Commitments and Contingencies

9 Months Ended

Sep. 28, 2019

Commitments and Contingencies Disclosure [Abstract]

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 nine months ended September 28, 2019, and September 29, 2018, is as follows:


	Three Months Ended						Nine Months Ended
(Amounts in millions)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Warranty reserve:
Beginning of period	$	17.8	$	17.5	$	17.1	$	17.2
Additions	3.8		3.0		12.5		10.9
Usage	(4.6)		(3.3)		(12.6)		(10.9)
End of period	$	17.0	$	17.2	$	17.0	$	17.2

The Condensed Consolidated Balance Sheet as of December 29, 2018, included an accrual of $30.9 million related to a judgment from the fourth quarter of 2017 for a patent-related litigation matter that was being appealed. During the first nine months of 2019, that matter was settled and the company recognized an $11.6 million benefit in “Operating expenses” on the Condensed Consolidated Statements of Earnings for the nine months ended September 28, 2019, as a result of the settlement.

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 all legal matters will not have a material impact on Snap-on’s consolidated financial position, results of operations or cash flows.