Commitments and Contingencies

12 Months Ended

Jan. 01, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

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 2021, 2020 and 2019 is as follows:

(Amounts in millions)	2021		2020		2019
Warranty accrual:
Beginning of year	$	17.6	$	17.3	$	17.1
Additions	13.7		13.9		16.0
Usage	(14.0)		(13.6)		(15.8)
End of year	$	17.3	$	17.6	$	17.3

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 1,300 employees in 2022, 875 employees in 2023, 400 employees in 2024, and 125 employees in 2025; there are no contracts currently scheduled to expire in 2026. 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 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.