Product Warranty and Recall Campaigns

12 Months Ended

Dec. 31, 2019

Guarantees and Product Warranties [Abstract]

Product Warranty and Recall Campaigns

Product Warranty and Recall Campaigns

The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except in Japan, where the Company provides a standard three-year limited warranty. In addition, the Company provides a one-year warranty for parts and accessories. The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims at the time of sale using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company records estimated recall costs when the liability is both probable and estimable. This generally occurs when management approves and commits to a recall. Changes in the Company’s warranty and recall liability were as follows (in thousands): 

	2019			2018			2017
Balance, beginning of period	$	131,740		$	94,200		$	79,482
Warranties issued during the period	50,470			53,367			57,834
Settlements made during the period	(90,404		)	(79,300		)	(82,554		)
Recalls and changes to pre-existing warranty liabilities	(2,013		)	63,473			39,438
Balance, end of period	$	89,793		$	131,740		$	94,200

The liability for recall campaigns was $36.4 million, $73.3 million and $35.3 million at December 31, 2019, 2018 and 2017, respectively. Additionally, the Company recorded supplier recoveries within operating expenses separate from the amounts disclosed above of $28.0 million in 2019.