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Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2024

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
			September 30, 2024																		December 31, 2023																		September 30, 2023
			Notional Value						Assets(b)						Liabilities(a)						Notional Value						Assets(b)						Liabilities(a)						Notional Value						Assets(b)						Liabilities(a)
Foreign currency contracts			$	416,405					$	106					$	9,168					$	540,088					$	3,529					$	9,194					$	481,204					$	15,486					$	1,325
Commodity contracts			789						25						—						642						—						134						601						—						63
Cross-currency swaps			1,420,560						19,663						4,702						1,420,560						15,080						3,160						1,420,560						—						58,655
			$	1,837,754					$	19,794					$	13,870					$	1,961,290					$	18,609					$	12,488					$	1,902,365					$	15,486					$	60,043
			Derivative Financial Instruments Not Designated as Hedging Instruments
			September 30, 2024																		December 31, 2023																		September 30, 2023
			Notional Value						Assets(c)						Liabilities						Notional Value						Assets(c)						Liabilities						Notional Value						Assets(c)						Liabilities
Commodity contracts			$	3,538					$	—					$	365					$	5,637					$	—					$	318					$	5,773					$	168					$	245
Interest rate caps			349,697						10						—						617,859						464						—						718,960						1,966						—
			$	353,235					$	10					$	365					$	623,496					$	464					$	318					$	724,733					$	2,134					$	245

(a)Includes $58.7 million of cross-currency swaps recorded in Other long-term liabilities as of September 30, 2023, with all remaining amounts recorded in Accrued liabilities.

(b)Includes $19.7 million and $15.1 million of cross-currency swaps recorded in Other long-term assets as of September 30, 2024 and December 31, 2023, respectively, with all remaining amounts recorded in Other current assets.

(c)Includes $0.5 million and $2.0 million of interest rate caps recorded in Other long-term assets as of December 31, 2023 and September 30, 2023, 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												Nine months ended												Three months ended												Nine months ended
			September 30, 2024						September 30, 2023						September 30, 2024						September 30, 2023						September 30, 2024						September 30, 2023						September 30, 2024						September 30, 2023
Foreign currency contracts			$	(14,470)					$	14,632					$	8,311					$	18,597					$	6,749					$	(3,588)					$	13,718					$	635
Commodity contracts			(35)						(51)						(148)						(467)						(62)						(115)						(306)						(814)
Cross-currency swaps			48,167						(44,089)						3,041						(22,543)						58,669						(41,210)						16,523						(16,365)
Treasury rate lock contracts			—						—						(4,293)						1,139						(210)						(241)						(247)						(510)
Swap rate lock contracts			—						—						—						(1,780)						(149)						95						(445)						163
			$	33,662					$	(29,508)					$	6,911					$	(5,054)					$	64,997					$	(45,059)					$	29,243					$	(16,891)

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 September 30, 2024
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded			$	618,580					$	273,879					$	7,707					$	94,463
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts			6,749						—						—						—
Commodity contracts			(62)						—						—						—
Cross-currency swaps			—						58,669						—						—
Treasury rate lock contracts			—						—						(90)						(120)
Swap rate lock contracts			—						—						—						(149)
			Three months ended September 30, 2023
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded			$	893,343					$	301,454					$	7,688					$	84,123
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts			(3,588)						—						—						—
Commodity contracts			(115)						—						—						—
Cross-currency swaps			—						(41,210)						—						—
Treasury rate lock contracts			—						—						(91)						(150)
Swap rate lock contracts			—						—						—						95

			Motorcycles and related products cost of goods sold						Selling, administrative & engineering expense						Interest expense						Financial services interest expense
			Nine months ended September 30, 2024
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded			$	2,566,272					$	870,985					$	23,066					$	276,943
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts			13,718						—						—						—
Commodity contracts			(306)						—						—						—
Cross-currency swaps			—						16,523						—						—
Treasury rate lock contracts			—						—						(272)						25
Swap rate lock contracts			—						—						—						(445)
			Nine months ended September 30, 2023
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded			$	2,691,272					$	877,591					$	23,104					$	243,677
Gain/(loss) reclassified from AOCL into income:
Foreign currency contracts			635						—						—						—
Commodity contracts			(814)						—						—						—
Cross-currency swaps			—						(16,365)						—						—
Treasury rate lock contracts			—						—						(272)						(238)
Swap rate lock contracts			—						—						—						163

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												Nine months ended
			September 30, 2024						September 30, 2023						September 30, 2024						September 30, 2023
Foreign currency contracts			$	(2,943)					$	2,064					$	(250)					$	1,127
Commodity contracts			(344)						297						(537)						(1,080)
Interest rate caps			(249)						(700)						(454)						(407)
			$	(3,536)					$	1,661					$	(1,241)					$	(360)

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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
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-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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-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument.

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

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