Product Warranty and Safety Recall Campaigns

3 Months Ended

Mar. 27, 2016

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
	March 27, 2016			March 29, 2015
Balance, beginning of period	$	74,217		$	69,250
Warranties issued during the period	18,012			15,111
Settlements made during the period	(18,163		)	(13,565		)
Recalls and changes to pre-existing warranty liabilities	770			277
Balance, end of period	$	74,836		$	71,073

The liability for recall campaigns was $7.1 million, $10.2 million and $7.7 million as of March 27, 2016, December 31, 2015 and March 29, 2015, respectively.