HARLEY-DAVIDSON INC
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
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FY2023 · Filed Feb 23, 2024
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13. Product Warranty and Recall Campaigns
- Product Warranty and Recall Campaigns
The Company currently provides a standardtwo-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 afive-year unlimited warranty on the battery for electric motorcycles. In addition, the Company provides aone-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):
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Balance, beginning of period | $75,960 | $61,621 | $69,208 |
| Warranties issued during the period | 45,374 | 39,466 | 41,489 |
| Settlements made during the period | (67,084) | (38,173) | (40,015) |
| Recalls and changes to pre-existing warranty liabilities | 9,894 | 13,046 | (9,061) |
| Balance, end of period | $64,144 | $75,960 | $61,621 |
The liability for recall campaigns was $18.9 million, $29.7 million and $16.9 million at December 31, 2023, 2022 and 2021, respectively.
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