Product Warranty and Recall Campaigns

3 Months Ended

Mar. 29, 2020

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 in Japan, where the Company currently provides a standard three-year limited warranty. The Company also provides a five-year unlimited warranty on the battery for new electric motorcycles. In addition, the Company provides a one-year warranty for parts and 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 at the time of sale 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 records estimated recall costs when the liability is both probable and estimable. This generally occurs when the Company's management approves and commits to a recall. Changes in the Company’s warranty and recall liabilities were as follows (in thousands):

	Three months ended
	March 29, 2020		March 31, 2019
Balance, beginning of period	$	89,793	$	131,740
Warranties issued during the period	11,025		11,617
Settlements made during the period	(14,157)		(19,617)
Recalls and changes to pre-existing warranty liabilities	(353)		(1,353)
Balance, end of period	$	86,308	$	122,387

The liability for recall campaigns was $33.6 million, $36.4 million and $64.1 million at March 29, 2020, December 31, 2019 and March 31, 2019, respectively. Additionally, during the three months ended March 31, 2019 the Company recorded supplier recoveries within operating expenses separate from the amounts disclosed above of $28.0 million.