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v3.23.1

Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended
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Mar. 31, 2023
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
| March 31, 2023 |  | December 31, 2022 |  | March 27, 2022
| Notional Value |  | Assets(a) |  | Liabilities(b) |  | Notional Value |  | Assets(a) |  | Liabilities(b) |  | Notional Value |  | Assets(a) |  | Liabilities(b)
Foreign currency contracts | $ | 530,175 |  |  | $ | 3,134 |  |  | $ | 12,659 |  |  | $ | 550,160 |  |  | $ | 6,054 |  |  | $ | 13,440 |  |  | $ | 585,451 |  |  | $ | 18,832 |  |  | $ | 3,576 |
Commodity contracts | 906 |  |  | — |  |  | 339 |  |  | 1,361 |  |  | — |  |  | 410 |  |  | 964 |  |  | 316 |  |  | — |
Cross-currency swaps | 2,127,240 |  |  | — |  |  | 34,685 |  |  | 1,367,460 |  |  | — |  |  | 36,101 |  |  | 1,367,460 |  |  | 18,835 |  |  | — |
Swap rate lock contracts | 324,843 |  |  | — |  |  | 1,780 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| $ | 2,983,164 |  |  | $ | 3,134 |  |  | $ | 49,463 |  |  | $ | 1,918,981 |  |  | $ | 6,054 |  |  | $ | 49,951 |  |  | $ | 1,953,875 |  |  | $ | 37,983 |  |  | $ | 3,576 |
| Derivative Financial Instruments Not Designated as Hedging Instruments
| March 31, 2023 |  | December 31, 2022 |  | March 27, 2022
| Notional Value |  | Assets(a) |  | Liabilities(b) |  | Notional Value |  | Assets(a) |  | Liabilities(b) |  | Notional Value |  | Assets(a) |  | Liabilities(b)
Foreign currency contracts | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 230,336 |  |  | $ | 587 |  |  | $ | 722 |
Commodity contracts | 11,229 |  |  | 99 |  |  | 755 |  |  | 10,803 |  |  | 310 |  |  | 310 |  |  | 11,866 |  |  | 2,435 |  |  | — |
Interest rate caps | 938,768 |  |  | 1,414 |  |  | — |  |  | 1,058,827 |  |  | 2,373 |  |  | — |  |  | 412,478 |  |  | 2,060 |  |  | — |
| $ | 949,997 |  |  | $ | 1,513 |  |  | $ | 755 |  |  | $ | 1,069,630 |  |  | $ | 2,683 |  |  | $ | 310 |  |  | $ | 654,680 |  |  | $ | 5,082 |  |  | $ | 722 |
(a)Includes $1.4 million and $2.4 million of interest rate caps recorded in Other long-term assets as of March 31, 2023 and December 31, 2022, respectively, with all remaining amounts recorded in Other current assets. (b)Includes $27.9 million and $24.2 million of cross-currency swaps recorded in Other long-term liabilities as of March 31, 2023 and December 31, 2022, respectively, with all remaining amounts recorded in Accrued liabilities.
Schedule of Gain/(Loss) on Derivative Cash Flow Hedges Reclassified From AOCI Into Income | The amounts of gains and losses related to the Company's 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 |  |  |  | Three months ended
|  |  |  |  | March 31, 2023 |  | March 27, 2022 |  |  |  |  |  | March 31, 2023 |  | March 27, 2022
Foreign currency contracts |  |  |  |  | $ | (1,706) |  |  | $ | 8,444 |  |  |  |  |  |  | $ | 6,290 |  |  | $ | 5,655 |
Commodity contracts |  |  |  |  | (309) |  |  | 562 |  |  |  |  |  |  | (379) |  |  | 226 |
Cross-currency swaps |  |  |  |  | 1,416 |  |  | (16,236) |  |  |  |  |  |  | 21,625 |  |  | (25,800) |
Treasury rate lock contracts |  |  |  |  | 1,139 |  |  | — |  |  |  |  |  |  | (66) |  |  | (127) |
Swap rate lock contracts |  |  |  |  | (1,780) |  |  | — |  |  |  |  |  |  | (5) |  |  | — |
|  |  |  |  | $ | (1,240) |  |  | $ | (7,230) |  |  |  |  |  |  | $ | 27,465 |  |  | $ | (20,046) |
The location and amount of gains and losses recognized in income related to the Company's derivative financial instruments designated as cash flow hedges were as follows (in thousands):
| Motorcycles and related products cost of goods sold |  | Selling, administrative & engineering expense |  | Interest expense |  | Financial services interest expense
| Three months ended March 31, 2023
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 1,007,301 |  |  | $ | 285,863 |  |  | $ | 7,720 |  |  | $ | 73,549 |
Gain/(loss) reclassified from AOCL into income: |  |  |  |  |  |  |
Foreign currency contracts | $ | 6,290 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commodity contracts | $ | (379) |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cross-currency swaps | $ | — |  |  | $ | 21,625 |  |  | $ | — |  |  | $ | — |
Treasury rate lock contracts | $ | — |  |  | $ | — |  |  | $ | (91) |  |  | $ | 25 |
Swap rate lock contracts | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (5) |
| Three months ended March 27, 2022
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 895,536 |  |  | $ | 239,625 |  |  | $ | 7,711 |  |  | $ | 42,099 |
Gain/(loss) reclassified from AOCL into income: |  |  |  |  |  |  |
Foreign currency contracts | $ | 5,655 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commodity contracts | $ | 226 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cross-currency swaps | $ | — |  |  | $ | (25,800) |  |  | $ | — |  |  | $ | — |
Treasury rate lock contracts | $ | — |  |  | $ | — |  |  | $ | (91) |  |  | $ | (36) |
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 and related products cost of goods sold. Gains and losses on interest rate caps were recorded in Selling, administrative & engineering expense.
|  |  |  |  | Amount of Gain/(Loss) Recognized in Income
|  |  | Three months ended
|  |  |  |  | March 31, 2023 |  | March 27, 2022
Foreign currency contracts |  |  |  |  | $ | (627) |  |  | $ | (3,506) |
Commodity contracts |  |  |  |  | (99) |  |  | 2,387 |
Interest rate caps |  |  |  |  | (958) |  |  | 1,700 |
|  |  |  |  | $ | (1,684) |  |  | $ | 581 |

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