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Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Income Taxes and Equity Earnings

The source of earnings before income taxes and equity earnings consisted of the following: 

(Amounts in millions)						2023						2022						2021
United States						$	1,143.7					$	1,028.7					$	911.4
Foreign						184.3						173.9						175.5
Total						$	1,328.0					$	1,202.6					$	1,086.9

Schedule of Components of Income Tax

The provision (benefit) for income taxes consisted of the following: 

(Amounts in millions)						2023						2022						2021
Current:
Federal						$	215.4					$	185.4					$	152.9
Foreign						55.2						45.2						48.2
State						41.5						48.4						37.5
Total current						312.1						279.0						238.6
Deferred:
Federal						(14.5)						(8.5)						6.1
Foreign						(3.9)						(2.1)						(0.3)
State						(0.3)						0.3						2.6
Total deferred						(18.7)						(10.3)						8.4
Total income tax provision						$	293.4					$	268.7					$	247.0

Schedule of 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: 

						2023						2022						2021
Statutory federal income tax rate						21.0%						21.0%						21.0%
Increase (decrease) in tax rate resulting from:
State income taxes, net of federal benefit						2.6						3.0						2.8
Noncontrolling interests						(0.4)						(0.4)						(0.4)
Repatriation of foreign earnings						(0.3)						(0.3)						(0.5)
Change in valuation allowance for deferred tax assets						0.2						0.3						0.2
Adjustments to tax accruals and reserves						(0.6)						(0.7)						0.3
Foreign rate differences						0.7						0.4						0.5
Excess tax benefits related to equity compensation						(0.8)						(0.5)						(1.0)
Other						(0.3)						(0.5)						(0.2)
Effective tax rate						22.1%						22.3%						22.7%

Schedule of Deferred Tax Assets and Liabilities

Temporary differences that give rise to the net deferred income tax liability as of 2023, 2022 and 2021 year end are as follows:

(Amounts in millions)						2023						2022						2021
Deferred income tax assets (liabilities):
Inventories						$	43.2					$	34.0					$	37.5
Accruals not currently deductible						68.6						66.9						77.6
Tax credit carryforward						5.2						4.2						1.2
Employee benefits						1.4						16.7						6.4
Net operating losses						48.0						47.9						35.0
Depreciation and amortization						(156.4)						(170.1)						(213.2)
Valuation allowance						(27.2)						(23.5)						(24.5)
Equity-based compensation						16.2						14.7						13.1
Undistributed non-U.S. earnings						(3.9)						(4.2)						(4.4)
Other						1.7						1.3						(1.9)
Net deferred income tax liability						$	(3.2)					$	(12.1)					$	(73.2)

Schedule of Operating Loss Carry Forwards

As of 2023 year end, Snap-on had tax net operating loss carryforwards totaling $180.4 million as follows:

(Amounts in millions)						State						Federal						Foreign						Total
Year of expiration:
2024-2028						$	0.3					$	—					$	32.6					$	32.9
2029-2033						—						—						20.7						20.7
2034-2038						—						—						34.8						34.8
2039-2043						—						—						41.5						41.5
2044-2048						—						—						6.6						6.6
Indefinite						—						—						43.9						43.9
Total net operating loss carryforwards						$	0.3					$	—					$	180.1					$	180.4

Schedule of Reconciliation of Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2023, 2022 and 2021:

(Amounts in millions)						2023						2022						2021
Unrecognized tax benefits at beginning of year						$	5.6					$	8.9					$	9.1
Gross increases – tax positions in prior periods						1.2						—						0.4
Gross decreases – tax positions in prior periods						—						(0.3)						(0.4)
Gross increases – tax positions in the current period						0.7						0.6						0.4
Settlements with taxing authorities						—						(3.0)						—
Lapsing of statutes of limitations						—						(0.6)						(0.6)
Unrecognized tax benefits at end of year						$	7.5					$	5.6					$	8.9

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