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Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Earnings Before Income Taxes And Equity Earnings

(Amounts in millions)		2012				2011				2010
United States		$	365.2			$	335.5			$	204.5
Foreign			95.0				77.4				72.9
Total		$	460.2			$	412.9			$	277.4

Components Of Income Tax

The provision (benefit) for income taxes consisted of the following:

(Amounts in millions)		2012				2011				2010
Current:
Federal		$	80.3			$	88.4			$	74.8
Foreign			26.1				26.0				22.8
State			12.5				14.2				8.0
Total current			118.9				128.6				105.6
Deferred:
Federal			32.7				8.4				(13.8)
Foreign			(8.2)				(0.8)				(2.2)
State			4.8				(2.5)				(2.0)
Total deferred			29.3				5.1				(18.0)
Total income tax provision		$	148.2			$	133.7			$	87.6

Reconciliation Of Statutory Federal Income Tax Rate

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

			2012	2011				2010
Statutory federal income tax rate			35.0%				35.0%				35.0%
Increase (decrease) in tax rate resulting from:
State income taxes, net of federal benefit			2.5				2.7				2.5
Noncontrolling interests			(0.6)				(0.6)				(0.7)
Repatriation of foreign earnings			(1.3)				(1.9)				(1.7)
Change in valuation allowance for deferred tax assets			1.0				(0.1)				0.5
Adjustments to tax accruals and reserves			(1.7)				0.2				(1.7)
Foreign rate differences			(1.5)				(1.6)				(2.0)
Domestic production activities deduction			(1.6)				(0.1)				(0.1)
Other			0.4				(1.2)				(0.2)
Effective tax rate			32.2%				32.4%				31.6%

Schedule Of Deferred Tax Assets And Liabilities

(Amounts in millions)		2012				2011				2010
Current deferred income tax assets (liabilities):
Inventories		$	25.0			$	24.2			$	21.2
Accruals not currently deductible			60.4				73.4				67.5
Valuation allowance			(3.7)				(5.6)				(3.2)
Total current (included in deferred income tax assets and other accrued liabilities)			81.7				92.0				85.5
Long-term deferred income tax assets (liabilities):
Employee benefits			108.1				133.9				109.2
Net operating losses			59.2				52.2				46.9
Depreciation and amortization			(161.4)				(150.4)				(126.0)
SOC securitizations			0.4				(1.4)				(6.8)
Valuation allowance			(40.2)				(34.8)				(36.9)
Equity-based compensation			17.1				14.8				9.2
Other			–				2.8				1.5
Total long term			(16.8)				17.1				(2.9)
Net deferred income tax asset		$	64.9			$	109.1			$	82.6

Operating Loss Carry Forwards

(Amounts in millions)		State				United States				Foreign				Total
Year of expiration:
2013 – 2017		$	–			$	–			$	29.6			$	29.6
2018 – 2022			0.1				–				0.2				0.3
2023 – 2027			3.6				–				45.1				48.7
2028 – 2032			128.9				–				–				128.9
Indefinite			–				–				105.7				105.7
Total net operating loss carryforwards		$	132.6			$	–			$	180.6			$	313.2

Reconciliation Of Unrecognized Tax Benefits

(Amounts in millions)		2012				2011				2010
Unrecognized tax benefits at beginning of year		$	11.0			$	11.1			$	17.5
Gross increases – tax positions in prior periods			0.7				0.5				0.6
Gross decreases – tax positions in prior periods			(4.9)				(0.4)				(0.4)
Gross increases – tax positions in the current period			1.2				2.8				3.1
Settlements with taxing authorities			–				(1.2)				(9.5)
Increase related to acquired business			–				–				0.4
Lapsing of statutes of limitations			(1.2)				(1.8)				(0.6)
Unrecognized tax benefits at end of year		$	6.8			$	11.0			$	11.1

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