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Pension Plans (Tables)

12 Months Ended

Dec. 29, 2018

Retirement Benefits [Abstract]

Summary of Change in Benefit Obligation

The status of Snap-on’s pension plans as of 2018 and 2017 year end is as follows:

(Amounts in millions)		2018				2017
Change in projected benefit obligation:
Benefit obligation at beginning of year		$	1,467.6			$	1,361.4
Service cost		25.1				22.7
Interest cost		52.8				56.1
Plan participant contributions		0.5				0.6
Plan amendments		1.0				—
Plan settlements		—				(0.3		)
Benefits paid		(68.5		)		(66.6		)
Actuarial (gain) loss		(77.9		)		69.5
Foreign currency impact		(13.7		)		24.2
Benefit obligation at end of year		$	1,386.9			$	1,467.6

The status of Snap-on’s U.S. postretirement health care plans as of 2018 and 2017 year end is as follows:

(Amounts in millions)		2018				2017
Change in accumulated postretirement benefit obligation:
Benefit obligation at beginning of year		$	52.5			$	53.2
Service cost		—				—
Interest cost		1.8				2.1
Plan participant contributions		0.3				0.4
Benefits paid		(4.5		)		(4.3		)
Actuarial (gain) loss		(3.3		)		1.1
Benefit obligation at end of year		$	46.8			$	52.5

Summary of Change in Fair Value of Plan Assets

Change in plan assets:
Fair value of plan assets at beginning of year		$	1,305.0			$	1,110.8
Actual (loss) gain on plan assets		(72.8		)		175.7
Employer contributions		61.3				69.6
Plan participant contributions		0.5				0.6
Plan settlements		—				(0.3		)
Benefits paid		(68.5		)		(66.6		)
Foreign currency impact		(9.9		)		15.2
Fair value of plan assets at end of year		$	1,215.6			$	1,305.0
Unfunded status at end of year		$	(171.3	)		$	(162.6	)

Change in plan assets:
Fair value of plan assets at beginning of year		$	13.4			$	13.2
Actual return on plan assets		(0.2		)		1.3
Employer contributions		3.1				2.8
Plan participant contributions		0.3				0.4
Benefits paid		(4.5		)		(4.3		)
Fair value of plan assets at end of year		$	12.1			$	13.4
Unfunded status at end of year		$	(34.7	)		$	(39.1	)

Summary of Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets as of 2018 and 2017 year end are as follows:

(Amounts in millions)		2018				2017
Other assets		$	4.3			$	1.5
Accrued benefits		(4.3		)		(5.2		)
Pension liabilities		(171.3		)		(158.9		)
Net liability		$	(171.3	)		$	(162.6	)

Amounts recognized in the Consolidated Balance Sheets as of 2018 and 2017 year end are as follows:

(Amounts in millions)		2018				2017
Accrued benefits		$	(2.9	)		$	(3.1	)
Retiree health care benefits		(31.8		)		(36.0		)
Net liability		$	(34.7	)		$	(39.1	)

Schedule of Net Periodic Benefit Costs in AOCI

Amounts included in Accumulated OCI on the accompanying Consolidated Balance Sheets as of 2018 and 2017 year end are as follows:

(Amounts in millions)		2018				2017
Net loss, net of tax of $158.8 million and $146.4 million, respectively		$	(301.9	)		$	(266.7	)
Prior service credit, net of tax of $0.4 million and $0.9 million, respectively		(0.2		)		1.5
		$	(302.1	)		$	(265.2	)

Amounts included in Accumulated OCI on the accompanying Consolidated Balance Sheets as of 2018 and 2017 year end are as follows:

(Amounts in millions)		2018				2017
Net gain, net of tax of $3.1 million and $2.6 million, respectively		$	5.6			$	4.2

Summary of Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for Snap-on’s pension plans in which the accumulated benefit obligation exceeds the fair value of plan assets as of 2018 and 2017 year end are as follows:

(Amounts in millions)		2018				2017
Projected benefit obligation		$	1,081.3			$	398.7
Accumulated benefit obligation		1,028.6				378.1
Fair value of plan assets		916.2				275.6

Summary of Components of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income (Loss)

The components of net periodic benefit cost and changes recognized in “Other comprehensive income (loss)” (“OCI”) are as follows:

(Amounts in millions)		2018				2017				2016
Net periodic benefit cost:
Service cost		$	25.1			$	22.7			$	19.3
Interest cost		52.8				56.1				56.5
Expected return on plan assets		(88.6		)		(83.4		)		(81.0		)
Amortization of unrecognized loss		32.7				27.9				31.3
Amortization of prior service credit		(1.2		)		(1.1		)		(1.1		)
Settlement loss		—				0.1				—
Net periodic benefit cost		$	20.8			$	22.3			$	25.0
Changes in benefit obligations recognized in OCI, net of tax:
Net (gain) loss		$	35.2			$	(30.3	)		$	43.3
Prior service cost		1.7				0.7				0.6
Total recognized in OCI		$	36.9			$	(29.6	)		$	43.9

The components of net periodic benefit cost and changes recognized in OCI are as follows:

(Amounts in millions)		2018				2017				2016
Net periodic benefit cost:
Service cost		$	—			$	—			$	0.1
Interest cost		1.8				2.1				2.2
Expected return on plan assets		(0.8		)		(0.8		)		(0.9		)
Amortization of unrecognized gain		(0.4		)		(0.3		)		(0.1		)
Net periodic benefit cost		$	0.6			$	1.0			$	1.3
Changes in benefit obligations recognized in OCI, net of tax:
Net (gain) loss		$	(1.4	)		$	0.6			$	(0.3	)

Summary of Amounts in Accumulated OCI to be Amortized Over Next Fiscal Year

Amounts in Accumulated OCI that are expected to be amortized as net expense into net periodic benefit cost during 2019 are as follows:

(Amounts in millions)		Amount
Amortization of unrecognized loss		$	24.9
Amortization of prior service credit		(0.9		)
Total to be recognized in net periodic benefit cost		$	24.0

Summary of Weighted-Average Assumptions Used to Determine Full-Year Pension Costs

The worldwide weighted-average assumptions used to determine Snap-on’s full-year pension costs are as follows:

		2018		2017		2016
Discount rate		3.7%		4.2%		4.5%
Expected return on plan assets		7.1%		7.2%		7.4%
Rate of compensation increase		3.4%		3.4%		3.6%

The worldwide weighted-average assumptions used to determine Snap-on’s projected benefit obligation as of 2018 and 2017 year end are as follows:

		2018		2017
Discount rate		4.4%		3.7%
Rate of compensation increase		3.4%		3.4%

The weighted-average discount rate used to determine Snap-on’s postretirement health care expense is as follows:

		2018		2017		2016
Discount rate		3.6%		4.1%		4.1%

The weighted-average discount rate used to determine Snap-on’s accumulated benefit obligation is as follows:

		2018		2017
Discount rate		4.2%		3.6%

Summary of Expected Benefit Payments

The following benefit payments, which reflect expected future service, are expected to be paid as follows:

(Amounts in millions)	Amount
Year:
2019	$	76.2
2020	80.1
2021	82.4
2022	92.4
2023	88.8
2024-2028	474.9

The following benefit payments, which reflect expected future service, are expected to be paid as follows:

(Amounts in millions)		Amount
Year:
2019		$	3.8
2020		3.9
2021		4.0
2022		4.1
2023		4.1
2024-2028		21.2

Schedule of Allocation of Plan Assets

Snap-on’s domestic pension plans’ target allocation and actual weighted-average asset allocation by asset category and fair value of plan assets as of 2018 and 2017 year end are as follows:

		Target			2018				2017
Asset category:
Equity securities		51	%		49		%		51		%
Debt securities and cash and cash equivalents		37	%		40		%		38		%
Real estate and other real assets		2	%		1		%		1		%
Hedge funds		10	%		10		%		10		%
Total		100	%		100		%		100		%
Fair value of plan assets (Amounts in millions)					$	1,049.0			$	1,122.7

Snap-on’s foreign pension plans’ target allocation and actual weighted-average asset allocation by asset category and fair value of plan assets as of 2018 and 2017 year end are as follows:

		Target		2018		2017
Asset category:
Equity securities*		35%		35%		36%
Debt securities* and cash and cash equivalents		40%		42%		42%
Insurance contracts and hedge funds		25%		23%		22%
Total		100%		100%		100%
Fair value of plan assets (Amounts in millions)				$166.6		$182.3

* Includes commingled funds - multi-strategy

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of Snap-on’s foreign pension plans’ assets as of 2018 year end:

(Amounts in millions)		Quoted Prices for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Investments Measured at NAV				Total
Asset category:
Cash and cash equivalents		$	1.2			$	—			$	—			$	1.2
Commingled funds – multi-strategy		—				—				101.5				101.5
Debt securities:
Government		8.3				—				—				8.3
Corporate bonds		—				17.5				—				17.5
Insurance contracts		—				23.8				—				23.8
Hedge fund		—				—				14.3				14.3
Total		$	9.5			$	41.3			$	115.8			$	166.6

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of Snap-on’s foreign pension plans’ assets as of 2017 year end:

(Amounts in millions)		Quoted Prices for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Investments Measured at NAV				Total
Asset category:
Cash and cash equivalents		$	0.7			$	—			$	—			$	0.7
Commingled funds – multi-strategy		—				—				114.2				114.2
Debt securities:
Government		8.8				—				—				8.8
Corporate bonds		—				18.3				—				18.3
Insurance contracts		—				24.2				—				24.2
Hedge fund		—				—				16.1				16.1
Total		$	9.5			$	42.5			$	130.3			$	182.3

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of Snap-on’s domestic pension plans’ assets as of 2018 year end:

(Amounts in millions)		Quoted Prices for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Investments Measured at NAV				Total
Asset category:
Cash and cash equivalents		$	17.8			$	—			$	—			$	17.8
Equity securities:
Domestic		70.5				—				—				70.5
Foreign		87.5				—				—				87.5
Commingled funds – domestic		—				—				200.6				200.6
Commingled funds – foreign		—				—				128.4				128.4
Private equity partnerships		—				—				22.7				22.7
Debt securities:
Government		131.2				2.6				—				133.8
Corporate bonds		—				271.3				—				271.3
Real estate and other real assets		—				—				11.9				11.9
Hedge funds		—				—				104.5				104.5
Total		$	307.0			$	273.9			$	468.1			$	1,049.0

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of Snap-on’s domestic pension plans’ assets as of 2017 year end:

(Amounts in millions)		Quoted Prices  for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Investments Measured at NAV				Total
Asset category:
Cash and cash equivalents		$	20.6			$	—			$	—			$	20.6
Equity securities:
Domestic		73.4				—				—				73.4
Foreign		100.1				—				—				100.1
Commingled funds – domestic		—				—				225.0				225.0
Commingled funds – foreign		—				—				148.8				148.8
Private equity partnerships		—				—				27.5				27.5
Debt securities:
Government		152.8				2.2				—				155.0
Corporate bonds		—				253.0				—				253.0
Real estate and other real assets		—				—				13.2				13.2
Hedge funds		—				—				106.1				106.1
Total		$	346.9			$	255.2			$	520.6			$	1,122.7

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of the VEBA plan assets as of 2018 year end:

(Amounts in millions)		Quoted Prices for Identical Assets (Level 1)				Investments Measured at     NAV				Total
Asset category:
Cash and cash equivalents		$	1.3			$	—			$	1.3
Debt securities		5.5				—				5.5
Equity securities		—				3.1				3.1
Hedge fund		—				2.2				2.2
Total		$	6.8			$	5.3			$	12.1

The following is a summary, by asset category, of the fair value and the level within the fair value hierarchy of the VEBA plan assets as of 2017 year end:

(Amounts in millions)		Quoted Prices for Identical Assets (Level 1)				Investments Measured at     NAV				Total
Asset category:
Cash and cash equivalents		$	0.2			$	—			$	0.2
Debt securities		5.5				—				5.5
Equity securities		—				3.8				3.8
Hedge fund		—				3.9				3.9
Total		$	5.7			$	7.7			$	13.4

Snap-on’s VEBA plan target allocation and actual weighted-average asset allocation by asset category and fair value of plan assets as of 2018 and 2017 year end are as follows:

		Target			2018				2017
Asset category:
Debt securities and cash and cash equivalents		46	%		56		%		42		%
Equity securities		29	%		26		%		29		%
Hedge funds		25	%		18		%		29		%
Total		100	%		100		%		100		%
Fair value of plan assets (Amounts in millions)					$	12.1			$	13.4

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Tabular disclosure of the amounts that are recognized in the balance sheet (or statement of financial position) for pension plans and/or other employee benefit plans, showing separately the assets and current and noncurrent liabilities (if applicable) recognized.

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