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Restructuring Activities | 6 Months Ended
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Jun. 28, 2020
Restructuring and Related Activities [Abstract] |
Restructuring Expenses | Restructuring Activities Expenses associated with the Company's restructuring activities are included in Restructuring expense on the Consolidated Statements of Operations. 2020 Restructuring Activities – In the second quarter of 2020, the Company initiated restructuring activities including a workforce reduction and the termination of certain contracts. The workforce reduction will result in the elimination of approximately 700 positions globally, including the termination of approximately 500 employees. Restructuring expenses related to 2020 restructuring activities initiated in the second quarter, by segment, were as follows (in millions):
|  |  |  |  | Three and Six months ended June 28, 2020 |  |  |  |
Motorcycles and Related Products |  |  |  |  | $ | 41.0 |  |  |  |  |
Financial Services |  |  |  |  | 0.9 |  |  |  |  |
|  |  |  |  | $ | 41.9 |  |  |  |  |
Subsequent to June 28, 2020, the Company initiated additional restructuring actions related to the termination of certain current and future products and facility changes. Based on the actions approved as of the issuance date of this Form 10-Q, the Company expects restructuring expenses of approximately $94 million in 2020 including $44 million related to actions initiated after June 28, 2020. This includes approximately $81 million and $13 million expected to be in incurred in the Motorcycles and Financial Services segments, respectively. Total expected restructuring expenses under the 2020 restructuring activities include approximately $30 million related to employee termination benefits, $38 million related to contract termination and other costs and $26 million related to non-current asset adjustments, including accelerated depreciation and other adjustments to the carrying value of non-current assets. Changes in accrued restructuring expenses for the 2020 restructuring activities initiated in the second quarter of 2020 which are included in Accrued liabilities on the Consolidated balance sheets were as follows (in thousands):
| Three and Six months ended June 28, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Employee Termination Benefits |  | Contract Terminations & Other |  | Non-Current Asset Adjustments |  | Total |  |  |  |  |  |  |  |
Balance, beginning of period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  |
Restructuring expense | 25,321 |  |  | 14,270 |  |  | 2,358 |  |  | 41,949 |  |  |  |  |  |  |  |  |
Utilized – cash | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Utilized – non cash | — |  |  | — |  |  | (2,358) |  |  | (2,358) |  |  |  |  |  |  |  |  |
Foreign currency changes | (23) |  |  | — |  |  | — |  |  | (23) |  |  |  |  |  |  |  |  |
Balance, end of period | $ | 25,298 |  |  | $ | 14,270 |  |  | $ | — |  |  | $ | 39,568 |  |  |  |  |  |  |  |  |
2018 Restructuring Activities – In 2018, the Company initiated a plan to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization plan which included the consolidation of its motorcycle assembly plant in Kansas City, Missouri, into its plant in York, Pennsylvania, and the closure of its wheel operations in Adelaide, Australia (Manufacturing Optimization Plan). The consolidation of operations included the elimination of approximately 800 jobs at the Kansas City facility and the addition of approximately 450 jobs at the York facility through 2019. The Adelaide facility closure included the elimination of approximately 90 jobs. Through December 31, 2019, the Motorcycles segment incurred cumulative restructuring expenses of $122.2 million and other costs related to temporary inefficiencies of $23.2 million under the Manufacturing Optimization Plan. The plant consolidation and closures were completed in 2019. No expenses were recorded under the Manufacturing Optimization Plan in the six months ended June 28, 2020, and no additional expenses are expected under the plan. In 2018, the Company initiated a reorganization of its workforce (Reorganization Plan), which was completed in 2019. As a result, approximately 70 employees left the Company on an involuntary basis. Changes in accrued restructuring expenses for the 2018 restructuring activities which are included in Accrued liabilities on the Consolidated balance sheets during 2019 were as follows (in thousands). The changes in accrued restructuring expenses for the 2018 restructuring activities during the three and six months ended June 28, 2020 were immaterial.
| Three months ended June 30, 2019 |  |  |  |  |  |  |  |  |  |
| Manufacturing Optimization Plan |  |  |  |  |  |  |  | Reorganization Plan |  |
| Employee Termination Benefits |  | Accelerated Depreciation |  | Other |  | Total |  | Employee Termination Benefits |  | Total
Balance, beginning of period | $ | 22,401 |  |  | $ | — |  |  | $ | 187 |  |  | $ | 22,588 |  |  | $ | 1,051 |  |  | $ | 23,639 |
Restructuring expense (benefit) | 8 |  |  | 5,586 |  |  | 4,830 |  |  | 10,424 |  |  | (1) |  |  | 10,423 |
Utilized – cash | (12,734) |  |  | — |  |  | (4,294) |  |  | (17,028) |  |  | (882) |  |  | (17,910) |
Utilized – non cash | — |  |  | (5,586) |  |  | (696) |  |  | (6,282) |  |  | — |  |  | (6,282) |
Foreign currency changes | (14) |  |  | — |  |  | (4) |  |  | (18) |  |  | (24) |  |  | (42) |
Balance, end of period | $ | 9,661 |  |  | $ | — |  |  | $ | 23 |  |  | $ | 9,684 |  |  | $ | 144 |  |  | $ | 9,828 |
| Six months ended June 30, 2019 |  |  |  |  |  |  |  |  |  |
| Manufacturing Optimization Plan |  |  |  |  |  |  |  | Reorganization Plan |  |
| Employee Termination Benefits |  | Accelerated Depreciation |  | Other |  | Total |  | Employee Termination Benefits |  | Total
Balance, beginning of period | $ | 24,958 |  |  | $ | — |  |  | $ | 79 |  |  | $ | 25,037 |  |  | $ | 3,461 |  |  | $ | 28,498 |
Restructuring expense (benefit) | 17 |  |  | 13,965 |  |  | 10,466 |  |  | 24,448 |  |  | (395) |  |  | 24,053 |
Utilized – cash | (15,334) |  |  | — |  |  | (9,822) |  |  | (25,156) |  |  | (2,896) |  |  | (28,052) |
Utilized – non cash | — |  |  | (13,965) |  |  | (696) |  |  | (14,661) |  |  | — |  |  | (14,661) |
Foreign currency changes | 20 |  |  | — |  |  | (4) |  |  | 16 |  |  | (26) |  |  | (10) |
Balance, end of period | $ | 9,661 |  |  | $ | — |  |  | $ | 23 |  |  | $ | 9,684 |  |  | $ | 144 |  |  | $ | 9,828 |
The Company incurred incremental Motorcycles and Related Products cost of goods sold due to temporary inefficiencies resulting from implementing the Manufacturing Optimization Plan during the three and six months ended June 30, 2019 of $4.0 million and $7.6 million, respectively.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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