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Victory Motorcycles Wind Down (Notes)
 3 Months Ended
Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Victory Motorcycles Wind Down
Victory Motorcycles Wind Down
On January 9, 2017, the Company’s Board of Directors approved a strategic plan to wind down the Victory Motorcycles brand. The Company began wind down activities during the first quarter of 2017. As a result of the activities, the Company recognized total pretax charges of $1,388,000 and $45,782,000 for the three month periods ended March 31, 2018 and 2017, respectively, that are within the scope of ASC 420, Exit or Disposal Cost Obligations (ASC 420). These totals exclude the positive promotional pretax impact of $719,000 incurred for the three month period ended March 31, 2018 and the negative promotional pretax impact of $11,798,000 incurred for the three month period ended March 31, 2017. The Company estimates that the total impact of wind down activities in 2018 will be in the range of $5,000,000 to $10,000,000, inclusive of promotional activity. Substantially all costs related to wind down activities are expected to be recognized by the end of 2018.
As a result of the wind down activities, the Company has incurred expenses within the scope of ASC 420 consisting of dealer termination, supplier termination, dealer litigation, employee separation, asset impairment charges, including the impairment of a cost method investment, inventory write-down charges and other costs. The wind down expenses have been included as components of cost of sales, selling and marketing expenses, general and administrative expenses or other expense (income), net, in the consolidated statements of income. Charges related to the wind down plan for the three months ended March 31, 2018 and 2017 within the scope of ASC 420 were as follows (in thousands):
 
Three months ended March 31,
 
2018
 
2017
Contract termination charges
$
764

 
$
14,307

Asset impairment charges
—

 
18,760

Inventory charges
—

 
7,451

Other costs
624

 
5,264

Total
$
1,388

 
$
45,782



Total reserves related to the Victory Motorcycles wind down activities are $3,651,000 as of March 31, 2018. These reserves are included in other accrued expenses and inventory in the consolidated balance sheets. Changes to the reserves during the three months ended March 31, 2018 were as follows (in thousands):
 
Contract termination charges
 
Inventory charges
 
Other costs
 
Total
Reserves balance as of January 1, 2018
$
3,187

 
$
777

 
$
1,681

 
$
5,645

Expenses
764

 
—

 
624

 
1,388

Cash payments / scrapped inventory
(2,813
)
 
(29
)
 
(540
)
 
(3,382
)
Reserves balance as of March 31, 2018
$
1,138

 
$
748

 
$
1,765

 
$
3,651