Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 27, 2022

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
	March 27, 2022						December 31, 2021						March 28, 2021
	Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities
Foreign currency contracts	$	585,451	$	18,832	$	3,576	$	562,262	$	14,644	$	1,388	$	402,814	$	6,356	$	6,071
Commodity contracts	964		316		—		996		19		39		668		3		20
Cross-currency swaps	1,367,460		18,835		—		1,367,460		35,071		—		1,367,460		73,449		—
	$	1,953,875	$	37,983	$	3,576	$	1,930,718	$	49,734	$	1,427	$	1,770,942	$	79,808	$	6,091
	Derivative Financial Instruments Not Designated as Hedging Instruments
	March 27, 2022						December 31, 2021						March 28, 2021
	Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities		Notional Value		Other Current Assets		Accrued Liabilities
Foreign currency contracts	$	230,336	$	587	$	722	$	241,935	$	1,299	$	916	$	214,337	$	670	$	595
Commodity contracts	11,866		2,435		—		10,631		641		18		8,172		1,193		40
Interest rate caps	412,478		2,060		—		504,526		360		—		844,673		170		—
	$	654,680	$	5,082	$	722	$	757,092	$	2,300	$	934	$	1,067,182	$	2,033	$	635

Gain/(Loss) on Derivative Cash Flow Hedges Reclassified From AOCI Into Income

The amounts of gains and losses related to the Company's 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				Three months ended
	March 27, 2022		March 28, 2021		March 27, 2022		March 28, 2021
Foreign currency contracts	$	8,444	$	14,037	$	5,655	$	(4,953)
Commodity contracts	562		3		226		(32)
Cross-currency swaps	(16,236)		(65,174)		(25,800)		(65,788)
Treasury rate lock contracts	—		—		(127)		(124)
Interest rate swaps	—		397		—		(2,689)
	$	(7,230)	$	(50,737)	$	(20,046)	$	(73,586)

The location and amount of gains and losses recognized in income related to the Company's 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 March 27, 2022
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	895,536	$	239,625	$	7,711	$	42,099
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	5,655	$	—	$	—	$	—
Commodity contracts	$	226	$	—	$	—	$	—
Cross-currency swaps	$	—	$	(25,800)	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(91)	$	(36)
	Three months ended March 28, 2021
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded	$	811,622	$	231,844	$	7,708	$	55,707
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts	$	(4,953)	$	—	$	—	$	—
Commodity contracts	$	(32)	$	—	$	—	$	—
Cross-currency swaps	$	—	$	(65,788)	$	—	$	—
Treasury rate lock contracts	$	—	$	—	$	(91)	$	(33)
Interest rate swaps	$	—	$	—	$	—	$	(2,689)

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 gains and losses on interest rate caps were recorded in Financial Services revenue.

	Amount of Gain/(Loss) Recognized in Income
	Three months ended
	March 27, 2022		March 28, 2021
Foreign currency contracts	$	(3,506)	$	(3,629)
Commodity contracts	2,387		703
Interest rate caps	1,700		123
	$	581	$	(2,803)