| Schedule of Derivative Instrument Fair Value |
The notional and fair values of the Company's derivative financial instruments under ASC Topic 815, at December 31, were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Financial Instruments
Designated as Cash Flow Hedging Instruments | | | 2022 | | 2021 | | Notional
Value | | Assets(a) | | Liabilities(b) | | Notional
Value | | Assets(a) | | Liabilities(b) | | | Foreign currency contracts | $ | 550,160 | | | $ | 6,054 | | | $ | 13,440 | | | $ | 562,262 | | | $ | 14,644 | | | $ | 1,388 | | | Commodity contracts | 1,361 | | | — | | | 410 | | | 996 | | | 19 | | | 39 | | | Cross-currency swaps | 1,367,460 | | | — | | | 36,101 | | | 1,367,460 | | | 35,071 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,918,981 | | | $ | 6,054 | | | $ | 49,951 | | | $ | 1,930,718 | | | $ | 49,734 | | | $ | 1,427 | | | Derivative Financial Instruments
Not Designated as Hedging Instruments | | | 2022 | | 2021 | | Notional
Value | | Assets(a) | | Liabilities(b) | | Notional
Value | | Assets(a) | | Liabilities(b) | | | Foreign currency contracts | $ | — | | | $ | — | | | $ | — | | | $ | 241,935 | | | $ | 1,299 | | | $ | 916 | | | Commodity contracts | 10,803 | | | 310 | | | 310 | | | 10,631 | | | 641 | | | 18 | | | Interest rate caps | 1,058,827 | | | 2,373 | | | — | | | 504,526 | | | 360 | | | — | | | $ | 1,069,630 | | | $ | 2,683 | | | $ | 310 | | | $ | 757,092 | | | $ | 2,300 | | | $ | 934 | |
(a)Includes $2.4 million of interest rate caps recorded in Other Long-term assets as of December 31, 2022 with all remaining amounts recorded in Other current assets. (b)Includes $24.2 million of cross-currency swaps recorded in Other long-term liabilities as of December 31, 2022 with all remaining amounts recorded in Accrued liabilities.
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| Schedule of Gain/(Loss) on Derivative Cash Flow Hedges Reclassified From AOCI Into Income |
The amount of gains and losses related to derivative financial instruments designated as cash flow hedges for the years ended December 31, were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gain/(Loss)
Recognized in OCI | | Gain/(Loss)
Reclassified from AOCL into Income | | 2022 | | 2021 | | 2020 | | 2022 | | 2021 | | 2020 | | Foreign currency contracts | $ | 26,093 | | | $ | 29,602 | | | $ | (14,507) | | | $ | 46,077 | | | $ | (12,531) | | | $ | 9,859 | | | Commodity contracts | 312 | | | 345 | | | (160) | | | 703 | | | 313 | | | (189) | | | Cross-currency swaps | (71,172) | | | (103,551) | | | 130,297 | | | (79,952) | | | (115,200) | | | 153,472 | | | Treasury rate lock contracts | — | | | — | | | — | | | (426) | | | (502) | | | (492) | | | Interest rate swaps | — | | | 397 | | | (8,449) | | | — | | | (2,689) | | | (14,543) | | | $ | (44,767) | | | $ | (73,207) | | | $ | 107,181 | | | $ | (33,598) | | | $ | (130,609) | | | $ | 148,107 | |
The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges for the years ended December 31, were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | Motorcycles and related products
cost of goods sold | | Selling, administrative &
engineering expense | | Interest expense | | Financial services interest expense | | 2022 | | Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 3,403,728 | | | $ | 1,079,882 | | | $ | 31,235 | | | $ | 217,653 | | | | | | | | | | | Gain/(loss) reclassified from AOCL into income: | | | | | | | | | Foreign currency contracts | $ | 46,077 | | | $ | — | | | $ | — | | | $ | — | | | Commodity contracts | $ | 703 | | | $ | — | | | $ | — | | | $ | — | | | Cross-currency swaps | $ | — | | | $ | (79,952) | | | $ | — | | | $ | — | | | Treasury rate lock contracts | $ | — | | | $ | — | | | $ | (363) | | | $ | (63) | | | | | | | | | | | 2021 | | Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 3,243,287 | | | $ | 1,048,174 | | | $ | 30,972 | | | $ | 192,944 | | | | | | | | | | | Gain/(loss) reclassified from AOCL into income: | | | | | | | | | Foreign currency contracts | $ | (12,531) | | | $ | — | | | $ | — | | | $ | — | | | Commodity contracts | $ | 313 | | | $ | — | | | $ | — | | | $ | — | | | Cross-currency swaps | $ | — | | | $ | (115,200) | | | $ | — | | | $ | — | | | Treasury rate lock contracts | $ | — | | | $ | — | | | $ | (363) | | | $ | (139) | | | Interest rate swaps | $ | — | | | $ | — | | | $ | — | | | $ | (2,689) | | | | | | | | | | | 2020 | | Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 2,435,745 | | | $ | 1,050,627 | | | $ | 31,121 | | | $ | 246,447 | | | | | | | | | | | Gain/(loss) reclassified from AOCL into income: | | | | | | | | | Foreign currency contracts | $ | 9,859 | | | $ | — | | | $ | — | | | $ | — | | | Commodity contracts | $ | (189) | | | $ | — | | | $ | — | | | $ | — | | | Cross-currency swaps | $ | — | | | $ | 153,472 | | | $ | — | | | $ | — | | | Treasury rate lock contracts | $ | — | | | $ | — | | | $ | (362) | | | $ | (130) | | | Interest rate swaps | $ | — | | | $ | — | | | $ | — | | | $ | (14,543) | |
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| 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 as of December 31, were as follows (in thousands). Gains and losses on foreign currency contracts and commodity contracts were recorded in Motorcycles and related products cost of goods sold. Gains and losses on interest rate caps were recorded in Selling, administrative & engineering expense. | | | | | | | | | | | | | | | | | | | | Amount of Gain/(Loss)
Recognized in Income | | 2022 | | 2021 | | 2020 | | Foreign currency contracts | $ | 7,730 | | | $ | (2,374) | | | $ | (205) | | | Commodity contracts | 1,264 | | | 1,966 | | | (148) | | | Interest rate caps | 530 | | | 313 | | | (532) | | | $ | 9,524 | | | $ | (95) | | | $ | (885) | |
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