Receivables (Tables)
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9 Months Ended |
Sep. 28, 2024 |
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| Receivables [Abstract] |
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| Schedule of Components of Trade and Other Accounts Receivable |
The components of Snap-on’s trade and other accounts receivable as of September 28, 2024, and December 30, 2023, are as follows:
| | | | | | | | | | | | | (Amounts in millions) | September 28,
2024 | | December 30, 2023 | | Trade and other accounts receivable | $ | 834.5 | | | $ | 826.2 | | | Allowances for credit losses | (38.1) | | | (34.9) | | | Total trade and other accounts receivable – net | $ | 796.4 | | | $ | 791.3 | |
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| Schedule of Allowance for Credit Losses on Receivables |
The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and nine month periods ended September 28, 2024, and September 30, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | (Amounts in millions) | September 28, 2024 | | September 30, 2023 | | September 28, 2024 | | September 30, 2023 | | Allowances for credit losses: | | | | | | | | | Beginning of period | $ | 36.5 | | | $ | 32.3 | | | $ | 34.9 | | | $ | 31.1 | | Provision for credit losses | 5.3 | | | 5.5 | | | 16.2 | | | 13.7 | | Charge-offs | (4.3) | | | (3.6) | | | (12.9) | | | (10.9) | | Recoveries | 0.1 | | | — | | | 0.2 | | | — | | Currency translation | 0.5 | | | (0.4) | | | (0.3) | | | (0.1) | | | End of period | $ | 38.1 | | | $ | 33.8 | | | $ | 38.1 | | | $ | 33.8 | |
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| Schedule of Components of Finance and Contract Receivables, Current and Beyond One Year |
The components of Snap-on’s current finance and contract receivables as of September 28, 2024, and December 30, 2023, are as follows:
| | | | | | | | | | | | | (Amounts in millions) | September 28,
2024 | | December 30, 2023 | | Finance installment receivables | $ | 630.4 | | | $ | 605.2 | | Finance lease receivables, net of unearned finance charges of $6.4 million and $3.4 million, respectively | 17.0 | | | 10.1 | | | Total finance receivables | 647.4 | | | 615.3 | | | | | | | Contract installment receivables | 61.9 | | | 59.9 | | Contract lease receivables, net of unearned finance charges of $22.1 million and $21.1 million, respectively | 62.0 | | | 62.7 | | | Total contract receivables | 123.9 | | | 122.6 | | | Total | 771.3 | | | 737.9 | | | | | | | Allowances for credit losses: | | | | | Finance installment receivables | (22.4) | | | (21.1) | | | Finance lease receivables | (0.3) | | | (0.1) | | | Total finance allowances for credit losses | (22.7) | | | (21.2) | | | | | | | Contract installment receivables | (0.9) | | | (0.9) | | | Contract lease receivables | (0.9) | | | (0.9) | | | Total contract allowances for credit losses | (1.8) | | | (1.8) | | | Total allowances for credit losses | (24.5) | | | (23.0) | | | Total current finance and contract receivables – net | $ | 746.8 | | | $ | 714.9 | | | | | | | Finance receivables – net | $ | 624.7 | | | $ | 594.1 | | | Contract receivables – net | 122.1 | | | 120.8 | | | Total current finance and contract receivables – net | $ | 746.8 | | | $ | 714.9 | |
The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of September 28, 2024, and December 30, 2023, are as follows:
| | | | | | | | | | | | | (Amounts in millions) | September 28,
2024 | | December 30, 2023 | | Finance installment receivables | $ | 1,334.1 | | | $ | 1,318.5 | | Finance lease receivables, net of unearned finance charges of $5.5 million and $2.8 million, respectively | 23.2 | | | 12.3 | | | Total finance receivables | 1,357.3 | | | 1,330.8 | | | | | | | Contract installment receivables | 225.0 | | | 216.0 | | Contract lease receivables, net of unearned finance charges of $37.0 million and $35.1 million, respectively | 202.2 | | | 196.8 | | | Total contract receivables | 427.2 | | | 412.8 | | | Total | 1,784.5 | | | 1,743.6 | | | | | | | Allowances for credit losses: | | | | | Finance installment receivables | (47.8) | | | (46.4) | | | Finance lease receivables | (0.5) | | | (0.2) | | | Total finance allowances for credit losses | (48.3) | | | (46.6) | | | | | | | Contract installment receivables | (3.3) | | | (3.1) | | | Contract lease receivables | (1.8) | | | (1.8) | | | Total contract allowances for credit losses | (5.1) | | | (4.9) | | | Total allowances for credit losses | (53.4) | | | (51.5) | | | Total long-term finance and contract receivables – net | $ | 1,731.1 | | | $ | 1,692.1 | | | | | | | Finance receivables – net | $ | 1,309.0 | | | $ | 1,284.2 | | | Contract receivables – net | 422.1 | | | 407.9 | | | Total long-term finance and contract receivables – net | $ | 1,731.1 | | | $ | 1,692.1 | |
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| Schedule of Financing Receivable Credit Quality Indicators |
The amortized cost basis of finance and contract receivables by origination year as of September 28, 2024, and charge-offs recorded in the nine months ended September 28, 2024, by origination year, are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in millions) | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | | Finance receivables: | | | | | | | | | | | | | | | Delinquent | $ | 14.4 | | | $ | 25.7 | | | $ | 12.2 | | | $ | 5.8 | | | $ | 2.9 | | | $ | 1.1 | | | $ | 62.1 | | | Non-delinquent | 1,104.6 | | | 553.1 | | | 191.4 | | | 65.3 | | | 23.7 | | | 4.5 | | | 1,942.6 | | | Total Finance receivables | $ | 1,119.0 | | | $ | 578.8 | | | $ | 203.6 | | | $ | 71.1 | | | $ | 26.6 | | | $ | 5.6 | | | $ | 2,004.7 | | | | | | | | | | | | | | | | | Finance receivables charge-offs | $ | 2.0 | | | $ | 25.8 | | | $ | 15.3 | | | $ | 6.5 | | | $ | 3.4 | | | $ | 1.7 | | | $ | 54.7 | | | | | | | | | | | | | | | | | Contract receivables: | | | | | | | | | | | | | | | Delinquent | $ | 0.3 | | | $ | 0.6 | | | $ | 1.0 | | | $ | 0.4 | | | $ | 0.5 | | | $ | 0.4 | | | $ | 3.2 | | | Non-delinquent | 158.0 | | | 151.0 | | | 98.0 | | | 62.8 | | | 39.9 | | | 38.2 | | | 547.9 | | | Total Contract receivables | $ | 158.3 | | | $ | 151.6 | | | $ | 99.0 | | | $ | 63.2 | | | $ | 40.4 | | | $ | 38.6 | | | $ | 551.1 | | | | | | | | | | | | | | | | | Contract receivables charge-offs | $ | — | | | $ | 0.3 | | | $ | 0.5 | | | $ | 0.4 | | | $ | 0.3 | | | $ | 0.3 | | | $ | 1.8 | |
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| Schedule of Financing Receivable, Allowance for Credit Loss |
The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and nine month periods ended September 28, 2024, and September 30, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 28, 2024 | | Nine Months Ended
September 28, 2024 | | (Amounts in millions) | Finance
Receivables | | Contract
Receivables | | Finance
Receivables | | Contract
Receivables | | Allowances for credit losses: | | | | | | | | | Beginning of period | $ | 71.1 | | | $ | 6.8 | | | $ | 67.8 | | | $ | 6.7 | | | Provision for credit losses | 15.2 | | | 0.7 | | | 50.6 | | | 1.6 | | | Charge-offs | (17.7) | | | (0.8) | | | (54.7) | | | (1.8) | | | Recoveries | 2.2 | | | 0.1 | | | 7.2 | | | 0.3 | | | Currency translation | 0.2 | | | 0.1 | | | 0.1 | | | 0.1 | | | End of period | $ | 71.0 | | | $ | 6.9 | | | $ | 71.0 | | | $ | 6.9 | | | | | | | | | |
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September 30, 2023 | | Nine Months Ended
September 30, 2023 | | (Amounts in millions) | Finance Receivables | | Contract Receivables | | Finance Receivables | | Contract Receivables | | Allowances for credit losses: | | | | | | | | | Beginning of period | $ | 65.1 | | | $ | 6.5 | | | $ | 60.9 | | | $ | 6.6 | | | Provision for credit losses | 12.8 | | | 0.7 | | | 40.7 | | | 1.3 | | | Charge-offs | (13.7) | | | (0.7) | | | (42.1) | | | (1.6) | | | Recoveries | 1.9 | | | 0.1 | | | 6.5 | | | 0.3 | | | Currency translation | (0.1) | | | (0.1) | | | — | | | (0.1) | | | End of period | $ | 66.0 | | | $ | 6.5 | | | $ | 66.0 | | | $ | 6.5 | | | | | | | | | |
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| Schedule of Aging of Finance and Contract Receivables |
The aging of finance and contract receivables as of September 28, 2024, and December 30, 2023, is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in millions) | 30-59
Days Past
Due | | 60-90
Days Past
Due | | Greater
Than 90
Days Past
Due | | Total Past
Due | | Total Not
Past Due | | Total | | Greater
Than 90
Days Past
Due and
Accruing | | September 28, 2024: | | | | | | | | | | | | | | | Finance receivables | $ | 21.9 | | | $ | 14.5 | | | $ | 25.7 | | | $ | 62.1 | | | $ | 1,942.6 | | | $ | 2,004.7 | | | $ | 21.8 | | | Contract receivables | 1.2 | | | 0.5 | | | 1.5 | | | 3.2 | | | 547.9 | | | 551.1 | | | 0.2 | | | | | | | | | | | | | | | | | December 30, 2023: | | | | | | | | | | | | | | | Finance receivables | $ | 21.5 | | | $ | 13.6 | | | $ | 23.2 | | | $ | 58.3 | | | $ | 1,887.8 | | | $ | 1,946.1 | | | $ | 19.9 | | | Contract receivables | 1.5 | | | 0.6 | | | 1.2 | | | 3.3 | | | 532.1 | | | 535.4 | | | 0.2 | |
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| Schedule of Finance and Contract Receivables on Nonaccrual Status |
The amount of finance and contract receivables on nonaccrual status as of September 28, 2024, and December 30, 2023, is as follows:
| | | | | | | | | | | | | (Amounts in millions) | September 28,
2024 | | December 30, 2023 | | Finance receivables | $ | 11.8 | | | $ | 10.6 | | | Contract receivables | 2.4 | | | 3.3 | |
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