Product Warranty and Safety Recall Campaigns

6 Months Ended

Jun. 28, 2015

Product Warranties Disclosures [Abstract]

Product Warranty and Safety Recall Campaigns

Product Warranty and 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 voluntary recall campaigns. The Company reserves for all estimated costs associated with recalls in the period that management approves and commits to the recall.

Changes in the Company’s warranty and recall liability were as follows (in thousands):

	Three months ended						Six months ended
	June 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014
Balance, beginning of period	$	71,073		$	69,336		$	69,250		$	64,120
Warranties issued during the period	21,843			19,824			36,954			37,186
Settlements made during the period	(23,554		)	(16,921		)	(37,119		)	(28,494		)
Recalls and changes to pre-existing warranty liabilities	14,054			3,798			14,331			3,225
Balance, end of period	$	83,416		$	76,037		$	83,416		$	76,037

The liability for recall campaigns was $16.6 million, $9.8 million and $6.8 million as of June 28, 2015, December 31, 2014 and June 29, 2014, respectively.