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:
2018	$	25.5	$	3.6
2019		19.6		3.2
2020		14.1		3.0
2021		10.5		2.6
2022		7.2		2.2
2023 and thereafter		7.9		3.5

Total minimum lease payments	$	84.8	$	18.1

Less: amount representing interest				(1.2)

Total present value of minimum capital lease payments			$	16.9

Amounts included in the accompanying Consolidated Balance Sheets for the present value of minimum capital lease payments as of 2017 year end are as follows:


(Amounts in millions)	2017
Other accrued liabilities	$	3.2
Other long-term liabilities		13.7

Total present value of minimum capital lease payments	$	16.9

Rent expense for worldwide facilities, office equipment and vehicles, net of sub-lease rental income, was $35.2 million, $31.2 million and $29.4 million in 2017, 2016 and 2015, 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 2017, 2016 and 2015 is as follows:


(Amounts in millions)	2017		2016		2015
Warranty accrual:
Beginning of year	$	16.0	$	16.4	$	17.3
Additions		15.2		12.8		13.3
Usage		(14.0)		(13.2)		(14.2)

End of year	$	17.2	$	16.0	$	16.4

Approximately 2,700 employees, or 21% 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 1,450 employees in 2018, 225 employees in 2019, 825 employees in 2020, 125 employees in 2021, and 25 employees in 2022. 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. The year ended December 30, 2017, included accruals for $30.9 million related to a judgment in a patent-related litigation matter, as well as $15.0 million related to a judgment in an employment-related litigation matter brought by an individual; both judgments are being appealed.

Although it is not possible to predict the outcome of these and other legal matters, management believes that the results of all legal matters will not have a material impact on Snap-on’s consolidated financial position, results of operations or cash flows.