Product Warranty and Recall Campaigns

6 Months Ended

Jun. 30, 2024

Product Warranties Disclosures [Abstract]

Product Warranty and Recall Campaigns

Product Warranty and Recall Campaigns

The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except in certain markets, where the Company currently provides a standard three-year limited warranty. The Company also provides a five-year limited warranty on the battery for electric motorcycles. In addition, the Company provides a one-year warranty for parts and accessories. The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims at the time of shipment using an estimated cost based primarily on historical Company claim information.

Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company records estimated recall costs when the liability is both probable and estimable. This generally occurs when the Company's management approves and commits to a recall. The warranty and recall liability is included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets. Changes in the Company’s warranty and recall liabilities were as follows (in thousands):

	Three months ended				Six months ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Balance, beginning of period	$	67,159	$	74,668	$	64,144	$	75,960
Warranties issued during the period	14,556		10,058		29,188		21,985
Settlements made during the period	(16,091)		(14,528)		(29,846)		(26,579)
Recalls and changes to pre-existing warranty liabilities	4,009		(4,907)		6,147		(6,075)
Balance, end of period	$	69,633	$	65,291	$	69,633	$	65,291

The liability for recall campaigns, included in the balance above, was $15.7 million, $18.9 million and $18.4 million at June 30, 2024, December 31, 2023 and June 30, 2023, respectively.