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Income Taxes (Tables) | 12 Months Ended
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Dec. 29, 2018
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) |  | 2018 |  | 2017 |  | 2016
United States |  | $ | 735.4 |  |  | $ | 645.5 |  |  | $ | 644.0 |
Foreign |  | 174.5 |  |  | 176.4 |  |  | 157.4 |
Total |  | $ | 909.9 |  |  | $ | 821.9 |  |  | $ | 801.4 |
Components of Income Tax | The provision (benefit) for income taxes consisted of the following:
(Amounts in millions) |  | 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |  |
Federal |  | $ | 117.9 |  |  | $ | 166.9 |  |  | $ | 175.9 |
Foreign |  | 52.4 |  |  | 41.1 |  |  | 39.9 |
State |  | 30.4 |  |  | 30.6 |  |  | 27.2 |
Total current |  | 200.7 |  |  | 238.6 |  |  | 243.0 |
Deferred: |  |  |  |  |  |
Federal |  | 18.7 |  |  | 8.7 |  |  | 6.3 |
Foreign |  | (8.4 | ) |  | 2.9 |  |  | (6.7 | )
State |  | 3.4 |  |  | 0.7 |  |  | 1.7 |
Total deferred |  | 13.7 |  |  | 12.3 |  |  | 1.3 |
Total income tax provision |  | $ | 214.4 |  |  | $ | 250.9 |  |  | $ | 244.3 |
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:
|  | 2018 |  | 2017 |  | 2016
Statutory federal income tax rate |  | 21.0% |  | 35.0% |  | 35.0%
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |
State income taxes, net of federal benefit |  | 2.9 |  | 2.4 |  | 2.4
Noncontrolling interests |  | (0.4) |  | (0.6) |  | (0.6)
Repatriation of foreign earnings |  | (0.1) |  | (1.2) |  | (0.1)
Change in valuation allowance for deferred tax assets |  | 0.3 |  | 0.1 |  | (1.0)
Adjustments to tax accruals and reserves |  | (0.2) |  | (0.3) |  | 0.3
Foreign rate differences |  | 0.4 |  | (2.4) |  | (2.1)
Domestic production activities deduction |  | — |  | (2.1) |  | (1.9)
Excess tax benefits related to equity compensation |  | (0.8) |  | (1.4) |  | (1.8)
U.S. tax reform, net impact |  | 0.4 |  | 0.9 |  | —
Other |  | 0.1 |  | 0.1 |  | 0.3
Effective tax rate |  | 23.6% |  | 30.5% |  | 30.5%
Schedule of Deferred Tax Assets and Liabilities | Temporary differences that give rise to the net deferred income tax asset as of 2018, 2017 and 2016 year end are as follows:
(Amounts in millions) |  | 2018 |  | 2017 |  | 2016
Long-term deferred income tax assets (liabilities): |  |  |  |  |  |
Inventories |  | $ | 33.6 |  |  | $ | 28.8 |  |  | $ | 33.3 |
Accruals not currently deductible |  | 72.9 |  |  | 61.7 |  |  | 77.7 |
Tax credit carryforward |  | 1.8 |  |  | 2.1 |  |  | 15.1 |
Employee benefits |  | 56.5 |  |  | 56.8 |  |  | 108.1 |
Net operating losses |  | 40.9 |  |  | 44.0 |  |  | 42.8 |
Depreciation and amortization |  | (167.5 | ) |  | (161.3 | ) |  | (209.8 | )
Valuation allowance |  | (25.1 | ) |  | (25.2 | ) |  | (21.7 | )
Equity-based compensation |  | 16.6 |  |  | 17.1 |  |  | 24.3 |
Undistributed non-U.S. earnings |  | (6.0 | ) |  | — |  |  | — |
Cash flow hedge |  | — |  |  | (0.3 | ) |  | (5.5 | )
Other |  | (0.4 | ) |  | (0.1 | ) |  | (4.6 | )
Net deferred income tax asset |  | $ | 23.3 |  |  | $ | 23.6 |  |  | $ | 59.7 |
Operating Loss Carry Forwards | As of 2018 year end, Snap-on had tax net operating loss carryforwards totaling $224.8 million as follows:
(Amounts in millions) |  | State |  | Federal |  | Foreign |  | Total
Year of expiration: |  |  |  |  |  |  |  |
2019-2023 |  | $ | 0.2 |  |  | $ | — |  |  | $ | 52.5 |  |  | $ | 52.7 |
2024-2028 |  | 0.1 |  |  | — |  |  | 38.9 |  |  | 39.0 |
2029-2033 |  | 90.6 |  |  | — |  |  | 6.8 |  |  | 97.4 |
2034-2038 |  | — |  |  | — |  |  | — |  |  | — |
Indefinite |  | — |  |  | — |  |  | 35.7 |  |  | 35.7 |
Total net operating loss carryforwards |  | $ | 90.9 |  |  | $ | — |  |  | $ | 133.9 |  |  | $ | 224.8 |
Reconciliation of Unrecognized Tax Benefits | The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2018, 2017 and 2016:
(Amounts in millions) |  | 2018 |  | 2017 |  | 2016
Unrecognized tax benefits at beginning of year |  | $ | 7.7 |  |  | $ | 9.4 |  |  | $ | 7.2 |
Gross increases – tax positions in prior periods |  | 1.3 |  |  | 1.4 |  |  | 2.5 |
Gross decreases – tax positions in prior periods |  | (0.1 | ) |  | — |  |  | (0.3 | )
Gross increases – tax positions in the current period |  | 2.8 |  |  | 1.0 |  |  | 0.5 |
Settlements with taxing authorities |  | — |  |  | (3.6 | ) |  | — |
Lapsing of statutes of limitations |  | (0.6 | ) |  | (0.5 | ) |  | (0.5 | )
Unrecognized tax benefits at end of year |  | $ | 11.1 |  |  | $ | 7.7 |  |  | $ | 9.4 |

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