Segments

6 Months Ended

Jul. 02, 2022

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, 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 worldwide 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, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for intersegment 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)	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Net sales:
Commercial & Industrial Group	$	359.1	$	350.5	$	699.2	$	696.2
Snap-on Tools Group	520.6		484.1		1,032.7		962.4
Repair Systems & Information Group	416.8		398.6		815.0		746.2
Segment net sales	1,296.5		1,233.2		2,546.9		2,404.8
Intersegment eliminations	(159.9)		(151.8)		(312.5)		(298.8)
Total net sales	1,136.6		1,081.4		2,234.4		2,106.0
Financial Services revenue	86.4		86.9		174.1		175.5
Total revenues	$	1,223.0	$	1,168.3	$	2,408.5	$	2,281.5
Operating earnings:
Commercial & Industrial Group	$	51.7	$	55.5	$	97.4	$	106.2
Snap-on Tools Group	124.4		103.5		240.4		202.4
Repair Systems & Information Group	95.7		86.7		187.3		168.1
Financial Services	65.3		68.9		135.7		134.2
Segment operating earnings	337.1		314.6		660.8		610.9
Corporate	(25.2)		(28.6)		(55.4)		(58.7)
Operating earnings	311.9		286.0		605.4		552.2
Interest expense	(11.7)		(14.3)		(23.3)		(28.6)
Other income (expense) – net	9.3		3.4		17.6		7.7
Earnings before income taxes and equity earnings	$	309.5	$	275.1	$	599.7	$	531.3

(Amounts in millions)	July 2, 2022		January 1, 2022
Assets:
Commercial & Industrial Group	$	1,204.6	$	1,209.3
Snap-on Tools Group	842.3		791.4
Repair Systems & Information Group	1,630.1		1,624.3
Financial Services	2,164.3		2,163.6
Total assets from reportable segments	5,841.3		5,788.6
Corporate	1,107.8		1,039.7
Elimination of intersegment receivables	(84.8)		(68.6)
Total assets	$	6,864.3	$	6,759.7