Snap-on Announces Fourth Quarter And Full Year 2012 Results
Stock quotes in this article:
SNA
Conference Call and Webcast February 7, 2013, at 9:00 a.m. Central Time
A discussion of this release will be webcast on Thursday, February 7, 2013, at 9:00 a.m. Central Time, and a replay will be available for at least 10 days following the call. To access the webcast and supporting materials, visit www.snapon.com/sna and click on the link toward the bottom of the page. Additional detail about Snap-on is also available on the Snap-on web site.
About Snap-on
Snap-on Incorporated is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, including aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education. Snap-on also derives income from various financing programs to facilitate the sales of its products. Products and services are sold through the company’s franchisee, company-direct, distributor and internet channels. Founded in 1920, Snap-on is a $2.9 billion, S&P 500 company headquartered in Kenosha, Wisconsin.
Forward-looking Statements Statements in this news release that are not historical facts, including statements that (i) are in the future tense; (ii) include the words “expects,” “anticipates,” “intends,” “approximates,” or similar words that reference Snap-on or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on’s or management’s future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Snap-on cautions the reader that this news release contains statements, including earnings projections, that are forward-looking in nature and were developed by management in good faith and, accordingly, are subject to risks and uncertainties regarding Snap-on’s expected results that could cause (and in some cases have caused) actual results to differ materially from those described or contemplated in any forward-looking statement. Factors that may cause the company’s actual results to differ materially from those contained in the forward-looking statements include those found in the company’s reports filed with the Securities and Exchange Commission, including the information under the “Safe Harbor” and “Risk Factors” headings in its Annual Report on Form 10-K for the fiscal year ended December 31, 2011, which are incorporated herein by reference. Snap-on disclaims any responsibility to update any forward-looking statement provided in this news release, except as required by law. For additional information, please visit www.snapon.com.| SNAP-ON INCORPORATED | ||||||||||||||||
| Condensed Consolidated Statements of Earnings | ||||||||||||||||
| (Amounts in millions, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Fourth Quarter | Full Year | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net sales | $ | 753.2 | $ | 736.6 | $ | 2,937.9 | $ | 2,854.2 | ||||||||
| Cost of goods sold | (401.2 | ) | (400.8 | ) | (1,547.9 | ) | (1,516.3 | ) | ||||||||
| Gross profit | 352.0 | 335.8 | 1,390.0 | 1,337.9 | ||||||||||||
| Operating expenses | (240.6 | ) | (232.0 | ) | (980.3 | ) | (953.7 | ) | ||||||||
| Operating earnings before financial services | 111.4 | 103.8 | 409.7 | 384.2 | ||||||||||||
| Financial services revenue | 42.9 | 35.5 | 161.3 | 124.3 | ||||||||||||
| Financial services expenses | (13.6 | ) | (13.4 | ) | (54.6 | ) | (51.4 | ) | ||||||||
| Operating earnings from financial services | ||||||||||||||||
| before arbitration settlement | 29.3 | 22.1 | 106.7 | 72.9 | ||||||||||||
| Arbitration settlement | - | - | - | 18.0 | ||||||||||||
| Operating earnings from financial services | 29.3 | 22.1 | 106.7 | 90.9 | ||||||||||||
| Operating earnings | 140.7 | 125.9 | 516.4 | 475.1 | ||||||||||||
| Interest expense | (14.4 | ) | (13.5 | ) | (55.8 | ) | (61.2 | ) | ||||||||
| Other income (expense) – net | 0.1 | (1.0 | ) | (0.4 | ) | (1.0 | ) | |||||||||
| Earnings before income taxes and equity earnings | 126.4 | 111.4 | 460.2 | 412.9 | ||||||||||||
| Income tax expense | (39.8 | ) | (36.2 | ) | (148.2 | ) | (133.7 | ) | ||||||||
| Earnings before equity earnings | 86.6 | 75.2 | 312.0 | 279.2 | ||||||||||||
| Equity earnings, net of tax | 0.1 | 0.9 | 2.6 | 4.6 | ||||||||||||
| Net earnings | 86.7 | 76.1 | 314.6 | 283.8 | ||||||||||||
| Net earnings attributable to noncontrolling interests | (2.1 | ) | (1.8 | ) | (8.5 | ) | (7.5 | ) | ||||||||
| Net earnings attributable to Snap-on Inc. | $ | 84.6 | $ | 74.3 | $ | 306.1 | $ | 276.3 | ||||||||
| Net earnings per share attributable to Snap-on Inc.: | ||||||||||||||||
| Basic | $ | 1.45 | $ | 1.28 | $ | 5.26 | $ | 4.75 | ||||||||
| Diluted | 1.43 | 1.27 | 5.20 | 4.71 | ||||||||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 58.2 | 58.2 | 58.2 | 58.2 | ||||||||||||
| Effect of dilutive options | 0.8 | 0.5 | 0.7 | 0.5 | ||||||||||||
| Diluted | 59.0 | 58.7 | 58.9 | 58.7 | ||||||||||||
| SNAP-ON INCORPORATED | ||||||||||||||||||
| Supplemental Segment Information | ||||||||||||||||||
| (Amounts in millions) | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Fourth Quarter | Full Year | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Net sales: | ||||||||||||||||||
| Commercial & Industrial Group | $ | 275.6 | $ | 295.4 | $ | 1,125.9 | $ | 1,125.8 | ||||||||||
| Snap-on Tools Group | 321.6 | 292.8 | 1,272.0 | 1,153.4 | ||||||||||||||
| Repair Systems & Information Group | 241.6 | 236.5 | 917.1 | 920.6 | ||||||||||||||
| Segment net sales | 838.8 | 824.7 | 3,315.0 | 3,199.8 | ||||||||||||||
| Intersegment eliminations | (85.6 | ) | (88.1 | ) | (377.1 | ) | (345.6 | ) | ||||||||||
| Total net sales | $ | 753.2 | $ | 736.6 | $ | 2,937.9 | $ | 2,854.2 | ||||||||||
| Financial Services revenue | 42.9 | 35.5 | 161.3 | 124.3 | ||||||||||||||
| Total revenues | $ | 796.1 | $ | 772.1 | $ | 3,099.2 | $ | 2,978.5 | ||||||||||
| Operating earnings: | ||||||||||||||||||
| Commercial & Industrial Group | $ | 31.9 | $ | 33.0 | $ | 127.3 | $ | 123.4 | ||||||||||
| Snap-on Tools Group | 45.6 | 39.6 | 176.4 | 158.5 | ||||||||||||||
| Repair Systems & Information Group | 55.4 | 49.2 | 205.7 | 184.7 | ||||||||||||||
| Financial Services* | 29.3 | 22.1 | 106.7 | 90.9 | ||||||||||||||
| Segment operating earnings | 162.2 | 143.9 | 616.1 | 557.5 | ||||||||||||||
| Corporate | (21.5 | ) | (18.0 | ) | (99.7 | ) | (82.4 | ) | ||||||||||
| Operating earnings | $ | 140.7 | $ | 125.9 | $ | 516.4 | $ | 475.1 | ||||||||||
| Interest expense | (14.4 | ) | (13.5 | ) | (55.8 | ) | (61.2 | ) | ||||||||||
| Other income (expense) – net | 0.1 | (1.0 | ) | (0.4 | ) | (1.0 | ) | |||||||||||
| Earnings before income taxes | ||||||||||||||||||
| and equity earnings | $ | 126.4 | $ | 111.4 | $ | 460.2 | $ | 412.9 | ||||||||||
| * | Financial Services' operating earnings for the full year 2011 includes an $18.0 million pretax arbitration settlement gain from a second quarter 2011 arbitration settlement. | |||||||||||||||||
| SNAP-ON INCORPORATED | |||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||
| (Amounts in millions, except per share data) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Fourth Quarter | Full Year | ||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||
| AS REPORTED | |||||||||||||||||
| Net sales | $ | 753.2 | $ | 736.6 | $ | 2,937.9 | $ | 2,854.2 | |||||||||
| Financial services revenue | 42.9 | 35.5 | 161.3 | 124.3 | |||||||||||||
| Total revenues | $ | 796.1 | $ | 772.1 | $ | 3,099.2 | $ | 2,978.5 | |||||||||
| PRO FORMA INFORMATION | |||||||||||||||||
| 1) Operating earnings | |||||||||||||||||
| As reported | $ | 140.7 | $ | 125.9 | $ | 516.4 | $ | 475.1 | |||||||||
| Less: Arbitration settlement gain | - | - | - | (18.0 | ) | ||||||||||||
| Excluding arbitration settlement gain | $ | 140.7 | $ | 125.9 | $ | 516.4 | $ | 457.1 | |||||||||
| Operating earnings as a percentage of total revenues | |||||||||||||||||
| As reported | 17.7 | % | 16.3 | % | 16.7 | % | 16.0 | % | |||||||||
| Excluding arbitration settlement gain | 17.7 | % | 16.3 | % | 16.7 | % | 15.3 | % | |||||||||
| 2) Arbitration settlement gain | |||||||||||||||||
| As reported | $ | - | $ | - | $ | - | $ | 18.0 | |||||||||
| Income tax expense | - | - | - | (6.9 | ) | ||||||||||||
| Arbitration settlement gain, net of tax | $ | - | $ | - | $ | - | $ | 11.1 | |||||||||
| Weighted-average shares outstanding - Diluted | 59.0 | 58.7 | 58.9 | 58.7 | |||||||||||||
| Diluted EPS - Arbitration settlement gain | $ | - | $ | - | $ | - | $ | 0.19 | |||||||||
| 3) Net earnings attributable to Snap-on Incorporated | |||||||||||||||||
| As reported | $ | 84.6 | $ | 74.3 | $ | 306.1 | $ | 276.3 | |||||||||
| Less: Arbitration settlement gain, net of tax | - | - | - | (11.1 | ) | ||||||||||||
| Excluding arbitration settlement gain | $ | 84.6 | $ | 74.3 | $ | 306.1 | $ | 265.2 | |||||||||
| 4) Diluted EPS | |||||||||||||||||
| As reported | $ | 1.43 | $ | 1.27 | $ | 5.20 | $ | 4.71 | |||||||||
| Less: Diluted EPS - Arbitration settlement gain | - | - | - | (0.19 | ) | ||||||||||||
| Excluding arbitration settlement gain | $ | 1.43 | $ | 1.27 | $ | 5.20 | $ | 4.52 | |||||||||
| Snap-on is providing the above reconciliations of non-GAAP financial measures (excluding last year's $18.0 million pretax arbitration settlement gain recorded in the second quarter of 2011) as management believes that these non-GAAP measures provide a more meaningful year-over-year comparison of the company's operating performance. | |||||||||||||||||
| SNAP-ON INCORPORATED | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Amounts in millions) | ||||||||
| (unaudited) | ||||||||
| Fiscal Year End | ||||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 214.5 | $ | 185.6 | ||||
| Trade and other accounts receivable – net | 497.9 | 463.5 | ||||||
| Finance receivables – net | 323.1 | 277.2 | ||||||
| Contract receivables – net | 62.7 | 49.7 | ||||||
| Inventories – net | 404.2 | 386.4 | ||||||
| Deferred income tax assets | 81.8 | 92.6 | ||||||
| Prepaid expenses and other assets | 84.8 | 75.7 | ||||||
| Total current assets | 1,669.0 | 1,530.7 | ||||||
| Property and equipment – net | 375.2 | 352.9 | ||||||
| Deferred income tax assets | 110.4 | 125.2 | ||||||
| Long-term finance receivables – net | 494.6 | 431.8 | ||||||
| Long-term contract receivables – net | 194.4 | 165.1 | ||||||
| Goodwill | 807.4 | 795.8 | ||||||
| Other intangibles – net | 187.2 | 188.3 | ||||||
| Other assets | 64.1 | 83.1 | ||||||
| Total assets | $ | 3,902.3 | $ | 3,672.9 | ||||
| Liabilities and Equity | ||||||||
| Notes payable | $ | 5.2 | $ | 16.2 | ||||
| Accounts payable | 142.5 | 124.6 | ||||||
| Accrued benefits | 50.6 | 48.8 | ||||||
| Accrued compensation | 88.3 | 91.0 | ||||||
| Franchisee deposits | 54.7 | 47.3 | ||||||
| Other accrued liabilities | 247.9 | 255.9 | ||||||
| Total current liabilities | 589.2 | 583.8 | ||||||
| Long-term debt | 970.4 | 967.9 | ||||||
| Deferred income tax liabilities | 127.1 | 108.1 | ||||||
| Retiree health care benefits | 48.4 | 52.8 | ||||||
| Pension liabilities | 260.7 | 317.7 | ||||||
| Other long-term liabilities | 87.5 | 95.3 | ||||||
| Total liabilities | 2,083.3 | 2,125.6 | ||||||
| Equity | ||||||||
| Shareholders' equity attributable to Snap-on Inc. | ||||||||
| Common stock | 67.4 | 67.3 | ||||||
| Additional paid-in capital | 204.6 | 181.4 | ||||||
| Retained earnings | 2,067.0 | 1,843.7 | ||||||
| Accumulated other comprehensive loss | (124.2 | ) | (174.6 | ) | ||||
| Treasury stock at cost | (412.7 | ) | (386.9 | ) | ||||
| Total shareholders' equity attributable to Snap-on Inc. | 1,802.1 | 1,530.9 | ||||||
| Noncontrolling interests | 16.9 | 16.4 | ||||||
| Total equity | 1,819.0 | 1,547.3 | ||||||
| Total liabilities and equity | $ | 3,902.3 | $ | 3,672.9 | ||||
| SNAP-ON INCORPORATED | ||||||||
| Condensed Consolidated Statements of Cash Flow | ||||||||
| (Amounts in millions) | ||||||||
| (unaudited) | ||||||||
| Fourth Quarter | ||||||||
| 2012 | 2011 | |||||||
| Operating activities: | ||||||||
| Net earnings | $ | 86.7 | $ | 76.1 | ||||
| Adjustments to reconcile net earnings to net cash provided (used) by | ||||||||
| operating activities: | ||||||||
| Depreciation | 12.6 | 12.5 | ||||||
| Amortization of other intangibles | 6.9 | 6.7 | ||||||
| Provision for losses on finance receivables | 4.9 | 4.6 | ||||||
| Provision for losses on non-finance receivables | 5.0 | 0.3 | ||||||
| Stock-based compensation expense | 7.1 | 7.9 | ||||||
| Excess tax benefits from stock-based compensation | (3.2 | ) | (0.6 | ) | ||||
| Deferred income tax provision | 25.7 | 14.3 | ||||||
| Gain on sale of assets | - | (0.1 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in trade and other accounts receivable | (24.5 | ) | (21.5 | ) | ||||
| Increase in contract receivables | (3.2 | ) | (8.2 | ) | ||||
| Decrease in inventories | 14.0 | 8.3 | ||||||
| Decrease (increase) in prepaid and other assets | 7.2 | (1.7 | ) | |||||
| Decrease in accounts payable | (7.2 | ) | (7.5 | ) | ||||
| Decrease in accruals and other liabilities | (29.1 | ) | (18.8 | ) | ||||
| Net cash provided by operating activities | 102.9 | 72.3 | ||||||
| Investing activities: | ||||||||
| Additions to finance receivables | (143.5 | ) | (132.6 | ) | ||||
| Collections of finance receivables | 116.6 | 97.2 | ||||||
| Capital expenditures | (19.9 | ) | (14.6 | ) | ||||
| Disposal of property and equipment | 0.2 | 0.7 | ||||||
| Proceeds from sale of equity investment | 27.0 | - | ||||||
| Other | 0.1 | (0.1 | ) | |||||
| Net cash used by investing activities | (19.5 | ) | (49.4 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from short-term borrowings | 4.8 | 4.5 | ||||||
| Repayments of short-term borrowings | (16.2 | ) | (1.6 | ) | ||||
| Net decrease in other short-term borrowings | (2.3 | ) | (0.8 | ) | ||||
| Cash dividends paid | (22.1 | ) | (20.2 | ) | ||||
| Purchase of treasury stock | (16.3 | ) | - | |||||
| Proceeds from stock purchase and option plans | 6.5 | 0.6 | ||||||
| Excess tax benefits from stock-based compensation | 3.2 | 0.6 | ||||||
| Other | (2.5 | ) | (5.2 | ) | ||||
| Net cash used by financing activities | (44.9 | ) | (22.1 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (0.1 | ) | (0.9 | ) | ||||
| Increase (decrease) in cash and cash equivalents | 38.4 | (0.1 | ) | |||||
| Cash and cash equivalents at beginning of period | 176.1 | 185.7 | ||||||
| Cash and cash equivalents at end of year | $ | 214.5 | $ | 185.6 | ||||
| Supplemental cash flow disclosures: | ||||||||
| Cash paid for interest | $ | (1.8 | ) | $ | (0.4 | ) | ||
| Net cash paid for income taxes | (33.7 | ) | (20.0 | ) | ||||
| SNAP-ON INCORPORATED | ||||||||
| Condensed Consolidated Statements of Cash Flow | ||||||||
| (Amounts in millions) | ||||||||
| (unaudited) | ||||||||
| Full Year | ||||||||
| 2012 | 2011 | |||||||
| Operating activities: | ||||||||
| Net earnings | $ | 314.6 | $ | 283.8 | ||||
| Adjustments to reconcile net earnings to net cash provided (used) by | ||||||||
| operating activities: | ||||||||
| Depreciation | 50.2 | 49.3 | ||||||
| Amortization of other intangibles | 26.5 | 25.3 | ||||||
| Provision for losses on finance receivables | 18.7 | 13.3 | ||||||
| Provision for losses on non-finance receivables | 12.6 | 12.9 | ||||||
| Stock-based compensation expense | 32.1 | 20.3 | ||||||
| Excess tax benefits from stock-based compensation | (8.2 | ) | (2.8 | ) | ||||
| Deferred income tax provision | 29.3 | 5.1 | ||||||
| Gain on sale of assets | (0.9 | ) | (0.1 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in trade and other accounts receivable | (43.4 | ) | (36.8 | ) | ||||
| Increase in contract receivables | (41.1 | ) | (51.5 | ) | ||||
| Increase in inventories | (13.4 | ) | (60.9 | ) | ||||
| Increase in prepaid and other assets | (24.8 | ) | (35.7 | ) | ||||
| Increase (decrease) in accounts payable | 16.6 | (21.5 | ) | |||||
| Decrease in accruals and other liabilities | (39.5 | ) | (72.2 | ) | ||||
| Net cash provided by operating activities | 329.3 | 128.5 | ||||||
| Investing activities: | ||||||||
| Additions to finance receivables | (569.6 | ) | (519.1 | ) | ||||
| Collections of finance receivables | 445.5 | 356.9 | ||||||
| Capital expenditures | (79.4 | ) | (61.2 | ) | ||||
| Disposal of property and equipment | 2.6 | 3.7 | ||||||
| Proceeds from sale of equity investment | 27.0 | - | ||||||
| Other | 0.8 | 0.1 | ||||||
| Net cash used by investing activities | (173.1 | ) | (219.6 | ) | ||||
| Financing activities: | ||||||||
| Repayment of long-term debt | - | (200.0 | ) | |||||
| Proceeds from short-term borrowings | 16.0 | 19.7 | ||||||
| Repayments of short-term borrowings | (30.3 | ) | (17.9 | ) | ||||
| Net increase (decrease) in other short-term borrowings | 3.1 | (1.2 | ) | |||||
| Cash dividends paid | (81.5 | ) | (76.7 | ) | ||||
| Purchase of treasury stock | (78.1 | ) | (37.4 | ) | ||||
| Proceeds from stock purchase and option plans | 46.8 | 25.7 | ||||||
| Excess tax benefits from stock-based compensation | 8.2 | 2.8 | ||||||
| Other | (11.2 | ) | (8.7 | ) | ||||
| Net cash used by financing activities | (127.0 | ) | (293.7 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (0.3 | ) | (1.8 | ) | ||||
| Increase (decrease) in cash and cash equivalents | 28.9 | (386.6 | ) | |||||
| Cash and cash equivalents at beginning of year | 185.6 | 572.2 | ||||||
| Cash and cash equivalents at end of year | $ | 214.5 | $ | 185.6 | ||||
| Supplemental cash flow disclosures: | ||||||||
| Cash paid for interest | $ | (55.6 | ) | $ | (59.3 | ) | ||
| Net cash paid for income taxes | (93.6 | ) | (128.8 | ) | ||||
| SNAP-ON INCORPORATED | ||||||||||||||||
| Supplemental Consolidating Data - Condensed Statements of Earnings | ||||||||||||||||
| (Amounts in millions) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Operations* | Financial Services | |||||||||||||||
| Fourth Quarter | Fourth Quarter | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net sales | $ | 753.2 | $ | 736.6 | $ | - | $ | - | ||||||||
| Cost of goods sold | (401.2 | ) | (400.8 | ) | - | - | ||||||||||
| Gross profit | 352.0 | 335.8 | - | - | ||||||||||||
| Operating expenses | (240.6 | ) | (232.0 | ) | - | - | ||||||||||
| Operating earnings before financial services | 111.4 | 103.8 | - | - | ||||||||||||
| Financial services revenue | - | - | 42.9 | 35.5 | ||||||||||||
| Financial services expenses | - | - | (13.6 | ) | (13.4 | ) | ||||||||||
| Operating earnings from financial services | - | - | 29.3 | 22.1 | ||||||||||||
| Operating earnings | 111.4 | 103.8 | 29.3 | 22.1 | ||||||||||||
| Interest expense | (13.5 | ) | (13.3 | ) | (0.9 | ) | (0.2 | ) | ||||||||
| Intersegment interest income (expense) – net | 11.1 | 9.6 | (11.1 | ) | (9.6 | ) | ||||||||||
| Other income (expense) – net | - | (1.0 | ) | 0.1 | - | |||||||||||
| Earnings before income taxes and equity earnings | 109.0 | 99.1 | 17.4 | 12.3 | ||||||||||||
| Income tax expense | (33.5 | ) | (31.7 | ) | (6.3 | ) | (4.5 | ) | ||||||||
| Earnings before equity earnings | 75.5 | 67.4 | 11.1 | 7.8 | ||||||||||||
| Financial services – net earnings | ||||||||||||||||
| attributable to Snap-on Inc. | 11.1 | 7.8 | - | - | ||||||||||||
| Equity earnings, net of tax | 0.1 | 0.9 | - | - | ||||||||||||
| Net earnings | 86.7 | 76.1 | 11.1 | 7.8 | ||||||||||||
| Net earnings attributable to noncontrolling interests | (2.1 | ) | (1.8 | ) | - | - | ||||||||||
| Net earnings attributable to Snap-on Inc. | $ | 84.6 | $ | 74.3 | $ | 11.1 | $ | 7.8 | ||||||||
| * Snap-on Inc. with Financial Services on the equity method. | ||||||||||||||||
| Transactions between Operations and Financial Services were eliminated to arrive at the consolidated financial statements. | ||||||||||||||||
| SNAP-ON INCORPORATED | ||||||||||||||||
| Supplemental Consolidating Data - Condensed Statements of Earnings | ||||||||||||||||
| (Amounts in millions) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Operations* | Financial Services | |||||||||||||||
| Full Year | Full Year | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net sales | $ | 2,937.9 | $ | 2,854.2 | $ | - | $ | - | ||||||||
| Cost of goods sold | (1,547.9 | ) | (1,516.3 | ) | - | - | ||||||||||
| Gross profit | 1,390.0 | 1,337.9 | - | - | ||||||||||||
| Operating expenses | (980.3 | ) | (953.7 | ) | - | - | ||||||||||
| Operating earnings before financial services | 409.7 | 384.2 | - | - | ||||||||||||
| Financial services revenue | - | - | 161.3 | 124.3 | ||||||||||||
| Financial services expenses | - | - | (54.6 | ) | (51.4 | ) | ||||||||||
| Operating earnings from financial services | ||||||||||||||||
| before arbitration settlement | - | - | 106.7 | 72.9 | ||||||||||||
| Arbitration settlement | - | - | - | 18.0 | ||||||||||||
| Operating earnings from financial services | - | - | 106.7 | 90.9 | ||||||||||||
| Operating earnings | 409.7 | 384.2 | 106.7 | 90.9 | ||||||||||||
| Interest expense | (54.0 | ) | (60.0 | ) | (1.8 | ) | (1.2 | ) | ||||||||
| Intersegment interest income (expense) – net | 42.4 | 35.8 | (42.4 | ) | (35.8 | ) | ||||||||||
| Other income (expense) – net | (0.4 | ) | (1.0 | ) | - | - | ||||||||||
| Earnings before income taxes and equity earnings | 397.7 | 359.0 | 62.5 | 53.9 | ||||||||||||
| Income tax expense | (125.3 | ) | (113.9 | ) | (22.9 | ) | (19.8 | ) | ||||||||
| Earnings before equity earnings | 272.4 | 245.1 | 39.6 | 34.1 | ||||||||||||
| Financial services – net earnings | ||||||||||||||||
| attributable to Snap-on Inc. | 39.6 | 34.1 | - | - | ||||||||||||
| Equity earnings, net of tax | 2.6 | 4.6 | - | - | ||||||||||||
| Net earnings | 314.6 | 283.8 | 39.6 | 34.1 | ||||||||||||
| Net earnings attributable to noncontrolling interests | (8.5 | ) | (7.5 | ) | - | - | ||||||||||
| Net earnings attributable to Snap-on Inc. | $ | 306.1 | $ | 276.3 | $ | 39.6 | $ | 34.1 | ||||||||
| * Snap-on Inc. with Financial Services on the equity method. | ||||||||||||||||
| Transactions between Operations and Financial Services were eliminated to arrive at the consolidated financial statements. | ||||||||||||||||
| SNAP-ON INCORPORATED | ||||||||||||
| Supplemental Consolidating Data - Condensed Balance Sheets | ||||||||||||
| (Amounts in millions) | ||||||||||||
| (unaudited) | ||||||||||||
| Operations* | Financial Services | |||||||||||
| Fiscal Year End | Fiscal Year End | |||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 211.2 | $ | 181.1 | $ | 3.3 | $ | 4.5 | ||||
| Intersegment receivables | 14.1 | 10.8 | - | - | ||||||||
| Trade and other accounts receivable – net | 497.5 | 463.3 | 0.4 | 0.2 | ||||||||
| Finance receivables – net | - | - | 323.1 | 277.2 | ||||||||
| Contract receivables – net | 7.4 | 6.5 | 55.3 | 43.2 | ||||||||
| Inventories – net | 404.2 | 386.4 | - | - | ||||||||
| Deferred income tax assets | 68.8 | 90.0 | 13.0 | 2.6 | ||||||||
| Prepaid expenses and other assets | 88.3 | 78.1 | 1.0 | 0.9 | ||||||||
| Total current assets | 1,291.5 | 1,216.2 | 396.1 | 328.6 | ||||||||
| Property and equipment – net | 373.2 | 351.9 | 2.0 | 1.0 | ||||||||
| Investment in Financial Services | 165.3 | 142.0 | - | - | ||||||||
| Deferred income tax assets | 110.2 | 119.8 | 0.2 | 5.4 | ||||||||
| Long-term finance receivables – net | - | - | 494.6 | 431.8 | ||||||||
| Long-term contract receivables – net | 12.1 | 9.1 | 182.3 | 156.0 | ||||||||
| Goodwill | 807.4 | 795.8 | - | - | ||||||||
| Other intangibles – net | 187.2 | 188.3 | - | - | ||||||||
| Other assets | 65.3 | 83.7 | 1.1 | 1.0 | ||||||||
| Total assets | $ | 3,012.2 | $ | 2,906.8 | $ | 1,076.3 | $ | 923.8 | ||||
| Liabilities and Equity | ||||||||||||
| Notes payable | $ | 5.2 | $ | 16.2 | $ | - | $ | - | ||||
| Accounts payable | 142.1 | 124.0 | 0.4 | 0.6 | ||||||||
| Intersegment payables | - | - | 14.1 | 10.8 | ||||||||
| Accrued benefits | 50.6 | 48.8 | - | - | ||||||||
| Accrued compensation | 84.9 | 87.1 | 3.4 | 3.9 | ||||||||
| Franchisee deposits | 54.7 | 47.3 | - | - | ||||||||
| Other accrued liabilities | 207.8 | 229.7 | 46.9 | 31.1 | ||||||||
| Total current liabilities | 545.3 | 553.1 | 64.8 | 46.4 | ||||||||
| Long-term debt and intersegment long-term debt | 143.2 | 257.6 | 827.2 | 710.3 | ||||||||
| Deferred income tax liabilities | 125.7 | 108.0 | 1.4 | 0.1 | ||||||||
| Retiree health care benefits | 48.4 | 52.8 | - | - | ||||||||
| Pension liabilities | 260.7 | 317.7 | - | - | ||||||||
| Other long-term liabilities | 69.9 | 70.3 | 17.6 | 25.0 | ||||||||
| Total liabilities | 1,193.2 | 1,359.5 | 911.0 | 781.8 | ||||||||
| Total shareholders' equity attributable to Snap-on Inc. | 1,802.1 | 1,530.9 | 165.3 | 142.0 | ||||||||
| Noncontrolling interests | 16.9 | 16.4 | - | - | ||||||||
| Total equity | 1,819.0 | 1,547.3 | 165.3 | 142.0 | ||||||||
| Total liabilities and equity | $ | 3,012.2 | $ | 2,906.8 | $ | 1,076.3 | $ | 923.8 | ||||
| * Snap-on Inc. with Financial Services on the equity method. | ||||||||||||
| Transactions between Operations and Financial Services were eliminated to arrive at the consolidated financial statements. | ||||||||||||
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