Restructuring Activities

6 Months Ended

Jun. 26, 2022

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

The Company's restructuring activities are included in Restructuring (benefit) expense 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 six months ended June 26, 2022, the Company has incurred cumulative restructuring expenses of $133.0 million, including $121.5 million and $11.5 million in the Motorcycles and Financial Services segments, respectively. This includes restructuring (benefit) expense for the three and six month periods ended June 26, 2022 and June 27, 2021 by segment as follows (in thousands):

	Three months ended				Six months ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Motorcycles and Related Products	$	(264)	$	807	$	(392)	$	214
Financial Services	—		111		—		338
	$	(264)	$	918	$	(392)	$	552

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

	Three months ended June 26, 2022
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	100	$	1,133	$	—	$	1,233
Restructuring benefit	—		(264)		—		(264)
Utilized – cash	(18)		(114)		—		(132)
Utilized – non cash	—		—		—		—
Foreign currency changes	(3)		(11)		—		(14)
Balance, end of period	$	79	$	744	$	—	$	823
	Three months ended June 27, 2021
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	3,007	$	4,467	$	—	$	7,474
Restructuring (benefit) expense	(22)		664		276		918
Utilized – cash	(1,685)		(3,008)		—		(4,693)
Utilized – non cash	—		—		(276)		(276)
Foreign currency changes	(54)		(39)		—		(93)
Balance, end of period	$	1,246	$	2,084	$	—	$	3,330
	Six months ended June 26, 2022
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	121	$	2,874	$	—	$	2,995
Restructuring benefit	—		(392)		—		(392)
Utilized – cash	(36)		(1,728)		—		(1,764)
Utilized – non cash	—		—		—		—
Foreign currency changes	(6)		(10)		—		(16)
Balance, end of period	$	79	$	744	$	—	$	823
	Six months ended June 27, 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	(966)		1,769		(251)		552
Utilized – cash	(5,346)		(15,790)		—		(21,136)
Utilized – non cash	—		—		251		251
Foreign currency changes	(166)		(91)		—		(257)
Balance, end of period	$	1,246	$	2,084	$	—	$	3,330