Product Warranty and Recall Campaigns

12 Months Ended

Dec. 31, 2024

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 currently provides a standard three-year limited warranty. The Company also provides a five-year unlimited warranty on the battery for electric motorcycles. 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 shipment 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 the Company's management approves and commits to a recall. The warranty and recall liabilities are included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets. Changes in the Company’s warranty and recall liability were as follows as of December 31 (in thousands):

	2024		2023		2022
Balance, beginning of period	$	64,144	$	75,960	$	61,621
Warranties issued during the period	47,388		45,374		39,466
Settlements made during the period	(63,645)		(67,084)		(38,173)
Recalls and changes to pre-existing warranty liabilities	23,704		9,894		13,046
Balance, end of period	$	71,591	$	64,144	$	75,960

The liability for recall campaigns was $21.0 million, $18.9 million and $29.7 million at December 31, 2024, 2023 and 2022, respectively.