Restructuring Expenses

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring Expenses

Restructuring Expenses

In January 2018, the Company initiated a plan to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization plan which includes the consolidation of its plant in Kansas City, Missouri, into its plant in York, Pennsylvania, and the closure of its wheel operations in Adelaide, Australia (Manufacturing Optimization Plan). The consolidation of operations resulted in the elimination of approximately 800 jobs at the Kansas City facility and the addition of approximately 450 jobs at the York facility through 2019. The Adelaide facility closure resulted in the elimination of approximately 90 jobs.

The Motorcycles segment incurred $145.4 million of restructuring expenses and other consolidation costs under the Manufacturing Optimization Plan since its inception in 2018, including $43.0 million in 2019. Approximately 60% of total restructuring expenses and other consolidation costs under the Manufacturing Optimization Plan were cash charges.

In November 2018, the Company implemented a reorganization of its workforce (Reorganization Plan). As a result, approximately 70 employees left the Company on an involuntary basis.

Restructuring expense related to the restructuring plans is presented as a line item in the Consolidated statements of income and the accrued restructuring liability is recorded in Accrued liabilities on the Consolidated balance sheets. Changes in the accrued restructuring liability during the years ended December 31, were as follows (in thousands):

	2019
	Manufacturing Optimization Plan												Reorganization Plan
	Employee Termination Benefits			Accelerated Depreciation			Other			Total			Employee Termination Benefits			Total
Balance, beginning of period	$	24,958		$	—		$	79		$	25,037		$	3,461		$	28,498
Restructuring expense	15			14,684			17,971			32,670			(317		)	32,353
Utilized - cash	(24,102		)	—			(16,950		)	(41,052		)	(3,118		)	(44,170		)
Utilized - non cash	—			(14,684		)	(1,094		)	(15,778		)	—			(15,778		)
Foreign currency changes	(6		)	—			(4		)	(10		)	(26		)	(36		)
Balance, end of period	$	865		$	—		$	2		$	867		$	—		$	867

	2018
	Manufacturing Optimization Plan												Reorganization Plan
	Employee Termination Benefits			Accelerated Depreciation			Other			Total			Employee Termination Benefits			Total
Balance, beginning of period	$	—		$	—		$	—		$	—		$	—		$	—
Restructuring expense	38,666			34,654			16,182			89,502			3,899			93,401
Utilized - cash	(13,060		)	—			(16,095		)	(29,155		)	(444		)	(29,599		)
Utilized - non cash	—			(34,654		)	—			(34,654		)	—			(34,654		)
Foreign currency changes	(648		)	—			(8		)	(656		)	6			(650		)
Balance, end of period	$	24,958		$	—		$	79		$	25,037		$	3,461		$	28,498

The Company incurred incremental Motorcycles and Related Products cost of goods sold due to temporary inefficiencies resulting from implementing the Manufacturing Optimization Plan during 2019 and 2018 of $10.3 million and $12.9 million, respectively.