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.


(Amounts in millions)	2025		2024		2023
Warranty accrual:
Beginning of year	$	15.2	$	14.7	$	14.3
Additions	13.8		15.0		14.7
Usage	(14.5)		(14.5)		(14.3)
End of year	$	14.5	$	15.2	$	14.7

Approximately 2,300 employees, or 18% 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 600 employees in 2026, 800 employees in 2027, 150 employees in 2028, and 50 employees in 2029; there are no contracts currently scheduled to expire in 2030. In recent years, Snap-on has not experienced any significant work slowdowns, stoppages or other labor disruptions.

In the ordinary course of business, Snap-on is subject to legal disputes that are being litigated and/or settled. The accompanying Consolidated Statements of Earnings for the year ended January 3, 2026, include a benefit in “Operating expenses” of $22.0 million for the settlement of a legal matter (the “2025 legal settlement”). In addition, the accompanying Consolidated Statement of Earnings for the year ended December 28, 2024, include a benefit in “Operating expenses” of $22.5 million, for the final payments received associated with a separate legal matter (the “2024 legal payments”). Although it is not possible to predict the outcome of 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.