| Schedule of New Accounting Pronouncements and Changes in Accounting Principles |
The effects of the adjustments to the Condensed Consolidated Statements of Earnings as a result of the adoption of ASU No. 2017-07 for the three and nine month periods ended September 30, 2017, are as follows: | | | | | | | | | | | | | | | | | | | | | | | | |
| For the three months ended September 30, 2017 |
| For the nine months ended September 30, 2017 |
| As |
| Adjusted |
|
|
| As |
| Adjusted |
|
|
| Previously |
| for ASU |
| As |
| Previously |
| for ASU |
| As | (Amounts in millions) | Reported |
| No. 2017-07 |
| Adjusted |
| Reported |
| No. 2017-07 |
| Adjusted |
|
|
|
|
|
|
|
|
|
|
|
| Net sales | $ | 903.8 |
|
| $ | — |
|
| $ | 903.8 |
|
| $ | 2,712.3 |
|
| $ | — |
|
| $ | 2,712.3 |
| Cost of goods sold | (455.2 | ) |
| 0.2 |
|
| (455.0 | ) |
| (1,352.7 | ) |
| 0.7 |
|
| (1,352.0 | ) | Gross profit | 448.6 |
|
| 0.2 |
|
| 448.8 |
|
| 1,359.6 |
|
| 0.7 |
|
| 1,360.3 |
| Operating expenses | (295.5 | ) |
| (0.6 | ) |
| (296.1 | ) |
| (853.3 | ) |
| (0.4 | ) |
| (853.7 | ) | Operating earnings before financial services | 153.1 |
|
| (0.4 | ) |
| 152.7 |
|
| 506.3 |
|
| 0.3 |
|
| 506.6 |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating earnings from financial services | 56.0 |
|
| — |
|
| 56.0 |
|
| 163.1 |
|
| — |
|
| 163.1 |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating earnings | 209.1 |
|
| (0.4 | ) |
| 208.7 |
|
| 669.4 |
|
| 0.3 |
|
| 669.7 |
| Interest expense | (13.1 | ) |
| — |
|
| (13.1 | ) |
| (38.8 | ) |
| — |
|
| (38.8 | ) | Other income (expense) - net | (2.1 | ) |
| 0.4 |
|
| (1.7 | ) |
| (5.7 | ) |
| (0.3 | ) |
| (6.0 | ) | Earnings before income taxes and equity earnings | $ | 193.9 |
|
| $ | — |
|
| $ | 193.9 |
|
| $ | 624.9 |
|
| $ | — |
|
| $ | 624.9 |
|
Furthermore, the effects of the adjustments to the Consolidated Statements of Earnings as a result of the adoption of ASU No. 2017-07 for the fiscal years ended December 30, 2017, and December 31, 2016, are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | 2017 | | 2016 | | As | | Adjusted | | | | As | | Adjusted | | | | Previously | | for ASU | | As | | Previously | | for ASU | | As | (Amounts in millions) | Reported | | No. 2017-07 | | Adjusted | | Reported | | No. 2017-07 | | Adjusted | | | | | | | | | | | | | Net sales | $ | 3,686.9 |
| | $ | — |
| | $ | 3,686.9 |
| | $ | 3,430.4 |
| | $ | — |
| | $ | 3,430.4 |
| Cost of goods sold | (1,862.0 | ) | | 1.0 |
| | (1,861.0 | ) | | (1,720.8 | ) | | 0.8 |
| | (1,720.0 | ) | Gross profit | 1,824.9 |
| | 1.0 |
| | 1,825.9 |
| | 1,709.6 |
| | 0.8 |
| | 1,710.4 |
| Operating expenses | (1,160.9 | ) | | (0.4 | ) | | (1,161.3 | ) | | (1,054.1 | ) | | 6.1 |
| | (1,048.0 | ) | Operating earnings before financial services | 664.0 |
| | 0.6 |
| | 664.6 |
| | 655.5 |
| | 6.9 |
| | 662.4 |
| |
| |
| |
| |
| |
| |
| Operating earnings from financial services | 217.5 |
| | — |
| | 217.5 |
| | 198.7 |
| | — |
| | 198.7 |
| |
| |
| |
| |
| |
| |
| Operating earnings | 881.5 |
| | 0.6 |
| | 882.1 |
| | 854.2 |
| | 6.9 |
| | 861.1 |
| Interest expense | (52.4 | ) | | — |
| | (52.4 | ) | | (52.2 | ) | | — |
| | (52.2 | ) | Other income (expense) - net | (7.2 | ) | | (0.6 | ) | | (7.8 | ) | | (0.6 | ) | | (6.9 | ) | | (7.5 | ) | Earnings before income taxes and equity earnings | $ | 821.9 |
| | $ | — |
| | $ | 821.9 |
| | $ | 801.4 |
| | $ | — |
| | $ | 801.4 |
|
The effects of adjustments to the December 30, 2017 consolidated balance sheet for the adoption of Topic 606 were as follows: | | | | | | | | | | | | | | | | 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 |
|
|
| Disaggregation of Revenue |
The following table shows the consolidated revenues by revenue source: | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | (Amounts in millions) | | September 29, 2018 | | September 29, 2018 | | | | | | Revenue from contracts with customers | | $ | 892.7 |
| | $ | 2,772.3 |
| Other revenues | | 5.4 |
| | 15.9 |
| Total net sales | | 898.1 |
| | 2,788.2 |
| Financial services revenue | | 82.0 |
| | 247.0 |
| Total revenues | | $ | 980.1 |
| | $ | 3,035.2 |
| | | | | |
The following table represents external net sales disaggregated by geography, based on the customers’ billing addresses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the three months ended September 29, 2018 | | | Commercial & | | Snap-on | | Repair Systems | | | | | | | | | Industrial | | Tools | | & Information | | Financial | | | | Snap-on | (Amounts in millions) | | Group | | Group | | Group | | Services | | Eliminations | | Incorporated | Net sales: | | | | | | | | | | | | | North America* | | $ | 119.9 |
| | $ | 335.4 |
| | $ | 177.6 |
| | $ | — |
| | $ | — |
| | $ | 632.9 |
| Europe | | 70.4 |
| | 32.0 |
| | 57.6 |
| | — |
| | — |
| | 160.0 |
| All other | | 65.4 |
| | 22.4 |
| | 17.4 |
| | — |
| | — |
| | 105.2 |
| External net sales | | 255.7 |
| | 389.8 |
| | 252.6 |
| | — |
| | — |
| | 898.1 |
| Intersegment net sales | | 74.5 |
| | — |
| | 61.8 |
| | — |
| | (136.3 | ) | | — |
| Total net sales | | 330.2 |
| | 389.8 |
| | 314.4 |
| | — |
| | (136.3 | ) | | 898.1 |
| Financial services revenue | | — |
| | — |
| | — |
| | 82.0 |
| | — |
| | 82.0 |
| Total revenue | | $ | 330.2 |
| | $ | 389.8 |
| | $ | 314.4 |
| | $ | 82.0 |
| | $ | (136.3 | ) | | $ | 980.1 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | For the nine months ended September 29, 2018 | | | Commercial & | | Snap-on | | Repair Systems | | | | | | | | | Industrial | | Tools | | & Information | | Financial | | | | Snap-on | (Amounts in millions) | | Group | | Group | | Group | | Services | | Eliminations | | Incorporated | Net sales: | | | | | | | | | | | | | North America* | | $ | 345.7 |
| | $ | 1,020.5 |
| | $ | 552.3 |
| | $ | — |
| | $ | — |
| | $ | 1,918.5 |
| Europe | | 229.9 |
| | 117.2 |
| | 192.8 |
| | — |
| | — |
| | 539.9 |
| All other | | 206.0 |
| | 68.7 |
| | 55.1 |
| | — |
| | — |
| | 329.8 |
| External net sales | | 781.6 |
| | 1,206.4 |
| | 800.2 |
| | — |
| | — |
| | 2,788.2 |
| Intersegment net sales | | 218.0 |
| | — |
| | 194.3 |
| | — |
| | (412.3 | ) | | — |
| Total net sales | | 999.6 |
| | 1,206.4 |
| | 994.5 |
| | — |
| | (412.3 | ) | | 2,788.2 |
| Financial services revenue | | — |
| | — |
| | — |
| | 247.0 |
| | — |
| | 247.0 |
| Total revenue | | $ | 999.6 |
| | $ | 1,206.4 |
| | $ | 994.5 |
| | $ | 247.0 |
| | $ | (412.3 | ) | | $ | 3,035.2 |
| | | | | | | | | | | | | |
| | | | | | | | | | | * North America is comprised of the United States, Canada and Mexico. |
The following table represents external net sales disaggregated by customer type: | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the three months ended September 29, 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 | | $ | 21.4 |
| | $ | 389.8 |
| | $ | 252.6 |
| | $ | — |
| | $ | — |
| | $ | 663.8 |
| All other professionals | | 234.3 |
| | — |
| | — |
| | — |
| | — |
| | 234.3 |
| External net sales | | 255.7 |
| | 389.8 |
| | 252.6 |
| | — |
| | — |
| | 898.1 |
| Intersegment net sales | | 74.5 |
| | — |
| | 61.8 |
| | — |
| | (136.3 | ) | | — |
| Total net sales | | 330.2 |
| | 389.8 |
| | 314.4 |
| | — |
| | (136.3 | ) | | 898.1 |
| Financial services revenue | | — |
| | — |
| | — |
| | 82.0 |
| | — |
| | 82.0 |
| Total revenue | | $ | 330.2 |
| | $ | 389.8 |
| | $ | 314.4 |
| | $ | 82.0 |
| | $ | (136.3 | ) | | $ | 980.1 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | For the nine months ended September 29, 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 | | $ | 69.5 |
| | $ | 1,206.4 |
| | $ | 800.2 |
| | $ | — |
| | $ | — |
| | $ | 2,076.1 |
| All other professionals | | 712.1 |
| | — |
| | — |
| | — |
| | — |
| | 712.1 |
| External net sales | | 781.6 |
| | 1,206.4 |
| | 800.2 |
| | — |
| | — |
| | 2,788.2 |
| Intersegment net sales | | 218.0 |
| | — |
| | 194.3 |
| | — |
| | (412.3 | ) | | — |
| Total net sales | | 999.6 |
| | 1,206.4 |
| | 994.5 |
| | — |
| | (412.3 | ) | | 2,788.2 |
| Financial services revenue | | — |
| | — |
| | — |
| | 247.0 |
| | — |
| | 247.0 |
| Total revenue | | $ | 999.6 |
| | $ | 1,206.4 |
| | $ | 994.5 |
| | $ | 247.0 |
| | $ | (412.3 | ) | | $ | 3,035.2 |
| | | | | | | | | | | | | |
|