Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 26, 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
	September 26, 2021						December 31, 2020						September 27, 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	$	406,220	$	10,174	$	502	$	533,925	$	11	$	21,927	$	352,933	$	2,334	$	6,132
Commodity contracts	1,000		458		—		671		—		52		801		95		—
Cross-currency swaps	1,367,460		47,989		—		1,367,460		138,622		—		1,367,460		57,787		292
Interest rate swaps	—		—		—		450,000		—		3,086		450,000		—		6,184
	$	1,774,680	$	58,621	$	502	$	2,352,056	$	138,633	$	25,065	$	2,171,194	$	60,216	$	12,608
	Derivative Financial Instruments Not Designated as Hedging Instruments
	September 26, 2021						December 31, 2020						September 27, 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	$	135,381	$	375	$	162	$	245,494	$	737	$	435	$	284,991	$	342	$	574
Commodity contracts	9,920		739		30		6,806		849		21		6,854		231		215
Interest rate caps	608,222		112		—		978,058		47		—		1,124,260		60		—
	$	753,523	$	1,226	$	192	$	1,230,358	$	1,633	$	456	$	1,416,105	$	633	$	789

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 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020
Foreign currency contracts	$	8,653	$	(6,587)	$	20,829	$	6,250	$	(3,504)	$	3,027	$	(16,051)	$	11,732
Commodity contracts	390		131		546		(26)		65		(12)		36		(201)
Cross-currency swaps	(40,741)		63,182		(90,633)		49,168		(33,600)		59,625		(77,775)		83,634
Treasury rate lock contracts	—		—		—		—		(127)		(124)		(375)		(370)
Interest rate swaps	—		(994)		397		(7,503)		—		(3,931)		(2,689)		(10,500)
	$	(31,698)	$	55,732	$	(68,861)	$	47,889	$	(37,166)	$	58,585	$	(96,854)	$	84,295

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 26, 2021
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	850,193	$	254,312	$	7,779	$	44,770
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	(3,504)	$	—	$	—	$	—
Commodity contracts	$	65	$	—	$	—	$	—
Cross-currency swaps	$	—	$	(33,600)	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(91)	$	(36)
	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 swaps	$	—	$	—	$	—	$	(3,931)

	Motorcycles cost of goods sold		Selling, administrative & engineering expense		Interest expense		Financial Services interest expense
	Nine months ended September 26, 2021
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	2,586,264	$	747,665	$	23,209	$	149,098
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	(16,051)	$	—	$	—	$	—
Commodity contracts	$	36	$	—	$	—	$	—
Cross-currency swaps	$	—	$	(77,775)	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(272)	$	(103)
Interest rate swaps	$	—	$	—	$	—	$	(2,689)
	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 swaps	$	—	$	—	$	—	$	(10,500)

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 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020
Foreign currency contracts	$	2,152	$	(3,569)	$	(3,396)	$	(1,897)
Commodity contracts	102		134		1,528		(859)
Interest rate caps	(39)		92		65		519
	$	2,215	$	(3,343)	$	(1,803)	$	(2,237)