Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 27, 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
	September 27, 2020						December 31, 2019						September 29, 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	$	352,933	$	2,334	$	6,132	$	434,321	$	3,505	$	3,661	$	441,131	$	11,459	$	790
Commodity contracts	801		95		—		616		—		80		744		—		56
Cross-currency swaps	1,367,460		57,787		292		660,780		8,326		—		—		—		—
Interest rate swap	450,000		—		6,184		900,000		—		9,181		900,000		—		11,164
	$	2,171,194	$	60,216	$	12,608	$	1,995,717	$	11,831	$	12,922	$	1,341,875	$	11,459	$	12,010
	Derivative Financial Instruments Not Designated as Hedging Instruments
	September 27, 2020						December 31, 2019						September 29, 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	$	284,991	$	342	$	574	$	220,139	$	721	$	865	$	193,959	$	278	$	219
Commodity contracts	6,854		231		215		8,270		95		147		9,485		230		360
Interest rate caps	1,124,260		60		—		375,980		2		—		427,530		4		—
	$	1,416,105	$	633	$	789	$	604,389	$	818	$	1,012	$	630,974	$	512	$	579

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				Nine months ended				Three months ended				Nine months ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Foreign currency contracts	$	(6,587)	$	13,135	$	6,250	$	14,422	$	3,027	$	5,826	$	11,732	$	15,947
Commodity contracts	131		(15)		(26)		(55)		(12)		(28)		(201)		(45)
Cross-currency swaps	63,182		—		49,168		—		59,625		—		83,634		—
Treasury rate lock contracts	—		—		—		—		(124)		(124)		(370)		(369)
Interest rate swap	(994)		(708)		(7,503)		(9,569)		(3,931)		(1,463)		(10,500)		(2,899)
	$	55,732	$	12,412	$	47,889	$	4,798	$	58,585	$	4,211	$	84,295	$	12,634

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 September 27, 2020
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	676,796	$	231,721	$	7,783	$	67,533
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	3,027	$	—	$	—	$	—
Commodity contracts	$	(12)	$	—	$	—	$	—
Cross-currency swaps	$	—	$	59,625	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(91)	$	(33)
Interest rate swap	$	—	$	—	$	—	$	(3,931)
	Three months ended September 29, 2019
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	748,878	$	309,031	$	7,789	$	53,390
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	5,826	$	—	$	—	$	—
Commodity contracts	$	(28)	$	—	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(91)	$	(33)
Interest rate swap	$	—	$	—	$	—	$	(1,463)

	Motorcycles cost of goods sold		Selling, administrative & engineering expense		Interest expense		Financial Services interest expense
	Nine months ended September 27, 2020
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	2,019,310	$	734,057	$	23,307	$	182,193
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	11,732	$	—	$	—	$	—
Commodity contracts	$	(201)	$	—	$	—	$	—
Cross-currency swaps	$	—	$	83,634	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(272)	$	(98)
Interest rate swap	$	—	$	—	$	—	$	(10,500)
	Nine months ended September 29, 2019
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	2,576,342	$	885,273	$	23,304	$	158,387
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	15,947	$	—	$	—	$	—
Commodity contracts	$	(45)	$	—	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(272)	$	(97)
Interest rate swap	$	—	$	—	$	—	$	(2,899)

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 caps were recorded in Financial Services interest expense.

	Amount of Gain/(Loss) Recognized in Income
	Three months ended				Nine months ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Foreign currency contracts	$	(3,569)	$	1,719	$	(1,897)	$	1,602
Commodity contracts	134		(15)		(859)		(8)
Interest rate caps	92		(1)		519		(142)
	$	(3,343)	$	1,703	$	(2,237)	$	1,452