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Product Warranty and Safety Recall Campaigns
6 Months Ended
Jun. 29, 2014
Product Warranties Disclosures [Abstract]  
Product Warranty and Safety Recall Campaigns
Product Warranty and Safety Recall Campaigns
The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company currently provides a standard three-year limited warranty on all new motorcycles sold. In addition, the Company provides a one-year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company maintains reserves for future warranty claims using an estimated cost, which is based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary safety recall campaigns. The Company reserves for all estimated costs associated with safety recalls in the period that the safety recalls are announced.
Changes in the Company’s warranty and safety recall liability were as follows (in thousands):
 
Three months ended
 
Six months ended
 
June 29,
2014
 
June 30,
2013
 
June 29,
2014
 
June 30,
2013
Balance, beginning of period
$
69,336

 
$
67,709

 
$
64,120

 
$
60,263

Warranties issued during the period
19,824

 
19,401

 
37,186

 
34,521

Settlements made during the period
(16,921
)
 
(16,702
)
 
(28,494
)
 
(28,340
)
Recalls and changes to pre-existing warranty liabilities
3,798

 
(2
)
 
3,225

 
3,962

Balance, end of period
$
76,037

 
$
70,406

 
$
76,037

 
$
70,406


The liability for safety recall campaigns was $6.8 million, $4.0 million and $3.0 million as of June 29, 2014December 31, 2013 and June 30, 2013, respectively.