XML 77 R11.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Receivables | 9 Months Ended
--- | ---
Sep. 27, 2014
Receivables [Abstract] |
Receivables | Note 3: Receivables Trade and Other Accounts Receivable Snap-on’s trade and other accounts receivable primarily arise from the sale of tools and diagnostic and equipment products to a broad range of industrial and commercial customers and to Snap-on’s independent franchise van channel on a non-extended-term basis with payment terms generally ranging from 30 to 120 days. The components of Snap-on’s trade and other accounts receivable as of September 27, 2014, and December 28, 2013, are as follows:
|  | September 27, |  |  | December 28, |
(Amounts in millions) |  | 2014 |  |  | 2013 |
Trade and other accounts receivable |  | $ | 590.0 |  |  | $ | 546.5 |
Allowances for doubtful accounts |  |  | (15.6 | ) |  |  | (14.9 | )
Total trade and other accounts receivable – net |  | $ | 574.4 |  |  | $ | 531.6 |
Finance and Contract Receivables Snap-on Credit LLC (“SOC”), the company’s financial services operation in the United States, originates extended-term finance and contract receivables on sales of Snap-on products through the U.S. franchisee and customer network and to Snap-on’s industrial and other customers; Snap-on’s foreign finance subsidiaries provide similar financing internationally. Interest income on finance and contract receivables is included in “Financial services revenue” on the accompanying Condensed Consolidated Statements of Earnings. Snap-on’s finance receivables are comprised of extended-term installment payment contracts to both technicians and independent shop owners (i.e., franchisees’ customers) to enable them to purchase tools and diagnostic and equipment products on an extended-term payment plan, generally with expected average payment terms of approximately three years. Contract receivables, with payment terms of up to 10 years, are comprised of extended-term installment payment contracts to a broad base of industrial and other customers worldwide, including shop owners, both independents and national chains, for their purchase of tools and diagnostic and equipment products. Contract receivables also include extended-term installment loans 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. Finance and contract receivables are generally secured by the underlying tools and/or diagnostic or equipment products financed and, for installment loans to franchisees, other franchisee assets. During both the nine months ended September 27, 2014, and the fiscal year ended December 28, 2013, Snap-on did not have any significant purchases or sales of finance or contract receivables. The components of Snap-on’s current finance and contract receivables as of September 27, 2014, and December 28, 2013, are as follows:
|  | September 27, |  |  | December 28, |
(Amounts in millions) |  | 2014 |  |  | 2013 |
Finance receivables, net of unearned finance charges of $16.1 million and $14.1 million, respectively |  | $ | 419.1 |  |  | $ | 385.3 |
Contract receivables, net of unearned finance charges of $14.0 million and $13.0 million, respectively |  |  | 77.5 |  |  |  | 69.6 |
Total |  |  | 496.6 |  |  |  | 454.9 |
Allowances for doubtful accounts: |  |  |  |  |  |  |  |
Finance receivables |  |  | (11.8 | ) |  |  | (10.7 | )
Contract receivables |  |  | (1.3 | ) |  |  | (1.2 | )
Total |  |  | (13.1 | ) |  |  | (11.9 | )
Total current finance and contract receivables – net |  | $ | 483.5 |  |  | $ | 443.0 |
Finance receivables – net |  | $ | 407.3 |  |  | $ | 374.6 |
Contract receivables – net |  |  | 76.2 |  |  |  | 68.4 |
Total current finance and contract receivables – net |  | $ | 483.5 |  |  | $ | 443.0 |
The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of September 27, 2014, and December 28, 2013, are as follows:
|  | September 27, |  |  | December 28, |
(Amounts in millions) |  | 2014 |  |  | 2013 |
Finance receivables, net of unearned finance charges of $10.0 million and $8.9 million, respectively |  | $ | 648.6 |  |  | $ | 577.7 |
Contract receivables, net of unearned finance charges of $18.5 million and $17.3 million, respectively |  |  | 240.3 |  |  |  | 219.2 |
Total |  |  | 888.9 |  |  |  | 796.9 |
Allowances for doubtful accounts: |  |  |  |  |  |  |  |
Finance receivables |  |  | (19.5 | ) |  |  | (17.1 | )
Contract receivables |  |  | (2.6 | ) |  |  | (2.1 | )
Total |  |  | (22.1 | ) |  |  | (19.2 | )
Total long-term finance and contract receivables – net |  | $ | 866.8 |  |  | $ | 777.7 |
Finance receivables – net |  | $ | 629.1 |  |  | $ | 560.6 |
Contract receivables – net |  |  | 237.7 |  |  |  | 217.1 |
Total long-term finance and contract receivables – net |  | $ | 866.8 |  |  | $ | 777.7 |
Delinquency is the primary indicator of credit quality for finance and contract receivables. Receivable balances are considered delinquent when contractual payments become 30 days past due. Finance receivables are generally placed on nonaccrual status (nonaccrual of interest and other fees) (i) when a customer is placed on repossession status; (ii) upon receipt of notification of bankruptcy; (iii) upon notification of the death of a customer; or (iv) in other instances in which management concludes collectability is not reasonably assured. Finance receivables that are considered nonperforming include receivables that are on nonaccrual status and receivables that are generally more than 90 days past due. Contract receivables are generally placed on nonaccrual status (i) when a receivable is more than 90 days past due or at the point a customer’s account is placed on terminated status regardless of its delinquency status; (ii) upon notification of the death of a customer; or (iii) in other instances in which management concludes collectability is not reasonably assured. Contract receivables that are considered nonperforming include receivables that are on nonaccrual status. The accrual of interest and other fees is resumed when the finance or contract receivable becomes contractually current and collection of all remaining contractual amounts due is reasonably assured. Finance and contract receivables are evaluated for impairment on a collective basis. A receivable is impaired when it is probable that all amounts related to the receivable will not be collected according to the contractual terms of the applicable agreement. Impaired receivables are covered by the company’s finance and contract allowances for doubtful accounts reserves and are charged-off against the reserves when appropriate. As of September 27, 2014, and December 28, 2013, there were $15.5 million and $15.2 million, respectively, of impaired finance receivables, and there were $1.3 million and $1.0 million, respectively, of impaired contract receivables. It is the general practice of Snap-on’s financial services business to not engage in contract or loan modifications. In limited instances, Snap-on’s financial services business may modify certain impaired receivables in troubled debt restructurings. The amount and number of restructured finance and contract receivables as of September 27, 2014, and December 28, 2013, were immaterial to both the financial services portfolio and the company’s results of operations and financial position. The aging of finance and contract receivables as of September 27, 2014, and December 28, 2013, is as follows:
(Amounts in millions) |  | 30-59 Days Past Due |  |  | 60-90 Days Past Due |  |  | Greater Than 90 Days Past Due |  |  | Total Past Due |  |  | Total Not Past Due |  |  | Total |  |  | Greater Than 90 Days Past Due and Accruing |
September 27, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance receivables |  | $ | 9.6 |  |  | $ | 5.9 |  |  | $ | 9.9 |  |  | $ | 25.4 |  |  | $ | 1,042.3 |  |  | $ | 1,067.7 |  |  | $ | 7.2 |
Contract receivables |  |  | 1.3 |  |  |  | 0.5 |  |  |  | 0.6 |  |  |  | 2.4 |  |  |  | 315.4 |  |  |  | 317.8 |  |  |  | 0.2 |
December 28, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance receivables |  | $ | 9.3 |  |  | $ | 5.7 |  |  | $ | 9.6 |  |  | $ | 24.6 |  |  | $ | 938.4 |  |  | $ | 963.0 |  |  | $ | 7.0 |
Contract receivables |  |  | 1.2 |  |  |  | 0.8 |  |  |  | 0.7 |  |  |  | 2.7 |  |  |  | 286.1 |  |  |  | 288.8 |  |  |  | 0.1 |
The amount of performing and nonperforming finance and contract receivables based on payment activity as of September 27, 2014, and December 28, 2013, is as follows:
|  | September 27, 2014 |  |  | December 28, 2013 |
(Amounts in millions) |  | Finance Receivables |  |  | Contract Receivables |  |  | Finance Receivables |  |  | Contract Receivables |
Performing |  | $ | 1,052.2 |  |  | $ | 316.5 |  |  | $ | 947.8 |  |  | $ | 287.8 |
Nonperforming |  |  | 15.5 |  |  |  | 1.3 |  |  |  | 15.2 |  |  |  | 1.0 |
Total |  | $ | 1,067.7 |  |  | $ | 317.8 |  |  | $ | 963.0 |  |  | $ | 288.8 |
The amount of finance and contract receivables on nonaccrual status as of September 27, 2014, and December 28, 2013, is as follows:
|  | September 27, |  |  | December 28, |
(Amounts in millions) |  | 2014 |  |  | 2013 |
Finance receivables |  | $ | 8.5 |  |  | $ | 8.3 |
Contract receivables |  |  | 1.3 |  |  |  | 1.0 |
The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and nine month periods ended September 27, 2014:
|  | Three Months Ended September 27, 2014 |  |  | Nine Months Ended September 27, 2014 |
(Amounts in millions) |  | Finance Receivables |  |  | Contract Receivables |  |  | Finance Receivables |  |  | Contract Receivables |
Allowances for doubtful accounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of period |  | $ | 30.4 |  |  | $ | 3.8 |  |  | $ | 27.8 |  |  | $ | 3.3 |
Provision for bad debt expense |  |  | 6.4 |  |  |  | 0.5 |  |  |  | 19.8 |  |  |  | 1.8 |
Charge-offs |  |  | (6.6 | ) |  |  | (0.5 | ) |  |  | (20.1 | ) |  |  | (1.5 | )
Recoveries |  |  | 1.2 |  |  |  | 0.1 |  |  |  | 3.8 |  |  |  | 0.3 |
Currency translation |  |  | (0.1 | ) |  |  | — |  |  |  | — |  |  |  | — |
End of period |  | $ | 31.3 |  |  | $ | 3.9 |  |  | $ | 31.3 |  |  | $ | 3.9 |
The following is a rollforward of the allowances for credit losses for finance and contract receivables for the three and nine month periods ended September 28, 2013:
|  | Three Months Ended September 28, 2013 |  |  | Nine Months Ended September 28, 2013 |
(Amounts in millions) |  | Finance Receivables |  |  | Contract Receivables |  |  | Finance Receivables |  |  | Contract Receivables |
Allowances for doubtful accounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of period |  | $ | 26.6 |  |  | $ | 3.5 |  |  | $ | 26.5 |  |  | $ | 3.2 |
Provision for bad debt expense |  |  | 5.5 |  |  |  | 0.2 |  |  |  | 15.0 |  |  |  | 1.7 |
Charge-offs |  |  | (5.5 | ) |  |  | (0.4 | ) |  |  | (17.1 | ) |  |  | (1.6 | )
Recoveries |  |  | 1.1 |  |  |  | 0.1 |  |  |  | 3.4 |  |  |  | 0.2 |
Currency translation |  |  | — |  |  |  | — |  |  |  | (0.1 | ) |  |  | (0.1 | )
End of period |  | $ | 27.7 |  |  | $ | 3.4 |  |  | $ | 27.7 |  |  | $ | 3.4 |

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e5074-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e5066-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e5162-111524 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration