Restructuring Activities

9 Months Ended

Sep. 25, 2022

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

The Company's restructuring activities are included in Restructuring expense (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 nine months ended September 25, 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 expense (benefit) for the three and nine month periods ended September 25, 2022 and September 26, 2021 by segment as follows (in thousands):

	Three months ended				Nine months ended
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Motorcycles and Related Products	$	3	$	517	$	(389)	$	731
Financial Services	—		98		—		436
	$	3	$	615	$	(389)	$	1,167

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

	Three months ended September 25, 2022
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	79	$	744	$	—	$	823
Restructuring expense	—		3		—		3
Utilized – cash	(19)		(221)		—		(240)
Utilized – non cash	—		—		—		—
Foreign currency changes	(4)		(5)		—		(9)
Balance, end of period	$	56	$	521	$	—	$	577
	Three months ended September 26, 2021
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	1,246	$	2,084	$	—	$	3,330
Restructuring (benefit) expense	(165)		807		(27)		615
Utilized – cash	(397)		(1,197)		—		(1,594)
Utilized – non cash	—		—		27		27
Foreign currency changes	(7)		(21)		—		(28)
Balance, end of period	$	677	$	1,673	$	—	$	2,350
	Nine months ended September 25, 2022
	Employee Termination Benefits		Contract Terminations & Other		Non-Current Asset Adjustments		Total
Balance, beginning of period	$	121	$	2,874	$	—	$	2,995
Restructuring benefit	—		(389)		—		(389)
Utilized – cash	(55)		(1,949)		—		(2,004)
Utilized – non cash	—		—		—		—
Foreign currency changes	(10)		(15)		—		(25)
Balance, end of period	$	56	$	521	$	—	$	577
	Nine months ended September 26, 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	(1,131)		2,576		(278)		1,167
Utilized – cash	(5,743)		(16,987)		—		(22,730)
Utilized – non cash	—		—		278		278
Foreign currency changes	(173)		(112)		—		(285)
Balance, end of period	$	677	$	1,673	$	—	$	2,350