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 dealership service and repair shops (“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. All significant intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results. See Note 1 for additional information on the retrospective adoption of ASU No. 2017-07 for the first quarter ended April 1, 2017.

Financial Data by Segment:



	Three Months Ended
(Amounts in millions)	March 31, 2018			April 1, 2017
Net sales:
Commercial & Industrial Group	$	331.6		$	298.7
Snap-on Tools Group	404.7			409.4
Repair Systems & Information Group	337.0			318.8
Segment net sales	1,073.3			1,026.9
Intersegment eliminations	(137.8		)	(139.8		)
Total net sales	$	935.5		$	887.1
Financial Services revenue	83.0			76.8
Total revenues	$	1,018.5		$	963.9
Operating earnings:
Commercial & Industrial Group	$	46.5		$	41.9
Snap-on Tools Group	68.9			70.3
Repair Systems & Information Group	85.8			79.1
Financial Services	56.9			52.5
Segment operating earnings	258.1			243.8
Corporate	(23.5		)	(21.1		)
Operating earnings	$	234.6		$	222.7
Interest expense	(13.6		)	(12.7		)
Other income (expense) – net	2.8			(2.4		)
Earnings before income taxes and equity earnings	$	223.8		$	207.6



(Amounts in millions)	March 31, 2018			December 30, 2017
Assets:
Commercial & Industrial Group	$	1,136.2		$	1,113.9
Snap-on Tools Group	762.0			714.3
Repair Systems & Information Group	1,311.5			1,314.3
Financial Services	1,968.7			1,971.8
Total assets from reportable segments	$	5,178.4		$	5,114.3
Corporate	204.5			200.6
Elimination of intersegment receivables	(65.3		)	(65.8		)
Total assets	$	5,317.6		$	5,249.1