Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 28, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instrument Fair Value

The notional and fair values of the Company's derivative financial instruments under ASC Topic 815 were as follows (in thousands):

	Derivative Financial Instruments Designated as Cash Flow Hedging Instruments
	June 28, 2020						December 31, 2019						June 30, 2019
	Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities
Foreign currency contracts	$	359,754	$	3,108	$	1,537	$	434,321	$	3,505	$	3,661	$	495,736	$	6,638	$	3,490
Commodity contracts	581		—		49		616		—		80		627		—		69
Cross-currency swap	1,367,460		24,288		29,975		660,780		8,326		—		—		—		—
Interest rate swaps	450,000		—		9,120		900,000		—		9,181		900,000		—		11,920
	$	2,177,795	$	27,396	$	40,681	$	1,995,717	$	11,831	$	12,922	$	1,396,363	$	6,638	$	15,479
	Derivative Financial Instruments Not Designated as Hedging Instruments
	June 28, 2020						December 31, 2019						June 30, 2019
	Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities
Foreign currency contracts	$	173,805	$	1,295	$	247	$	220,139	$	721	$	865	$	317,344	$	273	$	1,816
Commodity contracts	7,401		214		491		8,270		95		147		7,710		5		260
Interest rate cap	1,277,389		152		—		375,980		2		—		481,509		4		—
	$	1,458,595	$	1,661	$	738	$	604,389	$	818	$	1,012	$	806,563	$	282	$	2,076

Gain/(Loss) on Derivative Cash Flow Hedges Reclassified From AOCI Into Income

The amounts of gains and losses related to derivative financial instruments designated as cash flow hedges were as follows (in thousands):

	Gain/(Loss) Recognized in OCI								Gain/(Loss) Reclassified from AOCL into Income
	Three months ended				Six months ended				Three months ended				Six months ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Foreign currency contracts	$	(4,062)	$	(2,865)	$	12,837	$	1,287	$	5,305	$	7,668	$	8,705	$	10,121
Commodity contracts	(28)		(70)		(157)		(40)		(53)		(7)		(188)		(17)
Cross-currency swap	35,595		—		(14,014)		—		36,915		—		24,009		—
Treasury rate locks	—		—		—		—		(122)		(123)		(246)		(245)
Interest rate swaps	(1,176)		(5,856)		(6,509)		(8,861)		(3,453)		(830)		(6,569)		(1,436)
	$	30,329	$	(8,791)	$	(7,843)	$	(7,614)	$	38,592	$	6,708	$	25,711	$	8,423

The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges were as follows (in thousands):

	Motorcycles cost of goods sold		Selling, administrative & engineering expense		Interest expense		Financial Services interest expense
	Three months ended June 28, 2020
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	561,646	$	224,365	$	7,769	$	62,187
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	5,305	$	—	$	—	$	—
Commodity contracts	$	(53)	$	—	$	—	$	—
Cross-currency swap	$	—	$	36,915	$	—	$	—
Treasury rate locks	$	—	$	—	$	(90)	$	(32)
Interest rate swaps	$	—	$	—	$	—	$	(3,453)
	Three months ended June 30, 2019
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	979,266	$	307,617	$	7,784	$	52,673
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	7,668	$	—	$	—	$	—
Commodity contracts	$	(7)	$	—	$	—	$	—
Treasury rate locks	$	—	$	—	$	(91)	$	(32)
Interest rate swaps	$	—	$	—	$	—	$	(830)

	Motorcycles cost of goods sold		Selling, administrative & engineering expense		Interest expense		Financial Services interest expense
	Six months ended June 28, 2020
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	1,342,514	$	502,336	$	15,524	$	114,660
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	8,705	$	—	$	—	$	—
Commodity contracts	$	(188)	$	—	$	—	$	—
Cross-currency swaps	$	—	$	24,009	$	—	$	—
Treasury rate locks	$	—	$	—	$	(181)	$	(65)
Interest rate swaps	$	—	$	—	$	—	$	(6,569)
	Six months ended June 30, 2019
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	1,827,464	$	576,242	$	15,515	$	104,997
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	10,121	$	—	$	—	$	—
Commodity contracts	$	(17)	$	—	$	—	$	—
Treasury rate locks	$	—	$	—	$	(181)	$	(64)
Interest rate swaps	$	—	$	—	$	—	$	(1,436)

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments were as follows (in thousands). Gains and losses on 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				Six months ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Foreign currency contracts	$	(522)	$	(1,004)	$	1,672	$	(117)
Commodity contracts	558		(310)		(993)		7
Interest rate cap	(427)		(141)		(427)		(141)
	$	(391)	$	(1,455)	$	252	$	(251)