Exit and Disposal Activities

3 Months Ended

Apr. 04, 2015

Restructuring and Related Activities [Abstract]

Note 6: Exit and Disposal Activities

Snap-on did not record any costs for exit and disposal activities in the three month period ended April 4, 2015; Snap-on recorded costs for exit and disposal activities in the three month period ended March 29, 2014, as follows:


	Three Months Ended
(Amounts in millions)	April 4, 2015		March 29, 2014
Exit and disposal costs:
Cost of goods sold:
Repair Systems & Information Group	$	–	$	2.0

Total exit and disposal costs	$	–	$	2.0

The $2.0 million of costs incurred during the three month period ended March 29, 2014, qualified for accrual treatment.

Snap-on’s exit and disposal accrual activity for the first quarter of 2015 is as follows:


(Amounts in millions)	Balance at January 3, 2015		Provision		Usage		Balance at April 4, 2015
Severance costs:
Commercial & Industrial Group	$	0.8	$	–	$	(0.3)	$	0.5
Repair Systems & Information Group		5.7		–		(0.4)		5.3

Total	$	6.5	$	–	$	(0.7)	$	5.8

The majority of the exit and disposal accrual as of April 4, 2015, is expected to be utilized in 2015.

Snap-on expects to fund the remaining cash requirements of its exit and disposal activities with available cash on hand, cash flows from operations and borrowings under the company’s existing credit facilities. The estimated costs for the exit and disposal activities were based on management’s best business judgment under prevailing circumstances.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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