Restructuring Activities

3 Months Ended

Mar. 27, 2022

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

The Company's restructuring activities are included in Restructuring benefit 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 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. These restructuring activities are essentially complete, and the Company does not expect restructuring expenses of any significance in 2022.

Since the inception of the restructuring activities in 2020 through the three months ended March 27, 2022, the Company has incurred cumulative restructuring expenses of $133.2 million, including $121.7 million and $11.5 million in the Motorcycles and Financial Services segments, respectively. This includes restructuring (benefit) expense for the three months ended March 27, 2022 and March 28, 2021 by segment as follows (in thousands):

	Three months ended
	March 27, 2022		March 28, 2021
Motorcycles and Related Products	$	(128)	$	(593)
Financial Services	—		227
	$	(128)	$	(366)

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

	Three months ended March 27, 2022
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	121	$	2,874	$	—	$	2,995
Restructuring benefit	—		(128)		—		(128)
Utilized – cash	(18)		(1,614)		—		(1,632)
Foreign currency changes	(3)		1		—		(2)
Balance, end of period	$	100	$	1,133	$	—	$	1,233
	Three months ended March 28, 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	(944)		1,106		(528)		(366)
Utilized – cash	(3,661)		(12,781)		—		(16,442)
Utilized – non cash	—		—		528		528
Foreign currency changes	(112)		(54)		—		(166)
Balance, end of period	$	3,007	$	4,467	$	—	$	7,474