Property and Equipment

12 Months Ended

Dec. 29, 2012

Note 5: Property and Equipment

Snap-on’s property and equipment values (which are carried at cost) as of 2012 and 2011 year end are as follows:


(Amounts in millions)	2012		2011
Land	$	19.4	$	19.8
Buildings and improvements		286.2		274.9
Machinery, equipment and computer software		684.6		632.3

Property and equipment – gross		990.2		927.0
Accumulated depreciation and amortization		(615.0)		(574.1)

Property and equipment – net	$	375.2	$	352.9

The estimated service lives of property and equipment are principally as follows:


Buildings and improvements		3 to 50 years
Machinery, equipment and computer software		2 to 15 years

The cost and accumulated depreciation of property and equipment under capital leases as of 2012 and 2011 year end are as follows:


(Amounts in millions)	2012		2011
Buildings and improvements	$	27.4	$	30.0
Machinery, equipment and computer software		1.6		1.6
Accumulated depreciation		(11.3)		(10.6)

Net book value	$	17.7	$	21.0

Depreciation expense was $50.2 million, $49.3 million and $48.7 million in 2012, 2011 and 2010, respectively.

During the fourth quarter of 2012, Snap-on committed to a plan to sell its former Newmarket, Canada, tool storage manufacturing facility; this facility was closed as a result of the 2011 consolidation of the company’s North American tool storage operations. The Newmarket facility, which is part of the Snap-on Tools Group segment, has been designated as held for sale and is expected to sell in 2013. The facility’s $7.2 million net book value, which consists of land and building, has been reclassified to “Prepaid expenses and other assets” as of December 29, 2012, on the accompanying Consolidated Balance Sheets. The company does not expect to incur a loss on the sale of this facility.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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