Product Warranty And Safety Recall Campaigns

9 Months Ended

Sep. 25, 2011

Product Warranty And Safety Recall Campaigns [Abstract]

Product Warranty And Safety Recall Campaigns

14. Product Warranty and Safety Recall Campaigns

The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company currently provides a standard three-year limited warranty on all new motorcycles sold. The warranty coverage for the retail customer includes parts and labor and generally begins when the motorcycle is sold to a retail customer. The Company maintains reserves for future warranty claims using an estimated cost per unit sold, which is based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary safety recall campaigns. The Company reserves for all estimated costs associated with safety recalls in the period that the safety recalls are announced.

Changes in the Company's warranty and safety recall liability were as follows (in thousands):

	Three months ended						Nine months ended
	September 25, 2011			September 26, 2010			September 25, 2011			September 26, 2010
Balance, beginning of period	$	55,407		$	62,569		$	54,134		$	68,044
Warranties issued during the period		10,210			10,865			33,770			27,547
Settlements made during the period		(15,016	)		(16,077	)		(37,882	)		(44,150	)
Recalls and changes to pre-existing warranty liabilities		759			(903	)		1,338			5,013
Balance, end of period	$	51,360		$	56,454		$	51,360		$	56,454

The liability for safety recall campaigns was $2.2 million and $2.2 million as of September 25, 2011 and September 26, 2010, respectively.