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Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instrument Fair Value
The following tables summarize the notional and recorded fair values of the Company’s derivative financial instruments (in thousands):
 
 
Derivatives Designated as Cash Flow Hedging
Instruments Under ASC Topic 815
 
 
June 30, 2019
 
December 31, 2018
 
July 1, 2018
Derivative
 
Notional
Value
 
Other Current Assets
 
Accrued Liabil-ities
 
Notional
Value
 
Other Current Assets
 
Accrued Liabil-ities
 
Notional
Value
 
Other Current Assets
 
Accrued Liabil-ities
Foreign currency contracts
 
$
495,736

 
$
6,638

 
$
3,490

 
$
442,976

 
$
15,071

 
$
313

 
$
591,901

 
$
13,238

 
$
—

Commodity contracts
 
627

 
—

 
69

 
827

 
—

 
46

 
803

 
4

 
—

Interest rate swaps
 
900,000

 
—

 
11,920

 
900,000

 
—

 
4,494

 
450,000

 
—

 
597

Total
 
$
1,396,363

 
$
6,638

 
$
15,479


$
1,343,803

 
$
15,071

 
$
4,853


$
1,042,704

 
$
13,242

 
$
597

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging
Instruments Under ASC Topic 815
 
 
June 30, 2019
 
December 31, 2018
 
July 1, 2018
Derivative
 
Notional
Value
 
Other Current Assets
 
Accrued Liabil-ities
 
Notional
Value
 
Other Current Assets
 
Accrued Liabil-ities
 
Notional
Value
 
Other Current Assets
 
Accrued Liabil-ities
Foreign currency contracts
 
$
317,344

 
$
273

 
$
1,816

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Commodity contracts
 
7,710

 
5

 
260

 
5,239

 
—

 
463

 
4,421

 
204

 
28

Interest rate cap
 
481,509

 
4

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
806,563


$
282

 
$
2,076

 
$
5,239

 
$
—

 
$
463

 
$
4,421

 
$
204

 
$
28

 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands):
 
 
Amount of Gain/(Loss) Recognized in OCI, before tax
 
Amount of Gain/(Loss) Reclassified from AOCL into Income
 
Location of Gain/(Loss) Reclassified from AOCL into Income
 
Total Statement of Income Amount for Line Items in which the Effects of Cash Flow Hedges are Recorded
 
 
Three months ended
 
 
 
Three months ended
Cash Flow Hedges
 
June 30,
2019
 
July 1,
2018
 
June 30,
2019
 
July 1,
2018
 
Statement of Income
line item
 
June 30,
2019
 
July 1,
2018
Foreign currency contracts
 
$
(2,865
)
 
$
32,635

 
$
7,668

 
$
956

 
Motorcycles cost of goods sold
 
$
979,266

 
$
993,036

Commodity contracts
 
(70
)
 
4

 
(7
)
 
(12
)
 
Motorcycles cost of goods sold
 
$
979,266

 
$
993,036

Treasury rate locks
 
—

 
—

 
(91
)
 
(91
)
 
Interest expense
 
$
7,784

 
$
7,728

Treasury rate locks
 
—

 
41

 
(32
)
 
(34
)
 
Financial Services interest expense
 
$
52,673

 
$
51,943

Interest rate swaps
 
(5,856
)
 
(886
)
 
(830
)
 
(289
)
 
Financial Services interest expense
 
$
52,673

 
$
51,943

Total
 
$
(8,791
)
 
$
31,794

 
$
6,708

 
$
530

 
 
 
 
 
 

 
 
Amount of Gain/(Loss) Recognized in OCI, before tax
 
Amount of Gain/(Loss) Reclassified from AOCL into Income
 
Location of Gain/(Loss) Reclassified from AOCL into Income
 
Total Statement of Income Amount for Line Items in which the Effects of Cash Flow Hedges are Recorded
 
 
Six months ended
 
 
 
Six months ended
Cash Flow Hedges
 
June 30,
2019
 
July 1,
2018
 
June 30,
2019
 
July 1,
2018
 
Statement of Income
line item
 
June 30,
2019
 
July 1,
2018
Foreign currency contracts
 
$
1,287

 
$
26,745

 
$
10,121

 
$
(5,753
)
 
Motorcycles cost of goods sold
 
$
1,827,464

 
$
1,883,210

Commodity contracts
 
(40
)
 
(12
)
 
(17
)
 
(85
)
 
Motorcycles cost of goods sold
 
$
1,827,464

 
$
1,883,210

Treasury rate locks
 
—

 
—

 
(181
)
 
(181
)
 
Interest expense
 
$
15,515

 
$
15,418

Treasury rate locks
 
—

 
41

 
(64
)
 
(70
)
 
Financial Services interest expense
 
$
104,997

 
$
100,393

Interest rate swaps
 
(8,861
)
 
(886
)
 
(1,436
)
 
(289
)
 
Financial Services Interest expense
 
$
104,997

 
$
100,393

Total
 
$
(7,614
)
 
$
25,888


$
8,423


$
(6,378
)
 
 
 
 
 
 
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table summarizes the amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments (in thousands). Foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial services interest expense.
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
 
 
Three months ended
 
Six months ended
Derivatives Not Designated as Hedges
 
June 30,
2019
 
July 1,
2018
 
June 30,
2019
 
July 1,
2018
Foreign currency contracts
 
$
(1,004
)
 
$
—

 
$
(117
)
 
$
—

Commodity contracts
 
(310
)
 
195

 
7

 
201

Interest rate cap
 
(141
)
 
—

 
(141
)
 
—

Total
 
$
(1,455
)
 
$
195

 
$
(251
)
 
$
201