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Exit and Disposal Activities
 9 Months Ended
Oct. 03, 2015
Restructuring and Related Activities [Abstract]  
Exit and Disposal Activities

Note 6: Exit and Disposal Activities

Snap-on did not record any costs for exit and disposal activities in the three and nine month periods ended October 3, 2015; in the three and nine month periods ended September 27, 2014, Snap-on recorded costs for exit and disposal activities as follows:

 

     Three Months
Ended		      Nine Months
Ended		  
(Amounts in millions)    September 27,
2014		      September 27,
2014		  

Exit and disposal costs:

      

Cost of goods sold:

      

Commercial & Industrial Group

        $ 0.5                $ 0.5        

Repair Systems & Information Group

      1.0              4.2        
  

 

 

     

 

 

  

Total cost of goods sold

        $ 1.5                $ 4.7        
  

 

 

     

 

 

  

Operating expenses:

      

Commercial & Industrial Group

        $ 0.4                $ 0.4        

Repair Systems & Information Group

      0.1              0.3        
  

 

 

     

 

 

  

Total operating expenses

        $ 0.5                $ 0.7        
  

 

 

     

 

 

  

Total exit and disposal costs:

      

Commercial & Industrial Group

        $ 0.9                $ 0.9        

Repair Systems & Information Group

      1.1              4.5        
  

 

 

     

 

 

  

Total exit and disposal costs

        $ 2.0                $ 5.4        
  

 

 

     

 

 

  

The $2.0 million and $5.4 million of costs incurred during the respective three and nine month periods ended September 27, 2014, qualified for accrual treatment.

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

 

     Balance at
January  3,
2015		      First Six Months      Balance at
July  4,
2015		      Third Quarter      Balance at
October 3,
2015		  
(Amounts in millions)       Provision      Usage         Provision      Usage     

Severance costs:

                     

Commercial & Industrial Group

        $ 0.8                $ –                   $ (0.4)               $ 0.4                   $ –                   $ –                   $ 0.4           

Repair Systems & Information Group

      5.7              –                 (1.0)             4.7                 –                 (0.5)             4.2           
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

        $     6.5                $     –                   $     (1.4)               $     5.1                   $     –                   $     (0.5)               $     4.6           
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

As of October 3, 2015, the company expects that approximately $0.7 million of the $4.6 million exit and disposal accrual will be utilized in the balance of 2015 and the remainder will extend into 2016 primarily for longer-term severance obligations.

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.

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