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Product Warranty and Recall Campaigns
6 Months Ended
Jun. 30, 2019
Product Warranties Disclosures [Abstract]  
Product Warranty and 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
 
June 30,
2019
 
July 1,
2018
 
June 30,
2019
 
July 1,
2018
Balance, beginning of period
$
122,387

 
$
95,075

 
$
131,740

 
$
94,202

Warranties issued during the period
17,350

 
16,904

 
28,967

 
31,510

Settlements made during the period
(26,768
)
 
(21,777
)
 
(46,385
)
 
(38,415
)
Recalls and changes to pre-existing warranty liabilities
(4,165
)
 
(259
)
 
(5,518
)
 
2,646

Balance, end of period
$
108,804

 
$
89,943

 
$
108,804

 
$
89,943


The liability for recall campaigns was $47.6 million, $73.3 million and $27.4 million as of June 30, 2019, December 31, 2018 and July 1, 2018, respectively. The Company recorded supplier recoveries within operating expenses separate from the amounts disclosed above of $28.0 million for the six months ended June 30, 2019.