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Income Taxes (Tables) | 12 Months Ended
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Dec. 28, 2019
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) |  | 2019 |  | 2018 |  | 2017
United States |  | $ | 765.3 |  |  | $ | 735.4 |  |  | $ | 645.5 |
Foreign |  | 156.8 |  |  | 174.5 |  |  | 176.4 |
Total |  | $ | 922.1 |  |  | $ | 909.9 |  |  | $ | 821.9 |
Components of Income Tax | The provision (benefit) for income taxes consisted of the following:
(Amounts in millions) |  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |
Federal |  | $ | 110.0 |  |  | $ | 117.9 |  |  | $ | 166.9 |
Foreign |  | 38.1 |  |  | 52.4 |  |  | 41.1 |
State |  | 29.5 |  |  | 30.4 |  |  | 30.6 |
Total current |  | 177.6 |  |  | 200.7 |  |  | 238.6 |
Deferred: |  |  |  |  |  |
Federal |  | 26.6 |  |  | 18.7 |  |  | 8.7 |
Foreign |  | 1.5 |  |  | (8.4) |  |  | 2.9 |
State |  | 6.1 |  |  | 3.4 |  |  | 0.7 |
Total deferred |  | 34.2 |  |  | 13.7 |  |  | 12.3 |
Total income tax provision |  | $ | 211.8 |  |  | $ | 214.4 |  |  | $ | 250.9 |
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:
|  | 2019 |  | 2018 |  | 2017
Statutory federal income tax rate |  | 21.0% |  |  | 21.0% |  |  | 35.0% |
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |
State income taxes, net of federal benefit |  | 2.9 |  |  | 2.9 |  |  | 2.4 |
Noncontrolling interests |  | (0.4) |  |  | (0.4) |  |  | (0.6) |
Repatriation of foreign earnings |  | (0.1) |  |  | (0.1) |  |  | (1.2) |
Change in valuation allowance for deferred tax assets |  | 0.4 |  |  | 0.3 |  |  | 0.1 |
Adjustments to tax accruals and reserves |  | (0.4) |  |  | (0.2) |  |  | (0.3) |
Foreign rate differences |  | 0.4 |  |  | 0.4 |  |  | (2.4) |
Domestic production activities deduction |  | — |  |  | — |  |  | (2.1) |
Excess tax benefits related to equity compensation |  | (0.5) |  |  | (0.8) |  |  | (1.4) |
U.S. tax reform, net impact |  | — |  |  | 0.4 |  |  | 0.9 |
Other |  | (0.3) |  |  | 0.1 |  |  | 0.1 |
Effective tax rate |  | 23.0% |  |  | 23.6% |  |  | 30.5% |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences that give rise to the net deferred income tax asset as of 2019, 2018 and 2017 year end are as follows:
(Amounts in millions) |  | 2019 |  | 2018 |  | 2017
Deferred income tax assets (liabilities): |  |  |  |  |  |
Inventories |  | $ | 34.7 |  |  | $ | 33.6 |  |  | $ | 28.8 |
Accruals not currently deductible |  | 62.4 |  |  | 72.9 |  |  | 61.7 |
Tax credit carryforward |  | 2.0 |  |  | 1.8 |  |  | 2.1 |
Employee benefits |  | 41.3 |  |  | 56.5 |  |  | 56.8 |
Net operating losses |  | 40.4 |  |  | 40.9 |  |  | 44.0 |
Depreciation and amortization |  | (178.9) |  |  | (167.5) |  |  | (161.3) |
Valuation allowance |  | (27.8) |  |  | (25.1) |  |  | (25.2) |
Equity-based compensation |  | 16.2 |  |  | 16.6 |  |  | 17.1 |
Undistributed non-U.S. earnings |  | (6.6) |  |  | (6.0) |  |  | — |
Cash flow hedge |  | — |  |  | — |  |  | (0.3) |
Other |  | (0.7) |  |  | (0.4) |  |  | (0.1) |
Net deferred income tax asset (liability) |  | $ | (17.0) |  |  | $ | 23.3 |  |  | $ | 23.6 |
Operating Loss Carry Forwards | As of 2019 year end, Snap-on had tax net operating loss carryforwards totaling $209.6 million as follows:
(Amounts in millions) |  | State |  | Federal |  | Foreign |  | Total
Year of expiration: |  |  |  |  |  |  |  |
2020-2024 |  | $ | 0.3 |  |  | $ | — |  |  | $ | 59.0 |  |  | $ | 59.3 |
2025-2029 |  | — |  |  | — |  |  | 9.4 |  |  | 9.4 |
2030-2034 |  | 74.4 |  |  | — |  |  | — |  |  | 74.4 |
2035-2039 |  | — |  |  | — |  |  | — |  |  | — |
2040-2044 |  | — |  |  |  | — |  |  |  | 34.1 |  |  |  | 34.1 |
Indefinite |  | — |  |  | — |  |  | 32.4 |  |  | 32.4 |
Total net operating loss carryforwards |  | $ | 74.7 |  |  | $ | — |  |  | $ | 134.9 |  |  | $ | 209.6 |
Reconciliation of Unrecognized Tax Benefits | The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2019, 2018 and 2017:
(Amounts in millions) |  | 2019 |  | 2018 |  | 2017
Unrecognized tax benefits at beginning of year |  | $ | 11.1 |  |  | $ | 7.7 |  |  | $ | 9.4 |
Gross increases – tax positions in prior periods |  | — |  |  | 1.3 |  |  | 1.4 |
Gross decreases – tax positions in prior periods |  | (0.6) |  |  | (0.1) |  |  | — |
Gross increases – tax positions in the current period |  | 0.5 |  |  | 2.8 |  |  | 1.0 |
Settlements with taxing authorities |  | — |  |  | — |  |  | (3.6) |
Lapsing of statutes of limitations |  | (0.7) |  |  | (0.6) |  |  | (0.5) |
Unrecognized tax benefits at end of year |  | $ | 10.3 |  |  | $ | 11.1 |  |  | $ | 7.7 |

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