Product Warranty and Safety Recall Campaigns

6 Months Ended

Jul. 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						Six months ended
	July 1, 2018			June 25, 2017			July 1, 2018			June 25, 2017
Balance, beginning of period	$	95,075		$	78,211		$	94,202		$	79,482
Warranties issued during the period	16,904			18,084			31,510			34,836
Settlements made during the period	(21,777		)	(21,200		)	(38,415		)	(40,533		)
Recalls and changes to pre-existing warranty liabilities	(259		)	5,586			2,646			6,896
Balance, end of period	$	89,943		$	80,681		$	89,943		$	80,681

The liability for recall campaigns was $27.4 million, $35.3 million and $7.9 million as of July 1, 2018, December 31, 2017 and June 25, 2017, respectively.