Product Warranty and Recall Campaigns

6 Months Ended

Jun. 27, 2021

Product Warranties Disclosures [Abstract]

Product Warranty and Recall Campaigns

Product Warranty and Recall CampaignsThe 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 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. The warranty and recall liability is included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets. Changes in the Company’s warranty and recall liabilities were as follows (in thousands):

	Three months ended				Six months ended
	June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020
Balance, beginning of period	$	72,427	$	86,308	$	69,208	$	89,793
Warranties issued during the period	12,818		6,232		24,490		17,257
Settlements made during the period	(10,378)		(10,737)		(18,963)		(24,894)
Recalls and changes to pre-existing warranty liabilities	(1,241)		1,710		(1,109)		1,357
Balance, end of period	$	73,626	$	83,513	$	73,626	$	83,513

The liability for recall campaigns, included in the balance above, was $24.0 million, $24.7 million and $32.0 million at June 27, 2021, December 31, 2020 and June 28, 2020, respectively.