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Commitments and Contingencies
 6 Months Ended
Jun. 28, 2014
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 14: Commitments and Contingencies

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 the three and six month periods ended June 28, 2014, and June 29, 2013, is as follows:

 

     Three Months Ended     Six Months Ended  
(Amounts in millions)    June 28, 2014     June 29, 2013     June 28, 2014     June 29, 2013  

Warranty reserve:

         

Beginning of period

    $ 16.7      $ 17.7      $ 17.0      $ 18.9   

Additions

      4.0        3.4        6.9        4.8   

Usage

      (3.0 )      (3.2 )      (6.2 )      (5.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 17.7      $ 17.9      $ 17.7      $ 17.9   
  

 

 

    

 

 

    

 

 

    

 

 

  

Snap-on has credit risk exposure for certain SOC-originated contracts with recourse provisions related to franchisee van leases sold by SOC; as of June 28, 2014, and December 28, 2013, $4.0 million and $7.7 million, respectively, of franchisee leases contain a recourse provision to Snap-on if the leases become more than 90 days past due. The asset value of the collateral underlying these recourse leases would serve to mitigate Snap-on’s loss in the event of default. The estimated fair value of the guarantees for all lease originations with recourse as of June 28, 2014, was not material.

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.