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Product Warranty and Recall Campaigns
9 Months Ended
Sep. 29, 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. 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 liabilities were as follows (in thousands):
 
Three months ended
 
Nine months ended
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
Balance, beginning of period
$
108,804

 
$
89,943

 
$
131,740

 
$
94,202

Warranties issued during the period
12,988

 
12,038

 
41,955

 
43,548

Settlements made during the period
(26,906
)
 
(21,550
)
 
(73,291
)
 
(59,965
)
Recalls and changes to pre-existing warranty liabilities
1,990

 
3,493

 
(3,528
)
 
6,139

Balance, end of period
$
96,876

 
$
83,924

 
$
96,876

 
$
83,924


The liability for recall campaigns was $40.5 million, $73.3 million and $23.9 million as of September 29, 2019, December 31, 2018 and September 30, 2018, respectively. The Company recorded supplier recoveries within operating expenses separate from the amounts disclosed above of $28.0 million for the nine months ended September 29, 2019.