Product Warranty and Safety Recall Campaigns

3 Months Ended

Apr. 01, 2018

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 accrues for future warranty claims using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company accrues for the estimated cost associated with voluntary 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
	April 1, 2018			March 26, 2017
Balance, beginning of period	$	94,202		$	79,482
Warranties issued during the period	14,606			16,752
Settlements made during the period	(16,638		)	(19,333		)
Recalls and changes to pre-existing warranty liabilities	2,905			1,310
Balance, end of period	$	95,075		$	78,211

The liability for recall campaigns was $32.3 million, $35.3 million and $10.3 million as of April 1, 2018, December 31, 2017 and March 26, 2017, respectively.