Commitments and Contingencies

12 Months Ended

Jan. 02, 2016

Commitments and Contingencies Disclosure [Abstract]

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:
2016	$	22.4	$	4.8
2017		17.2		3.7
2018		12.8		3.0
2019		9.2		2.6
2020		6.4		2.2
2021 and thereafter		11.0		7.8

Total minimum lease payments	$	79.0	$	24.1

Less: amount representing interest				(1.9)

Total present value of minimum capital lease payments			$	22.2

Amounts included in the accompanying Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2015 year end are as follows:


(Amounts in millions)	2015
Other accrued liabilities	$	4.3
Other long-term liabilities		17.9

Total present value of minimum capital lease payments	$	22.2

Rent expense for worldwide facilities, office equipment and vehicles, net of sub-lease rental income, was $29.4 million, $30.6 million and $31.2 million in 2015, 2014 and 2013, 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 2015, 2014 and 2013 is as follows:


(Amounts in millions)	2015		2014		2013
Warranty accrual:
Beginning of year	$	17.3	$	17.0	$	18.9
Additions		13.3		14.6		9.3
Usage		(14.2)		(14.3)		(11.2)

End of year	$	16.4	$	17.3	$	17.0

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 1,400 employees in 2016, 700 employees in 2017, and 500 employees in 2018; there are no contracts currently scheduled to expire in 2019 or 2020. 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.