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Commitments and Contingencies
 12 Months Ended
Jan. 03, 2015
Commitments and Contingencies Disclosure [Abstract]  
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:

      

2015

        $     22.3               $ 6.3       

2016

      16.0             4.9       

2017

      12.0             3.7       

2018

      8.6             2.6       

2019

      6.5             2.1       

2020 and thereafter

      11.1             8.7       
  

 

 

     

 

 

  

Total minimum lease payments

        $ 76.5               $     28.3       
  

 

 

     

Less: amount representing interest

         (2.5)      
     

 

 

  

Total present value of minimum capital lease payments

           $ 25.8       
     

 

 

  

Amounts included in the accompanying Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2014 year end are as follows:

 

(Amounts in millions)    2014  

Other accrued liabilities

        $ 5.7       

Other long-term liabilities

      20.1       
  

 

 

  

Total present value of minimum capital lease payments

        $     25.8       
  

 

 

  

 

Rent expense for worldwide facilities, office equipment and vehicles, net of sub-lease rental income, was $30.6 million, $31.2 million and $29.7 million in 2014, 2013 and 2012, 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 2014, 2013 and 2012 is as follows:

 

(Amounts in millions)        2014              2013              2012      

Warranty accrual:

         

Beginning of year

        $ 17.0               $ 18.9               $ 18.6       

Additions

      14.6             9.3             10.4       

Usage

        (14.3)              (11.2)              (10.1)      
  

 

 

     

 

 

     

 

 

  

End of year

        $ 17.3               $ 17.0               $ 18.9       
  

 

 

     

 

 

     

 

 

  

Approximately 2,600 employees, or 23% of Snap-on’s worldwide workforce, are represented by unions and/or covered under collective bargaining agreements. The number of covered union employees whose contracts expire over the next five years approximates 1,250 employees in 2015; 400 employees in 2016; and 600 employees in 2017; there are no contracts currently scheduled to expire in 2018 or 2019. In recent years, Snap-on has not experienced any significant work slowdowns, stoppages or other labor disruptions.

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.