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Short-term and Long-term Debt | 12 Months Ended
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Dec. 29, 2018
Debt Disclosure [Abstract] |
Short-term and Long-term Debt | Short-term and Long-term Debt Short-term and long-term debt as of 2018 and 2017 year end consisted of the following:
(Amounts in millions) |  | 2018 |  | 2017
4.25% unsecured notes due 2018 |  | $ |  |  |  | $ | 250.0 |
6.70% unsecured notes due 2019, paid in February 2018 |  | — |  |  | 200.0 |
6.125% unsecured notes due 2021 |  | 250.0 |  |  | 250.0 |
3.25% unsecured notes due 2027 |  | 300.0 |  |  | 300.0 |
4.10% unsecured notes due 2048 |  | 400.0 |  |  | — |
Other debt* |  | 182.3 |  |  | 186.8 |
|  | 1,132.3 |  |  | 1,186.8 |
Less: notes payable and current maturities of long-term debt: |  |  |  |
Current maturities of long-term debt |  | $ | — |  |  | $ | (250.0 | )
Commercial paper borrowings |  | (177.1 | ) |  | (151.0 | )
Other notes |  | (9.2 | ) |  | (32.2 | )
|  | (186.3 | ) |  | (433.2 | )
Total long-term debt |  | $ | 946.0 |  |  | $ | 753.6 |
* Includes fair value adjustments related to interest rate swaps. |  |  |
The annual maturities of Snap-on’s long-term debt and notes payable over the next five years are $186.3 million in 2019, no maturities in 2020, $250 million in 2021, and no maturities in both 2022 and 2023. Average notes payable outstanding, including commercial paper borrowings, were $167.7 million and $126.8 million in 2018 and 2017, respectively. The weighted-average interest rate of 2.84% in 2018 increased from 2.45% last year primarily due to the impact of higher rates on commercial paper borrowings. Average commercial paper borrowings were $154.9 million and $103.3 million in 2018 and 2017, respectively, and the weighted-average interest rate of 2.03% in 2018 increased from 1.14% last year. At 2018 year end, the weighted-average interest rate on outstanding notes payable of 3.21% compared with 2.34% at 2017 year end. The 2018 year-end rate increased primarily due to higher rates on commercial paper borrowings. On February 20, 2018, Snap-on commenced a tender offer to repurchase $200 million in principal amount of its unsecured 6.70% notes that were scheduled to mature on March 1, 2019 (the “2019 Notes”), with $26.1 million of the 2019 Notes tendered and repaid on February 27, 2018. On February 20, 2018, Snap-on also issued a notice of redemption for remaining outstanding 2019 Notes not tendered, with the redemption completed on March 22, 2018. The total cash cost for this tender and redemption was $209.1 million, including accrued interest of $1.5 million. Snap-on recorded $7.8 million for the loss on the early extinguishment of debt related to the 2019 Notes, which included the redemption premium and other issuance costs associated with this debt in “Other income (expense) - net” on the accompanying Consolidated Statement of Earnings. See Note 17 for additional information on Other income (expense) - net. On February 20, 2018, Snap-on sold, at a discount, $400 million of unsecured 4.10% long-term notes that mature on March 1, 2048 (the”2048 Notes”). Interest on the 2048 Notes accrues at a rate of 4.10% per year and is payable semi-annually beginning September 1, 2018. Snap-on used a portion of the $395.4 million of net proceeds from the sale of the 2048 Notes, reflecting $3.5 million of transaction costs, to repay the 2019 Notes. The remaining net proceeds were used to repay a portion of its then-outstanding commercial paper borrowings and for general corporate purposes. Snap-on has a five-year, $700 million multi-currency revolving credit facility that terminates on December 15, 2020 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of December 29, 2018. Borrowings under the Credit Facility bear interest at varying rates based on Snap-on’s then-current, long-term debt ratings. The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of consolidated net debt (consolidated debt net of certain cash adjustments) to the sum of such consolidated net debt plus total equity and less accumulated other comprehensive income or loss (the “Debt Ratio”); or (ii) a ratio not greater than 3.50 to 1.00 of such consolidated net debt to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Debt to EBITDA Ratio”). Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), increase the maximum Debt Ratio to 0.65 to 1.00 and/or increase the maximum Debt to EBITDA Ratio to 3.75 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of 2018 year end, the company’s actual ratios of 0.23 and 0.99, respectively, were both within the permitted ranges set forth in this financial covenant. Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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