Derivative Financial Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 27, 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
	June 27, 2021						December 31, 2020						June 28, 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	$	493,919	$	7,015	$	3,433	$	533,925	$	11	$	21,927	$	359,754	$	3,108	$	1,537
Commodity contracts	735		134		—		671		—		52		581		—		49
Cross-currency swaps	1,396,542		88,730		—		1,367,460		138,622		—		1,367,460		24,288		29,975
Interest rate swaps	—		—		—		450,000		—		3,086		450,000		—		9,120
	$	1,891,196	$	95,879	$	3,433	$	2,352,056	$	138,633	$	25,065	$	2,177,795	$	27,396	$	40,681
	Derivative Financial Instruments Not Designated as Hedging Instruments
	June 27, 2021						December 31, 2020						June 28, 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	$	151,252	$	215	$	401	$	245,494	$	737	$	435	$	173,805	$	1,295	$	247
Commodity contracts	9,112		1,219		2		6,806		849		21		7,401		214		491
Interest rate caps	721,850		151		—		978,058		47		—		1,277,389		152		—
	$	882,214	$	1,585	$	403	$	1,230,358	$	1,633	$	456	$	1,458,595	$	1,661	$	738

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 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020
Foreign currency contracts	$	(1,861)	$	(4,062)	$	12,176	$	12,837	$	(7,594)	$	5,305	$	(12,547)	$	8,705
Commodity contracts	153		(28)		156		(157)		3		(53)		(29)		(188)
Cross-currency swaps	15,282		35,595		(49,892)		(14,014)		21,613		36,915		(44,175)		24,009
Treasury rate lock contracts	—		—		—		—		(124)		(122)		(248)		(246)
Interest rate swaps	—		(1,176)		397		(6,509)		—		(3,453)		(2,689)		(6,569)
	$	13,574	$	30,329	$	(37,163)	$	(7,843)	$	13,898	$	38,592	$	(59,688)	$	25,711

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 27, 2021
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	924,449	$	261,509	$	7,722	$	48,621
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	(7,594)	$	—	$	—	$	—
Commodity contracts	$	3	$	—	$	—	$	—
Cross-currency swaps	$	—	$	21,613	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(90)	$	(34)
	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 swaps	$	—	$	36,915	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(90)	$	(32)
Interest rate swaps	$	—	$	—	$	—	$	(3,453)

	Motorcycles cost of goods sold		Selling, administrative & engineering expense		Interest expense		Financial Services interest expense
	Six months ended June 27, 2021
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	1,736,071	$	493,353	$	15,430	$	104,328
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	(12,547)	$	—	$	—	$	—
Commodity contracts	$	(29)	$	—	$	—	$	—
Cross-currency swaps	$	—	$	(44,175)	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(181)	$	(67)
Interest rate swaps	$	—	$	—	$	—	$	(2,689)
	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 lock contracts	$	—	$	—	$	(181)	$	(65)
Interest rate swaps	$	—	$	—	$	—	$	(6,569)

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				Six months ended
	June 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020
Foreign currency contracts	$	(1,919)	$	(522)	$	(5,548)	$	1,672
Commodity contracts	722		558		1,426		(993)
Interest rate caps	(19)		(427)		104		(427)
	$	(1,216)	$	(391)	$	(4,018)	$	252