5
|
|
|
NM
|
|
|||
Earnings before income taxes and equity earnings
|
|
462.1
|
|
|
22.5
|
%
|
|
431.0
|
|
|
22.0
|
%
|
|
31.1
|
|
|
7.2
|
%
|
|||
Income tax expense
|
|
(113.4
|
)
|
|
(5.5
|
)%
|
|
(129.9
|
)
|
|
(6.6
|
)%
|
|
16.5
|
|
|
12.7
|
%
|
|||
Earnings before equity earnings
|
|
348.7
|
|
|
17.0
|
%
|
|
301.1
|
|
|
15.4
|
%
|
|
47.6
|
|
|
15.8
|
%
|
|||
Equity earnings, net of tax
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|||
Net earnings
|
|
349.5
|
|
|
17.0
|
%
|
|
301.9
|
|
|
15.4
|
%
|
|
47.6
|
|
|
15.8
|
%
|
|||
Net earnings attributable to noncontrolling interests
|
|
(7.8
|
)
|
|
(0.4
|
)%
|
|
(7.1
|
)
|
|
(0.4
|
)%
|
|
(0.7
|
)
|
|
(9.9
|
)%
|
|||
Net earnings attributable to Snap-on Inc.
|
|
$
|
341.7
|
|
|
16.6
|
%
|
|
$
|
294.8
|
|
|
15.0
|
%
|
|
$
|
46.9
|
|
|
15.9
|
%
|
NM: Not meaningful
|
|
|
|
|
|
|
|
|
|
Percentage Disclosure: All income statement line item percentages below “Operating earnings from financial services” are calculated as a percentage of the sum of Net sales and Financial services revenue.
|
|
|
Three Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
External net sales
|
|
$
|
267.1
|
|
|
79.1
|
%
|
|
$
|
236.5
|
|
|
76.3
|
%
|
|
$
|
30.6
|
|
|
12.9
|
%
|
Intersegment net sales
|
|
70.7
|
|
|
20.9
|
%
|
|
73.5
|
|
|
23.7
|
%
|
|
(2.8
|
)
|
|
(3.8
|
)%
|
|||
Segment net sales
|
|
337.8
|
|
|
100.0
|
%
|
|
310.0
|
|
|
100.0
|
%
|
|
27.8
|
|
|
9.0
|
%
|
|||
Cost of goods sold
|
|
(204.8
|
)
|
|
(60.6
|
)%
|
|
(189.1
|
)
|
|
(61.0
|
)%
|
|
(15.7
|
)
|
|
(8.3
|
)%
|
|||
Gross profit
|
|
133.0
|
|
|
39.4
|
%
|
|
120.9
|
|
|
39.0
|
%
|
|
12.1
|
|
|
10.0
|
%
|
|||
Operating expenses
|
|
(84.0
|
)
|
|
(24.9
|
)%
|
|
(77.9
|
)
|
|
(25.1
|
)%
|
|
(6.1
|
)
|
|
(7.8
|
)%
|
|||
Segment operating earnings
|
|
$
|
49.0
|
|
|
14.5
|
%
|
|
$
|
43.0
|
|
|
13.9
|
%
|
|
$
|
6.0
|
|
|
14.0
|
%
|
|
|
Six Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
External net sales
|
|
$
|
525.9
|
|
|
78.6
|
%
|
|
$
|
462.1
|
|
|
75.9
|
%
|
|
$
|
63.8
|
|
|
13.8
|
%
|
Intersegment net sales
|
|
143.5
|
|
|
21.4
|
%
|
|
146.6
|
|
|
24.1
|
%
|
|
(3.1
|
)
|
|
(2.1
|
)%
|
|||
Segment net sales
|
|
669.4
|
|
|
100.0
|
%
|
|
608.7
|
|
|
100.0
|
%
|
|
60.7
|
|
|
10.0
|
%
|
|||
Cost of goods sold
|
|
(407.1
|
)
|
|
(60.8
|
)%
|
|
(371.1
|
)
|
|
(61.0
|
)%
|
|
(36.0
|
)
|
|
(9.7
|
)%
|
|||
Gross profit
|
|
$
|
262.3
|
|
|
39.2
|
%
|
|
237.6
|
|
|
39.0
|
%
|
|
24.7
|
|
|
10.4
|
%
|
||
Operating expenses
|
|
(166.8
|
)
|
|
(24.9
|
)%
|
|
(152.7
|
)
|
|
(25.1
|
)%
|
|
(14.1
|
)
|
|
(9.2
|
)%
|
|||
Segment operating earnings
|
|
95.5
|
|
|
14.3
|
%
|
|
$
|
84.9
|
|
|
13.9
|
%
|
|
$
|
10.6
|
|
|
12.5
|
%
|
|
|
Three Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
Segment net sales
|
|
$
|
411.9
|
|
|
100.0
|
%
|
|
$
|
413.8
|
|
|
100.0
|
%
|
|
$
|
(1.9
|
)
|
|
(0.5
|
)%
|
Cost of goods sold
|
|
(222.7
|
)
|
|
(54.1
|
)%
|
|
(230.2
|
)
|
|
(55.6
|
)%
|
|
7.5
|
|
|
3.3
|
%
|
|||
Gross profit
|
|
189.2
|
|
|
45.9
|
%
|
|
183.6
|
|
|
44.4
|
%
|
|
5.6
|
|
|
3.1
|
%
|
|||
Operating expenses
|
|
(110.2
|
)
|
|
(26.7
|
)%
|
|
(102.9
|
)
|
|
(24.9
|
)%
|
|
(7.3
|
)
|
|
(7.1
|
)%
|
|||
Segment operating earnings
|
|
$
|
79.0
|
|
|
19.2
|
%
|
|
$
|
80.7
|
|
|
19.5
|
%
|
|
$
|
(1.7
|
)
|
|
(2.1
|
)%
|
|
|
Six Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
Segment net sales
|
|
$
|
816.6
|
|
|
100.0
|
%
|
|
$
|
823.2
|
|
|
100.0
|
%
|
|
$
|
(6.6
|
)
|
|
(0.8
|
)%
|
Cost of goods sold
|
|
(447.1
|
)
|
|
(54.8
|
)%
|
|
(462.5
|
)
|
|
(56.2
|
)%
|
|
15.4
|
|
|
3.3
|
%
|
|||
Gross profit
|
|
369.5
|
|
|
45.2
|
%
|
|
360.7
|
|
|
43.8
|
%
|
|
8.8
|
|
|
2.4
|
%
|
|||
Operating expenses
|
|
(221.6
|
)
|
|
(27.1
|
)%
|
|
(209.7
|
)
|
|
(25.5
|
)%
|
|
(11.9
|
)
|
|
(5.7
|
)%
|
|||
Segment operating earnings
|
|
$
|
147.9
|
|
|
18.1
|
%
|
|
$
|
151.0
|
|
|
18.3
|
%
|
|
$
|
(3.1
|
)
|
|
(2.1
|
)%
|
|
|
Three Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
External net sales
|
|
$
|
275.6
|
|
|
80.3
|
%
|
|
$
|
271.1
|
|
|
80.2
|
%
|
|
$
|
4.5
|
|
|
1.7
|
%
|
Intersegment net sales
|
|
67.5
|
|
|
19.7
|
%
|
|
67.0
|
|
|
19.8
|
%
|
|
0.5
|
|
|
0.7
|
%
|
|||
Segment net sales
|
|
343.1
|
|
|
100.0
|
%
|
|
338.1
|
|
|
100.0
|
%
|
|
5.0
|
|
|
1.5
|
%
|
|||
Cost of goods sold
|
|
(178.2
|
)
|
|
(51.9
|
)%
|
|
(179.4
|
)
|
|
(53.1
|
)%
|
|
1.2
|
|
|
0.7
|
%
|
|||
Gross profit
|
|
164.9
|
|
|
48.1
|
%
|
|
158.7
|
|
|
46.9
|
%
|
|
6.2
|
|
|
3.9
|
%
|
|||
Operating expenses
|
|
(76.2
|
)
|
|
(22.2
|
)%
|
|
(76.5
|
)
|
|
(22.6
|
)%
|
|
0.3
|
|
|
0.4
|
%
|
|||
Segment operating earnings
|
|
$
|
88.7
|
|
|
25.9
|
%
|
|
$
|
82.2
|
|
|
24.3
|
%
|
|
$
|
6.5
|
|
|
7.9
|
%
|
|
|
Six Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
External net sales
|
|
$
|
547.6
|
|
|
80.5
|
%
|
|
$
|
523.2
|
|
|
79.6
|
%
|
|
$
|
24.4
|
|
|
4.7
|
%
|
Intersegment net sales
|
|
132.5
|
|
|
19.5
|
%
|
|
133.7
|
|
|
20.4
|
%
|
|
(1.2
|
)
|
|
(0.9
|
)%
|
|||
Segment net sales
|
|
680.1
|
|
|
100.0
|
%
|
|
656.9
|
|
|
100.0
|
%
|
|
23.2
|
|
|
3.5
|
%
|
|||
Cost of goods sold
|
|
(353.2
|
)
|
|
(51.9
|
)%
|
|
(343.7
|
)
|
|
(52.3
|
)%
|
|
(9.5
|
)
|
|
(2.8
|
)%
|
|||
Gross profit
|
|
326.9
|
|
|
48.1
|
%
|
|
313.2
|
|
|
47.7
|
%
|
|
13.7
|
|
|
4.4
|
%
|
|||
Operating expenses
|
|
(152.4
|
)
|
|
(22.4
|
)%
|
|
(151.9
|
)
|
|
(23.1
|
)%
|
|
(0.5
|
)
|
|
(0.3
|
)%
|
|||
Segment operating earnings
|
|
$
|
174.5
|
|
|
25.7
|
%
|
|
$
|
161.3
|
|
|
24.6
|
%
|
|
$
|
13.2
|
|
|
8.2
|
%
|
|
|
Three Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
Financial services revenue
|
|
$
|
82.0
|
|
|
100.0
|
%
|
|
$
|
77.7
|
|
|
100.0
|
%
|
|
$
|
4.3
|
|
|
5.5
|
%
|
Financial services expenses
|
|
(24.2
|
)
|
|
(29.5
|
)%
|
|
(23.1
|
)
|
|
(29.7
|
)%
|
|
(1.1
|
)
|
|
(4.8
|
)%
|
|||
Segment operating earnings
|
|
$
|
57.8
|
|
|
70.5
|
%
|
|
$
|
54.6
|
|
|
70.3
|
%
|
|
$
|
3.2
|
|
|
5.9
|
%
|
|
|
Six Months Ended
|
|||||||||||||||||||
(Amounts in millions)
|
|
June 30, 2018
|
|
July 1, 2017
|
|
Change
|
|||||||||||||||
Financial services revenue
|
|
$
|
165.0
|
|
|
100.0
|
%
|
|
$
|
154.5
|
|
|
100.0
|
%
|
|
$
|
10.5
|
|
|
6.8
|
%
|
Financial services expenses
|
|
(50.3
|
)
|
|
(30.5
|
)%
|
|
(47.4
|
)
|
|
(30.7
|
)%
|
|
(2.9
|
)
|
|
(6.1
|
)%
|
|||
Segment operating earnings
|
|
$
|
114.7
|
|
|
69.5
|
%
|
|
$
|
107.1
|
|
|
69.3
|
%
|
|
$
|
7.6
|
|
|
7.1
|
%
|
|
Operations*
|
|
Financial Services
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Net sales
|
$
|
954.6
|
|
|
$
|
921.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cost of goods sold
|
(467.5
|
)
|
|
(458.2
|
)
|
|
—
|
|
|
—
|
|
||||
Gross profit
|
487.1
|
|
|
463.2
|
|
|
—
|
|
|
—
|
|
||||
Operating expenses
|
(294.0
|
)
|
|
(279.5
|
)
|
|
—
|
|
|
—
|
|
||||
Operating earnings before financial services
|
193.1
|
|
|
183.7
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial services revenue
|
—
|
|
|
—
|
|
|
82.0
|
|
|
77.7
|
|
||||
Financial services expenses
|
—
|
|
|
—
|
|
|
(24.2
|
)
|
|
(23.1
|
)
|
||||
Operating earnings from financial services
|
—
|
|
|
—
|
|
|
57.8
|
|
|
54.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating earnings
|
193.1
|
|
|
183.7
|
|
|
57.8
|
|
|
54.6
|
|
||||
Interest expense
|
(11.9
|
)
|
|
(12.9
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||||
Intersegment interest income (expense) – net
|
17.2
|
|
|
17.9
|
|
|
(17.2
|
)
|
|
(17.9
|
)
|
||||
Other income (expense) – net
|
(0.7
|
)
|
|
(1.9
|
)
|
|
0.1
|
|
|
—
|
|
||||
Earnings before income taxes and equity earnings
|
197.7
|
|
|
186.8
|
|
|
40.6
|
|
|
36.6
|
|
||||
Income tax expense
|
(45.2
|
)
|
|
(53.7
|
)
|
|
(10.6
|
)
|
|
(13.6
|
)
|
||||
Earnings before equity earnings
|
152.5
|
|
|
133.1
|
|
|
30.0
|
|
|
23.0
|
|
||||
Financial services – net earnings attributable to Snap-on
|
30.0
|
|
|
23.0
|
|
|
—
|
|
|
—
|
|
||||
Equity earnings, net of tax
|
0.2
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
||||
Net earnings
|
182.7
|
|
|
156.8
|
|
|
30.0
|
|
|
23.0
|
|
||||
Net earnings attributable to noncontrolling interests
|
(4.0
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
||||
Net earnings attributable to Snap-on
|
$
|
178.7
|
|
|
$
|
153.2
|
|
|
$
|
30.0
|
|
|
$
|
23.0
|
|
|
Operations*
|
|
Financial Services
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
July 1,
2017 |
|
June 30,
2018 |
|
July 1,
2017 |
||||||||
Net sales
|
$
|
1,890.1
|
|
|
$
|
1,808.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cost of goods sold
|
(931.4
|
)
|
|
(897.0
|
)
|
|
—
|
|
|
—
|
|
||||
Gross profit
|
958.7
|
|
|
911.5
|
|
|
—
|
|
|
—
|
|
||||
Operating expenses
|
(587.9
|
)
|
|
(557.6
|
)
|
|
—
|
|
|
—
|
|
||||
Operating earnings before financial services
|
370.8
|
|
|
353.9
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial services revenue
|
—
|
|
|
—
|
|
|
165.0
|
|
|
154.5
|
|
||||
Financial services expenses
|
—
|
|
|
—
|
|
|
(50.3
|
)
|
|
(47.4
|
)
|
||||
Operating earnings from financial services
|
—
|
|
|
—
|
|
|
114.7
|
|
|
107.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating earnings
|
370.8
|
|
|
353.9
|
|
|
114.7
|
|
|
107.1
|
|
||||
Interest expense
|
(25.4
|
)
|
|
(25.5
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||
Intersegment interest income (expense) – net
|
36.1
|
|
|
35.4
|
|
|
(36.1
|
)
|
|
(35.4
|
)
|
||||
Other income (expense) – net
|
2.1
|
|
|
(4.3
|
)
|
|
0.1
|
|
|
—
|
|
||||
Earnings before income taxes and equity earnings
|
383.6
|
|
|
359.5
|
|
|
78.5
|
|
|
71.5
|
|
||||
Income tax expense
|
(93.0
|
)
|
|
(103.4
|
)
|
|
(20.4
|
)
|
|
(26.5
|
)
|
||||
Earnings before equity earnings
|
290.6
|
|
|
256.1
|
|
|
58.1
|
|
|
45.0
|
|
||||
Financial services – net earnings attributable to Snap-on
|
58.1
|
|
|
45.0
|
|
|
—
|
|
|
—
|
|
||||
Equity earnings, net of tax
|
0.8
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
||||
Net earnings
|
349.5
|
|
|
301.9
|
|
|
58.1
|
|
|
45.0
|
|
||||
Net earnings attributable to noncontrolling interests
|
(7.8
|
)
|
|
(7.1
|
)
|
|
—
|
|
|
—
|
|
||||
Net earnings attributable to Snap-on
|
$
|
341.7
|
|
|
$
|
294.8
|
|
|
$
|
58.1
|
|
|
$
|
45.0
|
|
|
Operations*
|
|
Financial Services
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
|
June 30,
2018 |
|
December 30,
2017 |
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
112.3
|
|
|
$
|
91.8
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
Intersegment receivables
|
18.2
|
|
|
17.1
|
|
|
—
|
|
|
—
|
|
||||
Trade and other accounts receivable – net
|
666.5
|
|
|
674.9
|
|
|
0.6
|
|
|
0.7
|
|
||||
Finance receivables – net
|
—
|
|
|
—
|
|
|
514.4
|
|
|
505.4
|
|
||||
Contract receivables – net
|
6.8
|
|
|
9.4
|
|
|
80.8
|
|
|
87.4
|
|
||||
Inventories – net
|
668.3
|
|
|
638.8
|
|
|
—
|
|
|
—
|
|
||||
Prepaid expenses and other assets
|
112.5
|
|
|
117.6
|
|
|
0.8
|
|
|
0.7
|
|
||||
Total current assets
|
1,584.6
|
|
|
1,549.6
|
|
|
596.6
|
|
|
594.4
|
|
||||
Property and equipment – net
|
477.6
|
|
|
482.4
|
|
|
1.8
|
|
|
2.0
|
|
||||
Investment in Financial Services
|
320.0
|
|
|
317.4
|
|
|
—
|
|
|
—
|
|
||||
Deferred income tax assets
|
33.7
|
|
|
25.2
|
|
|
18.0
|
|
|
26.8
|
|
||||
Intersegment long-term notes receivable
|
654.3
|
|
|
583.7
|
|
|
—
|
|
|
—
|
|
||||
Long-term finance receivables – net
|
—
|
|
|
—
|
|
|
1,051.3
|
|
|
1,039.2
|
|
||||
Long-term contract receivables – net
|
12.0
|
|
|
13.2
|
|
|
320.6
|
|
|
309.4
|
|
||||
Goodwill
|
911.0
|
|
|
924.1
|
|
|
—
|
|
|
—
|
|
||||
Other intangibles – net
|
240.9
|
|
|
253.7
|
|
|
—
|
|
|
—
|
|
||||
Other assets
|
59.2
|
|
|
63.1
|
|
|
0.1
|
|
|
—
|
|
||||
Total assets
|
$
|
4,293.3
|
|
|
$
|
4,212.4
|
|
|
$
|
1,988.4
|
|
|
$
|
1,971.8
|
|
|
Operations*
|
|
Financial Services
|
||||||||||||
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
|
June 30,
2018 |
|
December 30,
2017 |
||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||||
Notes payable and current maturities of long-term debt
|
$
|
127.6
|
|
|
$
|
183.2
|
|
|
$
|
—
|
|
|
$
|
250.0
|
|
Accounts payable
|
197.5
|
|
|
177.1
|
|
|
1.0
|
|
|
1.1
|
|
||||
Intersegment payables
|
—
|
|
|
—
|
|
|
18.2
|
|
|
17.1
|
|
||||
Accrued benefits
|
44.6
|
|
|
55.8
|
|
|
—
|
|
|
—
|
|
||||
Accrued compensation
|
65.4
|
|
|
67.8
|
|
|
2.7
|
|
|
3.7
|
|
||||
Franchisee deposits
|
68.7
|
|
|
66.5
|
|
|
—
|
|
|
—
|
|
||||
Other accrued liabilities
|
396.2
|
|
|
366.0
|
|
|
30.9
|
|
|
29.7
|
|
||||
Total current liabilities
|
900.0
|
|
|
916.4
|
|
|
52.8
|
|
|
301.6
|
|
||||
Long-term debt and intersegment long-term
|
—
|
|
|
—
|
|
|
1,599.7
|
|
|
1,337.3
|
|
||||
Deferred income tax liabilities
|
27.2
|
|
|
28.4
|
|
|
—
|
|
|
—
|
|
||||
Retiree health care benefits
|
34.5
|
|
|
36.0
|
|
|
—
|
|
|
—
|
|
||||
Pension liabilities
|
117.8
|
|
|
158.9
|
|
|
—
|
|
|
—
|
|
||||
Other long-term liabilities
|
102.2
|
|
|
100.4
|
|
|
15.9
|
|
|
15.5
|
|
||||
Total liabilities
|
1,181.7
|
|
|
1,240.1
|
|
|
1,668.4
|
|
|
1,654.4
|
|
||||
Total shareholders’ equity attributable to Snap-on Inc.
|
3,093.2
|
|
|
2,953.9
|
|
|
320.0
|
|
|
317.4
|
|
||||
Noncontrolling interests
|
18.4
|
|
|
18.4
|
|
|
—
|
|
|
—
|
|
||||
Total equity
|
3,111.6
|
|
|
2,972.3
|
|
|
320.0
|
|
|
317.4
|
|
||||
Total liabilities and equity
|
$
|
4,293.3
|
|
|
$
|
4,212.4
|
|
|
$
|
1,988.4
|
|
|
$
|
1,971.8
|
|
(Amounts in millions)
|
June 30,
2018 |
|
December 30,
2017 |
||||
Cash and cash equivalents
|
$
|
112.3
|
|
|
$
|
92.0
|
|
Trade and other accounts receivable – net
|
667.1
|
|
|
675.6
|
|
||
Finance receivables – net
|
514.4
|
|
|
505.4
|
|
||
Contract receivables – net
|
87.6
|
|
|
96.8
|
|
||
Inventories – net
|
668.3
|
|
|
638.8
|
|
||
Prepaid expenses and other assets
|
105.7
|
|
|
110.7
|
|
||
Total current assets
|
2,155.4
|
|
|
2,119.3
|
|
||
|
|
|
|
||||
Notes payable and current maturities of long-term debt
|
(127.6
|
)
|
|
(433.2
|
)
|
||
Accounts payable
|
(198.5
|
)
|
|
(178.2
|
)
|
||
Other current liabilities
|
(600.9
|
)
|
|
(581.9
|
)
|
||
Total current liabilities
|
(927.0
|
)
|
|
(1,193.3
|
)
|
||
Total working capital
|
$
|
1,228.4
|
|
|
$
|
926.0
|
|
Period
|
|
Shares
purchased
|
|
Average
price
per share
|
|
Shares
purchased as part of
publicly announced
plans or programs
|
|
Approximate
value of shares
that may yet be
purchased under
publicly
announced plans
or programs
*
|
04/01/18 to 04/28/18
|
|
85,000
|
|
$146.71
|
|
85,000
|
|
$360.3 million
|
04/29/18 to 05/26/18
|
|
196,000
|
|
$148.02
|
|
196,000
|
|
$342.2 million
|
05/27/18 to 06/30/18
|
|
90,000
|
|
$152.02
|
|
90,000
|
|
$345.1 million
|
Total/Average
|
|
371,000
|
|
$148.69
|
|
371,000
|
|
N/A
|
N/A: Not applicable
|
|
•
|
In 1996, the Board authorized the company to repurchase shares of the company’s common stock from time to time in the open market or in privately negotiated transactions (“the 1996 Authorization”). The 1996 Authorization allows the repurchase of up to the number of shares issued or delivered from treasury from time to time under the various plans the company has in place that call for the issuance of the company’s common stock. Because the number of shares that are purchased pursuant to the 1996 Authorization will change from time to time as (i) the company issues shares under its various plans; and (ii) shares are repurchased pursuant to this authorization, the number of shares authorized to be repurchased will vary from time to time. The 1996 Authorization will expire when terminated by the Board. When calculating the approximate value of shares that the company may yet purchase under the 1996 Authorization, the company assumed a price of $
147.23
, $
151.23
and $
160.72
per share of common stock as of the end of the respective fiscal
2018
months ended
April 28, 2018
,
May 26, 2018
, and
June 30, 2018
.
|
•
|
In 2017, the Board authorized the repurchase of an aggregate of up to $500 million of the company’s common stock (“the 2017 Authorization”). The 2017 Authorization will expire when the aggregate repurchase price limit is met, unless terminated earlier by the Board.
|
Period
|
|
Shares
purchased
|
|
Average
price
per share
|
04/01/18 to 04/28/18
|
|
—
|
|
—
|
04/29/18 to 05/26/18
|
|
17,000
|
|
$146.76
|
05/27/18 to 06/30/18
|
|
—
|
|
—
|
Total/Average
|
|
17,000
|
|
$146.76
|
Item 6: Exhibits
|
|
|
|
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
Exhibit 101.INS
|
|
XBRL Instance Document*
|
|
|
|
Exhibit 101.SCH
|
|
XBRL Taxonomy Extension Schema Document*
|
|
|
|
Exhibit 101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document*
|
|
|
|
Exhibit 101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document*
|
|
|
|
Exhibit 101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document*
|
|
|
|
Exhibit 101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document*
|
|
|
|
SNAP-ON INCORPORATED
|
Date:
July 19, 2018
|
/s/ Aldo J. Pagliari
|
|
Aldo J. Pagliari, Principal Financial Officer,
|
|
Senior Vice President – Finance and
|
|
Chief Financial Officer
|
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