XML 50 R37.htm IDEA: XBRL DOCUMENT
v3.20.2

Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended
--- | ---
Jun. 28, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instrument Fair Value | The notional and fair values of the Company's derivative financial instruments under ASC Topic 815 were as follows (in thousands):
| Derivative Financial Instruments Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| June 28, 2020 |  |  |  |  |  | December 31, 2019 |  |  |  |  |  | June 30, 2019 |  |  |  |
| Notional Value |  | Other Current Assets |  | Accrued Liabilities |  | Notional Value |  | Other Current Assets |  | Accrued Liabilities |  | Notional Value |  | Other Current Assets |  | Accrued Liabilities
Foreign currency contracts | $ | 359,754 |  |  | $ | 3,108 |  |  | $ | 1,537 |  |  | $ | 434,321 |  |  | $ | 3,505 |  |  | $ | 3,661 |  |  | $ | 495,736 |  |  | $ | 6,638 |  |  | $ | 3,490 |
Commodity contracts | 581 |  |  | — |  |  | 49 |  |  | 616 |  |  | — |  |  | 80 |  |  | 627 |  |  | — |  |  | 69 |
Cross-currency swap | 1,367,460 |  |  | 24,288 |  |  | 29,975 |  |  | 660,780 |  |  | 8,326 |  |  | — |  |  | — |  |  | — |  |  | — |
Interest rate swaps | 450,000 |  |  | — |  |  | 9,120 |  |  | 900,000 |  |  | — |  |  | 9,181 |  |  | 900,000 |  |  | — |  |  | 11,920 |
| $ | 2,177,795 |  |  | $ | 27,396 |  |  | $ | 40,681 |  |  | $ | 1,995,717 |  |  | $ | 11,831 |  |  | $ | 12,922 |  |  | $ | 1,396,363 |  |  | $ | 6,638 |  |  | $ | 15,479 |
| Derivative Financial Instruments Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| June 28, 2020 |  |  |  |  |  | December 31, 2019 |  |  |  |  |  | June 30, 2019 |  |  |  |
| Notional Value |  | Other Current Assets |  | Accrued Liabilities |  | Notional Value |  | Other Current Assets |  | Accrued Liabilities |  | Notional Value |  | Other Current Assets |  | Accrued Liabilities
Foreign currency contracts | $ | 173,805 |  |  | $ | 1,295 |  |  | $ | 247 |  |  | $ | 220,139 |  |  | $ | 721 |  |  | $ | 865 |  |  | $ | 317,344 |  |  | $ | 273 |  |  | $ | 1,816 |
Commodity contracts | 7,401 |  |  | 214 |  |  | 491 |  |  | 8,270 |  |  | 95 |  |  | 147 |  |  | 7,710 |  |  | 5 |  |  | 260 |
Interest rate cap | 1,277,389 |  |  | 152 |  |  | — |  |  | 375,980 |  |  | 2 |  |  | — |  |  | 481,509 |  |  | 4 |  |  | — |
| $ | 1,458,595 |  |  | $ | 1,661 |  |  | $ | 738 |  |  | $ | 604,389 |  |  | $ | 818 |  |  | $ | 1,012 |  |  | $ | 806,563 |  |  | $ | 282 |  |  | $ | 2,076 |
Gain/(Loss) on Derivative Cash Flow Hedges Reclassified From AOCI Into Income | The amounts of gains and losses related to derivative financial instruments designated as cash flow hedges were as follows (in thousands):
| Gain/(Loss) Recognized in OCI |  |  |  |  |  |  |  | Gain/(Loss) Reclassified from AOCL into Income |  |  |  |  |  |
| Three months ended |  |  |  | Six months ended |  |  |  | Three months ended |  |  |  | Six months ended |  |
| June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019
Foreign currency contracts | $ | (4,062) |  |  | $ | (2,865) |  |  | $ | 12,837 |  |  | $ | 1,287 |  |  | $ | 5,305 |  |  | $ | 7,668 |  |  | $ | 8,705 |  |  | $ | 10,121 |
Commodity contracts | (28) |  |  | (70) |  |  | (157) |  |  | (40) |  |  | (53) |  |  | (7) |  |  | (188) |  |  | (17) |
Cross-currency swap | 35,595 |  |  | — |  |  | (14,014) |  |  | — |  |  | 36,915 |  |  | — |  |  | 24,009 |  |  | — |
Treasury rate locks | — |  |  | — |  |  | — |  |  | — |  |  | (122) |  |  | (123) |  |  | (246) |  |  | (245) |
Interest rate swaps | (1,176) |  |  | (5,856) |  |  | (6,509) |  |  | (8,861) |  |  | (3,453) |  |  | (830) |  |  | (6,569) |  |  | (1,436) |
| $ | 30,329 |  |  | $ | (8,791) |  |  | $ | (7,843) |  |  | $ | (7,614) |  |  | $ | 38,592 |  |  | $ | 6,708 |  |  | $ | 25,711 |  |  | $ | 8,423 |
The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges were as follows (in thousands):
| Motorcycles cost of goods sold |  | Selling, administrative & engineering expense |  | Interest expense |  | Financial Services interest expense
| Three months ended June 28, 2020 |  |  |  |  |  |
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 561,646 |  |  | $ | 224,365 |  |  | $ | 7,769 |  |  | $ | 62,187 |
Gain/(loss) reclassified from AOCL into income: |  |  |  |  |  |  |
Foreign currency contracts | $ | 5,305 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commodity contracts | $ | (53) |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cross-currency swap | $ | — |  |  | $ | 36,915 |  |  | $ | — |  |  | $ | — |
Treasury rate locks | $ | — |  |  | $ | — |  |  | $ | (90) |  |  | $ | (32) |
Interest rate swaps | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (3,453) |
| Three months ended June 30, 2019 |  |  |  |  |  |
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 979,266 |  |  | $ | 307,617 |  |  | $ | 7,784 |  |  | $ | 52,673 |
Gain/(loss) reclassified from AOCL into income: |  |  |  |  |  |  |
Foreign currency contracts | $ | 7,668 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commodity contracts | $ | (7) |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Treasury rate locks | $ | — |  |  | $ | — |  |  | $ | (91) |  |  | $ | (32) |
Interest rate swaps | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (830) |
| Motorcycles cost of goods sold |  | Selling, administrative & engineering expense |  | Interest expense |  | Financial Services interest expense
| Six months ended June 28, 2020 |  |  |  |  |  |
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 1,342,514 |  |  | $ | 502,336 |  |  | $ | 15,524 |  |  | $ | 114,660 |
Gain/(loss) reclassified from AOCL into income: |  |  |  |  |  |  |
Foreign currency contracts | $ | 8,705 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commodity contracts | $ | (188) |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cross-currency swaps | $ | — |  |  | $ | 24,009 |  |  | $ | — |  |  | $ | — |
Treasury rate locks | $ | — |  |  | $ | — |  |  | $ | (181) |  |  | $ | (65) |
Interest rate swaps | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (6,569) |
| Six months ended June 30, 2019 |  |  |  |  |  |
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 1,827,464 |  |  | $ | 576,242 |  |  | $ | 15,515 |  |  | $ | 104,997 |
Gain/(loss) reclassified from AOCL into income: |  |  |  |  |  |  |
Foreign currency contracts | $ | 10,121 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commodity contracts | $ | (17) |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Treasury rate locks | $ | — |  |  | $ | — |  |  | $ | (181) |  |  | $ | (64) |
Interest rate swaps | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1,436) |
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 were as follows (in thousands). Gains and losses on foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial Services interest expense.
| Amount of Gain/(Loss) Recognized in Income |  |  |  |  |  |
| Three months ended |  |  |  | Six months ended |  |
| June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019
Foreign currency contracts | $ | (522) |  |  | $ | (1,004) |  |  | $ | 1,672 |  |  | $ | (117) |
Commodity contracts | 558 |  |  | (310) |  |  | (993) |  |  | 7 |
Interest rate cap | (427) |  |  | (141) |  |  | (427) |  |  | (141) |
| $ | (391) |  |  | $ | (1,455) |  |  | $ | 252 |  |  | $ | (251) |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfCashFlowHedgesIncludedInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CC -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL109998890-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration