Note 17: 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, 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 original equipment manufacturer (OEM) dealership service and repair shops, 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. All significant intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

Financial data by segment was as follows:


	Three Months Ended						Six Months Ended
(Amounts in millions)	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
Net sales:
Commercial & Industrial Group	$	287.2		$	266.2		$	577.8		$	532.6
Snap-on Tools Group		369.1			346.2			712.7			673.5
Repair Systems & Information Group		278.5			246.2			541.2			492.3

Segment net sales		934.8			858.6			1,831.7			1,698.4
Intersegment eliminations		(108.3	)		(94.5	)		(217.7	)		(192.6	)

Total net sales	$	826.5		$	764.1		$	1,614.0		$	1,505.8
Financial Services revenue		51.7			44.5			101.9			88.5

Total revenues	$	878.2		$	808.6		$	1,715.9		$	1,594.3

Operating earnings:
Commercial & Industrial Group	$	38.2		$	33.6		$	77.3		$	64.2
Snap-on Tools Group		60.5			54.5			109.7			101.7
Repair Systems & Information Group		64.6			56.7			122.7			113.2
Financial Services		34.8			30.6			69.2			61.1

Segment operating earnings		198.1			175.4			378.9			340.2
Corporate		(25.2	)		(27.0	)		(49.9	)		(53.5	)

Operating earnings	$	172.9		$	148.4		$	329.0		$	286.7
Interest expense		(12.7	)		(13.8	)		(26.4	)		(27.4	)
Other income (expense) – net		0.3			(1.7	)		0.2			(2.3	)

Earnings before income taxes and equity earnings and equity earnings (loss)	$	160.5		$	132.9		$	302.8		$	257.0


(Amounts in millions)	June 28, 2014			December 28, 2013
Assets:
Commercial & Industrial Group	$	1,004.5		$	971.0
Snap-on Tools Group		584.7			557.3
Repair Systems & Information Group		1,047.4			979.6
Financial Services		1,312.9			1,224.0

Total assets from reportable segments	$	3,949.5		$	3,731.9
Corporate		333.2			431.8
Elimination of intersegment receivables		(54.4	)		(53.7	)

Total assets	$	4,228.3		$	4,110.0