Receivables (Tables)

6 Months Ended

Jul. 04, 2015

Components of Trade and Other Accounts Receivable

The components of Snap-on’s trade and other accounts receivable as of July 4, 2015, and January 3, 2015, are as follows:


(Amounts in millions)	July 4, 2015		January 3, 2015
Trade and other accounts receivable	$	575.1	$	567.0
Allowances for doubtful accounts		(17.1)		(16.2)

Total trade and other accounts receivable – net	$	558.0	$	550.8

Components of Current Finance and Contract Receivables

The components of Snap-on’s current finance and contract receivables as of July 4, 2015, and January 3, 2015, are as follows:


(Amounts in millions)	July 4, 2015		January 3, 2015
Finance receivables, net of unearned finance charges of $16.5 million and $15.6 million, respectively	$	434.3	$	414.6
Contract receivables, net of unearned finance charges of $14.4 million and $13.9 million, respectively		70.3		75.5

Total		504.6		490.1

Allowances for doubtful accounts:
Finance receivables		(12.6)		(12.2)
Contract receivables		(1.2)		(1.0)

Total		(13.8)		(13.2)

Total current finance and contract receivables – net	$	490.8	$	476.9


Finance receivables – net	$	421.7	$	402.4
Contract receivables – net		69.1		74.5

Total current finance and contract receivables – net	$	490.8	$	476.9

Components of Finance and Contract Receivables Beyond One Year

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of July 4, 2015, and January 3, 2015, are as follows:


(Amounts in millions)	July 4, 2015		January 3, 2015
Finance receivables, net of unearned finance charges of $10.7 million and $9.9 million, respectively	$	731.1	$	671.0
Contract receivables, net of unearned finance charges of $20.4 million and $19.4 million, respectively		255.9		244.5

Total		987.0		915.5

Allowances for doubtful accounts:
Finance receivables		(22.3)		(20.5)
Contract receivables		(3.0)		(2.5)

Total		(25.3)		(23.0)

Total long-term finance and contract receivables – net	$	961.7	$	892.5


Finance receivables – net	$	708.8	$	650.5
Contract receivables – net		252.9		242.0

Total long-term finance and contract receivables – net	$	961.7	$	892.5

Aging of Finance and Contract Receivables

The aging of finance and contract receivables as of July 4, 2015, and January 3, 2015, 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
July 4, 2015:
Finance receivables	$	9.6	$	6.0	$	8.7	$	24.3	$	1,141.1	$	1,165.4	$	6.3
Contract receivables		1.1		0.9		1.2		3.2		323.0		326.2		0.2

January 3, 2015:
Finance receivables	$	9.8	$	6.7	$	10.4	$	26.9	$	1,058.7	$	1,085.6	$	7.7
Contract receivables		0.9		0.7		1.1		2.7		317.3		320.0		0.1

Schedule of Performing and Nonperforming Finance and Contract Receivables

The amount of performing and nonperforming finance and contract receivables based on payment activity as of July 4, 2015, and January 3, 2015, is as follows:


	July 4, 2015				January 3, 2015
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Performing	$	1,150.6	$	324.6	$	1,070.1	$	318.5
Nonperforming		14.8		1.6		15.5		1.5

Total	$	1,165.4	$	326.2	$	1,085.6	$	320.0

Schedule of Finance and Contract Receivables on Nonaccrual Status

The amount of finance and contract receivables on nonaccrual status as of July 4, 2015, and January 3, 2015, is as follows:


(Amounts in millions)	July 4, 2015		January 3, 2015
Finance receivables	$	8.6	$	7.9
Contract receivables		1.5		1.5

Rollforward of Allowances for Credit Losses for Finance and Contract Receivables

The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and six month periods ended July 4, 2015:


	Three Months Ended July 4, 2015				Six Months Ended July 4, 2015
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	33.4	$	3.9	$	32.7	$	3.5
Provision for bad debt expense		7.3		0.7		14.4		1.6
Charge-offs		(7.3)		(0.6)		(15.1)		(1.0)
Recoveries		1.5		0.2		3.0		0.2
Currency translation		–		–		(0.1)		(0.1)

End of period	$	34.9	$	4.2	$	34.9	$	4.2


The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and six month periods ended June 28, 2014:

	Three Months Ended June 28, 2014				Six Months Ended June 28, 2014
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	28.5	$	3.6	$	27.8	$	3.3
Provision for bad debt expense		7.2		0.7		13.4		1.3
Charge-offs		(6.7)		(0.6)		(13.5)		(1.0)
Recoveries		1.3		0.1		2.6		0.2
Currency translation		0.1		–		0.1		–

End of period	$	30.4	$	3.8	$	30.4	$	3.8