Short-term and Long-term Debt

9 Months Ended

Sep. 28, 2013

Note 8: Short-term and Long-term Debt

Short-term and long-term debt as of September 28, 2013, and December 29, 2012, consisted of the following:


	September 28,			December 29,
(Amounts in millions)	2013			2012
5.85% unsecured notes due March 2014	$	100.0		$	100.0
5.50% unsecured notes due 2017		150.0			150.0
4.25% unsecured notes due 2018		250.0			250.0
6.70% unsecured notes due 2019		200.0			200.0
6.125% unsecured notes due 2021		250.0			250.0
Other debt*		28.8			25.6

		978.8			975.6
Less: notes payable and current maturities of long-term debt		(117.7	)		(5.2	)

Total long-term debt	$	861.1		$	970.4

*	Includes fair value adjustments related to interest rate swaps.

Notes payable and current maturities of long-term debt of $117.7 million as of September 28, 2013, includes $100.0 million of 5.85% unsecured notes that mature on March 1, 2014 (the “2014 Notes”), and $17.7 million of other notes. As of 2012 year end, the 2014 Notes were included in “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets as their scheduled maturity was in excess of one year of the December 29, 2012 year-end balance sheet date. Notes payable as of 2012 year end totaled $5.2 million.

On September 27, 2013, Snap-on amended and restated its $500 million multi-currency revolving credit facility that was set to terminate on December 8, 2016, by entering into a five-year, $700 million multi-currency revolving credit facility that terminates on September 27, 2018 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of September 28, 2013. Borrowings under the Credit Facility bear interest at varying rates based on Snap-on’s then-current, long-term debt ratings. The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of consolidated net debt (consolidated debt net of certain cash adjustments) to the sum of such consolidated net debt plus total equity and less accumulated other comprehensive income or loss; or (ii) a ratio not greater than 3.50 to 1.00 of such consolidated net debt to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended. As of September 28, 2013, the company’s actual ratios of 0.31 and 1.41, respectively, were both within the permitted ranges set forth in this financial covenant.

Snap-on’s previous 364-day loan and servicing agreement, which allowed Snap-on to borrow up to $200 million (subject to borrowing base requirements) through the pledging of finance receivables under an asset-backed commercial paper conduit facility, expired at the end of its term on September 27, 2013, and was not renewed. At the time of its expiration, no amounts were outstanding under the loan and servicing agreement.

Snap-on’s Credit Facility and other debt agreements also contain certain usual and customary borrowing, affirmative, negative and maintenance covenants. As of September 28, 2013, Snap-on was in compliance with all covenants of its Credit Facility and debt agreements.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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