What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2025-02-13 compared with 2024-02-16 · 266 added, 183 removed, 1949 unchanged (19% of the section changed)

16 unchanged sentences

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Snap-on Incorporated:

To the Shareholders and the Board of Directors of Snap-on Incorporated

Opinion on Internal Control over Financial Reporting

24 unchanged sentences

Executive Officer and Director Rule 10b5-1 Trading Arrangements

Historically, the company’s executive officers and directors have entered into Rule 10b5-1 trading arrangements periodically.

Now, in accordance with the new disclosure requirement set forth in Item 408(a) of Regulation S-K, the following table discloses any officer (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) or director who adopted a contract, instruction or written plan for the sale of securities of the company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) during the quarterly period ended December 30, 2023:

In accordance with the disclosure requirement set forth in Item 408(a) of Regulation S-K, the following table discloses any officer (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) or director who adopted a contract, instruction or written plan for the sale of securities of the company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) during the quarterly period ended December 28, 2024:

Name and Title Type of Plan Adoption Date* Duration or End Date Aggregate Number of Securities to be Sold Description of Trading Arrangement

Chairman, President and Chief Executive Officer

Rule 10b5-1 trading arrangement October 26, 2023 December 11, 2024 130,000 Exercises of vested stock options expiring in February 2025, and sales of shares to cover exercise price and estimated tax withholding

Rule 10b5-1 trading arrangement October 24, 2024 December 4, 2025 135,000 Exercises of vested stock options expiring in February 2026, and sales of shares to cover exercise price and estimated tax withholding, with the retention of the remaining shares

Senior Vice President - Finance and Chief Financial Officer

Rule 10b5-1 trading arrangement October 24, 2023 February 12, 2025 34,000 Exercises of vested stock options expiring in February 2025, and sales of shares to cover exercise price and estimated tax withholding

Rule 10b5-1 trading arrangement October 22, 2024 February 10, 2026 35,000 Exercises of vested stock options expiring in February 2026, and sales of shares to cover exercise price and estimated tax withholding, with the retention of the remaining shares

* Trading under the Rule 10b5-1 trading arrangement will not commence until after the applicable waiting period and the conclusion of each officer’s prior Rule 10b5-1 trading arrangement.

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The Section 16(a) filing compliance disclosure pursuant to Item 405 of Regulation S-K is contained in Snap-on’s 2025 Proxy Statement in the section entitled “Other Information – Delinquent Section 16(a) Reports,” and is incorporated herein by reference.

Information regarding the company’s insider trading policies and procedures is contained in “Corporate Governance Practices and Board Information – Insider Trading Policy” in the 2025 Proxy Statement, which is incorporated herein by reference.

Information about our Executive Officers

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Arregui (59) – Senior Vice President and President – Commercial Group since 2019.

President of SNA Europe from 2015 to 2019.

Banerjee (73) – Senior Vice President – Human Resources and Chief Development Officer since 2015.

Bauerschmidt (58) – Senior Vice President – Human Resources since April 2024.

Vice President – Human Resources from 2018 to 2024.

Iain Boyd (62) – Vice President – Operations Development since 2015.

Chambers (60) – Senior Vice President and President – Snap-on Tools Group since 2019.

President of Commercial Group from 2015 to 2019.

Lemerand (62) – Vice President and Chief Information Officer since 2017.

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Ward (72) – Senior Vice President and President – Repair Systems & Information Group since 2010.

Snap-on’s executive officers include a woman, a veteran of the U.S.

Army, and two executives who are ethnically diverse.

Snap-on’s executive officers include two women, a veteran of the U.S.

Army, and an executive who is ethnically diverse.

Additionally, there is no family relationship among the executive officers and there has been no involvement in legal proceedings during the past 10 years that would be material to the evaluation of the ability or integrity of any of the executive officers.

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references to “fiscal 2023” or “2023” refer to the fiscal year ended December 30, 2023;

and references to “fiscal 2021” or “2021” refer to the fiscal year ended January 1, 2022.

References to 2023, 2022 and 2021 year end refer to December 30, 2023, December 31, 2022, and January 1, 2022, respectively.

and references to “fiscal 2022” or “2022” refer to the fiscal year ended December 31, 2022.

References to 2024, 2023 and 2022 year end refer to December 28, 2024, December 30, 2023, and December 31, 2022, respectively.

The following consolidated financial statements of Snap-on and the Report of Independent Registered Public Accounting Firm thereon, are filed as part of this report:

31 unchanged sentences

(d)(2) Form of Indemnification Agreement between Snap-on Incorporated and directors (incorporated by reference to Exhibit 10.1 to Snap-on’s Annual Report on Form 10-K for the fiscal year ended January 1, 2011 (Commission File No.

(e)(1) Amended and Restated Snap-on Incorporated Directors’ 1993 Fee Plan (as amended through August 5, 2010) (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended October 2, 2010 (Commission File No.

(e)(2) Amendment to Amended and Restated Snap-on Incorporated Directors’ 1993 Fee Plan (incorporated by reference to Exhibit 10(e)(2) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013 (Commission File No.

(f)(1) Snap-on Incorporated Deferred Compensation Plan (as amended and restated as of September 1, 2011) (incorporated by reference to Exhibit 10(g) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (Commission File No.

(f)(2) Amendment to Snap-on Incorporated Deferred Compensation Plan (incorporated by reference to Exhibit 10(f)(2) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013 (Commission File No.

(g) Snap-on Incorporated Supplemental Retirement Plan for Officers (as amended through June 11, 2010) (incorporated by reference to Exhibit 10.2 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended July 3, 2010 (Commission File No.

(h) Form of Restricted Stock Unit Agreement for Directors under the 2001 Incentive Stock and Awards Plan (and accompanying Restricted Stock Unit Offer Letter) (incorporated by reference to Exhibit 10.2 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended October 3, 2009 (Commission File No.

(e) M anagement A greement, dated as on March 15, 2005, between SNA Europe and Jesus Arregui**

(f)(1) Amended and Restated Snap-on Incorporated Directors’ 1993 Fee Plan (as amended through August 5, 2010) (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended October 2, 2010 (Commission File No.

(f)(2) Amendment to Amended and Restated Snap-on Incorporated Directors’ 1993 Fee Plan (incorporated by reference to Exhibit 10(e)(2) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013 (Commission File No.

(g)(1) Snap-on Incorporated Deferred Compensation Plan (as amended and restated as of September 1, 2011) (incorporated by reference to Exhibit 10(g) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (Commission File No.

(g)(2) Amendment to Snap-on Incorporated Deferred Compensation Plan (incorporated by reference to Exhibit 10(f)(2) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013 (Commission File No.

(h) Snap-on Incorporated Supplemental Retirement Plan for Officers (as amended through June 11, 2010) (incorporated by reference to Exhibit 10.2 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended July 3, 2010 (Commission File No.

(i) Form of Restricted Stock Unit Agreement for Directors under the 2001 Incentive Stock and Awards Plan (and accompanying Restricted Stock Unit Offer Letter) (incorporated by reference to Exhibit 10.2 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended October 3, 2009 (Commission File No.

1-7724))** (superseded except as to outstanding awards)

(i) Form of Non-Qualified Stock Option Agreement under the 2011 Incentive Stock and Awards Plan (and accompanying Non-Qualified Stock Option Grant Offer Letter) (incorporated by reference to Exhibit 10.1 to Snap‑on’s Quarterly Report on Form 10-Q for the quarterly period ended October 1, 2011 (Commission File No.

(j) Form of Performance Share Unit Award Agreement under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No.

(k) Form of Performance-Based Restricted Unit Award Agreement for Executive Officers under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No.

(l) Form of Restricted Unit Award Agreement for Directors under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No.

(j) Form of Non-Qualified Stock Option Agreement under the 2011 Incentive Stock and Awards Plan (and accompanying Non-Qualified Stock Option Grant Offer Letter) (incorporated by reference to Exhibit 10.1 to Snap‑on’s Quarterly Report on Form 10-Q for the quarterly period ended October 1, 2011 (Commission File No.

(k) Form of Performance Share Unit Award Agreement under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No.

(l) Form of Performance-Based Restricted Unit Award Agreement for Executive Officers under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No.

2024 ANNUAL REPORT 59

(m) Form of Restricted Stock Award Agreement for Directors under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 30, 2013 (Commission File No.

(n) Form of Restricted Stock Unit Award Agreement for Executive Officers and Key Employees under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10(o) to Snap-on's Annual Report on Form 10-K for the fiscal year ended January 2, 2021 Commission File No.

(o) F our th Amended and Restated Five Year Credit A greement, dated as of September 12, 2023 a mong Snap-on Incorporated and each lenders and agents listed on the signature pages thereof, and JPMorgan Chase Bank, N.A., Citibank N.A.

Bank National Association as joint lead arr angers and joint bookrun ners (incorporated by reference to Exhibit 10.1 to S nap- on ’ s Current Report on Form 8-K dated September 12, 2023 (Commission File No.

(m) Form of Restricted Unit Award Agreement for Directors under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No.

(n) Form of Restricted Stock Award Agreement for Directors under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 30, 2013 (Commission File No.

(o) Form of Restricted Stock Unit Award Agreement for Executive Officers and Key Employees under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10(o) to Snap-on's Annual Report on Form 10-K for the fiscal year ended January 2, 2021 Commission File No.

(p) Fourth Amended and Restated Five Year Credit Agreement, dated as of September 12, 2023 among Snap-on Incorporated and each lenders and agents listed on the signature pages thereof, and JPMorgan Chase Bank, N.A., Citibank N.A.

Bank National Association as joint lead arrangers and joint bookrunners (incorporated by reference to Exhibit 10.1 to Snap-on’s Current Report on Form 8-K dated September 12, 2023 (Commission File No.

(14) Snap-on Incorporated Section 406 of the Sarbanes-Oxley Act Code of Ethics (incorporated by reference to Exhibit 10(aa) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended January 3, 2004 (Commission File No.

(19) S nap-on Incorporated Insider Tradi ng Policy

(19) Snap-on Incorporated Insider Trading Policy (incorporated by reference to Exhibit 19 to Snap-on's Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (Commission File No.

(21) Subsidiaries of the Corporation

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Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(97) Snap-on Incorporated Clawback Policy for Erroneously Awarded Compensation

(97) Snap-on Incorporated Clawback Policy for Erroneously Awarded Compensation (incorporated by reference to Exhibit 97 to Snap-on's Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (Commission File No.

(101.INS) Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL (Extensible Business Reporting Language) tags are embedded within the Inline XBRL document

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Snap-on Incorporated:

To the Shareholders and the Board of Directors of Snap-on Incorporated

Opinion on the Financial Statements

17 unchanged sentences

2024 ANNUAL REPORT 61

Finance Receivables, Net - Allowance - Refer to Notes 1 and 4 to the financial statements

Finance Receivables – Net - Allowance for Credit Losses - Refer to Notes 1 and 4 to the financial statements

Critical Audit Matter Description

1 unchanged sentence

The receivables are generally secured by the underlying tools, diagnostics and/or equipment products financed.

At December 30, 2023, these finance receivables totaled $1,946.1 million with an allowance of $67.8 million recorded against the receivables.

Determining the proper level of allowance requires management to exercise judgment about the timing, frequency and severity of credit losses expected to occur over the life of the contracts.

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• Where appropriate, we assessed the reasonableness of, and evaluated support for, qualitative adjustments based on market conditions and/or portfolio performance metrics.

• We tested the accuracy and evaluated the relevance of the historical loss data used in determining the qualitative adjustments.

• We tested the completeness and accuracy and evaluated the relevance of the key data used as inputs in management’s allowance for credit losses calculation, including finance receivables balances, recoveries, charge-offs, portfolio characteristics, and other data.

• We tested the mathematical accuracy of the allowance for credit losses and developed an expectation of the allowance for credit losses and compared it to the recorded balance.

• We evaluated management’s ability to accurately forecast credit losses by performing a retrospective review, which involved comparing actual credit losses to historical estimates.

• We tested the mathematical accuracy of the allowance for credit losses and developed an independent expectation of the allowance for credit losses and compared it to the recorded balance.

/s/ Deloitte & Touche LLP

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Other income (expense) – net 77.0 67.5 42.5

Earnings before income taxes and equity earnings 1,328.0 1,202.6 1,086.9

Earnings before income taxes 1,373.1 1,328.0 1,202.6

Income tax expense ( 304.2 ) ( 293.4 ) ( 268.7 )

Earnings before equity earnings 1,034.6 933.9 839.9

Equity earnings, net of tax — — 1.5

Net earnings 1,068.9 1,034.6 933.9

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Foreign currency translation ( 108.8 ) 60.7 ( 127.4 )

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

Reclassification of cash flow hedges to net earnings ( 1.7 ) ( 1.6 ) ( 1.6 )

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Amortization of unrecognized loss and net prior service costs included in net periodic benefit cost

0.5 18.1 36.4

Income tax benefit ( 2.0 ) ( 0.1 ) ( 4.5 )

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— — 911.7 — — 22.2 933.9

Other comprehensive income — — — 21.9 — — 21.9

Other comprehensive loss — — — ( 184.4 ) — — ( 184.4 )

Cash dividends – $ 5.88 per share

4 unchanged sentences

Other — — ( 2.3 ) — — ( 21.9 ) ( 24.2 )

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

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 2023

— — 1,011.1 — — 23.5 1,034.6

Other comprehensive loss — — — ( 184.4 ) — — ( 184.4 )

Other comprehensive income — — — 78.8 — — 78.8

Cash dividends – $ 6.72 per share

7 unchanged sentences

— — 1,043.9 — — 25.0 1,068.9

Other comprehensive income — — — 78.8 — — 78.8

Other comprehensive loss — — — ( 125.5 ) — — ( 125.5 )

Cash dividends – $ 7.72 per share

18 unchanged sentences

Stock-based compensation expense 28.6 44.7 34.0

Deferred income tax provision (benefit) ( 18.7 ) ( 10.3 ) 8.4

(Gain) loss on sales of assets ( 1.0 ) ( 3.1 ) 1.7

Deferred income tax benefit ( 8.2 ) ( 18.7 ) ( 10.3 )

Gain on sales of assets ( 0.6 ) ( 1.0 ) ( 3.1 )

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

4 unchanged sentences

Accounts payable 29.0 ( 48.1 ) 17.7

Accruals and other liabilities ( 12.2 ) ( 41.5 ) 14.3

Accrued and other liabilities ( 40.0 ) ( 12.2 ) ( 41.5 )

Net cash provided by operating activities 1,217.5 1,154.2 675.2

8 unchanged sentences

Financing activities:

Repayments of long-term debt — — ( 250.0 )

Net increase (decrease) in other short-term borrowings ( 1.3 ) ( 1.7 ) 1.6

1 unchanged sentence

Purchases of treasury stock ( 290.0 ) ( 294.7 ) ( 198.1 )

Proceeds from stock purchase plan and stock option exercises 113.6 55.0 162.4

Proceeds from stock purchase plans and stock option exercises 92.3 113.6 55.0

Other ( 44.4 ) ( 34.5 ) ( 30.4 )

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Snap-on’s fiscal year ends on the Saturday that is on or nearest to December 31.

The 2023 fiscal year ended on December 30, 2023 (“2023”), the 2022 fiscal year ended on December 31, 2022 (“2022”), and the 2021 fiscal year ended on January 1, 2022 (“2021”).

The 2024 fiscal year ended on December 28, 2024 (“2024”), the 2023 fiscal year ended on December 30, 2023 (“2023”), and the 2022 fiscal year ended on December 31, 2022 (“2022”).

The 2024, 2023 and 2022 fiscal years each contained 52 weeks of operating results.

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these charges were recorded in “Operating expenses” on the accompanying Consolidated Statements of Earnings.

Other freight-related costs recorded in “Operating expenses” on the accompanying Consolidated Statements of Earnings in 2023 and 2022 totaled $ 11.5 million and $ 11.0 million, respectively.

Advertising and promotion:

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

As of December 30, 2023, December 31, 2022, and January 1, 2022 there were no awards outstanding that were anti-dilutive.

As of December 28, 2024, December 30, 2023, and December 31, 2022 there were no 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 maintains allowances for credit losses, which represent an estimate of expected credit losses over the remaining contractual life of its receivables considering current conditions and supportable forecasts when appropriate.

The estimate is a result of the company’s ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in each of its receivable portfolios (trade, finance and contract receivables).

The estimate is a result of the company’s ongoing assessments and evaluations of collectability, historical loss experience, current conditions, and future expectations in estimating credit losses in each of its receivable portfolios (trade, finance and contract receivables).

For trade receivables, Snap-on uses historical loss experience rates by portfolio and applies them to a related aging analysis while also considering customer and/or economic risk where appropriate.

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Property and equipment:

Property and equipment is stated at cost less accumulated depreciation and amortization.

Depreciation and amortization are provided on a straight-line basis over estimated useful lives.

Property and equipment is stated at cost less accumulated depreciation.

Depreciation is provided on a straight-line basis over estimated useful lives.

Major repairs that extend the useful life of an asset are capitalized, while routine maintenance and repairs are expensed as incurred.

Capitalized software included in property and equipment reflects costs related to internally developed or purchased software for internal use and is amortized on a straight-line basis over their estimated useful lives.

Capitalized internal-use software is depreciated on a straight-line basis over estimated useful lives.

Long-lived assets, including operating lease right-of-use assets, are evaluated for impairment when events or circumstances indicate that the carrying amount of the long-lived asset may not be recoverable.

8 unchanged sentences

New accounting standards:

On January 1, 2023, the beginning of Snap-on’s 2023 fiscal year, the company adopted 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 and eliminates 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.

The adoption of this ASU did not have a significant impact on Snap-on’s Consolidated Financial Statements.

In November 2023, the FASB issued ASU No.

Snap-on adopted 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;

Improvements to Reportable Segment Disclosures , which requires the disclosure of additional segment information at the end of fiscal year 2024.

The adoption of this ASU resulted in new disclosures, including comparative information for all years presented, but otherwise had no impact on the company’s Consolidated Financial Statements.

See Note 19 for additional information on segments.

The following new accounting pronouncements, and related impacts on adoption, are being evaluated by the company:

In November 2024, the FASB issued ASU No.

2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses , which requires disaggregated expense information in the notes to the financial statements related to purchases of inventory, employee compensation, depreciation, intangible asset amortization and selling expenses for each statement of earnings line item that contains those expenses.

2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027.

The guidance is to be applied on a prospective basis with the option to apply the standard retrospectively;

this ASU allows for early adoption.

18 unchanged sentences

Total revenues $ 5,108.4 $ 5,108.3

Snap-on evaluates the performance of its operating segments based on segment revenues and segment operating earnings.

The Snap-on Tools Group segment revenues include external net sales, while the Commercial & Industrial Group and the Repair Systems & Information Group segment revenues include both external and intersegment net sales.

Snap-on accounts for both intersegment net sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments.

Snap-on evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the Repair Systems & Information Group operating segments based on segment net sales and segment operating earnings while the Financial Services operating segment is evaluated based on segment revenue and segment operating earnings.

The Snap-on Tools Group segment net sales reflect external net sales, while the Commercial & Industrial Group and the Repair Systems & Information Group segment net sales include both external and intersegment net sales.

Snap-on accounts for intersegment net sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments.

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

67 unchanged sentences

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

Snap-on had approximately $ 185.0 million of long-term contracts that have fixed consideration that extends beyond one year as of December 30, 2023.

Snap-on had $ 183.5 million of long-term contracts that have fixed consideration that extends beyond one year as of December 28, 2024.

Snap-on expects to recognize approximately 75 % of these contracts as revenue by the end of fiscal 2026, an additional 20 % by the end of fiscal 2028 and the balance thereafter.

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

The balance of total contract liabilities was $ 63.3 million at both December 30, 2023, and December 31, 2022.

The balance of total contract liabilities was $ 63.8 million at December 28, 2024, and $ 63.3 million at December 30, 2023.

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 Consolidated Balance Sheets.

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The $ 1.7 million excess of the purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Consolidated Balance Sheets.

The goodwill will be deductible for tax purposes.

On November 1, 2023, Snap-on acquired Mountz, Inc.

1 unchanged sentence

Mountz, based in San Jose, California, is a leading developer, manufacturer and marketer of high-precision torque tools, including measurement, calibration and documentation products.

The company anticipates completing the purchase accounting for the acquired net assets of Mountz, including intangible assets, in the first half of 2024.

The presentation of Mountz in the accompanying Consolidated Financial Statements has been prepared on a preliminary basis and changes to allocations may occur as fair value estimates of the acquired net assets are determined.

On a preliminary basis, the $ 33.0 million excess of the purchase price over the net assets acquired was recorded in “Goodwill” on the accompanying Consolidated Balance Sheets.

The company does not expect that the goodwill will be deductible for tax purposes.

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 fiscal 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 was recorded in “Goodwill” on the accompanying 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 $ 20.2 million (or $ 15.7 million, net of cash acquired), which reflects a $ 0.5 million purchase accounting adjustment finalized in fiscal 2022, and cash of $ 1.6 million.

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

In fiscal 2022, the company completed the purchase accounting valuations for the acquired net assets of Pradines.

The $ 10.2 million excess of the purchase price over the fair value of net assets acquired was recorded in “Goodwill” in the accompanying Consolidated Balance Sheets.

Snap-on previously accounted for Deville S.A.

as an equity method investment.

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

(“Dealer-FX”) for a cash purchase price of $ 200.1 million (or $ 200.0 million, net of cash acquired).

Dealer-FX, based in Markham, Ontario, is a leading developer, marketer and provider of service-operations software solutions for automotive OEM customers and their dealers.

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 fiscal 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 company completed the purchase accounting valuations for the acquired net assets of Mountz in the first quarter of 2024.

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 Consolidated Balance Sheets.

SNAP-ON INCORPORATED

For segment reporting purposes, the results of operations and assets of SAVTEQ and Dealer-FX have been included in the Repair Systems & Information Group since the respective acquisition dates, and the results of operations and assets of Mountz, 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 any of these acquisitions as the net effects, individually and collectively, were neither significant nor material to Snap-on’s results of operations or financial position.

For segment reporting purposes, the results of operations and assets of SAVTEQ have been included in the Repair Systems & Information Group and those 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.

See Note 7 for additional information on goodwill and other intangible assets.

6 unchanged sentences

Total trade and other accounts receivable – net $ 815.6 $ 791.3

SNAP-ON INCORPORATED

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for 2024 and 2023:

28 unchanged sentences

Finance lease receivables ( 0.3 ) ( 0.1 )

Total finance allowance for credit losses ( 21.2 ) ( 19.6 )

Total finance allowances for credit losses ( 22.8 ) ( 21.2 )

Contract installment receivables ( 0.9 ) ( 0.9 )

Contract lease receivables ( 0.8 ) ( 0.9 )

Total contract allowance for credit losses ( 1.8 ) ( 1.7 )

Total contract allowances for credit losses ( 1.7 ) ( 1.8 )

Total allowances for credit losses ( 24.5 ) ( 23.0 )

16 unchanged sentences

Finance lease receivables ( 0.4 ) ( 0.2 )

Total finance allowance for credit losses ( 46.6 ) ( 41.3 )

Total finance allowances for credit losses ( 49.6 ) ( 46.6 )

Contract installment receivables ( 3.3 ) ( 3.1 )

Contract lease receivables ( 1.8 ) ( 1.8 )

Total contract allowance for credit losses ( 4.9 ) ( 4.9 )

Total contract allowances for credit losses ( 5.1 ) ( 4.9 )

Total allowances for credit losses ( 54.7 ) ( 51.5 )

59 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 WARM methodology.

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

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

67 unchanged sentences

Total inventories – net $ 943.4 $ 1,005.9

Inventories accounted for using the FIFO method approximated 59 % and 61 % of total inventories as of 2023 and 2022 year end, respectively.

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 57 % and 59 % of total inventories as of 2024 and 2023 year end, respectively.

The company accounts for its non-U.S.

1 unchanged sentence

As of 2024 year end, approximately 35 % of the company’s U.S.

inventory was accounted for using the FIFO method and 64 % was accounted for using the LIFO method.

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 2024, 2023 or 2022.

6 unchanged sentences

Property and equipment – gross 1,600.0 1,570.4

Accumulated depreciation and amortization ( 1,031.1 ) ( 1,024.0 )

Accumulated depreciation ( 1,057.4 ) ( 1,031.1 )

Property and equipment – net $ 542.6 $ 539.3

19 unchanged sentences

Balance as of 2024 year end $ 315.6 $ 12.4 $ 728.8 $ 1,056.8

Goodwill of $ 1,056.8 million as of 2024 year end included $ 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.

Goodwill of $ 1,097.4 million as of 2023 year end included $ 33.0 million, on a preliminary basis, from the acquisition of Mountz and $ 1.7 million from the acquisition of SAVTEQ.

The goodwill from Mountz and SAVTEQ is included in the Commercial & Industrial Group and Repair Systems & Information Group, respectively.

The purchase accounting valuations for the acquired net assets of AutoCrib Germany, Dealer-FX and Pradines were completed in 2022.

The purchase accounting valuations for the acquired net assets of Dealer-FX resulted in a reduction of goodwill of $ 32.6 million from 2021 year end.

The purchase accounting valuations for the acquired net assets of Pradines resulted in a reduction of goodwill of $ 0.5 million from 2021 year end.

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

See Note 3 for additional information on acquisitions.

14 unchanged sentences

Total other intangible assets $ 488.2 $ ( 220.6 ) $ 267.6 $ 642.6 $ ( 373.7 ) $ 268.9

The gross carrying value of patents as of year end 2023 includes $ 1.1 million related to the SAVTEQ 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 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.

The gross carrying value of customer relationships and non-amortized trademarks as of year end 2024 includes $ 8.7 million and $ 5.4 million, respectively, related to the Mountz acquisition.

In 2024, Snap-on retired $ 136.9 million of customer relationships, $ 23.2 million of internally developed software and $ 9.5 million of developed technology that were fully amortized and had reached the end of their useful lives.

Provisions 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 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 2024 year end, the company had no accumulated impairment losses.

8 unchanged sentences

Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $ 21.7 million in 2025, $ 16.8 million in 2026, $ 13.9 million in 2027, $ 11.5 million in 2028, and $ 8.2 million in 2029.

The source of earnings before income taxes and equity earnings consisted of the following:

The source of earnings before income taxes consisted of the following:

(Amounts in millions) 2024 2023 2022

29 unchanged sentences

Snap-on’s effective income tax rate on earnings attributable to Snap-on Incorporated was 22.6 % in 2024, 22.5 % in 2023, and 22.8 % in 2022.

Temporary differences that give rise to the net deferred income tax liability as of 2023, 2022 and 2021 year end are as follows:

Temporary differences that give rise to the net deferred income tax asset (liability) as of 2024, 2023 and 2022 year end are as follows:

(Amounts in millions) 2024 2023 2022

11 unchanged sentences

Other ( 1.1 ) 1.7 1.3

Net deferred income tax liability $ ( 3.2 ) $ ( 12.1 ) $ ( 73.2 )

Net deferred income tax asset (liability) $ 4.5 $ ( 3.2 ) $ ( 12.1 )

As of 2024 year end, Snap-on had tax net operating loss carryforwards totaling $ 186.2 million as follows:

61 unchanged sentences

At 2024 year end, the weighted-average rate on outstanding notes payable of 9.5 % compared with 11.1 % in 2023.

On September 12, 2023, Snap-on entered into a $ 900 million multicurrency revolving credit facility that terminates on September 12, 2028 (the “Credit Facility”), which amended and restated in its entirety Snap-on’s previous $ 800 million multicurrency revolving credit facility that was set to terminate on September 16, 2024.

Snap-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 either Credit Facility during the years ended and as of December 30, 2023 or December 31, 2022.

No amounts were borrowed or outstanding under the Credit Facility during the years ended and as of December 28, 2024 or December 30, 2023.

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 December 30, 2023, the company’s actual ratios of 0.05 and 0.18 respectively, were both within the permitted ranges set forth in this financial covenant.

As of December 28, 2024, the company’s consolidated cash balance, net of certain adjustments, exceeded consolidated debt resulting in actual ratios of ( 0.01 ) and ( 0.05 ), respectively.

Both ratios are 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.

5 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

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

4 unchanged sentences

Snap-on does not use derivative instruments for speculative or trading purposes.

SNAP-ON INCORPORATED

Snap-on is exposed to global market risks, including the effects of changes in foreign currency exchange rates, interest rates, and the company’s stock price.

11 unchanged sentences

See Note 17 for additional information on Other income (expense) – net.

As of 2024 year end, Snap-on had $ 197.4 million of net foreign currency forward buy contracts outstanding comprised of buy contracts including $ 108.5 million in British pounds, $ 102.5 million in Swedish kronor, $ 53.9 million in Hong Kong dollars, $ 32.9 million in euros, $ 27.9 million in Chinese renminbi, $ 26.7 million in Australian dollars, $ 24.2 million in Singapore dollars, $ 7.0 million in Norwegian kroner, and $ 19.4 million in other currencies, and sell contracts including $ 193.4 million in Canadian dollars, $ 9.7 million in Indian rupees, and $ 2.5 million in other currencies.

As of 2023 year end, Snap-on had $ 133.3 million of net foreign currency forward buy contracts outstanding comprised of buy contracts including $ 101.2 million in British pounds, $ 67.2 million in Swedish kronor, $ 44.6 million in Hong Kong dollars, $ 27.2 million in Chinese renminbi, $ 24.9 million in Australian dollars, $ 17.0 million in Singapore dollars, $ 6.4 million in Norwegian kroner, $ 6.1 million in Danish kroner, and $ 5.1 million in other currencies, and sell contracts including $ 116.9 million in Canadian dollars, $ 17.6 million in euros, $ 15.5 million in Hungarian forints, $ 10.1 million in Indian rupees, and $ 6.3 million in other currencies.

As of 2022 year end, Snap-on had $ 92.7 million of net foreign currency forward sell contracts outstanding comprised of sell contracts including $ 250.0 million in Canadian dollars, $ 39.2 million in euros, $ 8.5 million in Hungarian forints, $ 5.4 million in Indian rupees, and $ 3.9 million in other currencies, and buy contracts comprised of $ 72.0 million in British pounds, $ 41.3 million in Swedish kronor, $ 36.5 million in Hong Kong dollars, $ 26.8 million in Chinese renminbi, $ 16.0 million in Singapore dollars, $ 6.7 million in Australian dollars, $ 5.9 million in Norwegian kroner, $ 4.7 million in Danish kroner, and $ 4.4 million in other currencies.

Interest rate risk management:

13 unchanged sentences

See Note 17 for additional information on Other income (expense) – net.

2024 ANNUAL REPORT 89

Notes to Consolidated Financial Statements (continued)

Stock-based deferred compensation risk management:

3 unchanged sentences

As of 2024 and 2023 year end, Snap-on had equity forwards in place intended to manage market risk with respect to 68,100 shares and 68,900 shares, respectively, of Snap‑on common stock associated with its deferred compensation plans.

2023 ANNUAL REPORT 89

Notes to Consolidated Financial Statements (continued)

Counterparty risk:

6 unchanged sentences

Fair value measurements primarily based on observable market information are given a “Level 2” priority.

Snap-on has derivative assets and liabilities related to treasury locks, foreign currency forwards and equity forwards that are measured at Level 2 fair value on a recurring basis.

Snap-on has derivative assets and liabilities related to foreign currency forwards and equity forwards that are measured at Level 2 fair value on a recurring basis.

The fair values of derivative instruments included within the accompanying Consolidated Balance Sheets as of 2024 and 2023 year end are as follows:

15 unchanged sentences

SNAP-ON INCORPORATED

The effect of derivative instruments designated as fair value and cash flow hedges as included in the Consolidated Statements of Earnings is as follows:

Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships

2023 2022 2021

(Amounts in millions) Interest expense Other income (expense) – net

Interest expense Other income (expense) – net

Total amounts of income and expense presented in the Consolidated Statements of Earnings:

$ ( 49.9 ) $ 67.5 $ ( 47.1 ) $ 42.5 $ ( 53.1 ) $ 16.5

Gain (loss) on fair value hedging relationships:

Interest rate swaps

Long-term debt

The effect of cash flow hedges included in the Consolidated Statements of Earnings is as follows:

Gain (Loss) Recognized in Income on

Cash Flow Hedging Relationships

2024 2023 2022

Derivatives designated as hedging instruments

(Amounts in millions)

The amount of interest expense presented in the Consolidated Statements of Earnings:

$ ( 49.6 ) $ ( 49.9 ) $ ( 47.1 )

62 unchanged sentences

Fair value of plan assets at beginning of year 1,333.9 1,241.7

Actual gain (loss) on plan assets 155.3 ( 384.1 )

Return on plan assets 58.8 155.3

Employer contributions 8.3 8.1

3 unchanged sentences

Fair value of plan assets at end of year 1,308.1 1,333.9

Funded (unfunded) status at end of year $ 42.0 $ ( 12.9 )

The increase in the defined benefit pension plans benefit obligations in 2023 was primarily due to a decrease in the discount rate in 2023 as compared to 2022.

Funded status at end of year $ 37.9 $ 42.0

The decrease in the defined benefit pension plans benefit obligations in 2024 was primarily due to an increase in the discount rate in 2024 as compared to 2023.

Amounts recognized in the Consolidated Balance Sheets as of 2024 and 2023 year end are as follows:

3 unchanged sentences

Pension liabilities ( 78.4 ) ( 82.3 )

Net asset (liability) $ 42.0 $ ( 12.9 )

Net asset $ 37.9 $ 42.0

Amounts included in Accumulated OCI on the accompanying Consolidated Balance Sheets as of 2024 and 2023 year end are as follows:

47 unchanged sentences

This methodology matches the plans’ yearly projected cash flows for benefits and service costs to those of hypothetical bond portfolios using high-quality, AA rated or better, corporate bonds from either Moody’s Investors Service or Standard & Poor’s credit rating agencies available at the measurement date.

This technique calculates bond portfolios that produce adequate cash flows to pay the plans’ projected yearly benefits and then selects the portfolio with the highest yield and uses that yield as the recommended discount rate.The weighted-average discount rate for Snap-on’s domestic pension plans of 5.5 % represents the single rate that produces the same present value of cash flows as the estimated benefit plan payments.

The weighted-average discount rate for Snap-on’s domestic pension plans of 5.6 % represents the single rate that produces the same present value of cash flows as the estimated benefit plan payments.

Lowering Snap-on’s domestic discount rate assumption by 50 basis points (100 basis points (“bps”) equals 1.0 percent) would have increased Snap-on’s 2024 domestic pension expense and projected benefit obligation by approximately $ 3.0 million and $ 46.4 million, respectively.

64 unchanged sentences

71.9 — — 71.9

47.9 — — 47.9

Commingled funds – domestic

18 unchanged sentences

72.9 — — 72.9

39.2 — — 39.2

Commingled funds – domestic

3 unchanged sentences

Private equity partnerships

— — 11.0 11.0

Debt securities:

72 unchanged sentences

Fair value of plan assets at beginning of year 11.4 11.2

Actual gain (loss) on plan assets 1.0 ( 1.7 )

Return on plan assets 1.0 1.0

Employer contributions 2.7 2.3

13 unchanged sentences

Notes to Consolidated Financial Statements (continued)

The components of net periodic benefit cost and changes recognized in OCI are as follows:

The components of net periodic benefit cost (credit) and changes recognized in OCI are as follows:

(Amounts in millions) 2024 2023 2022

Net periodic benefit cost:

Net periodic benefit cost (credit):

Interest cost $ 1.8 $ 1.9 $ 1.2

1 unchanged sentence

Amortization of unrecognized gain ( 1.2 ) ( 1.1 ) —

Net periodic benefit cost $ 0.2 $ 0.6 $ 0.5

Net periodic benefit cost (credit) $ — $ 0.2 $ 0.6

Changes in benefit obligations recognized in OCI, net of tax:

71 unchanged sentences

Net stock-based compensation expense was $ 28.6 million in 2024, $ 44.7 million in 2023 and $ 34.0 million in 2022.

Cash received from stock purchase plan and stock option exercises was $ 113.6 million in 2023, $ 55.0 million in 2022 and $ 162.4 million in 2021.

Cash received from stock purchase plans and stock option exercises was $ 92.3 million in 2024, $ 113.6 million in 2023 and $ 55.0 million in 2022.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 20.2 million in 2024, $ 16.9 million in 2023 and $ 10.7 million in 2022.

41 unchanged sentences

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”).

PSUs related to 60,402 shares and 46,217 shares were paid out in 2023 and 2022, respectively.

There were no PSUs paid out in 2021.

PSUs related to 137,096 shares, 60,402 shares and 46,217 shares were paid out in 2024, 2023 and 2022, respectively.

2024 ANNUAL REPORT 103

9 unchanged sentences

* Weighted-average

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

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

As of 2024 year end, there was $ 14.2 million of unrecognized compensation cost related to non-vested PSUs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.4 years.

25 unchanged sentences

The fair value of cash-settled SARs is revalued (mark-to-market) each reporting period using the Black-Scholes valuation model based on Snap-on’s period-end stock price.

The company uses historical data regarding SARs exercise and forfeiture behaviors for different participating groups to estimate the expected term of the SARs granted based on the period of time that similar instruments granted are expected to be outstanding.

The company uses historical data regarding SARs exercise and forfeiture behaviors for different participating groups to estimate the period of time that SARs granted are expected to be outstanding.

Expected volatility is based on the historical volatility of the company’s stock for the length of time corresponding to the expected term of the SARs.

1 unchanged sentence

The risk-free interest rate is based on the U.S.

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.

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

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during 2024, 2023 and 2022, using the Black-Scholes valuation model:

28 unchanged sentences

Risk-free interest rate 4.36 % 4.01 % 4.22 %

The intrinsic value of cash-settled SARs exercised was $ 0.4 million in 2023, $ 0.6 million in 2022 and $ 0.6 million in 2021.

The intrinsic value of cash-settled SARs exercised was zero in 2024, $ 0.4 million in 2023 and $ 0.6 million in 2022.

The fair value of cash-settled SARs vested during 2024, 2023 and 2022 was $ 0.2 million, $ 0.1 million and $ 0.1 million, respectively.

12 unchanged sentences

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.

All restrictions for the restricted stock generally lapse upon the earlier of the first anniversary of the grant date, the recipient’s death or disability or in the event of a change in control, as defined in the 2011 Plan.

All restrictions on the restricted stock awards generally lapse upon the earlier of the first anniversary of the grant date, the recipient’s death or disability or in the event of a change in control, as defined in the 2011 Plan.

If termination of the recipient’s service occurs prior to the first anniversary of the grant date for any reason other than death or disability, the shares of restricted stock would be forfeited, unless otherwise determined by the Board.

6 unchanged sentences

Substantially all Snap-on employees in the United States and Canada are eligible to participate in an employee stock purchase plan.

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.

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

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

5 unchanged sentences

All franchisees in the United States and Canada are eligible to participate in a franchisee stock purchase plan.

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

26 unchanged sentences

In recent years, Snap-on has not experienced any significant work slowdowns, stoppages or other labor disruptions.

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

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

The accompanying Consolidated Statements of Earnings for the year ended December 28, 2024, include benefits in “Operating expenses” of $ 22.5 million 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.

40 unchanged sentences

$ 17.0 $ 19.1

Accumulated depreciation and amortization ( 16.8 ) ( 16.4 )

Accumulated depreciation ( 15.5 ) ( 16.8 )

Property and equipment – net

10 unchanged sentences

2024 2023 2022

Weighted-average remaining lease terms:

Finance leases 2.5 years 2.1 years 2.9 years

Operating leases 3.8 years 4.0 years 3.3 years

Weighted-average remaining lease terms (in years) :

Finance leases 3.8 2.5 2.1

Operating leases 4.7 3.8 4.0

Weighted-average discount rates:

13 unchanged sentences

Lessor accounting:

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.

Snap-on’s Financial Services business offers lease financing to support the sales of tools, diagnostics, and equipment products, as well as vehicle leases for franchisees.

Snap-on accounts for its financial services leases as sales-type leases.

7 unchanged sentences

In 2024 and 2023, finance receivables have future minimum lease payments, including unguaranteed residual value, of $ 53.4 million and $ 28.6 million, respectively, and unearned finance charges of $ 12.2 million and $ 6.2 million, respectively.

Sales-type leases are included in both “Contract receivables – net” and “Long-term contract receivables – net” on the accompanying Consolidated Balance Sheets, with lease terms of up to seven years .

Sales-type leases are also included in both “Contract receivables – net” and “Long-term contract receivables – net” on the accompanying Consolidated Balance Sheets, with lease terms of up to seven years .

In 2024 and 2023, contract receivables have future minimum lease payments, including unguaranteed residual value, of $ 318.6 million and $ 315.7 million, respectively, and unearned finance charges of $ 58.2 million and $ 56.2 million, respectively.

15 unchanged sentences

26.8 37.6 36.1

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

Other 0.6 0.7 0.9

6 unchanged sentences

Balance at beginning of 2023 $ ( 272.5 ) $ 7.3 $ ( 263.1 ) $ ( 528.3 )

Other comprehensive loss before reclassifications ( 127.4 ) — ( 69.0 ) ( 196.4 )

Amounts reclassified from Accumulated OCI — ( 1.6 ) 13.6 12.0

Net other comprehensive loss ( 127.4 ) ( 1.6 ) ( 55.4 ) ( 184.4 )

Balance as of 2022 year end $ ( 272.5 ) $ 7.3 $ ( 263.1 ) $ ( 528.3 )

Other comprehensive income before reclassifications 60.7 — 19.3 80.0

2 unchanged sentences

Balance as of 2023 year end $ ( 211.8 ) $ 5.7 $ ( 243.4 ) $ ( 449.5 )

Other comprehensive loss before reclassifications ( 108.8 ) — ( 21.1 ) ( 129.9 )

Amounts reclassified from Accumulated OCI — ( 1.7 ) 6.1 4.4

Net other comprehensive loss ( 108.8 ) ( 1.7 ) ( 15.0 ) ( 125.5 )

Balance as of 2024 year end $ ( 320.6 ) $ 4.0 $ ( 258.4 ) $ ( 575.0 )

SNAP-ON INCORPORATED

14 unchanged sentences

see Note 11 and Note 12 for additional information.

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

Snap-on’s reportable business segments are:

Snap-on’s operating segments, which represent Snap-on’s reportable segments, are based on the organizational structure used by the Chief Executive Officer, its chief operating decision maker (“CODM”), to make operating and investment determinations and to assess performance.

Snap-on’s reportable operating segments are:

(i) the Commercial & Industrial Group;

6 unchanged sentences

Financial Services consists of the business operations of Snap-on’s finance subsidiaries.

Snap-on evaluates the performance of its operating segments based on segment revenues and segment operating earnings.

The CODM evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the Repair Systems & Information Group operating segments based on segment net sales and segment operating earnings.

Snap-on accounts for intersegment net sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments.

The Financial Services operating segment is evaluated based on financial services revenue and segment operating earnings.

Segment net sales and segment operating earnings are used to determine the compensation of certain management employees.

Identifiable assets by segment are those assets used in the respective reportable segment’s operations.

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

Corporate expenses primarily reflect stock-based compensation and other costs not attributable to an operating segment.

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

3 unchanged sentences

Financial Data by Segment:

(Amounts in millions) 2023 2022 2021

Commercial & Industrial Group $ 1,458.3 $ 1,399.2 $ 1,406.3

Snap-on Tools Group 2,088.8 2,072.0 1,938.6

Repair Systems & Information Group 1,781.2 1,666.9 1,503.1

Commercial & Snap-on Repair Systems

Industrial Tools & Information Financial Total

(Amounts in millions) Group Group Group Services Segments

External net sales $ 1,187.6 $ 1,989.2 $ 1,530.6 $ — $ 4,707.4

Intersegment net sales 289.2 — 267.3 — 556.5

Segment net sales 1,476.8 1,989.2 1,797.9 — 5,263.9

Segment cost of goods sold ( 868.6 ) ( 1,050.3 ) ( 967.1 ) — ( 2,886.0 )

Segment gross profit 608.2 938.9 830.8 — 2,377.9

Financial services revenue — — — 401.0 401.0

Segment operating and financial services expenses

Personnel ( 218.8 ) ( 191.7 ) ( 253.9 ) ( 34.7 )

Shipping and handling costs ( 27.8 ) ( 87.7 ) — —

Depreciation and amortization ( 7.8 ) ( 7.5 ) ( 20.8 ) ( 1.0 )

Provisions for credit losses — — — ( 73.7 )

Other segment expenses* ( 111.7 ) ( 204.7 ) ( 100.9 ) ( 14.7 )

Total segment operating and financial services expenses ( 366.1 ) ( 491.6 ) ( 375.6 ) ( 124.1 ) ( 1,357.4 )

Segment operating earnings $ 242.1 $ 447.3 $ 455.2 $ 276.9 $ 1,421.5

Reconciliation of segment net sales to total net sales and total revenues:

Segment net sales $ 5,263.9

Intersegment eliminations ( 556.5 )

2 unchanged sentences

Total revenues $ 5,108.4

Reconciliation of segment cost of goods sold to cost of goods sold:

Segment cost of goods sold $ ( 2,886.0 )

Intersegment eliminations 556.5

Cost of goods sold $ ( 2,329.5 )

Reconciliation of segment operating earnings to operating earnings and

earnings before income taxes:

Segment operating earnings $ 1,421.5

Corporate operating expenses ( 75.8 )

Operating earnings 1,345.7

Commercial & Industrial Group $ 226.1 $ 197.6 $ 209.9

Snap-on Tools Group 493.8 458.7 411.1

Repair Systems & Information Group 433.2 393.3 348.6

Financial Services 270.5 266.0 272.0

Interest expense ( 49.6 )

Other income (expense) – net 77.0

Earnings before income taxes $ 1,373.1

* Other segment expenses primarily include:

Commercial & Industrial Group - shared service allocations;

technology, travel and marketing expenses.

Snap-on Tools Group - franchisee support costs, shared service allocations and technology expenses.

Repair Systems & Information Group - technology, travel, professional fee and marketing expenses;

shared service allocations.

Financial Services - customer support and technology expenses.

SNAP-ON INCORPORATED

Financial Data by Segment (continued):

Commercial & Snap-on Repair Systems

Industrial Tools & Information Financial Total

(Amounts in millions) Group Group Group Services Segments

External net sales $ 1,145.6 $ 2,088.8 $ 1,495.8 $ — $ 4,730.2

Intersegment net sales 312.7 — 285.4 — 598.1

Segment net sales 1,458.3 2,088.8 1,781.2 — 5,328.3

Segment cost of goods sold ( 887.5 ) ( 1,107.7 ) ( 984.0 ) — ( 2,979.2 )

Segment gross profit 570.8 981.1 797.2 — 2,349.1

Financial services revenue — — — 378.1 378.1

Segment operating and financial services expenses

Personnel ( 207.7 ) ( 199.9 ) ( 248.9 ) ( 34.7 )

Shipping and handling and other freight expenses ( 24.7 ) ( 93.3 ) — —

Depreciation and amortization ( 7.5 ) ( 7.5 ) ( 24.4 ) ( 0.9 )

Provisions for credit losses — — — ( 59.1 )

Other segment expenses* ( 104.8 ) ( 186.6 ) ( 90.7 ) ( 12.9 )

Total segment operating and financial services expenses ( 344.7 ) ( 487.3 ) ( 364.0 ) ( 107.6 ) ( 1,303.6 )

Segment operating earnings $ 226.1 $ 493.8 $ 433.2 $ 270.5 $ 1,423.6

Corporate ( 113.2 ) ( 108.4 ) ( 118.1 )

Reconciliation of segment net sales to total net sales and total revenues:

Segment net sales $ 5,328.3

Intersegment eliminations ( 598.1 )

Total net sales 4,730.2

Financial services revenue 378.1

Total revenues $ 5,108.3

Reconciliation of segment cost of goods sold to cost of goods sold:

Segment cost of goods sold $ ( 2,979.2 )

Intersegment eliminations 598.1

Cost of goods sold $ ( 2,381.1 )

Reconciliation of segment operating earnings to operating earnings and

earnings before income taxes:

Segment operating earnings $ 1,423.6

Corporate operating expenses ( 113.2 )

Operating earnings 1,310.4

1 unchanged sentence

Other income (expense) – net 67.5

Earnings before income taxes and equity earnings $ 1,328.0 $ 1,202.6 $ 1,086.9

(Amounts in millions) 2023 2022

Commercial & Industrial Group $ 1,293.7 $ 1,245.8

Snap-on Tools Group 941.8 912.9

Repair Systems & Information Group 1,680.0 1,678.1

Financial Services 2,430.0 2,242.7

Total assets from reportable segments 6,345.5 6,079.5

Corporate 1,285.0 972.9

Elimination of intersegment receivables ( 85.6 ) ( 79.6 )

Total assets $ 7,544.9 $ 6,972.8

Earnings before income taxes $ 1,328.0

* Other segment expenses primarily include:

Commercial & Industrial Group - shared service allocations;

technology, travel and marketing expenses.

Snap-on Tools Group - franchisee support costs, shared service allocations and technology expenses.

Repair Systems & Information Group - technology, travel, professional fee and marketing expenses;

shared service allocations.

Financial Services - customer support and technology expenses.

2024 ANNUAL REPORT 113

Notes to Consolidated Financial Statements (continued)

Financial Data by Segment (continued):

Commercial & Snap-on Repair Systems

Industrial Tools & Information Financial Total

(Amounts in millions) Group Group Group Services Segments

External net sales $ 1,058.3 $ 2,072.0 $ 1,362.5 $ — $ 4,492.8

Intersegment net sales 340.9 — 304.4 — 645.3

Segment net sales 1,399.2 2,072.0 1,666.9 — 5,138.1

Segment cost of goods sold ( 880.5 ) ( 1,141.7 ) ( 934.8 ) — ( 2,957.0 )

Segment gross profit 518.7 930.3 732.1 — 2,181.1

Financial services revenue — — — 349.7 349.7

Segment operating and financial services expenses

Personnel ( 194.2 ) ( 199.0 ) ( 234.0 ) ( 32.6 )

Shipping and handling and other freight expenses ( 24.2 ) ( 90.2 ) — —

Depreciation and amortization ( 7.4 ) ( 9.0 ) ( 24.3 ) ( 0.9 )

Provisions for credit losses — — — ( 38.2 )

Other segment expenses* ( 95.3 ) ( 173.4 ) ( 80.5 ) ( 12.0 )

Total segment operating and financial services expenses ( 321.1 ) ( 471.6 ) ( 338.8 ) ( 83.7 ) ( 1,215.2 )

Segment operating earnings $ 197.6 $ 458.7 $ 393.3 $ 266.0 $ 1,315.6

Reconciliation of segment net sales to total net sales and total revenues:

Segment net sales $ 5,138.1

Intersegment eliminations ( 645.3 )

Total net sales 4,492.8

Financial services revenue 349.7

Total revenues $ 4,842.5

Reconciliation of segment cost of goods sold to cost of goods sold:

Segment cost of goods sold $ ( 2,957.0 )

Intersegment eliminations 645.3

Cost of goods sold $ ( 2,311.7 )

Reconciliation of segment operating earnings to operating earnings and

earnings before income taxes:

Segment operating earnings $ 1,315.6

Corporate operating expenses ( 108.4 )

Operating earnings 1,207.2

Interest expense ( 47.1 )

Other income (expense) – net 42.5

Earnings before income taxes $ 1,202.6

* Other segment expenses primarily include:

Commercial & Industrial Group - shared service allocations;

technology, travel and marketing expenses.

Snap-on Tools Group - franchisee support costs, shared service allocations and technology expenses.

Repair Systems & Information Group - technology, travel, professional fee, and marketing expenses;

shared service allocations.

Financial Services - customer support and technology expenses.

SNAP-ON INCORPORATED

23 unchanged sentences

(Amounts in millions) 2024 2023

Commercial & Industrial Group $ 1,230.8 $ 1,293.7

Snap-on Tools Group 937.5 941.8

Repair Systems & Information Group 1,695.5 1,680.0

Financial Services 2,491.9 2,430.0

Total assets from reportable segments 6,355.7 6,345.5

Corporate 1,633.0 1,285.0

Elimination of intersegment receivables ( 91.9 ) ( 85.6 )

Total assets $ 7,896.8 $ 7,544.9

Long-lived assets:**

80 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-K

Item 9A. Controls and Procedures