XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.20.4

Restructuring Activities | 12 Months Ended
--- | ---
Dec. 31, 2020
Restructuring and Related Activities [Abstract] |
Restructuring Activities | 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 2020, the Company initiated restructuring activities including a workforce reduction, the termination of certain current and future products, facility changes, optimizing its global independent dealer network, exiting certain international markets, and discontinuing its sales and manufacturing operations in India. The workforce reduction resulted in the termination of approximately 500 employees. In addition, the India action will result in the termination of approximately 70 employees. Restructuring expenses incurred related to the 2020 restructuring activities were $130.0 million, including $119.1 million in the Motorcycles segment and $10.9 million in the Financial Services segment. The Company expects remaining restructuring expenses related to the 2020 restructuring activities to be approximately $20 million, which is expected to be recognized in 2021 when the actions are completed. The total estimated restructuring activities of approximately $150 million includes approximately $139 million and $11 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, $90 million related to contract termination and other costs and $30 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, which are included in Accrued liabilities on the Consolidated balance sheets, were as follows as of December 31, (in thousands):
| 2020 |  |
| Employee Termination Benefits |  | Contract Terminations & Other |  | Non-Current Asset Adjustments |  | Total |  |  |  |  |  |  |  |
Balance, beginning of period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  |
Restructuring expense | 28,913 |  |  | 70,894 |  |  | 30,202 |  |  | 130,009 |  |  |  |  |  |  |  |  |
Utilized – cash | (21,494) |  |  | (54,773) |  |  | — |  |  | (76,267) |  |  |  |  |  |  |  |  |
Utilized – non cash | — |  |  | — |  |  | (30,202) |  |  | (30,202) |  |  |  |  |  |  |  |  |
Foreign currency changes | 305 |  |  | 75 |  |  | — |  |  | 380 |  |  |  |  |  |  |  |  |
Balance, end of period | $ | 7,724 |  |  | $ | 16,196 |  |  | $ | — |  |  | $ | 23,920 |  |  |  |  |  |  |  |  |
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 includes 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 resulted in 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 resulted in 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 Manufacturing Optimization Plan was completed in 2019. 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. Restructuring expenses for the 2018 Restructuring Activities were limited to the Motorcycles segment and were recorded during 2019 and 2018. Changes in accrued restructuring expenses for the 2018 restructuring activities, which are included in Accrued liabilities on the Consolidated balance sheets during 2019 and 2018 were as follows (in thousands). The changes in accrued restructuring expenses during 2020 related to the 2018 restructuring activities were immaterial.
| 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 | 15 |  |  | 14,684 |  |  | 17,971 |  |  | 32,670 |  |  | (317) |  |  | 32,353 |
Utilized - cash | (24,102) |  |  | — |  |  | (16,950) |  |  | (41,052) |  |  | (3,118) |  |  | (44,170) |
Utilized - non cash | — |  |  | (14,684) |  |  | (1,094) |  |  | (15,778) |  |  | — |  |  | (15,778) |
Foreign currency changes | (6) |  |  | — |  |  | (4) |  |  | (10) |  |  | (26) |  |  | (36) |
Balance, end of period | $ | 865 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 867 |  |  | $ | — |  |  | $ | 867 |
| 2018
| Manufacturing Optimization Plan |  | Reorganization Plan |  |
| Employee Termination Benefits |  | Accelerated Depreciation |  | Other |  | Total |  | Employee Termination Benefits |  | Total
Balance, beginning of period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Restructuring expense | 38,666 |  |  | 34,654 |  |  | 16,182 |  |  | 89,502 |  |  | 3,899 |  |  | 93,401 |
Utilized - cash | (13,060) |  |  | — |  |  | (16,095) |  |  | (29,155) |  |  | (444) |  |  | (29,599) |
Utilized - non cash | — |  |  | (34,654) |  |  | — |  |  | (34,654) |  |  | — |  |  | (34,654) |
Foreign currency changes | (648) |  |  | — |  |  | (8) |  |  | (656) |  |  | 6 |  |  | (650) |
Balance, end of period | $ | 24,958 |  |  | $ | — |  |  | $ | 79 |  |  | $ | 25,037 |  |  | $ | 3,461 |  |  | $ | 28,498 |
The Company incurred incremental Motorcycles and Related Products cost of goods sold due to temporary inefficiencies resulting from implementing the Manufacturing Optimization Plan during 2019 and 2018 of $10.3 million and $12.9 million, respectively.

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

X
- 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
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration