Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 28, 2021

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
	March 28, 2021						December 31, 2020						March 29, 2020
	Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities
Foreign currency contracts	$	402,814	$	6,356	$	6,071	$	533,925	$	11	$	21,927	$	414,753	$	12,108	$	575
Commodity contracts	668		3		20		671		—		52		482		—		74
Cross-currency swaps	1,367,460		73,449		—		1,367,460		138,622		—		660,780		—		41,283
Interest rate swaps	—		—		—		450,000		—		3,086		900,000		—		11,398
	$	1,770,942	$	79,808	$	6,091	$	2,352,056	$	138,633	$	25,065	$	1,976,015	$	12,108	$	53,330
	Derivative Financial Instruments Not Designated as Hedging Instruments
	March 28, 2021						December 31, 2020						March 29, 2020
	Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities
Foreign currency contracts	$	214,337	$	670	$	595	$	245,494	$	737	$	435	$	182,642	$	2,573	$	2,194
Commodity contracts	8,172		1,193		40		6,806		849		21		7,769		—		1,452
Interest rate caps	844,673		170		—		978,058		47		—		326,976		2		—
	$	1,067,182	$	2,033	$	635	$	1,230,358	$	1,633	$	456	$	517,387	$	2,575	$	3,646

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				Three months ended
	March 28, 2021		March 29, 2020		March 28, 2021		March 29, 2020
Foreign currency contracts	$	14,037	$	16,899	$	(4,953)	$	3,400
Commodity contracts	3		(129)		(32)		(135)
Cross-currency swaps	(65,174)		(49,609)		(65,788)		(12,906)
Treasury rate lock contracts	—		—		(124)		(124)
Interest rate swaps	397		(5,333)		(2,689)		(3,116)
	$	(50,737)	$	(38,172)	$	(73,586)	$	(12,881)

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 March 28, 2021
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	811,622	$	231,844	$	7,708	$	55,707
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	(4,953)	$	—	$	—	$	—
Commodity contracts	$	(32)	$	—	$	—	$	—
Cross-currency swaps	$	—	$	(65,788)	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(91)	$	(33)
Interest rate swap	$	—	$	—	$	—	$	(2,689)
	Three months ended March 29, 2020
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	780,868	$	277,971	$	7,755	$	52,473
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	3,400	$	—	$	—	$	—
Commodity contracts	$	(135)	$	—	$	—	$	—
Cross-currency swaps	$	—	$	(12,906)	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(91)	$	(33)
Interest rate swaps	$	—	$	—	$	—	$	(3,116)

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
	March 28, 2021		March 29, 2020
Foreign currency contracts	$	(3,629)	$	2,194
Commodity contracts	703		(1,551)
Interest rate caps	123		—
	$	(2,803)	$	643