Restructuring Activities

6 Months Ended

Jun. 27, 2021

Restructuring and Related Activities [Abstract]

The Company's restructuring activities are included in Restructuring expense on the Consolidated statements of operations.

In 2020, the Company initiated restructuring activities including a workforce reduction, the termination of certain current and future products, facility changes, optimizing its global independent dealer network, exiting certain international markets, and discontinuing its sales and manufacturing operations in India. The workforce reduction resulted in the termination of approximately 500 employees. In addition, the India action resulted in the termination of approximately 70 employees.

Since the inception of the restructuring activities in 2020 through the six months ended June 27, 2021, the Company has incurred cumulative restructuring expenses of $130.6 million. This includes restructuring expense by segment as follows (in thousands):


	Three months ended				Six months ended
	June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020
Motorcycles and Related Products	$	807	$	41,005	$	214	$	41,005
Financial Services	111		944		338		944
	$	918	$	41,949	$	552	$	41,949

The Company expects total estimated restructuring expenses of approximately $150 million, including approximately $139 million and $11 million expected to be in incurred in the Motorcycles and Financial Services segments, respectively. Total expected restructuring expenses include approximately $30 million related to employee termination benefits, $90 million related to contract termination and other costs and $30 million related to non-current asset adjustments, including accelerated depreciation and other adjustments to the carrying value of non-current assets. The Company expects to incur the remaining estimated restructuring expenses of approximately $20 million in 2021.

Changes in accrued restructuring expenses, which are included in Accrued liabilities on the Consolidated balance sheets, were as follows (in thousands):


	Three months ended June 27, 2021
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	3,007	$	4,467	$	—	$	7,474
Restructuring (benefit) expense	(22)		664		276		918
Utilized – cash	(1,685)		(3,008)		—		(4,693)
Utilized – non cash	—		—		(276)		(276)
Foreign currency changes	(54)		(39)		—		(93)
Balance, end of period	$	1,246	$	2,084	$	—	$	3,330

	Three months ended June 28, 2020
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	—	$	—	$	—	$	—
Restructuring expense	25,321		14,270		2,358		41,949
Utilized – cash	—		—		—		—
Utilized – non cash	—		—		(2,358)		(2,358)
Foreign currency changes	(23)		—		—		(23)
Balance, end of period	$	25,298	$	14,270	$	—	$	39,568

	Six months ended June 27, 2021
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	7,724	$	16,196	$	—	$	23,920
Restructuring (benefit) expense	(966)		1,769		(251)		552
Utilized – cash	(5,346)		(15,790)		—		(21,136)
Utilized – non cash	—		—		251		251
Foreign currency changes	(166)		(91)		—		(257)
Balance, end of period	$	1,246	$	2,084	$	—	$	3,330


	Six months ended June 28, 2020
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	—	$	—	$	—	$	—
Restructuring expense	25,321		14,270		2,358		41,949
Utilized – cash	—		—		—		—
Utilized – non cash	—		—		(2,358)		(2,358)
Foreign currency changes	(23)		—		—		(23)
Balance, end of period	$	25,298	$	14,270	$	—	$	39,568