Note 17: Segments

Snap-on’s business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance. Snap-on’s reportable business segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services. The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, primarily through direct and distributor channels. The Snap-on Tools Group consists of business operations primarily serving automotive service technicians through the company’s worldwide mobile tool distribution channel. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and original equipment manufacturer (“OEM”) dealership service and repair shops, through direct and distributor channels. Financial Services consists of the business operations of Snap-on’s finance subsidiaries.

Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Corporate assets consist of cash and cash equivalents (excluding cash held at Financial Services), deferred income taxes and certain other assets. All significant intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.

Financial data by segment was as follows:


	Three Months Ended				Six Months Ended
(Amounts in millions)	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
Net sales:
Commercial & Industrial Group	$	266.2	$	283.4	$	532.6	$	569.9
Snap-on Tools Group		346.2		325.0		673.5		641.6
Repair Systems & Information Group		246.2		227.4		492.3		453.5

Segment net sales		858.6		835.8		1,698.4		1,665.0
Intersegment eliminations		(94.5)		(97.9)		(192.6)		(191.9)

Total net sales	$	764.1	$	737.9	$	1,505.8	$	1,473.1
Financial Services revenue		44.5		39.9		88.5		77.9

Total revenues	$	808.6	$	777.8	$	1,594.3	$	1,551.0

Operating earnings:
Commercial & Industrial Group	$	33.6	$	32.8	$	64.2	$	62.0
Snap-on Tools Group		54.5		44.5		101.7		90.6
Repair Systems & Information Group		56.7		52.2		113.2		100.8
Financial Services		30.6		25.6		61.1		49.5

Segment operating earnings		175.4		155.1		340.2		302.9
Corporate		(27.0)		(24.9)		(53.5)		(51.3)

Operating earnings	$	148.4	$	130.2	$	286.7	$	251.6
Interest expense		(13.8)		(13.9)		(27.4)		(27.8)
Other income (expense) – net		(1.7)		0.1		(2.3)		(0.3)

Earnings before income taxes and equity earnings	$	132.9	$	116.4	$	257.0	$	223.5


(Amounts in millions)					June 29, 2013		December 29, 2012
Assets:
Commercial & Industrial Group					$	942.2	$	935.2
Snap-on Tools Group						542.3		537.7
Repair Systems & Information Group						967.6		927.7
Financial Services						1,138.4		1,076.3

Total assets from reportable segments					$	3,590.5	$	3,476.9
Corporate						426.4		477.7
Elimination of intersegment receivables						(55.4)		(52.3)

Total assets					$	3,961.5	$	3,902.3