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Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 29, 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
 
 
September 29, 2019
 
December 31, 2018
 
September 30, 2018
 
 
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
 
$
441,131

 
$
11,459

 
$
790

 
$
442,976

 
$
15,071

 
$
313

 
$
512,071

 
$
11,687

 
$
718

Commodity contracts
 
744

 
—

 
56

 
827

 
—

 
46

 
925

 
9

 
—

Treasury rate locks
 
—

 
—

 
—

 
—

 
—

 
—

 
50,000

 
52

 
—

Interest rate swaps
 
900,000

 
—

 
11,164

 
900,000

 
—

 
4,494

 
450,000

 
550

 
—

 
 
$
1,341,875

 
$
11,459

 
$
12,010


$
1,343,803

 
$
15,071

 
$
4,853


$
1,012,996

 
$
12,298

 
$
718

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging
Instruments Under ASC Topic 815
 
 
September 29, 2019
 
December 31, 2018
 
September 30, 2018
 
 
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
 
$
193,959

 
$
278

 
$
219

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Commodity contracts
 
9,485

 
230

 
360

 
5,239

 
—

 
463

 
5,207

 
233

 
213

Interest rate cap
 
427,530

 
4

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
$
630,974


$
512

 
$
579

 
$
5,239

 
$
—

 
$
463

 
$
5,207

 
$
233

 
$
213
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following tables summarize the amounts of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands):
 
 
Amount of Gain/(Loss) Recognized in OCI
 
Amount of Gain/(Loss) Reclassified from AOCL
 
Location of Gain/(Loss) Reclassified from AOCL
 
Amounts shown on the Consolidated Statements of Income
 
 
Three months ended
 
Consolidated Statements of Income
line item
 
Three months ended
 
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
 
 
September 29,
2019
 
September 30,
2018
Foreign currency contracts
 
$
13,135

 
$
4,508

 
$
5,826

 
$
5,695

 
Motorcycles cost of goods sold
 
$
748,878

 
$
776,530

Commodity contracts
 
(15
)
 
5

 
(28
)
 
—

 
Motorcycles cost of goods sold
 
$
748,878

 
$
776,530

Treasury rate locks
 
—

 
—

 
(91
)
 
(90
)
 
Interest expense
 
$
7,789

 
$
7,762

Treasury rate locks
 
—

 
52

 
(33
)
 
(33
)
 
Financial Services interest expense
 
$
53,390

 
$
44,696

Interest rate swaps
 
(708
)
 
486

 
(1,463
)
 
(661
)
 
Financial Services interest expense
 
$
53,390

 
$
44,696

 
 
$
12,412

 
$
5,051

 
$
4,211

 
$
4,911

 
 
 
 
 
 

 
 
Amount of Gain/(Loss) Recognized in OCI
 
Amount of Gain/(Loss) Reclassified from AOCL
 
Location of Gain/(Loss) Reclassified from AOCL
 
Amounts shown on the Consolidated Statements of Income
 
 
Nine months ended
 
Consolidated Statements of Income
line item
 
Nine months ended
 
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
 
 
September 29,
2019
 
September 30,
2018
Foreign currency contracts
 
$
14,422

 
$
31,253

 
$
15,947

 
$
(58
)
 
Motorcycles cost of goods sold
 
$
2,576,342

 
$
2,659,740

Commodity contracts
 
(55
)
 
(7
)
 
(45
)
 
(85
)
 
Motorcycles cost of goods sold
 
$
2,576,342

 
$
2,659,740

Treasury rate locks
 
—

 
—

 
(272
)
 
(271
)
 
Interest expense
 
$
23,304

 
$
23,180

Treasury rate locks
 
—

 
93

 
(97
)
 
(103
)
 
Financial Services interest expense
 
$
158,387

 
$
145,089

Interest rate swaps
 
(9,569
)
 
(400
)
 
(2,899
)
 
(950
)
 
Financial Services Interest expense
 
$
158,387

 
$
145,089

 
 
$
4,798

 
$
30,939


$
12,634


$
(1,467
)
 
 
 
 
 
 
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
 
 
Three months ended
 
Nine months ended
 
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
Foreign currency contracts
 
$
1,719

 
$
—

 
$
1,602

 
$
—

Commodity contracts
 
(15
)
 
(85
)
 
(8
)
 
59

Interest rate cap
 
(1
)
 
—

 
(142
)
 
—

 
 
$
1,703

 
$
(85
)
 
$
1,452

 
$
59