XML 20 R10.htm IDEA: XBRL DOCUMENT v3.23.2
Revenue Recognition
 6 Months Ended
Jul. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue RecognitionSnap-on recognizes revenue from the sale of tools, diagnostics, equipment, and related services based on when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services.
Revenue Disaggregation: The following table shows the consolidated revenues by revenue source:
Three Months EndedSix Months Ended
(Amounts in millions)July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Revenue from contracts with customers$1,184.6 $1,130.5 $2,361.1 $2,222.4 
Other revenues6.7 6.1 13.2 12.0 
Total net sales1,191.3 1,136.6 2,374.3 2,234.4 
Financial services revenue93.4 86.4 186.0 174.1 
Total revenues$1,284.7 $1,223.0 $2,560.3 $2,408.5 

Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings. Snap-on accounts for both intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments. Intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.
The following tables represent external net sales disaggregated by geography, based on the customers’ billing addresses:
For the Three Months Ended July 1, 2023
CommercialSnap-onRepair Systems
& IndustrialTools& InformationFinancialSnap-on
(Amounts in millions)
GroupGroupGroupServicesEliminationsIncorporated
Net sales:
North America*$144.3 $459.3 $285.9 $— $— $889.5 
Europe75.5 39.0 63.6 — — 178.1 
All other70.0 24.8 28.9 — — 123.7 
External net sales289.8 523.1 378.4 — — 1,191.3 
Intersegment net sales74.4 — 73.6 — (148.0)— 
Total net sales364.2 523.1 452.0 — (148.0)1,191.3 
Financial services revenue— — — 93.4 — 93.4 
Total revenue$364.2 $523.1 $452.0 $93.4 $(148.0)$1,284.7 
For the Six Months Ended July 1, 2023
Commercial Snap-onRepair Systems
& IndustrialTools& InformationFinancialSnap-on
(Amounts in millions)GroupGroupGroupServicesEliminationsIncorporated
Net sales:
North America*$281.9 $933.2 $567.7 $— $— $1,782.8 
Europe150.5 74.7 126.8 — — 352.0 
All other136.0 52.2 51.3 — — 239.5 
External net sales568.4 1,060.1 745.8 — — 2,374.3 
Intersegment net sales159.6 — 152.8 — (312.4)— 
Total net sales728.0 1,060.1 898.6 — (312.4)2,374.3 
Financial services revenue— — — 186.0 — 186.0 
Total revenue$728.0 $1,060.1 $898.6 $186.0 $(312.4)$2,560.3 
* North America is comprised of the United States, Canada and Mexico.
For the Three Months Ended July 2, 2022
Commercial Snap-onRepair Systems
& IndustrialTools& InformationFinancialSnap-on
(Amounts in millions)GroupGroupGroupServicesEliminationsIncorporated
Net sales:
North America*$128.7 $460.3 $254.7 $— $— $843.7 
Europe73.1 36.4 60.4 — — 169.9 
All other74.3 23.9 24.8 — — 123.0 
External net sales276.1 520.6 339.9 — — 1,136.6 
Intersegment net sales83.0 — 76.9 — (159.9)— 
Total net sales359.1 520.6 416.8 — (159.9)1,136.6 
Financial services revenue— — — 86.4 — 86.4 
Total revenue$359.1 $520.6 $416.8 $86.4 $(159.9)$1,223.0 
For the Six Months Ended July 2, 2022
CommercialSnap-onRepair Systems
& IndustrialTools& InformationFinancialSnap-on
(Amounts in millions)GroupGroupGroupServicesEliminationsIncorporated
Net sales:
North America*$242.4 $908.1 $497.5 $— $— $1,648.0 
Europe154.9 76.5 122.3 — — 353.7 
All other140.0 48.1 44.6 — — 232.7 
External net sales537.3 1,032.7 664.4 — — 2,234.4 
Intersegment net sales161.9 — 150.6 — (312.5)— 
Total net sales699.2 1,032.7 815.0 — (312.5)2,234.4 
Financial services revenue— — — 174.1 — 174.1 
Total revenue$699.2 $1,032.7 $815.0 $174.1 $(312.5)$2,408.5 
* North America is comprised of the United States, Canada and Mexico.
The following tables represent external net sales disaggregated by customer type:

For the Three Months Ended July 1, 2023
Commercial Snap-onRepair Systems
& IndustrialTools& InformationFinancialSnap-on
(Amounts in millions)GroupGroupGroupServicesEliminationsIncorporated
Net sales:
Vehicle service professionals$21.7 $523.1 $378.4 $— $— $923.2 
All other professionals268.1 — — — — 268.1 
External net sales289.8 523.1 378.4 — — 1,191.3 
Intersegment net sales74.4 — 73.6 — (148.0)— 
Total net sales364.2 523.1 452.0 — (148.0)1,191.3 
Financial services revenue— — — 93.4 — 93.4 
Total revenue$364.2 $523.1 $452.0 $93.4 $(148.0)$1,284.7 
For the Six Months Ended July 1, 2023
CommercialSnap-onRepair Systems
& IndustrialTools& InformationFinancialSnap-on
(Amounts in millions)GroupGroupGroupServicesEliminationsIncorporated
Net sales:
Vehicle service professionals$42.8 $1,060.1 $745.8 $— $— $1,848.7 
All other professionals525.6 — — — — 525.6 
External net sales568.4 1,060.1 745.8 — — 2,374.3 
Intersegment net sales159.6 — 152.8 — (312.4)— 
Total net sales728.0 1,060.1 898.6 — (312.4)2,374.3 
Financial services revenue— — — 186.0 — 186.0 
Total revenue$728.0 $1,060.1 $898.6 $186.0 $(312.4)$2,560.3 

For the Three Months Ended July 2, 2022
Commercial Snap-onRepair Systems
& IndustrialTools& InformationFinancialSnap-on
(Amounts in millions)GroupGroupGroupServicesEliminationsIncorporated
Net sales:
Vehicle service professionals$25.2 $520.6 $339.9 $— $— $885.7 
All other professionals250.9 — — — — 250.9 
External net sales276.1 520.6 339.9 — — 1,136.6 
Intersegment net sales83.0 — 76.9 — (159.9)— 
Total net sales359.1 520.6 416.8 — (159.9)1,136.6 
Financial services revenue— — — 86.4 — 86.4 
Total revenue$359.1 $520.6 $416.8 $86.4 $(159.9)$1,223.0 
For the Six Months Ended July 2, 2022
CommercialSnap-onRepair Systems
& IndustrialTools& InformationFinancialSnap-on
(Amounts in millions)GroupGroupGroupServicesEliminationsIncorporated
Net sales:
Vehicle service professionals$49.1 $1,032.7 $664.4 $— $— $1,746.2 
All other professionals488.2 — — — — 488.2 
External net sales537.3 1,032.7 664.4 — — 2,234.4 
Intersegment net sales161.9 — 150.6 — (312.5)— 
Total net sales699.2 1,032.7 815.0 — (312.5)2,234.4 
Financial services revenue— — — 174.1 — 174.1 
Total revenue$699.2 $1,032.7 $815.0 $174.1 $(312.5)$2,408.5 

Nature of goods and services: Snap-on derives net sales from a broad line of products and complementary services that are grouped into three categories: (i) tools; (ii) diagnostics, information and management systems; and (iii) equipment. The tools product category includes hand tools, power tools, tool storage products and other similar products. The diagnostics, information and management systems product category includes handheld and computer-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer (“OEM”) purchasing facilitation services, and warranty management systems and analytics to help OEM dealership service and repair shops (“OEM dealerships”) manage and track performance. The equipment product category includes solutions for the service of vehicles and industrial equipment. Snap-on supports the sale of its diagnostics and vehicle service shop equipment by offering training programs as well as after-sales support to its customers. Through its financial services businesses, Snap‑on derives revenue from various financing programs designed to facilitate the sales of its products and support its franchise business.

Approximately 90% of Snap-on’s net sales are products sold at a point in time through ship-and-bill performance obligations that also include repair services. The remaining sales revenue is earned over time primarily for software subscriptions, other subscription service agreements and extended warranty programs.
Snap-on enters into contracts related to the selling of tools, diagnostics, repair information, equipment and related services. At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services). To identify the performance obligations, Snap-on considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Contracts with customers are comprised of customer purchase orders, invoices and written contracts.

For certain performance obligations related to software subscriptions, extended warranty and other subscription agreements that are settled over time, Snap-on has elected not to disclose the value of unsatisfied performance obligations for: (i) contracts that have an original expected length of one year or less; (ii) contracts where revenue is recognized as invoiced; and (iii) contracts with variable consideration related to unsatisfied performance obligations. The remaining duration of these unsatisfied performance obligations range from one month up to 60 months. Snap-on had approximately $183.0 million of long-term contracts that have fixed consideration that extends beyond one year as of July 1, 2023. Snap-on expects to recognize approximately 65% of these contracts as revenue by the end of fiscal 2024, an additional 30% by the end of fiscal 2026, and the balance thereafter. 
Contract liabilities: Contract liabilities are recorded when cash payments are received in advance of Snap-on’s performance.  The timing of payment is typically on a monthly, quarterly or annual basis. The balance of total contract liabilities was $67.0 million and $63.3 million at July 1, 2023, and December 31, 2022, respectively. The current portion of contract liabilities is included in “Other accrued liabilities” and the non-current portion of such liabilities is included in “Other long-term liabilities” on the accompanying Condensed Consolidated Balance Sheets. During the three and six months ended July 1, 2023, Snap-on recognized $10.6 million and $45.3 million of revenue that was included in the $63.3 million contract liability balance at December 31, 2022, which was primarily from the amortization of software subscriptions, extended warranties and other subscription agreements.