XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.21.1

Short-term and Long-term Debt | 3 Months Ended
--- | ---
Apr. 03, 2021
Debt Disclosure [Abstract] |
Short-term and Long-term Debt | Short-term and Long-term Debt Short-term and long-term debt as of April 3, 2021, and January 2, 2021, consisted of the following:
(Amounts in millions) | April 3, 2021 |  | January 2, 2021
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 |  |  | 400.0 |
3.10% unsecured notes due 2050 | 500.0 |  |  | 500.0 |
Other* | 0.8 |  |  | 0.6 |
| 1,450.8 |  |  | 1,450.6 |
Less: notes payable and current maturities of long-term debt |  |  |
Current maturities of long-term debt | (250.0) |  |  | (250.0) |
Other notes* | (18.5) |  |  | (18.5) |
| (268.5) |  |  | (268.5) |
Total long-term debt | $ | 1,182.3 |  |  | $ | 1,182.1 |
* | Includes the net effects of debt amortization costs and fair value adjustments of interest rate swaps. |
Notes payable and current maturities of long-term debt of $268.5 million as of April 3, 2021, consisted of $250.0 million of 6.125% unsecured notes that mature on September 1, 2021 (the “2021 Notes”), $16.9 million of other notes and $1.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps. As of 2020 year end, notes payable of $268.5 million included $250.0 million of the 2021 Notes, $14.9 million of other notes and $3.6 million from the net effects of debt amortization costs and fair value adjustments of interest rate swaps. Snap-on has an $800 million multi-currency revolving credit facility that terminates on September 16, 2024 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of April 3, 2021. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). 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 to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of April 3, 2021, the company’s actual ratios of 0.12 and 0.54 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.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration