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 month periods ended October 3, 2026, and September 27, 2025, is as follows:


	Three Months Ended				Nine Months Ended
(Amounts in millions)	October 3, 2026		September 27, 2025		October 3, 2026		September 27, 2025
Warranty reserve:
Beginning of period	$	14.2	$	15.4	$	14.5	$	15.2
Additions	3.6		3.5		10.9		10.7
Usage	(3.8)		(3.8)		(11.4)		(10.8)
End of period	$	14.0	$	15.1	$	14.0	$	15.1

In the ordinary course of business, Snap-on is subject to legal disputes that are being litigated and/or settled. The accompanying Condensed Consolidated Statements of Earnings for each of the three and nine month periods ended September 27, 2025, include a benefit in “Operating expenses” of $22.0 million for the settlement of a legal matter (the “legal settlement”). 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.