Operating earnings before financial services increases 32% on 8.6%
sales increase;
Financial services transition
continues on track;
EPS of $0.63 for the first
quarter
KENOSHA, Wis., Apr 20, 2010 (BUSINESS WIRE) --Snap-on Incorporated (NYSE: SNA), a leading global innovator,
manufacturer and marketer of tools, equipment, diagnostics, repair
information and systems solutions for professional users, today
announced operating results for the first quarter of 2010.
-
Sales of $621.6 million increased $49.0 million, or 8.6%, from 2009
levels; excluding $24.4 million of foreign currency translation,
organic sales increased 4.1%.
-
Gross profit of $287.6 million improved to 46.3% of sales compared
with 45.2% a year ago.
-
Operating earnings before financial services of $71.7 million
increased $17.4 million, or 32.0%, from prior-year levels and, as a
percentage of sales, improved to 11.6% compared with 9.5% a year ago.
-
Net earnings of $36.8 million, or $0.63 per diluted share, increased
from $34.8 million, or $0.60 per diluted share, a year ago, despite
$8.6 million, or $0.15 per diluted share, of lower year-over-year
financial services net earnings due to the July 2009 termination of
the joint venture with CIT Group Inc.
"We are encouraged by Snap-on's first quarter results and by some of the
performance trends achieved during the quarter," said Nick Pinchuk,
Snap-on chairman and chief executive officer. "The higher sales combined
with a 210 basis point improvement in operating earnings margin before
financial services are evidence of the benefits being realized through
our steadfast commitment to the Snap-on Value Creation Processes. We
believe that this commitment, coupled with continuing progress on our
strategic initiatives to enhance the franchisee network, to expand in
the auto repair garage, to extend in critical industries and to build in
emerging markets, will put Snap-on in a strong position as the global
economy begins to recover. Overall, the first quarter reflects
significant effort and achievement across the company. In that regard, I
thank our franchisees and our associates worldwide for their continued
contributions and commitment."
Commercial & Industrial Group segment sales of $297.5 million
in the first quarter increased $37.7 million, or 14.5%, from 2009
levels. Excluding $12.1 million of foreign currency translation, organic
sales increased $25.6 million, or 9.4%, reflecting continued growth in
emerging markets, higher volumes of equipment and increased sales to
industrial customers.
Operating earnings of $30.4 million in the quarter increased $12.9
million from 2009 levels primarily due to the higher sales, savings from
ongoing efficiency and productivity (collectively, "Rapid Continuous
Improvement" or "RCI") initiatives, and benefits from prior
restructuring programs. As a percentage of sales, operating earnings of
10.2% in the first quarter of 2010 compared favorably with 6.7% a year
ago.
Snap-on Tools Group segment sales of $264.0 million in the
quarter increased $21.6 million, or 8.9%, from 2009 levels; excluding
$10.7 million of foreign currency translation, organic sales increased
4.3%.
Operating earnings of $28.2 million in the quarter increased $7.5
million from 2009 levels primarily due to higher sales and favorable
currency effects, partially offset by increased inventory-related and
other expenses. As a percentage of sales, operating earnings of 10.7% in
the first quarter of 2010 compared favorably with 8.5% a year ago.
Diagnostics & Information Group segment sales of $135.1
million in the quarter increased $2.6 million, or 2.0%, from 2009
levels; excluding $2.0 million of foreign currency translation, organic
sales increased slightly. The year-over-year sales increase is primarily
due to higher sales of diagnostics and information products and
increased facilitation program sales, partially offset by anticipated
lower electronic parts catalog sales to original equipment manufacturer
(OEM) dealerships.
Operating earnings of $30.8 million in the quarter increased $5.6
million from 2009 levels primarily due to contributions from a more
favorable sales mix of higher-margin diagnostics and software products,
and savings from ongoing RCI and restructuring initiatives. As a
percentage of sales, operating earnings in the quarter improved to 22.8%
as compared to 19.0% last year.
Financial Services revenue of $9.7 million in the quarter
declined $10.3 million from first quarter 2009 levels, but improved
sequentially from $6.7 million in the fourth quarter of 2009. The first
quarter 2010 operating loss of $1.7 million was down from operating
income of $10.0 million last year but improved sequentially from an
operating loss of $3.8 million in the fourth quarter of 2009.
As previously communicated, on July 16, 2009, Snap-on terminated the
financial services operating agreement that it had with CIT Group Inc.
(CIT) relating to the parties' Snap-on Credit LLC (SOC) joint venture.
The change from recognizing gains on contracts sold to CIT, to
recognizing the interest yield on the on-book finance portfolio, was a
primary factor in the year-over-year decline in both financial services
revenues and operating income. Snap-on expects that operating income
from financial services, which is before interest expense, will improve
as the on-book finance portfolio grows. Snap-on continues to expect that
the full year incremental cash requirements for SOC in 2010 will
approximate $300 million.
Corporate expenses of $17.7 million in the first quarter
increased $8.6 million from prior-year levels primarily due to $5.0
million of expected higher pension expense, largely due to lower than
projected asset returns in previous years related to the U.S. pension
plan, and $3.5 million of higher stock-based (mark to market) incentive
and other compensation expense.
Outlook
Snap-on recorded $3.2 million in restructuring costs during the first
quarter of 2010 and continues to expect that it will incur full-year
2010 restructuring costs of approximately $18 million to $22 million.
The company believes that it will continue to realize further benefits
in 2010 from its RCI, sourcing and other cost reduction initiatives.
Snap-on also anticipates continuing with its planned strategic
investments, including expansion in emerging growth markets. The company
continues to anticipate capital expenditures in 2010 to be in a range of
$55 million to $60 million, of which $5.7 million was incurred in the
first quarter. The company continues to expect to incur $5 million per
quarter of higher year-over year pension expense in 2010. For full year
2010, the anticipated effective income tax rate will approximate 34.5%.
Snap-on is encouraged by its first quarter 2010 results and with trends
in certain markets and businesses; however, challenges remain due to
ongoing difficulties in the current global economy. As a result, the
company intends to continue its efforts of striking a balance between
investing in and capturing growth opportunities with the need for cost
reduction actions beyond those already implemented.
Conference Call and Webcast April 20,
2010, at 9:00 a.m. Central Time
A discussion of this release will be webcast on Tuesday, April 20, 2010,
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, 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. 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 customers in industry,
government, agriculture, aviation and natural resources. Products and
services are sold through the company's franchisee, company-direct,
distributor and Internet channels. Founded in 1920, Snap-on is a $2.4
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 January 2, 2010,
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
April 3, |
|
April 4, |
|
|
2010 |
|
2009 |
|
|
|
|
|
|
Net sales
|
|
$
|
621.6
|
|
|
$
|
572.6
|
|
|
Cost of goods sold
|
|
|
(334.0
|
)
|
|
|
(313.9
|
)
|
| Gross profit |
|
|
287.6
|
|
|
|
258.7
|
|
|
Operating expenses
|
|
|
(215.9
|
)
|
|
|
(204.4
|
)
|
| Operating earnings before financial services |
|
|
71.7
|
|
|
|
54.3
|
|
|
|
|
|
|
|
Financial services revenue
|
|
|
9.7
|
|
|
|
20.0
|
|
|
Financial services expenses
|
|
|
(11.4
|
)
|
|
|
(10.0
|
)
|
| Operating earnings (loss) from financial services |
|
|
(1.7
|
)
|
|
|
10.0
|
|
|
|
|
|
|
| Operating earnings |
|
|
70.0
|
|
|
|
64.3
|
|
|
Interest expense
|
|
|
(14.0
|
)
|
|
|
(8.6
|
)
|
|
Other income (expense) - net
|
|
|
0.3
|
|
|
|
(0.3
|
)
|
| Earnings before income taxes and equity earnings |
|
|
56.3
|
|
|
|
55.4
|
|
|
Income tax expense
|
|
|
(19.0
|
)
|
|
|
(18.3
|
)
|
| Earnings before equity earnings |
|
|
37.3
|
|
|
|
37.1
|
|
|
Equity earnings, net of tax
|
|
|
0.7
|
|
|
|
0.1
|
|
| Net earnings |
|
|
38.0
|
|
|
|
37.2
|
|
|
Net earnings attributable to noncontrolling interests
|
|
|
(1.2
|
)
|
|
|
(2.4
|
)
|
| Net earnings attributable to Snap-on Inc. |
|
$
|
36.8
|
|
|
$
|
34.8
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings per share attributable to Snap-on Inc. |
|
|
|
|
|
Basic
|
|
$
|
0.64
|
|
|
$
|
0.61
|
|
|
Diluted
|
|
|
0.63
|
|
|
|
0.60
|
|
|
|
|
|
|
| Weighted-average shares outstanding |
|
|
|
|
|
Basic
|
|
|
57.8
|
|
|
|
57.5
|
|
|
Effect of dilutive options
|
|
|
0.5
|
|
|
|
0.3
|
|
|
Diluted
|
|
|
58.3
|
|
|
|
57.8
|
|
|
| SNAP-ON INCORPORATED |
| Supplemental Segment Information |
| (Amounts in millions) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
April 3, |
|
April 4, |
|
|
2010 |
|
2009 |
|
|
|
|
|
| Net sales |
|
|
|
|
|
Commercial & Industrial Group
|
|
$
|
297.5
|
|
|
$
|
259.8
|
|
|
Snap-on Tools Group
|
|
|
264.0
|
|
|
|
242.4
|
|
|
Diagnostics & Information Group
|
|
|
135.1
|
|
|
|
132.5
|
|
| Segment net sales |
|
|
696.6
|
|
|
|
634.7
|
|
|
Intersegment eliminations
|
|
|
(75.0
|
)
|
|
|
(62.1
|
)
|
| Total net sales |
|
$
|
621.6
|
|
|
$
|
572.6
|
|
|
Financial services revenue
|
|
|
9.7
|
|
|
|
20.0
|
|
| Total revenues |
|
$
|
631.3
|
|
|
$
|
592.6
|
|
|
|
|
|
|
| Operating earnings (loss) |
|
|
|
|
|
Commercial & Industrial Group
|
|
$
|
30.4
|
|
|
$
|
17.5
|
|
|
Snap-on Tools Group
|
|
|
28.2
|
|
|
|
20.7
|
|
|
Diagnostics & Information Group
|
|
|
30.8
|
|
|
|
25.2
|
|
|
Financial Services
|
|
|
(1.7
|
)
|
|
|
10.0
|
|
| Segment operating earnings |
|
|
87.7
|
|
|
|
73.4
|
|
|
Corporate
|
|
|
(17.7
|
)
|
|
|
(9.1
|
)
|
| Operating earnings |
|
$
|
70.0
|
|
|
$
|
64.3
|
|
|
Interest expense
|
|
|
(14.0
|
)
|
|
|
(8.6
|
)
|
|
Other income (expense) - net
|
|
|
0.3
|
|
|
|
(0.3
|
)
|
| Earnings before income taxes and equity earnings |
|
$
|
56.3
|
|
|
$
|
55.4
|
|
|
|
|
|
|
| SNAP-ON INCORPORATED |
| Condensed Consolidated Balance Sheets |
| (Amounts in millions) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
April 3, |
|
January 2, |
|
|
2010 |
|
2010 |
|
|
|
|
|
| Assets |
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
472.3
|
|
|
$
|
699.4
|
|
|
Trade and other accounts receivable - net
|
|
|
422.8
|
|
|
|
414.4
|
|
|
Contract receivables - net
|
|
|
34.8
|
|
|
|
32.9
|
|
|
Finance receivables - net
|
|
|
152.2
|
|
|
|
122.3
|
|
|
Inventories - net
|
|
|
291.0
|
|
|
|
274.7
|
|
|
Deferred income tax assets
|
|
|
66.8
|
|
|
|
69.5
|
|
|
Prepaid expenses and other assets
|
|
|
67.1
|
|
|
|
62.9
|
|
|
Total current assets
|
|
|
1,507.0
|
|
|
|
1,676.1
|
|
|
|
|
|
|
|
Property and equipment - net
|
|
|
337.3
|
|
|
|
347.8
|
|
|
Deferred income tax assets
|
|
|
91.1
|
|
|
|
88.2
|
|
|
Long-term contract receivables - net
|
|
|
79.1
|
|
|
|
70.7
|
|
|
Long-term finance receivables - net
|
|
|
229.8
|
|
|
|
177.9
|
|
|
Goodwill
|
|
|
796.5
|
|
|
|
814.3
|
|
|
Other intangibles - net
|
|
|
201.9
|
|
|
|
206.2
|
|
|
Other assets
|
|
|
63.5
|
|
|
|
66.2
|
|
| Total Assets |
|
$
|
3,306.2
|
|
|
$
|
3,447.4
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity |
|
|
|
|
|
Notes payable and current maturities of long-term debt
|
|
$
|
15.6
|
|
|
$
|
164.7
|
|
|
Accounts payable
|
|
|
123.8
|
|
|
|
119.8
|
|
|
Accrued benefits
|
|
|
47.6
|
|
|
|
48.7
|
|
|
Accrued compensation
|
|
|
50.3
|
|
|
|
64.8
|
|
|
Franchisee deposits
|
|
|
36.6
|
|
|
|
40.5
|
|
|
Other accrued liabilities
|
|
|
343.8
|
|
|
|
301.4
|
|
|
Total current liabilities
|
|
|
617.7
|
|
|
|
739.9
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
900.6
|
|
|
|
902.1
|
|
|
Deferred income tax liabilities
|
|
|
93.0
|
|
|
|
97.8
|
|
|
Retiree health care benefits
|
|
|
59.8
|
|
|
|
60.7
|
|
|
Pension liabilities
|
|
|
260.2
|
|
|
|
255.9
|
|
|
Other long-term liabilities
|
|
|
87.5
|
|
|
|
85.4
|
|
| Total Liabilities |
|
|
2,018.8
|
|
|
|
2,141.8
|
|
|
|
|
|
|
| Shareholders' Equity |
|
|
|
|
| Shareholders' Equity attributable to Snap-on Inc. |
|
|
|
|
|
Common stock
|
|
|
67.3
|
|
|
|
67.3
|
|
|
Additional paid-in capital
|
|
|
156.9
|
|
|
|
154.4
|
|
|
Retained earnings
|
|
|
1,548.3
|
|
|
|
1,528.9
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(110.7
|
)
|
|
|
(68.4
|
)
|
|
Treasury stock at cost
|
|
|
(390.0
|
)
|
|
|
(392.2
|
)
|
| Total Shareholders' Equity attributable to Snap-on Inc. |
|
|
1,271.8
|
|
|
|
1,290.0
|
|
|
Noncontrolling interests
|
|
|
15.6
|
|
|
|
15.6
|
|
| Total Shareholders' Equity |
|
|
1,287.4
|
|
|
|
1,305.6
|
|
| Total Liabilities and Shareholders' Equity |
|
$
|
3,306.2
|
|
|
$
|
3,447.4
|
|
|
|
|
|
|
| SNAP-ON INCORPORATED |
| Condensed Consolidated Statements of Cash Flow |
| (Amounts in millions) |
| (unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
April 3, |
|
April 4, |
|
|
2010 |
|
2009 |
|
|
|
|
|
| Operating activities |
|
|
|
|
|
Net earnings
|
|
$
|
38.0
|
|
|
$
|
37.2
|
|
|
Adjustments to reconcile net earnings to net cash provided (used) by
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
Depreciation
|
|
|
12.3
|
|
|
|
12.0
|
|
|
Amortization of other intangibles
|
|
|
5.9
|
|
|
|
6.1
|
|
|
Provision for losses on finance receivables
|
|
|
3.4
|
|
|
|
-
|
|
|
Stock-based compensation expense
|
|
|
3.0
|
|
|
|
-
|
|
|
Excess tax benefits from stock-based compensation
|
|
|
(0.2
|
)
|
|
|
-
|
|
|
Deferred income tax provision (benefit)
|
|
|
(4.2
|
)
|
|
|
14.6
|
|
|
Loss on sale of assets
|
|
|
-
|
|
|
|
0.1
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
(Increase) decrease in trade and other accounts receivable
|
|
|
(16.4
|
)
|
|
|
27.4
|
|
|
(Increase) decrease in contract receivables
|
|
|
(10.7
|
)
|
|
|
1.5
|
|
|
(Increase) decrease in inventories
|
|
|
(22.2
|
)
|
|
|
7.4
|
|
|
(Increase) decrease in prepaid and other assets
|
|
|
(6.9
|
)
|
|
|
(9.7
|
)
|
|
Increase (decrease) in accounts payable
|
|
|
6.6
|
|
|
|
(4.2
|
)
|
|
Increase (decrease) in accruals and other liabilities
|
|
|
1.8
|
|
|
|
(77.7
|
)
|
| Net cash provided by operating activities |
|
|
10.4
|
|
|
|
14.7
|
|
|
|
|
|
|
| Investing activities |
|
|
|
|
|
Additions to finance receivables
|
|
|
(110.7
|
)
|
|
|
-
|
|
|
Collections of finance receivables
|
|
|
45.5
|
|
|
|
-
|
|
|
Capital expenditures
|
|
|
(5.7
|
)
|
|
|
(14.1
|
)
|
|
Proceeds from disposal of property and equipment
|
|
|
0.1
|
|
|
|
0.2
|
|
|
Other
|
|
|
-
|
|
|
|
2.9
|
|
| Net cash used by investing activities |
|
|
(70.8
|
)
|
|
|
(11.0
|
)
|
|
|
|
|
|
| Financing activities |
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
-
|
|
|
|
297.7
|
|
|
Repayment of long-term debt
|
|
|
(150.0
|
)
|
|
|
-
|
|
|
Proceeds from short-term borrowings
|
|
|
6.4
|
|
|
|
-
|
|
|
Repayments of short-term borrowings
|
|
|
(5.8
|
)
|
|
|
-
|
|
|
Net increase in other short-term borrowings
|
|
|
0.4
|
|
|
|
2.3
|
|
|
Proceeds from stock purchase and option plans
|
|
|
2.0
|
|
|
|
0.1
|
|
|
Cash dividends paid
|
|
|
(17.4
|
)
|
|
|
(17.4
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
|
0.2
|
|
|
|
-
|
|
|
Other
|
|
|
(2.0
|
)
|
|
|
(0.2
|
)
|
| Net cash provided (used) by financing activities |
|
|
(166.2
|
)
|
|
|
282.5
|
|
|
|
|
|
|
| Effect of exchange rate changes on cash and cash equivalents |
|
|
(0.5
|
)
|
|
|
(1.3
|
)
|
| Increase (decrease) in cash and cash equivalents |
|
|
(227.1
|
)
|
|
|
284.9
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
699.4
|
|
|
|
115.8
|
|
| Cash and cash equivalents at end of period |
|
$
|
472.3
|
|
|
$
|
400.7
|
|
|
|
|
|
|
|
|
|
|
| Supplemental cash flow disclosures |
|
|
|
|
|
Cash paid for interest
|
|
$
|
(28.2
|
)
|
|
$
|
(12.4
|
)
|
|
Net cash paid for income taxes
|
|
|
(10.2
|
)
|
|
|
(10.6
|
)
|
|
|
|
|
|
|
|
|
|
| SNAP-ON INCORPORATED |
| Supplemental Consolidating Data - Condensed Statements of Earnings |
| (Amounts in millions) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations* |
|
Financial Services |
|
|
Three Months Ended |
|
Three Months Ended |
|
|
April 3, |
|
April 4, |
|
April 3, |
|
April 4, |
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
621.6
|
|
|
$
|
572.6
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Cost of goods sold
|
|
|
(334.0
|
)
|
|
|
(313.9
|
)
|
|
|
-
|
|
|
|
-
|
|
| Gross profit |
|
|
287.6
|
|
|
|
258.7
|
|
|
|
-
|
|
|
|
-
|
|
|
Operating expenses
|
|
|
(215.9
|
)
|
|
|
(204.4
|
)
|
|
|
-
|
|
|
|
-
|
|
| Operating earnings before financial services |
|
|
71.7
|
|
|
|
54.3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Financial services revenue
|
|
|
-
|
|
|
|
-
|
|
|
|
9.7
|
|
|
|
20.0
|
|
|
Financial services expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
(11.4
|
)
|
|
|
(10.0
|
)
|
| Operating earnings (loss) from financial services |
|
|
-
|
|
|
|
-
|
|
|
|
(1.7
|
)
|
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
| Operating earnings (loss) |
|
|
71.7
|
|
|
|
54.3
|
|
|
|
(1.7
|
)
|
|
|
10.0
|
|
|
Interest expense
|
|
|
(14.0
|
)
|
|
|
(8.6
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Intersegment interest income (expense) - net
|
|
|
3.8
|
|
|
|
(0.1
|
)
|
|
|
(3.8
|
)
|
|
|
0.1
|
|
|
Other income (expense) - net
|
|
|
0.3
|
|
|
|
(0.2
|
)
|
|
|
-
|
|
|
|
(0.1
|
)
|
| Earnings (loss) before income taxes and equity earnings |
|
|
61.8
|
|
|
|
45.4
|
|
|
|
(5.5
|
)
|
|
|
10.0
|
|
|
Income tax benefit (expense)
|
|
|
(21.4
|
)
|
|
|
(15.2
|
)
|
|
|
2.4
|
|
|
|
(3.1
|
)
|
| Earnings (loss) before equity earnings |
|
|
40.4
|
|
|
|
30.2
|
|
|
|
(3.1
|
)
|
|
|
6.9
|
|
| Financial services - net earnings (loss) |
|
|
|
|
|
|
|
|
| attributable to Snap-on Inc. |
|
|
(3.1
|
)
|
|
|
5.5
|
|
|
|
-
|
|
|
|
-
|
|
|
Equity earnings, net of tax
|
|
|
0.7
|
|
|
|
0.1
|
|
|
|
-
|
|
|
|
-
|
|
| Net earnings (loss) |
|
|
38.0
|
|
|
|
35.8
|
|
|
|
(3.1
|
)
|
|
|
6.9
|
|
|
Net earnings attributable to noncontrolling interests
|
|
|
(1.2
|
)
|
|
|
(1.0
|
)
|
|
|
-
|
|
|
|
(1.4
|
)
|
| Net earnings (loss) attributable to Snap-on Inc. |
|
$
|
36.8
|
|
|
$
|
34.8
|
|
|
$
|
(3.1
|
)
|
|
$
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
* 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 |
|
|
April 3, |
|
January 2, |
|
April 3, |
|
January 2, |
|
|
2010 |
|
2010 |
|
2010 |
|
2010 |
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
362.2
|
|
$
|
577.1
|
|
$
|
110.1
|
|
$
|
122.3
|
|
Intersegment receivables
|
|
|
7.3
|
|
|
4.8
|
|
|
-
|
|
|
0.1
|
|
Trade and other accounts receivable - net
|
|
|
417.7
|
|
|
411.5
|
|
|
5.1
|
|
|
2.9
|
|
Contract receivables - net
|
|
|
7.1
|
|
|
7.4
|
|
|
27.7
|
|
|
25.5
|
|
Finance receivables - net
|
|
|
-
|
|
|
-
|
|
|
152.2
|
|
|
122.3
|
|
Inventories - net
|
|
|
291.0
|
|
|
274.7
|
|
|
-
|
|
|
-
|
|
Deferred income tax assets
|
|
|
60.9
|
|
|
69.3
|
|
|
5.9
|
|
|
0.2
|
|
Prepaid expenses and other assets
|
|
|
66.6
|
|
|
60.1
|
|
|
1.6
|
|
|
2.8
|
|
Total current assets
|
|
|
1,212.8
|
|
|
1,404.9
|
|
|
302.6
|
|
|
276.1
|
|
|
|
|
|
|
|
|
|
|
Property and equipment - net
|
|
|
336.0
|
|
|
346.4
|
|
|
1.3
|
|
|
1.4
|
|
Investment in Financial Services
|
|
|
84.7
|
|
|
205.6
|
|
|
-
|
|
|
-
|
|
Deferred income tax assets
|
|
|
89.4
|
|
|
73.6
|
|
|
1.7
|
|
|
14.6
|
|
Long-term contract receivables - net
|
|
|
10.1
|
|
|
10.9
|
|
|
69.0
|
|
|
59.8
|
|
Long-term finance receivables - net
|
|
|
-
|
|
|
-
|
|
|
229.8
|
|
|
177.9
|
|
Goodwill
|
|
|
796.5
|
|
|
814.3
|
|
|
-
|
|
|
-
|
|
Other intangibles - net
|
|
|
201.9
|
|
|
206.2
|
|
|
-
|
|
|
-
|
|
Other assets
|
|
|
63.3
|
|
|
65.2
|
|
|
0.8
|
|
|
1.0
|
| Total Assets |
|
$
|
2,794.7
|
|
$
|
3,127.1
|
|
$
|
605.2
|
|
$
|
530.8
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Notes payable and current maturities of long-term debt
|
|
$
|
15.6
|
|
$
|
164.7
|
|
$
|
-
|
|
$
|
-
|
|
Accounts payable
|
|
|
122.9
|
|
|
119.3
|
|
|
0.9
|
|
|
0.5
|
|
Intersegment payables
|
|
|
-
|
|
|
4.2
|
|
|
7.3
|
|
|
0.7
|
|
Accrued benefits
|
|
|
47.5
|
|
|
48.4
|
|
|
0.1
|
|
|
0.3
|
|
Accrued compensation
|
|
|
48.5
|
|
|
61.6
|
|
|
1.8
|
|
|
3.2
|
|
Franchisee deposits
|
|
|
36.6
|
|
|
40.5
|
|
|
-
|
|
|
-
|
|
Other accrued liabilities
|
|
|
218.2
|
|
|
215.7
|
|
|
127.3
|
|
|
85.7
|
|
Total current liabilities
|
|
|
489.3
|
|
|
654.4
|
|
|
137.4
|
|
|
90.4
|
|
|
|
|
|
|
|
|
|
|
Long-term debt and intersegment long-term debt
|
|
|
528.2
|
|
|
674.8
|
|
|
372.4
|
|
|
227.3
|
|
Deferred income tax liabilities
|
|
|
92.9
|
|
|
97.8
|
|
|
0.1
|
|
|
-
|
|
Retiree health care benefits
|
|
|
59.8
|
|
|
60.7
|
|
|
-
|
|
|
-
|
|
Pension liabilities
|
|
|
260.2
|
|
|
255.9
|
|
|
-
|
|
|
-
|
|
Other long-term liabilities
|
|
|
76.9
|
|
|
77.9
|
|
|
10.6
|
|
|
7.5
|
| Total Liabilities |
|
|
1,507.3
|
|
|
1,821.5
|
|
|
520.5
|
|
|
325.2
|
|
|
|
|
|
|
|
|
|
| Total Shareholders' Equity attributable to Snap-on Inc. |
|
1,271.8
|
|
|
1,290.0
|
|
|
84.7
|
|
|
205.6
|
|
Noncontrolling interests
|
|
|
15.6
|
|
|
15.6
|
|
|
-
|
|
|
-
|
| Total Shareholders' Equity |
|
|
1,287.4
|
|
|
1,305.6
|
|
|
84.7
|
|
|
205.6
|
| Total Liabilities and Shareholders' Equity |
|
$
|
2,794.7
|
|
$
|
3,127.1
|
|
$
|
605.2
|
|
$
|
530.8
|
|
|
|
|
|
|
|
|
|
|
*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.
|
SOURCE: Snap-on Incorporated
Snap-on Incorporated
Investors:
Leslie Kratcoski
262/656-6121
or
Media:
Richard Secor
262/656-5561