What changed in this filing

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Item 9A. Controls and Procedures

2026-02-12 compared with 2025-02-13 · 278 added, 238 removed, 1977 unchanged (21% of the section changed)

2 unchanged sentences

Snap-on maintains a system of disclosure controls and procedures that is designed to provide reasonable assurance that material information relating to the company and its consolidated subsidiaries is timely communicated to the officers who certify Snap-on’s financial reports and to other members of senior management and the Board, as appropriate.

In accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), the company’s management evaluated, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of the company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 28, 2024.

Based upon their evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of December 28, 2024, to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission rules and forms, and to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Based upon their evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of January 3, 2026, to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission rules and forms, and to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control

There has been no change in the company’s internal control over financial reporting during the quarter ended December 28, 2024, that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f)).

There has been no change in the company’s internal control over financial reporting during the quarter ended January 3, 2026, that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f)).

Management’s Report on Internal Control over Financial Reporting

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Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our internal control over financial reporting based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework (2013) .

Based on this assessment, the company’s management believes that, as of December 28, 2024, our internal control over financial reporting was effective at a reasonable assurance level.

The company’s internal control over financial reporting as of December 28, 2024, has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in its attestation report, which is included herein.

Based on this assessment, the company’s management believes that, as of January 3, 2026, our internal control over financial reporting was effective at a reasonable assurance level.

The company’s internal control over financial reporting as of January 3, 2026, has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in its attestation report, which is included herein.

Our management, including the Chief Executive Officer and Chief Financial Officer, does not expect that our internal control over financial reporting will prevent all errors or fraud.

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Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Snap-on Incorporated and subsidiaries (the “Company”) as of December 28, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 28, 2024, of the Company and our report dated February 13, 2025, expressed an unqualified opinion on those financial statements.

We have audited the internal control over financial reporting of Snap-on Incorporated and subsidiaries (the “Company”) as of January 3, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 3, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended January 3, 2026, of the Company and our report dated February 12, 2026, expressed an unqualified opinion on those financial statements.

Basis for Opinion

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Executive Officer and Director Rule 10b5-1 Trading Arrangements

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 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

Rule 10b5-1 trading arrangement November 3, 2025 November 13, 2026 135,000 Exercises of vested stock options expiring in February 2027, 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 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

Rule 10b5-1 trading arrangement November 3, 2025 February 5, 2027 36,000 Exercises of vested stock options expiring in February 2027, 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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Information about our Executive Officers

Information regarding Snap-on’s executive officers, including their ages, business experience (for at least the last five years) and titles as of December 28, 2024, is presented below:

Information regarding Snap-on’s executive officers, including their ages, business experience (for at least the last five years) and titles as of January 3, 2026, is presented below:

Pinchuk (79) – Chairman of the Board of Directors since 2009, President and Chief Executive Officer since December 2007, and President and Chief Operating Officer during 2007.

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Arregui (60) – Senior Vice President and President – Commercial Group since 2019.

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

Vice President – Human Resources from 2018 to 2024.

Bauerschmidt (59) – Senior Vice President – Human Resources and Chief Development Officer since 2025, Senior Vice President – Human Resources since 2024, and Vice President – Human Resources from 2018 to 2024.

Iain Boyd (63) – Vice President – Operations Development since 2015.

9 unchanged sentences

Executive officers may either be elected by the Board or may be appointed by the Chief Executive Officer at the regular meeting of the Board that follows the Annual Shareholders’ Meeting, which is ordinarily held in April each year, or at such other times as new positions are created or vacancies must be filled.

SNAP-ON INCORPORATED

Code of Ethics and Website Disclosure

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Snap-on intends to satisfy the disclosure requirements under Item 10 of Form 8-K regarding amendments to, or waivers from, the code of ethics by posting such information in the “Investors” section of the company’s website at www.snapon.com .

SNAP-ON INCORPORATED

Executive Compensation

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Incorporated by reference to the sections entitled “Corporate Governance Practices and Board Information – Board Information” and “Other Information – Transactions with the Company” in Snap-on’s 2026 Proxy Statement.

2025 ANNUAL REPORT 57

Principal Accountant Fees and Services

Incorporated by reference to the section entitled “Deloitte & Touche LLP Fee Disclosure” in Snap-on’s 2026 Proxy Statement.

2024 ANNUAL REPORT 57

Exhibit and Financial Statement Schedules

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List of Financial Statements

Unless otherwise indicated, references to “fiscal 2024” or “2024” refer to the fiscal year ended December 28, 2024;

Unless otherwise indicated, references to “fiscal 2025” or “2025” refer to the fiscal year ended January 3, 2026;

references to “fiscal 2024” or “2024” refer to the fiscal year ended December 28, 2024;

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

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

References to 2025, 2024 and 2023 year end refer to January 3, 2026, December 28, 2024, and December 30, 2023, 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:

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All schedules are omitted because they are not applicable, or the required information is included in the consolidated financial statements or notes thereto.

SNAP-ON INCORPORATED

List of Exhibits (*)

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(e)(4) Description of 2050 Notes (incorporated by reference to Exhibit 4(f)(5) to Snap‑on’s Annual Report on Form 10‑K for the fiscal year ended January 2, 2021 (Commission File No.

SNAP-ON INCORPORATED

Except for the foregoing, Snap-on and its subsidiaries have no unregistered long-term debt agreement for which the related outstanding debt exceeds 10% of consolidated total assets as of December 28, 2024.

2025 ANNUAL REPORT 59

Copies of debt instruments for which the related debt is less than 10% of consolidated total assets will be furnished to the Commission upon request.

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

(e) Management Agreement, dated as of March 15, 2005, between SNA Europe and Jesus Arregui (incorporated by reference to Exhibit 10(e) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024 (Commission File No.

(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.

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(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

SNAP-ON INCORPORATED

(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.

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Form 10-K Summary

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 61

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Snap-on Incorporated and subsidiaries (the “Company”) as of December 28, 2024 and December 30, 2023, the related consolidated statements of earnings, comprehensive income, equity, and cash flows for each of the three years in the period ended December 28, 2024, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 28, 2024, and December 30, 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 28, 2024, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 13, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting.

We have audited the accompanying consolidated balance sheets of Snap-on Incorporated and subsidiaries (the “Company”) as of January 3, 2026, and December 28, 2024, the related consolidated statements of earnings, comprehensive income, equity, and cash flows for each of the three years in the period ended January 3, 2026, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of January 3, 2026, and December 28, 2024, and the results of its operations and its cash flows for each of the three years in the period ended January 3, 2026, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of January 3, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 12, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Basis for Opinion

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The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

2024 ANNUAL REPORT 61

SNAP-ON INCORPORATED

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

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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.

The Company estimates and records an allowance for credit losses over the remaining contractual life of their contracts considering collectability, historical loss experience, current conditions, and future market changes.

Evaluating the judgments related to the finance receivable allowance for credit losses is subjective and requires auditor judgment to effectively evaluate whether management’s judgments were reasonable.

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We have served as the Company’s auditor since 2002.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 63

Snap-on Incorporated – Consolidated Statements of Earnings

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See Notes to Consolidated Financial Statements.

2024 ANNUAL REPORT 63

SNAP-ON INCORPORATED

Snap-on Incorporated – Consolidated Statements of Comprehensive Income

(Amounts in millions) 2025 2024 2023

Comprehensive income (loss):

Comprehensive income:

Net earnings $ 1,042.3 $ 1,068.9 $ 1,034.6

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Net of tax 23.6 ( 21.1 ) 19.3

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

Amortization or settlement recognition of net unrecognized losses and net prior service costs included in net periodic benefit cost

Income tax benefit ( 5.3 ) ( 2.0 ) ( 0.1 )

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See Notes to Consolidated Financial Statements.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 65

Snap-on Incorporated – Consolidated Balance Sheets

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See Notes to Consolidated Financial Statements.

2024 ANNUAL REPORT 65

SNAP-ON INCORPORATED

Snap-on Incorporated – Consolidated Statements of Equity

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Interests Total

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

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— — 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

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— — 1,016.9 — — 25.4 1,042.3

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

Other comprehensive income — — — 220.2 — — 220.2

Cash dividends – $ 8.86 per share

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Other — — ( 1.5 ) — — ( 23.3 ) ( 24.8 )

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

Balance at January 3, 2026 $ 67.5 $ 578.5 $ 8,137.5 $ ( 354.8 ) $ ( 2,496.9 ) $ 25.0 $ 5,956.8

See Notes to Consolidated Financial Statements.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 67

Snap-on Incorporated – Consolidated Statements of Cash Flows

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Amortization of other intangible assets 22.7 25.3 27.1

Provision for losses on finance receivables 71.1 57.2 37.7

Provision for losses on non-finance receivables

Provisions for losses on finance receivables 72.9 71.1 57.2

Provisions for losses on non-finance receivables

21.3 22.8 19.2

Stock-based compensation expense 28.9 28.6 44.7

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

Deferred income tax provision (benefit) 2.5 ( 8.2 ) ( 18.7 )

Gain on sales of assets ( 16.0 ) ( 0.6 ) ( 1.0 )

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Inventories ( 44.1 ) 27.8 23.3

Prepaid expenses and other current assets 10.4 35.1 ( 6.3 )

Prepaid expenses and other assets 25.5 10.4 35.1

Accounts payable ( 42.7 ) 29.0 ( 48.1 )

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Effect of exchange rate changes on cash and cash equivalents 5.3 ( 4.6 ) ( 5.2 )

Increase (decrease) in cash and cash equivalents 359.0 244.3 ( 22.8 )

Increase in cash and cash equivalents 264.0 359.0 244.3

Cash and cash equivalents at beginning of year 1,360.5 1,001.5 757.2

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See Notes to Consolidated Financial Statements.

2024 ANNUAL REPORT 67

SNAP-ON INCORPORATED

Notes to Consolidated Financial Statements

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

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 2025 fiscal year ended on January 3, 2026 (“2025”), the 2024 fiscal year ended on December 28, 2024 (“2024”), and the 2023 fiscal year ended on December 30, 2023 (“2023”).

The 2025 fiscal year contained 53 weeks of operating results with the additional week occurring in the fourth quarter.

The impact of the additional week of operations was not material to Snap-on’s 2025 total revenues or net earnings.

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

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Research and engineering costs are included in “Operating expenses” on the accompanying Consolidated Statements of Earnings.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 69

Notes to Consolidated Financial Statements (continued)

Internally developed software:

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Amounts billed to customers for shipping and handling are included as a component of sales.

Costs incurred by Snap-on for shipping and handling are included as a component of cost of goods sold when the costs relate to manufacturing activities.

Costs incurred by Snap-on for shipping and handling are included as a component of cost of goods sold when the costs relate to manufacturing activities and when billed to customers as part of the sales transaction.

In 2025, 2024 and 2023, Snap-on incurred shipping and handling charges of $ 66.9 million, $ 65.5 million and $ 72.0 million, respectively, that were recorded in “Cost of goods sold” on the accompanying Consolidated Statements of Earnings.

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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.

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

Advertising and promotion:

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All other advertising and promotion costs are expensed when incurred.

For 2024, 2023 and 2022, advertising and promotion expenses totaled $ 47.5 million, $ 44.5 million and $ 39.3 million, respectively.

In 2025, 2024 and 2023, advertising and promotion expenses totaled $ 56.6 million, $ 47.5 million and $ 44.5 million, respectively.

Advertising and promotion costs are included in “Operating expenses” on the accompanying Consolidated Statements of Earnings.

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See Note 8 for additional information on income taxes.

2024 ANNUAL REPORT 69

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Per share data:

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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 28, 2024, December 30, 2023, and December 31, 2022 there were no awards outstanding that were anti-dilutive.

As of January 3, 2026, there were 510,982 awards outstanding that were anti-dilutive, and as of December 28, 2024, and December 30, 2023, 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 considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Cash and cash equivalents consisted of investments in money market funds and bank deposits at December 28, 2024 and December 30, 2023.

Cash and cash equivalents consisted of investments in money market funds and bank deposits at January 3, 2026, and December 28, 2024.

Receivables and allowances for credit losses:

All trade, finance and contract receivables are reported on the Consolidated Balance Sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses.

The amortized costs for finance and contract receivables is the amount originated adjusted for applicable accrued interest and net of deferred fees or costs, net of collections and write-offs.

The amortized cost for finance and contract receivables is the amount originated adjusted for applicable accrued interest and net of deferred fees or costs, net of collections and write-offs.

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, current conditions, 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 market expectations 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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For contract receivables, Snap-on primarily uses a Weighted-Average Remaining Maturity (“WARM”) methodology.

Determination of the proper amount of allowances by portfolio requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings.

The allowances take into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, delinquency trends, collection experience, current conditions, supportable forecasts, when appropriate, and credit risk characteristics.

1 unchanged sentence

These factors may include the customer’s financial condition, past payment experience, and credit bureau and proprietary Snap-on credit model information, as well as the value of the underlying collateral.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 71

Notes to Consolidated Financial Statements (continued)

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

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

For both finance and contract receivables, write-offs include the uncollectable principal amount of the receivable as well as the uncollectable accrued interest and fees, net of repossessions.

For both finance and contract receivables, write-offs include the uncollectable principal amount of the receivable as well as the uncollectable accrued interest, net of repossessions.

For finance receivables only, write-offs are partially offset by recourse from franchisees.

Recovered interest and fees previously written off are recorded through the allowances for credit losses and increase the allowances.

Recovered interest previously written off are recorded through the allowances for credit losses and increase the allowances.

Absent a repossession, finance receivables are generally written off when an account becomes 120 days past due.

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Should actual product marketability and raw material fitness for use be affected by conditions that are different from management estimates, further adjustments to inventory allowances may be required.

2024 ANNUAL REPORT 71

Notes to Consolidated Financial Statements (continued)

Snap-on adopted the “last-in, first-out” (“LIFO”) inventory valuation method in 1973 for its U.S.

5 unchanged sentences

See Note 5 for additional information on inventories.

SNAP-ON INCORPORATED

Property and equipment:

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New accounting standards:

Snap-on adopted ASU No.

2023-07, Segment Reporting (Topic 280):

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 2025, Snap-on adopted ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

The ASU was applied on a retrospective basis.

The adoption of this ASU resulted in enhanced disclosures, including comparative effective income tax rate and income taxes paid information for all years presented, but otherwise had no impact on the company’s Consolidated Financial Statements.

See Note 8 for additional information on income taxes.

In 2025, Snap-on also adopted ASU No.

2025-05, Financial Instruments-Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets , which allows entities to elect a practical expedient that assumes that the current conditions as of the balance sheet date do not change for the remaining life of the asset for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606.

The guidance was adopted on a prospective basis.

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

See Note 4 for additional information on receivables.

In September 2025, the FASB issued ASU No.

2025-06, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software , which removes all references to software development project stages so that the guidance is neutral to different software development methods.

Therefore, under the ASU, software capitalization will begin when management has authorized and committed to funding the software project and when it is probable that the project will be completed and the software will be used to perform the function intended.

2025-06 is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods.

The guidance is to be applied on a prospective basis, or on a modified transition approach or a retrospective transition approach;

this ASU allows for early adoption.

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

In November 2024, the FASB issued ASU No.

4 unchanged sentences

this ASU allows for early adoption.

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

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

2023-09 is effective for annual periods beginning after December 15, 2024.

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 Consolidated Financial Statements.

The adoption of this ASU is being evaluated by the company and is not expected to have a material impact on Snap-on’s Consolidated Financial Statements.

Revenue Recognition

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

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 73

Notes to Consolidated Financial Statements (continued)

Revenue disaggregation

6 unchanged sentences

Total revenues $ 5,156.1 $ 5,108.4 $ 5,108.3

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.

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.

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

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

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

Commercial & Snap-on Repair Systems

21 unchanged sentences

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

2024 ANNUAL REPORT 73

Notes to Consolidated Financial Statements (continued)

The following table represents external net sales disaggregated by customer type:

SNAP-ON INCORPORATED

Commercial & Snap-on Repair Systems

1 unchanged sentence

(Amounts in millions) Group Group Group Services Eliminations Incorporated

North America* $ 580.5 $ 1,839.2 $ 1,146.5 $ — $ — $ 3,566.2

Europe 295.7 149.7 243.5 — — 688.9

All other 269.4 99.9 105.8 — — 475.1

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

Intersegment net sales 312.7 — 285.4 — ( 598.1 ) —

Total net sales 1,458.3 2,088.8 1,781.2 — ( 598.1 ) 4,730.2

Financial services revenue — — — 378.1 — 378.1

Total revenue $ 1,458.3 $ 2,088.8 $ 1,781.2 $ 378.1 $ ( 598.1 ) $ 5,108.3

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

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

Commercial & Snap-on Repair Systems

Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

Vehicle service professionals $ 81.0 $ 1,964.9 $ 1,592.6 $ — $ — $ 3,638.5

15 unchanged sentences

Total revenue $ 1,476.8 $ 1,989.2 $ 1,797.9 $ 401.0 $ ( 556.5 ) $ 5,108.4

2025 ANNUAL REPORT 75

Notes to Consolidated Financial Statements (continued)

Commercial & Snap-on Repair Systems

Industrial Tools & Information Financial Snap-on

(Amounts in millions) Group Group Group Services Eliminations Incorporated

Vehicle service professionals $ 82.5 $ 2,088.8 $ 1,495.8 $ — $ — $ 3,667.1

All other professionals 1,063.1 — — — — 1,063.1

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

Intersegment net sales 312.7 — 285.4 — ( 598.1 ) —

Total net sales 1,458.3 2,088.8 1,781.2 — ( 598.1 ) 4,730.2

Financial services revenue — — — 378.1 — 378.1

Total revenue $ 1,458.3 $ 2,088.8 $ 1,781.2 $ 378.1 $ ( 598.1 ) $ 5,108.3

Nature of goods and services:

13 unchanged sentences

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

SNAP-ON INCORPORATED

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:

2 unchanged sentences

and (iii) contracts with variable consideration related to unsatisfied performance obligations.

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

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

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

Snap-on had $ 221.3 million of long-term contracts that have fixed consideration that extends beyond one year as of January 3, 2026.

Snap-on expects to recognize approximately 70 % of these contracts as revenue by the end of fiscal 2027, an additional 25 % by the end of fiscal 2029 and the balance thereafter.

6 unchanged sentences

Snap-on considers control to have transferred upon shipment or delivery when Snap-on has a present right to payment, the customer has legal title to the asset, Snap-on has transferred physical possession of the asset, and the customer has significant risk and rewards of ownership of the asset.

SNAP-ON INCORPORATED

For performance obligations related to software subscriptions, extended warranties and other subscription agreements, Snap-on transfers control and recognizes revenue over time on a ratable basis using a time-based output method.

2 unchanged sentences

For ship-and-bill type contracts with customers, the contract states the final terms of the sale, including the description, quantity, and price of each product or service purchased.

Payment terms are typically due upon delivery or up to 30 days after delivery but can range up to 120 days after delivery.

Payment terms are typically 30 to 120 days after delivery.

For subscription contracts, payment terms are in advance or in arrears of services on a monthly, quarterly or annual basis over the contract term, which is generally for 12 months but can be for a term up to 60 months depending on the product or service.

9 unchanged sentences

Estimated product returns are recorded as a reduction in reported revenues at the time of sale based upon historical product return experience and is adjusted for known trends to arrive at the amount of consideration that Snap-on expects to receive.

Variable consideration is estimated at the most likely amount that is expected to be earned.

Variable consideration is estimated at the amount that is expected to be earned.

Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

6 unchanged sentences

Snap-on does not typically provide customers with the right to a refund.

2024 ANNUAL REPORT 75

Notes to Consolidated Financial Statements (continued)

Contract liabilities:

1 unchanged sentence

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

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

The balance of total contract liabilities was $ 73.5 million at January 3, 2026, and $ 63.8 million at December 28, 2024.

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.

3 unchanged sentences

Franchise fee revenue in 2025, 2024 and 2023 totaled $ 21.2 million, $ 19.4 million and $ 18.7 million, respectively.

2025 ANNUAL REPORT 77

Notes to Consolidated Financial Statements (continued)

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

18 unchanged sentences

Total trade and other accounts receivable – net $ 881.4 $ 815.6

SNAP-ON INCORPORATED

The following is a rollforward of the allowances for credit losses related to trade and other accounts receivable for 2025 and 2024:

2 unchanged sentences

Beginning of year $ 37.1 $ 34.9

Provision for credit losses

Provisions for credit losses 18.3 20.2

( 16.3 ) ( 16.8 )

7 unchanged sentences

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

SNAP-ON INCORPORATED

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

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

2024 ANNUAL REPORT 77

Notes to Consolidated Financial Statements (continued)

The components of Snap-on’s current finance and contract receivables as of 2025 and 2024 year end are as follows:

19 unchanged sentences

Total current finance and contract receivables – net $ 720.2 $ 730.3

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 79

Notes to Consolidated Financial Statements (continued)

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

19 unchanged sentences

Total long-term finance and contract receivables – net $ 1,721.9 $ 1,730.3

2024 ANNUAL REPORT 79

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Long-term finance and contract receivables installments, net of unearned finance charges, as of 2025 and 2024 year end are scheduled as follows:

35 unchanged sentences

Contract receivables charge-offs $ — $ 0.3 $ 1.2 $ 0.9 $ 0.3 $ 0.5 $ 3.2

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 81

Notes to Consolidated Financial Statements (continued)

Allowances for credit losses:

3 unchanged sentences

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

For both finance and contract receivables, write-offs include the uncollectable principal amount of the receivable as well as the uncollectable accrued interest and fees, net of repossessions.

For both finance and contract receivables, write-offs include the uncollectable principal amount of the receivable as well as the uncollectable accrued interest, net of repossessions.

For finance receivables only, write-offs are partially offset by recourse from franchisees.

Recovered interest and fees previously written off are recorded through the allowances for credit losses and increase the allowances.

Recovered principal and interest previously written off are recorded through the allowances for credit losses and increase the allowances.

Absent a repossession, finance receivables are typically written off when an account reaches 120 days past due.

23 unchanged sentences

Beginning of year $ 72.4 $ 6.8 $ 67.8 $ 6.7

Provision for credit losses 71.1 2.6 57.2 1.9

Provisions for credit losses 72.9 3.0 71.1 2.6

Charge-offs ( 82.9 ) ( 3.2 ) ( 75.6 ) ( 3.0 )

2 unchanged sentences

End of year $ 73.5 $ 7.3 $ 72.4 $ 6.8

2024 ANNUAL REPORT 81

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

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

35 unchanged sentences

Contract receivables 2.6 2.5

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 83

Notes to Consolidated Financial Statements (continued)

Inventories by major classification as of 2025 and 2024 year end are as follows:

11 unchanged sentences

inventory was accounted for using the FIFO method and 60 % was accounted for using the last-in, first-out (“LIFO”) method.

There were no LIFO inventory liquidations in 2024, 2023 or 2022.

The liquidation of LIFO inventory did not have a significant impact on our results of operations in any period presented.

Property and Equipment

11 unchanged sentences

Depreciation expense was $ 75.8 million, $ 72.7 million and $ 72.2 million in 2025, 2024 and 2023, respectively.

2024 ANNUAL REPORT 83

Notes to Consolidated Financial Statements (continued)

In the fourth quarter of 2025, as part of footprint actions in the Commercial & Industrial Group, Snap-on entered into an agreement with a local government to sell a building in response to that government’s larger rezoning activities, resulting in a gain, net of related expenses, of $ 15.9 million during the period.

The company also anticipates an incremental net benefit in 2026 upon completion of the provisions outlined in the agreement.

The net gain is recorded within “Operating expenses” in the accompanying Consolidated Statements of Earnings for the year ended January 3, 2026.

SNAP-ON INCORPORATED

Goodwill and Other Intangible Assets

10 unchanged sentences

Currency translation 33.8 — 18.9 52.7

Acquisition adjustments ( 13.2 ) — — ( 13.2 )

Balance as of 2025 year end $ 349.4 $ 12.4 $ 747.7 $ 1,109.5

1 unchanged sentence

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.

See Note 3 for additional information on acquisitions.

14 unchanged sentences

Total other intangible assets $ 504.6 $ ( 233.9 ) $ 270.7 $ 488.2 $ ( 220.6 ) $ 267.6

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 2025, Snap-on retired $ 8.4 million of customer relationships, $ 1.6 million of internally developed software and $ 0.7 million of developed technology that were fully amortized and had reached the end of their useful lives.

Snap-on also retired $ 8.9 million of non-amortized trademarks and $ 5.5 million of land-use rights with a net carrying value of $ 2.9 million related to a building that was sold.

See Note 6 for additional information on property and equipment.

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.

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.

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 2025 year end, the company had no accumulated impairment losses.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 85

Notes to Consolidated Financial Statements (continued)

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

22 unchanged sentences

Total income tax provision $ 293.6 $ 304.2 $ 293.4

2024 ANNUAL REPORT 85

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

The following is a reconciliation of the statutory federal income tax rate to Snap-on’s effective tax rate:

2025 2024 2023

Earnings before income tax expense $ 1,335.9 $ 1,373.1 $ 1,328.0

Statutory federal income tax rate $ 280.5 21.0 % $ 288.4 21.0 % $ 278.9 21.0 %

Increase (decrease) in tax rate resulting from:

State income taxes, net of federal benefit* 35.6 2.7 33.3 2.4 29.7 2.2

Noncontrolling interests ( 0.4 ) ( 0.4 ) ( 0.4 )

Repatriation of foreign earnings ( 0.2 ) ( 0.3 ) ( 0.3 )

Change in valuation allowance for deferred tax assets 0.2 0.2 0.3

Adjustments to tax accruals and reserves ( 0.1 ) ( 0.6 ) ( 0.7 )

Foreign rate differences 0.6 0.7 0.4

Excess tax benefits related to equity compensation ( 0.8 ) ( 0.8 ) ( 0.5 )

Other ( 0.6 ) ( 0.3 ) ( 0.5 )

Foreign tax effects 8.7 0.6 9.8 0.7 10.8 0.8

Effects of cross-border tax laws ( 12.6 ) ( 0.9 ) ( 11.1 ) ( 0.8 ) ( 11.9 ) ( 0.9 )

Tax credits ( 7.8 ) ( 0.6 ) ( 2.9 ) ( 0.2 ) ( 4.3 ) ( 0.3 )

Nontaxable or nondeductible items ( 10.8 ) ( 0.8 ) ( 13.3 ) ( 0.9 ) ( 9.8 ) ( 0.7 )

Effective tax rate $ 293.6 22.0 % $ 304.2 22.2 % $ 293.4 22.1 %

* State taxes in California, Illinois, Michigan, New Jersey, New York, Pennsylvania and Wisconsin comprised greater than 50% of the tax effect in this category.

Snap-on’s effective income tax rate on earnings attributable to Snap-on Incorporated was 22.4 % in 2025, 22.6 % in 2024, and 22.5 % in 2023.

Income taxes paid, net of refunds are as follows:

(Amounts in millions) 2025 2024 2023

Federal* $ 225.7 $ 207.8 $ 209.5

State and local 45.4 49.6 36.5

United Kingdom** — — 16.5

Other 55.9 48.3 38.4

Total foreign 55.9 48.3 54.9

Total income taxes paid, net $ 327.0 $ 305.7 $ 300.9

* Includes amounts paid to purchase transferable clean energy tax credits during 2025.

** The amount of income taxes paid does not meet the 5% jurisdictional disaggregation threshold for 2025 and 2024.

Temporary differences that give rise to the net deferred income tax asset (liability) as of 2025, 2024 and 2023 year end are as follows:

13 unchanged sentences

Net deferred income tax asset (liability) $ ( 14.5 ) $ 4.5 $ ( 3.2 )

2025 ANNUAL REPORT 87

Notes to Consolidated Financial Statements (continued)

As of 2025 year end, Snap-on had tax net operating loss carryforwards totaling $ 164.9 million as follows:

5 unchanged sentences

2041-2045 — — 21.0 21.0

2045-2049 — — — —

Indefinite — — 58.5 58.5

Total net operating loss carryforwards $ — $ — $ 164.9 $ 164.9

SNAP-ON INCORPORATED

A valuation allowance totaling $ 22.6 million, $ 23.9 million and $ 27.2 million as of 2025, 2024 and 2023 year end, respectively, has been established for deferred income tax assets primarily related to certain subsidiary loss carryforwards that may not be realized.

12 unchanged sentences

The unrecognized tax benefits of $ 7.4 million, $ 6.6 million and $ 7.5 million as of 2025, 2024 and 2023 year end, respectively, would impact the effective income tax rate if recognized.

As of December 28, 2024, unrecognized tax benefits of $ 1.1 million and $ 5.5 million were included in “Deferred income tax assets” and “Other long-term liabilities,” respectively, on the accompanying Consolidated Balance Sheets.

As of January 3, 2026, unrecognized tax benefits of $ 1.3 million and $ 6.1 million were included in “Deferred income tax assets” and “Other long-term liabilities,” respectively, on the accompanying Consolidated Balance Sheets.

Interest and penalties related to unrecognized tax benefits are recorded in income tax expense.

As of 2025, 2024 and 2023 year end, the company had provided for $ 1.9 million, $ 1.2 million and $ 1.2 million, respectively, of accrued interest and penalties related to unrecognized tax benefits.

As of December 28, 2024, $ 1.2 million of accrued interest and penalties were included in “Other long-term liabilities” on the accompanying Consolidated Balance Sheets.

As of January 3, 2026, $ 1.9 million of accrued interest and penalties were included in “Other long-term liabilities” on the accompanying Consolidated Balance Sheets.

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

It is reasonably possible that certain unrecognized tax benefits may either be settled with taxing authorities or the statutes of limitations for such items may lapse within the next 12 months, causing Snap-on’s gross unrecognized tax benefits to decrease by a range of zero to $ 0.6 million.

Over the next 12 months, Snap-on anticipates taking certain tax positions on various tax returns for which the related tax benefit does not meet the recognition threshold.

Accordingly, Snap-on’s gross unrecognized tax benefits may increase by a range of zero to $ 0.9 million over the next 12 months for uncertain tax positions expected to be taken in future tax filings.

Accordingly, Snap-on’s gross unrecognized tax benefits may increase over the next 12 months for uncertain tax positions expected to be taken in future tax filings.

With few exceptions, Snap-on is no longer subject to U.S.

10 unchanged sentences

subsidiaries and has recorded a deferred tax liability of $ 3.7 million for the incremental tax costs associated with the future potential repatriation of such earnings.

2024 ANNUAL REPORT 87

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Short-term and Long-term Debt

6 unchanged sentences

Other debt* 2.6 ( 0.8 )

1,199.2 1,200.2

Total debt 1,202.6 1,199.2

notes payable ( 16.2 ) ( 13.7 )

1 unchanged sentence

* Includes unamortized debt issuance costs and issuance discounts.

Snap-on’s long-term debt and notes payable maturities in the next five years include a $ 300.0 million note that matures in 2027.

Snap-on’s long-term debt and notes payable maturities in the next five years include a $ 300.0 million note that matures on March 1, 2027.

Average notes payable outstanding were $ 18.0 million and $ 14.9 million in 2025 and 2024, respectively.

The 2025 weighted-average interest rate on such borrowings of 13.4 % compared with 10.4 % in 2024.

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

At 2025 year end, the weighted-average interest rate on outstanding notes payable of 15.6 % compared with 9.5 % in 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 the Credit Facility during the years ended and as of December 28, 2024 or December 30, 2023.

No amounts were borrowed or outstanding under the Credit Facility during the years ended and as of January 3, 2026, or December 28, 2024.

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

4 unchanged sentences

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

As of 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.

As of January 3, 2026, the company’s consolidated cash balance, net of certain adjustments, exceeded consolidated debt resulting in actual ratios of ( 0.05 ) and ( 0.21 ), 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.

There was no commercial paper issued or outstanding during the years ended and as of December 28, 2024 or December 30, 2023.

There was no commercial paper issued or outstanding during the years ended and as of January 3, 2026, or December 28, 2024.

Financial Instruments

3 unchanged sentences

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

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 89

Notes to Consolidated Financial Statements (continued)

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

17 unchanged sentences

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

As of 2025 year end, Snap-on had $ 153.2 million of net foreign currency forward buy contracts outstanding comprised of buy contracts including $ 161.2 million in British pounds, $ 34.5 million in euros, $ 31.6 million in Swedish kronor, $ 23.6 million in Australian dollars, $ 23.0 million in Chinese renminbi, $ 20.5 million in Hong Kong dollars, $ 19.0 million in Singapore dollars, $ 10.0 million in Mexican pesos, and $ 20.1 million in other currencies, and sell contracts including $ 171.3 million in Canadian dollars, $ 10.0 million in Indian rupees, and $ 9.0 million in other currencies.

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.

Interest rate risk management:

12 unchanged sentences

There were no treasury locks outstanding as of both 2025 and 2024 year end.

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

2024 ANNUAL REPORT 89

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Stock-based deferred compensation risk management:

19 unchanged sentences

Derivatives not designated as hedging instruments:

Foreign currency forwards Prepaid expenses and other current assets $ 12.3 $ — $ 17.9 $ —

Foreign currency forwards Prepaid expenses and

other current assets $ 7.5 $ — $ 12.3 $ —

Foreign currency forwards Other accrued liabilities — 9.6 — 21.3

Equity forwards Prepaid expenses and other current assets 23.4 — 19.9 —

Equity forwards Prepaid expenses and

other current assets 25.6 — 23.4 —

Total derivative instruments $ 33.1 $ 9.6 $ 35.7 $ 21.3

4 unchanged sentences

The company did not have any derivative assets or liabilities measured at Level 1 or Level 3, nor did it implement any changes in its valuation techniques in 2025 and 2024, respectively.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 91

Notes to Consolidated Financial Statements (continued)

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

23 unchanged sentences

Operating expenses 0.7 ( 4.5 ) ( 4.5 )

2024 ANNUAL REPORT 91

Notes to Consolidated Financial Statements (continued)

Snap-on’s foreign currency forwards are typically not designated as hedges for financial reporting purposes.

11 unchanged sentences

1,202.6 967.8 1,199.2 944.2

SNAP-ON INCORPORATED

The following methods and assumptions are used in estimating the fair value of financial instruments:

4 unchanged sentences

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

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

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

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

1 unchanged sentence

• 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

Pension Plans

11 unchanged sentences

Plan participant contributions 0.3 0.3

Plan settlements ( 0.5 ) —

Benefits paid ( 93.9 ) ( 84.1 )

7 unchanged sentences

Plan participant contributions 0.3 0.3

Plan settlements ( 0.5 ) —

Benefits paid ( 93.9 ) ( 84.1 )

2 unchanged sentences

Funded status at end of year $ 81.8 $ 37.9

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.

The increase in the defined benefit pension plans benefit obligations in 2025 was primarily due to a decrease in the discount rate in 2025 as compared to 2024.

2025 ANNUAL REPORT 93

Notes to Consolidated Financial Statements (continued)

Amounts recognized in the Consolidated Balance Sheets as of 2025 and 2024 year end are as follows:

11 unchanged sentences

Total amount included in Accumulated OCI $ ( 223.9 ) $ ( 264.5 )

2024 ANNUAL REPORT 93

Notes to Consolidated Financial Statements (continued)

The accumulated benefit obligation for Snap-on’s pension plans as of 2025 and 2024 year end was $ 1,238.5 million and $ 1,219.5 million, respectively.

15 unchanged sentences

Amortization of prior service cost 0.1 0.1 0.1

Settlement loss 0.1 — —

Net periodic benefit cost (credit) $ 16.9 $ ( 6.9 ) $ ( 19.0 )

3 unchanged sentences

Total recognized in OCI $ ( 40.6 ) $ 14.9 $ ( 19.9 )

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

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

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

SNAP-ON INCORPORATED

The worldwide weighted-average assumptions used to determine Snap-on’s full-year pension costs are as follows:

10 unchanged sentences

cash balance plan 3.8 % 3.8 %

SNAP-ON INCORPORATED

The objective of Snap-on’s discount rate assumption is to reflect the rate at which the pension benefits could be effectively settled.

13 unchanged sentences

Depending on market and other conditions, Snap-on may make discretionary cash contributions to its pension plans in 2026.

2025 ANNUAL REPORT 95

Notes to Consolidated Financial Statements (continued)

The following benefit payments, which reflect expected future service, are expected to be paid as follows:

5 unchanged sentences

As of 2025 year end, Snap-on’s domestic pension plans’ assets comprised approximately 86 % of the company’s worldwide pension plan assets.

The basis for determining the overall expected long-term return on plan assets assumption is a nominal returns forecasting method.

For each asset class, future returns are estimated by identifying the premium of riskier asset classes over lower risk alternatives.

The methodology constructs expected returns using a “building block” approach to the individual components of total return.

These forecasts are stated in both nominal and real (after inflation) terms.

This process first considers the long-term historical return premium based on the longest set of data available for each asset class.

These premiums, which are calculated using the geometric mean, are then adjusted based on current relative valuation levels, macro-economic conditions, and the expected alpha related to active investment management.

The asset return assumption is also adjusted by an implicit expense load for estimated administrative and investment-related expenses.

2024 ANNUAL REPORT 95

Notes to Consolidated Financial Statements (continued)

For risk and correlation assumptions, the actual experience for each asset class is reviewed for the longest time period available.

Expected relationships for a 10 to 20 year time horizon are determined based upon historical results, with adjustments made for material changes.

The process for determining the overall expected long-term return on plan assets begins by establishing long-term assumptions for core economic variables such as GDP growth and inflation, and long-term assumptions for market variables such as interest rates, credit spreads, earnings growth, and equity valuations.

When developing these variables, economic relationships and market histories are applied to a forecast of future conditions.

In addition to this valuation component, the total return calculation also factors in fundamentals such as coupons, dividend yields and earnings growth, among others by each respective asset class.

The asset return assumption is also adjusted by any expected outperformance related to active investment management and an implicit expense load for estimated administrative and investment-related expenses.

Risk and correlation assumptions are developed based on historical analysis as well as an assessment of future conditions.

Investments are diversified to attempt to minimize the risk of large losses.

16 unchanged sentences

Insurance contracts are valued at the present value of the estimated future cash flows promised under the terms of the insurance contracts and are categorized as Level 2 in the fair value hierarchy.

SNAP-ON INCORPORATED

Commingled equity securities and commingled multi-strategy funds are valued at the Net Asset Value (“NAV”) per share or unit multiplied by the number of shares or units held as of the measurement date, as reported by the fund managers.

9 unchanged sentences

The fair value amounts presented in these tables are intended to permit a reconciliation of the fair value hierarchy to the pension plan assets.

SNAP-ON INCORPORATED

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of Snap-on’s domestic pension plans’ assets as of 2025 year end:

19 unchanged sentences

Total $ 289.5 $ 355.1 $ 526.9 $ 1,171.5

2025 ANNUAL REPORT 97

Notes to Consolidated Financial Statements (continued)

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of Snap-on’s domestic pension plans’ assets as of 2024 year end:

6 unchanged sentences

71.9 — — 71.9

47.9 — — 47.9

Commingled funds – domestic

13 unchanged sentences

The company believes the foreign pension plans’ assets, which are managed locally by professional investment firms, are well diversified.

2024 ANNUAL REPORT 97

Notes to Consolidated Financial Statements (continued)

The expected long-term rates of return on foreign plans’ assets, which range fro m 2.2 % to 6.7 % as of 2025 year end, reflect management’s expectations of long-term average rates of return on funds invested to provide benefits included in the plans’ projected benefit obligation.

11 unchanged sentences

* Includes commingled funds - multi-strategy

SNAP-ON INCORPORATED

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of Snap-on’s foreign pension plans’ assets as of 2025 year end:

24 unchanged sentences

Total $ 20.6 $ 45.4 $ 115.8 $ 181.8

SNAP-ON INCORPORATED

Snap-on has several 401(k) plans covering certain U.S.

Snap-on’s employer match to the 401(k) plans is made with cash contributions.

For 2024, 2023 and 2022, Snap-on recognized $ 12.4 million, $ 12.3 million and $ 11.8 million, respectively, of expense related to its 401(k) plans.

In 2025, 2024 and 2023, Snap-on recognized expense of $ 12.6 million, $ 12.4 million and $ 12.3 million, respectively, related to its 401(k) plans.

Postretirement Plans

5 unchanged sentences

all other retiree health care plans are unfunded.

2025 ANNUAL REPORT 99

Notes to Consolidated Financial Statements (continued)

The status of Snap-on’s U.S.

6 unchanged sentences

Benefits paid ( 3.8 ) ( 3.6 )

Actuarial gain ( 0.6 ) ( 0.3 )

Actuarial (gain) loss 1.0 ( 0.6 )

Benefit obligation at end of year 32.5 33.5

15 unchanged sentences

Net gain, net of tax of $ 1.7 million and $ 2.0 million, respectively

2024 ANNUAL REPORT 99

Notes to Consolidated Financial Statements (continued)

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

6 unchanged sentences

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

Net (gain) loss $ 0.1 $ 0.2 $ ( 4.1 )

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

Net loss $ 1.0 $ 0.1 $ 0.2

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

SNAP-ON INCORPORATED

The weighted-average discount rate used to determine Snap-on’s postretirement health care expense is as follows:

9 unchanged sentences

2031-2035 14.6

SNAP-ON INCORPORATED

The objective of the VEBA trust is to achieve net of expense returns that meet or exceed the 5.8 % long-term return on plan assets assumption used for reporting purposes.

1 unchanged sentence

Since asset allocation is a key determinant of expected investment returns, assets are periodically rebalanced to the targeted allocation to correct significant deviations from the asset allocation policy that are caused by market fluctuations and cash flow.

The basis for determining the overall expected long-term return on plan assets assumption is a nominal returns forecasting method.

For each asset class, future returns are estimated by identifying the premium of riskier asset classes over lower risk alternatives.

The methodology constructs expected returns using a “building block” approach to the individual components of total return.

These forecasts are stated in both nominal and real (after inflation) terms.

This process first considers the long-term historical return premium based on the longest set of data available for each asset class.

These premiums, which are calculated using the geometric mean, are then adjusted based on current relative valuation levels and macro-economic conditions.

The asset return assumption is also adjusted by an implicit expense load for estimated administrative and investment-related expenses.

When developing these variables, economic relationships and market histories are applied to a forecast of future conditions.

In addition to this valuation component, the total return calculation also factors in fundamentals such as coupons, dividend yields and earnings growth, among others by each respective asset class.

Risk and correlation assumptions are developed based on historical analysis as well as an assessment of future conditions.

2025 ANNUAL REPORT 101

Notes to Consolidated Financial Statements (continued)

Snap-on’s VEBA plan target allocation and actual weighted-average asset allocation by asset category and fair value of plan assets as of 2025 and 2024 year end are as follows:

20 unchanged sentences

The fair value amounts presented in these tables are intended to permit a reconciliation of the fair value hierarchy to the VEBA plan assets.

2024 ANNUAL REPORT 101

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of the VEBA plan assets as of 2025 year end:

32 unchanged sentences

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

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 103

Notes to Consolidated Financial Statements (continued)

The following weighted-average assumptions were used in calculating the fair value of stock options granted during 2025, 2024 and 2023, using the Black-Scholes valuation model:

19 unchanged sentences

The fair value of stock options vested was $ 10.4 million in 2025, $ 9.5 million in 2024 and $ 9.1 million in 2023.

As of 2024 year end, there was $ 13.0 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 1.4 years.

As of 2025 year end, there was $ 14.4 million of unrecognized compensation cost related to non-vested stock options, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.4 years.

Performance share units:

9 unchanged sentences

PSUs related to 62,171 shares, 137,096 shares and 60,402 shares were paid out in 2025, 2024 and 2023, respectively.

2024 ANNUAL REPORT 103

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Changes to the company’s non-vested PSUs in 2025 are as follows:

8 unchanged sentences

** 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.

As of 2025 year end, there was $ 12.8 million of unrecognized compensation cost related to non-vested PSUs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.5 years.

Restricted stock units:

12 unchanged sentences

* Weighted-average

As of 2024 year end, there was $ 6.4 million of unrecognized compensation cost related to non-vested RSUs that is expected to be recognized as a charge to earnings over a weighted-average period of 1.1 years.

As of 2025 year end, there was $ 6.6 million of unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.0 year.

Stock appreciation rights:

6 unchanged sentences

Cash-settled SARs have no effect on dilutive shares or shares outstanding as any appreciation of Snap-on’s common stock over the grant price is paid in cash and not in common stock.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 105

Notes to Consolidated Financial Statements (continued)

The fair value of stock-settled SARs is estimated on the date of grant using the Black-Scholes valuation model.

27 unchanged sentences

The fair value of stock-settled SARs vested was $ 2.8 million in 2025, $ 2.3 million in 2024 and $ 1.9 million in 2023.

As of 2024 year end, there was $ 3.5 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 1.4 years.

As of 2025 year end, there was $ 3.8 million of unrecognized compensation cost related to non-vested stock-settled SARs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.5 years.

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during 2025, 2024 and 2023, using the Black-Scholes valuation model:

5 unchanged sentences

Risk-free interest rate 3.55 % 4.36 % 4.01 %

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

The intrinsic value of cash-settled SARs exercised was zero in both 2025 and 2024, and $ 0.4 million in 2023.

The fair value of cash-settled SARs vested during 2025, 2024 and 2023 was $ 0.1 million, $ 0.2 million and $ 0.1 million, respectively.

2024 ANNUAL REPORT 105

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Changes to the company’s non-vested cash-settled SARs in 2025 are as follows:

5 unchanged sentences

* Weighted-average

As of 2024 year end, there was $ 0.3 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 1.5 years.

As of 2025 year end, there was $ 0.2 million of unrecognized compensation cost related to non-vested cash-settled SARs, which is expected to be recognized as a charge to earnings over a weighted-average period of 1.4 years.

Restricted stock awards – non-employee directors:

6 unchanged sentences

Directors may elect to defer receipt of all or part of these shares.

For 2024, 2023 and 2022, issuances under the Directors’ Fee Plan totaled 441 shares, 449 shares and 621 shares, respectively, of which 184 shares, 176 shares and 309 shares, respectively, were deferred.

In 2025, 2024 and 2023, issuances under the Directors’ Fee Plan totaled 424 shares, 441 shares and 449 shares, respectively, of which 193 shares, 184 shares and 176 shares, respectively, were deferred.

As of 2025 year end, shares reserved for issuance to directors under this plan totaled 194,416 shares.

3 unchanged sentences

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

For 2024, 2023 and 2022, issuances under this plan totaled 21,798 shares, 27,225 shares and 18,452 shares, respectively.

In 2025, 2024 and 2023, issuances under this plan totaled 24,680 shares, 21,798 shares and 27,225 shares, respectively.

As of 2025 year end, 505,119 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 3.5 million.

5 unchanged sentences

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

For 2024, 2023 and 2022, issuances under this plan totaled 42,687 shares, 46,510 shares and 44,937 shares, respectively.

In 2025, 2024 and 2023, issuances under this plan totaled 43,518 shares, 42,687 shares and 46,510 shares, respectively.

As of 2025 year end, 92,531 shares were reserved for issuance under this plan and Snap-on held participant contributions of approximately $ 8.1 million.

6 unchanged sentences

The purchase of Snap-on common stock is at the company’s discretion, subject to prevailing financial and market conditions.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 107

Notes to Consolidated Financial Statements (continued)

Cash dividends paid in 2025, 2024 and 2023 totaled $ 462.2 million, $ 406.4 million and $ 355.6 million, respectively.

12 unchanged sentences

Approximately 2,300 employees, or 18 % of Snap-on’s worldwide workforce, are represented by unions and/or covered under collective bargaining agreements.

The number of covered union employees whose contracts expire over the next five years approximates 1,650 employees in 2025, 450 employees in 2026, and 200 employees in 2027;

there are no contracts currently scheduled to expire in 2028 or 2029.

The number of covered union employees whose contracts expire over the next five years approximates 600 employees in 2026, 800 employees in 2027, 150 employees in 2028, and 50 employees in 2029;

there are no contracts currently scheduled to expire in 2030.

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

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.

The accompanying Consolidated Statements of Earnings for the year ended January 3, 2026, include a benefit in “Operating expenses” of $ 22.0 million for the settlement of a legal matter (the “2025 legal settlement”).

In addition, the accompanying Consolidated Statement of Earnings for the year ended December 28, 2024, include a benefit in “Operating expenses” of $ 22.5 million, for the final payments received associated with a separate legal matter (the “2024 legal payments”).

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.

14 unchanged sentences

Lease expense for lease payments is recognized on a straight-line basis over the lease term.

SNAP-ON INCORPORATED

Snap-on has lease agreements with lease and non-lease components, which are generally accounted for separately.

For all equipment leases, including vehicles, Snap-on accounts for the lease and non-lease components as a single lease component.

2024 ANNUAL REPORT 107

Notes to Consolidated Financial Statements (continued)

Total lease costs for 2025, 2024 and 2023 consist of the following:

19 unchanged sentences

Property and equipment – gross

$ 17.0 $ 19.1

Accumulated depreciation ( 1.0 ) ( 15.5 )

8 unchanged sentences

Total operating lease liabilities $ 89.3 $ 93.6

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 109

Notes to Consolidated Financial Statements (continued)

Weighted-average lease terms and discount rates in 2025 and 2024 are as follows:

6 unchanged sentences

Operating leases 4.0 % 3.6 % 4.0 %

Maturities of lease liabilities as of December 28, 2024, are as follows:

Maturities of lease liabilities as of January 3, 2026, are as follows:

(Amounts in millions) Operating Leases Finance Leases

2 unchanged sentences

2028 17.0 0.3

2028 12.8 0.2

2031 and thereafter 10.6 —

2 unchanged sentences

Total lease liabilities $ 89.3 $ 1.4

In 2024, Snap-on did not have any significant additional operating or finance leases that have not yet commenced.

In 2025, Snap-on did not have any significant additional operating or finance leases that had not yet commenced.

Lessor accounting:

9 unchanged sentences

In 2025 and 2024, finance receivables have future minimum lease payments, including unguaranteed residual value, of $ 78.3 million and $ 53.4 million, respectively, and unearned finance charges of $ 17.6 million and $ 12.2 million, respectively.

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 2025 and 2024, contract receivables have future minimum lease payments, including unguaranteed residual value, of $ 314.7 million and $ 318.6 million, respectively, and unearned finance charges of $ 56.1 million and $ 58.2 million, respectively.

2024 ANNUAL REPORT 109

Notes to Consolidated Financial Statements (continued)

Future minimum lease payments as of December 28, 2024 are as follows:

SNAP-ON INCORPORATED

Future minimum lease payments as of January 3, 2026, are as follows:

(Amounts in millions) Lease Receivables

19 unchanged sentences

Balance at beginning of 2024 $ ( 211.8 ) $ 5.7 $ ( 243.4 ) $ ( 449.5 )

Other comprehensive income before reclassifications 60.7 — 19.3 80.0

Amounts reclassified from Accumulated OCI — ( 1.6 ) 0.4 ( 1.2 )

Net other comprehensive income (loss) 60.7 ( 1.6 ) 19.7 78.8

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 )

2 unchanged sentences

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

SNAP-ON INCORPORATED

Other comprehensive income before reclassifications 182.3 — 23.6 205.9

Amounts reclassified from Accumulated OCI — ( 1.7 ) 16.0 14.3

Net other comprehensive income (loss) 182.3 ( 1.7 ) 39.6 220.2

Balance as of 2025 year end $ ( 138.3 ) $ 2.3 $ ( 218.8 ) $ ( 354.8 )

2025 ANNUAL REPORT 111

Notes to Consolidated Financial Statements (continued)

The reclassifications out of Accumulated OCI in 2025 and 2024 are as follows:

6 unchanged sentences

Net of tax 1.7 1.7

Amortization of net unrecognized losses and prior service credits

Amortization or settlement recognition of net unrecognized losses and net prior service costs

( 21.3 ) ( 8.1 ) See footnote below*

15 unchanged sentences

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.

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.

6 unchanged sentences

Snap-on does not have any single customer or government that represents 10% or more of its revenues in any of the indicated periods.

2024 ANNUAL REPORT 111

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Financial Data by Segment:

37 unchanged sentences

technology, travel and marketing expenses.

Also included are a $ 15.9 million net benefit related to the sale of a building, partially offset by an $ 8.9 million charge for the retirement of trademarks and $ 2.5 million of restructuring costs (collectively the “2025 footprint actions”), resulting in a net benefit of $ 4.5 million.

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.

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

shared service allocations and a $ 22.0 million benefit for the 2025 legal settlement.

Financial Services - customer support and technology expenses.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 113

Notes to Consolidated Financial Statements (continued)

Financial Data by Segment (continued):

10 unchanged sentences

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

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

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

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

28 unchanged sentences

Financial Services - customer support and technology expenses.

2024 ANNUAL REPORT 113

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Financial Data by Segment (continued):

41 unchanged sentences

Financial Services - customer support and technology expenses.

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 115

Notes to Consolidated Financial Statements (continued)

Financial Data by Segment (continued):

37 unchanged sentences

** Long-lived assets consist of Property and equipment – net and Operating lease right-of-use assets.

2024 ANNUAL REPORT 115

Notes to Consolidated Financial Statements (continued)

SNAP-ON INCORPORATED

Products and Services:

16 unchanged sentences

Total revenues $ 5,156.1 $ 5,108.4 $ 5,108.3

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 117

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Snap-on has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

19 unchanged sentences

Vice President and Controller

2024 ANNUAL REPORT 117

SNAP-ON INCORPORATED

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of Snap-on and in the capacities and on the date indicated.

28 unchanged sentences

Stebbins, Director

SNAP-ON INCORPORATED

2025 ANNUAL REPORT 119

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