Receivables (Tables)

6 Months Ended

Jul. 01, 2017

Components of Trade and Other Accounts Receivable

The components of Snap-on’s trade and other accounts receivable as of July 1, 2017, and December 31, 2016, are as follows:


(Amounts in millions)	July 1, 2017		December 31, 2016
Trade and other accounts receivable	$	659.0	$	612.8
Allowances for doubtful accounts		(13.7)		(14.0)

Total trade and other accounts receivable – net	$	645.3	$	598.8

Components of Current Finance and Contract Receivables

The components of Snap-on’s current finance and contract receivables as of July 1, 2017, and December 31, 2016, are as follows:


(Amounts in millions)	July 1, 2017		December 31, 2016
Finance receivables, net of unearned finance charges of $19.3 million and $17.0 million, respectively	$	513.0	$	488.1
Contract receivables, net of unearned finance charges of $16.5 million and $15.6 million, respectively		83.8		89.3

Total		596.8		577.4

Allowances for doubtful accounts:
Finance receivables		(16.5)		(15.6)
Contract receivables		(1.4)		(1.2)

Total		(17.9)		(16.8)

Total current finance and contract receivables – net	$	578.9	$	560.6


Finance receivables – net	$	496.5	$	472.5
Contract receivables – net		82.4		88.1

Total current finance and contract receivables – net	$	578.9	$	560.6

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 July 1, 2017, and December 31, 2016, are as follows:


(Amounts in millions)	July 1, 2017		December 31, 2016
Finance receivables, net of unearned finance charges of $15.1 million and $13.0 million, respectively	$	1,034.6	$	967.5
Contract receivables, net of unearned finance charges of $23.0 million and $21.5 million, respectively		302.8		289.4

Total		1,337.4		1,256.9

Allowances for doubtful accounts:
Finance receivables		(36.0)		(33.0)
Contract receivables		(3.4)		(2.7)

Total		(39.4)		(35.7)

Total long-term finance and contract receivables – net	$	1,298.0	$	1,221.2


Finance receivables – net	$	998.6	$	934.5
Contract receivables – net		299.4		286.7

Total long-term finance and contract receivables – net	$	1,298.0	$	1,221.2

Aging of Finance and Contract Receivables

The aging of finance and contract receivables as of July 1, 2017, and December 31, 2016, 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
July 1, 2017:
Finance receivables	$	15.3	$	9.8	$	14.6	$	39.7	$	1,507.9	$	1,547.6	$	11.1
Contract receivables		1.4		0.8		1.7		3.9		382.7		386.6		0.7

December 31, 2016:
Finance receivables	$	15.1	$	9.8	$	17.0	$	41.9	$	1,413.7	$	1,455.6	$	13.2
Contract receivables		1.4		0.9		1.4		3.7		375.0		378.7		0.5

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 July 1, 2017, and December 31, 2016, is as follows:


	July 1, 2017				December 31, 2016
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Performing	$	1,524.3	$	384.3	$	1,430.7	$	376.7
Nonperforming		23.3		2.3		24.9		2.0

Total	$	1,547.6	$	386.6	$	1,455.6	$	378.7

Schedule of Finance and Contract Receivables on Nonaccrual Status

The amount of finance and contract receivables on nonaccrual status as of July 1, 2017, and December 31, 2016, is as follows:


(Amounts in millions)	July 1, 2017		December 31, 2016
Finance receivables	$	12.2	$	11.7
Contract receivables		1.6		1.5

Rollforward of Allowances for Doubtful Accounts for Finance and Contract Receivables

The following is a rollforward of the allowances for doubtful accounts for finance and contract receivables for the three and six months ended July 1, 2017:


	Three Months Ended July 1, 2017				Six Months Ended July 1, 2017
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	50.5	$	4.7	$	48.6	$	3.9
Provision		12.8		0.6		25.8		1.9
Charge-offs		(12.5)		(0.6)		(25.4)		(1.2)
Recoveries		1.7		–		3.4		0.1
Currency translation		–		0.1		0.1		0.1

End of period	$	52.5	$	4.8	$	52.5	$	4.8

The following is a rollforward of the allowances for doubtful accounts for finance and contract receivables for the three and six months ended July 2, 2016:


	Three Months Ended July 2, 2016				Six Months Ended July 2, 2016
(Amounts in millions)	Finance Receivables		Contract Receivables		Finance Receivables		Contract Receivables
Allowances for doubtful accounts:
Beginning of period	$	39.9	$	4.6	$	38.2	$	4.4
Provision		10.3		0.2		19.6		0.6
Charge-offs		(9.2)		(0.3)		(18.8)		(0.7)
Recoveries		1.7		0.1		3.6		0.2
Currency translation		(0.1)		(0.1)		–		–

End of period	$	42.6	$	4.5	$	42.6	$	4.5