What changed in this filing

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Item 1. Financial Statements

2024-07-18 compared with 2024-04-18 · 297 added, 162 removed, 870 unchanged (35% of the section changed)

3 unchanged sentences

(Amounts in millions, except per share data)

Three Months Ended

March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Net sales $ 1,179.4 $ 1,191.3 $ 2,361.7 $ 2,374.3

26 unchanged sentences

(Amounts in millions)

Three Months Ended

March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Comprehensive income (loss):

5 unchanged sentences

Amortization of net unrecognized losses

2.2 0.1 4.0 0.1

Income tax benefit

( 0.5 ) — ( 0.9 ) —

1.7 0.1 3.1 0.1

Total comprehensive income 266.1 269.8 491.9 541.8

73 unchanged sentences

(Amounts in millions, except share data)

The following summarizes the changes in total equity for the three month period ended March 30, 2024:

The following summarizes the changes in total equity for the three month period ended June 29, 2024:

Shareholders’ Equity Attributable to Snap-on Incorporated

6 unchanged sentences

Interests Total

Balance at March 30, 2024 $ 67.5 $ 527.4 $ 7,113.1 $ ( 493.3 ) $ ( 2,073.7 ) $ 22.3 $ 5,163.3

Net earnings for the three months ended June 29, 2024

— — 271.2 — — 6.4 277.6

Other comprehensive loss — — — ( 11.5 ) — — ( 11.5 )

Cash dividends – $ 1.86 per share

— — ( 98.0 ) — — — ( 98.0 )

Stock compensation plans — 15.4 — — 15.9 — 31.3

Share repurchases – 174,000 shares

— — — — ( 47.4 ) — ( 47.4 )

Other — — ( 0.3 ) — — ( 6.1 ) ( 6.4 )

Balance at June 29, 2024 $ 67.5 $ 542.8 $ 7,286.0 $ ( 504.8 ) $ ( 2,105.2 ) $ 22.6 $ 5,308.9

The following summarizes the changes in total equity for the six month period ended June 29, 2024:

Shareholders’ Equity Attributable to Snap-on Incorporated

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury

Stock Noncontrolling

Interests Total

Balance at December 30, 2023 $ 67.5 $ 545.5 $ 6,948.5 $ ( 449.5 ) $ ( 2,040.7 ) $ 22.1 $ 5,093.4

Net earnings for the three months ended March 30, 2024

Net earnings for the six months ended June 29, 2024

— — 534.7 — — 12.5 547.2

6 unchanged sentences

Other — — ( 1.0 ) — — ( 12.0 ) ( 13.0 )

Balance at March 30, 2024 $ 67.5 $ 527.4 $ 7,113.1 $ ( 493.3 ) $ ( 2,073.7 ) $ 22.3 $ 5,163.3

The following summarizes the changes in total equity for the three month period ended April 1, 2023:

Balance at June 29, 2024 $ 67.5 $ 542.8 $ 7,286.0 $ ( 504.8 ) $ ( 2,105.2 ) $ 22.6 $ 5,308.9

See Notes to Condensed Consolidated Financial Statements.

The following summarizes the changes in total equity for the three month period ended July 1, 2023:

Shareholders’ Equity Attributable to Snap-on Incorporated

6 unchanged sentences

Interests Total

Balance at April 1,2023 $ 67.5 $ 500.2 $ 6,458.1 $ ( 510.6 ) $ ( 1,905.0 ) $ 22.2 $ 4,632.4

Net earnings for the three months ended July 1, 2023

— — 264.0 — — 5.9 269.9

Other comprehensive loss — — — ( 0.1 ) — — ( 0.1 )

Cash dividends – $ 1.62 per share

— — ( 85.9 ) — — — ( 85.9 )

Stock compensation plans — 20.9 — — 43.4 — 64.3

Share repurchases – 359,000 shares

— — — — ( 94.8 ) — ( 94.8 )

Other — ( 0.6 ) — — ( 5.9 ) ( 6.5 )

Balance at July 1, 2023 $ 67.5 $ 521.1 $ 6,635.6 $ ( 510.7 ) $ ( 1,956.4 ) $ 22.2 $ 4,779.3

The following summarizes the changes in total equity for the six month period ended July 1, 2023:

Shareholders’ Equity Attributable to Snap-on Incorporated

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury

Stock Noncontrolling

Interests Total

Balance at December 31, 2022 $ 67.4 $ 499.9 $ 6,296.2 $ ( 528.3 ) $ ( 1,853.9 ) $ 22.2 $ 4,503.5

Net earnings for the three months ended April 1, 2023

Net earnings for the six months ended July 1, 2023

— — 512.7 — — 11.5 524.2

6 unchanged sentences

Other 0.1 — ( 1.3 ) — — ( 11.5 ) ( 12.7 )

Balance at April 1, 2023 $ 67.5 $ 500.2 $ 6,458.1 $ ( 510.6 ) $ ( 1,905.0 ) $ 22.2 $ 4,632.4

Balance at July 1, 2023 $ 67.5 $ 521.1 $ 6,635.6 $ ( 510.7 ) $ ( 1,956.4 ) $ 22.2 $ 4,779.3

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Amounts in millions)

Three Months Ended

March 30, 2024 April 1, 2023

Six Months Ended

June 29, 2024 July 1, 2023

Operating activities:

6 unchanged sentences

Stock-based compensation expense 15.8 20.4

Deferred income tax provision (benefit) 1.6 ( 0.2 )

Deferred income tax benefit ( 4.4 ) ( 9.2 )

Gain on sales of assets ( 0.3 ) ( 0.3 )

15 unchanged sentences

Financing activities:

Net increase (decrease) in other short-term borrowings ( 0.4 ) 0.8

Net increase in other short-term borrowings 0.4 0.3

Cash dividends paid ( 196.2 ) ( 172.0 )

Purchases of treasury stock ( 117.6 ) ( 182.0 )

Proceeds from stock purchase plan and stock option exercises 28.3 32.8

Proceeds from stock purchase plans and stock option exercises 51.7 84.6

Other ( 30.4 ) ( 19.5 )

14 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 2023 Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (“2023 year end”).

The company’s 2024 fiscal first quarter ended on March 30, 2024, and its 2023 fiscal first quarter ended on April 1, 2023.

The company’s 2024 and 2023 fiscal first quarters each contained 13 weeks of operating results.

The company’s 2024 fiscal second quarter ended on June 29, 2024, and its 2023 fiscal second quarter ended on July 1, 2023.

The company’s 2024 and 2023 fiscal second 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 month periods ended March 30, 2024, and April 1, 2023, 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 and six month periods ended June 29, 2024, and July 1, 2023, 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

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , which requires the disclosure of additional segment information.

2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024;

this ASU allows for early adoption.

The adoption of this ASU is not expected to have a material impact on Snap-on’s Condensed Consolidated Financial Statements.

In December 2023, the FASB issued ASU No.

5 unchanged sentences

The adoption of this ASU is not expected to have a material impact on Snap-on’s Condensed Consolidated Financial Statements.

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , which requires the disclosure of additional segment information.

2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024;

this ASU allows for early adoption.

The adoption of this ASU is not expected to have a material impact on Snap-on’s Condensed Consolidated Financial Statements.

Revenue Recognition

4 unchanged sentences

The following table shows the consolidated revenues by revenue source:

Three Months Ended

(Amounts in millions) March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

(Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Revenue from contracts with customers $ 1,172.0 $ 1,184.6 $ 2,347.2 $ 2,361.1

8 unchanged sentences

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

For the Three Months Ended March 30, 2024

For the Three Months Ended June 29, 2024

Commercial Snap-on Repair Systems

10 unchanged sentences

Total revenue $ 372.0 $ 482.0 $ 454.8 $ 100.5 $ ( 129.4 ) $ 1,279.9

For the Three Months Ended April 1, 2023

For the Six Months Ended June 29, 2024

Commercial Snap-on Repair Systems

12 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Three Months Ended July 1, 2023

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

North America* $ 144.3 $ 459.3 $ 285.9 $ — $ — $ 889.5

Europe 75.5 39.0 63.6 — — 178.1

All other 70.0 24.8 28.9 — — 123.7

External net sales 289.8 523.1 378.4 — — 1,191.3

Intersegment net sales 74.4 — 73.6 — ( 148.0 ) —

Total net sales 364.2 523.1 452.0 — ( 148.0 ) 1,191.3

Financial services revenue — — — 93.4 — 93.4

Total revenue $ 364.2 $ 523.1 $ 452.0 $ 93.4 $ ( 148.0 ) $ 1,284.7

For the Six Months Ended July 1, 2023

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

North America* $ 281.9 $ 933.2 $ 567.7 $ — $ — $ 1,782.8

Europe 150.5 74.7 126.8 — — 352.0

All other 136.0 52.2 51.3 — — 239.5

External net sales 568.4 1,060.1 745.8 — — 2,374.3

Intersegment net sales 159.6 — 152.8 — ( 312.4 ) —

Total net sales 728.0 1,060.1 898.6 — ( 312.4 ) 2,374.3

Financial services revenue — — — 186.0 — 186.0

Total revenue $ 728.0 $ 1,060.1 $ 898.6 $ 186.0 $ ( 312.4 ) $ 2,560.3

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

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

For the Three Months Ended March 30, 2024

For the Three Months Ended June 29, 2024

Commercial Snap-on Repair Systems

8 unchanged sentences

Total revenue $ 372.0 $ 482.0 $ 454.8 $ 100.5 $ ( 129.4 ) $ 1,279.9

For the Three Months Ended April 1, 2023

For the Six Months Ended June 29, 2024

Commercial Snap-on Repair Systems

8 unchanged sentences

Total revenue $ 731.9 $ 982.1 $ 918.6 $ 200.1 $ ( 270.9 ) $ 2,561.8

For the Three Months Ended July 1, 2023

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

Vehicle service professionals $ 21.7 $ 523.1 $ 378.4 $ — $ — $ 923.2

All other professionals 268.1 — — — — 268.1

External net sales 289.8 523.1 378.4 — — 1,191.3

Intersegment net sales 74.4 — 73.6 — ( 148.0 ) —

Total net sales 364.2 523.1 452.0 — ( 148.0 ) 1,191.3

Financial services revenue — — — 93.4 — 93.4

Total revenue $ 364.2 $ 523.1 $ 452.0 $ 93.4 $ ( 148.0 ) $ 1,284.7

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Six Months Ended July 1, 2023

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

Vehicle service professionals $ 42.8 $ 1,060.1 $ 745.8 $ — $ — $ 1,848.7

All other professionals 525.6 — — — — 525.6

External net sales 568.4 1,060.1 745.8 — — 2,374.3

Intersegment net sales 159.6 — 152.8 — ( 312.4 ) —

Total net sales 728.0 1,060.1 898.6 — ( 312.4 ) 2,374.3

Financial services revenue — — — 186.0 — 186.0

Total revenue $ 728.0 $ 1,060.1 $ 898.6 $ 186.0 $ ( 312.4 ) $ 2,560.3

Nature of goods and services:

9 unchanged sentences

The remaining sales revenue is earned over time primarily for software subscriptions, other subscription service agreements and extended warranty programs.

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.

2 unchanged sentences

Contracts with customers are comprised of customer purchase orders, invoices and written contracts.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For certain performance obligations related to software subscriptions, extended warranty and other subscription agreements that are settled over time, Snap-on has elected not to disclose the value of unsatisfied performance obligations for:

3 unchanged sentences

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

Snap-on had approximately $ 187.0 million of long-term contracts that have fixed consideration that extends beyond one year as of March 30, 2024.

Snap-on had approximately $ 184.0 million of long-term contracts that have fixed consideration that extends beyond one year as of June 29, 2024.

Snap-on expects to recognize approximately 65 % of these contracts as revenue by the end of fiscal 2025, an additional 30 % by the end of fiscal 2027, and the balance thereafter.

2 unchanged sentences

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

The balance of total contract liabilities was $ 66.3 million and $ 63.3 million at March 30, 2024, and December 30, 2023, respectively.

The balance of total contract liabilities was $ 68.8 million and $ 63.3 million at June 29, 2024, and December 30, 2023, 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 months ended March 30, 2024, Snap-on recognized $ 35.4 million of revenue that was included in the $ 63.3 million contract liability balance at December 30, 2023, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

During the three and six months ended June 29, 2024, Snap-on recognized $ 13.4 million and $ 48.8 million of revenue that was included in the $ 63.3 million contract liability balance at December 30, 2023, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

On November 20, 2023, Snap-on acquired certain assets of SAVTEQ, Inc.

8 unchanged sentences

The $ 19.8 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 SAVTEQ have been included in the Repair Systems & Information Group since the acquisition date, and the results of operations and assets of Mountz have been included in the Commercial & Industrial Group since the acquisition date.

For segment reporting purposes, the results of operations and assets of SAVTEQ have been included in the Repair Systems & Information Group and the results of operations and assets of Mountz 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, individually and collectively, were neither significant nor material to Snap-on’s results of operations or financial position.

2 unchanged sentences

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.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of Snap-on’s trade and other accounts receivable as of March 30, 2024, and December 30, 2023, are as follows:

(Amounts in millions) March 30,

The components of Snap-on’s trade and other accounts receivable as of June 29, 2024, and December 30, 2023, are as follows:

(Amounts in millions) June 29,

2024 December 30, 2023

2 unchanged sentences

Total trade and other accounts receivable – net $ 783.5 $ 791.3

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three months ended March 30, 2024, and April 1, 2023:

Three Months Ended

(Amounts in millions) March 30, 2024 April 1, 2023

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three and six months ended June 29, 2024, and July 1, 2023:

Three Months Ended Six Months Ended

(Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Allowances for credit losses:

2 unchanged sentences

6.6 3.5 10.9 8.2

( 5.6 ) ( 2.5 ) ( 8.6 ) ( 7.3 )

Currency translation

( 0.4 ) 0.1 ( 0.8 ) 0.3

End of period $ 36.5 $ 32.3 $ 36.5 $ 32.3

9 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of Snap-on’s current finance and contract receivables as of March 30, 2024, and December 30, 2023, are as follows:

(Amounts in millions) March 30,

The components of Snap-on’s current finance and contract receivables as of June 29, 2024, and December 30, 2023, are as follows:

(Amounts in millions) June 29,

2024 December 30, 2023

20 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 March 30, 2024, and December 30, 2023, are as follows:

(Amounts in millions) March 30,

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of June 29, 2024, and December 30, 2023, are as follows:

(Amounts in millions) June 29,

2024 December 30, 2023

33 unchanged sentences

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

The amortized cost basis of finance and contract receivables by origination year as of March 30, 2024, and charge-offs recorded in the three months ended March 30, 2024, by origination year, are as follows:

The amortized cost basis of finance and contract receivables by origination year as of June 29, 2024, and charge-offs recorded in the six months ended June 29, 2024, by origination year, are as follows:

(Amounts in millions) 2024 2023 2022 2021 2020 Prior Total

37 unchanged sentences

The allowances for credit losses are 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 months ended March 30, 2024, and April 1, 2023:

The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and six months ended June 29, 2024, and July 1, 2023:

Three Months Ended

March 30, 2024 Three Months Ended

April 1, 2023

June 29, 2024 Six Months Ended

June 29, 2024

(Amounts in millions) Finance

9 unchanged sentences

End of period $ 71.1 $ 6.8 $ 71.1 $ 6.8

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Three Months Ended

July 1, 2023 Six Months Ended

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

Allowances for credit losses:

Beginning of period $ 62.7 $ 6.5 $ 60.9 $ 6.6

Provision for credit losses 13.7 0.3 27.9 0.6

Charge-offs ( 13.9 ) ( 0.4 ) ( 28.4 ) ( 0.9 )

Recoveries 2.5 0.1 4.6 0.2

Currency translation 0.1 — 0.1 —

End of period $ 65.1 $ 6.5 $ 65.1 $ 6.5

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

3 unchanged sentences

Removal from delinquent status occurs when the cumulative amount of monthly contractual payments then due have been received by the company.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

It is the general practice of Snap-on’s financial services business not to engage in contract or loan modifications.

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

The amount and number of finance and contract receivable modifications as of March 30, 2024, and December 30, 2023, were immaterial to both the financial services portfolio and the company’s results of operations and financial position.

The aging of finance and contract receivables as of March 30, 2024, and December 30, 2023, is as follows:

The amount and number of finance and contract receivable modifications as of June 29, 2024, and December 30, 2023, 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 June 29, 2024, and December 30, 2023, is as follows:

(Amounts in millions) 30-59

2 unchanged sentences

Past Due Total Greater

March 30, 2024:

June 29, 2024:

Finance receivables $ 20.5 $ 12.2 $ 21.6 $ 54.3 $ 1,936.1 $ 1,990.4 $ 18.3

17 unchanged sentences

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 March 30, 2024, and December 30, 2023, is as follows:

(Amounts in millions) March 30,

The amount of finance and contract receivables on nonaccrual status as of June 29, 2024, and December 30, 2023, is as follows:

(Amounts in millions) June 29,

2024 December 30, 2023

4 unchanged sentences

Inventories by major classification are as follows:

(Amounts in millions) March 30,

(Amounts in millions) June 29,

2024 December 30, 2023

5 unchanged sentences

Total inventories – net $ 965.0 $ 1,005.9

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 59 % of total inventories as of both March 30, 2024, and December 30, 2023.

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 59 % of total inventories as of both June 29, 2024, and December 30, 2023.

The company accounts for its non-U.S.

inventory on the FIFO method.

As of March 30, 2024, approximately 36 % of the company’s U.S.

As of June 29, 2024, approximately 37 % of the company’s U.S.

inventory was accounted for using the FIFO method and 63 % was accounted for using the last-in, first-out (“LIFO”) method.

There were no LIFO inventory liquidations in the three months ended March 30, 2024, or April 1, 2023.

There were no LIFO inventory liquidations in the three and six months ended June 29, 2024, or July 1, 2023.

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by segment for the three months ended March 30, 2024, are as follows:

The changes in the carrying amount of goodwill by segment for the six months ended June 29, 2024, are as follows:

(Amounts in millions) Commercial

5 unchanged sentences

Acquisition adjustments ( 13.2 ) — — ( 13.2 )

Balance as of March 30, 2024 $ 325.4 $ 12.4 $ 733.5 $ 1,071.3

Goodwill of $ 1,071.3 million as of March 30, 2024, includes $ 19.8 million from the acquisition of Mountz.

Balance as of June 29, 2024 $ 322.7 $ 12.4 $ 732.8 $ 1,067.9

Goodwill of $ 1,067.9 million as of June 29, 2024, includes $ 19.8 million from the acquisition of Mountz.

In the first quarter of 2024, the purchase accounting valuations for the acquired net assets of Mountz were completed, resulting in a reduction of goodwill of $ 13.2 million from year end 2023.

3 unchanged sentences

Additional disclosures related to other intangible assets are as follows:

March 30, 2024 December 30, 2023

June 29, 2024 December 30, 2023

(Amounts in millions) Gross Carrying Value Accumulated

12 unchanged sentences

The gross carrying value of customer relationships and non-amortized trademarks includes $ 8.7 million and $ 5.4 million, respectively, related to the Mountz acquisition.

Snap-on completed its annual impairment testing of goodwill and other indefinite-lived intangible assets in the second quarter of 2024, the results of which did not result in any impairment.

Provisions for the 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 long-term deterioration in macroeconomic, industry and market conditions, the loss of key customers, changes in technology or markets, changes in key personnel or litigation, a sustained decrease in share price and/or other events.

As of March 30, 2024, the company had no accumulated impairment losses.

As of June 29, 2024, the company had no accumulated impairment losses.

The weighted-average amortization periods related to other intangible assets are as follows:

4 unchanged sentences

Intangible asset renewal costs are expensed as incurred.

The aggregate amortization expense was $ 6.3 million and $ 6.9 million for the respective three month periods ended March 30, 2024, and April 1, 2023.

The aggregate amortization expense was $ 6.4 million and $ 12.7 million for the respective three and six month periods ended June 29, 2024, and $ 7.0 million and $ 13.9 million for the respective three and six month periods ended July 1, 2023.

Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $ 25.1 million in 2024, $ 19.6 million in 2025, $ 14.5 million in 2026, $ 12.2 million in 2027, $ 10.6 million in 2028, and $ 8.0 million in 2029.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 22.2 % and 23.1 % in the respective first three month periods of 2024 and 2023.

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 22.4 % and 23.0 % in the first six months of fiscal 2024 and 2023, respectively.

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

3 unchanged sentences

Short-term and Long-term Debt

Short-term and long-term debt as of March 30, 2024, and December 30, 2023, consisted of the following:

(Amounts in millions) March 30,

Short-term and long-term debt as of June 29, 2024, and December 30, 2023, consisted of the following:

(Amounts in millions) June 29,

2024 December 30, 2023

9 unchanged sentences

* Includes unamortized debt issuance costs and issuance discounts.

Notes payable of $ 15.2 million as of March 30, 2024, compared to $ 15.6 million as of 2023 year end.

Snap-on has a $ 900 million multicurrency revolving credit facility that terminates on September 12, 2028 (the “Credit Facility”).

S nap-on has a $ 900 million multicurrency revolving credit facility that terminates on September 12, 2028 (the “Credit Facility”).

The Credit Facility contains an accordion feature that, subject to certain customary conditions, may allow the maximum commitment to be increased by up to $ 450 million with the approval of the lenders providing additional commitments.

No amounts were borrowed or outstanding under the Credit Facility during the three months ended and as of March 30, 2024.

No amounts were borrowed or outstanding under the Credit Facility during the six months ended and as of June 29, 2024.

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 March 30, 2024, the company’s actual ratios of 0.03 and 0.10 , respectively, were both within the permitted ranges set forth in this financial covenant.

As of June 29, 2024, the company’s actual ratios of 0.01 and 0.03 , 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 March 30, 2024, there were no commercial paper issuances outstanding.

As of June 29, 2024, there were no commercial paper issuances outstanding.

SNAP-ON INCORPORATED

31 unchanged sentences

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 March 30, 2024, and December 30, 2023 .

T here were no outstanding interest rate swaps as of both June 29, 2024, and December 30, 2023 .

Treasury locks:

3 unchanged sentences

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 March 30, 2024, and December 30, 2023.

There were no treasury locks outstanding as of both June 29, 2024, and December 30, 2023.

See Note 16 for additional information on Other income (expense) – net.

5 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 March 30, 2024, Snap-on had equity forwards in place intended to manage market risk with respect to 76,900 shares of Snap-on common stock associated with its deferred compensation plans.

As of June 29, 2024, Snap-on had equity forwards in place intended to manage market risk with respect to 77,600 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:

March 30, 2024 December 30, 2023

June 29, 2024 December 30, 2023

(Amounts in millions) Carrying

18 unchanged sentences

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

Three Months Ended

(Amounts in millions) March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

(Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Service cost $ 5.0 $ 4.5 $ 10.0 $ 9.4

9 unchanged sentences

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

Three Months Ended

(Amounts in millions) March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

(Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Interest cost $ 0.4 $ 0.6 $ 0.9 $ 1.1

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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 March 30, 2024, the 2011 Plan had 2,047,931 shares available for future grants.

As of June 29, 2024, the 2011 Plan had 2,080,196 shares available for future grants.

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

Net stock-based compensation expense was $ 9.8 million and $ 10.2 million for the respective three month periods ended March 30, 2024, and April 1, 2023.

Cash received from stock purchase plan and stock option exercises during the respective three month periods ended March 30, 2024, and April 1, 2023 totaled $ 28.3 million and $ 32.8 million.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 9.7 million and $ 5.1 million for the respective three month periods ended March 30, 2024, and April 1, 2023.

Net stock-based compensation expense was $ 6.0 million and $ 15.8 million for the respective three and six month periods ended June 29, 2024, and $ 10.2 million and $ 20.4 million for the respective three and six month periods ended July 1, 2023.

Cash received from stock purchase plans and stock option exercises totaled $ 23.4 million and $ 51.7 million during the respective three and six month periods ended June 29, 2024, and $ 51.8 million and $ 84.6 million for the respective three and six month periods ended July 1, 2023.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 1.4 million and $ 11.1 million for the respective three and six month periods ended June 29, 2024, and $ 5.4 million and $ 10.5 million for the respective three and six month periods ended July 1, 2023.

Stock options:

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

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the three month periods ended March 30, 2024, and April 1, 2023, using the Black-Scholes valuation model:

Three Months Ended

March 30, 2024 April 1, 2023

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the three month period ended July 1, 2023, and the six month periods ended June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model;

no stock options were granted during the three month period ended June 29, 2024:

Three Months Ended Six Months Ended

June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Expected term of stock option (in years)

Expected volatility factor 23.63 % 23.99 %

Expected dividend yield 2.76 % 2.60 %

Risk-free interest rate 4.30 % 3.99 %

Below is a summary of stock option activity as of and for the three months ended March 30, 2024:

N/A 3.80 4.90 4.89

Expected volatility factor N/A 24.52 % 23.63 % 23.99 %

Expected dividend yield N/A 2.48 % 2.76 % 2.60 %

Risk-free interest rate N/A 3.63 % 4.30 % 3.99 %

Not applicable

Below is a summary of stock option activity as of and for the six months ended June 29, 2024:

(in thousands)

5 unchanged sentences

Forfeited or expired ( 26 ) 243.37

Outstanding at March 30, 2024 1,980 188.30 5.7 $ 213.7

Exercisable at March 30, 2024 1,510 168.43 4.5 192.9

Outstanding at June 29, 2024 1,917 188.75 5.5 $ 141.0

Exercisable at June 29, 2024 1,464 169.08 4.4 135.1

* Weighted-average

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The weighted-average grant date fair value of stock options granted during the three months ended March 30, 2024, and April 1, 2023, was $ 55.07 and $ 51.09 , respectively.

The intrinsic value of stock options exercised was $ 17.1 million and $ 22.6 million during the respective three month periods ended March 30, 2024, and April 1, 2023.

The fair value of stock options vested was $ 9.5 million and $ 9.1 million during the respective three month periods ended March 30, 2024, and April 1, 2023.

As of March 30, 2024, there was $ 22.1 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 2.2 years.

The weighted-average grant date fair value of stock options granted during the six months ended June 29, 2024, and July 1, 2023, was $ 55.07 and $ 51.09 , respectively.

The intrinsic value of stock options exercised was $ 5.6 million and $ 22.7 million during the respective three and six month periods ended June 29, 2024, and $ 24.5 million and $ 47.1 million during the respective three and six month periods ended July 1, 2023.

The fair value of stock options vested was $ 9.5 million and $ 9.1 million during the respective six month periods ended June 29, 2024, and July 1, 2023.

As of June 29, 2024, there was $ 18.6 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 1.9 years.

Performance share units:

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in recent years, forfeitures have not been significant.

The weighted-average grant date fair value of PSUs granted during the three months ended March 30, 2024, and April 1, 2023, was $ 269.00 and $ 249.26 , respectively.

PSUs related to 137,096 shares and 60,402 shares were paid out during the three months ended March 30, 2024, and April 1, 2023, respectively.

The weighted-average grant date fair value of PSUs granted during the six months ended June 29, 2024, and July 1, 2023, was $ 269.00 and $ 249.26 , respectively.

PSUs related to 137,096 shares and 60,402 shares were paid out during the six months ended June 29, 2024, and July 1, 2023, respectively.

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 during the three months ended March 30, 2024, are as follows:

Changes to the company’s non-vested PSUs during the six months ended June 29, 2024, are as follows:

(in thousands)

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Cancellations and other ( 6 ) 251.12

Non-vested PSUs at March 30, 2024 230 236.55

Non-vested PSUs at June 29, 2024 209 237.92

* Weighted-average

** Reflects the number of PSUs above target levels based on performance metrics.

As of March 30, 2024, there was $ 29.0 million of unrecognized compensation cost related to non-vested PSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 1.5 years.

** Reflects the number of PSUs adjusted based on performance metrics.

As of June 29, 2024, there was $ 23.1 million of unrecognized compensation cost related to non-vested PSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 1.3 years.

Restricted stock units:

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in recent years, forfeitures have not been significant.

The weighted-average grant date fair value of RSUs granted during the three months ended March 30, 2024, and April 1, 2023, was $ 269.00 and $ 249.26 , respectively.

The weighted-average grant date fair value of RSUs granted during the six months ended June 29, 2024, and July 1, 2023, was $ 269.00 and $ 249.26 , respectively.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Changes to the company’s non-vested RSUs during the three months ended March 30, 2024, are as follows:

Changes to the company’s non-vested RSUs during the six months ended June 29, 2024, are as follows:

(in thousands)

3 unchanged sentences

Cancellations and other ( 2 ) 250.50

Non-vested RSUs at March 30, 2024 75 242.64

Non-vested RSUs at June 29, 2024 73 242.27

* Weighted-average

As of March 30, 2024, there was $ 11.5 million of unrecognized compensation cost related to non-vested RSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 1.9 years.

As of June 29, 2024, there was $ 9.5 million of unrecognized compensation cost related to non-vested RSUs that are expected to be recognized as a charge to earnings over a weighted-average period of 1.6 years.

Stock appreciation rights:

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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 three months ended March 30, 2024, and April 1, 2023, using the Black-Scholes valuation model:

Three Months Ended

March 30, 2024 April 1, 2023

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the six months ended June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model:

Six Months Ended

June 29, 2024 July 1, 2023

Expected term of stock-settled SARs (in years)

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Below is a summary of stock-settled SARs as of and for the three months ended March 30, 2024:

Below is a summary of stock-settled SARs as of and for the six months ended June 29, 2024:

Stock-settled

6 unchanged sentences

Forfeited or expired ( 20 ) 186.61

Outstanding at March 30, 2024 356 204.88 7.0 $ 32.5

Exercisable at March 30, 2024 229 178.82 5.8 26.9

Outstanding at June 29, 2024 353 205.08 6.7 $ 20.4

Exercisable at June 29, 2024 228 178.99 5.5 18.8

* Weighted-average

The weighted-average grant date fair value of stock-settled SARs granted during the three months ended March 30, 2024, and April 1, 2023, was $ 52.12 and $ 48.85 , respectively.

The intrinsic value of stock-settled SARs exercised was $ 1.3 million and $ 2.2 million during the respective three month periods ended March 30, 2024, and April 1, 2023.

The fair value of stock-settled SARs vested was $ 2.3 million and $ 1.9 million during the respective three month periods ended March 30, 2024, and April 1, 2023.

As of March 30, 2024, there was $ 5.6 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 March 30, 2024, and April 1, 2023, using the Black-Scholes valuation model:

Three Months Ended

March 30, 2024 April 1, 2023

The weighted-average grant date fair value of stock-settled SARs granted during the six months ended June 29, 2024, and July 1, 2023, was $ 52.12 and $ 48.85 , respectively.

The intrinsic value of stock-settled SARs exercised was $ 0.1 million and $ 1.4 million during the respective three and six month periods ended June 29, 2024, and $ 2.6 million and $ 4.8 million during the respective three and six periods ended July 1, 2023.

The fair value of stock-settled SARs vested was $ 2.3 million and $ 1.9 million during the respective six month periods ended June 29, 2024, and July 1, 2023.

As of June 29, 2024, there was $ 4.9 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 1.9 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the six months ended June 29, 2024, and July 1, 2023, using the Black-Scholes valuation model:

Six Months Ended

June 29, 2024 July 1, 2023

Expected term of cash-settled SARs (in years)

2 unchanged sentences

Risk-free interest rate 4.52 % 4.49 %

The intrinsic value of cash-settled SARs exercised was zero and $ 0.4 million for the respective three month periods ended March 30, 2024, and April 1, 2023.

The fair value of cash-settled SARs vested was $ 0.1 million for both the three month periods ended March 30, 2024, and April 1, 2023.

Changes to the company’s non-vested cash-settled SARs during the three months ended March 30, 2024, are as follows:

The intrinsic value of cash-settled SARs exercised was zero for both the three and six month periods ended June 29, 2024, and zero and $ 0.4 million for the respective three and six month periods ended July 1, 2023.

The fair value of cash-settled SARs vested was $ 0.1 million for both the six month periods ended June 29, 2024, and July 1, 2023.

Changes to the company’s non-vested cash-settled SARs during the six months ended June 29, 2024, are as follows:

(in thousands)

2 unchanged sentences

Vested ( 1 ) 62.37

Non-vested cash-settled SARs at March 30, 2024 2 76.13

Non-vested cash-settled SARs at June 29, 2024 2 50.07

* Weighted-average

As of March 30, 2024, there was $ 0.2 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.

As of June 29, 2024, 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 2.0 years.

SNAP-ON INCORPORATED

1 unchanged sentence

Restricted stock awards – non-employee directors:

The company awarded 5,391 shares and 5,760 shares of restricted stock to non-employee directors for the respective three month periods ended March 30, 2024, and April 1, 2023.

The company awarded 5,391 shares and 5,760 shares of restricted stock to non-employee directors for the respective six month periods ended June 29, 2024, and July 1, 2023.

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.

5 unchanged sentences

The company records compensation expense when Snap-on’s period-end stock price is greater than the plan purchase price.

There were no shares issued under this plan for the respective three month periods ended March 30, 2024, and April 1, 2023.

As of March 30, 2024, 551,598 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 4.8 million.

There were 21,798 shares and 27,225 shares issued under this plan for the respective six month periods ended June 29, 2024, and July 1, 2023.

As of June 29, 2024, 529,800 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 0.4 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.

Compensation expense for plan participants was $ 0.3 million and $ 0.5 million for the three month periods ended March 30, 2024, and April 1, 2023, respectively.

The company recognized a $ 0.2 million compensation benefit and $ 0.1 million of compensation expense for plan participants during the respective three and six month periods ended June 29, 2024, and $ 0.5 million and $ 1.0 million of compensation expense during the respective three and six month periods ended July 1, 2023.

Franchisee stock purchase plan:

2 unchanged sentences

The company records mark-to-market expense when Snap-on’s period-end stock price is greater than the plan purchase price.

There were no shares issued under this plan for the respective three month periods ended March 30, 2024, and April 1, 2023.

As of March 30, 2024, 178,715 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 10.1 million.

There were 42,687 shares and 46,510 shares issued under this plan for the respective six month periods ended June 29, 2024, and July 1, 2023.

As of June 29, 2024, 136,049 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 1.2 million.

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

The company recognized mark-to-market expense of $ 0.7 million and $ 0.9 million for the three month periods ended March 30, 2024, and April 1, 2023, respectively.

The company recognized a mark-to-market benefit of $ 0.6 million and $ 0.1 million of mark-to-market expense during the respective three and six month periods ended June 29, 2024, and $ 0.7 million and $ 1.6 million of mark-to-market expense during the respective three and six month periods ended July 1, 2023.

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

March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Weighted-average common shares outstanding 52,661,542 52,956,701 52,701,553 52,987,935

3 unchanged sentences

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

As of March 30, 2024, there were no awards outstanding that were anti-dilutive;

as of April 1, 2023, there were 302,756 awards outstanding that were anti-dilutive.

As of June 29, 2024, there were no awards outstanding that were anti-dilutive;

as of July 1, 2023, there were 500 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.

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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 months ended March 30, 2024, and April 1, 2023, is as follows:

Three Months Ended

(Amounts in millions) March 30, 2024 April 1, 2023

Snap-on’s product warranty accrual activity for the three and six months ended June 29, 2024, and July 1, 2023, is as follows:

Three Months Ended Six Months Ended

(Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Warranty reserve:

4 unchanged sentences

In the ordinary course of our business, Snap-on is subject to legal disputes that are being litigated and/or settled.

The accompanying Condensed Consolidated Statement of Earnings for the three months ended March 30, 2024, includes an $ 11.3 million benefit in “Operating expenses” for payments received associated with a legal matter.

The accompanying Condensed Consolidated Statements of Earnings for the three and six months ended June 29, 2024, include benefits in “Operating expenses” of $ 11.2 million and $ 22.5 million, respectively, for payments received associated with a legal matter;

the final payments related to this matter were received in the three months ended June 29, 2024.

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 March 30, 2024, and December 30, 2023, is as follows:

(Amounts in millions) March 30,

Supplemental balance sheet information related to leases as of June 29, 2024, and December 30, 2023, is as follows:

(Amounts in millions) June 29,

2024 December 30, 2023

19 unchanged sentences

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

Three Months Ended

(Amounts in millions) March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

(Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Interest income $ 14.2 $ 9.9 $ 27.1 $ 17.9

4 unchanged sentences

Accumulated Other Comprehensive Income (Loss)

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended March 30, 2024:

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended June 29, 2024:

(Amounts in millions) Foreign

2 unchanged sentences

Postretirement

Balance as of December 30, 2023 $ ( 211.8 ) $ 5.7 $ ( 243.4 ) $ ( 449.5 )

Balance as of March 30, 2024 $ ( 256.6 ) $ 5.3 $ ( 242.0 ) $ ( 493.3 )

Other comprehensive loss before reclassifications ( 12.8 ) — — ( 12.8 )

1 unchanged sentence

Net other comprehensive income (loss) ( 12.8 ) ( 0.4 ) 1.7 ( 11.5 )

Balance as of March 30, 2024 $ ( 256.6 ) $ 5.3 $ ( 242.0 ) $ ( 493.3 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended April 1, 2023:

Balance as of June 29, 2024 $ ( 269.4 ) $ 4.9 $ ( 240.3 ) $ ( 504.8 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended June 29, 2024:

(Amounts in millions) Foreign

3 unchanged sentences

Balance as of December 30, 2023 $ ( 211.8 ) $ 5.7 $ ( 243.4 ) $ ( 449.5 )

Other comprehensive income before reclassifications 18.1 — — 18.1

Other comprehensive loss before reclassifications ( 57.6 ) — — ( 57.6 )

Amounts reclassified from Accumulated OCI — ( 0.8 ) 3.1 2.3

Net other comprehensive income (loss) ( 57.6 ) ( 0.8 ) 3.1 ( 55.3 )

Balance as of April 1, 2023 $ ( 254.4 ) $ 6.9 $ ( 263.1 ) $ ( 510.6 )

Balance as of June 29, 2024 $ ( 269.4 ) $ 4.9 $ ( 240.3 ) $ ( 504.8 )

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The reclassifications out of Accumulated OCI for the three month periods ended March 30, 2024, and April 1, 2023, are as follows:

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended July 1, 2023:

(Amounts in millions) Foreign

Translation Cash Flow

Hedges Defined

Postretirement

Balance as of April 1, 2023 $ ( 254.4 ) $ 6.9 $ ( 263.1 ) $ ( 510.6 )

Other comprehensive income before reclassifications 0.2 — — 0.2

Amounts reclassified from Accumulated OCI — ( 0.4 ) 0.1 ( 0.3 )

Net other comprehensive income (loss) 0.2 ( 0.4 ) 0.1 ( 0.1 )

Balance as of July 1, 2023 $ ( 254.2 ) $ 6.5 $ ( 263.0 ) $ ( 510.7 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the six months ended July 1, 2023:

(Amounts in millions) Foreign

Translation Cash Flow

Hedges Defined

Postretirement

Balance as of December 31, 2022 $ ( 272.5 ) $ 7.3 $ ( 263.1 ) $ ( 528.3 )

Other comprehensive income before reclassifications 18.3 — — 18.3

Amounts reclassified from Accumulated OCI — ( 0.8 ) 0.1 ( 0.7 )

Net other comprehensive income (loss) 18.3 ( 0.8 ) 0.1 17.6

Balance as of July 1, 2023 $ ( 254.2 ) $ 6.5 $ ( 263.0 ) $ ( 510.7 )

The reclassifications out of Accumulated OCI for the three and six month periods ended June 29, 2024, and July 1, 2023, are as follows:

Amount Reclassified from Accumulated OCI

Three Months Ended

(Amounts in millions) March 30, 2024 April 1, 2023 Statement of Earnings

Three Months Ended Six Months Ended

(Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Statement of Earnings

Gains on cash flow hedges:

10 unchanged sentences

see Note 10 and Note 11 for additional 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.

14 unchanged sentences

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

(Amounts in millions) March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

(Amounts in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

Commercial & Industrial Group $ 372.0 $ 364.2 $ 731.9 $ 728.0

17 unchanged sentences

Earnings before income taxes $ 356.9 $ 348.1 $ 701.7 $ 677.0

(Amounts in millions) March 30,

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Amounts in millions) June 29,

2024 December 30, 2023

11 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