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 vehicle service and repair 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 (“OEM dealerships”), 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						Nine Months Ended
	September 27,			September 28,			September 27,			September 28,
(Amounts in millions)	2014			2013			2014			2013
Net sales:
Commercial & Industrial Group	$	298.8		$	275.2		$	876.6		$	807.8
Snap-on Tools Group		355.0			333.8			1,067.7			1,007.3
Repair Systems & Information Group		271.2			252.7			812.4			745.0

Segment net sales		925.0			861.7			2,756.7			2,560.1
Intersegment eliminations		(118.7	)		(108.5	)		(336.4	)		(301.1	)

Total net sales	$	806.3		$	753.2		$	2,420.3		$	2,259.0
Financial Services revenue		53.6			45.1			155.5			133.6

Total revenues	$	859.9		$	798.3		$	2,575.8		$	2,392.6

Operating earnings:
Commercial & Industrial Group	$	40.8		$	36.0		$	118.1		$	100.2
Snap-on Tools Group		49.5			41.9			159.2			143.6
Repair Systems & Information Group		63.3			57.9			186.0			171.1
Financial Services		37.7			31.6			106.9			92.7

Segment operating earnings		191.3			167.4			570.2			507.6
Corporate		(23.0	)		(24.5	)		(72.9	)		(78.0	)

Operating earnings	$	168.3		$	142.9		$	497.3		$	429.6
Interest expense		(12.7	)		(14.4	)		(39.1	)		(41.8	)
Other income (expense) – net		(0.9	)		(0.8	)		(0.7	)		(3.1	)

Earnings before income taxes and equity earnings	$	154.7		$	127.7		$	457.5		$	384.7


	September 27,			December 28,
(Amounts in millions)	2014			2013
Assets:
Commercial & Industrial Group	$	989.9		$	971.0
Snap-on Tools Group		616.9			557.3
Repair Systems & Information Group		1,030.1			979.6
Financial Services		1,348.5			1,224.0

Total assets from reportable segments	$	3,985.4		$	3,731.9
Corporate		330.2			431.8
Elimination of intersegment receivables		(47.1	)		(53.7	)

Total assets	$	4,268.5		$	4,110.0