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Commitments and Contingencies | 12 Months Ended
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Dec. 29, 2012
Commitments and Contingencies | Note 15: Commitments and Contingencies Snap-on leases facilities, office equipment and vehicles under non-cancelable operating and capital leases that extend for varying amounts of time. Snap-on’s future minimum lease commitments under these leases, net of sub-lease rental income, are as follows:
(Amounts in millions) |  | Operating Leases |  |  | Capital Leases |
Year: |  |  |  |  |  |  |  |
2013 |  | $ | 23.0 |  |  | $ | 7.7 |
2014 |  |  | 17.3 |  |  |  | 7.1 |
2015 |  |  | 13.0 |  |  |  | 6.8 |
2016 |  |  | 8.4 |  |  |  | 4.8 |
2017 |  |  | 6.4 |  |  |  | 3.3 |
2018 and thereafter |  |  | 14.9 |  |  |  | 14.4 |
Total minimum lease payments |  | $ | 83.0 |  |  | $ | 44.1 |
Less: amount representing interest |  |  |  |  |  |  | (4.5) |
Total present value of minimum capital lease payments |  |  |  |  |  | $ | 39.6 |
Amounts included in the accompanying Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2012 year end are as follows:
(Amounts in millions) |  | 2012 |
Other accrued liabilities |  | $ | 6.3 |
Other long-term liabilities |  |  | 33.3 |
Total present value of minimum capital lease payments |  | $ | 39.6 |
Rent expense, net of sub-lease rental income, for worldwide facilities, office equipment and vehicles was $29.7 million, $31.7 million and $33.2 million in 2012, 2011 and 2010, respectively. Snap-on provides product warranties for specific product lines and accrues for estimated future warranty cost in the period in which the sale is recorded. Snap-on calculates its accrual requirements based on historic warranty loss experience that is periodically adjusted for recent actual experience, including the timing of claims during the warranty period and actual costs incurred. Snap-on’s product warranty accrual activity for 2012, 2011 and 2010 is as follows:
(Amounts in millions) |  | 2012 |  |  | 2011 |  |  | 2010 |
Warranty reserve: |  |  |  |  |  |  |  |  |  |  |  |
Beginning of year |  | $ | 18.6 |  |  | $ | 16.9 |  |  | $ | 14.3 |
Additions |  |  | 10.4 |  |  |  | 15.3 |  |  |  | 16.0 |
Usage |  |  | (10.1) |  |  |  | (13.6) |  |  |  | (13.4) |
End of year |  | $ | 18.9 |  |  | $ | 18.6 |  |  | $ | 16.9 |
Approximately 2,700 employees, or 24% of Snap-on’s worldwide workforce, are represented by unions and/or covered under collective bargaining agreements. Approximately 900 employees are covered under agreements expiring in 2013. In recent years, Snap-on has not experienced any significant work slow-downs, stoppages or other labor disruptions. Snap-on has credit risk exposure for certain SOC-originated contracts with recourse provisions related to franchisee van loans sold by SOC; as of 2012 and 2011 year end, $13.3 million and $13.9 million, respectively, of franchisee loans contain a recourse provision to Snap-on if the loans become more than 90 days past due. The asset value of the collateral underlying these recourse loans would serve to mitigate Snap-on’s loss in the event of default. The estimated fair value of the guarantees for all loan originations with recourse as of December 29, 2012, was not material. In May 2011, Snap-on and CIT reached an amicable settlement of their respective claims relating to payments during the course of their SOC financial services joint venture and, in the second quarter of 2011, Snap-on recorded an $18.0 million pretax arbitration settlement gain. The $18.0 million arbitration settlement gain is included in “Operating earnings from financial services” on the accompanying Consolidated Statement of Earnings for 2011. Snap-on is involved in various legal matters that are being litigated and/or settled in the ordinary course of business. Although it is not possible to predict the outcome of these legal matters, management believes that the results of these legal matters will not have a material impact on Snap-on’s consolidated financial position, results of operations or cash flows.

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