Revenue Recognition (Tables)

9 Months Ended

Sep. 29, 2018

Revenue Recognition and Deferred Revenue [Abstract]

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