Leases - (Tables)

9 Months Ended

Sep. 28, 2019

Leases [Abstract]

Summary of Effects of New Accounting Pronouncement

The adoption of Topic 842 impacted the company’s previously reported results as follows:

(Amounts in millions)	Classification	Balance at December 29, 2018		Topic 842 Adjustments		Opening Balance at December 30, 2018
Assets
Finance lease assets	Property and equipment - net	$	7.8	$	—	$	7.8
Operating lease assets	Operating lease right-of-use assets	—		60.5		60.5
Liabilities
Current:
Finance lease liabilities	Other accrued liabilities	$	1.2	$	—	$	1.2
Operating lease liabilities	Other accrued liabilities	—		20.2		20.2
Non-current:
Finance lease liabilities	Other long-term liabilities	$	6.6	$	—	$	6.6
Operating lease liabilities	Operating lease liabilities	—		40.4		40.4

Schedule of Lease Cost

Total lease costs consist of the following:

	Three Months Ended		Nine Months Ended
(Amounts in millions)	September 28, 2019		September 28, 2019
Finance lease costs*:
Amortization of ROU assets	$	0.4	$	1.1
Interest on lease liabilities	0.1		0.2
Operating lease costs*	6.1		18.6
Total lease costs	$	6.6	$	19.9

* Includes short-term leases, variable lease costs and sublease income, which are immaterial.

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended
(Amounts in millions)	September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	1.0
Operating cash flows from finance leases	0.2
Operating cash flows from operating leases	17.5
ROU assets obtained in exchange for new lease obligations:
Finance lease liabilities	$	1.3
Operating lease liabilities	9.6

Schedule of Lease Supplemental Balance Sheet Information and Weighted-Average Lease Terms and Discount Rates

Supplemental balance sheet information related to leases as of September 28, 2019, is as follows:

(Amounts in millions)	September 28, 2019
Finance leases:
Property and equipment - gross	$	9.2
Accumulated depreciation and amortization	(1.1)
Property and equipment - net	$	8.1
Other accrued liabilities	$	2.9
Other long-term liabilities	10.8
Total finance lease liabilities	$	13.7
Operating leases:
Operating lease right-of-use assets	$	52.4
Other accrued liabilities	$	19.3
Operating lease liabilities	34.3
Total operating lease liabilities	$	53.6

Weighted-average lease terms and discount rates as of September 28, 2019, are as follows:

	September 28, 2019
Weighted-average remaining lease terms:
Finance leases	4.7 years
Operating leases	3.4 years
Weighted-average discount rates:
Finance leases	3.9%
Operating leases	3.0%

Schedule of Operating Lease Liability Maturities (Topic 842)

Maturities of lease liabilities as of September 28, 2019, are as follows:

(Amounts in millions)	Operating Leases		Finance Leases
Year:
2019 (excluding the nine months ended September 28, 2019)	$	5.6	$	0.8
2020	19.0		3.3
2021	14.1		3.1
2022	9.4		2.8
2023	4.4		2.6
2024 and thereafter	3.9		2.3
Total lease payments	56.4		14.9
Less: amount representing interest	(2.8)		(1.2)
Total lease liabilities	$	53.6	$	13.7

Schedule of Finance Lease Liability Maturities (Topic 842)

Maturities of lease liabilities as of September 28, 2019, are as follows:

(Amounts in millions)	Operating Leases		Finance Leases
Year:
2019 (excluding the nine months ended September 28, 2019)	$	5.6	$	0.8
2020	19.0		3.3
2021	14.1		3.1
2022	9.4		2.8
2023	4.4		2.6
2024 and thereafter	3.9		2.3
Total lease payments	56.4		14.9
Less: amount representing interest	(2.8)		(1.2)
Total lease liabilities	$	53.6	$	13.7

Schedule of Future Minimum Rental Payments for Operating Leases (Topic 840)

Snap-on’s future minimum lease commitments, net of sub-lease rental income, as of December 29, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:

(Amounts in millions)	Operating   Leases		Capital Leases
Year:
2019	$	25.6	$	3.3
2020	18.4		3.2
2021	13.9		2.9
2022	9.8		2.5
2023	4.9		2.2
2024 and thereafter	4.4		1.9
Total minimum lease payments	$	77.0	16.0
Less: amount representing interest			(0.9)
Total present value of minimum capital lease payments			$	15.1

Schedule of Future Minimum Lease Payments for Capital Leases (Topic 840)

Snap-on’s future minimum lease commitments, net of sub-lease rental income, as of December 29, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:

(Amounts in millions)	Operating   Leases		Capital Leases
Year:
2019	$	25.6	$	3.3
2020	18.4		3.2
2021	13.9		2.9
2022	9.8		2.5
2023	4.9		2.2
2024 and thereafter	4.4		1.9
Total minimum lease payments	$	77.0	16.0
Less: amount representing interest			(0.9)
Total present value of minimum capital lease payments			$	15.1

Schedule of Minimum Capital Lease Payments Present Value

Amounts included in the accompanying Condensed Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2018 year end are as follows: 

(Amounts in millions)	December 29, 2018
Other accrued liabilities	$	3.0
Other long-term liabilities	12.1
Total present value of minimum capital lease payments	$	15.1

Schedule of Sales-type Lease Receivable Maturities

Future minimum lease payments as of September 28, 2019, consisted of the following:

(Amounts in millions)	Lease Receivables
Year:
2019 (excluding the nine months ended September 28, 2019)	$	28.9
2020	109.3
2021	80.3
2022	55.5
2023	37.9
2024 and thereafter	36.4
Total lease payments	348.3
Less: unearned finance charges	(63.9)
Net investment in leases	$	284.4