What changed in this filing

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Item 1. Financial Statements

2022-04-21 compared with 2021-10-21 · 227 added, 411 removed, 791 unchanged (45% of the section changed)

3 unchanged sentences

(Amounts in millions, except per share data)

Three Months Ended Nine Months Ended

October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Three Months Ended

April 2, 2022 April 3, 2021

Net sales $ 1,097.8 $ 1,024.6

12 unchanged sentences

Earnings before equity earnings 222.7 197.1

Equity earnings (loss), net of tax — ( 0.5 ) 1.5 —

Equity earnings, net of tax — 0.5

Net earnings 222.7 197.6

13 unchanged sentences

(Amounts in millions)

Three Months Ended Nine Months Ended

October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Three Months Ended

April 2, 2022 April 3, 2021

Comprehensive income (loss):

2 unchanged sentences

Foreign currency translation ( 9.7 ) ( 29.0 )

Reclassification of foreign currency translation loss from sale of equity interest to net earnings — — ( 1.0 ) —

Unrealized cash flow hedges, net of tax:

Other comprehensive income before reclassifications — — — 1.4

Reclassification of cash flow hedges to net earnings ( 0.4 ) ( 0.4 )

Defined benefit pension and postretirement plans:

Amortization of net unrecognized losses included in net periodic benefit cost

9.0 8.7 27.2 25.9

Amortization of net unrecognized losses

Income tax benefit

( 1.1 ) ( 2.2 )

6.9 6.6 20.6 19.7

Total comprehensive income 216.0 175.1

7 unchanged sentences

(Amounts in millions, except share data)

October 2, 2021 January 2, 2021

April 2, 2022 January 1, 2022

Current assets:

25 unchanged sentences

(Amounts in millions, except share data)

October 2, 2021 January 2, 2021

April 2, 2022 January 1, 2022

LIABILITIES AND EQUITY

Current liabilities:

Notes payable and current maturities of long-term debt $ 17.4 $ 268.5

Notes payable $ 19.6 $ 17.4

Accounts payable 297.3 277.6

31 unchanged sentences

(Amounts in millions, except share data)

The following summarizes the changes in total equity for the three month period ended October 2, 2021:

The following summarizes the changes in total equity for the three month period ended April 2, 2022:

Shareholders’ Equity Attributable to Snap-on Incorporated

6 unchanged sentences

Interests Total

Balance at July 3, 2021 $ 67.4 $ 461.1 $ 5,423.5 $ ( 362.7 ) $ ( 1,585.9 ) $ 22.1 $ 4,025.5

Net Earnings for the three months ended October 2, 2021

Balance at January 1, 2022 $ 67.4 $ 472.7 $ 5,699.9 $ ( 343.9 ) $ ( 1,714.2 ) $ 21.9 $ 4,203.8

Net Earnings for the three months ended April 2, 2022

— — 217.4 — — 5.3 222.7

6 unchanged sentences

Other — — ( 0.6 ) — — ( 4.9 ) ( 5.5 )

Balance at October 2, 2021 $ 67.4 $ 467.7 $ 5,552.8 $ ( 394.8 ) $ ( 1,645.8 ) $ 22.0 $ 4,069.3

The following summarizes the changes in total equity for the nine month period ended October 2, 2021:

Balance at April 2, 2022 $ 67.4 $ 474.7 $ 5,841.0 $ ( 350.6 ) $ ( 1,734.2 ) $ 22.3 $ 4,320.6

The following summarizes the changes in total equity for the three month period ended April 3, 2021:

Shareholders’ Equity Attributable to Snap-on Incorporated

7 unchanged sentences

Balance at January 2, 2021 $ 67.4 $ 391.7 $ 5,156.9 $ ( 365.8 ) $ ( 1,425.3 ) $ 21.7 $ 3,846.6

Net Earnings for the nine months ended October 2, 2021

Net Earnings for the three months ended April 3, 2021

— — 192.6 — — 5.0 197.6

6 unchanged sentences

Other — — ( 0.3 ) — — ( 4.8 ) ( 5.1 )

Balance at October 2, 2021 $ 67.4 $ 467.7 $ 5,552.8 $ ( 394.8 ) $ ( 1,645.8 ) $ 22.0 $ 4,069.3

See Notes to Condensed Consolidated Financial Statements.

SNAP-ON INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Amounts in millions, except share data)

The following summarizes the changes in total equity for the three month period ended September 26, 2020:

Shareholders’ Equity Attributable to Snap-on Incorporated

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Treasury

Stock Noncontrolling

Interests Total

Balance at June 27, 2020 $ 67.4 $ 383.1 $ 4,894.2 $ ( 514.4 ) $ ( 1,343.6 ) $ 21.9 $ 3,508.6

Net Earnings for the three months ended September 26, 2020

— — 179.7 — — 5.0 184.7

Other comprehensive income — — — 48.8 — — 48.8

Cash dividends – $ 1.08 per share

— — ( 58.8 ) — — — ( 58.8 )

Stock compensation plans — 3.2 — — 4.7 — 7.9

Share repurchases – 300,000 shares

— — — — ( 45.1 ) — ( 45.1 )

Other — — ( 0.2 ) — — ( 5.1 ) ( 5.3 )

Balance at Balance at September 26, 2020 $ 67.4 $ 386.3 $ 5,014.9 $ ( 465.6 ) $ ( 1,384.0 ) $ 21.8 $ 3,640.8

The following summarizes the changes in total equity for the nine month period ended September 26, 2020:

Shareholders’ Equity Attributable to Snap-on Incorporated

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Treasury

Stock Noncontrolling

Interests Total

Balance at December 28, 2019 $ 67.4 $ 379.1 $ 4,779.7 $ ( 507.9 ) $ ( 1,309.2 ) $ 21.7 $ 3,430.8

Impact of adopting the Credit Loss Standard ( ASU No.

— — ( 6.1 ) — — — ( 6.1 )

Balance at December 29, 2019 67.4 379.1 4,773.6 ( 507.9 ) ( 1,309.2 ) 21.7 3,424.7

Net Earnings for the nine months ended September 26, 2020

— — 418.1 — — 14.5 432.6

Other comprehensive income — — — 42.3 — — 42.3

Cash dividends – $ 3.24 per share

— — ( 176.5 ) — — — ( 176.5 )

Stock compensation plans — 7.2 — — 20.8 — 28.0

Share repurchases – 649,000 shares

— — — — ( 95.6 ) — ( 95.6 )

Other — — ( 0.3 ) — — ( 14.4 ) ( 14.7 )

Balance at Balance at September 26, 2020 $ 67.4 $ 386.3 $ 5,014.9 $ ( 465.6 ) $ ( 1,384.0 ) $ 21.8 $ 3,640.8

Balance at Balance at April 3, 2021 $ 67.4 $ 419.7 $ 5,282.5 $ ( 388.3 ) $ ( 1,505.3 ) $ 21.9 $ 3,897.9

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Amounts in millions)

Nine Months Ended

October 2, 2021 September 26, 2020

Three Months Ended

April 2, 2022 April 3, 2021

Operating activities:

6 unchanged sentences

Stock-based compensation expense 9.0 12.3

Deferred income tax provision (benefit) 3.4 ( 8.5 )

Loss on sales of assets 1.5 0.7

Settlement of treasury lock — 1.4

Deferred income tax provision 2.3 2.3

Gain on sales of assets ( 2.7 ) —

Changes in operating assets and liabilities, net of effects of acquisitions:

15 unchanged sentences

Financing activities:

Proceeds from issuance of long-term debt — 489.9

Repayment of long-term debt ( 250.0 ) —

Net increase (decrease) in other short-term borrowings 3.0 ( 187.7 )

Net increase in other short-term borrowings 2.3 2.4

Cash dividends paid ( 75.7 ) ( 66.7 )

2 unchanged sentences

Other ( 9.9 ) ( 7.8 )

Net cash provided (used) by financing activities ( 664.7 ) 27.3

Net cash used by financing activities ( 106.3 ) ( 131.0 )

Effect of exchange rate changes on cash and cash equivalents 0.1 0.1

12 unchanged sentences

These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Snap-on’s 2021 Annual Report on Form 10-K for the fiscal year ended January 1, 2022 (“2021 year end”).

The company’s 2021 fiscal year, which ends on January 1, 2022, will contain 52 weeks of operating results.

The company’s 2020 fiscal year contained 53 weeks of operating results, with the additional week occurring in the fourth quarter.

Snap-on’s 2021 fiscal third quarter ended on October 2, 2021;

the 2020 fiscal third quarter ended on September 26, 2020.

The company’s 2021 and 2020 fiscal third quarters each contained 13 weeks of operating results.

The company’s 2022 fiscal first quarter ended on April 2, 2022;

the 2021 fiscal first quarter ended on April 3, 2021.

The company’s 2022 and 2021 fiscal first quarters each contained 13 weeks of operating results.

Snap-on’s Condensed Consolidated Financial Statements are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three and nine month periods ended October 2, 2021, and September 26, 2020, have been made.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three month periods ended April 2, 2022, and April 3, 2021, have been made.

Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

7 unchanged sentences

New Accounting Standards

On January 3, 2021, the beginning of Snap-on’s 2021 fiscal year, the company adopted ASU No.

2019-12, Simplifying the Accounting for Income Taxes , which is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740.

The adoption of this ASU did not have a significant impact on the company’s Condensed Consolidated Financial Statements.

In March 2022, the FASB issued ASU No.

2022-02, Financial Instruments – Credit Losses (Topic 326) – Troubled Debt Restructurings and Vintage Disclosures , which requires enhanced disclosure of certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty while eliminating certain current recognition and measurement accounting guidance.

This ASU also requires the disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases.

2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years;

this ASU allows for early adoption in any interim period after issuance of the update.

The company is currently assessing the impact this ASU will have on its consolidated financial statements.

Revenue Recognition

Snap-on recognizes revenue from the sale of tools, diagnostic and equipment products and related services based on when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services.

Snap-on recognizes revenue from the sale of tools, diagnostics, equipment, and related services based on when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services.

SNAP-ON INCORPORATED

2 unchanged sentences

The following table shows the consolidated revenues by revenue source:

Three Months Ended Nine Months Ended

(Amounts in millions) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Three Months Ended

(Amounts in millions) April 2, 2022 April 3, 2021

Revenue from contracts with customers $ 1,091.9 $ 1,018.8

7 unchanged sentences

The following tables represent external net sales disaggregated by geography, based on the customers’ billing addresses:

For the Three Months Ended October 2, 2021

For the Three Months Ended April 2, 2022

Commercial Snap-on Repair Systems

10 unchanged sentences

Total revenue $ 340.1 $ 512.1 $ 398.2 $ 87.7 $ ( 152.6 ) $ 1,185.5

For the Nine Months Ended October 2, 2021

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

North America* $ 372.9 $ 1,231.8 $ 655.2 $ — $ — $ 2,259.9

Europe 240.4 128.3 185.8 — — 554.5

All other 204.2 73.7 51.4 — — 329.3

External net sales 817.5 1,433.8 892.4 — — 3,143.7

Intersegment net sales 230.1 — 218.2 — ( 448.3 ) —

Total net sales 1,047.6 1,433.8 1,110.6 — ( 448.3 ) 3,143.7

Financial services revenue — — — 262.8 — 262.8

Total revenue $ 1,047.6 $ 1,433.8 $ 1,110.6 $ 262.8 $ ( 448.3 ) $ 3,406.5

* North America is comprised of the United States, Canada and Mexico.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Three Months Ended September 26, 2020

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

North America* $ 103.9 $ 389.2 $ 186.0 $ — $ — $ 679.1

Europe 66.8 38.6 54.9 — — 160.3

All other 65.0 22.0 15.2 — — 102.2

External net sales 235.7 449.8 256.1 — — 941.6

Intersegment net sales 72.7 — 61.4 — ( 134.1 ) —

Total net sales 308.4 449.8 317.5 — ( 134.1 ) 941.6

Financial services revenue — — — 85.8 — 85.8

Total revenue $ 308.4 $ 449.8 $ 317.5 $ 85.8 $ ( 134.1 ) $ 1,027.4

For the Nine Months Ended September 26, 2020

For the Three Months Ended April 3, 2021

Commercial Snap-on Repair Systems

13 unchanged sentences

The following tables represent external net sales disaggregated by customer type:

For the Three Months Ended October 2, 2021

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

Vehicle service professionals $ 24.3 $ 471.4 $ 294.6 $ — $ — $ 790.3

All other professionals 247.4 — — — — 247.4

External net sales 271.7 471.4 294.6 — — 1,037.7

Intersegment net sales 79.7 — 69.8 — ( 149.5 ) —

Total net sales 351.4 471.4 364.4 — ( 149.5 ) 1,037.7

Financial services revenue — — — 87.3 — 87.3

Total revenue $ 351.4 $ 471.4 $ 364.4 $ 87.3 $ ( 149.5 ) $ 1,125.0

For the Nine Months Ended October 2, 2021

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

Vehicle service professionals $ 74.1 $ 1,433.8 $ 892.4 $ — $ — $ 2,400.3

All other professionals 743.4 — — — — 743.4

External net sales 817.5 1,433.8 892.4 — — 3,143.7

Intersegment net sales 230.1 — 218.2 — ( 448.3 ) —

Total net sales 1,047.6 1,433.8 1,110.6 — ( 448.3 ) 3,143.7

Financial services revenue — — — 262.8 — 262.8

Total revenue $ 1,047.6 $ 1,433.8 $ 1,110.6 $ 262.8 $ ( 448.3 ) $ 3,406.5

For the Three Months Ended September 26, 2020

For the Three Months Ended April 2, 2022

Commercial Snap-on Repair Systems

8 unchanged sentences

Total revenue $ 340.1 $ 512.1 $ 398.2 $ 87.7 $ ( 152.6 ) $ 1,185.5

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Nine Months Ended September 26, 2020

For the Three Months Ended April 3, 2021

Commercial Snap-on Repair Systems

13 unchanged sentences

The tools product category includes hand tools, power tools, tool storage products and other similar products.

The diagnostics, information and management systems product category includes handheld and PC-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer (“OEM”) purchasing facilitation services, and warranty management systems and analytics to help OEM dealership service and repair shops (“OEM dealerships”) manage and track performance.

The diagnostics, information and management systems product category includes handheld and computer-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer (“OEM”) purchasing facilitation services, and warranty management systems and analytics to help OEM dealership service and repair shops (“OEM dealerships”) manage and track performance.

The equipment product category includes solutions for the service of vehicles and industrial equipment.

3 unchanged sentences

The remaining sales revenue is earned over time primarily on a subscription basis including software, extended warranty and other subscription service agreements.

Snap-on enters into contracts related to the selling of tools, diagnostic and repair information and equipment products and related services.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Snap-on enters into contracts related to the selling of tools, diagnostics, repair information, equipment and related services.

At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services).

6 unchanged sentences

The remaining duration of these unsatisfied performance obligations range from one month up to 60 months.

Snap-on had approximately $ 198.0 million of long-term contracts that have fixed consideration that extends beyond one year as of October 2, 2021.

Snap-on had approximately $ 195.0 million of long-term contracts that have fixed consideration that extends beyond one year as of April 2, 2022.

Snap-on expects to recognize approximately 65 % of these contracts as revenue by the end of fiscal 2023, an additional 30 % by the end of fiscal 2025 and the balance thereafter.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Contract Liabilities (Deferred Revenues):

Contract Liabilities:

Contract liabilities are recorded when cash payments are received in advance of Snap-on’s performance.

The timing of payment is typically on a monthly, quarterly or annual basis.

The balance of total contract liabilities was $ 67.6 million and $ 61.0 million at October 2, 2021, and January 2, 2021, respectively.

The balance of total contract liabilities was $ 65.8 million and $ 63.8 million at April 2, 2022, and January 1, 2022, respectively.

The current portion of contract liabilities is included in “Other accrued liabilities” and the non-current portion of such liabilities is included in “Other long-term liabilities” on the accompanying Condensed Consolidated Balance Sheets.

During the three and nine months ended October 2, 2021, Snap-on recognized revenue of $ 7.1 million and $ 48.7 million, respectively, that was included in the $ 61.0 million contract liability balance at January 2, 2021, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

During the three months ended April 2, 2022, Snap-on recognized revenue of $ 34.6 million that was included in the $ 63.8 million contract liability balance at January 1, 2022, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

On August 1, 2021, Snap-on acquired AutoCrib EMEA GmbH (“AutoCrib Germany”), a former independent distributor, for a cash purchase price of $ 4.4 million (or $ 4.2 million, net of cash acquired).

AutoCrib Germany, based in Hamburg, Germany, distributes asset and tool control solutions for a variety of aerospace, automotive, military, natural resources and general industry operations.

In the third quarter of 2021, the company recorded, on a preliminary basis, the $ 3.3 million excess of the purchase price over the fair value of the net assets acquired in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

The company anticipates completing the purchase accounting for the acquired net assets of AutoCrib Germany in the first half of 2022.

In the first quarter of 2022, the company completed the purchase accounting valuations for the acquired net assets of AutoCrib Germany.

The $ 3.3 million excess of the purchase price over the fair value of the net assets acquired is recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

On July 1, 2021, Snap-on exchanged its 35 % equity interest in Deville S.A., valued at $ 21.8 million, for 100 % ownership of Secateurs Pradines (“Pradines”), a wholly owned subsidiary of Deville S.A.

with a fair value of $ 20.7 million (or $ 16.2 million, net of cash acquired), and cash of $ 1.1 million, which reflects a $ 0.7 million working capital adjustment finalized in the third quarter of 2021.

with a fair value of $ 20.7 million (or $ 16.2 million, net of cash acquired), and cash of $ 1.1 million.

Pradines, located in Bauge-en-Anjou, France, designs and manufactures horticultural hand tools for professionals and individuals.

In 2021, the company recorded, on a preliminary basis, the $ 10.7 million excess of the purchase price over the fair value of net assets acquired in “Goodwill” in the accompanying Condensed Consolidated Balance Sheets.

The company anticipates completing the purchase accounting for the acquired net assets of Pradines in the first half of 2022.

As of April 2, 2022, the company recorded, on a preliminary basis, the $ 10.7 million excess of the purchase price over the fair value of net assets acquired in “Goodwill” in the accompanying Condensed Consolidated Balance Sheets.

The company will complete the purchase accounting for the acquired net assets of Pradines in the second quarter of 2022.

On February 26, 2021, Snap-on acquired Dealer-FX Group, Inc.

2 unchanged sentences

Dealer-FX specializes in software as a service (SaaS) management systems, communications platforms, extensive data integrations, and offers a digitalized solution that increases productivity and enhances the vehicle owners’ experience.

In the first quarter of 2021, the company recorded, on a preliminary basis, the $ 195.2 million excess of the purchase price over the fair value of the net assets acquired in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

The company anticipates completing the purchase accounting for the acquired net assets of Dealer-FX in 2021.

On September 28, 2020, Snap-on acquired substantially all of the assets of AutoCrib, Inc.

(“AutoCrib”) for a cash purchase price of $ 35.4 million.

AutoCrib, based in Tustin, California, designs, manufactures and markets asset and tool control solutions for a variety of aerospace, automotive, military, natural resources and general industry operations.

In the first quarter of 2021, the company completed the purchase accounting valuations for the acquired net assets of AutoCrib, including intangible assets.

The $ 18.3 million excess of the purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

On January 31, 2020, Snap-on acquired substantially all of the assets related to the TreadReader product line from Sigmavision Limited (“Sigmavision”), for a cash purchase price of $ 5.9 million.

Sigmavision designs and manufactures handheld devices and drive-over ramps that provide tire information for use in the automotive industry.

The company completed the purchase accounting valuations for the acquired net assets of Sigmavision, including intangible assets, in the second quarter of 2020.

The $ 5.6 million excess of the purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

For segment reporting purposes, the results of operations and assets of Dealer-FX and Sigmavision have been included in the Repair Systems & Information Group since the respective acquisition dates, and the results of operations and assets of AutoCrib Germany, Pradines and AutoCrib have been included in the Commercial & Industrial Group since the respective acquisition dates.

In the first quarter of 2022, the company completed the purchase accounting valuations for the acquired net assets of Dealer-FX, and recorded $ 32.6 million of net deferred tax changes.

The $ 118.2 million excess of the purchase price over the fair value of the net assets acquired is recorded in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets.

For segment reporting purposes, the results of operations and assets of Dealer-FX have been included in the Repair Systems & Information Group since the acquisition date, and the results of operations and assets of AutoCrib Germany and Pradines have been included in the Commercial & Industrial Group since the respective acquisition dates.

Pro forma financial information has not been presented for these acquisitions as the net effects were neither significant nor material to Snap-on’s results of operations or financial position.

3 unchanged sentences

Trade and Other Accounts Receivable:

Snap-on’s trade and other accounts receivable primarily arise from the sale of tools and diagnostic and equipment products to a broad range of industrial and commercial customers and to Snap-on’s independent franchise van channel with payment terms generally ranging from 30 to 120 days.

The components of Snap-on’s trade and other accounts receivable as of October 2, 2021, and January 2, 2021, are as follows:

(Amounts in millions) October 2, 2021 January 2, 2021

Snap-on’s trade and other accounts receivable primarily arise from the sale of tools, diagnostics, and equipment products to a broad range of industrial and commercial customers and to Snap-on’s independent franchise van channel with payment terms generally ranging from 30 to 120 days.

The components of Snap-on’s trade and other accounts receivable as of April 2, 2022, and January 1, 2022, are as follows:

(Amounts in millions) April 2, 2022 January 1, 2022

Trade and other accounts receivable $ 759.7 $ 709.6

1 unchanged sentence

Total trade and other accounts receivable – net $ 731.3 $ 682.3

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and nine months ended October 2, 2021, and September 26, 2020:

Three months ended Nine Months Ended

(Amounts in millions) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three months ended April 2, 2022, and April 3, 2021:

Three months ended

(Amounts in millions) April 2, 2022 April 3, 2021

Allowances for credit losses:

2 unchanged sentences

( 3.0 ) ( 2.1 )

( 1.7 ) ( 4.5 ) ( 5.9 ) ( 10.0 )

Currency translation

( 0.7 ) 0.3 ( 0.6 ) ( 0.6 )

End of period $ 28.4 $ 25.8

4 unchanged sentences

Interest income on finance and contract receivables is included in “Financial services revenue” on the accompanying Condensed Consolidated Statements of Earnings.

Snap-on’s finance receivables are comprised of extended-term installment payment contracts to both technicians and independent shop owners (i.e., franchisees’ customers) to enable them to purchase tools and diagnostic and equipment products on an extended-term payment plan, generally with payment terms of approximately four years .

Contract receivables, with payment terms of up to 10 years, are comprised of extended-term payment contracts to a broad base of customers worldwide, including shop owners, both independents and national chains, for their purchase of tools and diagnostic and equipment products, as well as extended-term contracts to franchisees to meet a number of financing needs, including working capital loans, loans to enable new franchisees to fund the purchase of the franchise and van leases, or the expansion of an existing franchise.

Finance and contract receivables are generally secured by the underlying tools and/or diagnostic or equipment products financed and, for contracts to franchisees, other franchisee assets.

Finance receivables are comprised of extended-term payment contracts to both technicians and independent shop owners (i.e., franchisees’ customers) to enable them to purchase tools, diagnostics, and equipment products on an extended-term payment plan, with average payment terms of approximately four years .

Contract receivables, with payment terms of up to ten years , are comprised of extended-term payment contracts to a broad base of customers worldwide, including shop owners, both independents and national chains, for their purchase of tools, diagnostics, and equipment products, as well as extended-term contracts to franchisees to meet a number of financing needs, including working capital loans, loans to enable new franchisees to fund the purchase of the franchise and van leases, or the expansion of an existing franchise.

Finance and contract receivables are generally secured by the underlying tools, diagnostics and/or equipment products financed and, for contracts to franchisees, other franchisee assets.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of Snap-on’s current finance and contract receivables as of October 2, 2021, and January 2, 2021, are as follows:

(Amounts in millions) October 2, 2021 January 2, 2021

The components of Snap-on’s current finance and contract receivables as of April 2, 2022, and January 1, 2022, are as follows:

(Amounts in millions) April 2, 2022 January 1, 2022

Finance installment receivables $ 557.7 $ 557.0

19 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of October 2, 2021, and January 2, 2021, are as follows:

(Amounts in millions) October 2, 2021 January 2, 2021

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of April 2, 2022, and January 1, 2022, are as follows:

(Amounts in millions) April 2, 2022 January 1, 2022

Finance installment receivables $ 1,138.1 $ 1,155.3

33 unchanged sentences

However, customers are monitored prior to becoming 30 days past due.

The amortized cost basis of finance and contract receivables by origination year as of October 2, 2021, are as follows:

The amortized cost basis of finance and contract receivables by origination year as of April 2, 2022, are as follows:

(Amounts in millions) 2022 2021 2020 2019 2018 Prior Total

11 unchanged sentences

Management performs detailed reviews of its receivables on a monthly and/or quarterly basis to assess the adequacy of the allowance and determine if any impairment has occurred.

A receivable generally has credit losses when it is expected that all amounts related to the receivable will not be collected according to the contractual terms of the agreement.

A receivable may have credit losses when it is expected that all amounts related to the receivable will not be collected according to the contractual terms of the agreement.

Amounts determined to be uncollectable are charged directly against the allowance, while amounts recovered on previously written-off accounts increase the allowance.

8 unchanged sentences

The finance receivable portfolio contains a substantial amount of homogeneous contracts which fits well with the vintage analysis.

For contract receivables, the company primarily uses a Weighted-Average Remaining Maturity methodology (“WARM”) to determine expected losses.

For contract receivables the company primarily uses a Weighted-Average Remaining Maturity methodology (“WARM”).

The WARM methodology calculates the average annual write-off rate and applies it to the remaining term of the receivables.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The company performed a correlation analysis to compare historical losses to various economic factors.

The company performed a correlation analysis to compare historical losses to many economic factors.

The primary economic factors considered were real gross domestic product, civilian unemployment, industrial production index, and repair and maintenance employment rate;

2 unchanged sentences

Similar qualitative factors are considered for both finance and contract receivables.

The qualitative factors used in determining the estimate of expected credit losses are influenced by the changes in the composition of the portfolio, underwriting practices, and other relevant conditions that were different from the historical periods, which included considering the impact of the ongoing coronavirus (“COVID-19”) pandemic.

The allowance for credit losses is adjusted each period for changes in the credit risk and expected lifetime credit losses.

The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and nine months ended October 2, 2021, and September 26, 2020:

The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three months ended April 2, 2022, and April 3, 2021:

Three Months Ended

October 2, 2021 Nine Months Ended

October 2, 2021

April 2, 2022 Three Months Ended

April 3, 2021

(Amounts in millions) Finance

7 unchanged sentences

Recoveries 2.3 — 2.6 0.1

Currency translation — — — —

End of period $ 62.5 $ 7.7 $ 75.3 $ 9.2

Three Months Ended

September 26, 2020 Nine Months Ended

September 26, 2020

(Amounts in millions) Finance Receivables Contract Receivables Finance Receivables Contract Receivables

Allowances for credit losses:

Beginning of period $ 72.5 $ 9.1 $ 61.9 $ 5.6

Impact of adopting ASU No.

2016-13 — — 5.2 2.9

Provision for credit losses 9.8 0.5 41.2 3.1

Charge-offs ( 9.5 ) ( 0.7 ) ( 39.6 ) ( 2.9 )

Recoveries 2.1 0.1 6.3 0.3

Currency translation 0.1 — — —

End of period $ 75.0 $ 9.0 $ 75.0 $ 9.0

Depending on the contract, payments for finance and contract receivables are due on a monthly or weekly basis.

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In limited instances, Snap-on’s financial services business may modify certain receivables in troubled debt restructurings.

The amount and number of restructured finance and contract receivables as of October 2, 2021, and January 2, 2021, were immaterial to both the financial services portfolio and the company’s results of operations and financial position.

The amount and number of restructured finance and contract receivables as of April 2, 2022, and January 1, 2022, were immaterial to both the financial services portfolio and the company’s results of operations and financial position.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The aging of finance and contract receivables as of October 2, 2021, and January 2, 2021, is as follows:

The aging of finance and contract receivables as of April 2, 2022, and January 1, 2022, is as follows:

(Amounts in millions) 30-59

2 unchanged sentences

Past Due Total Greater

October 2, 2021:

April 2, 2022:

Finance receivables $ 13.1 $ 9.8 $ 18.3 $ 41.2 $ 1,663.2 $ 1,704.4 $ 15.8

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The accrual of interest and other fees is resumed when the finance or contract receivable becomes contractually current and collection of all remaining contractual amounts due is reasonably assured.

A receivable generally has credit losses when it is expected that all amounts related to the receivable will not be collected according to the contractual terms of the applicable agreement.

A receivable may have credit losses when it is expected that all amounts related to the receivable will not be collected according to the contractual terms of the applicable agreement.

Such finance and contract receivables are covered by the company’s respective allowances for credit losses and are written-off against the allowances when appropriate.

The amount of finance and contract receivables on nonaccrual status as of October 2, 2021, and January 2, 2021, is as follows:

(Amounts in millions) October 2, 2021 January 2, 2021

The amount of finance and contract receivables on nonaccrual status as of April 2, 2022, and January 1, 2022, is as follows:

(Amounts in millions) April 2, 2022 January 1, 2022

Finance receivables $ 8.4 $ 7.7

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Inventories by major classification are as follows:

(Amounts in millions) October 2, 2021 January 2, 2021

(Amounts in millions) April 2, 2022 January 1, 2022

Finished goods $ 730.7 $ 686.5

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 59 % and 57 % of total inventories as of October 2, 2021 and January 2, 2021, respectively.

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 61 % and 60 % of total inventories as of April 2, 2022 and January 1, 2022, respectively.

The company accounts for its non-U.S.

inventory on the FIFO method.

As of October 2, 2021, approximately 32 % of the company’s U.S.

As of April 2, 2022, approximately 35 % of the company’s U.S.

inventory was accounted for using the FIFO method and 65 % was accounted for using the last-in, first-out (“LIFO”) method.

There were no LIFO inventory liquidations in the three and nine months ended October 2, 2021, or September 26, 2020.

There were no LIFO inventory liquidations in the three months ended April 2, 2022, or April 3, 2021.

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by segment for the nine months ended October 2, 2021, are as follows:

The changes in the carrying amount of goodwill by segment for the three months ended April 2, 2022, are as follows:

(Amounts in millions) Commercial

4 unchanged sentences

Currency translation ( 3.6 ) — ( 2.5 ) ( 6.1 )

Acquisitions and related adjustments 14.0 — 195.2 209.2

Balance as of October 2, 2021 $ 332.6 $ 12.4 $ 826.0 $ 1,171.0

Goodwill of $ 1,171.0 million as of October 2, 2021, included $ 195.2 million, on a preliminary basis, from the acquisition of Dealer-FX, $ 10.7 million, on a preliminary basis, from the acquisition of Pradines and $ 3.3 million, on a preliminary basis, from the acquisition of AutoCrib Germany.

Acquisition-related adjustments — — ( 32.6 ) ( 32.6 )

Balance as of April 2, 2022 $ 322.2 $ 12.4 $ 743.2 $ 1,077.8

Goodwill of $ 1,077.8 million as of April 2, 2022, included $ 118.2 million from the acquisition of Dealer-FX, $ 10.7 million, on a preliminary basis, from the acquisition of Pradines and $ 3.3 million from the acquisition of AutoCrib Germany.

As of the three months ended April 2, 2022, the purchase accounting valuations for the acquired net assets, including deferred tax assets, of Dealer-FX were completed, resulting in a reduction of goodwill of $ 32.6 million from 2021 year end.

The goodwill from Dealer-FX is included in the Repair Systems & Information Group and the goodwill from Pradines and AutoCrib Germany is included in the Commercial & Industrial Group.

1 unchanged sentence

Additional disclosures related to other intangible assets are as follows:

October 2, 2021 January 2, 2021

April 2, 2022 January 1, 2022

(Amounts in millions) Gross Carrying

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Total other intangible assets $ 631.8 $ ( 336.3 ) $ 637.6 $ ( 335.9 )

Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2021, and the testing did not result in any impairment.

Provision for impairment of goodwill and/or other intangible assets in a future period could arise due to significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to significant and long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, significant changes in key personnel or litigation, a significant and sustained decrease in share price and/or other events, including effects from the sale or disposal of a reporting unit.

As of October 2, 2021, the company had no accumulated impairment losses.

As of April 2, 2022, the gross carrying value of intangible assets includes $ 28.4 million of customer relationships, $ 14.8 million of developed technology and a $ 17.7 million non-amortized trademark related to the Dealer-FX acquisition.

Provision for impairment of goodwill and/or other intangible assets could arise in a future period due to significant and unanticipated changes in circumstances, such as declines in profitability and cash flow due to significant and long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, significant changes in key personnel or litigation, a significant and sustained decrease in share price and/or other events, including effects from the sale or disposal of a reporting unit.

As of April 2, 2022, the company had no accumulated impairment losses.

SNAP-ON INCORPORATED

10 unchanged sentences

Intangible asset renewal costs are expensed as incurred.

The aggregate amortization expense was $ 6.4 million and $ 18.7 million for the respective three and nine month periods ended October 2, 2021, and $ 5.8 million and $ 17.2 million for the respective three and nine month periods ended September 26, 2020.

The aggregate amortization expense was $ 7.2 million and $ 6.0 million for the respective three month periods ended April 2, 2022, and April 3, 2021.

Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $ 28.3 million in 2022, $ 24.9 million in 2023, $ 19.6 million in 2024, $ 14.1 million in 2025, $ 10.5 million in 2026, and $ 9.7 million in 2027.

Exit and Disposal Activities

Snap-on did not record any exit and disposal activities for both the three and nine month periods ended October 2, 2021, or in the three month period ended September 26, 2020.

In the nine months ended September 26, 2020, Snap-on recorded costs of $ 11.5 million for exit and disposal activities.

The costs associated with exit and disposal activities by operating segment are as follows:

Nine Months Ended

(Amounts in millions) October 2, 2021 September 26, 2020

Exit and disposal costs

Cost of goods sold:

Commercial & Industrial Group

Repair System & Information Group

Total cost of goods sold $ — $ 7.1

Operating Expenses:

Snap-on Tools Group

Repair System & Information Group

Total operating expenses $ — $ 4.4

Total exit and disposal costs:

Commercial & Industrial Group

Snap-on Tools Group

Repair System & Information Group

Total exit and disposal costs $ — $ 11.5

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Costs associated with exit and disposal activities in the first nine months of 2020 primarily related to headcount reductions from the ongoing optimization of the company’s cost structure in Europe and various other management and realignment actions.

Snap-on’s exit and disposal accrual activity for the first nine months of 2021 is as follows:

Balance at First Six Months Balance at Third Quarter Balance at

(Amounts in millions) January 2, 2021 Provision Usage July 3,

2021 Provision Usage October 2, 2021

Snap-on did not record any costs for exit and disposal activities for both the three month periods ended April 2, 2022, and April 3, 2021.

Snap-on’s exit and disposal accrual activity for the first three months of 2022 is as follows:

Balance at First Three Months Balance at

(Amounts in millions) January 1, 2022 Provision Usage April 2,

Severance costs:

3 unchanged sentences

Total $ 7.0 $ — $ ( 0.9 ) $ 6.1

As of October 2, 2021, the company expects that of the $ 7.6 million exit and disposal accrual, approximately $ 2.0 million will be utilized in the balance of 2021, and the remainder thereafter, primarily for longer-term severance payments.

As of April 2, 2022, the company expects that approximately $ 4.3 million of the $ 6.1 million exit and disposal accrual will be utilized in 2022, and the remainder thereafter, primarily for longer-term severance payments.

Snap-on expects to fund the remaining cash requirements of its exit and disposal activities with available cash on hand, cash flows from operating activities and borrowings under the company’s existing credit facilities.

The estimated costs for the exit and disposal activities were based on management’s best business judgement under prevailing circumstances.

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.5 % and 23.8 % in the respective first nine month periods of 2021 and 2020.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 23.7 % and 23.5 % in the respective first three month periods of 2022 and 2021.

Snap-on and its subsidiaries file income tax returns in the United States and in various state, local and foreign jurisdictions.

2 unchanged sentences

Accordingly, Snap-on’s gross unrecognized tax benefits may increase by a range of zero to $ 0.8 million over the next 12 months for uncertain tax positions expected to be taken in future tax filings.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Short-term and Long-term Debt

Short-term and long-term debt as of October 2, 2021, and January 2, 2021, consisted of the following:

(Amounts in millions) October 2, 2021 January 2, 2021

6.125 % unsecured notes due 2021

Short-term and long-term debt as of April 2, 2022, and January 1, 2022, consisted of the following:

(Amounts in millions) April 2, 2022 January 1, 2022

3.25 % unsecured notes due 2027

3 unchanged sentences

1,202.8 1,200.3

notes payable and current maturities of long-term debt

Current maturities of long-term debt

notes payable

( 19.6 ) ( 17.4 )

1 unchanged sentence

Total long-term debt $ 1,183.2 $ 1,182.9

* Includes the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

As of October 2, 2021, notes payable and current maturities of long-term debt consisted of $ 17.4 million of other notes.

As of 2020 year end, notes payable and current maturities of long-term debt of $ 268.5 million included $ 250.0 million of unsecured 6.125 % notes that were repaid in September 2021 upon maturity, $ 14.9 million of other notes and $ 3.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

* Includes unamortized debt issuance costs.

Notes payable of $ 19.6 million as of April 2, 2022, compared to $ 17.4 million as of 2021 year end.

Snap-on has an $ 800 million multi-currency revolving credit facility that terminates on September 16, 2024 (the “Credit Facility”);

no amounts were outstanding under the Credit Facility as of October 2, 2021.

no amounts were outstanding under the Credit Facility as of April 2, 2022.

Borrowings under the Credit Facility bear interest at varying rates based on either:

4 unchanged sentences

Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement).

As of October 2, 2021, the company’s actual ratios of 0.10 and 0.41 , respectively, were both within the permitted ranges set forth in this financial covenant.

As of April 2, 2022, the company’s actual ratios of 0.08 and 0.30 , respectively, were both within the permitted ranges set forth in this financial covenant.

Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.

As of October 2, 2021, there were no commercial paper issuances outstanding.

As of April 2, 2022, there were no commercial paper issuances outstanding.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Financial Instruments

3 unchanged sentences

Gains or losses on derivative instruments in accumulated other comprehensive income (loss) (“Accumulated OCI”) are reclassified to earnings in the period in which earnings are affected by the underlying hedged item.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The criteria used to determine if hedge accounting treatment is appropriate are:

7 unchanged sentences

Foreign Currency Risk Management:

Snap-on has significant international operations and is subject to certain risks inherent with foreign operations that include currency fluctuations.

Snap-on has significant international operations and is subject to certain risks inherent with foreign operations, including currency fluctuations.

Foreign currency exchange risk exists to the extent that Snap-on has payment obligations or receipts denominated in currencies other than the functional currency, including intercompany loans denominated in foreign currencies.

9 unchanged sentences

Interest rate swaps:

Snap-on enters into interest rate swaps to manage risks associated with changing interest rates related to the company’s fixed rate borrowings.

Snap-on may enter into interest rate swaps to manage risks associated with changing interest rates related to the company’s fixed rate borrowings.

Interest rate swaps are accounted for as fair value hedges.

The differentials paid or received on interest rate swaps are recognized as adjustments to “Interest expense” on the accompanying Condensed Consolidated Statements of Earnings.

The change in the fair value of the derivative is recorded in “Notes payable and current maturities of long-term debt” on the accompanying Condensed Consolidate d Balance Sheets.

As of January 2, 2021, the notional amount of interest rate swaps outstanding and designated as fair value hedges was $ 100.0 million.

The interest rate swaps matured in the third quarter and there were no outstanding interest rate swaps as of October 2, 2021.

The change in the fair value of the derivative is recorded in “Long-term debt” on the accompanying Condensed Consolidate d Balance Sheets.

T here were no outstanding interest rate swaps as of both April 2, 2022, and January 1, 2022 .

Treasury locks:

Snap-on uses treasury locks to manage the potential change in interest rates in anticipation of the issuance of fixed rate debt.

Snap-on may use treasury locks to manage the potential change in interest rates in anticipation of the issuance of fixed rate debt.

Treasury locks are accounted for as cash flow hedges.

1 unchanged sentence

Upon the issuance of debt, the related amount in Accumulated OCI is released over the term of the debt and recognized as an adjustment to interest expense on the Condensed Consolidated Statements of Earnings.

There were no treasury locks outstanding as of both October 2, 2021, and January 2, 2021.

There were no treasury locks outstanding as of both April 2, 2022, and January 1, 2022.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Stock-based Deferred Compensation Risk Management:

2 unchanged sentences

Since stock-based deferred compensation liabilities increase as the company’s stock price rises and decrease as the company’s stock price declines, the equity forwards are intended to mitigate the potential impact on deferred compensation expense that may result from such mark-to-market changes.

As of October 2, 2021, Snap-on had equity forwards in place intended to manage market risk with respect to 81,000 shares of Snap-on common stock associated with its deferred compensation plans.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of April 2, 2022, Snap-on had equity forwards in place intended to manage market risk with respect to 74,000 shares of Snap-on common stock associated with its deferred compensation plans.

Counterparty Risk:

4 unchanged sentences

The fair values of financial instruments that do not approximate the carrying values in the financial statements are as follows:

October 2, 2021 January 2, 2021

April 2, 2022 January 1, 2022

(Amounts in millions) Carrying

2 unchanged sentences

Contract receivables – net 479.7 517.9 488.6 542.5

Long-term debt and notes payable and current maturities of long-term debt

Long-term debt and notes payable

1,202.8 1,196.5 1,200.3 1,339.7

5 unchanged sentences

Significant inputs to the fair value measurements of the receivables are unobservable and, as such, are classified as Level 3.

• Fair value of long-term debt and current maturities of long-term debt were estimated, using Level 2 fair value measurements, based on quoted market values of Snap-on’s publicly traded senior debt.

The carrying value of long-term debt and current maturities of long-term debt includes adjustments related to fair value hedges.

• Fair value of long-term debt was estimated, using Level 2 fair value measurements, based on quoted market values of Snap-on’s publicly traded senior debt.

The carrying value of long-term debt includes unamortized debt issuance costs.

The fair value of notes payable approximates such instruments’ carrying value due to their short-term nature.

• The fair value of all other financial instruments, including trade and other accounts receivable, accounts payable and other financial instruments, approximates such instruments’ carrying value due to their short-term nature.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Pension Plans

Snap-on’s net periodic pension cost included the following components:

Three Months Ended Nine Months Ended

(Amounts in millions) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Snap-on’s net periodic pension (benefit) cost included the following components:

Three Months Ended

(Amounts in millions) April 2, 2022 April 3, 2021

Service cost $ 7.1 $ 7.5

2 unchanged sentences

Amortization of unrecognized loss 4.5 9.1

Net periodic pension cost $ 3.3 $ 3.9 $ 9.9 $ 11.6

The components of net periodic pension cost, other than the service cost component, are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings.

Net periodic pension (benefit) cost $ ( 1.8 ) $ 3.6

The components of net periodic pension (benefit) cost, other than the service cost component, are included in “Other income (expense) - net” on the accompanying Condensed Consolidated Statements of Earnings.

See Note 17 for additional information on other income (expense) - net.

1 unchanged sentence

Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2022.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Postretirement Health Care Plans

Snap-on’s net periodic postretirement health care cost included the following components:

Three Months Ended Nine Months Ended

(Amounts in millions) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Three Months Ended

(Amounts in millions) April 2, 2022 April 3, 2021

Interest cost $ 0.3 $ 0.3

4 unchanged sentences

Stock-based Compensation and Other Stock Plans

The 2011 Incentive Stock and Awards Plan (the “2011 Plan”) provides for the grant of stock options, performance awards, stock appreciation rights (“SARs”) and restricted stock awards (which may be designated as “restricted stock units” or “RSUs”).

No further grants are being made under its predecessor, the 2001 Incentive Stock and Awards Plan (the “2001 Plan”), although outstanding awards under the 2001 Plan continue in accordance with their terms.

As of October 2, 2021, the 2011 Plan had 3,640,311 shares available for future grants.

The company uses treasury stock to deliver shares under both the 2001 and 2011 Plans.

Net stock-based compensation expense was $ 9.5 million and $ 33.3 million for the respective three and nine month periods ended October 2, 2021, and $ 5.6 million and $ 12.5 million for the respective three and nine month periods ended September 26, 2020.

Cash received from stock purchase and option plan exercises during the respective three and nine month periods ended October 2, 2021, totaled $ 3.6 million and $ 158.4 million.

Cash received from stock purchase and option plan exercises during the respective three and nine month periods ended September 26, 2020 totaled $ 2.7 million and $ 16.5 million.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 2.2 million and $ 16.1 million for the respective three and nine month periods ended October 2, 2021, and $ 1.0 million and $ 3.3 million for the respective three and nine month periods ended September 26, 2020.

The 2011 Incentive Stock and Awards Plan (the “2011 Plan”) provides for the grant of stock options, performance share units (“PSUs”), stock appreciation rights (“SARs”) and restricted stock awards (which may be designated as “restricted stock units” or “RSUs”).

As of April 2, 2022, the 2011 Plan had 3,096,154 shares available for future grants.

The company uses treasury stock to deliver shares under the 2011 Plan.

Net stock-based compensation expense was $ 9.0 million and $ 12.3 million for the respective three month periods ended April 2, 2022, and April 3, 2021.

Cash received from stock purchase and option plan exercises during the respective three month periods ended April 2, 2022, and April 3, 2021 totaled $ 5.8 million and $ 93.0 million.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 2.1 million and $ 7.7 million for the respective three month periods ended April 2, 2022, and April 3, 2021.

Stock Options:

Stock options are granted with an exercise price equal to the market value of a share of Snap-on’s common stock on the date of grant and have a contractual term of 10 years.

Stock options are granted with an exercise price equal to the market value of a share of Snap-on’s common stock on the date of grant and have a contractual term of ten years .

Stock option grants vest ratably on the first, second and third anniversaries of the date of grant.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model.

4 unchanged sentences

treasury yield curve on the grant date for the expected term of the option.

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the nine months ended October 2, 2021, and September 26, 2020, using the Black-Scholes valuation model:

Nine Months Ended

October 2, 2021 September 26, 2020

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the three months ended April 2, 2022, and April 3, 2021, using the Black-Scholes valuation model:

Three Months Ended

April 2, 2022 April 3, 2021

Expected term of option (in years)

2 unchanged sentences

Risk-free interest rate 2.00 % 0.67 %

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

A summary of stock option activity as of and for the nine months ended October 2, 2021, is presented below:

A summary of stock option activity as of and for the three months ended April 2, 2022, is presented below:

(in thousands)

5 unchanged sentences

Forfeited or expired ( 11 ) 183.55

Outstanding at October 2, 2021 2,494 149.39 5.9 $ 149.7

Exercisable at October 2, 2021 1,735 140.32 4.6 119.9

Outstanding at April 2, 2022 2,669 157.77 5.9 $ 124.8

Exercisable at April 2, 2022 2,031 147.09 4.9 115.0

* Weighted-average

The weighted-average grant date fair value of options granted during the nine months ended October 2, 2021, and September 26, 2020, was $ 26.19 and $ 22.95 , respectively.

The intrinsic value of options exercised was $ 8.6 million and $ 67.5 million during the respective three and nine month periods ended October 2, 2021, and $ 4.0 million and $ 8.7 million for the respective three and nine month periods ended September 26, 2020.

The fair value of stock options vested was $ 12.5 million and $ 14.6 million during the respective nine month periods ended October 2, 2021, and September 26, 2020.

As of October 2, 2021, there was $ 12.8 million of unrecognized compensation cost related to non-vested stock options that is expected to be recognized as a charge to earnings over a weighted-average period of 1.6 years.

Performance Share Unit and Restricted Stock Unit Awards:

Performance share units (“PSUs”) are earned and expensed using the fair value of the award over a contractual term of three years based on the company’s performance.

The weighted-average grant date fair value of options granted during the three months ended April 2, 2022, and April 3, 2021, was $ 34.35 and $ 26.19 , respectively.

The intrinsic value of options exercised was $ 2.8 million and $ 30.8 million during the respective three month periods ended April 2, 2022, and April 3, 2021.

The fair value of stock options vested was $ 10.5 million and $ 12.5 million during the respective three month periods ended April 2, 2022, and April 3, 2021.

As of April 2, 2022, there was $ 17.5 million of unrecognized compensation cost related to non-vested stock options that is expected to be recognized as a charge to earnings over a weighted-average period of 2.1 years.

Performance Share Units and Restricted Stock Units:

PSUs are earned and expensed using the fair value of the award over a contractual term of three years based on the company’s performance.

Vesting of the PSUs is dependent upon performance relative to pre-defined goals for revenue growth and return on net assets for the applicable performance period.

3 unchanged sentences

Vesting of the time-based RSUs is dependent upon continued employment over the 3-year cliff vesting period.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The fair value of PSUs and RSUs is calculated using the market value of a share of Snap-on’s common stock on the date of grant and assumed forfeitures based on recent historical experience;

in recent years, forfeitures have not been significant.

The weighted-average grant date fair value of awards granted during the nine months ended October 2, 2021, and September 26, 2020, was $ 184.69 and $ 155.34 , respectively.

There were no PSUs paid out during the nine months ended October 2, 2021.

PSUs related to 21,184 shares were paid out during the nine months ended September 26, 2020.

The weighted-average grant date fair value of awards granted during the three months ended April 2, 2022, and April 3, 2021, was $ 207.67 and $ 188.72 , respectively.

PSUs related to 46,217 shares were paid out during the three months ended April 2, 2022.

There were no PSUs paid out during the three months ended April 3, 2021.

Earned PSUs vest and are generally paid out following the conclusion of the applicable performance period upon approval by the Organization and Executive Compensation Committee of the company’s Board of Directors (the “Board”).

Changes to the company’s non-vested PSUs and RSUs during the nine months ended October 2, 2021, are as follows:

Changes to the company’s non-vested PSUs and RSUs during the three months ended April 2, 2022, are as follows:

(in thousands)

Non-vested performance awards at January 2, 2021 76 $ 155.61

Non-vested PSUs and RSUs at January 1, 2022 215 $ 180.29

Granted 104 207.67

Cancellations and other ( 2 ) 193.02

Non-vested performance awards at October 2, 2021 248 175.79

Non-vested PSUs and RSUs at April 2, 2022 317 189.22

* Weighted-average

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of October 2, 2021, there was $ 25.2 million of unrecognized compensation cost related to non-vested PSUs and RSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

Stock Appreciation Rights (“SARs”):

As of April 2, 2022, there was $ 38.3 million of unrecognized compensation cost related to non-vested PSUs and RSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 1.8 years.

Stock Appreciation Rights:

The company also issues stock-settled and cash-settled SARs to certain key non-U.S.

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treasury yield curve in effect as of the grant date (for stock-settled SARs) or reporting date (for cash-settled SARs) for the length of time corresponding to the expected term of the SARs.

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the nine months ended October 2, 2021, and September 26, 2020, using the Black-Scholes valuation model:

Nine Months Ended

October 2, 2021 September 26, 2020

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the three months ended April 2, 2022, and April 3, 2021, using the Black-Scholes valuation model:

Three Months Ended

April 2, 2022 April 3, 2021

Expected term of stock-settled SARs (in years)

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Risk-free interest rate 1.96 % 0.19 %

Changes to the company’s stock-settled SARs during the nine months ended October 2, 2021, are as follows:

A summary of stock-settled SARs as of and for the three months ended April 2, 2022, are as follows:

Stock-settled

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Forfeited or expired ( 14 ) 162.84

Outstanding at October 2, 2021 398 159.99 6.9 $ 19.7

Exercisable at October 2, 2021 228 151.04 5.6 13.3

Outstanding at April 2, 2022 454 168.56 7.0 $ 16.6

Exercisable at April 2, 2022 296 155.09 5.8 14.4

* Weighted-average

The weighted-average grant date fair value of stock-settled SARs granted during the nine months ended October 2, 2021, and September 26, 2020, was $ 24.05 and $ 21.31 , respectively.

The intrinsic value of stock-settled SARs exercised was $ 0.1 million and $ 3.1 million during the respective three and nine month periods ended October 2, 2021, and zero for both the three and nine months ended September 26, 2020.

The fair value of stock-settled SARs vested was $ 2.1 million and $ 2.3 million during the respective nine month periods ended October 2, 2021, and September 26, 2020.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of October 2, 2021, there was $ 2.7 million of unrecognized compensation cost related to non-vested stock-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the nine months ended October 2, 2021, and September 26, 2020, using the Black-Scholes valuation model:

Nine Months Ended

October 2, 2021 September 26, 2020

The weighted-average grant date fair value of stock-settled SARs granted during the three months ended April 2, 2022, and April 3, 2021, was $ 32.63 and $ 24.05 , respectively.

The intrinsic value of stock-settled SARs exercised was $ 0.2 million and $ 2.2 million during the respective three month periods ended April 2, 2022, and April 3, 2021.

The fair value of stock-settled SARs vested was $ 2.0 million and $ 2.1 million during the respective three month periods ended April 2, 2022, and April 3, 2021.

As of April 2, 2022, there was $ 4.1 million of unrecognized compensation cost related to non-vested stock-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 2.2 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the three months ended April 2, 2022, and April 3, 2021, using the Black-Scholes valuation model:

Three Months Ended

April 2, 2022 April 3, 2021

Expected term of cash-settled SARs (in years)

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Risk-free interest rate 2.58 % 0.39 %

The intrinsic value of cash-settled SARs exercised was zero and $ 0.6 million during the respective three and nine month periods ended October 2, 2021, and zero and $ 0.2 million for the respective three and nine month periods ended September 26, 2020.

The fair value of cash-settled SARs vested was $ 0.1 million and zero during the respective nine month periods ended October 2, 2021, and September 26, 2020.

Changes to the company’s non-vested cash-settled SARs during the nine months ended October 2, 2021, are as follows:

The intrinsic value of cash-settled SARs exercised was $ 0.4 million and $ 0.5 million during the respective three month periods ended April 2, 2022, and April 3, 2021.

The fair value of cash-settled SARs vested was $ 0.1 million for both of the three month periods ended April 2, 2022, and April 3, 2021.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Changes to the company’s non-vested cash-settled SARs during the three months ended April 2, 2022, are as follows:

(in thousands)

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Vested ( 1 ) 44.86

Non-vested cash-settled SARs at October 2, 2021 2 43.11

Non-vested cash-settled SARs at April 2, 2022 2 36.59

* Weighted-average

As of October 2, 2021, there was $ 0.1 million of unrecognized compensation cost related to non-vested cash-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

As of April 2, 2022, there was $ 0.1 million of unrecognized compensation cost related to non-vested cash-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 2.2 years.

Restricted Stock Awards – Non-employee Directors:

The company awarded 6,858 shares and 7,380 shares of restricted stock to non-employee directors for the respective nine month periods ended October 2, 2021, and September 26, 2020.

The company awarded 6,525 shares and 6,858 shares of restricted stock to non-employee directors for the respective three month periods ended April 2, 2022, and April 3, 2021.

The fair value of the restricted stock awards is expensed over a one-year vesting period based on the fair value on the date of grant.

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The purchase price of the company’s common stock to participants is the lesser of the mean of the high and low price of the stock on the beginning date (May 15) or ending date (the following May 14) of each plan year.

For the nine months ended October 2, 2021, and September 26, 2020, issuances under this plan totaled 82,286 shares and 25,425 shares, respectively.

As of October 2, 2021, shares reserved for issuance under this plan totaled 597,275 shares and Snap-on held participant contributions of approximately $ 1.8 million.

There were no share issuances under this plan for the three month periods ended April 2, 2022, and April 3, 2021.

As of April 2, 2022, shares reserved for issuance under this plan totaled 597,275 shares and Snap-on held participant contributions of approximately $ 4.1 million.

Participants are able to withdraw from the plan at any time prior to the ending date and receive back all contributions made during the plan year.

Compensation expense for plan participants was zero and $ 9.6 million for the respective three and nine month periods ended October 2, 2021, and $ 0.2 million and $ 0.1 million for the respective three and nine month periods ended September 26, 2020.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Compensation expense for plan participants was zero and $ 4.8 million for the respective three month periods ended April 2, 2022, and April 3, 2021.

Franchisee stock purchase plan:

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For the nine months ended October 2, 2021, and September 26, 2020, issuances under this plan totaled 143,388 shares and 55,980 shares, respectively.

As of October 2, 2021, shares reserved for issuance under this plan totaled 270,162 shares and Snap-on held participant contributions of approximately $ 4.2 million.

There were no share issuances under this plan for the three month periods ended April 2, 2022, and April 3, 2021.

As of April 2, 2022, shares reserved for issuance under this plan totaled 270,162 shares and Snap-on held participant contributions of approximately $ 9.4 million.

Participants are able to withdraw from the plan at any time prior to the ending date and receive back all contributions made during the plan year.

The company recognized mark-to-market expense of zero and $ 16.7 million for the respective three and nine month periods ended October 2, 2021, and $ 0.5 million and $ 0.3 million for the respective three and nine month periods ended September 26, 2020.

The company recognized mark-to-market expense of zero and $ 5.4 million for the respective three month periods ended April 2, 2022, and April 3, 2021.

Earnings Per Share

The shares used in the computation of the company’s basic and diluted earnings per common share are as follows:

Three Months Ended Nine Months Ended

October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Three Months Ended

April 2, 2022 April 3, 2021

Weighted-average common shares outstanding 53,396,714 54,184,438

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The dilutive effect of the potential exercise of outstanding options and stock-settled SARs to purchase common shares is calculated using the treasury stock method.

As of October 2, 2021, there were no awards outstanding that were anti-dilutive;

as of September 26, 2020, there were 2,750,149 awards outstanding that were anti-dilutive.

As of April 2, 2022, there were 358,774 awards outstanding that were anti-dilutive;

as of April 3, 2021, there were 400 awards outstanding that were anti-dilutive.

Performance-based equity awards are included in the diluted earnings per share calculation based on the attainment of the applicable performance metrics to date.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Commitments and Contingencies

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Snap-on calculates its accrual requirements based on historic warranty loss experience that is periodically adjusted for recent actual experience, including the timing of claims during the warranty period and actual costs incurred.

Snap-on’s product warranty accrual activity for the three and nine months ended October 2, 2021, and September 26, 2020, is as follows:

Three Months Ended Nine Months Ended

(Amounts in millions) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Snap-on’s product warranty accrual activity for the three months ended April 2, 2022, and April 3, 2021, is as follows:

Three Months Ended

(Amounts in millions) April 2, 2022 April 3, 2021

Warranty reserve:

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Snap-on is involved in various legal matters that are being litigated and/or settled in the ordinary course of business.

Although it is not possible to predict the outcome of these legal matters, management believes that the results of all legal matters will not have a material impact on Snap-on’s consolidated financial position, results of operations or cash flows.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Although it is not possible to predict the outcome of legal matters, management believes that the results of all legal matters will not have a material impact on Snap-on’s consolidated financial position, results of operations or cash flows.

Lessee Accounting:

Supplemental balance sheet information related to leases as of October 2, 2021, and January 2, 2021 is as follows:

(Amounts in millions) October 2, 2021 January 2, 2021

Supplemental balance sheet information related to leases as of April 2, 2022, and January 1, 2022, is as follows:

(Amounts in millions) April 2, 2022 January 1, 2022

Finance leases:

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Lessor Accounting:

Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics and equipment products and it offers financing to franchisees for vehicle leases.

Snap-on’s Financial Services business offers its customers lease financing for the lease of tools, diagnostics, and equipment products and to franchisees who require financing for vehicle leases.

Sales-type leases are included in both “Finance receivables - net” and “Long-term finance receivables - net” and also in both “Contract receivables - net” and “Long-term contract receivables - net” on the accompanying Condensed Consolidated Balance Sheets.

See Note 4 for further information on finance and contract receivables.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Other Income (Expense) – Net

“Other income (expense) – net” on the accompanying Condensed Consolidated Statements of Earnings consists of the following:

Three Months Ended Nine Months Ended

(Amounts in millions) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Three Months Ended

(Amounts in millions) April 2, 2022 April 3, 2021

Interest income $ 0.5 $ 0.4

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Net periodic pension and postretirement benefits – non-service 8.8 3.8

Foreign currency translation loss from sale of equity interest — — ( 1.0 ) —

Other — 0.1 0.3 0.1

Total other income (expense) – net $ 8.3 $ 4.3

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Accumulated Other Comprehensive Income (Loss)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended October 2, 2021:

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended April 2, 2022:

(Amounts in millions) Foreign

2 unchanged sentences

Postretirement

Balance as of July 3, 2021 $ ( 84.5 ) $ 9.7 $ ( 287.9 ) $ ( 362.7 )

Balance as of January 1, 2022 $ ( 145.1 ) $ 8.9 $ ( 207.7 ) $ ( 343.9 )

Other comprehensive loss before reclassifications ( 9.7 ) — — ( 9.7 )

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Net other comprehensive income (loss) ( 9.7 ) ( 0.4 ) 3.4 ( 6.7 )

Balance as of October 2, 2021 $ ( 123.1 ) $ 9.3 $ ( 281.0 ) $ ( 394.8 )

The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended October 2, 2021:

Balance as of April 2, 2022 $ ( 154.8 ) $ 8.5 $ ( 204.3 ) $ ( 350.6 )

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended April 3, 2021:

(Amounts in millions) Foreign

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Net other comprehensive income (loss) ( 29.0 ) ( 0.4 ) 6.9 ( 22.5 )

Balance as of October 2, 2021 $ ( 123.1 ) $ 9.3 $ ( 281.0 ) $ ( 394.8 )

The following is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 26, 2020:

(Amounts in millions) Foreign

Translation Cash Flow

Hedges Defined

Postretirement

Balance as of June 27, 2020 $ ( 207.6 ) $ 11.3 $ ( 318.1 ) $ ( 514.4 )

Other comprehensive income before reclassifications 42.6 — — 42.6

Amounts reclassified from Accumulated OCI — ( 0.4 ) 6.6 6.2

Net other comprehensive income (loss) 42.6 ( 0.4 ) 6.6 48.8

Balance as of September 26, 2020 $ ( 165.0 ) $ 10.9 $ ( 311.5 ) $ ( 465.6 )

Balance as of April 3, 2021 $ ( 103.7 ) $ 10.1 $ ( 294.7 ) $ ( 388.3 )

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 26, 2020:

(Amounts in millions) Foreign

Translation Cash Flow

Hedges Defined

Postretirement

Balance as of December 28, 2019 $ ( 187.4 ) $ 10.7 $ ( 331.2 ) $ ( 507.9 )

Other comprehensive income before reclassifications 22.4 1.4 — 23.8

Amounts reclassified from Accumulated OCI — ( 1.2 ) 19.7 18.5

Net other comprehensive income 22.4 0.2 19.7 42.3

Balance as of September 26, 2020 $ ( 165.0 ) $ 10.9 $ ( 311.5 ) $ ( 465.6 )

The reclassifications out of Accumulated OCI for the three and nine month periods ended October 2, 2021, and September 26, 2020, are as follows:

The reclassifications out of Accumulated OCI for the three month periods ended April 2, 2022, and April 3, 2021, are as follows:

Amount Reclassified from Accumulated OCI

Three Months Ended Nine Months Ended

October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Statement of Earnings

Three Months Ended

April 2, 2022 April 3, 2021 Statement of Earnings

(Amounts in millions)

Foreign currency loss from sale of equity interest:

Foreign currency $ — $ — $ 1.0 $ — Other income (expense) - net

Income tax expense — — — — Income tax expense

Net of tax — — 1.0 —

Gains on cash flow hedges:

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see Note 11 and Note 12 for further information.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Snap-on’s business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance.

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Corporate assets consist of cash and cash equivalents (excluding cash held at Financial Services), deferred income taxes and certain other assets.

All intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

Intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Financial Data by Segment:

Three Months Ended Nine Months Ended

(Amounts in millions) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020

Three Months Ended

(Amounts in millions) April 2, 2022 April 3, 2021

Commercial & Industrial Group $ 340.1 $ 345.7

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Earnings before income taxes and equity earnings $ 290.2 $ 256.2

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Amounts in millions) October 2, 2021 January 2, 2021

(Amounts in millions) April 2, 2022 January 1, 2022

Commercial & Industrial Group $ 1,225.1 $ 1,209.3

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements