What changed in this filing

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Item 1. Financial Statements

2025-04-17 compared with 2024-10-17 · 261 added, 341 removed, 830 unchanged (42% of the section changed)

3 unchanged sentences

(Amounts in millions, except per share data)

Three Months Ended Nine Months Ended

September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Months Ended

March 29, 2025 March 30, 2024

Net sales $ 1,141.1 $ 1,182.3

26 unchanged sentences

(Amounts in millions)

Three Months Ended Nine Months Ended

September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Months Ended

March 29, 2025 March 30, 2024

Comprehensive income (loss):

5 unchanged sentences

Amortization of net unrecognized losses

2.0 0.1 6.0 0.2

Income tax benefit

( 1.3 ) ( 0.4 )

1.5 0.1 4.6 0.2

Total comprehensive income 322.2 225.8

7 unchanged sentences

(Amounts in millions, except share data)

September 28,

2025 December 28, 2024

27 unchanged sentences

(Amounts in millions, except share data)

September 28,

2025 December 28, 2024

35 unchanged sentences

(Amounts in millions, except share data)

The following summarizes the changes in total equity for the three month period ended September 28, 2024:

Shareholders’ Equity Attributable to Snap-on Incorporated

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury

Stock Noncontrolling

Interests Total

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

Net earnings for the three months ended September 28, 2024

— — 251.1 — — 6.4 257.5

Other comprehensive income — — — 80.1 — — 80.1

Cash dividends – $ 1.86 per share

— — ( 97.9 ) — — — ( 97.9 )

Stock compensation plans — 6.2 — — 9.3 — 15.5

Share repurchases – 215,000 shares

— — — — ( 59.9 ) — ( 59.9 )

Other — — ( 0.2 ) — — ( 6.3 ) ( 6.5 )

Balance at September 28, 2024 $ 67.5 $ 549.0 $ 7,439.0 $ ( 424.7 ) $ ( 2,155.8 ) $ 22.7 $ 5,497.7

The following summarizes the changes in total equity for the nine month period ended September 28, 2024:

The following summarizes the changes in total equity for the three month period ended March 29, 2025:

Shareholders’ Equity Attributable to Snap-on Incorporated

7 unchanged sentences

Balance at December 28, 2024 $ 67.5 $ 557.7 $ 7,584.3 $ ( 575.0 ) $ ( 2,240.4 ) $ 22.9 $ 5,417.0

Net earnings for the nine months ended September 28, 2024

Net earnings for the three months ended March 29, 2025

— — 240.5 — — 6.2 246.7

6 unchanged sentences

Other — — ( 0.2 ) — — ( 5.8 ) ( 6.0 )

Balance at September 28, 2024 $ 67.5 $ 549.0 $ 7,439.0 $ ( 424.7 ) $ ( 2,155.8 ) $ 22.7 $ 5,497.7

See Notes to Condensed Consolidated Financial Statements.

The following summarizes the changes in total equity for the three month period ended September 30, 2023:

Shareholders’ Equity Attributable to Snap-on Incorporated

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury

Stock Noncontrolling

Interests Total

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

Net earnings for the three months ended September 30, 2023

— — 243.1 — — 6.0 249.1

Other comprehensive loss — — — ( 52.6 ) — — ( 52.6 )

Cash dividends – $ 1.62 per share

— — ( 85.6 ) — — — ( 85.6 )

Stock compensation plans — 10.6 — — 10.2 — 20.8

Share repurchases – 194,000 shares

— — — — ( 51.8 ) — ( 51.8 )

Other — ( 0.8 ) — — ( 6.0 ) ( 6.8 )

Balance at September 30, 2023 $ 67.5 $ 531.7 $ 6,792.3 $ ( 563.3 ) $ ( 1,998.0 ) $ 22.2 $ 4,852.4

The following summarizes the changes in total equity for the nine month period ended September 30, 2023:

Balance at March 29, 2025 $ 67.5 $ 543.5 $ 7,712.4 $ ( 499.5 ) $ ( 2,303.1 ) $ 23.3 $ 5,544.1

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

Shareholders’ Equity Attributable to Snap-on Incorporated

7 unchanged sentences

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 nine months ended September 30, 2023

Net earnings for the three months ended March 30, 2024

— — 263.5 — — 6.1 269.6

6 unchanged sentences

Other — — ( 0.7 ) — — ( 5.9 ) ( 6.6 )

Balance at September 30, 2023 $ 67.5 $ 531.7 $ 6,792.3 $ ( 563.3 ) $ ( 1,998.0 ) $ 22.2 $ 4,852.4

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

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Amounts in millions)

Nine Months Ended

September 28, 2024 September 30, 2023

Three Months Ended

March 29, 2025 March 30, 2024

Operating activities:

6 unchanged sentences

Stock-based compensation expense 4.5 9.8

Deferred income tax benefit ( 7.2 ) ( 16.5 )

Deferred income tax provision 3.7 1.6

Gain on sales of assets — ( 0.2 )

3 unchanged sentences

Inventories ( 3.0 ) 22.1

Prepaid expenses and other current assets 10.5 30.3

Prepaid expenses and other assets ( 9.4 ) ( 3.5 )

Accounts payable 18.5 23.3

9 unchanged sentences

Financing activities:

Net decrease in other short-term borrowings ( 0.9 ) —

Net increase (decrease) in other short-term borrowings 4.5 ( 0.4 )

Cash dividends paid ( 112.2 ) ( 98.2 )

17 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 2024 Annual Report on Form 10-K for the fiscal year ended December 28, 2024 (“2024 year end”).

The company’s 2024 fiscal third quarter ended on September 28, 2024, and its 2023 fiscal third quarter ended on September 30, 2023.

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

The company’s 2025 fiscal year, which ends on January 3, 2026, will contain 53 weeks of operating results, with the additional week occurring in the fourth quarter.

The company’s 2024 fiscal year contained 52 weeks of operating results.

The company’s 2025 fiscal first quarter ended on March 29, 2025, and its 2024 fiscal first quarter ended on March 30, 2024.

The company’s 2025 and 2024 fiscal first quarters each contained 13 weeks of operating results.

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

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the Condensed Consolidated Financial Statements for the three and nine month periods ended September 28, 2024, and September 30, 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 month periods ended March 29, 2025, and March 30, 2024, 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 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.

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.

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 Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Months Ended

(Amounts in millions) March 29, 2025 March 30, 2024

Revenue from contracts with customers $ 1,133.3 $ 1,175.2

3 unchanged sentences

Total revenues $ 1,243.2 $ 1,281.9

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

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

For the Three Months Ended September 28, 2024

For the Three Months Ended March 29, 2025

Commercial Snap-on Repair Systems

10 unchanged sentences

Total revenue $ 343.9 $ 462.9 $ 475.9 $ 102.1 $ ( 141.6 ) $ 1,243.2

For the Nine Months Ended September 28, 2024

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

North America* $ 467.3 $ 1,280.7 $ 874.2 $ — $ — $ 2,622.2

Europe 230.0 118.4 188.0 — — 536.4

All other 187.4 83.5 79.2 — — 350.1

External net sales 884.7 1,482.6 1,141.4 — — 3,508.7

Intersegment net sales 212.9 — 199.9 — ( 412.8 ) —

Total net sales 1,097.6 1,482.6 1,341.3 — ( 412.8 ) 3,508.7

Financial services revenue — — — 300.5 — 300.5

Total revenue $ 1,097.6 $ 1,482.6 $ 1,341.3 $ 300.5 $ ( 412.8 ) $ 3,809.2

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

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Three Months Ended September 30, 2023

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

North America* $ 146.4 $ 451.4 $ 282.0 $ — $ — $ 879.8

Europe 69.6 37.5 54.0 — — 161.1

All other 64.5 26.5 27.4 — — 118.4

External net sales 280.5 515.4 363.4 — — 1,159.3

Intersegment net sales 85.9 — 68.4 — ( 154.3 ) —

Total net sales 366.4 515.4 431.8 — ( 154.3 ) 1,159.3

Financial services revenue — — — 94.9 — 94.9

Total revenue $ 366.4 $ 515.4 $ 431.8 $ 94.9 $ ( 154.3 ) $ 1,254.2

For the Nine Months Ended September 30, 2023

For the Three Months Ended March 30, 2024

Commercial Snap-on Repair Systems

13 unchanged sentences

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

For the Three Months Ended September 28, 2024

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

Vehicle service professionals $ 20.1 $ 500.5 $ 357.8 $ — $ — $ 878.4

All other professionals 268.6 — — — — 268.6

External net sales 288.7 500.5 357.8 — — 1,147.0

Intersegment net sales 77.0 — 64.9 — ( 141.9 ) —

Total net sales 365.7 500.5 422.7 — ( 141.9 ) 1,147.0

Financial services revenue — — — 100.4 — 100.4

Total revenue $ 365.7 $ 500.5 $ 422.7 $ 100.4 $ ( 141.9 ) $ 1,247.4

For the Nine Months Ended September 28, 2024

Commercial Snap-on Repair Systems

& Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

Vehicle service professionals $ 61.4 $ 1,482.6 $ 1,141.4 $ — $ — $ 2,685.4

All other professionals 823.3 — — — — 823.3

External net sales 884.7 1,482.6 1,141.4 — — 3,508.7

Intersegment net sales 212.9 — 199.9 — ( 412.8 ) —

Total net sales 1,097.6 1,482.6 1,341.3 — ( 412.8 ) 3,508.7

Financial services revenue — — — 300.5 — 300.5

Total revenue $ 1,097.6 $ 1,482.6 $ 1,341.3 $ 300.5 $ ( 412.8 ) $ 3,809.2

For the Three Months Ended September 30, 2023

For the Three Months Ended March 29, 2025

Commercial Snap-on Repair Systems

8 unchanged sentences

Total revenue $ 343.9 $ 462.9 $ 475.9 $ 102.1 $ ( 141.6 ) $ 1,243.2

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For the Nine Months Ended September 30, 2023

For the Three Months Ended March 30, 2024

Commercial Snap-on Repair Systems

19 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 $ 183.0 million of long-term contracts that have fixed consideration that extends beyond one year as of September 28, 2024.

Snap-on had $ 202.6 million of long-term contracts that have fixed consideration that extends beyond one year as of March 29, 2025.

Snap-on expects to recognize approximately 65 % of these contracts as revenue by the end of fiscal 2026, an additional 30 % by the end of fiscal 2028, 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 $ 67.4 million and $ 63.3 million at September 28, 2024, and December 30, 2023, respectively.

The balance of total contract liabilities was $ 73.4 million and $ 63.8 million at March 29, 2025, and December 28, 2024, respectively.

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

During the three and nine month periods ended September 28, 2024, Snap-on recognized $ 4.5 million and $ 53.3 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.

(“SAVTEQ”) for a cash purchase price of $ 3.0 million.

SAVTEQ, based in Lexington, Kentucky, provides precise non-contact measuring capabilities.

In fiscal 2023, the company completed the purchase accounting valuations for the acquired net assets of SAVTEQ.

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 Condensed Consolidated Balance Sheets.

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

(“Mountz”) for a cash purchase price of $ 39.6 million.

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 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 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 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.

See Note 6 for additional information on goodwill and other intangible assets.

During the three months ended March 29, 2025, Snap-on recognized $ 37.0 million of revenue that was included in the contract liability balance at December 28, 2024, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.

Trade and other accounts receivable:

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

The components of Snap-on’s trade and other accounts receivable as of September 28, 2024, and December 30, 2023, are as follows:

(Amounts in millions) September 28,

The components of Snap-on’s trade and other accounts receivable as of March 29, 2025, and December 28, 2024, are as follows:

(Amounts in millions) March 29,

2025 December 28, 2024

2 unchanged sentences

Total trade and other accounts receivable – net $ 852.7 $ 815.6

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 nine month periods ended September 28, 2024, and September 30, 2023:

Three Months Ended Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for the three month periods ended March 29, 2025, and March 30, 2024:

Three Months Ended

(Amounts in millions) March 29, 2025 March 30, 2024

Allowances for credit losses:

2 unchanged sentences

( 3.3 ) ( 3.0 )

( 4.3 ) ( 3.6 ) ( 12.9 ) ( 10.9 )

Currency translation

0.5 ( 0.4 ) ( 0.3 ) ( 0.1 )

End of period $ 39.2 $ 35.9

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Finance and contract receivables:

6 unchanged sentences

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

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of Snap-on’s current finance and contract receivables as of September 28, 2024, and December 30, 2023, are as follows:

(Amounts in millions) September 28,

The components of Snap-on’s current finance and contract receivables as of March 29, 2025, and December 28, 2024, are as follows:

(Amounts in millions) March 29,

2025 December 28, 2024

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 September 28, 2024, and December 30, 2023, are as follows:

(Amounts in millions) September 28,

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of March 29, 2025, and December 28, 2024, are as follows:

(Amounts in millions) March 29,

2025 December 28, 2024

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 September 28, 2024, and charge-offs recorded in the nine months ended September 28, 2024, by origination year, are as follows:

The amortized cost basis of finance and contract receivables by origination year as of March 29, 2025, and charge-offs recorded in the three months ended March 29, 2025, by origination year, are as follows:

(Amounts in millions) 2025 2024 2023 2022 2021 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 and nine month periods ended September 28, 2024, and September 30, 2023:

The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three month periods ended March 29, 2025, and March 30, 2024:

Three Months Ended

September 28, 2024 Nine Months Ended

September 28, 2024

March 29, 2025 Three Months Ended

March 30, 2024

(Amounts in millions) Finance

4 unchanged sentences

Beginning of period $ 72.4 $ 6.8 $ 67.8 $ 6.7

Provision for credit losses 15.2 0.7 50.6 1.6

Charge-offs ( 17.7 ) ( 0.8 ) ( 54.7 ) ( 1.8 )

Recoveries 2.2 0.1 7.2 0.3

Currency translation 0.2 0.1 0.1 0.1

End of period $ 71.0 $ 6.9 $ 71.0 $ 6.9

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Three Months Ended

September 30, 2023 Nine Months Ended

September 30, 2023

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

Allowances for credit losses:

Beginning of period $ 65.1 $ 6.5 $ 60.9 $ 6.6

Provision for credit losses 12.8 0.7 40.7 1.3

Provisions for credit losses 18.2 0.9 18.2 0.6

Charge-offs ( 20.0 ) ( 0.6 ) ( 18.3 ) ( 0.6 )

7 unchanged sentences

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

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 September 28, 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 September 28, 2024, and December 30, 2023, is as follows:

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 29, 2025, and December 28, 2024, 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 29, 2025, and December 28, 2024, is as follows:

(Amounts in millions) 30-59

2 unchanged sentences

Past Due Total Greater

September 28, 2024:

March 29, 2025:

Finance receivables $ 19.9 $ 13.9 $ 28.0 $ 61.8 $ 1,928.0 $ 1,989.8 $ 23.5

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 September 28, 2024, and December 30, 2023, is as follows:

(Amounts in millions) September 28,

The amount of finance and contract receivables on nonaccrual status as of March 29, 2025, and December 28, 2024, is as follows:

(Amounts in millions) March 29,

2025 December 28, 2024

4 unchanged sentences

Inventories by major classification are as follows:

(Amounts in millions) September 28,

(Amounts in millions) March 29,

2025 December 28, 2024

5 unchanged sentences

Total inventories – net $ 961.2 $ 943.4

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 58 % and 59 % of total inventories as of September 28, 2024, and December 30, 2023.

Inventories accounted for using the first-in, first-out (“FIFO”) method approximated 59 % and 57 % of total inventories as of March 29, 2025, and December 28, 2024, respectively.

The company accounts for its non-U.S.

inventory on the FIFO method.

As of September 28, 2024, approximately 35 % of the company’s U.S.

As of March 29, 2025, 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 and nine month periods ended September 28, 2024, and September 30, 2023.

There were no LIFO inventory liquidations in the three month periods ended March 29, 2025, and March 30, 2024.

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by segment for the nine months ended September 28, 2024, are as follows:

The changes in the carrying amount of goodwill by segment for the three months ended March 29, 2025, are as follows:

(Amounts in millions) Commercial

4 unchanged sentences

Currency translation 12.5 — 8.4 20.9

Acquisition adjustments ( 13.2 ) — — ( 13.2 )

Balance as of September 28, 2024 $ 334.6 $ 12.4 $ 739.6 $ 1,086.6

Goodwill of $ 1,086.6 million as of September 28, 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.

See Note 3 for additional information on acquisitions.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Balance as of March 29, 2025 $ 328.1 $ 12.4 $ 737.2 $ 1,077.7

Additional disclosures related to other intangible assets are as follows:

September 28, 2024 December 30, 2023

March 29, 2025 December 28, 2024

(Amounts in millions) Gross Carrying Value Accumulated

11 unchanged sentences

Total other intangible assets $ 499.4 $ ( 228.0 ) $ 271.4 $ 488.2 $ ( 220.6 ) $ 267.6

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.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 September 28, 2024, the company had no accumulated impairment losses.

As of March 29, 2025, 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 $ 19.0 million for the respective three and nine month periods ended September 28, 2024, and $ 6.8 million and $ 20.7 million for the respective three and nine month periods ended September 30, 2023.

The aggregate amortization expense was $ 5.7 million and $ 6.3 million for the respective three month periods ended March 29, 2025, and March 30, 2024.

Based on current levels of amortizable intangible assets and estimated weighted-average useful lives, estimated annual amortization expense is expected to be $ 21.9 million in 2025, $ 17.5 million in 2026, $ 14.9 million in 2027, $ 11.9 million in 2028, $ 8.3 million in 2029, and $ 8.0 million in 2030.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 22.6 % and 22.9 % in the first nine months of fiscal 2024 and 2023, respectively.

Snap-on’s effective income tax rate on earnings attributable to Snap-on was 22.2 % in the first three months of both fiscal 2025 and 2024.

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

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Short-term and Long-term Debt

Short-term and long-term debt as of September 28, 2024, and December 30, 2023, consisted of the following:

(Amounts in millions) September 28,

Short-term and long-term debt as of March 29, 2025, and December 28, 2024, consisted of the following:

(Amounts in millions) March 29,

2025 December 28, 2024

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* Includes unamortized debt issuance costs and issuance discounts.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 nine months ended and as of September 28, 2024.

No amounts were borrowed or outstanding under the Credit Facility during the three months ended and as of March 29, 2025.

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

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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 September 28, 2024, the company’s consolidated cash balance, net of certain adjustments, exceeded consolidated debt resulting in actual ratios of ( 0.01 ) and ( 0.03 ), respectively.

As of March 29, 2025, the company’s consolidated cash balance, net of certain adjustments, exceeded consolidated debt resulting in actual ratios of ( 0.03 ) and ( 0.10 ), 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.

As of September 28, 2024, there were no commercial paper issuances outstanding.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of March 29, 2025, there were no commercial paper issuances outstanding.

Financial Instruments

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See Note 15 for additional information on Other income (expense) – net.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Interest rate risk management:

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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 September 28, 2024, and December 30, 2023 .

T here were no outstanding interest rate swaps as of both March 29, 2025, and December 28, 2024 .

Treasury locks:

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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 September 28, 2024, and December 30, 2023.

There were no treasury locks outstanding as of both March 29, 2025, and December 28, 2024.

See Note 15 for additional information on Other income (expense) – net.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Stock-based deferred compensation risk management:

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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 September 28, 2024, Snap-on had equity forwards in place intended to manage market risk with respect to 77,200 shares of Snap-on common stock associated with its deferred compensation plans.

As of March 29, 2025, Snap-on had equity forwards in place intended to manage market risk with respect to 71,300 shares of Snap-on common stock associated with its deferred compensation plans.

Counterparty risk:

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Snap-on does not anticipate non-performance by its counterparties, but cannot provide assurances.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fair value of financial instruments:

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

September 28, 2024 December 30, 2023

March 29, 2025 December 28, 2024

(Amounts in millions) Carrying

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

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Pension Plans

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

Three Months Ended Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Months Ended

(Amounts in millions) March 29, 2025 March 30, 2024

Service cost $ 5.1 $ 5.0

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Amortization of unrecognized loss 5.5 2.1

Net periodic pension benefit $ ( 1.8 ) $ ( 4.7 ) $ ( 5.2 ) $ ( 14.2 )

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

Net periodic pension cost (benefit) $ 4.2 $ ( 2.0 )

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

See Note 15 for additional information on other income (expense) – net.

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Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2025.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Postretirement Health Care Plans

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

Three Months Ended Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Months Ended

(Amounts in millions) March 29, 2025 March 30, 2024

Interest cost $ 0.4 $ 0.5

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See Note 15 for additional information on Other income (expense) – net.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Stock-based Compensation and Other Stock Plans

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

As of September 28, 2024, the 2011 Plan had 2,091,365 shares available for future grants.

As of March 29, 2025, the 2011 Plan had 1,700,020 shares available for future grants.

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

Net stock-based compensation expense was $ 5.7 million and $ 21.5 million for the respective three and nine month periods ended September 28, 2024, and $ 11.0 million and $ 31.4 million for the respective three and nine month periods ended September 30, 2023.

Cash received from stock purchase plans and stock option exercises totaled $ 9.9 million and $ 61.6 million during the respective three and nine month periods ended September 28, 2024, and $ 9.9 million and $ 94.5 million for the respective three and nine month periods ended September 30, 2023.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 1.8 million and $ 12.9 million for the respective three and nine month periods ended September 28, 2024, and $ 2.6 million and $ 13.1 million for the respective three and nine month periods ended September 30, 2023.

Net stock-based compensation expense was $ 4.5 million and $ 9.8 million for the respective three month periods ended March 29, 2025, and March 30, 2024.

Cash received from stock purchase plans and stock option exercises totaled $ 18.3 million and $ 28.3 million during the respective three month periods ended March 29, 2025, and March 30, 2024.

The tax benefit realized from both the exercise and vesting of share-based payment arrangements was $ 8.3 million and $ 9.7 million for the respective three month periods ended March 29, 2025, and March 30, 2024.

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 nine month periods ended September 28, 2024, and September 30, 2023, using the Black-Scholes valuation model;

no stock options were granted during the three month periods ended September 28, 2024, and September 30, 2023:

Nine Months Ended

September 28, 2024 September 30, 2023

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the three month periods ended March 29, 2025, and March 30, 2024, using the Black-Scholes valuation model:

Three Months Ended

March 29, 2025 March 30, 2024

Expected term of stock option (in years)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Below is a summary of stock option activity as of and for the nine months ended September 28, 2024:

Below is a summary of stock option activity as of and for the three months ended March 29, 2025:

(in thousands)

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Forfeited or expired ( 1 ) 262.26

Outstanding at September 28, 2024 1,848 189.56 5.3 $ 182.9

Exercisable at September 28, 2024 1,401 169.56 4.3 166.7

Outstanding at March 29, 2025 1,770 208.18 5.6 $ 216.5

Exercisable at March 29, 2025 1,351 179.80 4.4 202.0

* Weighted-average

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The weighted-average grant date fair value of stock options granted during the nine month periods ended September 28, 2024, and September 30, 2023, was $ 55.07 and $ 51.09 , respectively.

The intrinsic value of stock options exercised was $ 7.3 million and $ 30.0 million during the respective three and nine month periods ended September 28, 2024, and $ 9.9 million and $ 57.0 million during the respective three and nine month periods ended September 30, 2023.

The fair value of stock options vested was $ 9.5 million and $ 9.1 million during the respective nine month periods ended September 28, 2024, and September 30, 2023.

As of September 28, 2024, there was $ 15.7 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 1.7 years.

The weighted-average grant date fair value of stock options granted during the respective three month periods ended March 29, 2025, and March 30, 2024, was $ 70.62 and $ 55.07 .

The intrinsic value of stock options exercised was $ 15.7 million and $ 17.1 million during the respective three month periods ended March 29, 2025, and March 30, 2024.

The fair value of stock options vested was $ 10.4 million and $ 9.5 million during the respective three month periods ended March 29, 2025, and March 30, 2024.

As of March 29, 2025, there was $ 24.3 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.

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 nine month periods ended September 28, 2024, and September 30, 2023, was $ 269.00 and $ 249.26 , respectively.

PSUs related to 137,096 shares and 60,402 shares were paid out during the nine month periods ended September 28, 2024, and September 30, 2023, respectively.

The weighted-average grant date fair value of PSUs granted during the respective three month periods ended March 29, 2025, and March 30, 2024, was $ 339.73 and $ 269.00 .

PSUs related to 62,171 shares and 137,096 shares were paid out during the respective three month periods ended March 29, 2025, and March 30, 2024.

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 nine months ended September 28, 2024, are as follows:

Changes to the company’s non-vested PSUs during the three months ended March 29, 2025, are as follows:

(in thousands)

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Cancellations and other — —

Non-vested PSUs at September 28, 2024 190 240.18

Non-vested PSUs at March 29, 2025 127 285.11

* Weighted-average

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

As of September 28, 2024, there was $ 18.4 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 1.1 years.

As of March 29, 2025, there was $ 22.2 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 1.7 years.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 nine month periods ended September 28, 2024, and September 30, 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 nine months ended September 28, 2024, are as follows:

The weighted-average grant date fair value of RSUs granted during the respective three month periods ended March 29, 2025, and March 30, 2024, was $ 339.73 and $ 269.00 .

Changes to the company’s non-vested RSUs during the three months ended March 29, 2025, are as follows:

(in thousands)

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Cancellations and other — —

Non-vested RSUs at September 28, 2024 72 242.19

Non-vested RSUs at March 29, 2025 64 282.01

* Weighted-average

As of September 28, 2024, there was $ 7.9 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 1.3 years.

As of March 29, 2025, there was $ 11.2 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 1.8 years.

Stock appreciation rights:

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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.

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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.

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the nine month periods ended September 28, 2024, and September 30, 2023, using the Black-Scholes valuation model;

no stock-settled SARs were granted during the three month periods ended September 28, 2024, and September 30, 2023:

Nine Months Ended

September 28, 2024 September 30, 2023

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 the three month periods ended March 29, 2025, and March 30, 2024, using the Black-Scholes valuation model:

Three Months Ended

March 29, 2025 March 30, 2024

Expected term of stock-settled SARs (in years)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Below is a summary of stock-settled SARs as of and for the nine months ended September 28, 2024:

Below is a summary of stock-settled SARs as of and for the three months ended March 29, 2025:

Stock-settled

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Forfeited or expired ( 17 ) 202.84

Outstanding at September 28, 2024 348 205.76 6.5 $ 28.8

Exercisable at September 28, 2024 222 179.41 5.3 24.2

Outstanding at March 29, 2025 342 232.27 6.8 $ 33.9

Exercisable at March 29, 2025 222 194.98 5.5 29.9

* Weighted-average

The weighted-average grant date fair value of stock-settled SARs granted during the nine month periods ended September 28, 2024, and September 30, 2023, was $ 52.12 and $ 48.85 , respectively.

The intrinsic value of stock-settled SARs exercised was $ 0.3 million and $ 1.7 million during the respective three and nine month periods ended September 28, 2024, and $ 0.2 million and $ 5.0 million during the respective three and nine periods ended September 30, 2023.

The fair value of stock-settled SARs vested was $ 2.3 million and $ 1.9 million during the respective nine month periods ended September 28, 2024, and September 30, 2023.

As of September 28, 2024, there was $ 4.2 million of unrecognized compensation cost related to non-vested stock-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.7 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the nine month periods ended September 28, 2024, and September 30, 2023, using the Black-Scholes valuation model;

no cash-settled SARs were granted during the three month periods ended September 28, 2024, and September 30, 2023:

Nine Months Ended

September 28, 2024 September 30, 2023

The weighted-average grant date fair value of stock-settled SARs granted during the respective three month periods ended March 29, 2025, and March 30, 2024, was $ 68.11 and $ 52.12 .

The intrinsic value of stock-settled SARs exercised was $ 2.0 million and $ 1.3 million during the respective three month periods ended March 29, 2025, and March 30, 2024.

The fair value of stock-settled SARs vested was $ 2.8 million and $ 2.3 million during the respective three month periods ended March 29, 2025, and March 30, 2024.

As of March 29, 2025, there was $ 6.7 million of unrecognized compensation cost related to non-vested stock-settled SARs that is expected to be recognized as a charge to earnings over a weighted-average period of 2.2 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the three month periods ended March 29, 2025, and March 30, 2024, using the Black-Scholes valuation model:

Three Months Ended

March 29, 2025 March 30, 2024

Expected term of cash-settled SARs (in years)

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Risk-free interest rate 3.98 % 4.21 %

The intrinsic value of cash-settled SARs exercised was zero for both the three and nine month periods ended September 28, 2024, and zero and $ 0.4 million for the respective three and nine month periods ended September 30, 2023.

The fair value of cash-settled SARs vested was $ 0.1 million for both the nine month periods ended September 28, 2024, and September 30, 2023.

Changes to the company’s non-vested cash-settled SARs during the nine months ended September 28, 2024, are as follows:

The intrinsic value of cash-settled SARs exercised was zero for both the three month periods ended March 29, 2025, and March 30, 2024.

The fair value of cash-settled SARs vested was $ 0.1 million for both the three month periods ended March 29, 2025, and March 30, 2024.

Changes to the company’s non-vested cash-settled SARs during the three months ended March 29, 2025, are as follows:

(in thousands)

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Vested ( 1 ) 97.58

Non-vested cash-settled SARs at September 28, 2024 2 63.90

Non-vested cash-settled SARs at March 29, 2025 2 72.81

* Weighted-average

As of September 28, 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 1.7 years.

As of March 29, 2025, 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.

SNAP-ON INCORPORATED

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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 nine month periods ended September 28, 2024, and September 30, 2023.

The company awarded 4,437 shares and 5,391 shares of restricted stock to non-employee directors for the respective three month periods ended March 29, 2025, and March 30, 2024.

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

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

There were 21,798 shares and 27,225 shares issued under this plan for the respective nine month periods ended September 28, 2024, and September 30, 2023.

As of September 28, 2024, 529,800 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 1.7 million.

There were no shares issued under this plan for both the three month periods ended March 29, 2025, and March 30, 2024.

As of March 29, 2025, 529,800 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 6.0 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 $ 0.1 million and $ 0.2 million for the respective three and nine month periods ended September 28, 2024, and zero and $ 1.0 million for the respective three and nine month periods ended September 30, 2023.

Compensation expense for plan participants was $ 0.3 million for both the three month periods ended March 29, 2025, and March 30, 2024.

Franchisee stock purchase plan:

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

There were 42,687 shares and 46,510 shares issued under this plan for the respective nine month periods ended September 28, 2024, and September 30, 2023.

As of September 28, 2024, 136,049 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 4.5 million.

There were no shares issued under this plan for both the three month periods ended March 29, 2025, and March 30, 2024.

As of March 29, 2025, 136,049 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 11.2 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 $ 0.1 million and $ 0.2 million for the respective three and nine month periods ended September 28, 2024, and zero and $ 1.6 million for the respective three and nine month periods ended September 30, 2023.

The company recognized mark-to-market expense of $ 0.2 million and $ 0.7 million for the respective three month periods ended March 29, 2025, and March 30, 2024.

Earnings Per Share

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

Three Months Ended Nine Months Ended

September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Months Ended

March 29, 2025 March 30, 2024

Weighted-average common shares outstanding 52,359,633 52,741,565

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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 September 28, 2024, and September 30, 2023, there were no awards outstanding that were anti-dilutive.

As of both March 29, 2025, and March 30, 2024, 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 calculates its accrual requirements based on historic warranty loss experience that is periodically adjusted for recent actual experience, including the timing of claims during the warranty period and actual costs incurred.

Snap-on’s product warranty accrual activity for the three and nine month periods ended September 28, 2024, and September 30, 2023, is as follows:

Three Months Ended Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Snap-on’s product warranty accrual activity for the three month periods ended March 29, 2025, and March 30, 2024, is as follows:

Three Months Ended

(Amounts in millions) March 29, 2025 March 30, 2024

Warranty reserve:

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

The accompanying Condensed Consolidated Statements of Earnings for the nine months ended September 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.

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

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 September 28, 2024, and December 30, 2023, is as follows:

(Amounts in millions) September 28,

Supplemental balance sheet information related to leases as of March 29, 2025, and December 28, 2024, is as follows:

(Amounts in millions) March 29,

2025 December 28, 2024

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

Three Months Ended Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Months Ended

(Amounts in millions) March 29, 2025 March 30, 2024

Interest income $ 13.9 $ 12.9

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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 September 28, 2024:

(Amounts in millions) Foreign

Translation Cash Flow

Hedges Defined

Postretirement

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

Other comprehensive income before reclassifications 79.0 — — 79.0

Amounts reclassified from Accumulated OCI — ( 0.4 ) 1.5 1.1

Net other comprehensive income (loss) 79.0 ( 0.4 ) 1.5 80.1

Balance as of September 28, 2024 $ ( 190.4 ) $ 4.5 $ ( 238.8 ) $ ( 424.7 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 28, 2024:

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended March 29, 2025:

(Amounts in millions) Foreign

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Net other comprehensive income (loss) 72.0 ( 0.4 ) 3.9 75.5

Balance as of September 28, 2024 $ ( 190.4 ) $ 4.5 $ ( 238.8 ) $ ( 424.7 )

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Below is a summary of net changes in Accumulated OCI by component and net of tax for the three months ended September 30, 2023:

(Amounts in millions) Foreign

Translation Cash Flow

Hedges Defined

Postretirement

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

Other comprehensive loss before reclassifications ( 52.3 ) — — ( 52.3 )

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

Net other comprehensive income (loss) ( 52.3 ) ( 0.4 ) 0.1 ( 52.6 )

Balance as of September 30, 2023 $ ( 306.5 ) $ 6.1 $ ( 262.9 ) $ ( 563.3 )

Below is a summary of net changes in Accumulated OCI by component and net of tax for the nine months ended September 30, 2023:

Balance as of March 29, 2025 $ ( 248.6 ) $ 3.6 $ ( 254.5 ) $ ( 499.5 )

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

(Amounts in millions) Foreign

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Net other comprehensive income (loss) ( 44.8 ) ( 0.4 ) 1.4 ( 43.8 )

Balance as of September 30, 2023 $ ( 306.5 ) $ 6.1 $ ( 262.9 ) $ ( 563.3 )

The reclassifications out of Accumulated OCI for the three and nine month periods ended September 28, 2024, and September 30, 2023, are as follows:

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

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The reclassifications out of Accumulated OCI for the three month periods ended March 29, 2025, and March 30, 2024, are as follows:

Amount Reclassified from Accumulated OCI

Three Months Ended Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Statement of Earnings

Three Months Ended

(Amounts in millions) March 29, 2025 March 30, 2024 Statement of Earnings

Gains on cash flow hedges:

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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.

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;

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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.

SNAP-ON INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Financial Data by Segment:

Three Months Ended Nine Months Ended

(Amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Commercial & Industrial Group $ 365.7 $ 366.4 $ 1,097.6 $ 1,094.4

Snap-on Tools Group 500.5 515.4 1,482.6 1,575.5

Repair Systems & Information Group 422.7 431.8 1,341.3 1,330.4

Three Months Ended March 29, 2025

Commercial & Snap-on Repair Systems

Industrial Tools & Information Financial Total

(Amounts in millions) Group Group Group Services Segments

External net sales $ 276.7 $ 462.9 $ 401.5 $ — $ 1,141.1

Intersegment net sales 67.2 — 74.4 — 141.6

Segment net sales 343.9 462.9 475.9 — 1,282.7

Segment cost of goods sold ( 197.4 ) ( 248.4 ) ( 258.4 ) — ( 704.2 )

Segment gross profit 146.5 214.5 217.5 — 578.5

Financial services revenue — — — 102.1 102.1

Segment operating and financial services expenses

Personnel ( 55.9 ) ( 48.4 ) ( 65.1 ) ( 8.8 )

Shipping and handling costs ( 7.5 ) ( 18.5 ) — —

Depreciation and amortization ( 1.8 ) ( 1.8 ) ( 4.5 ) ( 0.2 )

Provisions for credit losses — — — ( 19.1 )

Other segment expenses* ( 28.1 ) ( 53.4 ) ( 25.8 ) ( 3.7 )

Total segment operating and financial services expenses ( 93.3 ) ( 122.1 ) ( 95.4 ) ( 31.8 ) ( 342.6 )

Segment operating earnings $ 53.2 $ 92.4 $ 122.1 $ 70.3 $ 338.0

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

Segment net sales $ 1,282.7

Intersegment eliminations ( 141.6 )

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Total revenues $ 1,243.2

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

Segment cost of goods sold $ ( 704.2 )

Intersegment eliminations 141.6

Cost of goods sold $ ( 562.6 )

Reconciliation of segment operating earnings to operating earnings and earnings before income taxes:

Segment operating earnings $ 338.0

Corporate operating expenses ( 24.6 )

Operating earnings 313.4

Commercial & Industrial Group $ 61.0 $ 58.1 $ 178.6 $ 172.0

Snap-on Tools Group 108.3 113.4 340.4 382.8

Repair Systems & Information Group 107.3 104.9 333.8 319.9

Financial Services 71.7 69.4 210.2 202.6

Interest expense ( 12.4 )

Other income (expense) – net 14.4

Earnings before income taxes $ 315.4

* 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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Financial Data by Segment (continued):

Three Months Ended March 30, 2024

Commercial & Snap-on Repair Systems

Industrial Tools & Information Financial Total

(Amounts in millions) Group Group Group Services Segments

External net sales $ 291.0 $ 500.1 $ 391.2 $ — $ 1,182.3

Intersegment net sales 68.9 — 72.6 — 141.5

Segment net sales 359.9 500.1 463.8 — 1,323.8

Segment cost of goods sold ( 213.2 ) ( 259.0 ) ( 254.9 ) — ( 727.1 )

Segment gross profit 146.7 241.1 208.9 — 596.7

Financial services revenue — — — 99.6 99.6

Segment operating and financial services expenses

Personnel ( 55.1 ) ( 49.2 ) ( 64.2 ) ( 8.7 )

Shipping and handling costs ( 6.1 ) ( 22.6 ) — —

Depreciation and amortization ( 2.1 ) ( 1.9 ) ( 5.4 ) ( 0.3 )

Provisions for credit losses — — — ( 18.8 )

Other segment expenses* ( 28.0 ) ( 50.1 ) ( 26.4 ) ( 3.5 )

Total segment operating and financial services expenses ( 91.3 ) ( 123.8 ) ( 96.0 ) ( 31.3 ) ( 342.4 )

Segment operating earnings $ 55.4 $ 117.3 $ 112.9 $ 68.3 $ 353.9

Corporate ( 24.2 ) ( 31.2 ) ( 49.2 ) ( 92.7 )

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

Segment net sales $ 1,323.8

Intersegment eliminations ( 141.5 )

Total net sales 1,182.3

Financial services revenue 99.6

Total revenues $ 1,281.9

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

Segment cost of goods sold $ ( 727.1 )

Intersegment eliminations 141.5

Cost of goods sold $ ( 585.6 )

Reconciliation of segment operating earnings to operating earnings and earnings before income taxes:

Segment operating earnings $ 353.9

Corporate operating expenses ( 14.7 )

Operating earnings 339.2

2 unchanged sentences

Earnings before income taxes $ 344.8

* 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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Amounts in millions) September 28,

Financial Data by Segment (continued):

(Amounts in millions) March 29,

2025 December 28, 2024

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