XML 51 R35.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes (Tables) | 12 Months Ended
--- | ---
Jan. 02, 2016
Income Tax Disclosure [Abstract] |
Earnings Before Income Taxes and Equity Earnings | The source of earnings before income taxes and equity earnings consisted of the following:
(Amounts in millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
United States |  | $ | 578.4 |  |  | $ | 481.1 |  |  | $ | 406.7 |
Foreign |  |  | 132.1 |  |  |  | 149.8 |  |  |  | 119.5 |
Total |  | $ | 710.5 |  |  | $ | 630.9 |  |  | $ | 526.2 |
Components of Income Tax | The provision (benefit) for income taxes consisted of the following:
(Amounts in millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 165.8 |  |  | $ | 137.6 |  |  | $ | 115.5 |
Foreign |  |  | 40.8 |  |  |  | 41.2 |  |  |  | 27.6 |
State |  |  | 19.7 |  |  |  | 17.5 |  |  |  | 14.1 |
Total current |  |  | 226.3 |  |  |  | 196.3 |  |  |  | 157.2 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (8.7) |  |  |  | 10.0 |  |  |  | 6.9 |
Foreign |  |  | 3.9 |  |  |  | (8.2) |  |  |  | 2.0 |
State |  |  | (0.3) |  |  |  | 1.4 |  |  |  | 0.6 |
Total deferred |  |  | (5.1) |  |  |  | 3.2 |  |  |  | 9.5 |
Total income tax provision |  | $ | 221.2 |  |  | $ | 199.5 |  |  | $ | 166.7 |
Reconciliation of Statutory Federal Income Tax Rate | The following is a reconciliation of the statutory federal income tax rate to Snap-on’s effective tax rate:
|  | 2015 |  |  | 2014 |  |  | 2013 |
Statutory federal income tax rate |  |  | 35.0% |  |  |  | 35.0% |  |  |  | 35.0% |
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal benefit |  |  | 2.3 |  |  |  | 2.2 |  |  |  | 2.1 |
Noncontrolling interests |  |  | (0.6) |  |  |  | (0.5) |  |  |  | (0.6) |
Repatriation of foreign earnings |  |  | (3.0) |  |  |  | (0.4) |  |  |  | – |
Change in valuation allowance for deferred tax assets |  |  | 0.1 |  |  |  | (0.9) |  |  |  | 0.7 |
Adjustments to tax accruals and reserves |  |  | 0.8 |  |  |  | 0.5 |  |  |  | (1.3) |
Foreign rate differences |  |  | (1.9) |  |  |  | (2.2) |  |  |  | (1.7) |
Domestic production activities deduction |  |  | (1.9) |  |  |  | (2.0) |  |  |  | (2.7) |
Other |  |  | 0.3 |  |  |  | (0.1) |  |  |  | 0.2 |
Effective tax rate |  |  | 31.1% |  |  |  | 31.6% |  |  |  | 31.7% |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences that give rise to the net deferred income tax asset (liability) as of 2015, 2014 and 2013 year end are as follows:
(Amounts in millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Current deferred income tax assets (liabilities): |  |  |  |  |  |  |  |  |  |  |  |
Inventories |  | $ | 29.4 |  |  | $ | 29.2 |  |  | $ | 24.4 |
Accruals not currently deductible |  |  | 71.1 |  |  |  | 72.7 |  |  |  | 63.2 |
Tax credit carryforward |  |  | 10.2 |  |  |  | – |  |  |  | – |
Valuation allowance |  |  | (1.1) |  |  |  | (1.1) |  |  |  | (2.4) |
Total current (included in deferred income tax assets and other accrued liabilities) |  |  | 109.6 |  |  |  | 100.8 |  |  |  | 85.2 |
Long-term deferred income tax assets (liabilities): |  |  |  |  |  |  |  |  |  |  |  |
Employee benefits |  |  | 101.2 |  |  |  | 91.5 |  |  |  | 62.5 |
Net operating losses |  |  | 44.4 |  |  |  | 53.5 |  |  |  | 59.9 |
Depreciation and amortization |  |  | (199.3) |  |  |  | (191.2) |  |  |  | (180.8) |
Valuation allowance |  |  | (30.9) |  |  |  | (33.7) |  |  |  | (43.0) |
Equity-based compensation |  |  | 22.7 |  |  |  | 19.6 |  |  |  | 17.6 |
Other |  |  | (1.6) |  |  |  | (5.7) |  |  |  | (2.9) |
Total long term |  |  | (63.5) |  |  |  | (66.0) |  |  |  | (86.7) |
Net deferred income tax asset (liability) |  | $ | 46.1 |  |  | $ | 34.8 |  |  | $ | (1.5) |
Operating Loss Carry Forwards | As of 2015 year end, Snap-on had tax net operating loss carryforwards totaling $266.4 million as follows:
(Amounts in millions) |  | State |  |  | United States |  |  | Foreign |  |  | Total |
Year of expiration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016 – 2020 |  | $ | – |  |  | $ | – |  |  | $ | 32.9 |  |  | $ | 32.9 |
2021 – 2025 |  |  | 0.3 |  |  |  | – |  |  |  | 20.5 |  |  |  | 20.8 |
2026 – 2030 |  |  | – |  |  |  | – |  |  |  | 20.3 |  |  |  | 20.3 |
2031 – 2035 |  |  | 136.5 |  |  |  | – |  |  |  | 10.2 |  |  |  | 146.7 |
Indefinite |  |  | – |  |  |  | – |  |  |  | 45.7 |  |  |  | 45.7 |
Total net operating loss carryforwards |  | $ | 136.8 |  |  | $ | – |  |  | $ | 129.6 |  |  | $ | 266.4 |
Reconciliation of Unrecognized Tax Benefits | The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2015, 2014 and 2013:
(Amounts in millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Unrecognized tax benefits at beginning of year |  | $ | 6.4 |  |  | $ | 4.6 |  |  | $ | 6.8 |
Gross increases – tax positions in prior periods |  |  | 1.7 |  |  |  | 2.1 |  |  |  | 1.5 |
Gross decreases – tax positions in prior periods |  |  | (0.5) |  |  |  | – |  |  |  | (1.6) |
Gross increases – tax positions in the current period |  |  | 0.5 |  |  |  | 1.8 |  |  |  | 0.5 |
Settlements with taxing authorities |  |  | – |  |  |  | (1.6) |  |  |  | (2.1) |
Lapsing of statutes of limitations |  |  | (0.9) |  |  |  | (0.5) |  |  |  | (0.5) |
Unrecognized tax benefits at end of year |  | $ | 7.2 |  |  | $ | 6.4 |  |  | $ | 4.6 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: 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.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration