(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of Principal Executive Offices, and Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
SNAP-ON INCORPORATED | ||||||||
Date: | By: | /s/ Aldo J. Pagliari | ||||||
Aldo J. Pagliari, Principal Financial Officer, | ||||||||
Senior Vice President – Finance and Chief Financial Officer |
Three Months Ended | |||||||||||
March 30, | April 1, | ||||||||||
2024 | 2023 | ||||||||||
Net sales | $ | 1,182.3 | $ | 1,183.0 | |||||||
Cost of goods sold | (585.6) | (593.4) | |||||||||
Gross profit | 596.7 | 589.6 | |||||||||
Operating expenses | (325.8) | (329.8) | |||||||||
Operating earnings before financial services | 270.9 | 259.8 | |||||||||
Financial services revenue | 99.6 | 92.6 | |||||||||
Financial services expenses | (31.3) | (26.3) | |||||||||
Operating earnings from financial services | 68.3 | 66.3 | |||||||||
Operating earnings | 339.2 | 326.1 | |||||||||
Interest expense | (12.5) | (12.4) | |||||||||
Other income (expense) – net | 18.1 | 15.2 | |||||||||
Earnings before income taxes | 344.8 | 328.9 | |||||||||
Income tax expense | (75.2) | (74.6) | |||||||||
Net earnings | 269.6 | 254.3 | |||||||||
Net earnings attributable to noncontrolling interests | (6.1) | (5.6) | |||||||||
Net earnings attributable to Snap-on Inc. | $ | 263.5 | $ | 248.7 | |||||||
Net earnings per share attributable to Snap-on Inc.: | |||||||||||
Basic | $ | 4.99 | $ | 4.69 | |||||||
Diluted | 4.91 | 4.60 | |||||||||
Weighted-average shares outstanding: | |||||||||||
Basic | 52.8 | 53.0 | |||||||||
Effect of dilutive securities | 0.9 | 1.1 | |||||||||
Diluted | 53.7 | 54.1 |
Three Months Ended | |||||||||||
March 30, | April 1, | ||||||||||
2024 | 2023 | ||||||||||
Net sales: | |||||||||||
Commercial & Industrial Group | $ | 359.9 | $ | 363.8 | |||||||
Snap-on Tools Group | 500.1 | 537.0 | |||||||||
Repair Systems & Information Group | 463.8 | 446.6 | |||||||||
Segment net sales | 1,323.8 | 1,347.4 | |||||||||
Intersegment eliminations | (141.5) | (164.4) | |||||||||
Total net sales | 1,182.3 | 1,183.0 | |||||||||
Financial Services revenue | 99.6 | 92.6 | |||||||||
Total revenues | $ | 1,281.9 | $ | 1,275.6 | |||||||
Operating earnings: | |||||||||||
Commercial & Industrial Group | $ | 55.4 | $ | 55.8 | |||||||
Snap-on Tools Group | 117.3 | 131.7 | |||||||||
Repair Systems & Information Group | 112.9 | 104.6 | |||||||||
Financial Services | 68.3 | 66.3 | |||||||||
Segment operating earnings | 353.9 | 358.4 | |||||||||
Corporate | (14.7) | (32.3) | |||||||||
Operating earnings | 339.2 | 326.1 | |||||||||
Interest expense | (12.5) | (12.4) | |||||||||
Other income (expense) – net | 18.1 | 15.2 | |||||||||
Earnings before income taxes | $ | 344.8 | $ | 328.9 |
March 30, | December 30, | ||||||||||
2024 | 2023 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 1,121.0 | $ | 1,001.5 | |||||||
Trade and other accounts receivable – net | 827.5 | 791.3 | |||||||||
Finance receivables – net | 604.9 | 594.1 | |||||||||
Contract receivables – net | 116.6 | 120.8 | |||||||||
Inventories – net | 970.5 | 1,005.9 | |||||||||
Prepaid expenses and other current assets | 135.6 | 138.4 | |||||||||
Total current assets | 3,776.1 | 3,652.0 | |||||||||
Property and equipment – net | 534.7 | 539.3 | |||||||||
Operating lease right-of-use assets | 74.4 | 74.7 | |||||||||
Deferred income tax assets | 78.4 | 76.0 | |||||||||
Long-term finance receivables – net | 1,290.6 | 1,284.2 | |||||||||
Long-term contract receivables – net | 413.6 | 407.9 | |||||||||
Goodwill | 1,071.3 | 1,097.4 | |||||||||
Other intangible assets – net | 277.7 | 268.9 | |||||||||
Pension assets | 130.4 | 130.5 | |||||||||
Other long-term assets | 19.6 | 14.0 | |||||||||
Total assets | $ | 7,666.8 | $ | 7,544.9 | |||||||
Liabilities and Equity | |||||||||||
Notes payable | $ | 15.2 | $ | 15.6 | |||||||
Accounts payable | 257.4 | 238.0 | |||||||||
Accrued benefits | 70.5 | 64.4 | |||||||||
Accrued compensation | 67.9 | 102.9 | |||||||||
Franchisee deposits | 73.7 | 73.3 | |||||||||
Other accrued liabilities | 505.0 | 447.4 | |||||||||
Total current liabilities | 989.7 | 941.6 | |||||||||
Long-term debt | 1,184.9 | 1,184.6 | |||||||||
Deferred income tax liabilities | 88.3 | 79.2 | |||||||||
Retiree health care benefits | 21.2 | 21.8 | |||||||||
Pension liabilities | 75.3 | 82.3 | |||||||||
Operating lease liabilities | 54.5 | 54.6 | |||||||||
Other long-term liabilities | 89.6 | 87.4 | |||||||||
Total liabilities | 2,503.5 | 2,451.5 | |||||||||
Equity | |||||||||||
Shareholders' equity attributable to Snap-on Inc. | |||||||||||
Common stock | 67.5 | 67.5 | |||||||||
Additional paid-in capital | 527.4 | 545.5 | |||||||||
Retained earnings | 7,113.1 | 6,948.5 | |||||||||
Accumulated other comprehensive loss | (493.3) | (449.5) | |||||||||
Treasury stock at cost | (2,073.7) | (2,040.7) | |||||||||
Total shareholders' equity attributable to Snap-on Inc. | 5,141.0 | 5,071.3 | |||||||||
Noncontrolling interests | 22.3 | 22.1 | |||||||||
Total equity | 5,163.3 | 5,093.4 | |||||||||
Total liabilities and equity | $ | 7,666.8 | $ | 7,544.9 |
Three Months Ended | |||||||||||
March 30, | April 1, | ||||||||||
2024 | 2023 | ||||||||||
Operating activities: | |||||||||||
Net earnings | $ | 269.6 | $ | 254.3 | |||||||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | |||||||||||
Depreciation | 18.2 | 18.0 | |||||||||
Amortization of other intangible assets | 6.3 | 6.9 | |||||||||
Provision for losses on finance receivables | 18.2 | 14.2 | |||||||||
Provision for losses on non-finance receivables | 4.9 | 5.0 | |||||||||
Stock-based compensation expense | 9.8 | 10.2 | |||||||||
Deferred income tax provision (benefit) | 1.6 | (0.2) | |||||||||
Gain on sales of assets | (0.2) | (0.2) | |||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Trade and other accounts receivable | (47.9) | (22.9) | |||||||||
Contract receivables | (4.0) | 0.2 | |||||||||
Inventories | 22.1 | (13.2) | |||||||||
Prepaid expenses and other current assets | (3.5) | 1.7 | |||||||||
Accounts payable | 23.3 | (0.5) | |||||||||
Accrued and other liabilities | 30.3 | 28.1 | |||||||||
Net cash provided by operating activities | 348.7 | 301.6 | |||||||||
Investing activities: | |||||||||||
Additions to finance receivables | (248.0) | (257.1) | |||||||||
Collections of finance receivables | 207.8 | 207.5 | |||||||||
Capital expenditures | (21.8) | (23.0) | |||||||||
Disposals of property and equipment | 1.1 | 0.5 | |||||||||
Other | (2.3) | (0.8) | |||||||||
Net cash used by investing activities | (63.2) | (72.9) | |||||||||
Financing activities: | |||||||||||
Net increase (decrease) in other short-term borrowings | (0.4) | 0.8 | |||||||||
Cash dividends paid | (98.2) | (86.1) | |||||||||
Purchases of treasury stock | (70.2) | (87.2) | |||||||||
Proceeds from stock purchase plan and stock option exercises | 28.3 | 32.8 | |||||||||
Other | (23.7) | (12.4) | |||||||||
Net cash used by financing activities | (164.2) | (152.1) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (1.8) | — | |||||||||
Increase in cash and cash equivalents | 119.5 | 76.6 | |||||||||
Cash and cash equivalents at beginning of year | 1,001.5 | 757.2 | |||||||||
Cash and cash equivalents at end of period | $ | 1,121.0 | $ | 833.8 | |||||||
Supplemental cash flow disclosures: | |||||||||||
Cash paid for interest | $ | (13.7) | $ | (13.6) | |||||||
Net cash paid for income taxes | (14.7) | (13.3) | |||||||||
Operations* | Financial Services | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
March 30, | April 1, | March 30, | April 1, | ||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net sales | $ | 1,182.3 | $ | 1,183.0 | $ | — | $ | — | |||||||||||||||
Cost of goods sold | (585.6) | (593.4) | — | — | |||||||||||||||||||
Gross profit | 596.7 | 589.6 | — | — | |||||||||||||||||||
Operating expenses | (325.8) | (329.8) | — | — | |||||||||||||||||||
Operating earnings before financial services | 270.9 | 259.8 | — | — | |||||||||||||||||||
Financial services revenue | — | — | 99.6 | 92.6 | |||||||||||||||||||
Financial services expenses | — | — | (31.3) | (26.3) | |||||||||||||||||||
Operating earnings from financial services | — | — | 68.3 | 66.3 | |||||||||||||||||||
Operating earnings | 270.9 | 259.8 | 68.3 | 66.3 | |||||||||||||||||||
Interest expense | (12.5) | (12.4) | — | — | |||||||||||||||||||
Intersegment interest income (expense) – net | 16.7 | 15.7 | (16.7) | (15.7) | |||||||||||||||||||
Other income (expense) – net | 18.0 | 15.2 | 0.1 | — | |||||||||||||||||||
Earnings before income taxes and equity earnings | 293.1 | 278.3 | 51.7 | 50.6 | |||||||||||||||||||
Income tax expense | (62.3) | (61.5) | (12.9) | (13.1) | |||||||||||||||||||
Earnings before equity earnings | 230.8 | 216.8 | 38.8 | 37.5 | |||||||||||||||||||
Financial services – net earnings attributable to Snap-on | 38.8 | 37.5 | — | — | |||||||||||||||||||
Net earnings | 269.6 | 254.3 | 38.8 | 37.5 | |||||||||||||||||||
Net earnings attributable to noncontrolling interests | (6.1) | (5.6) | — | — | |||||||||||||||||||
Net earnings attributable to Snap-on | $ | 263.5 | $ | 248.7 | $ | 38.8 | $ | 37.5 | |||||||||||||||
* Snap-on with Financial Services presented on the equity method. |
Operations* | Financial Services | ||||||||||||||||||||||
March 30, | December 30, | March 30, | December 30, | ||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,120.9 | $ | 1,001.3 | $ | 0.1 | $ | 0.2 | |||||||||||||||
Intersegment receivables | 18.6 | 15.7 | — | — | |||||||||||||||||||
Trade and other accounts receivable – net | 826.7 | 790.6 | 0.8 | 0.7 | |||||||||||||||||||
Finance receivables – net | — | — | 604.9 | 594.1 | |||||||||||||||||||
Contract receivables – net | 5.1 | 5.5 | 111.5 | 115.3 | |||||||||||||||||||
Inventories – net | 970.5 | 1,005.9 | — | — | |||||||||||||||||||
Prepaid expenses and other current assets | 140.0 | 143.2 | 8.3 | 7.4 | |||||||||||||||||||
Total current assets | 3,081.8 | 2,962.2 | 725.6 | 717.7 | |||||||||||||||||||
Property and equipment – net | 532.2 | 536.5 | 2.5 | 2.8 | |||||||||||||||||||
Operating lease right-of-use assets | 73.6 | 73.8 | 0.8 | 0.9 | |||||||||||||||||||
Investment in Financial Services | 395.5 | 393.9 | — | — | |||||||||||||||||||
Deferred income tax assets | 53.0 | 51.3 | 25.4 | 24.7 | |||||||||||||||||||
Intersegment long-term notes receivable | 792.8 | 785.6 | — | — | |||||||||||||||||||
Long-term finance receivables – net | — | — | 1,290.6 | 1,284.2 | |||||||||||||||||||
Long-term contract receivables – net | 8.1 | 8.3 | 405.5 | 399.6 | |||||||||||||||||||
Goodwill | 1,071.3 | 1,097.4 | — | — | |||||||||||||||||||
Other intangible assets – net | 277.7 | 268.9 | — | — | |||||||||||||||||||
Pension assets | 130.4 | 130.5 | — | — | |||||||||||||||||||
Other long-term assets | 36.6 | 30.2 | 0.2 | 0.1 | |||||||||||||||||||
Total assets | $ | 6,453.0 | $ | 6,338.6 | $ | 2,450.6 | $ | 2,430.0 | |||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Notes payable | $ | 15.2 | $ | 15.6 | $ | — | $ | — | |||||||||||||||
Accounts payable | 256.7 | 236.2 | 0.7 | 1.8 | |||||||||||||||||||
Intersegment payables | — | — | 18.6 | 15.7 | |||||||||||||||||||
Accrued benefits | 70.5 | 64.4 | — | — | |||||||||||||||||||
Accrued compensation | 66.0 | 99.9 | 1.9 | 3.0 | |||||||||||||||||||
Franchisee deposits | 73.7 | 73.3 | — | — | |||||||||||||||||||
Other accrued liabilities | 480.2 | 432.2 | 37.5 | 27.4 | |||||||||||||||||||
Total current liabilities | 962.3 | 921.6 | 58.7 | 47.9 | |||||||||||||||||||
Long-term debt and intersegment long-term debt | — | — | 1,977.7 | 1,970.2 | |||||||||||||||||||
Deferred income tax liabilities | 88.3 | 79.2 | — | — | |||||||||||||||||||
Retiree health care benefits | 21.2 | 21.8 | — | — | |||||||||||||||||||
Pension liabilities | 75.3 | 82.3 | — | — | |||||||||||||||||||
Operating lease liabilities | 54.1 | 54.0 | 0.4 | 0.6 | |||||||||||||||||||
Other long-term liabilities | 88.5 | 86.3 | 18.3 | 17.4 | |||||||||||||||||||
Total liabilities | 1,289.7 | 1,245.2 | 2,055.1 | 2,036.1 | |||||||||||||||||||
Total shareholders' equity attributable to Snap-on | 5,141.0 | 5,071.3 | 395.5 | 393.9 | |||||||||||||||||||
Noncontrolling interests | 22.3 | 22.1 | — | — | |||||||||||||||||||
Total equity | 5,163.3 | 5,093.4 | 395.5 | 393.9 | |||||||||||||||||||
Total liabilities and equity | $ | 6,453.0 | $ | 6,338.6 | $ | 2,450.6 | $ | 2,430.0 | |||||||||||||||
* Snap-on with Financial Services presented on the equity method. |
Cover |
Apr. 18, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Apr. 18, 2024 |
Entity Registrant Name | Snap-on Inc |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-07724 |
Entity Tax Identification Number | 39-0622040 |
Entity Address, Address Line One | 2801 80th Street, |
Entity Address, City or Town | Kenosha, |
Entity Address, State or Province | WI |
Entity Address, Postal Zip Code | 53143-5656 |
City Area Code | 262 |
Local Phone Number | 656-5200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $1.00 par value |
Trading Symbol | SNA |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000091440 |
Amendment Flag | false |
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