Snap-on (SNA) 10-K risk factor changes: FY2024 vs FY2023

We believe sales of many of our products are dependent on the [removed: changing vehicle repair requirements, the number of vehicles on the road, the] general aging of [removed: vehicles] [added: vehicles, increases in vehicle complexity, changes in vehicle technologies] and the number of [removed: miles driven.][added: vehicles on the road.]

While we believe that [removed: advances] [added: changes] in vehicle technologies provide us with opportunities to develop innovative products and solutions for the vehicle repair market, if we are not able to effectively execute on those possibilities, our business and results of operations could suffer.

Approximately [removed: 41%] [added: 39%] of our consolidated net revenues [added: (net sales plus financial services revenue)] in [removed: 2023] [added: 2024] were generated by the Snap-on Tools Group, which consists of Snap-on’s business operations primarily serving vehicle service and repair technicians through the company’s multinational mobile tool distribution channel.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 13 | | |

Any new products that we develop may not receive market acceptance or otherwise generate any meaningful net sales or profits for us relative to our [removed: expectations based on, among other factors, existing and anticipated investments in manufacturing capacity and commitments to fund advertising, marketing, promotional programs and research and development.][added: expectations.]

Intellectual property rights are an [removed: important and] integral component of our business and failure to obtain or maintain adequate protection of [removed: our intellectual property] [added: these] rights for any reason could have a material adverse effect on our business.

In addition, technological developments and enhancements of products and service offerings in our industry may require our expanded use of artificial intelligence [removed: (“AI”) and machine learning;] [added: (“AI”);] if we are unable to keep pace with the rate of these and other developments, our ability to effectively compete could be adversely affected.

Approximately [removed: 28%] [added: 29%] of our revenues in [removed: 2023] [added: 2024] were generated outside of the United States.

These also include changes in government policies and regulations, including those intended to address climate [removed: change,] [added: change and other sustainability-related factors,] imposition [added: of,] or increases in withholding and other taxes on remittances and other payments by international subsidiaries, increases in trade [removed: sanctions] [added: sanctions, tariffs] and other related measures, as well as exposure to liabilities under anti-bribery and anti-corruption laws in various countries, such as the U.S. Foreign Corrupt Practices Act.

Risks related to our non-U.S. operations could further include currency volatility, [added: supply chain inefficiencies,] transportation delays or interruptions, sovereign debt uncertainties and difficulties in enforcement of contract and intellectual property rights, as well as reputational risks related to, among other factors, different standards and practices among countries.

The [removed: February 2022] Russian invasion of Ukraine and the ongoing conflict in the region has led to sanctions and actions taken against Russia and Belarus by the United States, the [removed: U.K.,] [added: United Kingdom,] the European Union and others.

Any prolonged disruption in the operations of our existing manufacturing facilities, whether due to technical or labor difficulties, facility [added: expansion,] consolidation or closure actions, lack of raw material or component availability, destruction of or damage to any facility (as a result of natural disasters, climate or weather events, use and storage of hazardous materials, armed conflicts, sabotage, terrorism, civil [removed: unrest] [added: unrest, fire, flood] or other events), or other reasons, including outbreaks of infectious diseases, could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Associated unexpected variability has resulted, and in the future could result, in an increase in product costs and require Snap-on to increase prices [added: or reduce costs] to maintain margins.

Energy price increases raise both our operating costs and the costs of our materials, and we may not be able to increase our prices enough to offset these [removed: costs in certain areas.][added: costs.]

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 15 | | |

*Failure to maintain effective distribution of products and services could adversely impact [removed: revenue, gross margin] [added: revenue] and profitability.*

Moreover, since each distribution method has distinct [removed: risks, costs] [added: risks] and [removed: gross margins,] [added: costs,] our failure to implement the most advantageous balance in the delivery model for our products and services could adversely affect our [removed: revenue, gross margins] [added: revenue] and profitability.

Our information systems, like those of other companies and our [removed: third party] [added: third-party] service providers, are susceptible to malicious damage, intrusions and outages due to, among other events, viruses, cyber attacks, industrial espionage, phishing attempts, hacking, break-ins and similar events, as well as other breaches of security, natural disasters, power loss or telecommunications failures.

As we integrate, implement and deploy new information technology processes and enhance our information infrastructure across our global operations, we could experience disruptions that [removed: could] [added: may] have an adverse effect on our business, financial condition, results of operations and cash flows.

*Failure to attract, [added: develop,] retain and effectively manage qualified personnel could lead to a loss of revenue and/or profitability.*

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 17 | | |

[removed: We] [added: From time to time we] depend upon the availability of credit to operate our business, including the financing of receivables from end-user customers that are originated by our financial services businesses.

We are required to perform impairment tests on our goodwill and other intangible assets annually or at any time when events occur that could impact the value of our [removed: business] [added: operating] segments.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 19 | | |

The current focus on these matters is [removed: expected to result] [added: resulting] in additional and/or more restrictive regulations, such as the Corporate Sustainability Reporting Directive (CSRD) in the European Union and the [removed: proposed] [added: currently stayed] SEC regulations relating to climate change [removed: disclosures, and industry or third-party requirements and standards to reduce or mitigate climate change as well as other environmental or sustainability risks.][added: disclosures.]

We, our franchisees and our customers, and the economy as a whole, also may be affected by future world or local events outside our control, such as tariffs and other trade protection measures put in place by the United States or other countries, acts of terrorism, developments in the war on terrorism, armed conflicts (including the [removed: current] [added: ongoing] war in Ukraine, [removed: an escalation of the conflict] [added: as well as conflicts] in the Middle [removed: East,] [added: East] and other [removed: regional conflicts),] [added: regions),] civil unrest, conflicts in international situations, [added: supply chain inefficiencies, labor interruptions,] weather events and natural disasters, outbreaks of infectious diseases, as well as government-related developments or issues, including changes in tax laws and regulations, new or enhanced regulations related to climate change and other sustainability matters, and changes in financial accounting standards.

In addition, other risks and uncertainties not currently known to the company, or which Snap-on currently believes are not material, may become material and also negatively impact the company’s business, operating results, cash flows, financial condition and/or reputation.

In addition, the development of emerging vehicle drivetrains and advanced driver assistance systems (ADAS) has increased in recent years, and further innovation is expected to continue in the future.

The introduction of new products is an important element of our business.

Expansion of the conflict or changes in governmental and/or third party responses or actions could adversely impact our business, results of operations and financial condition.

Our efforts are intended to reduce the risk of, or moderate the consequences of, potential cyber threats and incidents.

As previously disclosed, in 2022, the company experienced and responded to a cyber incident that did not have a significant impact on the results of our operations.

In addition, various industry and third-party requirements or standards have been developed that are intended to reduce or mitigate climate change as well as other environmental or sustainability risks.

In addition, the number of electric and hybrid vehicles developed and sold has risen in recent years, and is expected to continue to increase in the future.

Sales from new products represent a significant portion of our net sales and are expected to continue to represent a significant component of our future net sales.

As part of the agreement related to the United Kingdom’s (“U.K.”) departure from the European Union (“Brexit”), there is a new series of customs and regulatory checks, including rules of origin and stringent local content requirements.

There are also restrictions on the free movement of people and temporary visas for work-related purposes have been re-introduced.

The implications of Brexit, including disruptions to trade and the movement of goods, services and people between the U.K. and the European Union or other countries, may lead to additional cost, delays and volatility in currency exchange rates, as well as create legal and global economic uncertainty.

These and other potential implications could adversely affect our business and results of operations.

The war in Ukraine has not had a material impact on our business and operations; however, expansion of the conflict beyond its current geographic, political and economic scope could adversely impact our business, results of operations and financial condition.

In the first quarter of 2022, as previously disclosed, Snap-on detected unusual activity in some areas of its information technology environment, quickly took down its network connections as part of the company’s defense protocols, launched a comprehensive analysis assisted by a leading external forensics firm, and notified law enforcement.

The company continued to pursue its commercial activities and restored connections as system interfaces were cleared.

This incident did not have a significant impact on the results of our operations, and we are not currently aware of a security breach at any third-party service provider that we believe could significantly affect our operations.

At times, world financial markets have been unstable and subject to uncertainty.

The timing of certain of these regulations has yet to be determined.

We believe our [removed: 2023] [added: 2024] operating performance demonstrates the [removed: continuing momentum of] [added: possibilities for growth across] our [removed: business,] [added: businesses,] confirms the special resilience of our markets, and reflects the considerable capability of our combined operations and our experienced team to [removed: overcome] [added: prevail in] the [removed: uncertainties] [added: difficulties] of the current [added: macroeconomic] environment.

Throughout the [removed: variability,] [added: uncertainty,] we maintained and further extended our ongoing advantages in our products, in our brands and in our people.

[removed: Snap-on’s] [added: Snap‑on’s] value proposition of making work easier for serious professionals is an ongoing strength as we [removed: move forward] [added: proceed] along our [added: strategic] runways for coherent growth:

- Enhancing the franchise network, where we continued to focus on helping our franchisees [removed: extend] [added: increase] their reach through innovative selling processes and productivity initiatives that break the traditional time and space barriers inherent in a mobile van;

Our strategic priorities and plans for [removed: 2024] [added: 2025 also] involve continuing to build on our Snap-on Value Creation Processes – our suite of strategic principles and processes we employ every day designed to create value, and employed in the areas of safety, quality, customer connection, innovation and Rapid Continuous Improvement (“RCI”).

On November 20, 2023, Snap-on acquired certain assets of SAVTEQ, Inc. [removed: (“SAVTEQ”),] [added: (“SAVTEQ”)] for a cash purchase price of $3.0 million.

SAVTEQ, based in Lexington, Kentucky, provides precise non-contact measuring capabilities that Snap-on [removed: intends to leverage] [added: is leveraging] in its product offerings.

The acquisition of Mountz [removed: complements] [added: has complemented] and [removed: expands] [added: expanded] Snap-on’s torque offerings to customers in a variety of critical industries including aerospace, transportation and advanced manufacturing.

Unless otherwise indicated, references in this document to “fiscal [removed: 2023”] [added: 2024”] or [removed: “2023”] [added: “2024”] refer to the fiscal year ended December [removed: 30, 2023;] [added: 28, 2024;] references to “fiscal [removed: 2022”] [added: 2023”] or [removed: “2022”] [added: “2023”] refer to the fiscal year ended December [removed: 31, 2022;] [added: 30, 2023;] and references to “fiscal [removed: 2021”] [added: 2022”] or [removed: “2021”] [added: “2022”] refer to the fiscal year ended [removed: January 1,] [added: December 31,] 2022.

References in this document to [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] year end refer to December [added: 28, 2024, December] 30, 2023, [added: and] December 31, 2022, [removed: and January 1, 2022,] respectively.

Snap-on’s [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] fiscal years each contained 52 weeks of operating results.

Fiscal [removed: 2022] [added: 2023] as Compared to Fiscal [removed: 2021][added: 2022]

A discussion regarding our financial condition and results of operations for fiscal [removed: 2022] [added: 2023] compared to fiscal [removed: 2021] [added: 2022] can be found under “Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on the Form 10-K for the fiscal year ended December [removed: 31, 2022,] [added: 30, 2023,] which was filed with the SEC on February [removed: 9, 2023,] [added: 16, 2024,] and is available on the SEC’s website at www.sec.gov as well as in the “Investors” section of our website at www.snapon.com.

References in [removed: this] Management’s Discussion and Analysis of Financial Condition and Results of Operations to “organic sales” refer to sales from continuing operations calculated in accordance with GAAP, adjusted to exclude acquisition-related sales and the impact of foreign currency translation.

[removed: Consolidated net] [added: Net] sales of [removed: $4,730.2] [added: $1,198.7] million in [removed: 2023] [added: the fourth quarter of 2024] represented an increase of [removed: $237.4] [added: $2.1] million, or [removed: 5.3%,] [added: 0.2%,] from [removed: 2022] [added: 2023] levels, reflecting a [removed: $250.7] [added: $2.0] million, or [removed: 5.6%,] [added: 0.2%,] organic gain and [removed: $5.5] [added: $2.1] million of acquisition-related sales, partially offset by [removed: $18.8] [added: $2.0] million of unfavorable foreign currency translation.

Operating earnings before financial services of [removed: $1,039.9] [added: $265.2] million in [removed: 2023] [added: the fourth quarter of 2024] compared to [removed: $941.2] [added: $257.9] million in [removed: 2022,] [added: 2023,] an increase of [removed: $98.7] [added: $7.3] million or [removed: 10.5%.][added: 2.8%.]

As a percentage of net sales, operating earnings before financial services were [removed: 22.0%] [added: 22.7%] compared to [removed: 20.9%] [added: 22.0%] last year.

As a percentage of revenues (net sales plus financial services revenue), operating earnings were [removed: 25.7%] [added: 26.3%] compared to [removed: 24.9%] [added: 25.7%] last year.

Net earnings attributable to Snap-on of [removed: $1,011.1] [added: $1,043.9] million, or [removed: $18.76] [added: $19.51] per diluted share, in [removed: 2023] [added: 2024, including a $17.5 million, or $0.32 per diluted share, after-tax benefit from the legal payments,] compared to [removed: $911.7] [added: $1,011.1] million, or [removed: $16.82] [added: $18.76] per diluted share, in [removed: 2022,] [added: 2023,] an increase of [removed: $99.4] [added: $32.8] million or [removed: $1.94] [added: $0.75] per diluted share.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 29 | | |

The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government and military, power generation, [removed: transportation] [added: transportation,] and technical education market segments (collectively, “critical industries”), primarily through direct and distributor channels.

Segment net sales of [removed: $1,458.3] [added: $1,476.8] million in [removed: 2023] [added: 2024] represented an increase of [removed: $59.1] [added: $18.5] million, or [removed: 4.2%,] [added: 1.3%,] from [removed: 2022] [added: 2023] levels, reflecting a [removed: $69.7] [added: $1.5] million, or [removed: 5.0%,] [added: 0.1%,] organic gain and [removed: $5.5] [added: $23.3] million of acquisition-related sales, partially offset by [removed: $16.1] [added: $6.3] million of unfavorable [added: foreign] currency translation.

The organic increase [added: is] primarily [removed: reflects] [added: due to] a [removed: double-digit] gain in sales to customers in critical [removed: industries.][added: industries, including a high single-digit increase in specialty torque.]

The Commercial & Industrial Group intends to focus on the following strategic priorities in [removed: 2024:][added: 2025:]

- Investing in innovation that, guided by that understanding of work, delivers an ongoing stream of productivity-enhancing [removed: custom engineered] [added: custom-engineered] solutions; and

Segment net sales of [removed: $2,088.8] [added: $1,797.9] million in [removed: 2023] [added: 2024] represented an increase of [removed: $16.8] [added: $16.7] million, or [removed: 0.8%,] [added: 0.9%,] from [removed: 2022] [added: 2023] levels, reflecting [removed: a $25.0] [added: an $18.1] million, or [removed: 1.2%,] [added: 1.0%,] organic sales gain, partially offset by [removed: $8.2] [added: $1.4] million of unfavorable foreign currency translation.

The organic [removed: increase] [added: decrease] is [removed: primarily] due to a mid single-digit [added: decline in the U.S., partially offset by a low single-digit] gain in the segment’s international [removed: operations, while activity in the U.S. operations was essentially flat.][added: operations.]

The Snap-on Tools Group intends to focus on the following strategic priorities in [removed: 2024:][added: 2025:]

- Developing new programs and products to [removed: expand market coverage,] [added: match current technician preferences,] reaching new [removed: technician] customers and increasing penetration with existing customers;

- [removed: Increasing] [added: Expanding] investment in new product innovation and development; and

Segment net sales of [removed: $1,781.2] [added: $1,989.2] million in [removed: 2023] [added: 2024] represented [removed: an increase] [added: a decrease] of [removed: $114.3] [added: $99.6] million, or [removed: 6.9%,] [added: 4.8%,] from [removed: 2022] [added: 2023] levels, reflecting a [removed: $111.7] [added: $100.9] million, or [removed: 6.7%,] [added: 4.8%,] organic sales [removed: increase and $2.6] [added: decline, partially offset by $1.3] million of favorable foreign currency translation.

The Repair Systems & Information Group intends to focus on the following strategic priorities in [removed: 2024:][added: 2025:]

- [removed: Continuing] [added: Advancing] productivity [removed: advancements] through RCI initiatives and [removed: leveraging] [added: the optimization] of resources; and

Financial services revenue of [removed: $378.1] [added: $401.0] million in [removed: 2023] [added: 2024] compared to [removed: $349.7] [added: $378.1] million in [removed: 2022.][added: 2023.]

Operating earnings from financial services of [removed: $270.5] [added: $276.9] million in [removed: 2023] [added: 2024] compared to [removed: $266.0] [added: $270.5] million last year.

Financial Services intends to focus on the following strategic priorities in [removed: 2024:][added: 2025:]

Net cash provided by operating activities of [removed: $1,154.2] [added: $1,217.5] million in [removed: 2023] [added: 2024] compared to [removed: $675.2] [added: $1,154.2] million in [removed: 2022.][added: 2023.]

The [removed: $479.0 million] increase is primarily due to a [removed: $352.9] [added: $34.3] million [removed: change] [added: increase] in net [removed: operating assets and liabilities,] [added: earnings] and a [removed: $100.7] [added: $18.0] million [removed: increase] [added: change] in net [removed: earnings.][added: operating assets and liabilities.]

Net cash used by investing activities of $331.8 million in 2023 included additions to finance receivables of $1,029.0 million, [removed: which were] partially offset by collections of $833.5 million, as well as [removed: a use of cash of] $42.6 million [removed: for the acquisitions] of [removed: Mountz and SAVTEQ.][added: cash used for acquisitions.]

Net cash used by investing activities of [removed: $206.2] [added: $204.1] million in [removed: 2022] [added: 2024] included additions to finance receivables of [removed: $955.8] [added: $966.0] million, partially offset by collections of [removed: $826.9 million, as well as $0.5 million of cash provided by acquisitions.][added: $837.8 million.]

Consolidated net sales of $4,707.4 million in 2024 represented a decrease of $22.8 million, or 0.5%, from 2023 levels, reflecting a $40.6 million, or 0.9%, organic decline and $5.5 million of unfavorable foreign currency translation, partially offset by $23.3 million of acquisition-related sales.

Operating earnings before financial services of $1,068.8 million in 2024, including a $22.5 million benefit for the final payments associated with a legal matter, which were received in the first six months of 2024 (the “legal payments”), compared to $1,039.9 million in 2023.

Operating earnings of $1,345.7 million in 2024, including a $22.5 million benefit from the legal payments, compared to $1,310.4 million in 2023.

The organic increase primarily reflects a mid single-digit gain in sales to customers in critical industries, partially offset by a double-digit reduction in the power tools operation and a low single-digit decline in the European-based hand tools business.

Segment operating earnings of $242.1 million in 2024 compared to $226.1 million in 2023, an increase of $16.0 million or 7.1%.

- Leveraging our investments in emerging markets to support growth initiatives;

Segment operating earnings of $447.3 million in 2024 compared to $493.8 million in 2023, a decrease of $46.5 million or 9.4%.

The organic improvement primarily reflects a mid single-digit increase in activity with OEM dealerships, partially offset by a low single-digit decline in sales of undercar equipment.

Segment operating earnings of $455.2 million in 2024 compared to $433.2 million in 2023, an increase of $22.0 million or 5.1%.

- Further building our proprietary databases to enhance software solutions;

Originations of $1,182.9 million in 2024 represented a decrease of $52.6 million, or 4.3%, from 2023 levels.

The $63.3 million increase is primarily due to a $34.3 million increase in net earnings and a $18.0 million change in net operating assets and liabilities.

| Gross profit | | | | | | 2,377.9 | | | | | | 50.5 | | % | | | | 2,349.1 | | | | | | 49.7 | | % | | | | 28.8 | | | | | | 1.2 | | % |

| Operating expenses | | | | | | (1,309.1) | | | | | | (27.8) | | % | | | | (1,309.2) | | | | | | (27.7) | | % | | | | 0.1 | | | | | | — | | |

| Operating earnings | | | | | | 1,345.7 | | | | | | 26.3 | | % | | | | 1,310.4 | | | | | | 25.7 | | % | | | | 35.3 | | | | | | 2.7 | | % |

| Interest expense | | | | | | (49.6) | | | | | | (0.9) | | % | | | | (49.9) | | | | | | (1.0) | | % | | | | 0.3 | | | | | | 0.6 | | % |

| Earnings before income taxes | | | | | | 1,373.1 | | | | | | 26.9 | | % | | | | 1,328.0 | | | | | | 26.0 | | % | | | | 45.1 | | | | | | 3.4 | | % |

| Income tax expense | | | | | | (304.2) | | | | | | (6.0) | | % | | | | (293.4) | | | | | | (5.7) | | % | | | | (10.8) | | | | | | (3.7) | | % |

| Net earnings | | | | | | 1,068.9 | | | | | | 20.9 | | % | | | | 1,034.6 | | | | | | 20.3 | | % | | | | 34.3 | | | | | | 3.3 | | % |

Net sales of $4,707.4 million in 2024 represented a decrease of $22.8 million, or 0.5%, from 2023 levels, reflecting a $40.6 million, or 0.9%, organic decline and $5.5 million of unfavorable foreign currency translation, partially offset by $23.3 million of acquisition-related sales.

Operating expenses of $1,309.1 million in 2024, including a $22.5 million benefit from the legal payments, compared to $1,309.2 million last year.

Operating earnings before financial services of $1,068.8 million in 2024, including a $22.5 million benefit from the legal payments, compared to $1,039.9 million in 2023.

As a percentage of net sales, operating earnings before financial services were 22.7% compared to 22.0% last year.

Operating earnings of $1,345.7 million in 2024, including a $22.5 million benefit from the legal payments, compared to $1,310.4 million in 2023.

Net earnings attributable to Snap-on of $1,043.9 million, or $19.51 per diluted share, in 2024, including a $17.5 million, or $0.32 per diluted share, after-tax benefit from the legal payments, compared to $1,011.1 million, or $18.76 per diluted share, in 2023, an increase of $32.8 million or $0.75 per diluted share.

The Financial Services operating segment is evaluated based on financial services revenue and segment operating earnings.

Corporate expenses primarily reflect stock-based compensation and other costs not attributable to an operating segment.

| *(Amounts in millions)* | | | | | | 2024 | | | | | | | | | | | | 2023 | | | | | | | | | | | | Change | | | | | | | | |

| External net sales | | | | | | $ | 1,187.6 | | | | | 80.4 | | % | | | | $ | 1,145.6 | | | | | 78.6 | | % | | | | $ | 42.0 | | | | | 3.7 | | % |

| Intersegment net sales | | | | | | 289.2 | | | | | | 19.6 | | % | | | | 312.7 | | | | | | 21.4 | | % | | | | (23.5) | | | | | | (7.5) | | % |

| Segment cost of goods sold | | | | | | (868.6) | | | | | | (58.8) | | % | | | | (887.5) | | | | | | (60.9) | | % | | | | 18.9 | | | | | | 2.1 | | % |

| Segment gross profit | | | | | | 608.2 | | | | | | 41.2 | | % | | | | 570.8 | | | | | | 39.1 | | % | | | | 37.4 | | | | | | 6.6 | | % |

| Segment operating expenses | | | | | | (366.1) | | | | | | (24.8) | | % | | | | (344.7) | | | | | | (23.6) | | % | | | | (21.4) | | | | | | (6.2) | | % |

| Segment operating earnings | | | | | | $ | 242.1 | | | | | 16.4 | | % | | | | $ | 226.1 | | | | | 15.5 | | % | | | | $ | 16.0 | | | | | 7.1 | | % |

| *(Amounts in millions)* | | | | | | 2024 | | | | | | | | | | | | 2023 | | | | | | | | | | | | Change | | | | | | | | |

| Segment cost of goods sold | | | | | | (1,050.3) | | | | | | (52.8) | | % | | | | (1,107.7) | | | | | | (53.0) | | % | | | | 57.4 | | | | | | 5.2 | | % |

| Segment gross profit | | | | | | 938.9 | | | | | | 47.2 | | % | | | | 981.1 | | | | | | 47.0 | | % | | | | (42.2) | | | | | | (4.3) | | % |

| Segment operating expenses | | | | | | (491.6) | | | | | | (24.7) | | % | | | | (487.3) | | | | | | (23.4) | | % | | | | (4.3) | | | | | | (0.9) | | % |

| Segment operating earnings | | | | | | $ | 447.3 | | | | | 22.5 | | % | | | | $ | 493.8 | | | | | 23.6 | | % | | | | $ | (46.5) | | | | | (9.4) | | % |

Segment net sales of $1,989.2 million in 2024 represented a decrease of $99.6 million, or 4.8%, from 2023 levels, reflecting a $100.9 million, or 4.8%, organic sales decline, partially offset by $1.3 million of favorable foreign currency translation.

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

Operating earnings of $1,310.4 million in 2023 compared to $1,207.2 million in 2022, an increase of $103.2 million or 8.5%.

Operating earnings of $226.1 million in 2023, including $9.0 million of unfavorable foreign currency effects, compared to $197.6 million in 2022, an increase of $28.5 million or 14.4%.

- Continuing to invest in emerging market growth initiatives;

Operating earnings of $493.8 million in 2023, including $12.5 million of unfavorable foreign currency effects, compared to $458.7 million in 2022, an increase of $35.1 million or 7.7%.

The organic gain primarily reflects double-digit increases in sales of undercar equipment and high single-digit gains in activity with OEM dealerships.

Operating earnings of $433.2 million in 2023, including $1.3 million of favorable foreign currency effects, compared to $393.3 million in 2022, an increase of $39.9 million or 10.1%.

- Leveraging integration of software solutions;

Originations of $1,235.5 million in 2023 represented an increase of $82.4 million, or 7.1%, from 2022 levels.

| Gross profit | | | | | | 2,349.1 | | | | | | 49.7 | | % | | | | 2,181.1 | | | | | | 48.5 | | % | | | | 168.0 | | | | | | 7.7 | | % |

| Operating expenses | | | | | | (1,309.2) | | | | | | (27.7) | | % | | | | (1,239.9) | | | | | | (27.6) | | % | | | | (69.3) | | | | | | (5.6) | | % |

| Operating earnings | | | | | | 1,310.4 | | | | | | 25.7 | | % | | | | 1,207.2 | | | | | | 24.9 | | % | | | | 103.2 | | | | | | 8.5 | | % |

| Interest expense | | | | | | (49.9) | | | | | | (1.0) | | % | | | | (47.1) | | | | | | (1.0) | | % | | | | (2.8) | | | | | | (5.9) | | % |

| Earnings before income taxes and equity earnings | | | | | | 1,328.0 | | | | | | 26.0 | | % | | | | 1,202.6 | | | | | | 24.8 | | % | | | | 125.4 | | | | | | 10.4 | | % |

| Income tax expense | | | | | | (293.4) | | | | | | (5.7) | | % | | | | (268.7) | | | | | | (5.5) | | % | | | | (24.7) | | | | | | (9.2) | | % |

| Net earnings | | | | | | 1,034.6 | | | | | | 20.3 | | % | | | | 933.9 | | | | | | 19.3 | | % | | | | 100.7 | | | | | | 10.8 | | % |

These improvements were partially offset by 30 bps of unfavorable foreign currency effects.

Operating expenses of $1,309.2 million in 2023 compared to $1,239.9 million last year.

Identifiable assets by segment are those assets used in the respective reportable segment’s operations.

Corporate assets consist of cash and cash equivalents (excluding cash held at Financial Services), deferred income taxes and certain other assets.

| External net sales | | | | | | $ | 1,145.6 | | | | | 78.6 | | % | | | | $ | 1,058.3 | | | | | 75.6 | | % | | | | $ | 87.3 | | | | | 8.2 | | % |

| Intersegment net sales | | | | | | 312.7 | | | | | | 21.4 | | % | | | | 340.9 | | | | | | 24.4 | | % | | | | (28.2) | | | | | | (8.3) | | % |

| Cost of goods sold | | | | | | (887.5) | | | | | | (60.9) | | % | | | | (880.5) | | | | | | (62.9) | | % | | | | (7.0) | | | | | | (0.8) | | % |

| Gross profit | | | | | | 570.8 | | | | | | 39.1 | | % | | | | 518.7 | | | | | | 37.1 | | % | | | | 52.1 | | | | | | 10.0 | | % |

| Operating expenses | | | | | | (344.7) | | | | | | (23.6) | | % | | | | (321.1) | | | | | | (23.0) | | % | | | | (23.6) | | | | | | (7.3) | | % |

| Segment operating earnings | | | | | | $ | 226.1 | | | | | 15.5 | | % | | | | $ | 197.6 | | | | | 14.1 | | % | | | | $ | 28.5 | | | | | 14.4 | | % |

These improvements were partially offset by 40 bps of unfavorable foreign currency effects.

| Cost of goods sold | | | | | | (1,107.7) | | | | | | (53.0) | | % | | | | (1,141.7) | | | | | | (55.1) | | % | | | | 34.0 | | | | | | 3.0 | | % |

| Gross profit | | | | | | 981.1 | | | | | | 47.0 | | % | | | | 930.3 | | | | | | 44.9 | | % | | | | 50.8 | | | | | | 5.5 | | % |

| Operating expenses | | | | | | (487.3) | | | | | | (23.4) | | % | | | | (471.6) | | | | | | (22.8) | | % | | | | (15.7) | | | | | | (3.3) | | % |

| Segment operating earnings | | | | | | $ | 493.8 | | | | | 23.6 | | % | | | | $ | 458.7 | | | | | 22.1 | | % | | | | $ | 35.1 | | | | | 7.7 | | % |

These improvements were partially offset by 50 bps of unfavorable foreign currency effects.

As a result of these factors, segment operating earnings of $493.8 million in 2023, including $12.5 million of unfavorable foreign currency effects, compared to $458.7 million in 2022, an increase of $35.1 million or 7.7%.

| External net sales | | | | | | $ | 1,495.8 | | | | | 84.0 | | % | | | | $ | 1,362.5 | | | | | 81.7 | | % | | | | $ | 133.3 | | | | | 9.8 | | % |

| Intersegment net sales | | | | | | 285.4 | | | | | | 16.0 | | % | | | | 304.4 | | | | | | 18.3 | | % | | | | (19.0) | | | | | | (6.2) | | % |

| Cost of goods sold | | | | | | (984.0) | | | | | | (55.2) | | % | | | | (934.8) | | | | | | (56.1) | | % | | | | (49.2) | | | | | | (5.3) | | % |

| Gross profit | | | | | | 797.2 | | | | | | 44.8 | | % | | | | 732.1 | | | | | | 43.9 | | % | | | | 65.1 | | | | | | 8.9 | | % |

| Operating expenses | | | | | | (364.0) | | | | | | (20.5) | | % | | | | (338.8) | | | | | | (20.3) | | % | | | | (25.2) | | | | | | (7.4) | | % |

| Segment operating earnings | | | | | | $ | 433.2 | | | | | 24.3 | | % | | | | $ | 393.3 | | | | | 23.6 | | % | | | | $ | 39.9 | | | | | 10.1 | | % |

The estimated maximum potential net one-day loss in fair value, calculated using the VAR model, as of [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] year end was [removed: $15.2] [added: $9.8] million, consisting of a [removed: $15.8] [added: $10.0] million loss on interest rate-sensitive financial instruments and a [removed: $0.6] [added: $0.2] million gain on foreign currency-sensitive financial instruments; and [removed: $18.2] [added: $15.2] million, consisting of a [removed: $18.0] [added: $15.8] million loss on interest rate-sensitive financial instruments and a [removed: $0.2] [added: $0.6] million [removed: loss] [added: gain] on foreign currency-sensitive financial instruments, respectively.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 51 | | |

Snap-on is exposed to credit losses in the event of non-performance by the counterparties to its various financial agreements, including [removed: its] [added: current or future] foreign currency forward contracts, interest rate swap agreements, treasury lock agreements and prepaid equity forward agreements.

For example, the company is monitoring the [removed: continuing] global economic impact of and developments related to [removed: Russia’s invasion of Ukraine and] the [removed: conflict] [added: ongoing war] in [added: Ukraine as well as conflicts in] the Middle [removed: East.][added: East and other regions.]

Associated unexpected [removed: price] [added: cost] increases could result in an erosion of product margins or require Snap-on to increase prices to customers to maintain [removed: margins.][added: margins if other cost reduction efforts do not offset raw material cost increases.]

To the extent that commodity prices increase and the company does not have firm pricing agreements with its suppliers, the company may experience margin declines to the extent that it is not able to increase the selling prices of its [removed: products.][added: products or reduce other costs.]

In addition, the company continues to monitor developments resulting from the United Kingdom’s exit from the European Union, and the effects this may have on the world economy and the company.

Snap-on’s reportable [removed: business] [added: operating] segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services.

See Note 19 to the Consolidated Financial Statements for information on [removed: business] [added: operating] segments and foreign operations.

The Snap-on Tools Group segment [removed: revenues include] [added: net sales reflect] external net sales, while the Commercial & Industrial Group and the Repair Systems & Information Group segment [removed: revenues] [added: net sales] include both external and intersegment net sales.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 5 | | |

| *(Amounts in millions)* | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | |

| Tools | | | | | | $ | [removed: 2,528.9] [added: 2,546.2] | | | | | $ | [removed: 2,399.4] [added: 2,528.9] | | | | | $ | [removed: 2,343.0] [added: 2,399.4] | |

| Diagnostics, information and management systems | | | | | | [removed: 991.2] [added: 1,028.1] | | | | | | [removed: 942.4] [added: 991.2] | | | | | | [removed: 892.5] [added: 942.4] | | |

| Equipment | | | | | | [removed: 1,210.1] [added: 1,133.1] | | | | | | [removed: 1,151.0] [added: 1,210.1] | | | | | | [removed: 1,016.5] [added: 1,151.0] | | |

| | | | | | | $ | [removed: 4,730.2] [added: 4,707.4] | | | | | $ | [removed: 4,492.8] [added: 4,730.2] | | | | | $ | [removed: 4,252.0] [added: 4,492.8] | |

| Car-O-Liner | | | | | | Collision repair [removed: equipment,] [added: equipment] and information [removed: and truck alignment] systems | | |

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 7 | | |

Financing revenue [removed: from contract originations] is recognized over the life of the underlying contracts, with interest or finance charges computed primarily on the average daily balances of the underlying contracts.

Franchise fee revenue totaled [removed: $18.7] [added: $19.4] million, [removed: $18.4] [added: $18.7] million and [removed: $17.3] [added: $18.4] million in fiscal [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021,] [added: 2022,] respectively.

As of [removed: 2023] [added: 2024] year end, company-owned routes comprised approximately 5% of the total route population.

As of [removed: 2023] [added: 2024] year end, Snap-on’s total route count was approximately 4,700, including approximately 3,400 routes in the United States.

A significant proportion of shop equipment sales in North America under the [removed: Blackhawk,] Car-O-Liner, Challenger, Hofmann, John Bean and Pro-Cut brands, diagnostic products under the Snap-on brand, and information and shop management products under the Mitchell1 [removed: brand] [added: and Dealer-FX brands] are made by direct and independent sales forces that have responsibility for national and other accounts.

As of [removed: 2023] [added: 2024] year end, Snap-on had industrial sales associates and independent distributors primarily in the United States, Canada and in various European, Latin American, Middle Eastern, [removed: Asian] [added: Asia Pacific] and African countries, with the United States representing the majority of Snap-on’s total industrial sales.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 9 | | |

Wheel service and other vehicle service equipment are sold through distributors primarily under brands including [removed: Blackhawk,] Car-O-Liner, [removed: Cartec,] Challenger, Ecotechnics, Hofmann, John Bean, and Pro-Cut.

Diagnostics and equipment products are marketed through distributors in South America and Asia, and through both [added: distributors and] a direct sales force [removed: and distributors] in Europe under the Snap-on, Blue-Point and Sun brands.

Snap-on believes it has secured [removed: a] sufficient [removed: amount of] raw materials and purchased components for the near future to meet the expected general sales demand.

The company does not currently anticipate any significant impact in [removed: 2024] [added: 2025] from raw material and purchased component cost or availability issues.

As of [removed: 2023] [added: 2024] year end, Snap-on and its subsidiaries held approximately [removed: 890] [added: 940] active and pending patents in the United States and approximately [removed: 3,170] [added: 3,420] active and pending patents outside of the United States.

However, the increasing global focus on climate change [removed: may result] [added: is resulting] in new [removed: or] [added: and/or] more stringent environmental or climate-related regulations or standards.

As of December [removed: 30, 2023,] [added: 28, 2024,] Snap-on employed approximately [removed: 13,200] [added: 13,000] people worldwide, of which approximately [removed: 7,500] [added: 7,300] were employed in the United States and approximately 5,700 were outside the United States.

[removed: Based on Snap-on’s most recently] [added: Recently] filed EEO-1 [removed: data, which] [added: data] is available under “ESG Reporting” in the “Investors” section of the company’s website at [removed: www.snapon.com, females constitute 26.4% and minorities constitute 25.2% of the company’s workforce in the United States.][added: www.snapon.com.]

Additionally, on a global basis, approximately [removed: 2,700] [added: 2,300] employees are represented by unions and/or covered under collective bargaining agreements with varying expiration dates through [removed: 2026.][added: 2027.]

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 11 | | |

For [removed: 2023,] [added: 2024,] Snap-on had an overall safety incident rate of [removed: 1.16] [added: 1.08] (number of injuries and illnesses multiplied by 200,000, divided by hours worked).

[removed: Additionally, to] [added: To] further our support of makers and fixers, both within and outside our company, Snap-on is partnering with national nonprofit organizations and community colleges to leverage career and technical education to expand the opportunities [removed: for underrepresented groups] in our facilities, as well as in the critical industries we serve and [removed: beyond.][added: beyond, for people from all walks of life.]

To date, over [removed: 300,000] [added: 350,000] students have earned Snap-on certifications, preparing them for successful and satisfying careers across various technical disciplines.

In [removed: 2023,] [added: 2024,] the company’s total Scope 1 and Scope 2 GHG emissions of [removed: 99,021] [added: 89,085] metric tons of carbon dioxide equivalent (“CO2e”) reflected an intensity of [removed: 20.9] [added: 18.9] (metric tons of CO2e, divided by net sales in millions).

Snap-on’s largest geographic market is the United States.

In addition, Snap-on has a meaningful presence across continental Europe and in the Asia Pacific region, as well as in Canada and the United Kingdom.

Snap-on’s operating segments, which represent Snap-on’s reportable segments, are based on the organizational structure used by the Chief Executive Officer, its chief operating decision maker (“CODM”), to make operating and investment determinations and to assess performance.

Snap-on evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the Repair Systems & Information Group operating segments based on segment net sales and segment operating earnings while the Financial Services operating segment is evaluated based on segment revenue and segment operating earnings.

Corporate expenses primarily reflect stock-based compensation and other costs not attributable to an operating segment.

- Snap-on is committed to providing equal opportunities across all of our stakeholders and the company does not tolerate discrimination.

Snap-on’s largest geographic markets include the United States, Europe, Canada and Asia Pacific.

| | | | | | | | | |

Snap-on’s business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance.

Snap-on evaluates the performance of its operating segments based on segment revenues and segment operating earnings.

| Blackhawk | | | | | | Collision repair equipment | | |

- Snap-on seeks to advance our progress on diversity and inclusion within our company and is committed to providing equal opportunities.

The company does not tolerate discrimination.

As part of our efforts, Snap-on has instituted company-wide training on inclusion and unconscious bias, and has expanded internship, mentorship and recruitment activities for underrepresented groups.

The company is also investing in and building relationships with several Historically Black Colleges and Universities (HBCUs) to help advance their missions and broaden the pipeline of Black engineers and other technically trained graduates.

For the fiscal year ended December [removed: 30, 2023,] [added: 28, 2024,] or

The aggregate market value of voting and non-voting common equity held by non-affiliates (excludes [removed: 954,861] [added: 1,071,273] shares held by directors and executive officers) computed by reference to the price [removed: ($288.19)] [added: ($261.39)] at which common equity was last sold as of the last business day of the registrant’s most recently completed second fiscal quarter [removed: (July 1, 2023)] [added: (June 29, 2024)] was [removed: $15.0] [added: $13.5] billion.

The number of shares of Common Stock ($1.00 par value) of the registrant outstanding as of February [removed: 9, 2024,] [added: 7, 2025,] was [removed: 52,713,542] [added: 52,393,235] shares.

Part III of this Annual Report on Form 10-K incorporates by reference certain information that will be set forth in Snap-on’s Proxy Statement, which is expected to first be mailed to shareholders on or about March 12, [removed: 2024,] [added: 2025,] prepared for the Annual Meeting of Shareholders scheduled for April [removed: 25, 2024.][added: 24, 2025.]

| [Item [removed: 1](#ica6252d77a4f493493c3ed8c67f0cea7_13)] [added: 1](#icd972937e91f4f2b994057ec91ee509c_13)] | | | [removed: [Business](#ica6252d77a4f493493c3ed8c67f0cea7_13)] [added: [Business](#icd972937e91f4f2b994057ec91ee509c_13)] | | | [removed: [4](#ica6252d77a4f493493c3ed8c67f0cea7_13)] [added: [4](#icd972937e91f4f2b994057ec91ee509c_13)] | | |

| [Item [removed: 1A](#ica6252d77a4f493493c3ed8c67f0cea7_16)] [added: 1A](#icd972937e91f4f2b994057ec91ee509c_16)] | | | [Risk [removed: Factors](#ica6252d77a4f493493c3ed8c67f0cea7_16)] [added: Factors](#icd972937e91f4f2b994057ec91ee509c_16)] | | | [removed: [13](#ica6252d77a4f493493c3ed8c67f0cea7_16)] [added: [13](#icd972937e91f4f2b994057ec91ee509c_16)] | | |

| [Item [removed: 1B](#ica6252d77a4f493493c3ed8c67f0cea7_19)] [added: 1B](#icd972937e91f4f2b994057ec91ee509c_19)] | | | [Unresolved Staff [removed: Comments](#ica6252d77a4f493493c3ed8c67f0cea7_19)] [added: Comments](#icd972937e91f4f2b994057ec91ee509c_19)] | | | [removed: [21](#ica6252d77a4f493493c3ed8c67f0cea7_19)] [added: [21](#icd972937e91f4f2b994057ec91ee509c_19)] | | |

| [Item [removed: 2](#ica6252d77a4f493493c3ed8c67f0cea7_22)] [added: 2](#icd972937e91f4f2b994057ec91ee509c_25)] | | | [removed: [Properties](#ica6252d77a4f493493c3ed8c67f0cea7_22)] [added: [Properties](#icd972937e91f4f2b994057ec91ee509c_25)] | | | [removed: [23](#ica6252d77a4f493493c3ed8c67f0cea7_22)] [added: [23](#icd972937e91f4f2b994057ec91ee509c_25)] | | |

| [Item [removed: 3](#ica6252d77a4f493493c3ed8c67f0cea7_25)] [added: 3](#icd972937e91f4f2b994057ec91ee509c_28)] | | | [Legal [removed: Proceedings](#ica6252d77a4f493493c3ed8c67f0cea7_25)] [added: Proceedings](#icd972937e91f4f2b994057ec91ee509c_28)] | | | [removed: [25](#ica6252d77a4f493493c3ed8c67f0cea7_25)] [added: [25](#icd972937e91f4f2b994057ec91ee509c_28)] | | |

| [Item [removed: 4](#ica6252d77a4f493493c3ed8c67f0cea7_28)] [added: 4](#icd972937e91f4f2b994057ec91ee509c_31)] | | | [Mine Safety [removed: Disclosures](#ica6252d77a4f493493c3ed8c67f0cea7_28)] [added: Disclosures](#icd972937e91f4f2b994057ec91ee509c_31)] | | | [removed: [25](#ica6252d77a4f493493c3ed8c67f0cea7_28)] [added: [25](#icd972937e91f4f2b994057ec91ee509c_31)] | | |

| [Item [removed: 5](#ica6252d77a4f493493c3ed8c67f0cea7_34)] [added: 5](#icd972937e91f4f2b994057ec91ee509c_37)] | | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#ica6252d77a4f493493c3ed8c67f0cea7_34)] [added: Securities](#icd972937e91f4f2b994057ec91ee509c_37)] | | | [removed: [25](#ica6252d77a4f493493c3ed8c67f0cea7_34)] [added: [25](#icd972937e91f4f2b994057ec91ee509c_37)] | | |

| [Item [removed: 6](#ica6252d77a4f493493c3ed8c67f0cea7_37)] [added: 6](#icd972937e91f4f2b994057ec91ee509c_40)] | | | [removed: [\[Reserved\]](#ica6252d77a4f493493c3ed8c67f0cea7_37)] [added: [\[Reserved\]](#icd972937e91f4f2b994057ec91ee509c_40)] | | | [removed: [27](#ica6252d77a4f493493c3ed8c67f0cea7_37)] [added: [27](#icd972937e91f4f2b994057ec91ee509c_40)] | | |

| [Item [removed: 7](#ica6252d77a4f493493c3ed8c67f0cea7_40)] [added: 7](#icd972937e91f4f2b994057ec91ee509c_43)] | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#ica6252d77a4f493493c3ed8c67f0cea7_40)] [added: Operations](#icd972937e91f4f2b994057ec91ee509c_43)] | | | [removed: [28](#ica6252d77a4f493493c3ed8c67f0cea7_40)] [added: [28](#icd972937e91f4f2b994057ec91ee509c_43)] | | |

| [Item [removed: 7A](#ica6252d77a4f493493c3ed8c67f0cea7_52)] [added: 7A](#icd972937e91f4f2b994057ec91ee509c_55)] | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#ica6252d77a4f493493c3ed8c67f0cea7_52)] [added: Risk](#icd972937e91f4f2b994057ec91ee509c_55)] | | | [removed: [51](#ica6252d77a4f493493c3ed8c67f0cea7_52)] [added: [51](#icd972937e91f4f2b994057ec91ee509c_55)] | | |

| [Item [removed: 8](#ica6252d77a4f493493c3ed8c67f0cea7_55)] [added: 8](#icd972937e91f4f2b994057ec91ee509c_58)] | | | [Financial Statements and Supplementary [removed: Data](#ica6252d77a4f493493c3ed8c67f0cea7_55)] [added: Data](#icd972937e91f4f2b994057ec91ee509c_58)] | | | [removed: [53](#ica6252d77a4f493493c3ed8c67f0cea7_55)] [added: [53](#icd972937e91f4f2b994057ec91ee509c_58)] | | |

| [Item [removed: 9](#ica6252d77a4f493493c3ed8c67f0cea7_58)] [added: 9](#icd972937e91f4f2b994057ec91ee509c_61)] | | | [Changes in and Disagreements With Accountants on Accounting and Financial [removed: Disclosure](#ica6252d77a4f493493c3ed8c67f0cea7_58)] [added: Disclosure](#icd972937e91f4f2b994057ec91ee509c_61)] | | | [removed: [53](#ica6252d77a4f493493c3ed8c67f0cea7_58)] [added: [53](#icd972937e91f4f2b994057ec91ee509c_61)] | | |

| [Item [removed: 9A](#ica6252d77a4f493493c3ed8c67f0cea7_61)] [added: 9A](#icd972937e91f4f2b994057ec91ee509c_64)] | | | [Controls and [removed: Procedures](#ica6252d77a4f493493c3ed8c67f0cea7_61)] [added: Procedures](#icd972937e91f4f2b994057ec91ee509c_64)] | | | [removed: [53](#ica6252d77a4f493493c3ed8c67f0cea7_61)] [added: [53](#icd972937e91f4f2b994057ec91ee509c_64)] | | |

| [Item [removed: 9B](#ica6252d77a4f493493c3ed8c67f0cea7_64)] [added: 9B](#icd972937e91f4f2b994057ec91ee509c_67)] | | | [Other [removed: Information](#ica6252d77a4f493493c3ed8c67f0cea7_64)] [added: Information](#icd972937e91f4f2b994057ec91ee509c_67)] | | | [removed: [55](#ica6252d77a4f493493c3ed8c67f0cea7_64)] [added: [55](#icd972937e91f4f2b994057ec91ee509c_67)] | | |

| [Item [removed: 9C](#ica6252d77a4f493493c3ed8c67f0cea7_67)] [added: 9C](#icd972937e91f4f2b994057ec91ee509c_73)] | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#ica6252d77a4f493493c3ed8c67f0cea7_67)] [added: Inspections](#icd972937e91f4f2b994057ec91ee509c_73)] | | | [removed: [55](#ica6252d77a4f493493c3ed8c67f0cea7_67)] [added: [55](#icd972937e91f4f2b994057ec91ee509c_73)] | | |

| [Item [removed: 10](#ica6252d77a4f493493c3ed8c67f0cea7_73)] [added: 10](#icd972937e91f4f2b994057ec91ee509c_79)] | | | [Directors, Executive Officers and Corporate [removed: Governance](#ica6252d77a4f493493c3ed8c67f0cea7_73)] [added: Governance](#icd972937e91f4f2b994057ec91ee509c_79)] | | | [removed: [56](#ica6252d77a4f493493c3ed8c67f0cea7_73)] [added: [56](#icd972937e91f4f2b994057ec91ee509c_79)] | | |

| [Item [removed: 11](#ica6252d77a4f493493c3ed8c67f0cea7_76)] [added: 11](#icd972937e91f4f2b994057ec91ee509c_82)] | | | [Executive [removed: Compensation](#ica6252d77a4f493493c3ed8c67f0cea7_76)] [added: Compensation](#icd972937e91f4f2b994057ec91ee509c_82)] | | | [removed: [57](#ica6252d77a4f493493c3ed8c67f0cea7_76)] [added: [57](#icd972937e91f4f2b994057ec91ee509c_82)] | | |

| [Item [removed: 12](#ica6252d77a4f493493c3ed8c67f0cea7_79)] [added: 12](#icd972937e91f4f2b994057ec91ee509c_85)] | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#ica6252d77a4f493493c3ed8c67f0cea7_79)] [added: Matters](#icd972937e91f4f2b994057ec91ee509c_85)] | | | [removed: [57](#ica6252d77a4f493493c3ed8c67f0cea7_79)] [added: [57](#icd972937e91f4f2b994057ec91ee509c_85)] | | |

| [Item [removed: 13](#ica6252d77a4f493493c3ed8c67f0cea7_82)] [added: 13](#icd972937e91f4f2b994057ec91ee509c_88)] | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#ica6252d77a4f493493c3ed8c67f0cea7_82)] [added: Independence](#icd972937e91f4f2b994057ec91ee509c_88)] | | | [removed: [57](#ica6252d77a4f493493c3ed8c67f0cea7_82)] [added: [57](#icd972937e91f4f2b994057ec91ee509c_88)] | | |

| [Item [removed: 14](#ica6252d77a4f493493c3ed8c67f0cea7_85)] [added: 14](#icd972937e91f4f2b994057ec91ee509c_91)] | | | [Principal Accountant Fees and [removed: Services](#ica6252d77a4f493493c3ed8c67f0cea7_85)] [added: Services](#icd972937e91f4f2b994057ec91ee509c_91)] | | | [removed: [57](#ica6252d77a4f493493c3ed8c67f0cea7_85)] [added: [57](#icd972937e91f4f2b994057ec91ee509c_91)] | | |

| [Item [removed: 15](#ica6252d77a4f493493c3ed8c67f0cea7_91)] [added: 15](#icd972937e91f4f2b994057ec91ee509c_97)] | | | [Exhibit and Financial Statement [removed: Schedules](#ica6252d77a4f493493c3ed8c67f0cea7_91)] [added: Schedules](#icd972937e91f4f2b994057ec91ee509c_97)] | | | [removed: [58](#ica6252d77a4f493493c3ed8c67f0cea7_91)] [added: [58](#icd972937e91f4f2b994057ec91ee509c_97)] | | |

| [Item [removed: 16](#ica6252d77a4f493493c3ed8c67f0cea7_106)] [added: 16](#icd972937e91f4f2b994057ec91ee509c_112)] | | | [Form 10-K [removed: Summary](#ica6252d77a4f493493c3ed8c67f0cea7_106)] [added: Summary](#icd972937e91f4f2b994057ec91ee509c_112)] | | | [removed: [60](#ica6252d77a4f493493c3ed8c67f0cea7_106)] [added: [60](#icd972937e91f4f2b994057ec91ee509c_112)] | | |

| Consent of Independent Registered Public Accounting Firm | | | | | | [removed: 120] [added: 122] | | |

- Snap-on’s capability to successfully implement future strategies with respect to its existing [removed: businesses;][added: businesses, including increasing or optimizing selling, designing, or manufacturing capacity;]

- The effects of external economic factors, including adverse developments in world financial markets, disruptions related to tariffs and other trade or sanctions issues, and global supply chain inefficiencies, including as a result of the [removed: current] [added: ongoing] war in [removed: Ukraine] [added: Ukraine, as well as conflicts in the Middle East] and other [removed: regional conflicts;][added: regions;]

- Snap-on’s ability to successfully manage changes in prices and the availability of [removed: energy sources, including gasoline;][added: energy;]

- [removed: Snap-on’s] [added: The company’s] ability to withstand disruption arising from natural disasters, including climate-related events or other unusual occurrences;

- [removed: The impact of labor interruptions or challenges, and] Snap-on’s ability to effectively manage human capital resources;

- Weakness in certain geographic areas, including as a result of localized [removed: recessions, and the impact of matters related to the United Kingdom’s exit from the European Union;][added: recessions;]

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 3 | | |

- The effects of new [added: or changing] requirements, legislation, regulations or government-related developments or issues, as well as third party actions, including those addressing climate change;

- The impact of outbreaks of infectious diseases as well as the effects of governmental actions related thereto on [added: Snap‑on’s business, which could have the potential to amplify the impact of the other risks facing the company; and]

Unless otherwise indicated, references in this document to “fiscal [removed: 2023”] [added: 2024”] or [removed: “2023”] [added: “2024”] refer to the fiscal year ended December [removed: 30, 2023;] [added: 28, 2024;] references to “fiscal [removed: 2022”] [added: 2023”] or [removed: “2022”] [added: “2023”] refer to the fiscal year ended December [removed: 31, 2022;] [added: 30, 2023;] and references to “fiscal [removed: 2021”] [added: 2022”] or [removed: “2021”] [added: “2022”] refer to the fiscal year ended [removed: January 1,] [added: December 31,] 2022.

References in this document to [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] year end refer to December [added: 28, 2024, December] 30, 2023, [added: and] December 31, 2022, [removed: and January 1, 2022,] respectively.

Snap-on’s [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] fiscal years each contained 52 weeks of operating results.

| [Item 1C](#icd972937e91f4f2b994057ec91ee509c_22) | | | [Cybersecurity](#icd972937e91f4f2b994057ec91ee509c_22) | | | [21](#icd972937e91f4f2b994057ec91ee509c_19) | | |

| [Signatures](#icd972937e91f4f2b994057ec91ee509c_202) | | | | | | [117](#icd972937e91f4f2b994057ec91ee509c_202) | | |

| Certifications | | | | | | 123 | | |

- The impact of production and sourcing challenges, including labor interruptions and supply chain disruptions, to both Snap-on and relevant third parties;

| [Item 1C](#ica6252d77a4f493493c3ed8c67f0cea7_1521) | | | [C](#ica6252d77a4f493493c3ed8c67f0cea7_1521)[ybersecurity](#ica6252d77a4f493493c3ed8c67f0cea7_1521) | | | [21](#ica6252d77a4f493493c3ed8c67f0cea7_19) | | |

| [Signatures](#ica6252d77a4f493493c3ed8c67f0cea7_196) | | | | | | [115](#ica6252d77a4f493493c3ed8c67f0cea7_196) | | |

| Certifications | | | | | | 121 | | |

Snap-on’s business, which could have the potential to amplify the impact of the other risks facing the company; and

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 21 | | |

The VP of IT has served in information technology leadership roles at Snap-on for over [removed: 12] [added: 13] years.

Snap-on’s facilities in the United States occupy approximately [removed: 4.3] [added: 4.5] million square feet, of which 71% is owned, including its corporate and general office facility located in Kenosha, Wisconsin.

Snap-on’s facilities outside the United States occupy approximately [removed: 4.4] [added: 4.5] million square feet, of which approximately [removed: 73%] [added: 72%] is owned.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 23 | | |

The following table provides information about our corporate headquarters and financial services operations, and each of Snap-on’s principal active manufacturing locations, distribution centers and software development locations (exceeding 50,000 square feet) as of [removed: 2023] [added: 2024] year end:

| Kenosha, Wisconsin | | | | | | [removed: Distribution] [added: Manufacturing, distribution] and corporate | | | | | | Owned | | | | | | SOT, C&I, RS&I | | |

| Pleasant Prairie, Wisconsin | | | | | | Distribution | | | | | | Owned [added: and leased] | | | | | | SOT, C&I, RS&I | | |

Snap-on had [removed: 52,694,017] [added: 52,381,673] shares of common stock outstanding as of [removed: 2023] [added: 2024] year end.

Snap-on’s stock is listed on the New York Stock Exchange under the ticker symbol “SNA.” At February [removed: 9, 2024,] [added: 7, 2025,] there were [removed: 3,992] [added: 3,836] registered holders of Snap-on common stock.

The following chart discloses information regarding the shares of Snap-on’s common stock repurchased by the company during the fourth quarter of fiscal [removed: 2023,] [added: 2024,] all of which were purchased pursuant to the Board’s authorizations that the company has publicly announced.

| Period | | | | | | Shares purchased | | | | | | Average price per share | | | | | | Shares purchased as part of publicly announced plans or programs | | | | | | Approximate value of shares that may yet be purchased under publicly announced plans or programs* [added: *(in millions)*] | | |

| Total/Average | | | | | | [removed: 217,000] [added: 315,000] | | | | | | [removed: $272.53] [added: 351.04] | | | | | | [removed: 217,000] [added: 315,000] | | | | | | N/A | | |

* Subject to further adjustment pursuant to the 1996 Authorization described below, as of December [removed: 30, 2023,] [added: 28, 2024,] the approximate value of shares that may yet be purchased pursuant to the outstanding Board authorizations discussed below is [removed: $282.9] [added: $429.4] million.

- On [removed: November 4, 2021,] [added: August 8, 2024,] the Board authorized the repurchase of up to $500 million of the company’s common stock (the [removed: “2021] [added: “2024] Authorization”).

The [removed: 2021] [added: 2024] Authorization will expire when the aggregate repurchase price limit is met, unless terminated earlier by the Board.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 25 | | |

The following chart discloses information regarding transactions by a counterparty in shares of Snap-on’s common stock during the fourth quarter of fiscal [removed: 2023] [added: 2024] pursuant to a prepaid equity forward agreement (the “Agreement”) that is intended to reduce the impact of market risk associated with the stock-based portion of the company’s deferred compensation plans.

The graph below illustrates the cumulative total shareholder return on Snap-on common stock since December 31, [removed: 2018,] [added: 2019,] of a $100 investment, assuming that dividends were reinvested quarterly.

[removed: ][added: ]

| Fiscal Year [removed: Ended (1)] [added: Ended*] | | | | | | Snap-on Incorporated | | | | | | S&P 500 Industrials | | | | | | S&P 500 | | |

[removed: (1)] [added: *] The company’s fiscal year ends on the Saturday that is on or nearest to December 31 of each year; for ease of calculation, the fiscal year end is assumed to be December 31.

| 09/29/24 to 10/26/24 | | | | | | 21,000 | | | | | | $ | 324.26 | | | | | 21,000 | | | | | | $ | 493.6 | |

| 10/27/24 to 11/23/24 | | | | | | 157,000 | | | | | | 350.74 | | | | | | 157,000 | | | | | | 460.0 | | |

| 11/24/24 to 12/28/24 | | | | | | 137,000 | | | | | | 355.49 | | | | | | 137,000 | | | | | | 429.4 | | |

| 09/29/24 to 10/26/24 | | | | | | (9,500) | | | | | | $ | 325.27 | |

| 10/27/24 to 11/23/24 | | | | | | — | | | | | | — | | |

| 11/24/24 to 12/28/24 | | | | | | 400 | | | | | | 361.00 | | |

| Total/Average | | | | | | (9,100) | | | | | | 326.71 | | |

| December 31, 2019 | | | | | | $ | 100.00 | | | | | $ | 100.00 | | | | | $ | 100.00 | |

| December 31, 2020 | | | | | | 104.01 | | | | | | 111.06 | | | | | | 118.40 | | |

| December 31, 2021 | | | | | | 134.00 | | | | | | 134.52 | | | | | | 152.39 | | |

| December 31, 2022 | | | | | | 145.95 | | | | | | 127.15 | | | | | | 124.79 | | |

| December 31, 2023 | | | | | | 189.28 | | | | | | 150.20 | | | | | | 157.59 | | |

| December 31, 2024 | | | | | | 228.34 | | | | | | 176.44 | | | | | | 197.02 | | |

| 10/01/23 to 10/28/23 | | | | | | 32,000 | | | | | | $252.77 | | | | | | 32,000 | | | | | | $296.3 million | | |

| 10/29/23 to 11/25/23 | | | | | | 86,000 | | | | | | $268.43 | | | | | | 86,000 | | | | | | $275.2 million | | |

| 11/26/23 to 12/30/23 | | | | | | 99,000 | | | | | | $282.48 | | | | | | 99,000 | | | | | | $282.9 million | | |

| 10/01/23 to 10/28/23 | | | | | | — | | | | | | — | | |

| 10/29/23 to 11/25/23 | | | | | | (1,000) | | | | | | $252.03 | | |

| 11/26/23 to 12/30/23 | | | | | | 500 | | | | | | $279.25 | | |

| Total/Average | | | | | | (500) | | | | | | $261.10 | | |

| December 31, 2018 | | | | | | $100.00 | | | | | | $100.00 | | | | | | $100.00 | | |

| December 31, 2019 | | | | | | $119.54 | | | | | | $129.37 | | | | | | $131.49 | | |

| December 31, 2020 | | | | | | $124.33 | | | | | | $143.68 | | | | | | $155.68 | | |

| December 31, 2021 | | | | | | $160.19 | | | | | | $174.02 | | | | | | $200.37 | | |

| December 31, 2022 | | | | | | $174.47 | | | | | | $164.49 | | | | | | $164.08 | | |

| December 31, 2023 | | | | | | $226.27 | | | | | | $194.31 | | | | | | $207.21 | | |

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 27 | | |

In accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), the company’s management evaluated, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of the company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December [removed: 30, 2023.][added: 28, 2024.]

Based upon their evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of December [removed: 30, 2023,] [added: 28, 2024,] to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission rules and forms, and to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

There has been no change in the company’s internal control over financial reporting during the quarter ended December [removed: 30, 2023,] [added: 28, 2024,] that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f)).

Based on this assessment, the company’s management believes that, as of December [removed: 30, 2023,] [added: 28, 2024,] our internal control over financial reporting was effective at a reasonable assurance level.

The company’s internal control over financial reporting as of December [removed: 30, 2023,] [added: 28, 2024,] has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in its attestation report, which is included herein.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 53 | | |

To the Shareholders and [added: the] Board of Directors of Snap-on [removed: Incorporated:][added: Incorporated]

We have audited the internal control over financial reporting of Snap-on Incorporated and subsidiaries (the “Company”) as of December [removed: 30, 2023,] [added: 28, 2024,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December [removed: 30, 2023,] [added: 28, 2024,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December [removed: 30, 2023,] [added: 28, 2024,] of the Company and our report dated February [removed: 15, 2024,] [added: 13, 2025,] expressed an unqualified opinion on those financial statements.

| February 13, 2025 | | | | | | | | |

| February 15, 2024 | | | | | | | | |

[removed: Now, in] [added: In] accordance with the [removed: new] disclosure requirement set forth in Item 408(a) of Regulation S-K, the following table discloses any officer (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) or director who adopted a contract, instruction or written plan for the sale of securities of the company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) during the quarterly period ended December [removed: 30, 2023:][added: 28, 2024:]

| [removed: Name] [added: Name] and [removed: Title] [added: Title] | | | [removed: Type] [added: Type] of [removed: Plan] [added: Plan] | | | [removed: Adoption Date*] [added: Adoption Date*] | | | [removed: Duration] [added: Duration] or End [removed: Date] [added: Date] | | | [removed: Aggregate] [added: Aggregate] Number of Securities to be [removed: Sold] [added: Sold] | | | [removed: Description] [added: Description] of Trading [removed: Arrangement] [added: Arrangement] | | |

| Nicholas T. Pinchuk Chairman, President and Chief Executive Officer | | | Rule 10b5-1 trading arrangement | | | October [removed: 26, 2023] [added: 24, 2024] | | | December [removed: 11, 2024] [added: 4, 2025] | | | [removed: 130,000] [added: 135,000] | | | Exercises of vested stock options expiring in February [removed: 2025,] [added: 2026,] and sales of shares to cover exercise price and estimated tax [removed: withholding] [added: withholding, with the retention of the remaining shares] | | |

| Aldo J. Pagliari Senior Vice President - Finance and Chief Financial Officer | | | Rule 10b5-1 trading arrangement | | | October [removed: 24, 2023] [added: 22, 2024] | | | February [removed: 12, 2025] [added: 10, 2026] | | | [removed: 34,000] [added: 35,000] | | | Exercises of vested stock options expiring in February [removed: 2025,] [added: 2026,] and sales of shares to cover exercise price and estimated tax [removed: withholding] [added: withholding, with the retention of the remaining shares] | | |

[removed: *Trading] [added: * Trading] under the Rule 10b5-1 trading arrangement will not commence until after the applicable waiting period and the conclusion of each officer’s prior Rule 10b5-1 trading arrangement.

Historically, the company’s executive officers and directors have entered into Rule 10b5-1 trading arrangements periodically.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 55 | | |

Incorporated by reference to the sections entitled “Item 1: Election of Directors,” “Corporate Governance Practices and Board Information” and “Other Information” in Snap-on’s [removed: 2024] [added: 2025] Annual Meeting Proxy Statement, which is expected to be mailed to shareholders on or about March 12, [removed: 2024] [added: 2025] (the [removed: “2024] [added: “2025] Proxy Statement”).

The Section 16(a) filing compliance disclosure pursuant to Item 405 of Regulation S-K is contained in Snap-on’s [removed: 2024] [added: 2025] Proxy Statement in the section entitled “Other Information – Delinquent Section 16(a) Reports,” and is incorporated herein by reference.

Information regarding Snap-on’s executive officers, including their ages, business experience (for at least the last five years) and titles as of December [removed: 30, 2023,] [added: 28, 2024,] is presented below:

Pinchuk* [removed: (77)] [added: (78)] – Chairman of the Board of Directors since 2009, President and Chief Executive Officer since December 2007, and President and Chief Operating Officer during 2007.

Pagliari* [removed: (69)] [added: (70)] – Senior Vice President – Finance and Chief Financial Officer since 2010.

Arregui* [removed: (58)] [added: (59)] – Senior Vice President and President – Commercial Group since 2019.

[removed: Banerjee* (73)] [added: Bauerschmidt* (58)] – Senior Vice President – Human Resources [removed: and Chief Development Officer] since [removed: 2015.][added: April 2024.]

*Iain Boyd* [removed: (61)] [added: (62)] – Vice President – Operations Development since 2015.

Chambers* [removed: (59)] [added: (60)] – Senior Vice President and President – Snap-on Tools Group since 2019.

Lemerand* [removed: (61)] [added: (62)] – Vice President and Chief Information Officer since 2017.

Miller* [removed: (53)] [added: (54)] – Vice President, General Counsel and Secretary since 2018.

Ozolins* [removed: (52)] [added: (53)] – Vice President and Controller since 2021.

Ward* [removed: (71)] [added: (72)] *–* Senior Vice President and President – Repair Systems & Information Group since 2010.

Snap-on’s executive officers include [removed: a woman,] [added: two women,] a veteran of the U.S. Army, and [removed: two executives] [added: an executive] who [removed: are] [added: is] ethnically diverse.

Information regarding the company’s insider trading policies and procedures is contained in “Corporate Governance Practices and Board Information – Insider Trading Policy” in the 2025 Proxy Statement, which is incorporated herein by reference.

*Mary E.

Vice President – Human Resources from 2018 to 2024.

President of SNA Europe from 2015 to 2019.

*Anup R.

President of Commercial Group from 2015 to 2019.

The information required by Item 11 is contained in Snap-on’s [removed: 2024] [added: 2025] Proxy Statement in the sections entitled “Executive Compensation,” “Board Compensation,” “Compensation Committee Report,” and “Other Information” and is incorporated herein by reference.

The following table sets forth information about Snap-on’s equity compensation plans at [removed: 2023] [added: 2024] year end:

| Equity compensation plans [added: not] approved by security holders | | | | | | [removed: 2,324,586 (1)] [added: 60,955 (4)] | | | | | | [removed: $179.53(2)] [added: Not Applicable] | | | | | | [removed: 3,380,444 (3)] [added: \- (5)] | | |

| Equity compensation plans [removed: not] approved by security holders | | | | | | [removed: 62,015 (4)] [added: 2,058,429 (1)] | | | | | | [removed: Not Applicable] [added: $193.39 (2)] | | | | | | [removed: \- (5)] [added: 2,820,103 (3)] | | |

(1)Includes (i) stock options and stock appreciation rights (“SARs”) to acquire [removed: 2,236,949] [added: 1,981,254] shares granted under the 2011 Incentive Stock and Awards Plan (the “2011 Plan”); (ii) [removed: 80,623] [added: 69,976] shares represented by restricted stock units granted under the 2011 Plan; and (iii) [removed: 7,014] [added: 7,199] shares represented by deferred share units under the Directors’ Fee Plan.

Excludes [removed: 314,451] [added: 176,278] shares issuable in connection with the vesting of performance share awards under the 2011 Plan.

(3)Includes (i) [removed: 2,633,565] [added: 2,095,463] shares reserved for issuance under the 2011 Plan; (ii) [removed: 195,281] [added: 194,840] shares reserved for issuance under the Directors’ Fee Plan; and (iii) [removed: 551,598] [added: 529,800] shares reserved for issuance under the employee stock purchase plan.

The additional information required by Item 12 is contained in Snap-on’s [removed: 2024] [added: 2025] Proxy Statement in the sections entitled “Executive Compensation,” “Security Ownership of Certain Beneficial Owners and Management,” and “Other Information,” and is incorporated herein by reference.

| Total | | | | | | 2,119,384 | | | | | | $193.39 (2) | | | | | | 2,820,103 (5) | | |

| Total | | | | | | 2,386,601 | | | | | | $179.53 (2) | | | | | | 3,380,444 (5) | | |

Incorporated by reference to the sections entitled “Corporate Governance Practices and Board Information – Board Information” and “Other Information – Transactions with the Company” in Snap-on’s [removed: 2024] [added: 2025] Proxy Statement.

Incorporated by reference to the section entitled “Deloitte & Touche LLP Fee Disclosure” in Snap-on’s [removed: 2024] [added: 2025] Proxy Statement.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 57 | | |

Unless otherwise indicated, references to “fiscal [removed: 2023”] [added: 2024”] or [removed: “2023”] [added: “2024”] refer to the fiscal year ended December [removed: 30, 2023;] [added: 28, 2024;] references to “fiscal [removed: 2022”] [added: 2023”] or [removed: “2022”] [added: “2023”] refer to the fiscal year ended December [removed: 31, 2022;] [added: 30, 2023;] and references to “fiscal [removed: 2021”] [added: 2022”] or [removed: “2021”] [added: “2022”] refer to the fiscal year ended [removed: January 1,] [added: December 31,] 2022.

References to [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] year end refer to December [added: 28, 2024, December] 30, 2023, [added: and] December 31, 2022, [removed: and January 1, 2022,] respectively.

- Consolidated Statements of Earnings for the [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] fiscal years.

- Consolidated Statements of Comprehensive Income for the [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] fiscal years.

- Consolidated Balance Sheets as of [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] year end.

- Consolidated Statements of Equity for the [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] fiscal years.

- Consolidated Statements of Cash Flows for the [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021] [added: 2022] fiscal years.

| (3) | | | | | | (a) | | | | | | [Restated Certificate of Incorporation of Snap-on Incorporated, as amended through April 25, 2013 (incorporated by reference to Exhibit 3.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended September 28, 2013 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312513401902/d594575dex31.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312513401902/d594575dex31.htm)] | | |

| | | | | | | (b) | | | | | | [Bylaws of Snap-on Incorporated, as amended and restated as of [removed: April](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm) [27](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm)[, 202](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm)[3](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm) [(incorporated] [added: April 27, 2023 (incorporated] by reference to Exhibit 3.1 to Snap-on’s Current Report on Form 8-K dated [removed: April](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm) [27](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm)[, 202](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm)[3](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm) [(Commission] [added: April 27, 2023 (Commission] File No. [removed: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312520099701/d898543dex31.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000009144023000016/exhibit31-amendedrestatedb.htm)] | | |

| (4) | | | | | | (a) | | | | | | [Indenture, dated as of January 8, 2007, between Snap-on Incorporated and U.S. Bank National Association as trustee (incorporated by reference to Exhibit (4)(b) to Form S-3 Registration Statement (Registration No. [removed: 333-139863))](http://www.sec.gov/Archives/edgar/data/91440/000110465907001412/a07-1136_1ex4db.htm)] [added: 333-139863))](https://www.sec.gov/Archives/edgar/data/91440/000110465907001412/a07-1136_1ex4db.htm)] | | |

| | | | | | | (b) | | | | | | [Officer’s Certificate, dated as of February 21, 2017, providing for the $300,000,000 3.25% Notes due 2027 (the “2027 Notes”) (incorporated by reference to Exhibit 4.2 to Snap-on’s Current Report on Form 8-K dated February 15, 2017 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312517049758/d351106dex42.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312517049758/d351106dex42.htm)] | | |

| | | | | | | (c) | | | | | | [Officer’s Certificate, dated as of February 26, 2018, providing for the $400,000,000 4.10% Notes due 2048 (the “2048 Notes”) (incorporated by reference to Exhibit 4.2 to Snap-on’s Current Report on Form 8-K dated February 20, 2018 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312518057792/d514019dex42.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312518057792/d514019dex42.htm)] | | |

Except for the foregoing, Snap-on and its subsidiaries have no unregistered long-term debt agreement for which the related outstanding debt exceeds 10% of consolidated total assets as of December [removed: 30, 2023.][added: 28, 2024.]

| | | | | | | (a) | | | | | | [Amended and Restated Snap-on Incorporated 2001 Incentive Stock and Awards Plan (Amended and Restated as of April 27, 2006, as further amended on August 6, 2009) (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended October 3, 2009 (Commission File No. 1-7724)) (superseded except as to outstanding [removed: awards)](http://www.sec.gov/Archives/edgar/data/91440/000119312509217103/dex101.htm)] [added: awards)](https://www.sec.gov/Archives/edgar/data/91440/000119312509217103/dex101.htm)] | | | | | |

| | | | | | | (c) | | | | | | [Form of Restated Executive Agreement between Snap-on Incorporated and each of its executive officers (incorporated by reference to Exhibit 10(c) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312518047130/d491312dex10c.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312518047130/d491312dex10c.htm)] | | | | | |

| | | | | | | (d)(1) | | | | | | [Form of Indemnification Agreement between Snap-on Incorporated and certain executive officers (incorporated by reference to Exhibit 10.1 to Snap-on’s Annual Report on Form 10-K for the fiscal year ended January 1, 2011 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312511038686/dex10d1.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312511038686/dex10d1.htm)] | | | | | |

| | | | | | | (d)(2) | | | | | | [Form of Indemnification Agreement between Snap-on Incorporated and directors (incorporated by reference to Exhibit 10.1 to Snap-on’s Annual Report on Form 10-K for the fiscal year ended January 1, 2011 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312511038686/dex10d2.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312511038686/dex10d2.htm)] | | | | | |

| | | | | | | [removed: (e)(1)] [added: (f)(1)] | | | | | | [Amended and Restated Snap-on Incorporated Directors’ 1993 Fee Plan (as amended through August 5, 2010) (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended October 2, 2010 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312510234336/dex101.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312510234336/dex101.htm)] | | | | | |

| | | | | | | [removed: (e)(2)] [added: (f)(2)] | | | | | | [Amendment to Amended and Restated Snap-on Incorporated Directors’ 1993 Fee Plan (incorporated by reference to Exhibit 10(e)(2) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312514054235/d640970dex10e2.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312514054235/d640970dex10e2.htm)] | | | | | |

| | | | | | | [removed: (f)(1)] [added: (g)(1)] | | | | | | [Snap-on Incorporated Deferred Compensation Plan (as amended and restated as of September 1, 2011) (incorporated by reference to Exhibit 10(g) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312512064510/d261304dex10g.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312512064510/d261304dex10g.htm)] | | | | | |

| | | | | | | [removed: (f)(2)] [added: (g)(2)] | | | | | | [Amendment to Snap-on Incorporated Deferred Compensation Plan (incorporated by reference to Exhibit 10(f)(2) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312514054235/d640970dex10f2.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312514054235/d640970dex10f2.htm)] | | | | | |

| | | | | | | [removed: (g)] [added: (h)] | | | | | | [Snap-on Incorporated Supplemental Retirement Plan for Officers (as amended through June 11, 2010) (incorporated by reference to Exhibit 10.2 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended July 3, 2010 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312510168916/dex102.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312510168916/dex102.htm)] | | | | | |

| | | | | | | [removed: (h)] [added: (i)] | | | | | | [Form of Restricted Stock Unit Agreement for Directors under the 2001 Incentive Stock and Awards Plan (and accompanying Restricted Stock Unit Offer Letter) (incorporated by reference to Exhibit 10.2 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended October 3, 2009 (Commission File No. 1-7724)) (superseded except as to outstanding [removed: awards)](http://www.sec.gov/Archives/edgar/data/91440/000119312509217103/dex102.htm)] [added: awards)](https://www.sec.gov/Archives/edgar/data/91440/000119312509217103/dex102.htm)] | | | | | |

| | | | | | | [removed: (i)] [added: (j)] | | | | | | [Form of Non-Qualified Stock Option Agreement under the 2011 Incentive Stock and Awards Plan (and accompanying Non-Qualified Stock Option Grant Offer Letter) (incorporated by reference to Exhibit 10.1 to Snap‑on’s Quarterly Report on Form 10-Q for the quarterly period ended October 1, 2011 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312511275890/d234288dex101.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312511275890/d234288dex101.htm)] | | | | | |

| | | | | | | [removed: (j)] [added: (k)] | | | | | | [Form of Performance Share Unit Award Agreement under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312512170165/d319660dex101.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312512170165/d319660dex101.htm)] | | | | | |

| | | | | | | [removed: (k)] [added: (l)] | | | | | | [Form of Performance-Based Restricted Unit Award Agreement for Executive Officers under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312512170165/d319660dex102.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312512170165/d319660dex102.htm)] | | | | | |

| | | | | | | [removed: (l)] [added: (m)] | | | | | | [Form of Restricted Unit Award Agreement for Directors under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312512170165/d319660dex103.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312512170165/d319660dex103.htm)] | | | | | |

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 59 | | |

| | | | | | | [removed: (m)] [added: (n)] | | | | | | [Form of Restricted Stock Award Agreement for Directors under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10.1 to Snap-on’s Quarterly Report on Form 10-Q for the quarterly period ended March 30, 2013 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000119312513160206/d507261dex101.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000119312513160206/d507261dex101.htm)] | | | | | |

| | | | | | | [removed: (n)] [added: (o)] | | | | | | [Form of Restricted Stock Unit Award Agreement for Executive Officers and Key Employees under the 2011 Incentive Stock and Awards Plan (incorporated by reference to Exhibit 10(o) to Snap-on's Annual Report on Form 10-K for the fiscal year ended January 2, 2021 Commission File No. 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000009144021000005/sna_fy20x10kxexhibit10o.htm) | | | | | |

| | | | | | | [removed: (o)] [added: (p)] | | | | | | [removed: [F](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[our](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[th] [added: [Fourth] Amended and Restated Five Year Credit [removed: A](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[greement,] [added: Agreement,] dated as of September 12, 2023 [removed: a](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[mong] [added: among] Snap-on Incorporated and each lenders and agents listed on the [removed: signature](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm) [pages] [added: signature pages] thereof, and JPMorgan Chase Bank, N.A., Citibank N.A. and U.S. Bank National Association as joint lead [removed: arr](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[angers] [added: arrangers] and joint [removed: bookrun](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[ners] [added: bookrunners] (incorporated by reference to Exhibit 10.1 to [removed: S](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[nap-](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[on](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[’](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm)[s] [added: Snap-on’s] Current Report on Form 8-K dated September 12, 2023 (Commission File No. 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000009144023000029/snap-on2023creditagreement.htm) | | | | | |

| (14) | | | | | | [Snap-on Incorporated Section 406 of the Sarbanes-Oxley Act Code of Ethics (incorporated by reference to Exhibit 10(aa) to Snap-on’s Annual Report on Form 10-K for the fiscal year ended January 3, 2004 (Commission File No. [removed: 1-7724))](http://www.sec.gov/Archives/edgar/data/91440/000089706904000644/cmw550l.htm)] [added: 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000089706904000644/cmw550l.htm)] | | | | | | | | | | | |

| (21) | | | | | | [Subsidiaries of the [removed: Corporation](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/snafy23ex21.htm)] [added: Corporation](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex21.htm)] | | | | | | | | | | | |

| (23) | | | | | | [Consent of Independent Registered Public Accounting [removed: Firm](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/snafy23ex23.htm)] [added: Firm](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex23.htm)] | | | | | | | | | | | |

| (31.1) | | | | | | [Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/snafy23ex311.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex311.htm)] | | | | | | | | | | | |

| (31.2) | | | | | | [Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/snafy23ex312.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex312.htm)] | | | | | | | | | | | |

| (32.1) | | | | | | [Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/snafy23ex321.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex321.htm)] | | | | | | | | | | | |

| (32.2) | | | | | | [Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/snafy23ex322.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex322.htm)] | | | | | | | | | | | |

| (97) | | | | | | [Snap-on Incorporated Clawback Policy for Erroneously Awarded [removed: Compensation](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/snafy23ex97.htm)] [added: Compensation (incorporated by reference to Exhibit 97 to Snap-on's Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (Commission File No. 1-7724))](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/snafy23ex97.htm)] | | | | | | | | | | | |

| | | | | | | (e) | | | | | | [M](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex10e.htm)[anagement A](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex10e.htm)[greement, dated as on March 15, 2005, between SNA Europe and Jesus Arregui](https://www.sec.gov/Archives/edgar/data/91440/000009144025000010/snafy24ex10e.htm) | | | | | |

| (19) | | | | | | [Snap-on Incorporated Insider Trading Policy (incorporated by reference to Exhibit 19 to Snap-on's Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (Commission File No. 1-7724))](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000091440/000009144024000005/sna-20231230.htm) | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | |

| (19) | | | | | | [S](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/sna_fy23ex19.htm)[nap-on Incorporated Insider Tradi](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/sna_fy23ex19.htm)[ng Policy](https://www.sec.gov/Archives/edgar/data/91440/000009144024000005/sna_fy23ex19.htm) | | | | | | | | | | | |

To the Shareholders and [added: the] Board of Directors of Snap-on [removed: Incorporated:][added: Incorporated]

We have audited the accompanying consolidated balance sheets of Snap-on Incorporated and subsidiaries (the “Company”) as of December [removed: 30, 2023] [added: 28, 2024] and December [removed: 31, 2022,] [added: 30, 2023,] the related consolidated statements of earnings, comprehensive income, equity, and cash flows for each of the three years in the period ended December [removed: 30, 2023,] [added: 28, 2024,] and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December [removed: 30, 2023,] [added: 28, 2024,] and December [removed: 31, 2022,] [added: 30, 2023,] and the results of its operations and its cash flows for each of the three years in the period ended December [removed: 30, 2023,] [added: 28, 2024,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December [removed: 30, 2023,] [added: 28, 2024,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February [removed: 15, 2024,] [added: 13, 2025,] expressed an unqualified opinion on the Company’s internal control over financial reporting.

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 61 | | |

Finance [removed: Receivables, Net] [added: Receivables – Net] - Allowance [added: for Credit Losses] - Refer to Notes 1 and 4 to the financial statements

The Company estimates and records an allowance for credit losses over the remaining contractual life of their contracts considering collectability, historical loss experience, current [removed: conditions] [added: conditions,] and future market changes.

- We tested the completeness and accuracy and evaluated the relevance of the key data used as inputs in management’s allowance for credit losses calculation, including finance receivables balances, recoveries, charge-offs, portfolio [removed: characteristics] [added: characteristics,] and other data.

- We tested the mathematical accuracy of the allowance for credit losses and developed an [added: independent] expectation of the allowance for credit losses and compared it to the recorded balance.

| [removed: February 15,] [added: | | | | | |] 2024 | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | |]

| *(Amounts in millions, except per share data)* | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | |

| Net sales | | | | | | $ | [removed: 4,730.2] [added: 4,707.4] | | | | | $ | [removed: 4,492.8] [added: 4,730.2] | | | | | $ | [removed: 4,252.0] [added: 4,492.8] | |

| Cost of goods sold | | | | | | [removed: (2,381.1)] [added: (2,329.5)] | | | | | | [removed: (2,311.7)] [added: (2,381.1)] | | | | | | [removed: (2,141.2)] [added: (2,311.7)] | | |

| Gross profit | | | | | | [removed: 2,349.1] [added: 2,377.9] | | | | | | [removed: 2,181.1] [added: 2,349.1] | | | | | | [removed: 2,110.8] [added: 2,181.1] | | |

| Operating expenses | | | | | | [removed: (1,309.2)] [added: (1,309.1)] | | | | | | [removed: (1,239.9)] [added: (1,309.2)] | | | | | | [removed: (1,259.3)] [added: (1,239.9)] | | |

| Operating earnings before financial services | | | | | | [removed: 1,039.9] [added: 1,068.8] | | | | | | [removed: 941.2] [added: 1,039.9] | | | | | | [removed: 851.5] [added: 941.2] | | |

| Financial services revenue | | | | | | [removed: 378.1] [added: 401.0] | | | | | | [removed: 349.7] [added: 378.1] | | | | | | 349.7 | | |

| Financial services expenses | | | | | | [removed: (107.6)] [added: (124.1)] | | | | | | [removed: (83.7)] [added: (107.6)] | | | | | | [removed: (77.7)] [added: (83.7)] | | |

| Operating earnings from financial services | | | | | | [removed: 270.5] [added: 276.9] | | | | | | [removed: 266.0] [added: 270.5] | | | | | | [removed: 272.0] [added: 266.0] | | |

| Operating earnings | | | | | | [removed: 1,310.4] [added: 1,345.7] | | | | | | [removed: 1,207.2] [added: 1,310.4] | | | | | | [removed: 1,123.5] [added: 1,207.2] | | |

| Interest expense | | | | | | [removed: (49.9)] [added: (49.6)] | | | | | | [removed: (47.1)] [added: (49.9)] | | | | | | [removed: (53.1)] [added: (47.1)] | | |

| Other income (expense) – net | | | | | | [removed: 67.5] [added: 77.0] | | | | | | [removed: 42.5] [added: 67.5] | | | | | | [removed: 16.5] [added: 42.5] | | |

| Earnings before income taxes [removed: and equity earnings] | | | | | | [removed: 1,328.0] [added: 1,373.1] | | | | | | [removed: 1,202.6] [added: 1,328.0] | | | | | | [removed: 1,086.9] [added: 1,202.6] | | |

| Income tax expense | | | | | | [removed: (293.4)] [added: (304.2)] | | | | | | [removed: (268.7)] [added: (293.4)] | | | | | | [removed: (247.0)] [added: (268.7)] | | |

| Net earnings | | | | | | [removed: 1,034.6] [added: 1,068.9] | | | | | | [removed: 933.9] [added: 1,034.6] | | | | | | [removed: 841.4] [added: 933.9] | | |

| Net earnings attributable to noncontrolling interests | | | | | | [removed: (23.5)] [added: (25.0)] | | | | | | [removed: (22.2)] [added: (23.5)] | | | | | | [removed: (20.9)] [added: (22.2)] | | |

| Net earnings attributable to Snap-on Incorporated | | | | | | $ | [removed: 1,011.1] [added: 1,043.9] | | | | | $ | [removed: 911.7] [added: 1,011.1] | | | | | $ | [removed: 820.5] [added: 911.7] | |

| Basic | | | | | | $ | [removed: 19.11] [added: 19.85] | | | | | $ | [removed: 17.14] [added: 19.11] | | | | | $ | [removed: 15.22] [added: 17.14] | |

| Diluted | | | | | | [removed: 18.76] [added: 19.51] | | | | | | [removed: 16.82] [added: 18.76] | | | | | | [removed: 14.92] [added: 16.82] | | |

| Basic | | | | | | [removed: 52.9] [added: 52.6] | | | | | | [removed: 53.2] [added: 52.9] | | | | | | [removed: 53.9] [added: 53.2] | | |

| Effect of dilutive securities | | | | | | [removed: 1.0] [added: 0.9] | | | | | | 1.0 | | | | | | [removed: 1.1] [added: 1.0] | | |

| Diluted | | | | | | [removed: 53.9] [added: 53.5] | | | | | | [removed: 54.2] [added: 53.9] | | | | | | [removed: 55.0] [added: 54.2] | | |

| | | | [removed: 2023] [added: 2024] ANNUAL REPORT | | | 63 | | |

| *(Amounts in millions)* | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | |

| Net earnings | | | | | | $ | [removed: 1,034.6] [added: 1,068.9] | | | | | $ | [removed: 933.9] [added: 1,034.6] | | | | | $ | [removed: 841.4] [added: 933.9] | |

| Foreign currency translation | | | | | | [removed: 60.7] [added: (108.8)] | | | | | | [removed: (127.4)] [added: 60.7] | | | | | | [removed: (69.4)] [added: (127.4)] | | |

| Reclassification of cash flow hedges to net earnings | | | | | | [removed: (1.6)] [added: (1.7)] | | | | | | (1.6) | | | | | | (1.6) | | |

| Net prior service costs and credits and unrecognized gain (loss) | | | | | | [removed: 26.1] [added: (28.2)] | | | | | | [removed: (92.8)] [added: 26.1] | | | | | | [removed: 85.1] [added: (92.8)] | | |

| Income tax benefit (expense) | | | | | | [removed: (6.8)] [added: 7.1] | | | | | | [removed: 23.8] [added: (6.8)] | | | | | | [removed: (18.6)] [added: 23.8] | | |

| Net of tax | | | | | | [removed: 19.3] [added: (21.1)] | | | | | | [removed: (69.0)] [added: 19.3] | | | | | | [removed: 66.5] [added: (69.0)] | | |

- We tested the accuracy and evaluated the relevance of the historical loss data used in determining the qualitative adjustments.

| February 13, 2025 | | | | | | | | |

| Net earnings for 2024 | | | | | | — | | | | | | — | | | | | | 1,043.9 | | | | | | — | | | | | | — | | | | | | 25.0 | | | | | | 1,068.9 | | |

| Other comprehensive loss | | | | | | — | | | | | | — | | | | | | — | | | | | | (125.5) | | | | | | — | | | | | | — | | | | | | (125.5) | | |

| Stock compensation plans | | | | | | — | | | | | | 12.2 | | | | | | — | | | | | | — | | | | | | 90.3 | | | | | | — | | | | | | 102.5 | | |

| Share repurchases – 952,000 shares | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (290.0) | | | | | | — | | | | | | (290.0) | | |

| Other | | | | | | — | | | | | | — | | | | | | (1.7) | | | | | | — | | | | | | — | | | | | | (24.2) | | | | | | (25.9) | | |

| Balance at December 28, 2024 | | | | | | $ | 67.5 | | | | | $ | 557.7 | | | | | $ | 7,584.3 | | | | | $ | (575.0) | | | | | $ | (2,240.4) | | | | | $ | 22.9 | | | | | $ | 5,417.0 | |

| Net earnings | | | | | | $ | 1,068.9 | | | | | $ | 1,034.6 | | | | | $ | 933.9 | |

Other freight-related costs recorded in “Operating expenses” on the accompanying Consolidated Statements of Earnings in 2023 and 2022 totaled $11.5 million and $11.0 million, respectively.

| *(Amounts in millions)* | | | | | | 2024 | | | | | | 2023 | | |

The adoption of this ASU resulted in new disclosures, including comparative information for all years presented, but otherwise had no impact on the company’s Consolidated Financial Statements.

See Note 19 for additional information on segments.

The following new accounting pronouncements, and related impacts on adoption, are being evaluated by the company:

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*, which requires disaggregated expense information in the notes to the financial statements related to purchases of inventory, employee compensation, depreciation, intangible asset amortization and selling expenses for each statement of earnings line item that contains those expenses.

The guidance is to be applied on a prospective basis with the option to apply the standard retrospectively; this ASU allows for early adoption.

| *(Amounts in millions)* | | | | | | 2024 | | | | | | 2023 | | |

| Total net sales | | | | | | 4,707.4 | | | | | | 4,730.2 | | |

| Financial services revenue | | | | | | 401.0 | | | | | | 378.1 | | |

| Total revenues | | | | | | $ | 5,108.4 | | | | | $ | 5,108.3 | |

Snap-on evaluates the performance of the Commercial & Industrial Group, the Snap-on Tools Group and the Repair Systems & Information Group operating segments based on segment net sales and segment operating earnings while the Financial Services operating segment is evaluated based on segment revenue and segment operating earnings.

| North America* | | | | | | $ | 621.9 | | | | | $ | 1,725.6 | | | | | $ | 1,171.9 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,519.4 | |

| Europe | | | | | | 310.8 | | | | | | 158.3 | | | | | | 253.2 | | | | | | — | | | | | | — | | | | | | 722.3 | | |

| All other | | | | | | 254.9 | | | | | | 105.3 | | | | | | 105.5 | | | | | | — | | | | | | — | | | | | | 465.7 | | |

| External net sales | | | | | | 1,187.6 | | | | | | 1,989.2 | | | | | | 1,530.6 | | | | | | — | | | | | | — | | | | | | 4,707.4 | | |

| Intersegment net sales | | | | | | 289.2 | | | | | | — | | | | | | 267.3 | | | | | | — | | | | | | (556.5) | | | | | | — | | |

| Total net sales | | | | | | 1,476.8 | | | | | | 1,989.2 | | | | | | 1,797.9 | | | | | | — | | | | | | (556.5) | | | | | | 4,707.4 | | |

| Financial services revenue | | | | | | — | | | | | | — | | | | | | — | | | | | | 401.0 | | | | | | — | | | | | | 401.0 | | |

| Total revenue | | | | | | $ | 1,476.8 | | | | | $ | 1,989.2 | | | | | $ | 1,797.9 | | | | | $ | 401.0 | | | | | $ | (556.5) | | | | | $ | 5,108.4 | |

| Vehicle service professionals | | | | | | $ | 82.6 | | | | | $ | 1,989.2 | | | | | $ | 1,530.6 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,602.4 | |

| External net sales | | | | | | 1,187.6 | | | | | | 1,989.2 | | | | | | 1,530.6 | | | | | | — | | | | | | — | | | | | | 4,707.4 | | |

| Intersegment net sales | | | | | | 289.2 | | | | | | — | | | | | | 267.3 | | | | | | — | | | | | | (556.5) | | | | | | — | | |

| Total net sales | | | | | | 1,476.8 | | | | | | 1,989.2 | | | | | | 1,797.9 | | | | | | — | | | | | | (556.5) | | | | | | 4,707.4 | | |

| Financial services revenue | | | | | | — | | | | | | — | | | | | | — | | | | | | 401.0 | | | | | | — | | | | | | 401.0 | | |

| Total revenue | | | | | | $ | 1,476.8 | | | | | $ | 1,989.2 | | | | | $ | 1,797.9 | | | | | $ | 401.0 | | | | | $ | (556.5) | | | | | $ | 5,108.4 | |

| *(Amounts in millions)* | | | 2024 | | | | | | 2023 | | |

| *(Amounts in millions)* | | | 2024 | | | | | | 2023 | | |

| *(Amounts in millions)* | | | 2024 | | | | | | 2023 | | |

| Total current finance and contract receivables – net | | | $ | 730.3 | | | | | $ | 714.9 | |

| *(Amounts in millions)* | | | 2024 | | | | | | 2023 | | |

At December 30, 2023, these finance receivables totaled $1,946.1 million with an allowance of $67.8 million recorded against the receivables.

- We evaluated management’s ability to accurately forecast credit losses by performing a retrospective review, which involved comparing actual credit losses to historical estimates.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Earnings before equity earnings | | | | | | 1,034.6 | | | | | | 933.9 | | | | | | 839.9 | | |

| Equity earnings, net of tax | | | | | | — | | | | | | — | | | | | | 1.5 | | |

| Reclassification of foreign currency translation loss from sale of equity interest to net earnings | | | | | | — | | | | | | — | | | | | | (1.0) | | |

| | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Balance at January 2, 2021 | | | | | | $ | 67.4 | | | | | $ | 391.7 | | | | | $ | 5,156.9 | | | | | $ | (365.8) | | | | | $ | (1,425.3) | | | | | $ | 21.7 | | | | | $ | 3,846.6 | |

| Net earnings for 2021 | | | | | | — | | | | | | — | | | | | | 820.5 | | | | | | — | | | | | | — | | | | | | 20.9 | | | | | | 841.4 | | |

| Other comprehensive income | | | | | | — | | | | | | — | | | | | | — | | | | | | 21.9 | | | | | | — | | | | | | — | | | | | | 21.9 | | |

| Stock compensation plans | | | | | | — | | | | | | 81.0 | | | | | | — | | | | | | — | | | | | | 142.4 | | | | | | — | | | | | | 223.4 | | |

| Share repurchases – 1,943,900 shares | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (431.3) | | | | | | — | | | | | | (431.3) | | |

| Other | | | | | | — | | | | | | — | | | | | | (1.7) | | | | | | — | | | | | | — | | | | | | (20.7) | | | | | | (22.4) | | |

| Repayments of long-term debt | | | | | | — | | | | | | — | | | | | | (250.0) | | |

New accounting standards: On January 1, 2023, the beginning of Snap-on’s 2023 fiscal year, the company adopted ASU No. 2022-02, *Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures*, which requires enhanced disclosure of certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and eliminates certain current recognition and measurement accounting guidance.

This ASU also requires the disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases.

The adoption of this ASU did not have a significant impact on Snap-on’s Consolidated Financial Statements.

| | | | | | | 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| North America* | | | | | | $ | 498.3 | | | | | $ | 1,840.3 | | | | | $ | 1,046.1 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,384.7 | |

| Europe | | | | | | 284.9 | | | | | | 137.9 | | | | | | 227.5 | | | | | | — | | | | | | — | | | | | | 650.3 | | |

| All other | | | | | | 275.1 | | | | | | 93.8 | | | | | | 88.9 | | | | | | — | | | | | | — | | | | | | 457.8 | | |

| Total revenue | | | | | | $ | 1,399.2 | | | | | $ | 2,072.0 | | | | | $ | 1,666.9 | | | | | $ | 349.7 | | | | | $ | (645.3) | | | | | $ | 4,842.5 | |

| Vehicle service professionals | | | | | | $ | 90.8 | | | | | $ | 2,072.0 | | | | | $ | 1,362.5 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,525.3 | |

The goodwill will be deductible for tax purposes.

The presentation of Mountz in the accompanying Consolidated Financial Statements has been prepared on a preliminary basis and changes to allocations may occur as fair value estimates of the acquired net assets are determined.

The company does not expect that the goodwill will be deductible for tax purposes.

On August 1, 2021, Snap-on acquired AutoCrib EMEA GmbH (“AutoCrib Germany”), a former independent distributor, for a cash purchase price of $4.4 million (or $4.2 million, net of cash acquired).

AutoCrib Germany, based in Hamburg, Germany, distributes asset and tool control solutions for a variety of aerospace, automotive, military, natural resources and general industry operations.

In fiscal 2022, the company completed the purchase accounting valuations for the acquired net assets of AutoCrib Germany.

The $3.3 million excess of the purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Consolidated Balance Sheets.

On July 1, 2021, Snap-on exchanged its 35% equity interest in Deville S.A., valued at $21.8 million, for 100% ownership of Secateurs Pradines (“Pradines”), a wholly owned subsidiary of Deville S.A. with a fair value of $20.2 million (or $15.7 million, net of cash acquired), which reflects a $0.5 million purchase accounting adjustment finalized in fiscal 2022, and cash of $1.6 million.

Pradines, located in Bauge-en-Anjou, France, designs and manufactures horticultural hand tools for professionals and individuals.

In fiscal 2022, the company completed the purchase accounting valuations for the acquired net assets of Pradines.

The $10.2 million excess of the purchase price over the fair value of net assets acquired was recorded in “Goodwill” in the accompanying Consolidated Balance Sheets.

Snap-on previously accounted for Deville S.A. as an equity method investment.

On February 26, 2021, Snap-on acquired Dealer-FX Group, Inc. (“Dealer-FX”) for a cash purchase price of $200.1 million (or $200.0 million, net of cash acquired).

Dealer-FX, based in Markham, Ontario, is a leading developer, marketer and provider of service-operations software solutions for automotive OEM customers and their dealers.

Dealer-FX specializes in software as a service (SaaS) management systems, communications platforms, extensive data integrations, and offers a digitalized solution that increases productivity and enhances the vehicle owners’ experience.

In fiscal 2022, the company completed the purchase accounting valuations for the acquired net assets of Dealer-FX, and recorded $32.6 million of net deferred tax changes.