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Pension Plans (Tables)

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Summary of Change in Benefit Obligation

The status of Snap-on’s pension plans as of 2022 and 2021 year end is as follows: 

(Amounts in millions)						2022						2021
Change in projected benefit obligation:
Benefit obligation at beginning of year						$	1,667.1					$	1,710.0
Service cost						26.5						28.8
Interest cost						44.4						42.3
Plan participant contributions						0.4						0.5
Benefits paid						(77.7)						(75.6)
Actuarial gain						(382.4)						(30.2)
Foreign currency impact						(23.7)						(8.7)
Benefit obligation at end of year						$	1,254.6					$	1,667.1

The status of Snap-on’s U.S. postretirement health care plans as of 2022 and 2021 year end is as follows:

(Amounts in millions)						2022						2021
Change in accumulated postretirement benefit obligation:
Benefit obligation at beginning of year						$	47.5					$	50.6
Interest cost						1.2						1.1
Plan participant contributions						0.2						0.2
Benefits paid						(3.8)						(3.6)
Actuarial gain						(7.8)						(0.8)
Benefit obligation at end of year						$	37.3					$	47.5

Summary of Change in Fair Value of Plan Assets

Change in plan assets:
Fair value of plan assets at beginning of year						$	1,710.9					$	1,632.4
Actual gain (loss) on plan assets						(384.1)						146.3
Employer contributions						10.8						10.7
Plan participant contributions						0.4						0.5
Benefits paid						(77.7)						(75.6)
Foreign currency impact						(18.6)						(3.4)
Fair value of plan assets at end of year						$	1,241.7					$	1,710.9
Funded (unfunded) status at end of year						$	(12.9)					$	43.8

Change in plan assets:
Fair value of plan assets at beginning of year						$	13.7					$	13.3
Actual gain (loss) on plan assets						(1.7)						1.1
Employer contributions						2.8						2.7
Plan participant contributions						0.2						0.2
Benefits paid						(3.8)						(3.6)
Fair value of plan assets at end of year						$	11.2					$	13.7
Unfunded status at end of year						$	(26.1)					$	(33.8)

Summary of Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets as of 2022 and 2021 year end are as follows: 

(Amounts in millions)						2022						2021
Pension assets						$	70.6					$	160.7
Accrued benefits						(4.9)						(12.0)
Pension liabilities						(78.6)						(104.9)
Net asset (liability)						$	(12.9)					$	43.8

Amounts recognized in the Consolidated Balance Sheets as of 2022 and 2021 year end are as follows:

(Amounts in millions)						2022						2021
Accrued benefits						$	(2.7)					$	(2.7)
Retiree health care benefits						(23.4)						(31.1)
Net liability						$	(26.1)					$	(33.8)

Schedule of Net Periodic Benefit Costs in AOCI

Amounts included in Accumulated OCI on the accompanying Consolidated Balance Sheets as of 2022 and 2021 year end are as follows: 

(Amounts in millions)						2022						2021
Net loss, net of tax of $88.8 million and $68.1 million, respectively						$	(269.0)					$	(209.4)
Prior service cost, net of tax of $0.2 million and $0.2 million, respectively						(0.5)						(0.6)
Total amount included in Accumulated OCI						$	(269.5)					$	(210.0)

Amounts included in Accumulated OCI on the accompanying Consolidated Balance Sheets as of 2022 and 2021 year end are as follows: 

(Amounts in millions)						2022						2021
Net gain, net of tax of $2.2 million and $0.8 million, respectively						$	6.4					$	2.3

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 as of 2022 and 2021 year end are as follows:

(Amounts in millions)						2022						2021
Pension plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation						$	94.9					$	127.8
Fair value of plan assets						15.1						25.1
Pension plans with projected benefit obligations in excess of plans assets:
Projected benefit obligation						$	98.6					$	280.4
Fair value of plan assets						15.1						163.5

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)						2022						2021						2020
Net periodic benefit cost:
Service cost						$	26.5					$	28.8					$	27.0
Interest cost						44.4						42.3						48.7
Expected return on plan assets						(99.2)						(94.4)						(94.7)
Amortization of unrecognized loss						18.0						36.3						34.5
Amortization of prior service cost						0.1						0.1						—
Net periodic benefit cost (credit)						$	(10.2)					$	13.1					$	15.5
Changes in benefit obligations recognized in OCI, net of tax:
Net (gain) loss						$	59.6					$	(92.8)					$	(31.6)
Prior service cost (credit)						(0.1)						(0.1)						0.1
Total recognized in OCI						$	59.5					$	(92.9)					$	(31.5)

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

(Amounts in millions)						2022						2021						2020
Net periodic benefit cost:
Interest cost						$	1.2					$	1.1					$	1.5
Expected return on plan assets						(0.6)						(0.6)						(0.6)
Net periodic benefit cost						$	0.6					$	0.5					$	0.9
Changes in benefit obligations recognized in OCI, net of tax:
Net (gain) loss						$	(4.1)					$	(1.0)					$	1.9

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: 

						2022						2021						2020
Discount rate						2.8%						2.5%						3.2%
Expected return on plan assets						6.2%						6.5%						7.0%
Rate of compensation increase						3.4%						3.4%						3.4%
Interest crediting rate - U.S. cash balance plan						3.8%						3.8%						3.8%

The worldwide weighted-average assumptions used to determine Snap-on’s projected benefit obligation as of 2022 and 2021 year end are as follows: 

						2022						2021
Discount rate						5.4%						2.8%
Rate of compensation increase						3.2%						3.4%
Interest crediting rate - U.S. cash balance plan						3.8%						3.8%

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

						2022						2021						2020
Discount rate						2.7%						2.3%						3.1%

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

						2022						2021
Discount rate						5.3%						2.7%

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:
2023			$	86.8
2024			90.6
2025			94.8
2026			94.6
2027			97.5
2028-2032			497.7

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

(Amounts in millions)						Amount
Year:
2023						$	3.4
2024						3.4
2025						3.5
2026						3.5
2027						3.5
2028-2032						17.3

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 2022 and 2021 year end are as follows: 

						Target						2022						2021
Asset category:
Equity securities						49%						45%						52%
Debt securities and cash and cash equivalents						46%						47%						42%
Hedge funds						5%						8%						6%
Total						100%						100%						100%
Fair value of plan assets (Amounts in millions)												$1,074.9						$1,464.7

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 2022 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						$	14.3					$	—					$	—					$	14.3
Equity securities:
Domestic						67.1						—						—						67.1
Foreign						39.2						—						—						39.2
Commingled funds – domestic						—						—						189.1						189.1
Commingled funds – foreign						—						—						180.6						180.6
Private equity partnerships						—						—						11.0						11.0
Debt securities:
Government						158.7						6.0						—						164.7
Corporate bonds						—						319.7						—						319.7
Real estate and other real assets						—						—						2.5						2.5
Hedge funds						—						—						86.7						86.7
Total						$	279.3					$	325.7					$	469.9					$	1,074.9

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 2021 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						$	23.7					$	—					$	—					$	23.7
Equity securities:
Domestic						109.4						—						—						109.4
Foreign						59.1						—						—						59.1
Commingled funds – domestic						—						—						311.7						311.7
Commingled funds – foreign						—						—						261.4						261.4
Private equity partnerships						—						—						14.5						14.5
Debt securities:
Government						180.0						0.7						—						180.7
Corporate bonds						—						414.3						—						414.3
Real estate and other real assets						—						—						2.7						2.7
Hedge funds						—						—						87.2						87.2
Total						$	372.2					$	415.0					$	677.5					$	1,464.7

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 2022 and 2021 year end are as follows: 

						Target						2022						2021
Asset category:
Equity securities*						40%						40%						43%
Debt securities* and cash and cash equivalents						49%						49%						45%
Insurance contracts and hedge funds						11%						11%						12%
Total						100%						100%						100%
Fair value of plan assets (Amounts in millions)												$166.8						$246.2

* 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 2022 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						$	0.5					$	—					$	—					$	0.5
Commingled funds – multi-strategy						—						—						113.4						113.4
Debt securities:
Government						11.6						—						—						11.6
Corporate bonds						—						23.1						—						23.1
Insurance contracts						—						18.2						—						18.2
Total						$	12.1					$	41.3					$	113.4					$	166.8

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 2021 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						$	1.8					$	—					$	—					$	1.8
Commingled funds – multi-strategy						—						—						172.5						172.5
Debt securities:
Government						13.9						—						—						13.9
Corporate bonds						—						28.1						—						28.1
Insurance contracts						—						29.9						—						29.9
Total						$	15.7					$	58.0					$	172.5					$	246.2

Snap-on’s VEBA plan target allocation and actual weighted-average asset allocation by asset category and fair value of plan assets as of 2022 and 2021 year end are as follows: 

						Target						2022						2021
Asset category:
Debt securities and cash and cash equivalents						46%						48%						44%
Equity securities						29%						29%						34%
Hedge funds						25%						23%						22%
Total						100%						100%						100%
Fair value of plan assets (Amounts in millions)												$11.2						$13.7

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 2022 year end:

(Amounts in millions)						Quoted Prices for Identical Assets (Level 1)						Investments Measured at NAV						Total
Asset category:
Cash and cash equivalents						$	0.4					$	—					$	0.4
Debt securities						4.9						—						4.9
Equity securities						—						3.3						3.3
Hedge fund						—						2.6						2.6
Total						$	5.3					$	5.9					$	11.2

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 2021 year end: 

(Amounts in millions)						Quoted Prices for Identical Assets (Level 1)						Investments Measured at NAV						Total
Asset category:
Cash and cash equivalents						$	0.3					$	—					$	0.3
Debt securities						5.8						—						5.8
Equity securities						—						4.6						4.6
Hedge fund						—						3.0						3.0
Total						$	6.1					$	7.6					$	13.7

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