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Receivables (Tables)

12 Months Ended

Jan. 02, 2016

Components of Trade and Other Accounts Receivable

The components of Snap-on’s trade and other accounts receivable as of 2015 and 2014 year end are as follows:


(Amounts in millions)	2015		2014
Trade and other accounts receivable	$	579.2	$	567.0
Allowances for doubtful accounts		(16.7)		(16.2)

Total trade and other accounts receivable – net	$	562.5	$	550.8

Components of Current Finance and Contract Receivables

The components of Snap-on’s current finance and contract receivables as of 2015 and 2014 year end are as follows:


(Amounts in millions)	2015		2014
Finance receivables, net of unearned finance charges of $16.9 million and $15.6 million, respectively	$	460.7	$	414.6
Contract receivables, net of unearned finance charges of $15.1 million and $13.9 million, respectively		83.5		75.5

Total		544.2		490.1

Allowances for doubtful accounts:
Finance receivables		(13.4)		(12.2)
Contract receivables		(1.4)		(1.0)

Total		(14.8)		(13.2)

Total current finance and contract receivables – net	$	529.4	$	476.9

Finance receivables – net	$	447.3	$	402.4
Contract receivables – net		82.1		74.5

Total current finance and contract receivables – net	$	529.4	$	476.9

Components of Finance and Contract Receivables Beyond One Year

The components of Snap-on’s finance and contract receivables with payment terms beyond one year as of 2015 and 2014 year end are as follows:


(Amounts in millions)	2015		2014
Finance receivables, net of unearned finance charges of $10.9 million and $9.9 million, respectively	$	797.5	$	671.0
Contract receivables, net of unearned finance charges of $21.1 million and $19.4 million, respectively		269.6		244.5

Total		1,067.1		915.5

Allowances for doubtful accounts:
Finance receivables		(24.8)		(20.5)
Contract receivables		(3.0)		(2.5)

Total		(27.8)		(23.0)

Total long-term finance and contract receivables – net	$	1,039.3	$	892.5

Finance receivables – net	$	772.7	$	650.5
Contract receivables – net		266.6		242.0

Total long-term finance and contract receivables – net	$	1,039.3	$	892.5

Schedule of Long-Term Finance and Contract Receivables

Long-term finance and contract receivables installments, net of unearned finance charges, as of 2015 and 2014 year end are scheduled as follows:


	2015				2014
(Amounts in millions) Due in Months:	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
13 – 24	$	361.0	$	65.1	$	320.2	$	58.7
25 – 36		252.8		56.6		212.0		50.1
37 – 48		137.8		46.5		106.2		41.7
49 – 60		45.9		35.0		32.6		31.6
Thereafter		–		66.4		–		62.4

Total	$	797.5	$	269.6	$	671.0	$	244.5

Aging of Finance and Contract Receivables

The aging of finance and contract receivables as of 2015 and 2014 year end 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
2015 year end:
Finance receivables	$	12.1	$	7.6	$	11.9	$	31.6	$	1,226.6	$	1,258.2	$	9.1
Contract receivables		1.3		0.7		1.3		3.3		349.8		353.1		0.3
2014 year end:
Finance receivables	$	9.8	$	6.7	$	10.4	$	26.9	$	1,058.7	$	1,085.6	$	7.7
Contract receivables		0.9		0.7		1.1		2.7		317.3		320.0		0.1

Schedule of Performing and Nonperforming Finance and Contract Receivables

The amount of performing and nonperforming finance and contract receivables based on payment activity as of 2015 and 2014 year end is as follows:


	2015				2014
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Performing	$	1,240.0	$	351.4	$	1,070.1	$	318.5
Nonperforming		18.2		1.7		15.5		1.5

Total	$	1,258.2	$	353.1	$	1,085.6	$	320.0

Schedule of Finance and Contract Receivables on Nonaccrual Status

The amount of finance and contract receivables on nonaccrual status as of 2015 and 2014 year end is as follows:


(Amounts in millions)	2015		2014
Finance receivables	$	9.3	$	7.9
Contract receivables		1.5		1.5

Rollforward of Allowances for Credit Losses for Finance and Contract Receivables

The following is a rollforward of the allowances for credit losses for finance and contract receivables for 2015 and 2014:


	2015				2014
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for credit losses:
Beginning of year	$	32.7	$	3.5	$	27.8	$	3.3
Provision for bad debt expense		31.6		2.5		27.4		1.9
Charge-offs		(31.7)		(1.9)		(27.5)		(2.0)
Recoveries		5.9		0.4		5.1		0.4
Currency translation		(0.3)		(0.1)		(0.1)		(0.1)

End of year	$	38.2	$	4.4	$	32.7	$	3.5

Rollforward of Combined Allowances for Doubtful Accounts Related to Trade and Other Accounts Receivable

The following is a rollforward of the combined allowances for doubtful accounts related to trade and other accounts receivable, as well as finance and contract receivables, for 2015, 2014 and 2013:


	Balance at Beginning of Year						Balance at End of Year
(Amounts in millions)	Balance at Beginning of Year		Expenses		Deductions ⁽¹⁾		Balance at End of Year
Allowances for doubtful accounts:
2015	$	52.4	$	45.1	$	(38.2)	$	59.3
2014		46.0		41.7		(35.3)		52.4
2013		48.7		30.7		(33.4)		46.0

⁽¹⁾	Represents write-offs of bad debts, net of recoveries, and the net impact of currency translation.