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Derivative Financial Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 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
			June 30, 2023																		December 31, 2022																		June 26, 2022
			Notional Value						Assets(a)						Liabilities(b)						Notional Value						Assets(a)						Liabilities(b)						Notional Value						Assets(a)						Liabilities(b)
Foreign currency contracts			$	484,914					$	6,612					$	8,324					$	550,160					$	6,054					$	13,440					$	435,208					$	18,960					$	1,004
Commodity contracts			875						—						127						1,361						—						410						834						228						—
Cross-currency swaps			1,420,560						5,539						20,104						1,367,460						—						36,101						1,383,390						386						54,954
			$	1,906,349					$	12,151					$	28,555					$	1,918,981					$	6,054					$	49,951					$	1,819,432					$	19,574					$	55,958
			Derivative Financial Instruments Not Designated as Hedging Instruments
			June 30, 2023																		December 31, 2022																		June 26, 2022
			Notional Value						Assets(c)						Liabilities						Notional Value						Assets(c)						Liabilities						Notional Value						Assets(c)						Liabilities
Commodity contracts			9,453						7						795						10,803						310						310						9,857						1,107						987
Interest rate caps			823,912						2,666						—						1,058,827						2,373						—						1,286,262						1,860						—
			$	833,365					$	2,673					$	795					$	1,069,630					$	2,683					$	310					$	1,296,119					$	2,967					$	987

(a)Includes $5.5 million of cross-currency swaps recorded in Other long-term assets as of June 30, 2023.

(b)Includes $20.1 million and $24.2 million of cross-currency swaps recorded in Other long-term liabilities as of June 30, 2023 and December 31, 2022, respectively, with all remaining amounts recorded in Accrued liabilities.

(c)Includes $2.7 million and $2.4 million of interest rate caps recorded in Other long-term assets as of June 30, 2023 and December 31, 2022, respectively, with all remaining amounts recorded in Other current assets.

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												Six months ended												Three months ended												Six months ended
			June 30, 2023						June 26, 2022						June 30, 2023						June 26, 2022						June 30, 2023						June 26, 2022						June 30, 2023						June 26, 2022
Foreign currency contracts			$	5,671					$	19,328					$	3,965					$	27,772					$	(2,067)					$	9,627					$	4,223					$	15,282
Commodity contracts			(107)						166						(416)						728						(320)						254						(699)						480
Cross-currency swaps			20,130						(73,403)						21,546						(89,639)						3,220						(80,466)						24,845						(106,266)
Treasury rate lock contracts			—						—						1,139						—						(203)						(117)						(269)						(244)
Swap rate lock contracts			—						—						(1,780)						—						73						—						68						—
			$	25,694					$	(53,909)					$	24,454					$	(61,139)					$	703					$	(70,702)					$	28,168					$	(90,748)

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 June 30, 2023
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded			$	790,628					$	290,274					$	7,696					$	86,005
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts			(2,067)						—						—						—
Commodity contracts			(320)						—						—						—
Cross-currency swaps			—						3,220						—						—
Treasury rate lock contracts			—						—						(90)						(113)
Swap rate lock contracts			—						—						—						73
			Three months ended June 26, 2022
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded			$	879,721					$	235,233					$	7,720					$	47,649
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts			9,627						—						—						—
Commodity contracts			254						—						—						—
Cross-currency swaps			—						(80,466)						—						—
Treasury rate lock contracts			—						—						(90)						(27)

			Motorcycles and related products cost of goods sold						Selling, administrative & engineering expense						Interest expense						Financial services interest expense
			Six months ended June 30, 2023
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded			$	1,797,929					$	576,137					$	15,416					$	159,554
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts			4,223						—						—						—
Commodity contracts			(699)						—						—						—
Cross-currency swaps			—						24,845						—						—
Treasury rate lock contracts			—						—						(181)						(88)
Swap rate lock contracts			—						—						—						68
			Six months ended June 26, 2022
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded			$	1,775,257					$	474,858					$	15,431					$	89,748
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts			15,282						—						—						—
Commodity contracts			480						—						—						—
Cross-currency swaps			—						(106,266)						—						—
Treasury rate lock contracts			—						—						(181)						(63)

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												Six months ended
			June 30, 2023						June 26, 2022						June 30, 2023						June 26, 2022
Foreign currency contracts			$	(310)					$	9,793					$	(937)					$	6,287
Commodity contracts			(1,278)						(1,155)						(1,377)						1,232
Interest rate caps			1,252						(1,682)						294						18
			$	(336)					$	6,956					$	(2,020)					$	7,537

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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
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

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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.

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Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-Publisher FASB
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Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument.

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Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (e)
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-Name Accounting Standards Codification
-Section 50
-Paragraph 4CC
-SubTopic 10
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4CC

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