10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 29, 2013

£ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                    

Commission file number 1-9183

Harley-Davidson, Inc.

(Exact name of registrant as specified in its charter)

Wisconsin	39-1382325
(State of organization)	(I.R.S. Employer Identification No.)
3700 West Juneau Avenue Milwaukee, Wisconsin	53208
(Address of principal executive offices)	(Zip code)

Registrants telephone number: (414) 342-4680

None

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.    Yes  Q    No  £

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  Q   No   £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	Q	Accelerated filer	£
Non-accelerated filer	£	Smaller reporting company	£

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.    Yes  £    No  Q

Number of shares of the registrant’s common stock outstanding at November 1, 2013: 221,107,879 shares

Harley-Davidson, Inc.

Form 10-Q

For The Quarter Ended September 29, 2013

Part I	Financial Information	3
Item 1.	Financial Statements	3
	Condensed Consolidated Statements of Operations	3
	Condensed Consolidated Statements of Comprehensive Income	4
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	59
Part II	Other Information	60
Item 1.	Legal Proceedings	60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 6.	Exhibits	60
Signatures		61

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

HARLEY-DAVIDSON, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three months ended				Nine months ended
	September 29, 2013		September 30, 2012		September 29, 2013			September 30, 2012
Revenue:
Motorcycles and related products	$	1,180,284	$	1,089,268	$	4,225,998		$	3,931,684
Financial services	163,434		161,027		483,240			477,962
Total revenue	1,343,718		1,250,295		4,709,238			4,409,646
Costs and expenses:
Motorcycles and related products cost of goods sold	763,969		711,364		2,688,371			2,533,453
Financial services interest expense	39,944		46,231		126,004			146,199
Financial services provision for credit losses	14,604		9,069		39,011			12,823
Selling, administrative and engineering expense	273,016		257,359		825,899			806,257
Restructuring (benefit) expense	646		9,170		(1,713		)	26,841
Total costs and expenses	1,092,179		1,033,193		3,677,572			3,525,573
Operating income	251,539		217,102		1,031,666			884,073
Investment income	1,161		1,447		4,546			5,611
Interest expense	11,369		11,438		33,998			34,528
Income before provision for income taxes	241,331		207,111		1,002,214			855,156
Provision for income taxes	78,615		73,110		343,630			301,870
Net income	$	162,716	$	134,001	$	658,584		$	553,286
Earnings per common share:
Basic	$	0.73	$	0.59	$	2.95		$	2.43
Diluted	$	0.73	$	0.59	$	2.93		$	2.40
Cash dividends per common share	$	0.210	$	0.155	$	0.630		$	0.465

The accompanying notes are an integral part of the consolidated financial statements.

3

HARLEY-DAVIDSON, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three months ended						Nine months ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Net Income	$	162,716		$	134,001		$	658,584		$	553,286
Other comprehensive income, net of tax
Foreign currency translation adjustments	9,232			7,425			(12,642		)	2,061
Derivative financial instruments	(6,500		)	(3,554		)	4,011			(7,207		)
Marketable securities	(187		)	333			(814		)	661
Pension and postretirement benefit plans	10,239			7,933			30,717			23,799
Total other comprehensive income, net of tax	$	12,784		$	12,137		21,272			19,314
Comprehensive income	$	175,500		$	146,138		679,856			572,600

The accompanying notes are an integral part of the consolidated financial statements.

4

HARLEY-DAVIDSON, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	(Unaudited)						(Unaudited)
	September 29, 2013			December 31, 2012			September 30, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	1,029,955		$	1,068,138		$	1,795,141
Marketable securities	122,234			135,634			136,376
Accounts receivable, net	290,158			230,079			256,193
Finance receivables, net	1,829,612			1,743,045			1,726,061
Inventories	401,199			393,524			379,129
Restricted cash	194,329			188,008			217,400
Other current assets	225,188			292,508			237,396
Total current assets	4,092,675			4,050,936			4,747,696
Finance receivables, net	4,355,278			4,038,807			4,189,606
Property, plant and equipment, net	795,235			815,464			764,835
Goodwill	30,041			29,530			28,928
Other long-term assets	210,779			236,036			284,118
	$	9,484,008		$	9,170,773		$	10,015,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	326,713		$	257,386		$	293,710
Accrued liabilities	539,227			513,591			606,078
Short-term debt	394,460			294,943			404,693
Current portion of long-term debt	721,316			437,162			997,194
Total current liabilities	1,981,716			1,503,082			2,301,675
Long-term debt	4,067,733			4,370,544			4,472,413
Pension liability	144,563			330,294			125,664
Postretirement healthcare liability	267,919			278,062			261,564
Other long-term liabilities	140,230			131,167			150,504
Commitments and contingencies (Note 16)
Shareholders’ equity:
Preferred stock, none issued	—			—			—
Common stock	3,429			3,413			3,409
Additional paid-in-capital	1,152,822			1,066,069			1,043,421
Retained earnings	7,824,236			7,306,424			7,270,906
Accumulated other comprehensive loss	(586,406		)	(607,678		)	(457,419		)
Treasury stock, at cost	(5,512,234		)	(5,210,604		)	(5,156,954		)
Total shareholders' equity	2,881,847			2,557,624			2,703,363
	$	9,484,008		$	9,170,773		$	10,015,183

5

	(Unaudited)				(Unaudited)
	September 29, 2013		December 31, 2012		September 30, 2012
Balances held by consolidated variable interest entities (Note 6)
Current finance receivables, net	$	419,892	$	470,134	$	513,084
Other assets	$	5,456	$	5,288	$	6,073
Non-current finance receivables, net	$	1,460,834	$	1,631,435	$	1,904,297
Restricted cash	$	181,231	$	176,290	$	205,760
Current portion of long-term debt	$	378,472	$	399,477	$	559,256
Long-term debt	$	1,068,184	$	1,048,299	$	1,132,809

The accompanying notes are an integral part of the consolidated financial statements.

6

HARLEY-DAVIDSON, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine months ended
	September 29, 2013			September 30, 2012
Net cash provided by operating activities (Note 3)	$	825,103		$	712,498
Cash flows from investing activities:
Capital expenditures	(111,690		)	(95,329		)
Origination of finance receivables	(2,617,100		)	(2,328,653		)
Collections on finance receivables	2,170,919			2,131,025
Purchases of marketable securities	(4,998		)	(4,993		)
Sales and redemptions of marketable securities	17,105			23,046
Other	6,721			—
Net cash used by investing activities	(539,043		)	(274,904		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			993,737
Repayments of medium-term notes	(27,858		)	—
Proceeds from securitization debt	647,516			763,895
Repayments of securitization debt	(650,424		)	(1,161,592		)
Net increase (decrease) in credit facilities and unsecured commercial paper	99,416			(634,874		)
Borrowings of asset-backed commercial paper	69,555			182,131
Repayments of asset-backed commercial paper	(58,990		)	(6,538		)
Net change in restricted cash	(6,321		)	12,255
Dividends paid	(140,772		)	(106,560		)
Purchase of common stock for treasury	(302,196		)	(257,981		)
Excess tax benefits from share-based payments	18,444			16,390
Issuance of common stock under employee stock option plans	39,145			36,342
Net cash used by financing activities	(312,485		)	(162,795		)
Effect of exchange rate changes on cash and cash equivalents	(11,758		)	(6,608		)
Net (decrease) increase in cash and cash equivalents	$	(38,183	)	$	268,191
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	1,068,138		$	1,526,950
Net (decrease) increase in cash and cash equivalents	(38,183		)	268,191
Cash and cash equivalents—end of period	$	1,029,955		$	1,795,141

The accompanying notes are an integral part of the consolidated financial statements.

7

HARLEY-DAVIDSON, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation and Use of Estimates

The condensed consolidated financial statements include the accounts of Harley-Davidson, Inc. and its wholly-owned subsidiaries (the Company), including the accounts of the group of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions are eliminated.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the condensed consolidated balance sheets as of September 29, 2013 and September 30, 2012, the condensed consolidated statements of operations for the three and nine month periods then ended, the condensed consolidated statements of comprehensive income for the three and nine month periods then ended and the condensed consolidated statements of cash flows for the nine month periods then ended.

Certain information and footnote disclosures normally included in complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The Company operates in two business segments: Motorcycles & Related Products (Motorcycles) and Financial Services (Financial Services).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

2. New Accounting Standards

Accounting Standards Not Yet Adopted

In July 2013, the Financial Accounting Standards Board (FASB) issued ASU No. 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU No. 2013-11). ASU No. 2013-11 amends the guidance within Accounting Standards Codification (ASC) Topic 740, "Income Taxes", to require entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The Company is required to adopt ASU No. 2013-11 beginning in the first quarter of 2014 and is currently evaluating the impact of adoption.

Accounting Standards Recently Adopted

In February 2013, the FASB issued Accounting Standards Update (ASU) No. 2013-02 Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU No. 2013-02). ASU No. 2013-02 requires entities to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company adopted ASU No. 2013-02 effective on January 1, 2013. The required new disclosures are presented in Note 10.

8

3. Additional Balance Sheet and Cash Flow Information

Marketable Securities

The Company’s marketable securities consisted of the following (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Available-for-sale:
Corporate bonds	$	122,234	$	135,634	$	136,376
	$	122,234	$	135,634	$	136,376

The Company’s available-for-sale securities are carried at fair value with any unrealized gains or losses reported in other comprehensive income. During the first nine months of 2013 and 2012, the Company recognized gross unrealized (losses) and gains in other comprehensive income of $(1.3) million and $1.1 million, respectively, or $(0.8) million and $0.7 million net of taxes, respectively, to adjust amortized cost to fair value. The marketable securities have contractual maturities that generally come due over the next 1 to 32 months.

Inventories

Inventories are valued at the lower of cost or market. Substantially all inventories located in the United States are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or market using the first-in, first-out (FIFO) method. Inventories consist of the following (in thousands):

	September 29, 2013			December 31, 2012			September 30, 2012
Components at the lower of FIFO cost or market
Raw materials and work in process	$	130,510		$	111,335		$	121,184
Motorcycle finished goods	181,239			205,660			169,515
Parts and accessories and general merchandise	135,339			122,418			132,789
Inventory at lower of FIFO cost or market	447,088			439,413			423,488
Excess of FIFO over LIFO cost	(45,889		)	(45,889		)	(44,359		)
	$	401,199		$	393,524		$	379,129

9

Operating Cash Flow

The reconciliation of net income to net cash provided by operating activities is as follows (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012
Cash flows from operating activities:
Net income	$	658,584		$	553,286
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	122,658			127,443
Amortization of deferred loan origination costs	63,548			58,438
Amortization of financing origination fees	6,994			7,462
Provision for employee long-term benefits	50,158			50,348
Contributions to pension and postretirement plans	(197,243		)	(220,733		)
Stock compensation expense	31,030			30,287
Net change in wholesale finance receivables related to sales	(71,869		)	5,570
Provision for credit losses	39,011			12,823
Loss on debt extinguishment	4,947			—
Foreign currency adjustments	12,874			8,692
Other, net	(63		)	9,411
Changes in current assets and liabilities:
Accounts receivable, net	(65,835		)	(37,904		)
Finance receivables—accrued interest and other	937			1,597
Inventories	(19,233		)	36,463
Accounts payable and accrued liabilities	142,277			99,642
Restructuring reserves	(24,521		)	(9,177		)
Derivative instruments	(1,818		)	611
Other	72,667			(21,761		)
Total adjustments	166,519			159,212
Net cash provided by operating activities	$	825,103		$	712,498

4. Restructuring Expense

2011 Restructuring Plans

In December 2011, the Company made a decision to cease operations at New Castalloy, its Australian subsidiary and producer of cast motorcycle wheels and wheel hubs, and source those components through other existing suppliers by the end of 2013 (2011 New Castalloy Restructuring Plan). Since 2011, the Company has successfully transitioned a significant amount of wheel production to other existing suppliers. However, during the second quarter of 2013, the Company made a decision to retain limited operations at New Castalloy focused on the production of certain complex, high-finish wheels in a cost-effective and competitive manner. The Company also entered into a new agreement with the unionized labor force at New Castalloy.

In connection with the modified 2011 New Castalloy Restructuring Plan, the New Castalloy workforce was reduced by approximately 100 employees, leaving approximately 100 remaining employees to support the ongoing operations. The original plan would have resulted in a workforce reduction of approximately 200 employees.

Under the modified 2011 New Castalloy Restructuring Plan, restructuring expenses consisted of employee severance and termination costs, accelerated depreciation and other related costs. On a cumulative basis, the Company has incurred $21.0 million of restructuring expense under the modified 2011 New Castalloy Restructuring Plan as of September 29, 2013, of which approximately 35% was non-cash. This includes a benefit related to restructuring reserves released in the second quarter of 2013 in connection with the decision to retain a limited operation at the New Castalloy facility, as described above.

10

In February 2011, the Company’s unionized employees at its facility in Kansas City, Missouri ratified a new seven-year labor agreement. The new agreement took effect on August 1, 2011. The new contract is similar to the labor agreements ratified at the Company’s Wisconsin facilities in September 2010 and its York, Pennsylvania (York) production facility in December 2009, and allows for similar flexibility, increased production efficiency and the addition of a flexible workforce component.

The actions to implement the new ratified labor agreement (2011 Kansas City Restructuring Plan) resulted in approximately 145 fewer full-time hourly unionized employees in its Kansas City facility than would have been required under the previous contract.

Under the 2011 Kansas City Restructuring Plan, restructuring expenses consisted of employee severance and termination costs and other related costs. On a cumulative basis, the Company has incurred $5.9 million of restructuring expense under the 2011 Kansas City Restructuring Plan as of September 29, 2013 of which approximately 10% was non-cash.

The following table summarizes the Motorcycles segment’s 2011 Kansas City Restructuring Plan and modified 2011 New Castalloy Restructuring Plan reserve activity and balances as recorded in accrued liabilities (in thousands):

	Nine months ended September 29, 2013
	Kansas City								New Castalloy												Consolidated
	Employee Severance and Termination Costs			Other		Total			Employee Severance and Termination Costs			Accelerated Depreciation			Other			Total			Total
Balance, beginning of period	$	2,259		$	—	$	2,259		$	9,306		$	—		$	145		$	9,451		$	11,710
Restructuring expense	—			—		—			1,361			2,093			590			4,044			4,044
Utilized—cash	(1,283		)	—		(1,283		)	(5,360		)	—			(602		)	(5,962		)	(7,245		)
Utilized—non-cash	—			—		—			—			(2,093		)	—			(2,093		)	(2,093		)
Non-cash reserve release	(976		)	—		(976		)	(5,250		)	—			—			(5,250		)	(6,226		)
Balance, end of period	$	—		$	—	$	—		$	57		$	—		$	133		$	190		$	190

	Nine months ended September 30, 2012
	Kansas City								New Castalloy												Consolidated
	Employee Severance and Termination Costs			Other		Total			Employee Severance and Termination Costs			Accelerated Depreciation			Other			Total			Total
Balance, beginning of period	$	4,123		$	—	$	4,123		$	8,428		$	—		$	305		$	8,733		$	12,856
Restructuring expense	—			—		—			2,450			6,152			1,075			9,677			9,677
Utilized—cash	—			—		—			(388		)	—			(1,235		)	(1,623		)	(1,623		)
Utilized—non-cash	—			—		—			—			(6,152		)	—			(6,152		)	(6,152		)
Non-cash reserve release	(967		)	—		(967		)	—			—			—			—			(967		)
Balance, end of period	$	3,156		$	—	$	3,156		$	10,490		$	—		$	145		$	10,635		$	13,791

2010 Restructuring Plan

In September 2010, the Company’s unionized employees in Wisconsin ratified three separate new seven-year labor agreements which took effect in April 2012 when the prior contracts expired. The new contracts are similar to the labor agreement ratified at the York, Pennsylvania facility in December 2009 and allow for similar flexibility and increased production efficiency and the addition of a flexible workforce component.

The actions to implement the new ratified labor agreements (2010 Restructuring Plan) resulted in approximately 250 fewer full-time hourly unionized employees in its Milwaukee-area facilities than would have been required under the previous contracts and approximately 75 fewer full-time hourly unionized employees in its Tomahawk, Wisconsin facility than would have been required under the previous contract. Under the 2010 Restructuring Plan, restructuring expenses consisted of employee severance and termination costs and other related costs. On a cumulative basis, the Company has incurred $59.2 million of restructuring expense under the 2010 Restructuring Plan as of September 29, 2013, of which approximately 45% was non-cash.

11

The following table summarizes the Motorcycles segment’s 2010 Restructuring Plan reserve activity and balances as recorded in accrued liabilities (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012
	Employee Severance and Termination Costs			Employee Severance and Termination Costs
Balance, beginning of period	$	10,156		$	20,361
Restructuring expense	—			4,005
Utilized—cash	(9,710		)	(13,894		)
Non-cash reserve release	(446		)	—
Balance, end of period	$	—		$	10,472

2009 Restructuring Plan

During 2009, in response to the U.S. economic recession and worldwide slowdown in consumer demand, the Company committed to a volume reduction and a combination of restructuring actions (2009 Restructuring Plan) expected to be completed at various dates between 2009 and 2013. The actions were designed to reduce administrative costs, eliminate excess capacity and exit non-core business operations. The Company’s announced actions include the restructuring and transformation of its York, Pennsylvania production facility including the implementation of a new more flexible unionized labor agreement which allows for the addition of a flexible workforce component; consolidation of facilities related to engine and transmission production; outsourcing of certain distribution and transportation activities and exiting the Buell product line. In addition, the Company implemented projects under this plan involving the outsourcing of select information technology activities and the consolidation of an administrative office in Michigan into its corporate headquarters in Milwaukee, Wisconsin.

The 2009 Restructuring Plan resulted in a reduction of approximately 2,900 hourly production positions and approximately 800 non-production, primarily salaried positions within the Motorcycles segment and approximately 100 salaried positions in the Financial Services segment.

Under the 2009 Restructuring Plan, restructuring expenses consisted of employee severance and termination costs, accelerated depreciation on the long-lived assets that will be exited as part of the 2009 Restructuring Plan and other related costs. On a cumulative basis, the Company has incurred $395.3 million of restructuring and impairment expense under the 2009 Restructuring Plan as of September 29, 2013 of which approximately 30% was non-cash.

12

The following table summarizes the Company’s 2009 Restructuring Plan reserve activity and balances recorded in accrued liabilities (in thousands):

	Nine months ended September 29, 2013
	Motorcycles & Related Products
	Employee Severance and Termination Costs			Accelerated Depreciation		Other			Total
Balance, beginning of period	$	5,196		$	—	$	161		$	5,357
Restructuring expense	—			—		2,446			2,446
Utilized—cash	(1,620		)	—		(2,607		)	(4,227		)
Utilized—non-cash	—			—		—			—
Non-cash reserve release	(1,531		)	—		—			(1,531		)
Balance, end of period	$	2,045		$	—	$	—		$	2,045
	Nine months ended September 30, 2012
	Motorcycles & Related Products
	Employee Severance and Termination Costs			Accelerated Depreciation		Other			Total
Balance, beginning of period	$	10,089		$	—	$	—		$	10,089
Restructuring expense	4,166			—		11,987			16,153
Utilized—cash	(2,529		)	—		(11,987		)	(14,516		)
Utilized—non-cash	—			—		—			—
Non-cash reserve release	(2,027		)	—		—			(2,027		)
Balance, end of period	$	9,699		$	—	$	—		$	9,699

Other restructuring costs under the 2009 Restructuring Plan include items such as the exit costs for terminating supply contracts, lease termination costs and moving costs. During the first nine months of 2013, the Company released a portion of its 2009 Restructuring Plan reserve related to employee severance costs as these costs are no longer expected to be incurred.

5. Finance Receivables

HDFS provides retail financial services to customers of the Company’s independent dealers in the United States and Canada. The origination of retail loans is a separate and distinct transaction between HDFS and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and installment loans. HDFS holds either titles or liens on titles to vehicles financed by promissory notes and installment loans.

HDFS offers wholesale financing to the Company’s independent dealers. Wholesale loans to dealers are generally secured by financed inventory or property and are originated in the U.S. and Canada.

Finance receivables, net, consisted of the following (in thousands):

	September 29, 2013			December 31, 2012			September 30, 2012
Retail	$	5,405,670		$	5,073,115		$	5,243,470
Wholesale	891,141			816,404			785,323
	6,296,811			5,889,519			6,028,793
Allowance for credit losses	(111,921		)	(107,667		)	(113,126		)
	$	6,184,890		$	5,781,852		$	5,915,667

A provision for credit losses on finance receivables is charged or credited to earnings in amounts that the Company believes are sufficient to maintain the allowance for credit losses at a level that is adequate to cover losses of principal inherent in the existing portfolio. The allowance for credit losses represents management’s estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. However, due to the use of projections and assumptions in estimating the losses, the amount of losses actually incurred by the Company could differ from the amounts estimated.

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Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):

	Three months ended September 29, 2013
	Retail			Wholesale			Total
Balance, beginning of period	$	103,770		$	7,554		$	111,324
Provision for credit losses	16,168			(1,564		)	14,604
Charge-offs	(23,708		)	—			(23,708		)
Recoveries	9,701			—			9,701
Balance, end of period	$	105,931		$	5,990		$	111,921
	Three months ended September 30, 2012
	Retail			Wholesale			Total
Balance, beginning of period	$	106,180		$	8,068		$	114,248
Provision for credit losses	9,869			(800		)	9,069
Charge-offs	(19,873		)	—			(19,873		)
Recoveries	9,682			—			9,682
Balance, end of period	$	105,858		$	7,268		$	113,126
	Nine months ended September 29, 2013
	Retail			Wholesale			Total
Balance, beginning of period	$	101,442		$	6,225		$	107,667
Provision for credit losses	39,246			(235		)	39,011
Charge-offs	(67,117		)	—			(67,117		)
Recoveries	32,360			—			32,360
Balance, end of period	$	105,931		$	5,990		$	111,921
	Nine months ended September 30, 2012
	Retail			Wholesale			Total
Balance, beginning of period	$	116,112		$	9,337		$	125,449
Provision for credit losses	14,892			(2,069		)	12,823
Charge-offs	(62,779		)	—			(62,779		)
Recoveries	37,633			—			37,633
Balance, end of period	$	105,858		$	7,268		$	113,126

Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement. Portions of the allowance for credit losses are established to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance for credit losses covers estimated losses on finance receivables which are collectively reviewed for impairment.

The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. HDFS performs a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. HDFS utilizes loss forecast models which consider a variety of factors including, but not limited to, historical loss trends, origination or vintage analysis, known and inherent risks in the portfolio, the value of the underlying collateral, recovery rates, and current economic conditions including items such as unemployment rates. Retail finance receivables are not evaluated individually for impairment prior to charge-off and therefore are not reported as impaired loans.

The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s evaluation for the wholesale allowance for credit losses is first based on a loan-by-loan review. A specific allowance for credit losses is established for wholesale finance receivables determined to be individually impaired when management concludes that the borrower will not be able to make full payment of the contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash that the Company expects to receive discounted at the loan’s original interest rate or the fair value of the collateral, if the loan is collateral-dependent. Finance receivables in the wholesale portfolio that are not considered impaired on an individual basis are segregated, based on similar risk characteristics, according to the Company’s internal risk rating system and collectively evaluated for impairment. The related allowance for credit losses

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is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past loan loss experience, current economic conditions, and the value of the underlying collateral.

Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize the economic loss, the Company may modify certain finance receivables in troubled debt restructurings. Total restructured finance receivables are not significant.

The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands):

	September 29, 2013
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	105,931		5,990		111,921
Total allowance for credit losses	$	105,931	$	5,990	$	111,921
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,405,670		891,141		6,296,811
Total finance receivables	$	5,405,670	$	891,141	$	6,296,811
	December 31, 2012
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	101,442		6,225		107,667
Total allowance for credit losses	$	101,442	$	6,225	$	107,667
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,073,115		816,404		5,889,519
Total finance receivables	$	5,073,115	$	816,404	$	5,889,519
	September 30, 2012
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	105,858		7,268		113,126
Total allowance for credit losses	$	105,858	$	7,268	$	113,126
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,243,470		785,323		6,028,793
Total finance receivables	$	5,243,470	$	785,323	$	6,028,793

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There were no wholesale finance receivables at September 29, 2013, December 31, 2012, or September 30, 2012 that were individually deemed to be impaired under ASC Topic 310, “Receivables.”

Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of September 29, 2013, December 31, 2012 and September 30, 2012, all retail finance receivables were accounted for as interest-earning receivables, of which $17.8 million, $27.6 million and $19.4 million, respectively, were 90 days or more past due.

Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Interest continues to accrue on past due finance receivables until the date the finance receivable becomes uncollectible and the finance receivable is placed on non-accrual status. HDFS will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. Wholesale finance receivables are written down once management determines that the specific borrower does not have the ability to repay the loan in full. There were no wholesale receivables on non-accrual status at September 29, 2013, December 31, 2012 or September 30, 2012. At September 29, 2013, December 31, 2012 and September 30, 2012, $0.6 million, $0.4 million, and $0.5 million of wholesale finance receivables were 90 days or more past due and accruing interest, respectively.

An analysis of the aging of past due finance receivables was as follows (in thousands):

	September 29, 2013
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,260,125	$	99,255	$	28,531	$	17,759	$	145,545	$	5,405,670
Wholesale	889,531		681		302		627		1,610		891,141
Total	$	6,149,656	$	99,936	$	28,833	$	18,386	$	147,155	$	6,296,811
	December 31, 2012
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	4,894,675	$	113,604	$	37,239	$	27,597	$	178,440	$	5,073,115
Wholesale	814,706		984		278		436		1,698		816,404
Total	$	5,709,381	$	114,588	$	37,517	$	28,033	$	180,138	$	5,889,519
	September 30, 2012
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,093,496	$	100,706	$	29,878	$	19,390	$	149,974	$	5,243,470
Wholesale	784,155		445		217		506		1,168		785,323
Total	$	5,877,651	$	101,151	$	30,095	$	19,896	$	151,142	$	6,028,793

A significant part of managing HDFS’ finance receivable portfolios includes the assessment of credit risk associated with each borrower. As the credit risk varies between the retail and wholesale portfolios, HDFS utilizes different credit risk indicators for each portfolio.

HDFS manages retail credit risk through its credit approval policy and ongoing collection efforts. HDFS uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. Retail loans with a FICO score of 640 or above at origination are considered prime, and loans with a FICO score below 640 are considered sub-prime. These credit quality indicators are determined at the time of loan origination and are not updated subsequent to the loan origination date.

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The recorded investment of retail finance receivables, by credit quality indicator, was as follows (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Prime	$	4,249,780	$	4,035,584	$	4,178,726
Sub-prime	1,155,890		1,037,531		1,064,744
Total	$	5,405,670	$	5,073,115	$	5,243,470

HDFS’ credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. HDFS utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower.

HDFS uses the following internal credit quality indicators, based on the Company’s internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon management’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged off, while the dealers classified as Low Risk are least likely to be charged off. The internal rating system considers factors such as the specific borrowers’ ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated on a quarterly basis.

The recorded investment of wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Doubtful	$	3,966	$	8,107	$	10,072
Substandard	10,486		2,593		3,689
Special Mention	—		3,504		2,446
Medium Risk	6,914		8,451		6,035
Low Risk	869,775		793,749		763,081
Total	$	891,141	$	816,404	$	785,323

6. Asset-Backed Financing

HDFS participates in asset-backed financing through both term asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. HDFS treats these transactions as secured borrowing because either they are transferred to consolidated VIEs or HDFS maintains effective control over the assets and does not meet the accounting sale requirements under ASC Topic 860, "Transfers and Servicing" (ASC Topic 860). In HDFS' asset-backed financing programs, HDFS transfers retail motorcycle finance receivables to special purpose entities (SPE), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash, through the issuance of debt.

HDFS is required to consolidate any VIE in which it is deemed to be the primary beneficiary through having power over the significant activities of the entity and having an obligation to absorb losses or the right to receive benefits from the VIE which are potentially significant to the VIE. HDFS is considered to have the power over the significant activities of its term asset-backed securitization and asset-backed U.S. commercial paper conduit facility VIEs due to its role as servicer. Servicing fees are typically not considered potentially significant variable interests in a VIE. However, HDFS retains a residual interest in the VIEs in the form of a debt security, which gives HDFS the right to receive benefits that could be potentially significant to the VIE. Therefore, the Company is the primary beneficiary and consolidates all of these VIEs within its consolidated financial statements.

HDFS is not the primary beneficiary of the asset-backed Canadian commercial paper conduit facility VIE; therefore, HDFS does not consolidate this VIE. However, HDFS treats the conduit facility as a secured borrowing as it maintains effective control over the assets transferred to the VIE and therefore does not meet the requirements for sale accounting under ASC Topic 860. As such, the Company retains the transferred assets and the related debt within its Consolidated Balance Sheet.

Servicing fees paid by VIEs to HDFS are eliminated in consolidation and therefore are not recorded on a consolidated basis. HDFS is not required, and does not currently intend, to provide any additional financial support to its VIEs. Investors and creditors only have recourse to the assets held by the VIEs.

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The following table shows the assets and liabilities related to the asset-backed financings that were included in the financial statements (in thousands):

	September 29, 2013
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	1,918,447	$	(37,721	)	$	181,231	$	4,866	$	2,066,823	$	1,446,656
Asset-backed U.S. commercial paper conduit facility	—		—			—		590		590		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	204,828		(3,424		)	13,098		93		214,595		180,584
	$	2,123,275	$	(41,145	)	$	194,329	$	5,549	$	2,282,008	$	1,627,240
	December 31, 2012
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	2,143,708	$	(42,139	)	$	176,290	$	4,869	$	2,282,728	$	1,447,776
Asset-backed U.S. commercial paper conduit facility	—		—			—		419		419		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	194,285		(3,432		)	11,718		255		202,826		175,658
	$	2,337,993	$	(45,571	)	$	188,008	$	5,543	$	2,485,973	$	1,623,434
	September 30, 2012
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	2,466,871	$	(49,490	)	$	205,760	$	5,531	$	2,628,672	$	1,692,065
Asset-backed U.S. commercial paper conduit facility	—		—			—		542		542		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	193,986		(3,747		)	11,640		327		202,206		176,855
	$	2,660,857	$	(53,237	)	$	217,400	$	6,400	$	2,831,420	$	1,868,920

Term Asset-Backed Securitization VIEs

The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each term asset-backed securitization SPE is a separate legal entity and the U.S. retail motorcycle finance receivables included in the term asset-backed securitizations are only available for payment of the secured debt and other

18

obligations arising from the term asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Cash and cash equivalent balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes’ contractual lives have various maturities ranging from 2013 to 2020.

There were no term asset-backed transactions during the third quarter of 2013. During the second quarter of 2013, the Company issued $650.0 million of secured notes through one term asset-backed securitization transaction.

During the third quarter of 2012, the Company issued $675.3 million of secured notes through one term asset-backed securitization transaction. In addition, during the second quarter of 2012, the Company issued $89.5 million of secured notes through the sale of notes that had been previously retained as part of certain 2009 and 2011 term asset-backed securitization transactions. These notes were sold at a premium. At September 29, 2013 and September 30, 2012, the unaccreted premium associated with the issuance of these notes was $0.5 million and $1.5 million, respectively. There was no additional term asset-backed securitization activity for the nine months ended September 29, 2013 or September 30, 2012.

Asset-Backed U.S. Commercial Paper Conduit Facility VIE

In September 2013, the Company amended and restated its third-party bank sponsored asset-backed commercial paper conduit facility (U.S. Conduit) which provides for a total aggregate commitment of $600.0 million based on, among other things, the amount of eligible U.S. retail motorcycle loans held by a SPE as collateral. The amended agreement has terms that are similar to those of the prior agreement and is for the same amount. Under the facility, HDFS may transfer U.S. retail motorcycle finance receivables to a SPE, which in turn may issue debt to third-party bank-sponsored asset-backed commercial paper conduits. The assets of the SPE are restricted as collateral for the payment of the debt or other obligations arising in the transaction and are not available to pay other obligations or claims of the Company’s creditors. The terms for this debt provide for interest on the outstanding principal based on prevailing commercial paper rates, or LIBOR plus a specified margin to the extent the advance is not funded by a conduit lender through the issuance of commercial paper. The U.S. Conduit also provides for an unused commitment fee based on the unused portion of the total aggregate commitment. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the U.S. Conduit, any outstanding principal will continue to be reduced monthly through available collections. Unless earlier terminated or extended by mutual agreement of HDFS and the lenders, the U.S. Conduit has an expiration date of September 12, 2014.

The SPE had no borrowings outstanding under the U.S. Conduit at September 29, 2013, December 31, 2012 or September 30, 2012; therefore, U.S. Conduit assets are restricted as collateral for the payment of fees associated with the unused portion of the total aggregate commitment.

Asset-Backed Canadian Commercial Paper Conduit Facility

In June 2013, HDFS amended its agreement with a Canadian bank-sponsored asset-backed commercial paper conduit facility (Canadian Conduit). The amended agreement has terms that are similar to those of the original agreement, entered into in August 2012, and is for the same amount. Under the agreement, the Canadian Conduit is contractually committed, at HDFS' option, to purchase from HDFS eligible Canadian retail motorcycle finance receivables for proceeds up to C$200.0 million. The terms for this debt provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$200.0 million. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. Unless earlier terminated or extended by mutual agreement of HDFS and the lenders, the Canadian Conduit expires on June 30, 2014. The contractual maturity of the debt is approximately 5 years.

HDFS participates in and does not consolidate the Canadian bank-sponsored, multi-seller conduit VIE. HDFS' maximum exposure to loss associated with this unconsolidated VIE, which would only be incurred in the unlikely event that all the finance receivables and underlying collateral have no residual value, was $34.0 million at September 29, 2013. The maximum exposure is not an indication of the Company's expected loss exposure.

During the third quarter of 2013, HDFS transferred $26.3 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $23.1 million. During the second quarter of 2013, HDFS transferred $53.8 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $47.1 million. In the third quarter of 2012, HDFS transferred $209.1 million of Canadian retail motorcycle finance receivables for proceeds of $183.0 million.

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There were no other transfers of receivables for the nine months ended September 29, 2013 or September 30, 2012.

7. Fair Value Measurements

Certain assets and liabilities are recorded at fair value in the financial statements; some of these are measured on a recurring basis while others are measured on a non-recurring basis. Assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. In determining fair value of assets and liabilities, the Company uses various valuation techniques. The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded, and other characteristics particular to the transaction. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant management discretion. For other financial instruments, pricing inputs are less observable in the market and may require management judgment.

The Company assesses the inputs used to measure fair value using a three-tier hierarchy. The hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs include quoted prices for identical instruments and are the most observable.

Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. The Company uses the market approach to derive the fair value for its level 2 fair value measurements. Foreign currency exchange contracts are valued using publicly quoted spot and forward prices; commodity contracts are valued using publicly quoted prices, where available, or dealer quotes; interest rate swaps are valued using publicized swap curves; and investments in marketable securities and cash equivalents are valued using publicly quoted prices.

Level 3 inputs are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs is reflected in the hierarchy assessment disclosed in the following tables.

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Recurring Fair Value Measurements

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):

	September 29, 2013
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	832,344	$	506,792	$	325,552	$	—
Marketable securities	122,234		—		122,234		—
Derivatives	1,733		—		1,733		—
	$	956,311	$	506,792	$	449,519	$	—
Liabilities:
Derivatives	$	1,152	$	—	$	1,152	$	—
	December 31, 2012
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	852,979	$	690,691	$	162,288	$	—
Marketable securities	135,634		—		135,634		—
Derivatives	317		—		317		—
	$	988,930	$	690,691	$	298,239	$	—
Liabilities:
Derivatives	$	7,920	$	—	$	7,920	$	—
	September 30, 2012
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	1,417,900	$	1,161,646	$	256,254	$	—
Marketable securities	136,376		—		136,376		—
Derivatives	1,639		—		1,639		—
	$	1,555,915	$	1,161,646	$	394,269	$	—
Liabilities:
Derivatives	$	2,458	$	—	$	2,458	$	—

The hierarchy classification for cash equivalents, as of September 30, 2012, totaling $256.3 million has been revised from Level 1 to Level 2.

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8. Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, marketable securities, trade receivables, finance receivables, net, trade payables, debt, and foreign currency contracts and interest rate swaps (derivative instruments are discussed further in Note 9).

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in thousands):

	September 29, 2013				December 31, 2012				September 30, 2012
	Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value
Assets:
Cash and cash equivalents	$	1,029,955	$	1,029,955	$	1,068,138	$	1,068,138	$	1,795,141	$	1,795,141
Marketable securities	$	122,234	$	122,234	$	135,634	$	135,634	$	136,376	$	136,376
Accounts receivable, net	$	290,158	$	290,158	$	230,079	$	230,079	$	256,193	$	256,193
Derivatives	$	1,733	$	1,733	$	317	$	317	$	1,639	$	1,639
Finance receivables, net	$	6,266,406	$	6,184,890	$	5,861,442	$	5,781,852	$	5,993,713	$	5,915,667
Restricted cash	$	194,329	$	194,329	$	188,008	$	188,008	$	217,400	$	217,400
Liabilities:
Accounts payable	$	326,713	$	326,713	$	257,386	$	257,386	$	293,710	$	293,710
Derivatives	$	1,152	$	1,152	$	7,920	$	7,920	$	2,458	$	2,458
Unsecured commercial paper	$	394,460	$	394,460	$	294,943	$	294,943	$	404,693	$	404,693
Asset-backed Canadian commercial paper conduit facility	$	180,584	$	180,584	$	175,658	$	175,658	$	176,855	$	176,855
Medium-term notes	$	3,092,947	$	2,858,809	$	3,199,548	$	2,881,272	$	3,623,082	$	3,297,687
Senior unsecured notes	$	315,927	$	303,000	$	338,594	$	303,000	$	357,328	$	303,000
Term asset-backed securitization debt	$	1,447,710	$	1,446,656	$	1,457,807	$	1,447,776	$	1,702,320	$	1,692,065

Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Net and Accounts Payable – With the exception of certain cash equivalents, these items are recorded in the financial statements at historical cost. The historical cost basis for these amounts is estimated to approximate their respective fair values due to the short maturity of these instruments. Fair value is based on Level 1 or Level 2 inputs.

Marketable Securities – Marketable securities are recorded in the financial statements at fair value. The fair value of marketable securities is based primarily on quoted market prices of similar financial assets. Changes in fair value are recorded, net of tax, as other comprehensive income and included as a component of shareholders’ equity. Fair value is based on Level 2 inputs.

Finance Receivables, Net – Retail and wholesale finance receivables are recorded in the financial statements at historical cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The historical cost basis of wholesale finance receivables approximates fair value because they either are short-term or have interest rates that adjust with changes in market interest rates.

Derivatives – Interest rate swaps, foreign currency exchange contracts and commodity contracts are derivative financial instruments and are carried at fair value on the balance sheet. The fair value of interest rate swaps is determined using pricing models that incorporate quoted prices for similar assets and observable inputs such as interest rates and yield curves. The fair value of foreign currency exchange and commodity contracts is determined using publicly quoted prices. Fair value is calculated using Level 2 inputs.

Debt – Debt is generally recorded in the financial statements at historical cost. The carrying value of unsecured commercial paper approximates fair value due to its short maturity. Fair value is calculated using Level 2 inputs.

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The carrying value of debt provided under the Canadian Conduit approximates fair value since the interest rates charged under the facility are tied directly to market rates and fluctuate as market rates change. Fair value is calculated using Level 2 inputs.

The fair values of the medium-term notes are estimated based upon rates currently available for debt with similar terms and remaining maturities. Fair value is calculated using Level 2 inputs.

The fair value of the senior unsecured notes is estimated based upon rates currently available for debt with similar terms and remaining maturities. Fair value is calculated using Level 2 inputs.

The fair value of the debt related to term asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities. Fair value is calculated using Level 2 inputs.

9. Derivative Instruments and Hedging Activities

The Company is exposed to certain risks such as foreign currency exchange rate risk, interest rate risk and commodity price risk. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures, which prohibit the use of financial instruments for speculative trading purposes.

All derivative instruments are recognized on the balance sheet at fair value (see Note 7). In accordance with ASC Topic 815, “Derivatives and Hedging,” the accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. For derivative instruments that are designated as cash flow hedges, the effective portion of gains and losses that result from changes in the fair value of derivative instruments is initially recorded in other comprehensive income (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. Any ineffective portion is immediately recognized in earnings. No component of a hedging derivative instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivative instruments that do not qualify for hedge accounting are recorded at fair value, and any changes in fair value are recorded in current period earnings.

The Company sells its products internationally and in most markets those sales are made in the foreign country’s local currency. As a result, the Company’s earnings can be affected by fluctuations in the value of the U.S. dollar relative to foreign currency. The Company’s most significant foreign currency risk relates to the Euro, the Australian dollar, the Japanese yen and the Brazilian real. The Company utilizes foreign currency contracts to mitigate the effects of certain currencies’ fluctuations on earnings. The foreign currency contracts are entered into with banks and allow the Company to exchange a specified amount of foreign currency for U.S. dollars at a future date, based on a fixed exchange rate.

The Company utilizes commodity contracts to hedge portions of the cost of certain commodities consumed in the Company’s motorcycle production and distribution operations.

The Company’s foreign currency contracts and commodity contracts generally have maturities of less than one year.

The Company’s earnings are affected by changes in interest rates. HDFS utilized interest rate swaps to reduce the impact of fluctuations in interest rates on its unsecured commercial paper by converting a portion from a floating rate basis to a fixed rate basis. The swaps expired during the second quarter of 2013, and as of September 29, 2013, HDFS had no interest rate swaps outstanding. The fair value of HDFS’s interest rate swaps at December 31, 2012 and September 30, 2012 was determined using pricing models that incorporate quoted prices for similar assets and observable inputs such as interest rates and yield curves.

23

The following table summarizes the fair value of the Company’s derivative financial instruments (in thousands):

	September 29, 2013						December 31, 2012						September 30, 2012
Derivatives Designated As Hedging Instruments Under ASC Topic 815	Notional Value		Asset Fair  Value (a)		Liability Fair  Value (b)		Notional Value		Asset Fair Value (a)		Liability Fair  Value (b)		Notional Value		Asset Fair  Value (a)		Liability Fair  Value (b)
Foreign currency contracts(c)	$	335,172	$	1,714	$	771	$	345,021	$	169	$	6,850	$	385,883	$	956	$	1,784
Commodity contracts(c)	1,784		—		52		1,064		148		683		1,181		80		—
Interest rate swaps(c)	—		—		—		35,800		—		373		38,600		—		674
Total	$	336,956	$	1,714	$	823	$	381,885	$	317	$	7,906	$	425,664	$	1,036	$	2,458
	September 29, 2013						December 31, 2012						September 30, 2012
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815	Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)		Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)		Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)
Commodity contracts	$	11,250	$	19	$	329	$	16,237	$	—	$	14	$	14,518	$	603	$	—
	$	11,250	$	19	$	329	$	16,237	$	—	$	14	$	14,518	$	603	$	—

(a) Included in other current assets

(b) Included in accrued liabilities

(c) Derivative designated as a cash flow hedge

The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands):

	Amount of Gain/(Loss) Before Tax Recognized in OCI
	Three months ended						Nine Months Ended
Cash Flow Hedges	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Foreign currency contracts	$	(10,324	)	$	1,704		$	6,120		$	5,799
Commodity contracts	27			32			(46		)	(393		)
Interest rate swaps	—			(19		)	(2		)	(43		)
Total	$	(10,297	)	$	1,717		$	6,072		$	5,363

	Amount of Gain/(Loss) Before Tax Reclassified from AOCI into Income
	Three months ended						Nine Months Ended						Expected to be Reclassified
Cash Flow Hedges	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012			Over the Next Twelve Months
Foreign currency contracts(a)	$	47		$	7,742		$	61		$	19,846		$	329
Commodity contracts(a)	(21		)	(81		)	(8		)	(737		)	(52		)
Interest rate swaps(b)	—			(327		)	(345		)	(2,262		)	—
Total	$	26		$	7,334		$	(292	)	$	16,847		$	277

(a) Gain/(loss) reclassified from accumulated other comprehensive income (AOCI) to income is included in cost of goods sold.

(b) Gain/(loss) reclassified from AOCI to income is included in financial services interest expense.

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The following tables summarize the amount of gains and losses related to derivative financial instruments not designated as hedging instruments (in thousands):

	Amount of Gain/(Loss) Before Tax Recognized in Income on Derivative
	Three months ended					Nine Months Ended
Derivatives	September 29, 2013			September 30, 2012		September 29, 2013			September 30, 2012
Commodity contracts	$	(135	)	$	603	$	(743	)	$	603
Total	$	(135	)	$	603	$	(743	)	$	603

For the three and nine months ended September 29, 2013 and September 30, 2012, the cash flow hedges were highly effective and, as a result, the amount of hedge ineffectiveness was not material. No amounts were excluded from effectiveness testing.

The Company is exposed to credit loss risk in the event of non-performance by counterparties to these derivative financial instruments. Although no assurances can be given, the Company does not expect any of the counterparties to these derivative financial instruments to fail to meet its obligations. To manage credit loss risk, the Company evaluates counterparties based on credit ratings and, on a quarterly basis, evaluates each hedge’s net position relative to the counterparty’s ability to cover its position.

10. Accumulated Other Comprehensive Loss

The following tables set forth the changes in accumulated other comprehensive loss (AOCL) (in thousands):

	Three months ended September 29, 2013
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	29,461		$	50		$	6,674		$	(635,375	)	$	(599,190	)
Other comprehensive income (loss) before reclassifications	10,040			(297		)	(10,297		)	—			(554		)
Income tax	(808		)	110			3,813			—			3,115
Net other comprehensive income before reclassifications	9,232			(187		)	(6,484		)	—			2,561
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(47		)	—			(47		)
Realized (gains) losses - commodities contracts(b)	—			—			21			—			21
Realized (gains) losses - interest rate swaps(c)	—			—			—			—			—
Prior service credits(d)	—			—			—			(526		)	(526		)
Actuarial losses(d)	—			—			—			16,789			16,789
Total before tax	—			—			(26		)	16,263			16,237
Income tax expense (benefit)	—			—			10			(6,024		)	(6,014		)
Net reclassifications	—			—			(16		)	10,239			10,223
Other comprehensive income (loss)	9,232			(187		)	(6,500		)	10,239			12,784
Ending Balance	$	38,693		$	(137	)	$	174		$	(625,136	)	$	(586,406	)

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	Three months ended September 30, 2012
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	44,571		$	655		$	2,654		$	(517,436	)	$	(469,556	)
Other comprehensive income before reclassifications	8,388			529			1,717			—			10,634
Income tax	(963		)	(196		)	(636		)	—			(1,795		)
Net other comprehensive income before reclassifications	7,425			333			1,081			—			8,839
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(7,742		)	—			(7,742		)
Realized (gains) losses - commodities contracts(b)	—			—			81			—			81
Realized (gains) losses - interest rate swaps(c)	—			—			327			—			327
Prior service credits(d)	—			—			—			(233		)	(233		)
Actuarial losses(d)	—			—			—			12,824			12,824
Total before tax	—			—			(7,334		)	12,591			5,257
Income tax expense (benefit)	—			—			2,699			(4,658		)	(1,959		)
Net reclassifications	—			—			(4,635		)	7,933			3,298
Other comprehensive income (loss)	7,425			333			(3,554		)	7,933			12,137
Ending Balance	$	51,996		$	988		$	(900	)	$	(509,503	)	$	(457,419	)

	Nine months ended September 29, 2013
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	51,335		$	677		$	(3,837	)	$	(655,853	)	$	(607,678	)
Other comprehensive (loss) income before reclassifications	(13,812		)	(1,293		)	6,072			—			(9,033		)
Income tax	1,170			479			(2,248		)	—			(599		)
Net other comprehensive income before reclassifications	(12,642		)	(814		)	3,824			—			(9,632		)
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(61		)	—			(61		)
Realized (gains) losses - commodities contracts(b)	—			—			8			—			8
Realized (gains) losses - interest rate swaps(c)	—			—			345			—			345
Prior service credits(d)	—			—			—			(1,580		)	(1,580		)
Actuarial losses(d)	—			—			—			50,368			50,368
Total before tax	—			—			292			48,788			49,080
Income tax expense	—			—			(105		)	(18,071		)	(18,176		)
Net reclassifications	—			—			187			30,717			30,904
Other comprehensive (loss) income	(12,642		)	(814		)	4,011			30,717			21,272
Ending Balance	$	38,693		$	(137	)	$	174		$	(625,136	)	$	(586,406	)

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	Nine months ended September 30, 2012
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	49,935		$	327		$	6,307		$	(533,302	)	$	(476,733	)
Other comprehensive income before reclassifications	3,087			1,050			5,363			—			9,500
Income tax	(1,026		)	(389		)	(1,987		)	—			(3,402		)
Net other comprehensive income before reclassifications	2,061			661			3,376			—			6,098
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(19,846		)	—			(19,846		)
Realized (gains) losses - commodities contracts(b)	—			—			737			—			737
Realized (gains) losses - interest rate swaps(c)	—			—			2,262			—			2,262
Prior service credits(d)	—			—			—			(671		)	(671		)
Actuarial losses(d)	—			—			—			38,472			38,472
Total before tax	—			—			(16,847		)	37,801			20,954
Income tax expense (benefit)	—			—			6,264			(14,002		)	(7,738		)
Net reclassifications	—			—			(10,583		)	23,799			13,216
Other comprehensive income (loss)	2,061			661			(7,207		)	23,799			19,314
Ending Balance	$	51,996		$	988		$	(900	)	$	(509,503	)	$	(457,419	)

(a) Amounts reclassified to net income are included in investment income.

(b) Amounts reclassified to net income are included in motorcycles and related products cost of goods sold.

(c) Amounts reclassified to net income are presented in financial services interest expense.

(d) Amounts reclassified are included in the computation of net periodic period cost. See note 14 for information related to pension and postretirement benefit plans.

11. Income Taxes

The Company’s 2013 income tax rate for the nine months ended September 29, 2013 was 34.3% compared to 35.3% for the same period last year. The Company's 2013 effective tax rate was favorably impacted by the reinstatement of the U.S. Federal Research and Development tax credit with the enactment of the American Taxpayer Relief Act of 2012 at the beginning of 2013 and a third quarter adjustment to the valuation allowance on certain deferred tax assets. During the first nine months of 2013, the Company recorded the benefits of the Research and Development tax credit for the full year of 2012 and for the three quarters of 2013.

12. Product Warranty and Safety Recall Campaigns

The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company currently provides a standard three-year limited warranty on all new motorcycles sold. In addition, the Company provides a one-year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company maintains reserves for future warranty claims using an estimated cost, which is based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary safety recall campaigns. The Company reserves for all estimated costs associated with safety recalls in the period that the safety recalls are announced.

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Changes in the Company’s warranty and safety recall liability were as follows (in thousands):

	Three months ended						Nine months ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Balance, beginning of period	$	70,406		$	67,801		$	60,263		$	54,994
Warranties issued during the period	12,008			10,228			46,529			42,846
Settlements made during the period	(16,898		)	(19,799		)	(45,238		)	(52,885		)
Recalls and changes to pre-existing warranty liabilities	77			4,980			4,039			18,255
Balance, end of period	$	65,593		$	63,210		$	65,593		$	63,210

The liability for safety recall campaigns was $2.5 million, $4.6 million and $5.0 million as of September 29, 2013, December 31, 2012 and September 30, 2012, respectively.

13. Earnings Per Share

The following table sets forth the computation for basic and diluted earnings per share (in thousands, except per share amounts):

	Three months ended				Nine months ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Numerator:
Net income used in computing basic and diluted earnings per share	$	162,716	$	134,001	$	658,584	$	553,286
Denominator:
Denominator for basic earnings per share - weighted-average common shares	221,936		226,020		223,134		227,953
Effect of dilutive securities - employee stock compensation plan	1,550		1,969		1,562		2,117
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	223,486		227,989		224,696		230,070
Earnings per common share
Basic	$	0.73	$	0.59	$	2.95	$	2.43
Diluted	$	0.73	$	0.59	$	2.93	$	2.40

Outstanding options to purchase 0.9 million and 2.2 million shares of common stock for the three months endedSeptember 29, 2013 and September 30, 2012, respectively, and 1.1 million and 2.3 million shares of common stock for the nine months endedSeptember 29, 2013 and September 30, 2012, respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price and therefore the effect would have been anti-dilutive.

The Company has a share-based compensation plan under which employees may be granted share-based awards including shares of restricted stock and restricted stock units (RSUs). Non-forfeitable dividends are paid on unvested shares of restricted stock and non-forfeitable dividend equivalents are paid on unvested RSUs. As such, shares of restricted stock and RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation for the three and nine month periods ending September 29, 2013 and September 30, 2012, respectively.

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14. Employee Benefit Plans

The Company has a defined benefit pension plan and postretirement healthcare benefit plans that cover certain employees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees which were instituted to replace benefits lost under the Tax Revenue Reconciliation Act of 1993. Net periodic benefit costs are allocated between selling, administrative and engineering expense, cost of goods sold and inventory. Amounts capitalized in inventory are not significant. Components of net periodic benefit costs were as follows (in thousands):

	Three months ended						Nine months ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Pension and SERPA Benefits
Service cost	$	8,997		$	8,420		$	26,990		$	25,260
Interest cost	19,812			20,816			59,436			62,448
Expected return on plan assets	(31,832		)	(29,277		)	(95,496		)	(87,832		)
Amortization of unrecognized:
Prior service cost	437			740			1,310			2,219
Net loss	14,652			10,969			43,956			32,906
Net periodic benefit cost	$	12,066		$	11,668		$	36,196		$	35,001
Postretirement Healthcare Benefits
Service cost	$	1,965		$	1,854		$	5,894		$	5,560
Interest cost	3,900			4,578			11,699			13,733
Expected return on plan assets	(2,384		)	(2,356		)	(7,153		)	(7,068		)
Amortization of unrecognized:
Prior service credit	(963		)	(963		)	(2,890		)	(2,890		)
Net loss	2,137			1,855			6,412			5,566
Net periodic benefit cost	$	4,655		$	4,968		$	13,962		$	14,901

During the first nine months of 2013 and 2012, the Company voluntarily contributed $175 million and $200 million, respectively, in cash to further fund its pension plans. No additional pension contributions are required in 2013. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.

15. Business Segments

The Company operates in two business segments: Motorcycles and Financial Services. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately based on the fundamental differences in their operations. Selected segment information is set forth below (in thousands):

	Three months ended				Nine months ended
	September 29, 2013		September 30, 2012		September 29, 2013			September 30, 2012
Motorcycles net revenue	$	1,180,284	$	1,089,268	$	4,225,998		$	3,931,684
Gross profit	416,315		377,904		1,537,627			1,398,231
Selling, administrative and engineering expense	240,198		223,982		729,443			709,015
Restructuring expense (benefit)	646		9,170		(1,713		)	26,841
Operating income from Motorcycles	175,471		144,752		809,897			662,375
Financial services revenue	163,434		161,027		483,240			477,962
Financial services expense	87,366		88,677		261,471			256,264
Operating income from Financial Services	76,068		72,350		221,769			221,698
Operating income	$	251,539	$	217,102	$	1,031,666		$	884,073

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16. Commitments and Contingencies

The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining required reserves related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. The required reserves are monitored on an ongoing basis and are updated based on new developments or new information in each matter.

Environmental Protection Agency Notice

In December 2009, the Company received formal, written requests for information from the United States Environmental Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels, (ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written responses to the EPA’s inquiry and has engaged in discussions with the EPA. Since that time, the EPA has delivered various additional requests for information to which the Company has responded. It is possible that a result of the EPA’s investigation will be some form of enforcement action by the EPA that will seek a fine or other relief. However, at this time the Company does not know and cannot reasonably estimate the impact of any remedies the EPA might seek.

York Environmental Matters:

The Company is involved with government agencies and groups of potentially responsible parties in various environmental matters, including a matter involving the cleanup of soil and groundwater contamination at its York, Pennsylvania facility. The York facility was formerly used by the U.S. Navy and AMF prior to the purchase of the York facility by the Company from AMF in 1981. Although the Company is not certain as to the full extent of the environmental contamination at the York facility, it has been working with the Pennsylvania Department of Environmental Protection (PADEP) since 1986 in undertaking environmental investigation and remediation activities, including an ongoing site-wide remedial investigation/feasibility study (RI/FS). In January 1995, the Company entered into a settlement agreement (the Agreement) with the Navy. The Agreement calls for the Navy and the Company to contribute amounts into a trust equal to 53% and 47%, respectively, of future costs associated with environmental investigation and remediation activities at the York facility (Response Costs). The trust administers the payment of the Response Costs incurred at the York facility as covered by the Agreement.

In February 2002, the Company was advised by the EPA that it considers some of the Company’s remediation activities at the York facility to be subject to the EPA’s corrective action program under the Resource Conservation and Recovery Act (RCRA) and offered the Company the option of addressing corrective action under a RCRA facility lead agreement. In July 2005, the York facility was designated as the first site in Pennsylvania to be addressed under the “One Cleanup Program.” The program provides a more streamlined and efficient oversight of voluntary remediation by both PADEP and EPA and will be carried out consistent with the Agreement with the Navy. As a result, the RCRA facility lead agreement has been superseded.

The Company estimates that its share of the future Response Costs at the York facility will be approximately $3.4 million and has established a reserve for this amount which is included in accrued liabilities in the Condensed Consolidated Balance Sheets. As noted above, the RI/FS is still underway and given the uncertainty that exists concerning the nature and scope of additional environmental investigation and remediation that may ultimately be required under the RI/FS or otherwise at the York facility, we are unable to make a reasonable estimate of those additional costs, if any, that may result.

The estimate of the Company’s future Response Costs that will be incurred at the York facility is based on reports of independent environmental consultants retained by the Company, the actual costs incurred to date and the estimated costs to complete the necessary investigation and remediation activities. Response Costs are expected to be paid primarily over a period of several years ending in 2017 although certain Response Costs may continue for some time beyond 2017.

Product Liability Matters:

The Company is involved in product liability lawsuits related to the operation of its business. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and that product liability will not have a material adverse effect on the Company’s consolidated financial statements.

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17. Supplemental Consolidating Data

The supplemental consolidating data for the periods noted is presented for informational purposes. The supplemental consolidating data may be different than segment information presented elsewhere due to the allocation of intercompany eliminations to reporting segments. All supplemental data is presented in thousands.

	Three months ended September 29, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,183,016		$	—	$	(2,732	)	$	1,180,284
Financial services	—			163,829		(395		)	163,434
Total revenue	1,183,016			163,829		(3,127		)	1,343,718
Costs and expenses:
Motorcycles and related products cost of goods sold	763,969			—		—			763,969
Financial services interest expense	—			39,944		—			39,944
Financial services provision for credit losses	—			14,604		—			14,604
Selling, administrative and engineering expense	240,593			35,550		(3,127		)	273,016
Restructuring expense	646			—		—			646
Total costs and expenses	1,005,208			90,098		(3,127		)	1,092,179
Operating income	177,808			73,731		—			251,539
Investment income	1,161			—		—			1,161
Interest expense	11,369			—		—			11,369
Income before provision for income taxes	167,600			73,731		—			241,331
Provision for income taxes	51,721			26,894		—			78,615
Net income	$	115,879		$	46,837	$	—		$	162,716
	Nine months ended September 29, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	4,233,990		$	—	$	(7,992	)	$	4,225,998
Financial services	—			484,461		(1,221		)	483,240
Total revenue	4,233,990			484,461		(9,213		)	4,709,238
Costs and expenses:
Motorcycles and related products cost of goods sold	2,688,371			—		—			2,688,371
Financial services interest expense	—			126,004		—			126,004
Financial services provision for credit losses	—			39,011		—			39,011
Selling, administrative and engineering expense	730,664			104,448		(9,213		)	825,899
Restructuring expense	(1,713		)	—		—			(1,713		)
Total costs and expenses	3,417,322			269,463		(9,213		)	3,677,572
Operating income	816,668			214,998		—			1,031,666
Investment income	189,546			—		(185,000		)	4,546
Interest expense	33,998			—		—			33,998
Income before provision for income taxes	972,216			214,998		(185,000		)	1,002,214
Provision for income taxes	265,278			78,352		—			343,630
Net income	$	706,938		$	136,646	$	(185,000	)	$	658,584

31

	Three months ended September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,091,887	$	—	$	(2,619	)	$	1,089,268
Financial services	—		161,438		(411		)	161,027
Total revenue	1,091,887		161,438		(3,030		)	1,250,295
Costs and expenses:
Motorcycles and related products cost of goods sold	711,364		—		—			711,364
Financial services interest expense	—		46,231		—			46,231
Financial services provision for credit losses	—		9,069		—			9,069
Selling, administrative and engineering expense	224,393		35,996		(3,030		)	257,359
Restructuring expense	9,170		—		—			9,170
Total costs and expenses	944,927		91,296		(3,030		)	1,033,193
Operating income	146,960		70,142		—			217,102
Investment income	1,447		—		—			1,447
Interest expense	11,438		—		—			11,438
Income before provision for income taxes	136,969		70,142		—			207,111
Provision for income taxes	47,859		25,251		—			73,110
Net income	$	89,110	$	44,891	$	—		$	134,001
	Nine months ended September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	3,939,673	$	—	$	(7,989	)	$	3,931,684
Financial services	—		478,187		(225		)	477,962
Total revenue	3,939,673		478,187		(8,214		)	4,409,646
Costs and expenses:
Motorcycles and related products cost of goods sold	2,533,453		—		—			2,533,453
Financial services interest expense	—		146,199		—			146,199
Financial services provision for credit losses	—		12,823		—			12,823
Selling, administrative and engineering expense	709,240		105,231		(8,214		)	806,257
Restructuring expense	26,841		—		—			26,841
Total costs and expenses	3,269,534		264,253		(8,214		)	3,525,573
Operating income	670,139		213,934		—			884,073
Investment income	230,611		—		(225,000		)	5,611
Interest expense	34,528		—		—			34,528
Income before provision for income taxes	866,222		213,934		(225,000		)	855,156
Provision for income taxes	224,854		77,016		—			301,870
Net income	$	641,368	$	136,918	$	(225,000	)	$	553,286

32

	September 29, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	652,961	$	376,994	$	—		$	1,029,955
Marketable securities	122,234		—		—			122,234
Accounts receivable, net	1,228,320		—		(938,162		)	290,158
Finance receivables, net	—		1,829,612		—			1,829,612
Inventories	401,199		—		—			401,199
Restricted cash	—		194,329		—			194,329
Other current assets	160,538		64,650		—			225,188
Total current assets	2,565,252		2,465,585		(938,162		)	4,092,675
Finance receivables, net	—		4,355,278		—			4,355,278
Property, plant and equipment, net	763,469		31,766		—			795,235
Goodwill	30,041		—		—			30,041
Other long-term assets	272,490		14,804		(76,515		)	210,779
	$	3,631,252	$	6,867,433	$	(1,014,677	)	$	9,484,008
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	276,197	$	988,678	$	(938,162	)	$	326,713
Accrued liabilities	455,393		86,003		(2,169		)	539,227
Short-term debt	—		394,460		—			394,460
Current portion of long-term debt	303,000		418,316		—			721,316
Total current liabilities	1,034,590		1,887,457		(940,331		)	1,981,716
Long-term debt	—		4,067,733		—			4,067,733
Pension liability	144,563		—		—			144,563
Postretirement healthcare benefits	267,919		—		—			267,919
Other long-term liabilities	121,003		19,227		—			140,230
Shareholders’ equity	2,063,177		893,016		(74,346		)	2,881,847
	$	3,631,252	$	6,867,433	$	(1,014,677	)	$	9,484,008

33

	December 31, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	727,716	$	340,422	$	—		$	1,068,138
Marketable securities	135,634		—		—			135,634
Accounts receivable, net	781,642		—		(551,563		)	230,079
Finance receivables, net	—		1,743,045		—			1,743,045
Inventories	393,524		—		—			393,524
Restricted cash	—		188,008		—			188,008
Other current assets	230,905		57,609		3,994			292,508
Total current assets	2,269,421		2,329,084		(547,569		)	4,050,936
Finance receivables, net	—		4,038,807		—			4,038,807
Property, plant and equipment, net	783,068		32,396		—			815,464
Goodwill	29,530		—		—			29,530
Other long-term assets	292,764		19,468		(76,196		)	236,036
	$	3,374,783	$	6,419,755	$	(623,765	)	$	9,170,773
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	221,064	$	587,885	$	(551,563	)	$	257,386
Accrued liabilities	439,144		74,447		—			513,591
Short-term debt	—		294,943		—			294,943
Current portion of long-term debt	—		437,162		—			437,162
Total current liabilities	660,208		1,394,437		(551,563		)	1,503,082
Long-term debt	303,000		4,067,544		—			4,370,544
Pension liability	330,294		—		—			330,294
Postretirement healthcare benefits	278,062		—		—			278,062
Other long-term liabilities	114,476		16,691		—			131,167
Shareholders’ equity	1,688,743		941,083		(72,202		)	2,557,624
	$	3,374,783	$	6,419,755	$	(623,765	)	$	9,170,773

34

	September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,048,429	$	746,712	$	—		$	1,795,141
Marketable securities	136,376		—		—			136,376
Accounts receivable, net	623,021		—		(366,828		)	256,193
Finance receivables, net	—		1,726,061		—			1,726,061
Inventories	379,129		—		—			379,129
Restricted cash	—		217,400		—			217,400
Other current assets	177,278		60,118		—			237,396
Total current assets	2,364,233		2,750,291		(366,828		)	4,747,696
Finance receivables, net	—		4,189,606		—			4,189,606
Property, plant and equipment, net	735,719		29,116		—			764,835
Goodwill	28,928		—		—			28,928
Other long-term assets	338,987		20,193		(75,062		)	284,118
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	251,755	$	408,783	$	(366,828	)	$	293,710
Accrued liabilities	521,867		87,936		(3,725		)	606,078
Short-term debt	—		404,693		—			404,693
Current portion of long-term debt	—		997,194		—			997,194
Total current liabilities	773,622		1,898,606		(370,553		)	2,301,675
Long-term debt	303,000		4,169,413		—			4,472,413
Pension liability	125,664		—		—			125,664
Postretirement healthcare liability	261,564		—		—			261,564
Other long-term liabilities	134,509		15,995		—			150,504
Shareholders’ equity	1,869,508		905,192		(71,337		)	2,703,363
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183

35

	Nine months ended September 29, 2013
	Motorcycles &  Related Products Operations			Financial Services  Operations		Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net Income	$	706,938		136,646		$	(185,000	)	$	658,584
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	118,224			4,434		—			122,658
Amortization of deferred loan origination costs	—			63,548					63,548
Amortization of financing origination fees	355			6,639		—			6,994
Provision for employee long-term benefits	50,158			—		—			50,158
Contributions to pension and postretirement plans	(197,243		)	—		—			(197,243		)
Stock compensation expense	28,886			2,144		—			31,030
Net change in wholesale finance receivables related to sales	—			—		(71,869		)	(71,869		)
Provision for credit losses	—			39,011		—			39,011
Loss on debt extinguishment	—			4,947		—			4,947
Foreign currency adjustments	12,874			—		—			12,874
Other, net	207			(270	)	—			(63		)
Change in current assets and current liabilities:
Accounts receivable	(302,434		)	—		236,599			(65,835		)
Finance receivables—accrued interest and other	—			937		—			937
Inventories	(19,233		)	—		—			(19,233		)
Accounts payable and accrued liabilities	113,902			264,974		(236,599		)	142,277
Restructuring reserves	(24,521		)	—		—			(24,521		)
Derivative instruments	(1,790		)	(28	)	—			(1,818		)
Other	74,205			(1,538	)	—			72,667
Total adjustments	(146,410		)	384,798		(71,869		)	166,519
Net cash provided by (used by) operating activities	560,528			521,444		(256,869		)	825,103

36

	Nine months ended September 29, 2013
	Motorcycles &  Related Products Operations			Financial Services  Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(107,886		)	(3,804		)	—			(111,690		)
Origination of finance receivables	—			(5,832,489		)	3,215,389			(2,617,100		)
Collections of finance receivables	—			5,314,439			(3,143,520		)	2,170,919
Purchases of marketable securities	(4,998		)	—			—			(4,998		)
Sales and redemptions of marketable securities	17,105			—			—			17,105
Other	6,721			—			—			6,721
Net cash (used by) provided by investing activities	(89,058		)	(521,854		)	71,869			(539,043		)
Cash flows from financing activities:
Repayments of medium-term notes	—			(27,858		)	—			(27,858		)
Loan to HDFS	(150,000		)	150,000			—			—
Proceeds from securitization of debt	—			647,516			—			647,516
Repayments of securitization debt	—			(650,424		)	—			(650,424		)
Net increase in credit facilities and unsecured commercial paper	—			99,416			—			99,416
Borrowings of asset-backed commercial paper	—			69,555			—			69,555
Repayments of asset-backed commercial paper	—			(58,990		)	—			(58,990		)
Net change in restricted cash	—			(6,321		)	—			(6,321		)
Dividends paid	(140,772		)	(185,000		)	185,000			(140,772		)
Purchase of common stock for treasury	(302,196		)	—			—			(302,196		)
Excess tax benefits from share-based payments	18,444			—			—			18,444
Issuance of common stock under employee stock option plans	39,145			—			—			39,145
Net cash (used by) provided by financing activities	(535,379		)	37,894			185,000			(312,485		)
Effect of exchange rate changes on cash and cash equivalents	(10,846		)	(912		)	—			(11,758		)
Net (decrease) increase in cash and cash equivalents	$	(74,755	)	$	36,572		$	—		$	(38,183	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	727,716		$	340,422		$	—		$	1,068,138
Net (decrease) increase in cash and cash equivalents	(74,755		)	36,572			—			(38,183		)
Cash and cash equivalents—end of period	$	652,961		$	376,994		$	—		$	1,029,955

37

	Nine months ended September 30, 2012
	Motorcycles &  Related Products Operations			Financial Services  Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	641,368		$	136,918		$	(225,000	)	$	553,286
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	122,570			4,873			—			127,443
Amortization of deferred loan origination costs	—			58,438			—			58,438
Amortization of financing origination fees	355			7,107			—			7,462
Provision for employee long-term benefits	48,808			1,540			—			50,348
Contributions to pension and postretirement plans	(220,733		)	—			—			(220,733		)
Stock compensation expense	27,881			2,406			—			30,287
Net change in wholesale finance receivables related to sales	—			—			5,570			5,570
Provision for credit losses	—			12,823			—			12,823
Foreign currency adjustments	8,692			—			—			8,692
Other, net	2,252			7,159			—			9,411
Change in current assets and current liabilities:
Accounts receivable	(230,156		)	—			192,252			(37,904		)
Finance receivables—accrued interest and other	—			1,597			—			1,597
Inventories	36,463			—			—			36,463
Accounts payable and accrued liabilities	86,513			205,381			(192,252		)	99,642
Restructuring reserves	(9,177		)	—			—			(9,177		)
Derivative instruments	739			(128		)	—			611
Other	(19,550		)	(2,211		)	—			(21,761		)
Total adjustments	(145,343		)	298,985			5,570			159,212
Net cash provided by (used by) operating activities	496,025			435,903			(219,430		)	712,498
Cash flows from investing activities:
Capital expenditures	(91,469		)	(3,860		)	—			(95,329		)
Origination of finance receivables	—			(5,315,732		)	2,987,079			(2,328,653		)
Collections of finance receivables	—			5,123,674			(2,992,649		)	2,131,025
Purchases of marketable securities	(4,993		)	—			—			(4,993		)
Sales and redemptions of marketable securities	23,046			—			—			23,046
Net cash used by investing activities	(73,416		)	(195,918		)	(5,570		)	(274,904		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			993,737			—			993,737
Proceeds from securitization debt	—			763,895			—			763,895
Repayments of securitization debt	—			(1,161,592		)	—			(1,161,592		)
Borrowings of asset-backed commercial paper	—			182,131			—			182,131
Repayments of asset-backed commercial paper	—			(6,538		)	—			(6,538		)
Net decrease in credit facilities and unsecured commercial paper	—			(634,874		)	—			(634,874		)
Net change in restricted cash	—			12,255			—			12,255
Dividends paid	(106,560		)	(225,000		)	225,000			(106,560		)
Purchase of common stock for treasury	(257,981		)	—			—			(257,981		)
Excess tax benefits from share-based payments	16,390			—			—			16,390
Issuance of common stock under employee stock option plans	36,342			—			—			36,342
Net cash (used by) provided by financing activities	(311,809		)	(75,986		)	225,000			(162,795		)
Effect of exchange rate changes on cash and cash equivalents	(5,701		)	(907		)	—			(6,608		)
Net increase in cash and cash equivalents	$	105,099		$	163,092		$	—		$	268,191
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	943,330		$	583,620		$	—		$	1,526,950
Net increase in cash and cash equivalents	105,099			163,092			—			268,191
Cash and cash equivalents—end of period	$	1,048,429		$	746,712		$	—		$	1,795,141

38

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Harley-Davidson, Inc. is the parent company of the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). HDMC produces heavyweight cruiser and touring motorcycles. HDMC currently manufactures five families of motorcycles: Touring, Dyna^®, Softail^®, Sportster^® and V-Rod^®. HDFS provides wholesale and retail financing and insurance programs primarily to Harley-Davidson dealers and customers.

The Company operates in two business segments: Motorcycles & Related Products (Motorcycles) and Financial Services (Financial Services). The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately based on the fundamental differences in their operations.

The “% Change” figures included in the “Results of Operations” section were calculated using unrounded dollar amounts and may differ from calculations using the rounded dollar amounts presented.

Overview

The Company’s net income was $162.7 million, or $0.73 per diluted share, for the third quarter of 2013 compared to $134.0 million, or $0.59 per diluted share, in the third quarter of 2012. Operating income from Motorcycles was up $30.7 million or 21.2% from last year’s third quarter driven by a stronger product mix, model year price increases, a 2.3% increase in motorcycle shipments and lower restructuring costs. During the quarter, the Company began shipping its new 2014 motorcycles including Project Rushmore, its new line of touring motorcycles. Operating income from Financial Services in the third quarter of 2013 was $76.1 million, compared to $72.4 million in the year-ago quarter. The increase in 2013 operating income was driven by lower interest expense which was partially offset by a higher provision for credit losses. In the third quarter of 2013, financial services results continued to benefit from a lower cost of funds as compared to the prior year.

During the third quarter of 2013, worldwide independent dealer retail sales of new Harley-Davidson motorcycles increased 15.5% compared to the same period in 2012, including a 20.1% increase in the U.S. and a 6.5% increase in international markets. In the third quarter of 2013, retail sales were up 10.0% in the Asia Pacific region, 15.6% in the Latin America region, 7.0% in Canada and 1.6% in the Europe, Middle East and Africa (EMEA) region.

(1) Note Regarding Forward-Looking Statements

The Company intends that certain matters discussed in this report are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by reference to this footnote or because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this report. Certain of such risks and uncertainties are described in close proximity to such statements or elsewhere in this report, including under the caption “Cautionary Statements” and in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this report are made only as of the date of the filing of this report (November 6, 2013), and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

39

Outlook⁽¹⁾ 

On October 22, 2013 the Company provided the following information concerning its expectations for the remainder of 2013.

The Company reaffirmed its expectation to ship 259,000 to 264,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2013, an increase of approximately 4.5% to 6.5% over 2012. In addition, the Company announced that its full-year shipment estimate includes expected shipments of 45,000 to 50,000 motorcycles in the fourth quarter of 2013, in line with shipments during the fourth quarter of 2012 of 47,067 motorcycles.

However, based on the Company's belief that retail sales during the second quarter of 2013 were negatively impacted by cooler and wetter than normal weather conditions in much of the U.S., the Company estimates that a portion of the 2013 volume that was lost in the second quarter will not be recovered by the end of 2013. Consequently, the Company continues to believe that this will put pressure on its ability to reach the high end of its 2013 shipment guidance. The Company also continues to remain cautious about the U.S. economy and the ongoing economic challenges in Europe.

The Company reaffirmed its 2013 full-year gross margin expectation to be between 35.25% and 36.25%. The Company expects gross margin percent in the fourth quarter of 2013 to be in line with last year’s fourth quarter. The Company expects that fourth quarter gross margin will reflect the ongoing benefits from restructuring savings and lower temporary inefficiencies. However, the Company expects that lower production will adversely impact the Company's 2013 fourth quarter gross margin percentage. Motorcycle production in the fourth quarter of 2013 is expected to be lower than in last year’s fourth quarter as the Company prepares to implement surge manufacturing at its Kansas City facility in early 2014. In addition, product mix in the fourth quarter of 2013 is expected to be unfavorable compared to the fourth quarter of 2012 when touring motorcycles comprised 46.0% of total shipments following the 2012 third-quarter implementation of a new ERP system at its York, Pennsylvania (York) production facility. The Company also expects unfavorable changes in foreign currency exchange rates to have an adverse impact on the 2013 fourth quarter gross margin. Finally, the Company expects its gross margin percent in the fourth quarter of 2013 to reflect the dilutive impact of 2014 model year motorcycle net pricing.

During the third quarter, the Company introduced its new 2014 model year motorcycles. The average wholesale and manufacturer's suggested retail prices on these motorcycles are approximately 3.5% higher than the prior model year. By region, the average wholesale and manufacturer's suggested retail prices are up approximately 4.25% in the U.S., 1.5% in EMEA and 2.5% in Asia Pacific and Latin America. At the same time, the significant content added to the 2014 model year motorcycles is expected to increase costs by approximately 2.75% measured as a percent of revenue, or 4.3% measured as a percent of cost of goods sold. The Company expects these pricing actions will result in wholesale price increases in excess of cost increases of approximately 0.75% measured as a percent of revenue, or 2.1% measured as a percent of gross margin. Therefore, despite the incremental revenue and gross profit expected from the model year 2014 pricing actions, the Company expects that 2014 model year price increases, net of related costs will be dilutive to motorcycle gross margin percent by approximately 0.5% through the end of the 2014 model year.

The Company continues to believe that operating income from financial services in 2013 will be modestly lower than 2012 as the business benefited from approximately $17 million in credit loss allowance releases in 2012. The Company also expects that increased competition will put pressure on HDFS' operating income going forward. Additionally, the Company continues to expect modestly higher credit losses in 2013 due to lower recoveries resulting from lower charge-offs in prior periods, changing consumer behavior and HDFS' funding of additional prudently structured sub-prime loans. Finally, key benchmark interest rates increased during 2013. The Company believes HDFS is well-positioned for a changing interest rate environment given its diversified funding portfolio. The Company expects only a minimal impact from changes in key benchmark interest rates in 2013, but that rising interest rates will result in compression of HDFS operating margins over time.

The Company adjusted its estimated full-year 2013 effective tax rate to approximately 34.7%, which is down slightly from its previous estimate of 34.8%, driven by actual results for the first nine months of 2013. This guidance excludes the effect of any potential future adjustments for matters such as changes in tax legislation or audit settlements which are recorded as discrete items in the period in which they are settled.

Finally, the Company confirmed its 2013 full-year capital expenditure estimate of $200 million to $220 million.

Recent Product Announcement⁽¹⁾ 

On November 4, 2013, the Company announced it will be offering two new motorcycles, the Harley-Davidson Street 750 and Street 500 beginning in 2014. These motorcycles were added to the Company's product plan in order to reach riders globally, who are looking for a motorcycle built for an urban environment that delivers the look, sound and feel of a Harley-Davidson. The Street models will be powered by an all new 750 cc or 500 cc liquid-cooled, Harley-Davidson Revolution X engine which was designed to meet the demands of riders in an urban setting. These product attributes also make the Harley-

40

Davidson Street ideal for new riders and the Company plans to integrate the Street 500 into its U.S. Rider's Edge program beginning in 2014. The Street bikes will be priced to reach more customers with a manufacturer’s suggested retail price in the U.S. of $6,700 to $7,500, depending on the model. Street motorcycles for the Company's North American customers will be built in its Kansas City facility and it will utilize its Bawal, India facility to build Street motorcycles for other international markets.

The Company’s plan is to initially launch Street at retail in the U.S., Italy, Spain, Portugal and India in the second quarter of 2014 and expand to additional markets later in 2014 and into 2015. The Company expects shipment volumes in 2014 to be between 7,000 and 10,000 units, with more than half of the 2014 shipments going to support U.S. dealers’ Rider's Edge and showroom display needs. The Company believes the Street motorcycles will complement the Sportster family allowing it to attract new outreach and international customers, although it is anticipated that some customers that would have considered a Sportster may now choose a Street model.

Similar to Sportster models, the Street models will have lower wholesale and manufacturer's suggested retail prices and lower margins than the Company's current fleet average and will represent an investment in customers who are likely to have a significant lifetime value to the Company through repeat purchases. The Company anticipates that motorcycle product mix in 2014 and going forward will reflect a greater concentration of these models. As a result, in 2014, the Company expects Street will deliver incremental gross margin dollars, but will have an approximate 0.5% adverse impact on gross margin percentage based on the Company's plan. Even with this critical investment in the future, the Company continues to expect its gross margin percentage to grow modestly in 2014, and over the next 3 to 5 years as it continues to execute its strategic growth plan and launch new products.

Restructuring Activities⁽¹⁾ 

2011 Restructuring Plan

In December 2011, the Company made a decision to cease operations at New Castalloy, its Australian subsidiary and producer of cast motorcycle wheels and wheel hubs, and source those components through other existing suppliers by the end of 2013. Since 2011, the Company has successfully transitioned a significant amount of wheel production to other existing suppliers. However, during the second quarter of 2013, the Company made a decision to retain limited operations at New Castalloy focused on the production of certain complex, high-finish wheels in a cost-effective and competitive manner. The Company also entered into a new agreement with the unionized labor force at New Castalloy.

In connection with the modified 2011 New Castalloy restructuring plan, the New Castalloy workforce was reduced by approximately 100 employees, leaving approximately 100 remaining employees to support the ongoing operations. The original plan would have resulted in a workforce reduction of approximately 200 employees.

In February 2011, the Company’s unionized employees at its facility in Kansas City, Missouri (Kansas City) ratified a new seven-year labor agreement. The new agreement took effect on August 1, 2011. The new contract is similar to the labor agreements ratified at the Company’s Wisconsin facilities in September 2010 and its York production facility in December 2009 and allows for similar flexibility, increased production efficiency and the addition of a flexible workforce component.

The 2011 Kansas City restructuring plan resulted in approximately 145 fewer full-time hourly unionized employees in its Kansas City facility than would be required under the previous contract.

2010 Restructuring Plan

In September 2010, the Company’s unionized employees in Wisconsin ratified three separate new seven-year labor agreements which took effect in April 2012 when the prior contracts expired. The new contracts are similar to the labor agreement ratified at the York facility in December 2009 and allow for similar flexibility, increased production efficiency and the addition of a flexible workforce component.

The 2010 restructuring plan resulted in approximately 250 fewer full-time hourly unionized employees in its Milwaukee-area facilities than would be required under the previous contract and approximately 75 fewer full-time hourly unionized employees in its Tomahawk, Wisconsin facility than would be required under the previous contract.

2009 Restructuring Plan

During 2009, in response to the U.S. economic recession and worldwide slowdown in consumer demand, the Company committed to a volume reduction and a combination of restructuring actions expected to be completed at various dates between 2009 and 2013. The actions were designed to reduce administrative costs, eliminate excess capacity and exit non-core business operations. The Company’s announced actions include the restructuring and transformation of the York facility including the

41

implementation of a new more flexible unionized labor agreement which allows for the addition of a flexible workforce component; consolidation of facilities related to engine and transmission production; outsourcing of certain distribution and transportation activities and exiting the Buell product line. In addition, the Company implemented projects under this plan involving the outsourcing of select information technology activities and the consolidation of an administrative office in Michigan into its corporate headquarters in Milwaukee, Wisconsin.

The 2009 restructuring plan resulted in a reduction of approximately 2,900 hourly production positions and approximately 800 non-production, primarily salaried positions within the Motorcycles segment and approximately 100 salaried positions in the Financial Services segment.

Restructuring Costs and Savings

During the first nine months of 2013, the Company incurred a $1.7 million restructuring benefit related to its combined restructuring plan activities. This includes approximately $5 million of benefit related to restructuring reserves released in the second quarter of 2013 in connection with the decision to retain a limited operation at the New Castalloy facility, as described above. The 2013 benefit is a slight offset to $484.3 million in restructuring and impairment expense incurred in prior years since the restructuring activities were initiated in 2009. On October 22, 2013, the Company reaffirmed its estimate for restructuring expenses related to its combined restructuring plan activities that it expects to incur from 2009 to 2013 of $485 million. The estimate reflects the impact of the Company's modified plan for New Castalloy. The Company continues to expect approximately 35% of those amounts to be non-cash. The Company has realized or estimates that it will realize cumulative savings from these restructuring activities, measured against 2008, as follows:

• 2009—$91 million (91% operating expense and 9% cost of sales) (actual);

• 2010—$172 million (64% operating expense and 36% cost of sales) (actual);

• 2011—$217 million (51% operating expense and 49% cost of sales) (actual);

• 2012—$280 million (42% operating expense and 58% cost of sales) (actual);

• 2013—$305 million (approximately 40% operating expense and approximately 60% cost of sales) (estimated); and

• Ongoing annually upon completion—$320 million (approximately 35% operating expense and approximately 65% cost of sales) (estimated).

Results of Operations for the Three Months Ended September 29, 2013

Compared to the Three Months Ended September 30, 2012

Consolidated Results

	Three months ended
(in thousands, except earnings per share)	September 29, 2013		September 30, 2012		Increase (Decrease)			% Change
Operating income from motorcycles & related products	$	175,471	$	144,752	$	30,719		21.2	%
Operating income from financial services	76,068		72,350		3,718			5.1
Operating income	251,539		217,102		34,437			15.9
Investment income	1,161		1,447		(286		)	(19.8	)
Interest expense	11,369		11,438		(69		)	(0.6	)
Income before income taxes	241,331		207,111		34,220			16.5
Provision for income taxes	78,615		73,110		5,505			7.5
Net income	$	162,716	$	134,001	$	28,715		21.4	%
Diluted earnings per share	$	0.73	$	0.59	$	0.14		23.7	%

Consolidated operating income was up 15.9% in the third quarter of 2013 led by an increase in operating income from the Motorcycles segment which improved by $30.7 million, or 21.2%, compared to the third quarter of 2012. Operating income from the Financial Services segment was higher during the third quarter of 2013 compared to the third quarter of 2012, increasing $3.7 million or 5.1%. Please refer to the “Motorcycles and Related Products Segment” and “Financial Services Segment” discussions following for a more detailed discussion of the factors affecting operating income.

The effective income tax rate for the third quarter of 2013 was 32.6% compared to 35.3% for the third quarter of 2012. The Company's third quarter of 2013 effective tax rate was favorably impacted by the reinstatement of the U.S. Federal

42

Research and Development tax credit with the enactment of the American Taxpayer Relief Act of 2012 at the beginning of 2013 and an adjustment of its valuation allowance on certain deferred tax assets.

Diluted earnings per share was $0.73 in the third quarter of 2013, up 23.7% over the same period in the prior year. The increase in diluted earnings per share was driven primarily by the 21.4% increase in net income, but also benefited from lower diluted weighted average shares outstanding. Diluted weighted average shares outstanding decreased from 228.0 million in the third quarter of 2012 to 223.5 million in the third quarter of 2013, driven by the Company's repurchase of common stock. Please refer to "Liquidity and Capital Resources" for additional information concerning the Company's share repurchase activity.

Harley-Davidson Motorcycle Worldwide Retail Sales^(a) 

Worldwide independent dealer retail sales of Harley-Davidson motorcycles increased15.5% during the third quarter of 2013 compared to the third quarter of 2012. Retail sales of Harley-Davidson motorcycles increased20.1% in the United States. The Company believes the U.S. retail sales increase for the third quarter of 2013 was due primarily to the launch of its 2014 model year motorcycles, significantly improved Harley-Davidson motorcycle availability and relatively low retail sales in the same period in 2012. Internationally, retail sales increased6.5% in the quarter. Retail sales increases in EMEA region were driven by growth in emerging markets, as well as strength in the United Kingdom and Germany, partially offset by softness in Southern Europe. Asia Pacific region growth was driven by emerging markets, primarily India and China; and Latin America region growth was driven by Brazil and Mexico.

The following table includes retail unit sales of Harley-Davidson motorcycles:

	Three months ended
	September 30, 2013	September 30, 2012	Increase (Decrease)		% Change
North America Region
United States	48,529	40,402	8,127		20.1	%
Canada	2,759	2,578	181		7.0	%
Total North America Region	51,288	42,980	8,308		19.3	%
Europe, Middle East and Africa Region (EMEA)
Europe(b)	7,922	8,146	(224	)	(2.7	)%
Other	1,707	1,330	377		28.3	%
Total Europe Region	9,629	9,476	153		1.6	%
Asia Pacific Region
Japan	2,821	2,941	(120	)	(4.1	)%
Other	3,805	3,083	722		23.4	%
Total Asia Pacific Region	6,626	6,024	602		10.0	%
Latin America Region	2,974	2,573	401		15.6	%
Total Worldwide Retail Sales	70,517	61,053	9,464		15.5	%

(a) Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning retail sales and this information is subject to revision.

(b) Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

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Motorcycles & Related Products Segment

Motorcycle Unit Shipments

The following table includes wholesale motorcycle unit shipments for the Motorcycles segment:

	Three months ended
	September 29, 2013			September 30, 2012			Unit		Unit
	Units	Mix %		Units	Mix %		Increase (Decrease)		% Change
United States	32,061	59.3	%	33,152	62.8	%	(1,091	)	(3.3	)%
International	21,964	40.7	%	19,641	37.2	%	2,323		11.8
Harley-Davidson motorcycle units	54,025	100.0	%	52,793	100.0	%	1,232		2.3	%
Touring motorcycle units	23,011	42.6	%	18,483	35.0	%	4,528		24.5	%
Custom motorcycle units(a)	19,111	35.4	%	20,719	39.2	%	(1,608	)	(7.8	)
Sportster motorcycle units	11,903	22.0	%	13,591	25.8	%	(1,688	)	(12.4	)
Harley-Davidson motorcycle units	54,025	100.0	%	52,793	100.0	%	1,232		2.3	%

(a) Custom motorcycle units, as used in this table, include Dyna, Softail, VRSC and CVO models.

The Company shipped 54,025 Harley-Davidson motorcycles worldwide during the third quarter of 2013, which was 2.3%higher than the third quarter of 2012 and in line with Company expectations. Shipments of touring motorcycles as a percentage of total shipments increased in the third quarter of 2013 compared to the prior year while shipments of custom and Sportster motorcycles as a percentage of total shipments decreased. The increase in touring motorcycle shipments as a percentage of total shipments was driven by the initial shipments of model year 2014 Rushmore motorcycles and the fact that 2012 shipments were negatively impacted by lower production of touring motorcycles due to the implementation of a new ERP system at the York facility.

U.S. dealer retail inventory of Harley-Davidson motorcycles was approximately 4,200 units higher at the end of the third quarter of 2013 compared to the same time last year. The Company believes the overall U.S. retail inventory of Harley-Davidson motorcycles for the first three quarters of 2013 was approaching the levels it believes are aligned with its flexible manufacturing strategy. The Company continues to expect retail inventory, on a year-over-year basis, to be lower in the fourth quarter of 2013 in advance of the Company's anticipated implementation of surge manufacturing capabilities at its Kansas City facility in 2014.⁽¹⁾ 

Segment Results

The following table includes the condensed statements of operations for the Motorcycles segment (in thousands):

	Three months ended
	September 29, 2013		September 30, 2012		Increase (Decrease)			% Change
Revenue:
Motorcycles	$	857,029	$	773,979	$	83,050		10.7	%
Parts & Accessories	250,153		233,749		16,404			7.0
General Merchandise	66,134		75,632		(9,498		)	(12.6	)
Other	6,968		5,908		1,060			17.9
Total revenue	1,180,284		1,089,268		91,016			8.4
Cost of goods sold	763,969		711,364		52,605			7.4
Gross profit	416,315		377,904		38,411			10.2
Selling & administrative expense	204,514		192,351		12,163			6.3
Engineering expense	35,684		31,631		4,053			12.8
Restructuring expense	646		9,170		(8,524		)	(93.0	)
Operating expense	240,844		233,152		7,692			3.3
Operating income from motorcycles	$	175,471	$	144,752	$	30,719		21.2	%

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The following table includes the estimated impact of significant factors affecting the comparability of net revenue, cost of goods sold and gross profit from the third quarter of 2012 to the third quarter of 2013 (in millions):

	Net Revenue			Cost of Goods Sold			Gross Profit
September 30, 2012	$	1,089.3		$	711.4		$	377.9
Volume	35.7			30.9			4.8
Price, net of related cost	33.5			23.4			10.1
Foreign currency exchange rates and hedging	(10.5		)	(6.6		)	(3.9		)
Shipment mix	32.3			14.8			17.5
Raw material prices	—			(0.6		)	0.6
Manufacturing costs	—			(9.3		)	9.3
Total	91.0			52.6			38.4
September 29, 2013	$	1,180.3		$	764.0		$	416.3

The following factors affected the comparability of net revenue, cost of goods sold and gross profit from the third quarter of 2012 to the third quarter of 2013:

• Volume increases were driven by the increase in wholesale motorcycle shipments and parts and accessories sales, partially offset by lower sales volumes for General Merchandise which resulted from strong revenue in the prior year which benefited from sales of 110th anniversary apparel and accessories that began in the third quarter of 2012.

• On average, wholesale prices for the Company’s 2013 and 2014 model-year motorcycles are higher than the prior model-years resulting in the favorable impact on revenue during the period. The impact of revenue favorability resulting from model year price increases on gross profit was partially offset by an increase in cost related to the significant additional content added to the 2014 model year motorcycles. As discussed more fully above, the Company expects that 2014 model year price increases, net of related costs, will be dilutive to motorcycle gross margin percent by approximately 0.5% through the end of the 2014 model year.⁽¹⁾ 

• Changes in foreign currency exchange rates during the third quarter of 2013 resulted in a negative impact on net revenue and gross profit primarily as a result of devaluation in the Japanese yen, Australian dollar and Brazilian real. The Company continues to expect downward pressure on gross margins in the fourth quarter of 2013 as a result of currency devaluation.⁽¹⁾

• Shipment mix changes positively impacted net revenue and gross profit primarily as a result of a positive mix shift between motorcycle families as compared to the same period last year.

• Raw material prices were slightly lower in the third quarter of 2013 relative to the third quarter of 2012.

• Manufacturing costs in the third quarter of 2013 benefited from restructuring savings and approximately $8 million lower temporary inefficiencies partially offset by approximately $7 million of higher start-up costs for the new model year driven by the significant level of content added to the new models.

Operating expenses were higher during the third quarter of 2013 compared to the third quarter of 2012 driven by higher selling and administrative and engineering expenses, partially offset by lower restructuring expense. The higher selling and administrative and engineering expenses were primarily due to higher spending in support of the Company's growth initiatives and were also impacted by incremental spending to support the Rushmore product launch and the Company's 110th anniversary activities. The Company continues to expect selling and administrative and engineering expenses to be higher on a year-over-year basis in 2013, but decrease as a percent of revenue.⁽¹⁾ This includes the impact in the fourth quarter of 2013 of a $4.9 million recall expense related to a voluntary recall announced by the Company in October 2013.⁽¹⁾  

The restructuring costs in the third quarter of 2013 were lower as the Company exits its restructuring activities. For further information regarding the Company’s previously announced restructuring activities, refer to Note 4 of Notes to Condensed Consolidated Financial Statements.

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Financial Services Segment

Segment Results

The following table includes the condensed statements of operations for the Financial Services segment (in thousands):

	Three months ended
	September 29, 2013		September 30, 2012		(Decrease) Increase			% Change
Interest income	$	148,164	$	147,638	$	526		0.4	%
Other income	15,270		13,389		1,881			14.0
Financial services revenue	163,434		161,027		2,407			1.5
Interest expense	39,944		46,231		(6,287		)	(13.6	)
Provision for credit losses	14,604		9,069		5,535			61.0
Operating expenses	32,818		33,377		(559		)	(1.7	)
Financial services expense	87,366		88,677		(1,311		)	(1.5	)
Operating income from financial services	$	76,068	$	72,350	$	3,718		5.1	%

Interest expense for the third quarter of 2013 was lower due to a more favorable cost of funds, partially offset by higher average debt outstanding. The provision for credit losses increased $5.5 million in the third quarter of 2013 due primarily to increased retail credit losses. The increased retail credit losses include the impact of lower recovery values on repossessed motorcycles after the 2014 model year launch.

Changes in the allowance for credit losses on finance receivables were as follows (in thousands):

	Three months ended
	September 29, 2013			September 30, 2012
Balance, beginning of period	$	111,324		$	114,248
Provision for finance credit losses	14,604			9,069
Charge-offs	(23,708		)	(19,873		)
Recoveries	9,701			9,682
Balance, end of period	$	111,921		$	113,126

At September 29, 2013, the allowance for credit losses on finance receivables was $6.0 million for wholesale receivables and $105.9 million for retail receivables. At September 30, 2012, the allowance for credit losses on finance receivables was $7.3 million for wholesale receivables and $105.9 million for retail receivables.

HDFS’ periodic evaluation of the adequacy of the allowance for credit losses on finance receivables is generally based on HDFS’ past loan loss experience, known and inherent risks in the portfolio, current economic conditions and the estimated value of any underlying collateral.

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Results of Operations for the Nine Months EndedSeptember 29, 2013

Compared to the Nine Months EndedSeptember 30, 2012

Consolidated Results

	Nine months ended
(in thousands, except earnings per share)	September 29, 2013		September 30, 2012		Increase (Decrease)			% Change
Operating income from motorcycles & related products	$	809,897	$	662,375	$	147,522		22.3	%
Operating income from financial services	221,769		221,698		71			—
Operating income	1,031,666		884,073		147,593			16.7
Investment income	4,546		5,611		(1,065		)	(19.0	)
Interest expense	33,998		34,528		(530		)	(1.5	)
Income before income taxes	1,002,214		855,156		147,058			17.2
Provision for income taxes	343,630		301,870		41,760			13.8
Net income	$	658,584	$	553,286	$	105,298		19.0	%
Diluted earnings per share	$	2.93	$	2.40	$	0.53		22.1	%

Consolidated operating income was up 16.7% in the first nine months of 2013 led by an increase in operating income from the Motorcycles segment which improved by $147.5 million, or 22.3%, compared to the first nine months of 2012. Operating income for the Financial Services segment was flat for the first nine months of 2013 compared to the first nine months of 2012. Please refer to the “Motorcycles and Related Products Segment” and “Financial Services Segment” discussions following for a more detailed discussion of the factors affecting operating income.

The effective income tax rate for the first nine months of 2013 was 34.3% compared to 35.3% for the first nine months of 2012. The Company's 2013 effective tax rate was favorably impacted by the reinstatement of the U.S. Federal Research and Development tax credit with the enactment of the American Taxpayer Relief Act of 2012 at the beginning of 2013 and an adjustment of its valuation allowance on certain deferred tax assets. During the first nine months of 2013, the Company recorded the benefits of the Research and Development tax credit for the full year of 2012 and for the three quarters of 2013.

Diluted earnings per share was $2.93 in the first nine months of 2013, up 22.1% over the same period in the prior year. The increase in diluted earnings per share was driven primarily by the 19.0% increase in net income, but also benefited from lower diluted weighted average shares outstanding. Diluted weighted average shares outstanding decreased from 230.1 million in the first nine months of 2012 to 224.7 million in the first nine months of 2013, driven by the Company's repurchase of common stock. Please refer to "Liquidity and Capital Resources" for additional information concerning the Company's share repurchase activity.

Motorcycles Retail Sales and Registration Data

Worldwide independent dealer retail sales of Harley-Davidson motorcycles increased4.1% during the first nine months of 2013 compared to the first nine months of 2012. Retail sales of Harley-Davidson motorcycles increased4.1% in the United States and increased 4.2% internationally in the first nine months of 2013. The Company believes U.S. retail sales for the first nine months of 2013 were positively impacted by the launch of its 2014 model year motorcycles and improved availability of motorcycles in the third quarter which more than offset the adverse impact of weather experienced during the first half of 2013. International retail sales were adversely impacted by the difficult economic environment in Europe offset by growth in the Asia Pacific, Latin America region, and Canada. On an industry-wide basis, retail sales in the heavyweight (601+cc) portion of the market were up0.3% in the United States and down7.2% in Europe for the nine months ended September 30, 2013 when compared to the same period in 2012.

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Worldwide Harley-Davidson Motorcycle Retail Sales^(a) 

The following table includes retail unit sales of Harley-Davidson motorcycles:

	Nine months ended
	September 30, 2013	September 30, 2012	Increase (Decrease)		% Change
North America Region
United States	141,476	135,925	5,551		4.1	%
Canada	9,876	9,526	350		3.7
Total North America Region	151,352	145,451	5,901		4.1
Europe, Middle East and Africa Region (EMEA)
Europe(b)	30,291	31,667	(1,376	)	(4.3	)
Other	5,119	4,539	580		12.8
Total Europe Region	35,410	36,206	(796	)	(2.2	)
Asia Pacific Region
Japan	8,168	7,915	253		3.2
Other	11,609	9,859	1,750		17.8
Total Asia Pacific Region	19,777	17,774	2,003		11.3
Latin America Region	8,425	7,013	1,412		20.1
Total Worldwide Retail Sales	214,964	206,444	8,520		4.1	%

(a) Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning retail sales and this information is subject to revision.

(b) Includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

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Heavyweight Motorcycle Registration Data^(a) 

The following table includes industry retail motorcycle registration data:

	Nine months ended
	September 30, 2013	September 30, 2012	Decrease		% Change
United States(b)	255,987	255,199	788		0.3	%
	Nine months ended
	September 30, 2013	September 30, 2012	Decrease		% Change
Europe(c)	251,280	270,636	(19,356	)	(7.2	)%

(a) Heavyweight data includes street legal 601+cc models. Street legal 601+cc models include on-highway, dual purpose models and three-wheeled vehicles.

(b) United States industry data is derived from information provided by Motorcycle Industry Council (MIC). This third party data is subject to revision and update.

(c) Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle registration data includes 601+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency. This third-party data is subject to revision and update.

Motorcycles & Related Products Segment

Motorcycle Unit Shipments

The following table includes wholesale motorcycle unit shipments for the Motorcycles segment:

	Nine months ended
	September 29, 2013			September 30, 2012			Unit		Unit
	Units	Mix %		Units	Mix %		Increase (Decrease)		% Change
United States	139,814	65.4	%	131,119	65.4	%	8,695		6.6	%
International	74,039	34.6	%	69,439	34.6	%	4,600		6.6
Harley-Davidson motorcycle units	213,853	100.0	%	200,558	100.0	%	13,295		6.6	%
Touring motorcycle units	86,727	40.5	%	77,859	38.8	%	8,868		11.4	%
Custom motorcycle units(a)	84,728	39.6	%	78,430	39.1	%	6,298		8.0
Sportster motorcycle units	42,398	19.9	%	44,269	22.1	%	(1,871	)	(4.2	)
Harley-Davidson motorcycle units	213,853	100.0	%	200,558	100.0	%	13,295		6.6	%

(a) Custom motorcycle units, as used in this table, include Dyna, Softail, VRSC and CVO models.

The Company shipped 213,853 motorcycles worldwide during the first nine months of 2013, which was 6.6% higher than the first nine months of 2012. International shipments as a percentage of the total were the same as the first nine months of 2012. Shipments of touring motorcycles and custom motorcycles as a percentage of total shipments increased in the nine months of 2013 compared to the prior year while shipments of Sportster motorcycles as a percentage of total shipments declined. The increase in touring motorcycle shipments as a percentage of total shipments was driven by the initial shipments of model year 2014 Rushmore motorcycles and the fact that of 2012 shipments of touring motorcycles in the third quarter of 2012 were negatively impacted by lower production due to the implementation of a new ERP system at the York facility.

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Segment Results

The following table includes the condensed statements of operations for the Motorcycles segment (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012		Increase (Decrease)			% Change
Revenue:
Motorcycles	$	3,285,738		$	2,993,657	$	292,081		9.8	%
Parts & Accessories	703,779			698,381		5,398			0.8
General Merchandise	219,978			225,375		(5,397		)	(2.4	)
Other	16,503			14,271		2,232			15.6
Total revenue	4,225,998			3,931,684		294,314			7.5
Cost of goods sold	2,688,371			2,533,453		154,918			6.1
Gross profit	1,537,627			1,398,231		139,396			10.0
Selling & administrative expense	619,409			616,070		3,339			0.5
Engineering expense	110,034			92,945		17,089			18.4
Restructuring (benefit) expense	(1,713		)	26,841		(28,554		)	NM
Operating expense	727,730			735,856		(8,126		)	(1.1	)
Operating income from motorcycles	$	809,897		$	662,375	$	147,522		22.3	%

The following table includes the estimated impact of significant factors affecting the comparability of net revenue, cost of goods sold and gross profit from the first nine months of 2012 to the first nine months of 2013 (in millions):

	Net Revenue			Cost of Goods Sold			Gross Profit
September 30, 2012	$	3,931.7		$	2,533.5		$	1,398.2
Volume	219.2			155.5			63.7
Price, net of related costs	56.7			23.9			32.8
Foreign currency exchange rates and hedging	(37.9		)	(5.5		)	(32.4		)
Shipment mix	56.3			24.3			32.0
Raw material prices	—			(5.1		)	5.1
Manufacturing costs	—			(38.2		)	38.2
Total	294.3			154.9			139.4
September 29, 2013	$	4,226.0		$	2,688.4		$	1,537.6

The following factors affected the comparability of net revenue, cost of goods sold and gross profit from the first nine months of 2012 to first nine months of 2013:

• Volume increases were driven by the increase in wholesale motorcycle shipments.

• On average, wholesale prices for the Company’s 2013 and 2014 model-year motorcycles are higher than the prior model years resulting in the favorable impact on revenue during the period. The impact of revenue favorability resulting from model year price increases on gross profit was partially offset by an increase in cost related to the significant additional content added to the 2014 model year motorcycles.

• Changes in foreign currency exchange rates during the first three quarters of 2013 resulted in a negative impact on net revenue and gross profit primarily as a result of devaluation in the Euro, Japanese yen, Australian dollar and Brazilian real.

• Shipment mix changes positively impacted net revenue and gross profit as a result of a positive mix shift between motorcycle families as compared to the same period last year.

• Raw material prices were lower in the first nine months of 2013 relative to the first nine months of 2012.

• Manufacturing costs in the first nine months of 2013 benefited from restructuring savings, $16 million of lower temporary inefficiencies and a lower fixed cost per unit as a result of higher production volumes compared to the same period in 2012, partially offset by approximately $7 million of higher start-up costs for the new model year driven by the significant level of content added to the new models.

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The net decrease in operating expense was primarily due to lower restructuring expense related to the Company's previously announced restructuring activities partially offset by higher selling and administrative and engineering expense. The higher selling and administrative and engineering expenses were primarily due to higher spending in support of the Company’s growth initiatives, and were also impacted by incremental spending to support the Rushmore product launch and the Company's 110th anniversary activities, partially offset by lower warranty and recall expense. The lower restructuring costs include a reserve release of approximately $5 million in the second quarter of 2013 recorded in connection with the decision to retain a limited operation at the New Castalloy facility, as described in "Restructuring Activities" above. For further information regarding the Company’s previously announced restructuring activities, refer to Note 4 of Notes to Condensed Consolidated Financial Statements.

Financial Services Segment

Segment Results

The following table includes the condensed statements of operations for the Financial Services segment (in thousands):

	Nine months ended
	September 29, 2013		September 30, 2012		(Decrease) Increase			% Change
Interest income	$	436,895	$	436,447	$	448		0.1	%
Other income	46,345		41,515		4,830			11.6
Financial services revenue	483,240		477,962		5,278			1.1
Interest expense	126,004		146,199		(20,195		)	(13.8	)
Provision for credit losses	39,011		12,823		26,188			204.2
Operating expenses	96,456		97,242		(786		)	(0.8	)
Financial services expense	261,471		256,264		5,207			2.0
Operating income from financial services	$	221,769	$	221,698	$	71		—	%

Interest expense for the first nine months of 2013 was lower due to a more favorable cost of funds, partially offset by a $4.9 million loss on the extinguishment of medium-term notes during the nine months ended September 29, 2013. The provision for credit losses increased $26.2 million in the first nine months of 2013 due to higher retail credit losses resulting from lower recoveries as a result of fewer charge-offs in prior periods. In addition, the provision for credit losses in 2012 benefited from $14.5 million in credit loss allowance releases as compared to $1.9 million in the first nine months of 2013.

Annualized losses on HDFS' retail motorcycle loans were 0.88% through September 29, 2013 compared to 0.65% through September 30, 2012. The 30-day delinquency rate for retail motorcycle loans at September 29, 2013 decreased to 3.11% from 3.24% at September 30, 2012. Annualized losses were higher due to lower recoveries as a result of fewer charge-offs in prior periods. Additionally, the increase in the retail motorcycle annualized losses reflects HDFS' actions to modestly increase approval rates and fund additional loans we believe are prudently structured, coupled with changing consumer behavior related to taking on additional debt.

Changes in the allowance for credit losses on finance receivables were as follows (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012
Balance, beginning of period	$	107,667		$	125,449
Provision for credit losses	39,011			12,823
Charge-offs	(67,117		)	(62,779		)
Recoveries	32,360			37,633
Balance, end of period	$	111,921		$	113,126

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Other Matters

Contractual Obligations

The Company has updated its Contractual Obligations table as of September 29, 2013 to reflect the new projected principal and interest payments for the remainder of 2013 and beyond as follows (in thousands):

	2013		2014 - 2015		2016 - 2017		Thereafter		Total
Principal payments on debt	$	489,373	$	2,168,001	$	1,512,381	$	1,013,754	$	5,183,509
Interest payments on debt	47,405		299,615		151,676		29,142		527,838
	$	536,778	$	2,467,616	$	1,664,057	$	1,042,896	$	5,711,347

Interest obligations for floating rate instruments, as calculated above, assume rates in effect at September 29, 2013 remain constant.

As of September 29, 2013, there have been no other material changes to the Company’s summary of expected payments for significant contractual obligations under the caption “Contractual Obligations” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Commitments and Contingencies

The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining required reserves related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. The required reserves are monitored on an ongoing basis and are updated based on new developments or new information in each matter.

Environmental Protection Agency Notice

In December 2009, the Company received formal, written requests for information from the United States Environmental Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels, (ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written responses to the EPA’s inquiry and has engaged in discussions with the EPA. Since that time, the EPA has delivered various additional requests for information to which the Company has responded. It is possible that a result of the EPA’s investigation will be some form of enforcement action by the EPA that will seek a fine or other relief. However, at this time the Company does not know and cannot reasonably estimate the impact of any remedies the EPA might seek.

York Environmental Matters:

The Company is involved with government agencies and groups of potentially responsible parties in various environmental matters, including a matter involving the cleanup of soil and groundwater contamination at its York, Pennsylvania facility. The York facility was formerly used by the U.S. Navy and AMF prior to the purchase of the York facility by the Company from AMF in 1981. Although the Company is not certain as to the full extent of the environmental contamination at the York facility, it has been working with the Pennsylvania Department of Environmental Protection (PADEP) since 1986 in undertaking environmental investigation and remediation activities, including an ongoing site-wide remedial investigation/feasibility study (RI/FS). In January 1995, the Company entered into a settlement agreement (the Agreement) with the Navy. The Agreement calls for the Navy and the Company to contribute amounts into a trust equal to 53% and 47%, respectively, of future costs associated with environmental investigation and remediation activities at the York facility (Response Costs). The trust administers the payment of the Response Costs incurred at the York facility as covered by the Agreement.

In February 2002, the Company was advised by the EPA that it considers some of the Company’s remediation activities at the York facility to be subject to the EPA’s corrective action program under the Resource Conservation and Recovery Act (RCRA) and offered the Company the option of addressing corrective action under a RCRA facility lead agreement. In July 2005, the York facility was designated as the first site in Pennsylvania to be addressed under the “One Cleanup Program.” The program provides a more streamlined and efficient oversight of voluntary remediation by both PADEP and EPA and will be carried out consistent with the Agreement with the Navy. As a result, the RCRA facility lead agreement has been superseded.

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The Company estimates that its share of the future Response Costs at the York facility will be approximately $3.4 million and has established a reserve for this amount which is included in accrued liabilities in the Condensed Consolidated Balance Sheets⁽¹⁾. As noted above, the RI/FS is still underway and given the uncertainty that exists concerning the nature and scope of additional environmental investigation and remediation that may ultimately be required under the RI/FS or otherwise at the York facility, we are unable to make a reasonable estimate of those additional costs, if any, that may result.

The estimate of the Company’s future Response Costs that will be incurred at the York facility is based on reports of independent environmental consultants retained by the Company, the actual costs incurred to date and the estimated costs to complete the necessary investigation and remediation activities. Response Costs are expected to be paid primarily over a period of several years ending in 2017 although certain Response Costs may continue for some time beyond 2017.

Product Liability Matters:

The Company is involved in product liability lawsuits related to the operation of its business. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and that product liability will not have a material adverse effect on the Company’s consolidated financial statements.

Liquidity and Capital Resources as of September 29, 2013⁽¹⁾ 

Over the long-term, the Company expects that its business model will continue to generate cash that will allow it to invest in the business, fund future growth opportunities and return value to shareholders. The Company believes the Motorcycles operations will continue to be primarily funded through cash flows generated by operations. The Financial Services operations have been funded with unsecured debt, unsecured commercial paper, asset-backed commercial paper conduit facilities and committed unsecured bank facilities and through the term asset-backed securitization market.

The Company’s strategy is to maintain a minimum of twelve months of its projected liquidity needs through a combination of cash and marketable securities and availability under credit facilities. The following table summarizes the Company’s cash and marketable securities and availability under credit facilities (in thousands):

	September 29, 2013
Cash and cash equivalents	$	1,029,955
Marketable securities	122,234
Total cash and cash equivalents and marketable securities	1,152,189
Global credit facilities	955,540
Asset-backed U.S. commercial paper conduit facility(a)	600,000
Asset-backed Canadian commercial paper conduit facility(b)	13,516
Total availability under credit facilities	1,569,056
Total	$	2,721,245

(a) The U.S. commercial paper conduit facility expires on September 12, 2014. The Company anticipates that it will renew this facility prior to expiration.⁽¹⁾ 

(b) The Canadian commercial paper conduit facility expires on June 30, 2014 and is limited to Canadian denominated borrowings. The Company anticipates that it will renew this facility prior to expiration.⁽¹⁾ 

The Company recognizes that it must continue to monitor and adjust to changes in the lending environment for its Financial Services operations. The Company intends to continue with a diversified funding profile through a combination of short-term and long-term funding vehicles and to pursue a variety of sources to obtain cost-effective funding. The Financial Services operations could be negatively affected by higher costs of funding and increased difficulty of raising, or potential unsuccessful efforts to raise, funding in the short-term and long-term capital markets. These negative consequences could in turn adversely affect the Company’s business and results of operations in various ways, including through higher costs of capital, reduced funds available through its Financial Services operations to provide loans to independent dealers and their retail customers, and dilution to existing shareholders through the use of alternative sources of capital.

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Cash Flow Activity

The following table summarizes the cash flow activity for the periods indicated (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012
Net cash provided by operating activities	$	825,103		$	712,498
Net cash used by investing activities	(539,043		)	(274,904		)
Net cash used by financing activities	(312,485		)	(162,795		)
Effect of exchange rate changes on cash and cash equivalents	(11,758		)	(6,608		)
Net (decrease) increase in cash and cash equivalents	$	(38,183	)	$	268,191

Operating Activities

The increase in cash provided by operating activities for the first nine months of 2013 compared to the first nine months of 2012 was primarily due to increased earnings and favorable changes in working capital. The favorable change in working capital was due in part to the utilization of a prepaid income tax balance during the first nine months of 2013 that was established in 2012. In addition, cash provided by operating activities was impacted in both 2013 and 2012 by voluntary contributions to the Company’s pension plans of $175.0 million and $200.0 million, respectively. No additional contributions to qualified pension plans are required or planned in 2013⁽¹⁾. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.

Investing Activities

The Company’s investing activities consist primarily of capital expenditures, net changes in finance receivables and short-term investment activity. Capital expenditures were $111.7 million in the first nine months of 2013 compared to $95.3 million in the same period last year. Net cash flows from finance receivables for the first nine months of 2013 were $248.6 millionlower than in the same period last year as a result of an increase in retail motorcycle loan originations during the first nine months of 2013. A net increase in cash in-flows related to marketable securities during the first nine months of 2012 resulted in investing cash flows in the first nine months of 2013 that were approximately $6 million lower by comparison.

Financing Activities

The Company’s financing activities consist primarily of share repurchases, dividend payments and debt activity. Cash outflows from share repurchases were $302.2 million in the first nine months of 2013 compared to $258.0 million for the same period last year. Share repurchases during the first nine months of 2013 included 5.5 million shares of common stock related to discretionary share repurchases as well as shares of common stock that employees surrendered to satisfy withholding taxes in connection with the vesting of restricted stock awards. As of September 29, 2013, there were 11.0 million shares remaining on a board-approved share repurchase authorizations.

The Company paid dividends of $0.630 and $0.465 per share totaling $140.8 million and $106.6 million during the first nine months of 2013 and 2012, respectively.

Financing cash flows related to debt activity resulted in net cash inflows of $79.2 million in the first nine months of 2013 compared to net cash inflows of $136.8 million in the first nine months of 2012. The Company’s total outstanding debt consisted of the following (in thousands):

	September 29, 2013		September 30, 2012
Unsecured commercial paper	394,460		404,693
Asset-backed Canadian commercial paper conduit facility	180,584		176,855
Medium-term notes	2,858,809		3,297,687
Senior unsecured notes	303,000		303,000
Term asset-backed securitization debt	1,446,656		1,692,065
Total debt	$	5,183,509	$	5,874,300

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To access the debt capital markets, the Company relies on credit rating agencies to assign short-term and long-term credit ratings. Generally, lower credit ratings result in higher borrowing costs and reduced access to debt capital markets. A credit rating agency may change or withdraw the Company’s ratings based on its assessment of the Company’s current and future ability to meet interest and principal repayment obligations. The Company’s short-term debt ratings affect its ability to issue unsecured commercial paper. The Company’s short- and long-term debt ratings as of September 29, 2013 were as follows:

	Short-Term	Long-Term	Outlook
Moody’s	P2	Baa1	Positive
Standard & Poor’s	A2	A-	Stable
Fitch	F2	A-	Positive

Global Credit Facilities – On April 13, 2012, the Company, along with HDFS, entered into a $675.0 million five-year credit facility that matures in April 2017. The Company and HDFS also have a $675.0 million four-year credit facility which matures in April 2015. The five-year credit facility and the four-year credit facility (together, the Global Credit Facilities) bear interest at various variable interest rates, which may be adjusted upward or downward depending on certain criteria, such as credit ratings. The Global Credit Facilities also require the Company to pay a fee based upon the average daily unused portion of the aggregate commitments under the Global Credit Facilities. The Global Credit Facilities are committed facilities and primarily used to support HDFS’ unsecured commercial paper program.

Unsecured Commercial Paper – Subject to limitations, HDFS could issue unsecured commercial paper of up to $1.35 billion as of September 29, 2013 supported by the Global Credit Facilities. Outstanding unsecured commercial paper may not exceed the unused portion of the Global Credit Facilities. Maturities may range up to 365 days from the issuance date. HDFS intends to repay unsecured commercial paper as it matures with additional unsecured commercial paper or through other means, such as borrowing under the Global Credit Facilities, borrowing under its asset-backed U.S. commercial paper conduit facility or through the use of operating cash flow.⁽¹⁾ 

Medium-Term Notes – The Company had the following medium-term notes (collectively, the Notes) issued and outstanding at September 29, 2013 (in thousands):

Principal Amount	Rate	Issue Date	Maturity Date
$500,000	5.75%	November 2009	December 2014
$600,000	1.15%	September 2012	September 2015
$450,000	3.875%	March 2011	March 2016
$400,000	2.70%	January 2012	March 2017
$910,511	6.80%	May 2008	June 2018

The Notes provide for semi-annual interest payments and principal due at maturity. During the second quarter of 2013, HDFS repurchased an aggregate of $23.0 million of its 6.80% medium-term notes which mature in June 2018. As a result, HDFS recognized in financial services interest expense $4.9 million in loss on the extinguishment of debt, which included unamortized discounts and fees. Unamortized discounts on the Notes reduced the outstanding balance by $1.7 million and $2.4 million at September 29, 2013 and September 30, 2012, respectively.

Senior Unsecured Notes – In February 2009, the Company issued $600.0 million of senior unsecured notes in an underwritten offering. The senior unsecured notes provide for semi-annual interest payments and principal due at maturity. The senior unsecured notes mature in February 2014 and have an annual interest rate of 15%. During the fourth quarter of 2010, the Company repurchased $297.0 million of the $600.0 million senior unsecured notes at a price of $380.8 million.

Asset-Backed Canadian Commercial Paper Conduit Facility – In June 2013, HDFS amended its Canadian bank-sponsored asset-backed commercial paper conduit facility (Canadian Conduit). The amended agreement has terms that are similar to those of the original agreement, entered into in August 2012, and is for the same amount. Under the agreement, the Canadian Conduit is contractually committed, at HDFS' option, to purchase from HDFS eligible Canadian retail motorcycle finance receivables for proceeds up to C$200 million. The terms for this facility provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$200 million. There is no amortization schedule; however, the debt is reduced monthly as available collections on the

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related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. Unless earlier terminated or extended by mutual agreement of HDFS and the lenders, as of September 29, 2013, the Canadian Conduit has an expiration date of June 30, 2014. The contractual maturity of the debt is approximately 5 years.

HDFS maintains effective control over any transferred assets and therefore the transactions do not meet accounting sale requirements under ASC Topic 860, "Transfers and Servicing". As such, any transactions are treated as secured borrowings.

During the third quarter of 2013, HDFS transferred $26.3 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $23.1 million. During the second quarter of 2013, HDFS transferred $53.8 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $47.1 million. During the third quarter of 2012, HDFS transferred $209.1 million of Canadian retail motorcycle finance receivables to the Canadian conduit for proceeds of $183.0 million. The transferred assets are restricted as collateral for the payment of the debt. At September 29, 2013, $201.4 million of finance receivables, net and $13.1 million of cash were restricted as collateral for the payment of $180.6 million of debt. Approximately $39.8 million of the debt was classified as current at September 29, 2013.

Asset-Backed U.S. Commercial Paper Conduit Facility VIE – In September 2013, HDFS amended and restated its revolving asset-backed U.S. commercial paper conduit facility (U.S. Conduit) which provides for a total aggregate commitment of $600.0 million. The agreement has terms that are similar to those of the prior agreement and is for the same amount. At September 29, 2013, HDFS had no outstanding borrowings under the U.S. Conduit.

This debt provides for interest on outstanding principal based on prevailing commercial paper rates, or LIBOR plus a specified margin to the extent the advance is not funded by a conduit lender through the issuance of commercial paper. The U.S. Conduit also provides for an unused commitment fee based on the unused portion of the total aggregate commitment of $600.0 million. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivable collateral are applied to outstanding principal. Upon expiration of the U.S. Conduit, any outstanding principal will continue to be reduced monthly through available collections. Unless earlier terminated or extended by mutual agreement of HDFS and the lenders, as of September 29, 2013, the U.S. Conduit expires September 12, 2014.

HDFS is considered to have the power over the significant activities of the U.S. Conduit VIE due to its role as servicer. Servicing fees are typically not considered potentially significant variable interests in a VIE. However, HDFS retains a residual interest in the VIE in the form of a debt security which gives HDFS the right to receive benefits that could be potentially significant to the VIE. Therefore, the Company is the primary beneficiary and consolidates this VIE within its consolidated financial statements.

Term Asset-Backed Securitization VIEs – For all of the term asset-backed securitization transactions, HDFS transferred U.S. retail motorcycle finance receivables to separate VIEs, which in turn issued secured notes, with various maturities and interest rates to investors. All of the notes held by the VIEs are secured by future collections of the purchased U.S. retail motorcycle finance receivables. The U.S. retail motorcycle finance receivables included in the term asset-backed securitization transactions are not available to pay other obligations or claims of HDFS’ creditors until the associated debt and other obligations are satisfied. Cash and cash equivalent balances held by the VIEs are used only to support the securitizations. There is no amortization schedule for the secured notes; however, the debt is reduced monthly as available collections on the related retail motorcycle finance receivables are applied to outstanding principal. The secured notes’ contractual lives have various maturities ranging from 2013 to 2020.

HDFS is considered to have the power over the significant activities of its term asset-backed securitization VIEs due to its role as servicer. Servicing fees are typically not considered potentially significant variable interests in a VIE. However, HDFS retains a residual interest in the VIEs in the form of a debt security, which gives HDFS the right to receive benefits that could be potentially significant to the VIEs. Therefore, the Company is the primary beneficiary and consolidates all of these VIEs within its consolidated financial statements.

During the second quarter of 2013, the Company issued $650.0 million of secured notes through one term asset-backed securitization transaction.

During the third quarter of 2012, the Company issued $675.3 million of secured notes through one term asset-backed securitization transaction. During the second quarter of 2012, the Company issued $89.5 million of secured notes through the sale of notes that had been previously retained as part of certain 2009 and 2011 term asset-backed

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securitization transactions. These notes were sold at a premium. At September 29, 2013 and September 30, 2012, the unaccreted premium associated with these notes was $0.5 million and $1.5 million, respectively. There was no additional term asset-backed securitization activity for the nine months ended September 29, 2013 or September 30, 2012.

As of September 29, 2013, the assets of the VIEs totaled $2.07 billion, of which $1.88 billion of finance receivables, net and $181.2 million of cash were restricted as collateral for the payment of $1.45 billion of obligations under the secured notes. Approximately $378.5 million of the obligations under the secured notes were classified as current at September 29, 2013, based on the contractual maturities of the restricted finance receivables.

Intercompany Borrowing – During 2012, HDFS had a revolving credit line with the Company whereby HDFS could borrow up to $210.0 million from the Company at a market interest rate. HDFS had no outstanding borrowings owed to the Company under this agreement at any time in 2012. This agreement was terminated during the first quarter of 2013.

During 2013, HDFS and the Company entered into the following term loan agreements under which HDFS borrowed from the Company (in thousands):

Principal Amount	Issue Date	Maturity Date
$300,000	March 2013	April 2013 *
$100,000	September 2013	November 2013
$300,000	June 2013	April 2014
$150,000	September 2013	April 2014

* This loan was repaid on or before the Maturity date.

The term loans provide for monthly interest based on the prevailing commercial paper rates and principal due at maturity or upon demand by the Company. The term loan balances are eliminated in the Company’s consolidated financial statements.

Support Agreement - The Company has a support agreement with HDFS whereby, if required, the Company agrees to provide HDFS with financial support to maintain HDFS’ fixed-charge coverage at 1.25 and minimum net worth of $40.0 million. Support may be provided at the Company’s option as capital contributions or loans. Accordingly, certain debt covenants may restrict the Company’s ability to withdraw funds from HDFS outside the normal course of business. No amount has ever been provided to HDFS under the support agreement.

Operating and Financial Covenants – HDFS and the Company are subject to various operating and financial covenants related to the Global Credit Facilities and various operating covenants under the Notes and the U.S. and Canadian asset-backed commercial paper conduit facilities. The more significant covenants are described below.

The covenants limit the Company’s and HDFS’ ability to:

• incur certain additional indebtedness;

• assume or incur certain liens;

• participate in certain mergers, consolidations, liquidations or dissolutions; and

• purchase or hold margin stock.

Under the financial covenants of the Global Credit Facilities, the consolidated debt to equity ratio of HDFS cannot exceed 10.0 to 1.0. In addition, the Company must maintain a minimum interest coverage ratio of at least 2.5 to 1.0. No financial covenants are required under the Notes or the U.S. or Canadian asset-backed commercial paper conduit facilities.

At September 29, 2013, HDFS and the Company remained in compliance with all of the then existing covenants.

Cautionary Statements

The Company’s ability to meet the targets and expectations noted depends upon, among other factors, the Company's ability to:

(i) execute its business strategy,

(ii) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices,

(iii) manage through inconsistent economic conditions, including changing capital, credit and retail markets,

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(iv) implement and manage enterprise-wide information technology solutions, including solutions at its manufacturing facilities, and secure data contained in those systems,

(v) anticipate the level of consumer confidence in the economy,

(vi) continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead,

(vii) manage production capacity and production changes,

(viii) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations,

(ix) provide products, services and experiences that are successful in the marketplace,

(x) manage risks that arise through expanding international operations and sales,

(xi) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio,

(xii) successfully implement with our labor unions the agreements that we have executed with them that we believe will provide flexibility and cost-effectiveness to accomplish restructuring goals and long-term competitiveness,

(xiii) effectively execute the Company’s restructuring plans within expected costs and timing,

(xiv) manage supply chain issues, including any unexpected interruptions or price increases caused by raw material shortages or natural disasters,

(xv) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace,

(xvi) adjust to healthcare inflation and reform, pension reform and tax changes,

(xvii) retain and attract talented employees,

(xviii) manage the risks that our independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand,

(xix) continue to have access to reliable sources of capital funding and adjust to fluctuations in the cost of capital,

(xx) continue to develop the capabilities of its distributor and dealer network, and

(xxi) detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation.

In addition, the Company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission. Many of these risk factors are impacted by the current changing capital, credit and retail markets and the Company’s ability to manage through inconsistent economic conditions.

The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s independent dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company.

In addition, the Company’s independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

In recent years, HDFS has experienced historically low levels of retail credit losses and has no assurance that this will continue. The Company believes that HDFS' retail credit losses may increase over time due to changing consumer credit behavior and HDFS' efforts to increase prudently structured loan approvals in the sub-prime lending environment.

Refer to “Risk Factors” under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.

58

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2012 for a complete discussion of the Company's market risk. There have been no material changes to the market risk information included in the Company's Annual Report on Form 10-K for the year December 31, 2012.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

In accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934 (the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q, the Company’s management evaluated, with the participation of the Company’s Chairman, President and Chief Executive Officer and the Senior Vice President and Chief Financial Officer, the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based upon their evaluation of these disclosure controls and procedures, the Chairman, President and Chief Executive Officer and the Senior Vice President and Chief Financial Officer have concluded that the disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission rules and forms, and to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its Chairman, President and Chief Executive Officer and Senior Vice President and Chief Financial Officer, as appropriate, to allow timely decisions regarding disclosure.

Changes in Internal Controls

There was no change in the Company’s internal control over financial reporting during the quarter ended September 29, 2013 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1 – Legal Proceedings

The information required under this Item 1 of Part II is contained in Item 1 of Part I of the Quarterly report on Form 10-Q in Note 16 of the Notes to Condensed Consolidated Financial Statements, and such information is incorporated herein by reference in this Item 1 of Part II.

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

The following table contains detail related to the repurchase of common stock based on the date of trade during the quarter ended September 29, 2013:

2013 Fiscal Month	Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 1 to August 4	467,182	55	467,182	11,791,553
August 5 to September 1	663,238	59	663,238	11,357,474
September 2 to September 29	468,688	61	468,688	11,017,957
Total	1,599,108	58	1,599,108

(a) Includes discretionary share repurchases and shares of common stock that employees surrendered to satisfy withholding taxes in connection with the vesting of restricted stock awards

The Company has an authorization (originally adopted in December 1997) by its Board of Directors to repurchase shares of its outstanding common stock under which the cumulative number of shares repurchased, at the time of any repurchase, shall not exceed the sum of (1) the number of shares issued in connection with the exercise of stock options occurring on or after January 1, 2004 plus (2) one percent of the issued and outstanding common stock of the Company on January 1 of the current year, adjusted for any stock split. The Company did not make any discretionary share repurchases during the quarter ended September 29, 2013 under this authorization. As of September 29, 2013, 1.6 million shares remained under this authorization.

In December 2007, the Company’s Board of Directors separately authorized the Company to buy back up to 20.0 million shares of its common stock with no dollar limit or expiration date. The Company made discretionary shares repurchases of 1,586,530 shares during the quarter ended September 29, 2013 under this authorization. As of September 29, 2013, 9.4 million shares remained under this authorization.

From time to time, the Company may enter into a Rule 10b5-1 trading plan for the purpose of repurchasing shares under either the 1997 authorization or the 2007 authorization.

The Harley-Davidson, Inc. 2009 Incentive Stock Plan and predecessor stock plans permit participants to satisfy all or a portion of the statutory federal, state and local withholding tax obligations arising in connection with plan awards by electing to (a) have the Company withhold shares otherwise issuable under the award, (b) tender back shares received in connection with such award or (c) deliver other previously owned shares, in each case having a value equal to the amount to be withheld. During the third quarter of 2013, the Company acquired 12,578 shares of common stock that employees presented to the Company to satisfy withholding taxes in connection with the vesting of restricted stock awards.

Item 6 – Exhibits

Refer to the Exhibit Index on page 63 of this report.

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HARLEY-DAVIDSON, INC.
Date: 11/6/2013	/s/ John A. Olin
	John A. Olin
	Senior Vice President and
	Chief Financial Officer
	(Principal financial officer)

Date: 11/6/2013	/s/ Mark R. Kornetzke
	Mark R. Kornetzke
	Chief Accounting Officer
	(Principal accounting officer)

61

Harley-Davidson, Inc.

Exhibit Index to Form 10-Q

Exhibit No.	Description
4.1	Amendment No. 1 to 5-Year Credit Agreement, dated July 10, 2013, among the Company, certain subsidiaries of the Company, the financial institutions party thereto, and JPMorgan Chase Bank, N.A., including an Amended and Restated Canadian Syndicated Addendum, to the 5-Year Credit Agreement, dated as of April 13, 2012 among the Company, certain subsidiaries of the Company, the financial institutions parties thereto and JPMorgan Chase Bank, N.A., as among other things, global administrative agent
31.1	Chief Executive Officer Certification pursuant to Rule 13a-14(a)
31.2	Chief Financial Officer Certification pursuant to Rule 13a-14(a)
32.1	Written Statement of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. §1350
101	Financial statements from the quarterly report on Form 10-Q of Harley-Davidson, Inc. for the quarter ended September 29, 2013, filed on November 6, 2013, formatted in XBRL: (i) the Condensed Consolidated Statements of Operations; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; and (v) the Notes to Condensed Consolidated Financial Statements.

_______

62

EX-4.1

EXECUTION COPY

AMENDMENT NO. 1 TO 5-YEAR CREDIT AGREEMENT

Dated as of July 10, 2013

to

CREDIT AGREEMENT

Dated as of April 13, 2012

THIS AMENDMENT NO. 1 TO 5-YEAR CREDIT AGREEMENT (“Amendment”) is made as of July 10, 2013 (the “Effective Date”) by and among Harley-Davidson, Inc., a Wisconsin corporation, Harley-Davidson Financial Services, Inc., a Delaware corporation and Harley-Davidson Financial Services Canada, Inc., a corporation organized under the laws of Canada (collectively, the “Borrowers”), the financial institutions listed on the signature pages hereof and JPMorgan Chase Bank, N.A., as Global Administrative Agent (the “Administrative Agent”), under that certain 5-Year Credit Agreement dated as of April 13, 2012 by and among the Borrowers, the Lenders and the Administrative Agent (as amended prior to the date hereof, the “Credit Agreement”). Capitalized definitional terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.

WHEREAS, the Borrowers have requested that certain modifications be made to the Credit Agreement;

WHEREAS, the Borrowers, the Lenders party hereto and the Administrative Agent have agreed to amend the Credit Agreement on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrowers, the Lenders party hereto and the Administrative Agent hereby agree to the following amendment to the Credit Agreement.

1.Amendments to Credit Agreement. Effective as of the Effective Date but subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement is hereby amended as follows:

(a)The definition of “Agreed Currencies” appearing in Section 1.1 of the Credit Agreement is amended to delete the reference to “, Canadian Dollars” appearing therein.

(b)The definition of “Alternate Base Rate” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower” immediately following the reference to “Canadian Borrower” appearing therein.

(c)The definition of “Applicable Agreed Currency” appearing in Section 1.1 of the Credit Agreement is amended to delete the reference to “Canadian Dollars,” appearing therein.

CH1 7723948v.8

(d)The definition of “Business Day” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower” immediately following the reference to “Canadian Borrower” appearing in clause (ii) thereof.

(e)The definition of “CDOR Loan” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower” immediately following the reference to “Canadian Borrower” appearing therein.

(f)The definition of “Interest Period” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “or the applicable U.S. Borrower” immediately following the reference to “Canadian Borrower” appearing therein.

(g)The definition of “LIBOR” appearing in Section 1.1 of the Credit Agreement is amended to (i) delete all references to “British Bankers’ Association Interest Settlement Rate” appearing therein and to replace each such reference with the word “rate”, (ii) delete the reference to “(i)” in the proviso thereof and (iii) delete all of clause (ii) of the proviso thereof as well as the “, and” immediately preceding such clause (ii) of the proviso thereof.

(h)The definition of “Required Syndicated Canadian Banks” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower” immediately following the reference to “Canadian Borrower” appearing therein.

(i)The definition of “Syndicated Canadian Advance” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower” immediately following the reference to “Canadian Borrower” appearing therein.

(j)The definition of “Syndicated Canadian Borrowing” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower pursuant to Section 2.2 and the Syndicated Canadian Addendum” at the end of the sentence and immediately before the period therein.

(k)The definition of “Syndicated Canadian Loan” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower” immediately following the reference to “Canadian Borrower” appearing therein.

(l)The definition of “Syndicated Canadian Note” appearing in Section 1.1 of the Credit Agreement is amended to (i) add the phrase “or a U.S. Borrower” immediately following the first reference therein to “Canadian Borrower”, (ii) add the phrase “or such U.S. Borrower, as applicable,” immediately following the second reference therein to “Canadian Borrower” and (iii) add the phrase “or such U.S. Borrower, as applicable” immediately following the third reference therein to “Canadian Borrower”.

(m)The definition of “Syndicated Canadian Pro Rata Share” appearing in Section 1.1 of the Credit Agreement is amended to add the phrase “and the U.S. Borrowers” immediately following the reference to “Canadian Borrower” in clause (B) of the proviso therein.

(n)Clause (ii) of Section 2.1 of the Credit Agreement is amended to delete the phrase “Syndicated Global Loans in Canadian Dollars,” appearing therein.

(o)Subsection (A) of Section 2.2 of the Credit Agreement is amended to (i) add the phrase “and the U.S. Borrowers” immediately following the reference to “Canadian Borrower” appearing in the first and second sentences thereof, (ii) delete the reference to “, Eurocurrency Rate Loans” appearing

2

in the third parenthetical in the first sentence thereof, (iii) delete the reference to “and Syndicated Global Loans” appearing in the proviso at the end of the first sentence thereof and (iv) restate the third sentence thereof in its entirety to read as follows:

On the Termination Date (unless an earlier termination date shall be specified in or pursuant to the Syndicated Canadian Addendum), the outstanding principal balance of the Syndicated Canadian Loans (i) made to the Canadian Borrower shall be paid in full by the Canadian Borrower and (ii) made to the U.S. Borrowers shall be paid in full by the applicable U.S. Borrowers and, in each case, prior to the Termination Date (unless an earlier termination date shall be specified in or pursuant to the Syndicated Canadian Addendum), prepayments of the Syndicated Canadian Loans (i) made to the Canadian Borrower shall be made by the Canadian Borrower and (ii) made to the U.S. Borrowers shall be made by the applicable U.S. Borrowers, in each case if and to the extent required in Section 2.3(B).

(p)Subsection (B) of Section 2.2 of the Credit Agreement is amended to (i) add the phrase “or a U.S. Borrower” immediately following the first reference therein to “Canadian Borrower” and (ii) add the phrase “or such U.S. Borrower, as applicable,” immediately following the second and third references to “Canadian Borrower” appearing therein.

(q)Subsection (F) of Section 2.2 of the Credit Agreement is amended to add the phrase “and the U.S. Borrowers” immediately following the reference to “Canadian Borrower” appearing in the third sentence thereof.

(r)Subsection (A) of Section 2.3 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower, as applicable,” immediately following the reference to “Canadian Borrower” appearing therein.

(s)Clause (i) of Subsection (B) of Section 2.3 of the Credit Agreement is amended to (i) add the phrase “and/or one or more U.S. Borrowers” immediately following the reference to “Canadian Borrower” appearing therein and (ii) add the phrase “made to it” immediately after the phrase “prepay the Syndicated Canadian Loans” appearing therein.

(t)Clause (ii) of Subsection (B) of Section 2.3 of the Credit Agreement is amended to restate the first sentence thereof in its entirety to read as follows:

If at any time, other than as a result of fluctuations in currency exchange rates, the Dollar Amount of all Canadian Swing Line Loans denominated in Canadian Dollars and Syndicated Canadian Loans denominated in Canadian Dollars exceeds the Canadian Dollar Sublimit, the applicable Borrowers (as determined by Harley) shall, within five (5) Business Days’ notice from the Global Administrative Agent, prepay such Canadian Swing Line Loans or Syndicated Canadian Loans (subject to Section 3.4) in an aggregate amount such that after giving effect thereto the Dollar Amount of all remaining Canadian Swing Line Loans and Syndicated Canadian Loans, in each case to the extent denominated in Canadian Dollars, is less than or equal to the Canadian Dollar Sublimit.

(u)Clause (iii) of Subsection (B) of Section 2.3 of the Credit Agreement is amended to restate the reference to “the Dollar Amount of all Canadian Swing Line Loans, Syndicated Canadian Loans and Syndicated Global Loans” appearing in clause (b) thereof and appearing in clause (w) thereof to read as follows in each case: “the Dollar Amount of all Canadian Swing Line Loans and Syndicated Canadian Loans”.

3

(v)Clause (a) of Section 2.4 is amended to (i) add the phrase “or any U.S. Borrower” immediately following the first reference therein to “Canadian Borrower”, (ii) add the phrase “or such U.S. Borrower” immediately following the second reference therein to “Canadian Borrower” and (iii) add the phrase “and the U.S. Borrowers” immediately following the third reference therein to “Canadian Borrower”.

(w)Clause (b) of Section 2.5 of the Credit Agreement is amended to (i) add the phrase “or Dollars, as applicable” immediately following the phrase “in funds immediately available in Canadian Dollars” appearing therein and (ii) add the phrase “or the applicable U.S. Borrower” immediately following the reference to “Canadian Borrower” appearing therein.

(x)Clause (a) of Section 2.6 of the Credit Agreement is amended to (1) delete the second sentence of subsection (i) thereof, (2) add the phrase “or the applicable U.S. Borrower” after the phrase “The Canadian Borrower” appearing in subsection (ii) thereof, (3) delete the phrase “or Canadian Dollars” appearing in the second sentence of subsection (ii) thereof and (4) add the phrase “, plus the Floating Rate Margin” immediately before the period at the end of the fourth sentence of subsection (ii) thereof.

(y)Section 2.7 of the Credit Agreement is amended to add the phrase “or a U.S. Borrower” after the phrase “the Canadian Borrower” appearing therein.

(z)Clause (C) of Section 2.8 of the Credit Agreement is amended to delete the phrase “or Canadian Dollars” appearing in the proviso thereof.

(aa)Clause (b) of Section 2.9.2 of the Credit Agreement is amended to (i) delete the phrase “or Eurocurrency Rate Loans” appearing in the last sentence thereof and (ii) restate the second sentence thereof in its entirety to read as follows:

All Canadian Swing Line Loans made to the Borrowers shall be Canadian Prime Rate Loans or CDOR Loans.

(bb)Clause (d) of Section 2.9.2 of the Credit Agreement is amended to delete the phrase “, if such Canadian Swing Line Loans were made to the Canadian Borrower,” appearing therein.

(cc)Clause (b) of Section 8.3 of the Credit Agreement is hereby amended to add the phrase “the U.S. Borrowers,” immediately after the phrase “the Canadian Borrower,” appearing therein.

(dd)The first table of Schedule I of the Credit Agreement entitled “U.S. Borrower – Syndicate Borrowing – US or IBF Nassau” is amended to (i) restate the title thereof in its entirety to read as “U.S. Borrower – Syndicated Global Loans – US or IBF Nassau” and (ii) delete the row titled “Canadian $” appearing therein.

(ee)The second table of Schedule I of the Credit Agreement entitled “Canadian Borrower – Syndicate Borrowings in Canada” is amended to (i) restate the title thereof in its entirety to read as “Canadian Borrower or U.S. Borrowers – Syndicated Canadian Loans” and (ii) delete the row entitled “C$ LIBOR” appearing therein.

(ff)The first table of Schedule II of the Credit Agreement entitled “US Borrower – Swing Line Borrowing” is amended to (i) delete the row entitled “Canadian $ in

4

U.S.” (including the reference to “C$ LIBOR” therein) appearing therein and (ii) add the following row immediately after the row entitled “C$ Prime” appearing therein:

CDOR less than 30 days same day/12 noon Toronto C$500m/100m notice day Not applicable

2.Conditions of Effectiveness. The effectiveness of this Amendment is subject to the conditions precedent that the Administrative Agent shall have received (i) counterparts of this Amendment duly executed by each Borrower, the Required Lenders, each Syndicated Canadian Bank and the Administrative Agent and counterparts of the Consent and Reaffirmation attached hereto duly executed by the Guarantors, (ii) such other instruments, documents and legal opinions as are reasonably requested by the Administrative Agent and (iii) payment and/or reimbursement of the reasonable fees and expenses of the Administrative Agent and its affiliates (including, to the extent invoiced, reasonable fees and expenses of one U.S. counsel and one Canadian counsel for the Administrative Agent) in connection with this Amendment and the Loan Documents.

3.Representations and Warranties of each Borrower. Each Borrower hereby represents and warrants as follows:

(a)This Amendment and the Credit Agreement as amended hereby constitute the legal, valid and binding obligations of such Borrower enforceable against such Borrower in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and general principles of equity, regardless of whether the application of such principles is considered in a proceeding in equity or at law.

(b)As of the date hereof and giving effect to the terms of this Amendment, (i) no Default or Unmatured Default shall have occurred and be continuing and (ii) the representations and warranties of such Borrower contained in Article V of the Credit Agreement, as amended hereby, are true and correct in all material respects as of the Effective Date, except for representations and warranties made with reference solely to an earlier date, which representations and warranties shall be true and correct in all material respects as of such earlier date.

4.Reference to and Effect on the Credit Agreement.

(a)Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as amended hereby.

(b)Except as specifically amended above, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

(c)Except as specifically provided above, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.

5

5.Governing Law. This Amendment shall be construed in accordance with and governed by the internal laws of the State of New York, but giving effect to federal laws applicable to banks.

6.Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

7.Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

[Signature Pages Follow]

6

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

HARLEY-DAVIDSON, INC.,

as a U.S. Borrower

By:____________________________________
Name:

Title:

HARLEY-DAVIDSON FINANCIAL SERVICES, INC.,

as a U.S. Borrower

By:____________________________________
Name:

Title:

HARLEY-DAVIDSON FINANCIAL SERVICES CANADA, INC.,

as the Canadian Borrower

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

JPMORGAN CHASE BANK, N.A.,

individually as a Lender and as Administrative Agent and Global Swing Line Lender

By:____________________________________

Name: Richard W. Duker

Title: Managing Director

JPMORGAN CHASE BANK, N.A., TORONTO BRANCH,

as a Syndicated Canadian Bank

By:__________________________________

Name: Richard W. Duker

Title: Managing Director

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

CITIBANK, N.A.,

as a Lender

By:____________________________________
Name:

Title:

CITIBANK, N.A., CANADIAN BRANCH,

as a Syndicated Canadian Bank

By:___________________________________

Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

U.S. BANK NATIONAL ASSOCIATION,

as a Lender

By:____________________________________
Name:

Title:

U.S. BANK NATIONAL ASSOCIATION, CANADA BRANCH,

as a Syndicated Canadian Bank

By:___________________________________

Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

THE ROYAL BANK OF SCOTLAND PLC,

as a Lender

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

BMO HARRIS BANK N.A.,

as a Lender

By:____________________________________
Name:

Title:

BMO HARRIS BANK N.A.,

as a Syndicated Canadian Bank

By:___________________________________

Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

MIZUHO CORPORATE BANK, LTD., NEW YORK BRANCH,

as a Lender

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

THE BANK OF NEW YORK MELLON,

as a Lender

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as a Lender

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

FIFTH THIRD BANK,

as a Lender

By:____________________________________
Name:

Title:

FIFTH THIRD BANK,

as a Syndicated Canadian Bank

By:___________________________________

Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

GOLDMAN SACHS BANK USA,

as a Lender

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

TORONTO DOMINION BANK (NEW YORK) LLC,

as a Lender

By:____________________________________
Name:

Title:

THE TORONTO-DOMINION BANK,

as a Syndicated Canadian Bank

By:___________________________________

Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

BANCO BILBAO VIZCAYA ARGENTARIA S.A., NEW YORK BRANCH,

as a Lender

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

THE NORTHERN TRUST COMPANY,

as a Lender

By:____________________________________
Name:

Title:

Signature Page to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

CONSENT AND REAFFIRMATION

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 1 to the Credit Agreement dated as of April 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) by and among Harley-Davidson, Inc., Harley-Davidson Financial Services, Inc. and Harley-Davidson Financial Services Canada, Inc. (collectively, the “Borrowers”), the Lenders and JPMorgan Chase Bank, N.A., as Global Administrative Agent (the “Administrative Agent”), which Amendment No. 1 is dated as of July 10, 2013 and is by and among the Borrowers, the financial institutions listed on the signature pages thereof and the Administrative Agent (the “Amendment”). Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement. Without in any way establishing a course of dealing by the Administrative Agent or any Lender, each of the undersigned consents to the Amendment and reaffirms the terms and conditions of the Support Agreement (in the case of Harley), the Guarantee (in the case of the Guarantors) and any other Loan Document executed by it and acknowledges and agrees that each and every Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed. All references to the Credit Agreement contained in the above‑referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, modified or restated.

Dated July 10, 2013

[Signature Page Follows]

IN WITNESS WHEREOF, this Consent and Reaffirmation has been duly executed as of the day and year above written.

HARLEY-DAVIDSON FINANCIAL SERVICES, INC.

By:___________________________________

Name:

Title:

HARLEY-DAVIDSON FINANCIAL SERVICES INTERNATIONAL, INC.

By:___________________________________

Name:

Title:

HARLEY-DAVIDSON CREDIT CORP.

By:___________________________________

Name:

Title:

Signature Page to Consent and Reaffirmation to Amendment No. 1

5-Year Credit Agreement dated as of April 13, 2012

Harley-Davidson, Inc. et al

EXECUTION COPY

AMENDED AND RESTATED SYNDICATED CANADIAN ADDENDUM

FOR CANADIAN BORROWINGS

AMENDED AND RESTATED SYNDICATED CANADIAN ADDENDUM (the “Addendum”) dated as of July 10, 2013 to the Credit Agreement (as defined below).

RECITALS

WHEREAS, the Canadian Borrower, the Global Administrative Agent (as defined below) and the Syndicated Canadian Banks entered into the Syndicated Canadian Addendum dated as of April 13, 2012 (as previously amended, modified or supplemented, the “Previous Addendum”);

WHEREAS, Harley-Davidson, Inc., a Wisconsin corporation, Harley-Davidson Financial Services, Inc., a Delaware corporation and the Canadian Borrower (collectively, the “Borrowers”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as Global Administrative Agent (the “Global Administrative Agent”), are party to the Credit Agreement (as defined below), pursuant to which such Lenders have agreed to make certain Loans and other financial accommodations to the Borrowers thereunder;

WHEREAS, the Borrowers, the Lenders party thereto and the Global Administrative Agent have entered into the Amendment No. 1 to 5-Year Credit Agreement made as of the date hereof, to amend the Credit Agreement in certain respects; and

WHEREAS, the Borrowers are entering into this Addendum with the Global Administrative Agent and the Syndicated Canadian Banks to amend and restate the Previous Addendum and to facilitate the Syndicated Canadian Banks extending credit to the Borrowers in connection with the Credit Agreement.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1

Definitions

Defined Terms. Unless otherwise defined herein, terms defined in the Credit Agreement shall have the same meanings in this Addendum. As used in this Addendum, the following terms shall have the meanings specified below:

“BA Discount Rate” means, with respect to an issue of Bankers’ Acceptances with the same maturity date, (a) for a Syndicated Canadian Bank which is a Schedule I Lender, the average CDOR Rate for the appropriate term and (b) for a Syndicated Canadian Bank which is not a Schedule I Lender, the arithmetic average (rounded upwards to the nearest multiple of 0.01%) of the actual discount rates for Bankers’ Acceptances for such term accepted by the Schedule II Reference Banks established in accordance with their normal practices at or about 10:00 a.m. (Toronto time) on the date of issuance but not to exceed the actual rate of discount applicable to Bankers’ Acceptances established pursuant to clause (a) for the same Bankers Acceptance issue plus 10 basis points per annum.

CH1 7725199v.6

“BA Equivalent Loan” means a Loan made to any Borrower by a Non BA Lender evidenced by a Discount Note.

“Bankers’ Acceptance” means a bill of exchange, including a depository bill issued in accordance with the Depository Bills and Notes Act (Canada), denominated in Canadian Dollars, drawn by any Borrower and accepted by a Syndicated Canadian Bank and includes a Discount Note.

“Bankers’ Acceptance Advance” means an Advance by way of Bankers’ Acceptance Loans.

“Bankers’ Acceptance Loan” means a borrowing by way of the issuance of Bankers’ Acceptances.

“Bankers’ Acceptance Proceeds” means, for any Bankers’ Acceptance issued hereunder, an amount calculated on the applicable date that such Bankers’ Acceptance is accepted by multiplying:

the face amount of the Bankers’ Acceptance

by

the quotient obtained by dividing:

one

by

the sum of one plus the product of:

the BA Discount Rate applicable to the Bankers’ Acceptance; and

a fraction, the numerator of which is the number of days in the applicable Interest Period and the denominator of which is 365

with the quotient being rounded up or down to the fifth decimal place and .00005 being rounded up.

“Canadian Borrower” means Harley-Davidson Financial Services Canada, Inc., a corporation organized and existing under the laws of Canada, together with its successors and permitted assigns.

“CDOR Rate” means, on any day, with respect to a particular term as specified herein, the annual rate of discount or interest which is the arithmetic average of the discount rates for such term applicable to Canadian Dollar bankers’ acceptances identified as such on the Reuters Screen CDOR Page at approximately 10:00 a.m. on such day, or if such day is not a Business Day, then on the immediately preceding Business Day (as adjusted by the Global Administrative Agent after 10:00 a.m. to reflect any error in any posted rate or in the posted average annual rate). If the rate does not appear on the Reuters Screen CDOR Page as contemplated above, then the CDOR Rate on any day shall be calculated as the arithmetic average of the discount rates for such term applicable to Canadian Dollar bankers’ acceptances of, and as quoted by, the Schedule I Reference Banks, as of 10:00 a.m. on that day, or if that day is not a Business Day, then on the immediately preceding Business Day.

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“Credit Agreement” shall mean that certain 5-Year Credit Agreement dated as of April 13, 2012 entered into by and among Harley-Davidson, Inc., a Wisconsin corporation, Harley-Davidson Financial Services, Inc., a Delaware corporation, Harley-Davidson Financial Services Canada, Inc., a corporation organized and existing under the laws of Canada, Harley-Davidson Financial Services International Inc., a Delaware corporation, Harley-Davidson Credit Corp., a Nevada corporation, the institutions from time to time a party thereto as Lenders, JPMorgan Chase Bank, N.A., as the Global Administrative Agent and the Global Swing Line Lender, and Citibank, N.A., in its capacity as Syndication Agent, as the same may be amended, restated, supplemented or otherwise modified from time to time.

“Discount Note” means a non-interest bearing promissory note denominated in Canadian Dollars, issued by any Borrower to a Non BA Lender to evidence a BA Equivalent Loan, in a form to be agreed by such Non BA Lender, the applicable Borrower and the Global Administrative Agent from time to time.

“Non BA Lender” means a Syndicated Canadian Bank that cannot or does not as a matter of policy issue Bankers’ Acceptances.

“Schedule I Lender” means any Syndicated Canadian Bank named on Schedule I to the Bank Act (Canada).

“Schedule I Reference Banks” means any bank or banks named on Schedule I to the Bank Act (Canada) as may be agreed from time to time by the Global Administrative Agent and the Borrowers.

“Schedule II Lender” means any Syndicated Canadian Bank named on Schedule II or Schedule III to the Bank Act (Canada).

“Schedule II Reference Banks” means JPMorgan Chase Bank, N.A., Toronto Branch and any other bank named on Schedule II or Schedule III to the Bank Act (Canada) as may be agreed from time to time by the Global Administrative Agent and the Borrowers.

“Stamping Fee” is defined in Section 2.03(m) hereof.

“Syndicated Canadian Note” means a note substantially in the form of Schedule IV attached hereto, as further defined in the Credit Agreement.

“Syndicated Canadian Pro Rata Share” means, with respect to any Syndicated Canadian Bank, the percentage obtained by dividing (A) such Syndicated Canadian Bank’s Syndicated Canadian Commitment (in each case, as adjusted from time to time in accordance with the provisions hereof and of the Credit Agreement) by (B) the aggregate amount of the Syndicated Canadian Commitments.

Terms Generally. Wherever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. All references herein to Sections and Schedules shall be deemed references to Sections of and Schedules to this Addendum unless the context shall otherwise require.

ARTICLE 2

The Credits

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Syndicated Canadian Loans.

This Addendum (as the same may be amended, restated, waived, supplemented or otherwise modified from time to time) is the “Syndicated Canadian Addendum” as defined in the Credit Agreement and is, together with the borrowings made hereunder, subject in all respects to the terms and provisions of the Credit Agreement except to the extent that the terms and provisions of the Credit Agreement are modified by this Addendum. The Syndicated Canadian Banks party to this Addendum are set forth on Schedule I, as such Schedule may be amended or supplemented from time to time by the Global Administrative Agent. For purposes of this Addendum, “Syndicated Canadian Loans” shall include Bankers’ Acceptance Loans made pursuant to Section 2.03 hereof.

Any modifications to the interest payment dates, Interest Periods, interest rates and any other special provisions applicable to Syndicated Canadian Loans under this Addendum are set forth on Schedule II. If Schedule II states “Same as Credit Agreement” with respect to any item listed thereon, then the corresponding provisions of the Credit Agreement, without modification, shall govern this Addendum and the Syndicated Canadian Loans made pursuant to this Addendum in respect of such item.

Any special borrowing procedures or funding arrangements for Syndicated Canadian Loans under this Addendum, any provisions for the issuance of promissory notes to evidence the Syndicated Canadian Loans made hereunder and any additional information requirements applicable to Syndicated Canadian Loans under this Addendum are set forth on Schedule III. If no such special procedures, funding arrangements, provisions or additional requirements are set forth on Schedule III, then the corresponding procedures, funding arrangements, provisions and information requirements set forth in the Credit Agreement shall govern this Addendum.

Maximum Borrowing Amounts. The Syndicated Canadian Commitment for each Syndicated Canadian Bank is set forth on Schedule I hereto.

Bankers’ Acceptances.

Subject to the terms and conditions of the Credit Agreement and this Addendum, the undersigned Borrowers shall be entitled to receive the Bankers’ Acceptance Proceeds of Bankers’ Acceptances denominated in Canadian Dollars in accordance with the provisions of Section 2.2 of the Credit Agreement and this Addendum. For the purposes of this Addendum and the Credit Agreement, the full face amount of Bankers’ Acceptances, without discount, shall be used when calculations are made to determine the amount of Syndicated Canadian Loans outstanding. Each determination by the Global Administrative Agent of the Stamping Fee, the BA Discount Rate and the Bankers’ Acceptance Proceeds shall, in the absence of manifest error, be presumed correct.

Conditions Applicable to Bankers’ Acceptances Schedule II and Schedule III set forth additional conditions applicable to Bankers’ Acceptances.

Term. Each Bankers’ Acceptance shall have an Interest Period of 30, 60, 90 or 180 days (or such other period as is consented to by each of the Syndicated Canadian Banks) commencing on a Business Day selected by the applicable Borrower, subject to availability. No Interest Period shall extend beyond the Termination Date. If such Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall end on the next preceding day that is a Business Day.

Discount Rate. On each Borrowing Date on which Bankers’ Acceptances are to be accepted, the Global Administrative Agent shall advise the Borrowers as to its determination of the applicable

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BA Discount Rate for the Bankers’ Acceptances which the Syndicated Canadian Banks have agreed to purchase.

Purchase. Each Syndicated Canadian Bank agrees to purchase a Bankers’ Acceptance accepted by it. Each Borrower shall sell, and such Syndicated Canadian Bank shall purchase, the Bankers’ Acceptance at the applicable BA Discount Rate. The Syndicated Canadian Bank shall provide, to the account of the Global Administrative Agent, the Bankers’ Acceptance Proceeds less the Stamping Fee payable by the applicable Borrower with respect to the Bankers’ Acceptance. The Global Administrative Agent shall make available to such Borrower, in accordance with the provisions of Section 2.5(b) of the Credit Agreement, the BA Acceptance Proceeds less the applicable Acceptance Fee with respect to each Bankers’ Acceptance purchased and each BA Equivalent Loan advanced by a Syndicated Canadian Bank on the date of such acceptance.

Sale. Each Syndicated Canadian Bank may from time to time hold, sell, rediscount, trade or otherwise dispose of any or all Bankers’ Acceptances accepted and purchased by it.

Power of Attorney for the Execution of Bankers’ Acceptances. To facilitate availment of the Bankers’ Acceptance Loans, each Borrower hereby appoints each Syndicated Canadian Bank as its attorney to sign and endorse on its behalf, in handwriting or by facsimile or mechanical signature as and when deemed necessary by such Syndicated Canadian Bank, blank forms of Bankers’ Acceptances. In this respect, it is each Syndicated Canadian Bank’s responsibility to maintain an adequate supply of blank forms of Bankers’ Acceptances for acceptance under this Agreement. Each Syndicated Canadian Bank shall exercise the same degree of care in the custody and safekeeping of signed blank forms of Bankers’ Acceptance as it exercises in respect of its own bearer securities. Each Borrower recognizes and agrees that all Bankers’ Acceptances signed and/or endorsed on its behalf by a Syndicated Canadian Bank shall bind such Borrower as fully and effectually as if signed in the handwriting of and duly issued by the proper signing officers of such Borrower. Each Syndicated Canadian Bank is hereby authorized to issue such Bankers’ Acceptances endorsed in blank in such face amounts as may be determined by such Syndicated Canadian Bank; provided that the aggregate amount thereof is equal to the aggregate amount of Bankers’ Acceptances required to be accepted and purchased by such Syndicated Canadian Bank. No Syndicated Canadian Bank shall be liable for any damage, loss or other claim arising by reason of any loss or improper use of any such instrument except the gross negligence or wilful misconduct of the Syndicated Canadian Bank or its officers, employees, agents or representatives. On the repayment in full of all Obligations under the Credit Agreement or on request by any Borrower, a Syndicated Canadian Bank shall cancel all forms of Bankers’ Acceptances which have been pre-signed or pre-endorsed by or on behalf of such Borrower and which are held by such Syndicated Canadian Bank and have not yet been issued in accordance herewith. Each Syndicated Canadian Bank shall maintain a record with respect to Bankers’ Acceptances held by it in blank hereunder, voided by it for any reason, accepted and purchased by it hereunder, and cancelled at their respective maturities. Each Syndicated Canadian Bank agrees to provide such records to any Borrower at such Borrower’s expense upon request.

Execution. Drafts drawn by any Borrower to be accepted as Bankers’ Acceptances shall be signed by a duly authorized officer or officers of such Borrower or by its attorneys, including attorneys appointed pursuant to Section 2.03(g) of this Addendum. Notwithstanding that any Person whose signature appears on any Bankers’ Acceptance may no longer be an authorized signatory for such Borrower at the time of issuance of a Bankers’ Acceptance, that signature shall nevertheless be valid and sufficient for all purposes as if the authority had remained in force at the time of issuance and any Bankers’ Acceptance so signed shall be binding on such Borrower.

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Issuance.The Global Administrative Agent, promptly following receipt of a notice of Syndicated Canadian Advance or Continuation/Conversion Notice in respect of Bankers’ Acceptances, shall advise the Syndicated Canadian Banks of the notice and shall advise each Syndicated Canadian Bank of the face amount of Bankers’ Acceptances to be accepted by it and the applicable Interest Period (which shall be identical for all Syndicated Canadian Banks). The aggregate face amount of Bankers’ Acceptances to be accepted by a Syndicated Canadian Bank shall be determined by the Global Administrative Agent by reference to that Syndicated Canadian Bank’s Syndicated Canadian Pro Rata Share, except that, if the face amount of a Bankers’ Acceptance which would otherwise be accepted by a Syndicated Canadian Bank would not be Cdn.$100,000, or a whole multiple thereof, the face amount shall be increased or reduced by the Global Administrative Agent in its sole discretion to Cdn.$100,000, or the nearest whole multiple of that amount, as appropriate; provided that after such issuance, no Syndicated Canadian Bank shall have outstanding Syndicated Canadian Loans in excess of such Syndicated Canadian Bank’s Syndicated Canadian Commitment outstanding immediately prior to such issuance.

Waiver of Presentment and Other Conditions.Each Borrower waives presentment for payment and any other defence to payment of any amounts due to a Syndicated Canadian Bank in respect of a Bankers’ Acceptance accepted and purchased by it pursuant to this Addendum which might exist solely by reason of the Bankers’ Acceptance being held, at the maturity thereof, by the Syndicated Canadian Bankin its own right and each Borrower agrees not to claim any days of grace if the Syndicated Canadian Bank as holder sues any Borrower on the Bankers’ Acceptance for payment of the amount payable by such Borrower thereunder. On the specified maturity date of a Bankers’ Acceptance or the date of any prepayment thereof in accordance with this Addendum, if earlier, the applicable Borrower shall pay to the Syndicated Canadian Bank that has accepted such Bankers’ Acceptance the full face amount of such Bankers’ Acceptance and after such payment, such Borrower shall have no further liability in respect of such Bankers’ Acceptance (except to the extent that any such payment is rescinded or reclaimed by operation of law or otherwise) and such Syndicated Canadian Bank shall be entitled to all benefits of, and be responsible for all payments due to third parties under, such Bankers’ Acceptance.

BA Equivalent Loans by Non BA Lenders. Whenever any Borrower requests a Bankers’ Acceptance Loan or conversion or continuation thereof under this Addendum, each Non BA Lender shall, in lieu of accepting a Bankers’ Acceptance, make a BA Equivalent Loan in an amount equal to the Non BA Lender’s Syndicated Canadian Pro Rata Share of such Bankers’ Acceptance Loan.

Terms Applicable to Discount Notes. As set out in the definition of “Bankers’ Acceptances”, that term includes Discount Notes and all terms of this Addendum and the Credit Agreement applicable to Bankers’ Acceptances shall apply equally to Discount Notes evidencing BA Equivalent Loans with such changes as may in the context be necessary. For greater certainty:

the term of a Discount Note shall be the same as the Interest Period for Bankers’ Acceptances accepted and purchased on the same date in respect of the same Advance;

a stamping fee will be payable by the applicable Borrower in respect of a Discount Note and shall be calculated at the same rate and in the same manner as the Stamping Fee in respect of a Bankers’ Acceptance; and

the BA Discount Rate applicable to a Discount Note shall be the BA Discount Rate applicable to Bankers’ Acceptances accepted by the Global Administrative Agent (as Lender) on the same date, in respect of the same Advance.

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Stamping Fees on Bankers’ Acceptance. The applicable Borrower shall pay, in respect of each draft accepted by the Syndicated Canadian Banks as a Bankers’ Acceptance, a per annum stamping fee (the “Stamping Fee”) equal to (1) the Applicable Margin for Eurocurrency Rate Loans and CDOR Loans, changing when and as such Applicable Margin for Eurocurrency Rate Loans and CDOR Loans shall change, multiplied by (2) the face amount of such Bankers’ Acceptance, and calculated based on the number of days to maturity of such Bankers’ Acceptance divided by 365 (or, when appropriate, 366). Such Stamping Fee shall be payable in advance on the date of issuance of the Bankers’ Acceptance. Each Borrower authorizes and directs the Syndicated Canadian Banks to deduct from the Bankers’ Acceptance Proceeds of Bankers’ Acceptances purchased by such Syndicated Canadian Bank for its own account, the amount of each such Stamping Fee upon the issue of each Bankers’ Acceptance.

Depository Bills and Notes Act.At the option of any Borrower and any Syndicated Canadian Bank, Bankers’ Acceptances under this Addendum to be accepted by such Syndicated Canadian Bank may be issued in the form of depository bills for deposit with The Canadian Depository for Securities Limited pursuant to the Depository Bills and Notes Act (Canada). All depository bills so issued shall be governed by the provisions of this Addendum.

Circumstances Making Bankers’ Acceptances Unavailable. If the Global Administrative Agent determines in good faith, which determination shall constitute prima facie evidence thereof, and notifies the Borrowers that, by reason of circumstances affecting the money market, there is no market for Bankers’ Acceptances, then:

the right of each Borrower to request a Bankers’ Acceptance Loan (or continuation or conversion thereof) shall be suspended until the Global Administrative Agent determines that the circumstances causing such suspension no longer exist and the Administrative Agent so notifies the Borrowers; and

any notice relating to a Bankers’ Acceptance Loan (or continuation or conversion thereof) which is outstanding at such time shall be deemed to be a notice requesting an Advance (or continuation or conversion thereof) by way of Canadian Prime Rate Loans.

The Global Administrative Agent shall promptly notify the Borrowers and the Syndicated Canadian Banks of the suspension in accordance with this Section of the Borrowers’ right to request Bankers’ Acceptance Loans (or continuation or conversion thereof) and of the termination of any such suspension.

Prepayment. Each Borrower may pay the full face amount of a Bankers’ Acceptances to the Global Administrative Agent to be held by the Global Administrative Agent in a non-interest bearing account as collateral security for such Borrower’s obligations with respect to those Bankers’ Acceptances and after such payment, such Borrower shall have no further liability in respect of such Bankers’ Acceptance (except to the extent that any such payment is rescinded or reclaimed by operation of law or otherwise) and the Syndicated Canadian Bank that accepted such Bankers’ Acceptance shall be entitled to all benefits of, and be responsible for all payments due to third parties under, such Bankers’ Acceptance.

Default. Immediately upon termination of the Commitments under Section 8.1(a) of the Credit Agreement, each Borrower shall pay to the Global Administrative Agent on behalf of the applicable Syndicated Canadian Banks the face amount of all Bankers’ Acceptances issued by such Borrower which have not matured, provided that, at the Global Administrative Agent’s sole discretion, such amounts may be paid to the applicable Syndicated Canadian Banks in full and absolute satisfaction of the applicable

7

Borrower’s reimbursement obligation in respect of such Banker’s Acceptances, or, alternatively, such amounts may be held by the Global Administrative Agent in a non-interest bearing account as collateral security for such Borrower’s obligations with respect to those Bankers’ Acceptances.

Canadian Swing Line Loans. The terms of this Addendum shall apply equally to Bankers’ Acceptance Loans made by the Global Swing Line Lender except that (i) Bankers’ Acceptances Loans will consist of loans bearing interest at the CDOR Rate and not the issuance of Bankers’ Acceptances; (ii) the CDOR Rate will be the discount rate for the term of the applicable Bankers’ Acceptance Loan as quoted by the Global Swing Line Lender; (iii) interest on Bankers’ Acceptance Loans shall be payable on the last day of the applicable Interest Period and (iv) the applicable notice requirements shall be as set out in Schedule II to the Credit Agreement.

ARTICLE 3

Representations and Warranties

Representations of the Borrowers. Each Borrower party hereto makes and confirms each representation and warranty in all material respects as of each Borrowing Date applicable to such Borrower or any of its respective Subsidiaries contained in Article V of the Credit Agreement except for representations and warranties made with reference solely to an earlier date, which representations and warranties shall be true and correct as of such earlier date; provided, that the representations set forth in Sections 5.1.6 and 5.1.7 of the Credit Agreement shall be deemed to be made only (1) on and as of the Closing Date, (2) on and as of each date (if any) on which the Lenders agree to extend the Termination Date and (3) on and as of the effective date of any increase in the Commitments (if any) and represents and warrants to each of the Syndicated Canadian Banks that no Default or Unmatured Default has occurred and is continuing, and no Default or Unmatured Default shall arise as a result of the making of Syndicated Canadian Loans hereunder or any other transaction contemplated hereby.

ARTICLE 4

Miscellaneous Provisions

Limitation on Criminal Rates of Interest.

(a)    No Payment shall exceed Lawful Rate. Notwithstanding any other term of the Credit Agreement and this Addendum, no Borrower shall be obliged to pay any interest or other amounts under or in connection with the Credit Agreement and this Addendum in excess of the amount or rate permitted under or consistent with any applicable law, rule or regulation. In particular, no Borrower shall be obliged to pay any interest or other amounts which would result in the receipt by any Lender of interest on credit advanced at a rate in excess of the rate permitted under the Criminal Code (Canada). For purposes of this Section 4.01, “interest” and “credit advanced” have the meanings ascribed in the Criminal Code (Canada) and the “effective annual rate of interest” shall be calculated in accordance with generally accepted actuarial principles and practices.

(b)    Payment at Highest Lawful Rate. If any Borrower is not obliged to make a payment which it would otherwise be required to make, as a result of this Section 4.01, such Borrower, as applicable, shall make such payment to the maximum extent permitted by or consistent with applicable laws, rules and regulations.

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(c)    Adjustment if any Payment exceeds Lawful Rate. If any provision of the Credit Agreement or this Addendum would obligate any Borrower to make any payment of interest or other amount payable to any Lender in an amount or calculated at a rate which would be prohibited by any applicable law, rule or regulation, or in the case of any Borrower, would result in a receipt by that Lender of interest at a criminal rate (as such terms are construed under the Criminal Code (Canada)), then notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by law or so result in a receipt by that Lender of interest at a criminal rate, such adjustment to be effected, to the extent necessary, as follows:

firstly, by reducing the amount or rate of interest required to be paid by the applicable Borrower to the affected Lender; and

thereafter, by reducing any fees, commissions, premiums and other amounts required to be paid by such Borrower to the affected Lender where, in the case of such Borrower, such amounts would constitute interest for purposes of Section 347 of the Criminal Code (Canada).

Notwithstanding the foregoing, and after giving effect to all adjustments contemplated thereby, if any Lender shall have received from any Borrower an amount in excess of the maximum permitted by any applicable law, rule or regulation or in the case of such Borrower, an amount in excess of the maximum permitted under the Criminal Code (Canada), then such Borrower shall be entitled, by notice in writing to the Global Administrative Agent, to obtain reimbursement from that Lender in an amount equal to such excess, and pending such reimbursement, such amount shall be deemed to be an amount payable by that Lender to such Borrower. Any amount or rate of interest referred to in this Section 4.01 shall be determined in accordance with generally accepted actuarial practices and principles as an effective annual rate of interest over the term that any Loan remains outstanding on the assumption, with respect to Canadian Syndicated Loans, that any charges, fees or expenses that fall within the meaning of “interest” (as defined in the Criminal Code (Canada)) shall, if they relate to a specific period of time, be pro-rated over that period of time and otherwise be pro-rated over the period from the Closing Date to the Termination Date.

Amendment; Termination.

This Addendum (including the Schedules hereto) may not be amended without the prior written consent of each Borrower, the Global Administrative Agent and the Syndicated Canadian Banks representing more than 50% of the Syndicated Canadian Commitment.

This Addendum may not be terminated without the prior written consent of the Global Administrative Agent and each Syndicated Canadian Bank party hereto and each Borrower unless there are no Syndicated Canadian Loans outstanding hereunder, in which case no such consent of the Syndicated Canadian Banks shall be required; provided, however, that this Addendum shall terminate on the date that the Credit Agreement terminates in accordance with its terms.

Assignments.

Sections 13.1 and 13.3 of the Credit Agreement shall apply to assignments by the Syndicated Canadian Banks of obligations, commitments and Loans hereunder; provided, however, that the Syndicated Canadian Banks may not assign any obligations, commitments or rights hereunder to any Person who is not (and does not simultaneously become) a Lender under the Credit Agreement.

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Notices.

Notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

if to any Borrower, at:

[INSERT BORROWER NAME]

3700 West Juneau Avenue

Milwaukee, Wisconsin 53208

Telephone No.: (414) 343-7863
Facsimile No.: (414) 343-4990

Attention: J. Darrell Thomas, Vice President and Treasurer

if to the Global Administrative Agent in respect of matters pertaining to any Borrower and its Loans, to it at:

JPMorgan Chase Bank, N.A., Toronto Branch

200 Bay Street, 18^th Floor

Suite 1800

Toronto, Ontario

M5J 2J2

Telephone:    (416) 981-9235

Facsimile:    (416) 981-9128

Attention:    Account Manager

if to any Syndicated Canadian Bank, to it at its address or telecopy number set forth in Schedule I hereto or in the Assignment and Acceptance pursuant to which such Syndicated Canadian Bank became a party hereto.

All notices and other communications given to any party hereto in accordance with the provisions of this Addendum shall be deemed to have been given on the date of receipt if delivered by hand or overnight courier service or sent by telecopy to such party as provided in this Section or in accordance with the latest unrevoked direction from such party given in accordance with this Section.

Applicable Law.

THIS ADDENDUM SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

Amendment and Restatement.

Each of the parties hereto acknowledges and agrees that the Previous Addendum is amended, restated, and superseded in its entirety pursuant to the terms hereof.

* * * * *

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IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be duly executed by their duly authorized officers, all as of the date and year first above written.

HARLEY-DAVIDSON, INC.,

as a U.S. Borrower

By:____________________________________
Name:

Title:

HARLEY-DAVIDSON FINANCIAL SERVICES, INC.,

as a U.S. Borrower

By:____________________________________
Name:

Title:

HARLEY-DAVIDSON FINANCIAL SERVICES CANADA, INC.,

as the Canadian Borrower

By:____________________________________
Name:

Title:

Signature Page to

Amended and Restated Syndicated Canadian Addendum

JPMORGAN CHASE BANK, N.A.,
as the Global Administrative Agent

By:__________________________________
Name:
Title:

JPMORGAN CHASE BANK, N.A., TORONTO BRANCH,
as a Syndicated Canadian Bank

By:__________________________________
Name:
Title:

Signature Page to

Amended and Restated Syndicated Canadian Addendum

CITIBANK, N.A., CANADIAN BRANCH,

as a Syndicated Canadian Bank

By:___________________________________
Name:
Title:

Signature Page to

Amended and Restated Syndicated Canadian Addendum

U.S. BANK NATIONAL ASSOCIATION, CANADA BRANCH

as a Syndicated Canadian Bank

By:___________________________________
Name: Joseph Rauhala
Title: Principal Officer

Signature Page to

Amended and Restated Syndicated Canadian Addendum

BMO HARRIS BANK N.A.,

as a Syndicated Canadian Bank

By:___________________________________
Name:
Title:

Signature Page to

Amended and Restated Syndicated Canadian Addendum

FIFTH THIRD BANK,

as a Syndicated Canadian Bank

By:___________________________________
Name:
Title:

Signature Page to

Amended and Restated Syndicated Canadian Addendum

THE TORONTO-DOMINION BANK,

as a Syndicated Canadian Bank

By:___________________________________
Name:
Title:

Signature Page to

Amended and Restated Syndicated Canadian Addendum

SCHEDULE I

to Syndicated Canadian Addendum

for Canadian Borrowings

SYNDICATED CANADIAN BANK

SYNDICATED CANADIAN COMMITMENT

Syndicated Canadian Bank	Dollar Amount of Syndicated Canadian Commitment
JPMorgan Chase Bank, N.A., Toronto Branch	U.S.$55,000,000
Citibank, N.A., Canadian Branch	U.S.$55,000,000
U.S. Bank National Association, Canada Branch	U.S.$50,000,000
BMO Harris Bank N.A.	U.S.$50,000,000
Fifth Third Bank	U.S.$20,000,000
The Toronto-Dominion Bank	U.S.$20,000,000
Aggregate Syndicated Canadian Commitment	U.S.$250,000,000

SCHEDULE II

to Syndicated Canadian Addendum

for Canadian Borrowings

MODIFICATIONS

1.    Business Day Definition:

“Business Day” shall mean a day (other than a Saturday or Sunday) on which banks are open for business in Toronto, Canada.

2.    Interest Payment Dates:

Interest shall be payable on each Canadian Prime Rate Loan on the last Business Day of each calendar month.

3.    Interest Periods: No change.

4.    Interest Rates: Same as Credit Agreement.

5.    Modifications to Interest Period Selection and Conversion Contained in Section 2.8:    Same as Credit Agreement except as noted below:

Any Conversion of a Bankers’ Acceptance Loan shall be made on, and only on, the maturity date applicable thereto. In the event that a Bankers’ Acceptance Loan is to be continued as a Bankers’ Acceptance Loan, the Bankers’ Acceptance Proceeds arising from the continued Bankers’ Acceptance Loan shall be retained by the relevant Syndicated Canadian Bank to be applied by it to the face amount of the Bankers’ Acceptance maturing on the date of such advance, and each applicable Borrower shall pay to each Syndicated Canadian Bank, on such date, an amount equal to the difference between the face amount at maturity of the maturing Bankers’ Acceptance and the Bankers’ Acceptance Proceeds of the Bankers’ Acceptance to be issued. Notwithstanding anything to the contrary contained in the Credit Agreement or this Addendum, no Loan may be converted into or continued as a Bankers’ Acceptance Loan when any Default or Unmatured Default has occurred and is continuing.

6.    Other:

Additional Conditions Precedent: None.

Termination Date for Addendum: Same as Credit Agreement.

Maximum Number of Interest Periods: Same as Credit Agreement.

Prepayments and related Notices: Each Borrower shall be permitted to prepay the Syndicated Canadian Loans (other than Bankers’ Acceptance Loans) provided that notice thereof is given to the Global Administrative Agent not later than 10:00 a.m. (Toronto time) at least one (1) Business Day prior to the date of such prepayment.

If at any time any Bankers’ Acceptances are to be paid prior to their maturity, the applicable Borrower shall be required to deposit the amount of such prepayment in a cash collateral account with the Global Administrative Agent until the date of maturity of such Bankers’ Acceptances. Such cash collateral account shall be under the sole dominion and control of the Global Administrative Agent. Except as contemplated hereby, neither the applicable Borrower nor any Person claiming on behalf of such Borrower shall have any right to any of the cash in such cash collateral account. The Global Administrative Agent shall apply the cash held in such cash collateral account to the face amount of such Bankers’ Acceptances at maturity whereupon any cash remaining in such cash collateral account shall be released by the Global Administrative Agent to such Borrower.

SCHEDULE III

to Syndicated Canadian Addendum

for Canadian Borrowings

OTHER PROVISIONS

1.    Borrowing Procedures: Same as Credit Agreement, except as noted below:

Notice of Borrowing of (i) Bankers’ Acceptance Loans, (ii) conversion of outstanding Canadian Prime Rate Loans into Bankers’ Acceptances, and (iii) renewal of Bankers’ Acceptance Loan (which renewals) shall be in the same form of Loan) shall be given by the applicable Borrower to the Global Administrative Agent not later than the time specified in Schedule II to the Credit Agreement. Such notice shall also state the term applicable to such Bankers’ Acceptance.

2.    Funding Arrangements: Same as Credit Agreement.

3.    Promissory Notes: If requested by any Syndicated Canadian Bank.

SCHEDULE IV

to Syndicated Canadian Addendum

for Canadian Borrowings

Form of Syndicated Canadian Note

___________ ___, 20___

[______________], a corporation organized under the laws of [______] (the “Borrower”), promises to pay to the order of [______________] (the “Syndicated Canadian Bank”) the aggregate unpaid principal Dollar Amount of all Syndicated Canadian Loans made by the Syndicated Canadian Bank to the Borrower pursuant to Article II of the Credit Agreement hereinafter referred to (together with the Syndicated Canadian Addendum, as each of the same may be amended, restated, supplemented or otherwise modified from time to time, the “Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement), in immediately available funds on the dates and at the offices of JPMorgan Chase Bank, N.A., as Global Administrative Agent, specified in the Agreement, together with interest on the unpaid principal amount hereof at the rates and on the dates determined in accordance with the Agreement. The Borrower shall pay the principal of and accrued and unpaid interest on the Syndicated Canadian Loans in full on the Termination Date (unless an earlier termination date shall be specified in or pursuant to the Syndicated Canadian Addendum).

The Syndicated Canadian Bank shall, and is hereby authorized to, record on the schedule attached hereto, or otherwise record in accordance with its usual practice, the date and amount of each Syndicated Canadian Loan and the date and amount of each principal payment hereunder.

This Note is one of the Syndicated Canadian Notes issued pursuant to, and is entitled to the benefits of, the 5-Year Credit Agreement dated as of April 13, 2012 entered into among Harley-Davidson, Inc., a Wisconsin corporation, Harley-Davidson Financial Services, Inc., a Delaware corporation, Harley-Davidson Financial Services Canada, Inc., a corporation organized under the laws of Canada, Harley-Davidson Financial Services International Inc., a Delaware corporation, Harley-Davidson Credit Corp., a Nevada corporation and JPMorgan Chase Bank, N.A., as the Global Administrative Agent and the Global Swing Line Lender and the institutions from time to time party thereto as Lenders, including the Syndicated Canadian Bank, to which Agreement, as it may be amended from time to time, reference is hereby made for a statement of the terms and conditions governing this Syndicated Canadian Note, including the terms and conditions under which this Syndicated Canadian Note may be prepaid or its maturity date accelerated. The Agreement, among other things, provides for the making of “Syndicated Canadian Loans” by the Syndicated Canadian Bank to the Borrower from time to time in an aggregate amount not to exceed at any time outstanding the Syndicated Canadian Bank’s Commitment, except as otherwise contemplated in the Agreement.

Except as otherwise provided in the Agreement, the Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall operate as a waiver of such rights.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

[BORROWER]

By: _____________________________
Name:
Title:

Schedule of Syndicated Canadian Loans and Payments of Principal

to

Syndicated Canadian Note of [BORROWER]

Dated ___________ ___, 20___

Date Principal amount and currency of Syndicated Loan Maturity of Interest Period Principal Amount Paid Unpaid Balance

EX-31.1

Exhibit 31.1

Chief Executive Officer Certification

Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

I, Keith E. Wandell, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Harley-Davidson, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 6, 2013	/s/ Keith E. Wandell
	Keith E. Wandell
	Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Chief Financial Officer Certification

Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

I, John A. Olin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Harley-Davidson, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 6, 2013	/s/ John A. Olin
	John A. Olin
	Senior Vice President and
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Written Statement of the Chief Executive Officer and Chief Financial Officer

Pursuant to 18 U.S.C. sec. 1350

Solely for the purpose of complying with 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, we, the undersigned Chairman, President and Chief Executive Officer and the Senior Vice President and Chief Financial Officer of Harley-Davidson, Inc. (the “Company”), hereby certify, based on our knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended September 29, 2013 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 6, 2013	/s/ Keith E. Wandell
	Keith E. Wandell
	Chairman, President and Chief Executive Officer
	/s/ John A. Olin
	John A. Olin
	Senior Vice President and
	Chief Financial Officer

XML

Product Warranty and Safety Recall Campaigns

9 Months Ended

Sep. 29, 2013

Product Warranties Disclosures [Abstract]

Product Warranty and Safety Recall Campaigns

Product Warranty and Safety Recall Campaigns

The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company currently provides a standard three-year limited warranty on all new motorcycles sold. In addition, the Company provides a one-year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company maintains reserves for future warranty claims using an estimated cost, which is based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary safety recall campaigns. The Company reserves for all estimated costs associated with safety recalls in the period that the safety recalls are announced.

Changes in the Company’s warranty and safety recall liability were as follows (in thousands):

	Three months ended						Nine months ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Balance, beginning of period	$	70,406		$	67,801		$	60,263		$	54,994
Warranties issued during the period	12,008			10,228			46,529			42,846
Settlements made during the period	(16,898		)	(19,799		)	(45,238		)	(52,885		)
Recalls and changes to pre-existing warranty liabilities	77			4,980			4,039			18,255
Balance, end of period	$	65,593		$	63,210		$	65,593		$	63,210

The liability for safety recall campaigns was $2.5 million, $4.6 million and $5.0 million as of September 29, 2013, December 31, 2012 and September 30, 2012, respectively.

XML

Derivative Instruments And Hedging Activities (Derivative Instrument Fair Value) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013		Dec. 31, 2012		Sep. 30, 2012
Derivatives Designated As Hedging Instruments [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 336,956		$ 381,885	[1]	$ 425,664
Derivatives Designated As Hedging Instruments [Member] | Other Current Assets [Member]
Derivative [Line Items]
Derivative Asset, Current	1,714	[2]	317	[1]	1,036	[2]
Derivatives Designated As Hedging Instruments [Member] | Accrued Liabilities [Member]
Derivative [Line Items]
Derivative Liability, Current	823	[1]	7,906	[1]	2,458	[1]
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount	335,172		345,021	[1]	385,883
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Asset, Current	1,714	[2]	169	[1]	956	[2]
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Accrued Liabilities [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Liability, Current	771	[1]	6,850	[1]	1,784	[1]
Derivatives Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount	1,784		1,064	[1]	1,181
Derivatives Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Other Current Assets [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Asset, Current	0	[2]	148	[1]	80	[2]
Derivatives Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Accrued Liabilities [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Liability, Current	52	[1]	683	[1]	0	[1]
Derivatives Designated As Hedging Instruments [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount	0	[3]	35,800	[1],[3]	38,600	[3]
Derivatives Designated As Hedging Instruments [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Asset, Current	0	[2],[3]	0	[1],[3]	0	[2],[3]
Derivatives Designated As Hedging Instruments [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Liability, Current	0	[1],[3]	373	[1],[3]	674	[1],[3]
Derivatives Not Designated As Hedging Instruments [Member]
Derivative [Line Items]
Derivative, Notional Amount	11,250		16,237		14,518
Derivatives Not Designated As Hedging Instruments [Member] | Other Current Assets [Member]
Derivative [Line Items]
Derivative Asset, Current	19	[2]	0	[2]	603	[2]
Derivatives Not Designated As Hedging Instruments [Member] | Accrued Liabilities [Member]
Derivative [Line Items]
Derivative Liability, Current	329	[1]	14	[1]	0	[1]
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contract [Member]
Derivative [Line Items]
Derivative, Notional Amount	11,250		16,237		14,518
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Other Current Assets [Member]
Derivative [Line Items]
Derivative Asset, Current	19	[2]	0	[2]	603	[2]
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Accrued Liabilities [Member]
Derivative [Line Items]
Derivative Liability, Current	$ 329	[1]	$ 14	[1]	$ 0	[1]

[1] Included in accrued liabilities

[2] Included in other current assets

[3] Derivative designated as a cash flow hedge

XML

Finance Receivables

9 Months Ended

Sep. 29, 2013

Receivables [Abstract]

Finance Receivables

Finance Receivables

HDFS provides retail financial services to customers of the Company’s independent dealers in the United States and Canada. The origination of retail loans is a separate and distinct transaction between HDFS and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and installment loans. HDFS holds either titles or liens on titles to vehicles financed by promissory notes and installment loans.

HDFS offers wholesale financing to the Company’s independent dealers. Wholesale loans to dealers are generally secured by financed inventory or property and are originated in the U.S. and Canada.

Finance receivables, net, consisted of the following (in thousands):

	September 29, 2013			December 31, 2012			September 30, 2012
Retail	$	5,405,670		$	5,073,115		$	5,243,470
Wholesale	891,141			816,404			785,323
	6,296,811			5,889,519			6,028,793
Allowance for credit losses	(111,921		)	(107,667		)	(113,126		)
	$	6,184,890		$	5,781,852		$	5,915,667

A provision for credit losses on finance receivables is charged or credited to earnings in amounts that the Company believes are sufficient to maintain the allowance for credit losses at a level that is adequate to cover losses of principal inherent in the existing portfolio. The allowance for credit losses represents management’s estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. However, due to the use of projections and assumptions in estimating the losses, the amount of losses actually incurred by the Company could differ from the amounts estimated.

Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):

	Three months ended September 29, 2013
	Retail			Wholesale			Total
Balance, beginning of period	$	103,770		$	7,554		$	111,324
Provision for credit losses	16,168			(1,564		)	14,604
Charge-offs	(23,708		)	—			(23,708		)
Recoveries	9,701			—			9,701
Balance, end of period	$	105,931		$	5,990		$	111,921
	Three months ended September 30, 2012
	Retail			Wholesale			Total
Balance, beginning of period	$	106,180		$	8,068		$	114,248
Provision for credit losses	9,869			(800		)	9,069
Charge-offs	(19,873		)	—			(19,873		)
Recoveries	9,682			—			9,682
Balance, end of period	$	105,858		$	7,268		$	113,126
	Nine months ended September 29, 2013
	Retail			Wholesale			Total
Balance, beginning of period	$	101,442		$	6,225		$	107,667
Provision for credit losses	39,246			(235		)	39,011
Charge-offs	(67,117		)	—			(67,117		)
Recoveries	32,360			—			32,360
Balance, end of period	$	105,931		$	5,990		$	111,921
	Nine months ended September 30, 2012
	Retail			Wholesale			Total
Balance, beginning of period	$	116,112		$	9,337		$	125,449
Provision for credit losses	14,892			(2,069		)	12,823
Charge-offs	(62,779		)	—			(62,779		)
Recoveries	37,633			—			37,633
Balance, end of period	$	105,858		$	7,268		$	113,126

Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement. Portions of the allowance for credit losses are established to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance for credit losses covers estimated losses on finance receivables which are collectively reviewed for impairment.

The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. HDFS performs a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. HDFS utilizes loss forecast models which consider a variety of factors including, but not limited to, historical loss trends, origination or vintage analysis, known and inherent risks in the portfolio, the value of the underlying collateral, recovery rates, and current economic conditions including items such as unemployment rates. Retail finance receivables are not evaluated individually for impairment prior to charge-off and therefore are not reported as impaired loans.

The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s evaluation for the wholesale allowance for credit losses is first based on a loan-by-loan review. A specific allowance for credit losses is established for wholesale finance receivables determined to be individually impaired when management concludes that the borrower will not be able to make full payment of the contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash that the Company expects to receive discounted at the loan’s original interest rate or the fair value of the collateral, if the loan is collateral-dependent. Finance receivables in the wholesale portfolio that are not considered impaired on an individual basis are segregated, based on similar risk characteristics, according to the Company’s internal risk rating system and collectively evaluated for impairment. The related allowance for credit losses is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past loan loss experience, current economic conditions, and the value of the underlying collateral.

Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize the economic loss, the Company may modify certain finance receivables in troubled debt restructurings. Total restructured finance receivables are not significant.

The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands):

	September 29, 2013
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	105,931		5,990		111,921
Total allowance for credit losses	$	105,931	$	5,990	$	111,921
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,405,670		891,141		6,296,811
Total finance receivables	$	5,405,670	$	891,141	$	6,296,811
	December 31, 2012
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	101,442		6,225		107,667
Total allowance for credit losses	$	101,442	$	6,225	$	107,667
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,073,115		816,404		5,889,519
Total finance receivables	$	5,073,115	$	816,404	$	5,889,519
	September 30, 2012
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	105,858		7,268		113,126
Total allowance for credit losses	$	105,858	$	7,268	$	113,126
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,243,470		785,323		6,028,793
Total finance receivables	$	5,243,470	$	785,323	$	6,028,793

There were no wholesale finance receivables at September 29, 2013, December 31, 2012, or September 30, 2012 that were individually deemed to be impaired under ASC Topic 310, “Receivables.”

Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of September 29, 2013, December 31, 2012 and September 30, 2012, all retail finance receivables were accounted for as interest-earning receivables, of which $17.8 million, $27.6 million and $19.4 million, respectively, were 90 days or more past due.

Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Interest continues to accrue on past due finance receivables until the date the finance receivable becomes uncollectible and the finance receivable is placed on non-accrual status. HDFS will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. Wholesale finance receivables are written down once management determines that the specific borrower does not have the ability to repay the loan in full. There were no wholesale receivables on non-accrual status at September 29, 2013, December 31, 2012 or September 30, 2012. At September 29, 2013, December 31, 2012 and September 30, 2012, $0.6 million, $0.4 million, and $0.5 million of wholesale finance receivables were 90 days or more past due and accruing interest, respectively.

An analysis of the aging of past due finance receivables was as follows (in thousands):

	September 29, 2013
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,260,125	$	99,255	$	28,531	$	17,759	$	145,545	$	5,405,670
Wholesale	889,531		681		302		627		1,610		891,141
Total	$	6,149,656	$	99,936	$	28,833	$	18,386	$	147,155	$	6,296,811
	December 31, 2012
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	4,894,675	$	113,604	$	37,239	$	27,597	$	178,440	$	5,073,115
Wholesale	814,706		984		278		436		1,698		816,404
Total	$	5,709,381	$	114,588	$	37,517	$	28,033	$	180,138	$	5,889,519
	September 30, 2012
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,093,496	$	100,706	$	29,878	$	19,390	$	149,974	$	5,243,470
Wholesale	784,155		445		217		506		1,168		785,323
Total	$	5,877,651	$	101,151	$	30,095	$	19,896	$	151,142	$	6,028,793

A significant part of managing HDFS’ finance receivable portfolios includes the assessment of credit risk associated with each borrower. As the credit risk varies between the retail and wholesale portfolios, HDFS utilizes different credit risk indicators for each portfolio.

HDFS manages retail credit risk through its credit approval policy and ongoing collection efforts. HDFS uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. Retail loans with a FICO score of 640 or above at origination are considered prime, and loans with a FICO score below 640 are considered sub-prime. These credit quality indicators are determined at the time of loan origination and are not updated subsequent to the loan origination date.

The recorded investment of retail finance receivables, by credit quality indicator, was as follows (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Prime	$	4,249,780	$	4,035,584	$	4,178,726
Sub-prime	1,155,890		1,037,531		1,064,744
Total	$	5,405,670	$	5,073,115	$	5,243,470

HDFS’ credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. HDFS utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower.

HDFS uses the following internal credit quality indicators, based on the Company’s internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon management’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged off, while the dealers classified as Low Risk are least likely to be charged off. The internal rating system considers factors such as the specific borrowers’ ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated on a quarterly basis.

The recorded investment of wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Doubtful	$	3,966	$	8,107	$	10,072
Substandard	10,486		2,593		3,689
Special Mention	—		3,504		2,446
Medium Risk	6,914		8,451		6,035
Low Risk	869,775		793,749		763,081
Total	$	891,141	$	816,404	$	785,323

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Restructuring Expense (Tables)

9 Months Ended

Sep. 29, 2013

Restructuring and Related Activities [Abstract]

Restructuring Plan Reserve Recorded In Accrued Liabilities

The following table summarizes the Company’s 2009 Restructuring Plan reserve activity and balances recorded in accrued liabilities (in thousands):

	Nine months ended September 29, 2013
	Motorcycles & Related Products
	Employee Severance and Termination Costs			Accelerated Depreciation		Other			Total
Balance, beginning of period	$	5,196		$	—	$	161		$	5,357
Restructuring expense	—			—		2,446			2,446
Utilized—cash	(1,620		)	—		(2,607		)	(4,227		)
Utilized—non-cash	—			—		—			—
Non-cash reserve release	(1,531		)	—		—			(1,531		)
Balance, end of period	$	2,045		$	—	$	—		$	2,045
	Nine months ended September 30, 2012
	Motorcycles & Related Products
	Employee Severance and Termination Costs			Accelerated Depreciation		Other			Total
Balance, beginning of period	$	10,089		$	—	$	—		$	10,089
Restructuring expense	4,166			—		11,987			16,153
Utilized—cash	(2,529		)	—		(11,987		)	(14,516		)
Utilized—non-cash	—			—		—			—
Non-cash reserve release	(2,027		)	—		—			(2,027		)
Balance, end of period	$	9,699		$	—	$	—		$	9,699

The following table summarizes the Motorcycles segment’s 2011 Kansas City Restructuring Plan and modified 2011 New Castalloy Restructuring Plan reserve activity and balances as recorded in accrued liabilities (in thousands):

	Nine months ended September 29, 2013
	Kansas City								New Castalloy												Consolidated
	Employee Severance and Termination Costs			Other		Total			Employee Severance and Termination Costs			Accelerated Depreciation			Other			Total			Total
Balance, beginning of period	$	2,259		$	—	$	2,259		$	9,306		$	—		$	145		$	9,451		$	11,710
Restructuring expense	—			—		—			1,361			2,093			590			4,044			4,044
Utilized—cash	(1,283		)	—		(1,283		)	(5,360		)	—			(602		)	(5,962		)	(7,245		)
Utilized—non-cash	—			—		—			—			(2,093		)	—			(2,093		)	(2,093		)
Non-cash reserve release	(976		)	—		(976		)	(5,250		)	—			—			(5,250		)	(6,226		)
Balance, end of period	$	—		$	—	$	—		$	57		$	—		$	133		$	190		$	190

	Nine months ended September 30, 2012
	Kansas City								New Castalloy												Consolidated
	Employee Severance and Termination Costs			Other		Total			Employee Severance and Termination Costs			Accelerated Depreciation			Other			Total			Total
Balance, beginning of period	$	4,123		$	—	$	4,123		$	8,428		$	—		$	305		$	8,733		$	12,856
Restructuring expense	—			—		—			2,450			6,152			1,075			9,677			9,677
Utilized—cash	—			—		—			(388		)	—			(1,235		)	(1,623		)	(1,623		)
Utilized—non-cash	—			—		—			—			(6,152		)	—			(6,152		)	(6,152		)
Non-cash reserve release	(967		)	—		(967		)	—			—			—			—			(967		)
Balance, end of period	$	3,156		$	—	$	3,156		$	10,490		$	—		$	145		$	10,635		$	13,791

The following table summarizes the Motorcycles segment’s 2010 Restructuring Plan reserve activity and balances as recorded in accrued liabilities (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012
	Employee Severance and Termination Costs			Employee Severance and Termination Costs
Balance, beginning of period	$	10,156		$	20,361
Restructuring expense	—			4,005
Utilized—cash	(9,710		)	(13,894		)
Non-cash reserve release	(446		)	—
Balance, end of period	$	—		$	10,472

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Supplemental Consolidating Data (Operations) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Segment Reporting Information [Line Items]
Motorcycles and related products	$ 1,180,284	$ 1,089,268	$ 4,225,998	$ 3,931,684
Financial services	163,434	161,027	483,240	477,962
Total revenue	1,343,718	1,250,295	4,709,238	4,409,646
Motorcycles and related products cost of goods sold	763,969	711,364	2,688,371	2,533,453
Financial services interest expense	39,944	46,231	126,004	146,199
Provision for credit losses	14,604	9,069	39,011	12,823
Selling, administrative and engineering expense	273,016	257,359	825,899	806,257
Restructuring (benefit) expense	646	9,170	(1,713)	26,841
Total costs and expenses	1,092,179	1,033,193	3,677,572	3,525,573
Operating income	251,539	217,102	1,031,666	884,073
Investment income	1,161	1,447	4,546	5,611
Interest expense	11,369	11,438	33,998	34,528
Income before provision for income taxes	241,331	207,111	1,002,214	855,156
Provision for income taxes	78,615	73,110	343,630	301,870
Net Income	162,716	134,001	658,584	553,286
Motorcycles And Related Products Operations [Member]
Segment Reporting Information [Line Items]
Motorcycles and related products	1,183,016	1,091,887	4,233,990	3,939,673
Financial services	0	0	0	0
Total revenue	1,183,016	1,091,887	4,233,990	3,939,673
Motorcycles and related products cost of goods sold	763,969	711,364	2,688,371	2,533,453
Financial services interest expense	0	0	0	0
Provision for credit losses	0	0	0	0
Selling, administrative and engineering expense	240,593	224,393	730,664	709,240
Restructuring (benefit) expense	646	9,170	(1,713)	26,841
Total costs and expenses	1,005,208	944,927	3,417,322	3,269,534
Operating income	177,808	146,960	816,668	670,139
Investment income	1,161	1,447	189,546	230,611
Interest expense	11,369	11,438	33,998	34,528
Income before provision for income taxes	167,600	136,969	972,216	866,222
Provision for income taxes	51,721	47,859	265,278	224,854
Net Income	115,879	89,110	706,938	641,368
Financial Services Operations [Member]
Segment Reporting Information [Line Items]
Motorcycles and related products	0	0	0	0
Financial services	163,829	161,438	484,461	478,187
Total revenue	163,829	161,438	484,461	478,187
Motorcycles and related products cost of goods sold	0	0	0	0
Financial services interest expense	39,944	46,231	126,004	146,199
Provision for credit losses	14,604	9,069	39,011	12,823
Selling, administrative and engineering expense	35,550	35,996	104,448	105,231
Restructuring (benefit) expense	0	0	0	0
Total costs and expenses	90,098	91,296	269,463	264,253
Operating income	73,731	70,142	214,998	213,934
Investment income	0	0	0	0
Interest expense	0	0	0	0
Income before provision for income taxes	73,731	70,142	214,998	213,934
Provision for income taxes	26,894	25,251	78,352	77,016
Net Income	46,837	44,891	136,646	136,918
Eliminations & Adjustments [Member]
Segment Reporting Information [Line Items]
Motorcycles and related products	(2,732)	(2,619)	(7,992)	(7,989)
Financial services	(395)	(411)	(1,221)	(225)
Total revenue	(3,127)	(3,030)	(9,213)	(8,214)
Motorcycles and related products cost of goods sold	0	0	0	0
Financial services interest expense	0	0	0	0
Provision for credit losses	0	0	0	0
Selling, administrative and engineering expense	(3,127)	(3,030)	(9,213)	(8,214)
Restructuring (benefit) expense	0	0	0	0
Total costs and expenses	(3,127)	(3,030)	(9,213)	(8,214)
Operating income	0	0	0	0
Investment income	0	0	(185,000)	(225,000)
Interest expense	0	0	0	0
Income before provision for income taxes	0	0	(185,000)	(225,000)
Provision for income taxes	0	0	0	0
Net Income	$ 0	$ 0	$ (185,000)	$ (225,000)

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Accumulated Other Comprehensive Income (Changes In Other Comprehensinve Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 29, 2013		Sep. 30, 2012		Sep. 29, 2013		Sep. 30, 2012
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ (599,190)		$ (469,556)		$ (607,678)		$ (476,733)
Other comprehensive income before reclassifications	(554)		10,634		(9,033)		9,500
Income tax	3,115		(1,795)		(599)		(3,402)
Net other comprehensive income before reclassifications	2,561		8,839		(9,632)		6,098
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	16,237		5,257		49,080		20,954
Income tax expense	(6,014)		(1,959)		(18,176)		(7,738)
Net reclassifications	10,223		3,298		30,904		13,216
Other comprehensive (loss) income	12,784		12,137		21,272		19,314
Ending Balance	(586,406)		(457,419)		(586,406)		(457,419)
Prior Service Costs [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(526)	[1]	(233)	[1]	(1,580)	[1]	(671)	[1]
Actuarial Losses [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	16,789	[1]	12,824	[1]	50,368	[1]	38,472	[1]
Foreign Currency Contracts [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(47)	[2]	(7,742)	[2]	(61)	[2]	(19,846)	[2]
Commodity Contract [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	21	[2]	81	[2]	8	[2]	737	[2]
Interest Rate Swap [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	0	[3]	327	[3]	345	[3]	2,262	[3]
Accumulated Translation Adjustment [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	29,461		44,571		51,335		49,935
Other comprehensive income before reclassifications	10,040		8,388		(13,812)		3,087
Income tax	(808)		(963)		1,170		(1,026)
Net other comprehensive income before reclassifications	9,232		7,425		(12,642)		2,061
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	0		0		0		0
Income tax expense	0		0		0		0
Net reclassifications	0		0		0		0
Other comprehensive (loss) income	9,232		7,425		(12,642)		2,061
Ending Balance	38,693		51,996		38,693		51,996
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	50		655		677		327
Other comprehensive income before reclassifications	(297)		529		(1,293)		1,050
Income tax	110		(196)		479		(389)
Net other comprehensive income before reclassifications	(187)		333		(814)		661
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	0	[4]	0	[4]	0	[4]	0	[4]
Income tax expense	0		0		0		0
Net reclassifications	0		0		0		0
Other comprehensive (loss) income	(187)		333		(814)		661
Ending Balance	(137)		988		(137)		988
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	6,674		2,654		(3,837)		6,307
Other comprehensive income before reclassifications	(10,297)		1,717		6,072		5,363
Income tax	3,813		(636)		(2,248)		(1,987)
Net other comprehensive income before reclassifications	(6,484)		1,081		3,824		3,376
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(26)		(7,334)		292		(16,847)
Income tax expense	10		2,699		(105)		6,264
Net reclassifications	(16)		(4,635)		187		(10,583)
Other comprehensive (loss) income	(6,500)		(3,554)		4,011		(7,207)
Ending Balance	174		(900)		174		(900)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Foreign Currency Contracts [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(47)	[2]	(7,742)	[2]	(61)	[2]	(19,846)	[2]
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Commodity Contract [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	21	[2]	81	[2]	8	[2]	737	[2]
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Swap [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	0	[3]	327	[3]	345	[3]	2,262	[3]
Accumulated Defined Benefit Plans Adjustment [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(635,375)		(517,436)		(655,853)		(533,302)
Other comprehensive income before reclassifications	0		0		0		0
Income tax	0		0		0		0
Net other comprehensive income before reclassifications	0		0		0		0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	16,263		12,591		48,788		37,801
Income tax expense	(6,024)		(4,658)		(18,071)		(14,002)
Net reclassifications	10,239		7,933		30,717		23,799
Other comprehensive (loss) income	10,239		7,933		30,717		23,799
Ending Balance	(625,136)		(509,503)		(625,136)		(509,503)
Accumulated Defined Benefit Plans Adjustment [Member] | Prior Service Costs [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(526)	[1]	(233)	[1]	(1,580)	[1]	(671)	[1]
Accumulated Defined Benefit Plans Adjustment [Member] | Actuarial Losses [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	$ 16,789	[1]	$ 12,824	[1]	$ 50,368	[1]	$ 38,472	[1]

[1] Amounts reclassified are included in the computation of net periodic period cost. See note 14 for information related to pension and postretirement benefit plans.

[2] Amounts reclassified to net income are included in motorcycles and related products cost of goods sold.

[3] Amounts reclassified to net income are presented in financial services interest expense.

[4] Amounts reclassified to net income are included in investment income.

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Earnings Per Share

9 Months Ended

Sep. 29, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation for basic and diluted earnings per share (in thousands, except per share amounts):

	Three months ended				Nine months ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Numerator:
Net income used in computing basic and diluted earnings per share	$	162,716	$	134,001	$	658,584	$	553,286
Denominator:
Denominator for basic earnings per share - weighted-average common shares	221,936		226,020		223,134		227,953
Effect of dilutive securities - employee stock compensation plan	1,550		1,969		1,562		2,117
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	223,486		227,989		224,696		230,070
Earnings per common share
Basic	$	0.73	$	0.59	$	2.95	$	2.43
Diluted	$	0.73	$	0.59	$	2.93	$	2.40

Outstanding options to purchase 0.9 million and 2.2 million shares of common stock for the three months endedSeptember 29, 2013 and September 30, 2012, respectively, and 1.1 million and 2.3 million shares of common stock for the nine months endedSeptember 29, 2013 and September 30, 2012, respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price and therefore the effect would have been anti-dilutive.

The Company has a share-based compensation plan under which employees may be granted share-based awards including shares of restricted stock and restricted stock units (RSUs). Non-forfeitable dividends are paid on unvested shares of restricted stock and non-forfeitable dividend equivalents are paid on unvested RSUs. As such, shares of restricted stock and RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation for the three and nine month periods ending September 29, 2013 and September 30, 2012, respectively.

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Finance Receivables (Recorded Investment Of Retail and Wholesale Finance Receivables By Credit Quality Indicator) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	$ 6,296,811	$ 5,889,519	$ 6,028,793
Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	5,405,670	5,073,115	5,243,470
Retail [Member] | Prime [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	4,249,780	4,035,584	4,178,726
Retail [Member] | Sub-Prime [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	1,155,890	1,037,531	1,064,744
Wholesale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	891,141	816,404	785,323
Wholesale [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	3,966	8,107	10,072
Wholesale [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	10,486	2,593	3,689
Wholesale [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	0	3,504	2,446
Wholesale [Member] | Risk Level, Medium [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	6,914	8,451	6,035
Wholesale [Member] | Risk Level, Low [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	$ 869,775	$ 793,749	$ 763,081

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Income Taxes (Detail)	9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012
Income Tax Disclosure [Abstract]
Income tax rate	34.30%	35.30%

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Additional Balance Sheet and Cash Flow Information (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012
Supplemental Cash Flow Information [Abstract]
Gross unrealized gains (losses)	$ (1.3)	$ 1.1
Gross unrealized gains (losses), net of taxes	$ (0.8)	$ 0.7
Contractual maturities period of marketable securities, minimum (in months)	1 month
Contractual maturities period of marketable securities, maximum (in months)	32 months

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 29, 2013

Fair Value Disclosures [Abstract]

Summary Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):

	September 29, 2013
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	832,344	$	506,792	$	325,552	$	—
Marketable securities	122,234		—		122,234		—
Derivatives	1,733		—		1,733		—
	$	956,311	$	506,792	$	449,519	$	—
Liabilities:
Derivatives	$	1,152	$	—	$	1,152	$	—
	December 31, 2012
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	852,979	$	690,691	$	162,288	$	—
Marketable securities	135,634		—		135,634		—
Derivatives	317		—		317		—
	$	988,930	$	690,691	$	298,239	$	—
Liabilities:
Derivatives	$	7,920	$	—	$	7,920	$	—
	September 30, 2012
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	1,417,900	$	1,161,646	$	256,254	$	—
Marketable securities	136,376		—		136,376		—
Derivatives	1,639		—		1,639		—
	$	1,555,915	$	1,161,646	$	394,269	$	—
Liabilities:
Derivatives	$	2,458	$	—	$	2,458	$	—

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Asset-Backed Financing (Tables)

9 Months Ended

Sep. 29, 2013

Secured Debt [Abstract]

Assets and Liabilities Of Variable Interest Entities

The following table shows the assets and liabilities related to the asset-backed financings that were included in the financial statements (in thousands):

	September 29, 2013
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	1,918,447	$	(37,721	)	$	181,231	$	4,866	$	2,066,823	$	1,446,656
Asset-backed U.S. commercial paper conduit facility	—		—			—		590		590		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	204,828		(3,424		)	13,098		93		214,595		180,584
	$	2,123,275	$	(41,145	)	$	194,329	$	5,549	$	2,282,008	$	1,627,240
	December 31, 2012
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	2,143,708	$	(42,139	)	$	176,290	$	4,869	$	2,282,728	$	1,447,776
Asset-backed U.S. commercial paper conduit facility	—		—			—		419		419		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	194,285		(3,432		)	11,718		255		202,826		175,658
	$	2,337,993	$	(45,571	)	$	188,008	$	5,543	$	2,485,973	$	1,623,434
	September 30, 2012
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	2,466,871	$	(49,490	)	$	205,760	$	5,531	$	2,628,672	$	1,692,065
Asset-backed U.S. commercial paper conduit facility	—		—			—		542		542		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	193,986		(3,747		)	11,640		327		202,206		176,855
	$	2,660,857	$	(53,237	)	$	217,400	$	6,400	$	2,831,420	$	1,868,920

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Finance Receivables (Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment) (Detail) (USD $)	Sep. 29, 2013	Jun. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Jul. 01, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 0		$ 0	$ 0
Collectively evaluated for impairment	111,921,000		107,667,000	113,126,000
Total allowance for credit losses	111,921,000	111,324,000	107,667,000	113,126,000	114,248,000	125,449,000
Individually evaluated for impairment	0		0	0
Collectively evaluated for impairment	6,296,811,000		5,889,519,000	6,028,793,000
Financing Receivable, Gross	6,296,811,000		5,889,519,000	6,028,793,000
Wholesale [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	0		0	0
Collectively evaluated for impairment	5,990,000		6,225,000	7,268,000
Total allowance for credit losses	5,990,000	7,554,000	6,225,000	7,268,000	8,068,000	9,337,000
Individually evaluated for impairment	0		0	0
Collectively evaluated for impairment	891,141,000		816,404,000	785,323,000
Financing Receivable, Gross	891,141,000		816,404,000	785,323,000
Retail [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	0		0	0
Collectively evaluated for impairment	105,931,000		101,442,000	105,858,000
Total allowance for credit losses	105,931,000	103,770,000	101,442,000	105,858,000	106,180,000	116,112,000
Individually evaluated for impairment	0		0	0
Collectively evaluated for impairment	5,405,670,000		5,073,115,000	5,243,470,000
Financing Receivable, Gross	$ 5,405,670,000		$ 5,073,115,000	$ 5,243,470,000

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Business Segments (Tables)

9 Months Ended

Sep. 29, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Selected segment information is set forth below (in thousands):

	Three months ended				Nine months ended
	September 29, 2013		September 30, 2012		September 29, 2013			September 30, 2012
Motorcycles net revenue	$	1,180,284	$	1,089,268	$	4,225,998		$	3,931,684
Gross profit	416,315		377,904		1,537,627			1,398,231
Selling, administrative and engineering expense	240,198		223,982		729,443			709,015
Restructuring expense (benefit)	646		9,170		(1,713		)	26,841
Operating income from Motorcycles	175,471		144,752		809,897			662,375
Financial services revenue	163,434		161,027		483,240			477,962
Financial services expense	87,366		88,677		261,471			256,264
Operating income from Financial Services	76,068		72,350		221,769			221,698
Operating income	$	251,539	$	217,102	$	1,031,666		$	884,073

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Additional Balance Sheet And Cash Flow Information (Reconciliation Of Net Income To Net Cash Used By Operating Activities) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net Income	$ 162,716	$ 134,001	$ 658,584	$ 553,286
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			122,658	127,443
Amortization of deferred loan origination costs			63,548	58,438
Amortization of financing origination fees			6,994	7,462
Provision for employee long-term benefits			50,158	50,348
Contributions to pension and postretirement plans			(197,243)	(220,733)
Stock compensation expense			31,030	30,287
Net change in wholesale finance receivables related to sales			(71,869)	5,570
Provision for credit losses	14,604	9,069	39,011	12,823
Gains (Losses) on Extinguishment of Debt			4,947	0
Foreign currency adjustments			12,874	8,692
Other, net			(63)	9,411
Changes in current assets and liabilities:
Accounts receivable, net			(65,835)	(37,904)
Finance receivables-accrued interest and other			937	1,597
Inventories			(19,233)	36,463
Accounts payable and accrued liabilities			142,277	99,642
Restructuring reserves			(24,521)	(9,177)
Derivative instruments			(1,818)	611
Other			72,667	(21,761)
Total adjustments			166,519	159,212
Net cash provided by operating activities			$ 825,103	$ 712,498

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Asset-Backed Financing (Narrative) (Detail)					3 Months Ended			9 Months Ended
	Sep. 29, 2013 Term Asset-Backed Securitization VIEs [Member] Secured Debt [Member] SPEs [Member] USD ($)	Jun. 30, 2013 Term Asset-Backed Securitization VIEs [Member] Secured Debt [Member] SPEs [Member] USD ($)	Sep. 30, 2012 Term Asset-Backed Securitization VIEs [Member] Secured Debt [Member] SPEs [Member] USD ($)	Jul. 01, 2012 Term Asset-Backed Securitization VIEs [Member] Secured Debt [Member] SPEs [Member] USD ($)	Sep. 29, 2013 Line of Credit [Member] Asset-Backed Canadian Commercial Paper Conduit Facility [Member] Variable Interest Entity, Not Primary Beneficiary [Member] USD ($)	Jun. 30, 2013 Line of Credit [Member] Asset-Backed Canadian Commercial Paper Conduit Facility [Member] Variable Interest Entity, Not Primary Beneficiary [Member] USD ($)	Sep. 30, 2012 Line of Credit [Member] Asset-Backed Canadian Commercial Paper Conduit Facility [Member] Variable Interest Entity, Not Primary Beneficiary [Member] USD ($)	Sep. 29, 2013 Line of Credit [Member] Asset-Backed Canadian Commercial Paper Conduit Facility [Member] Foreign Line of Credit [Member] CAD	Sep. 29, 2013 Third-party Bank [Member] Line of Credit [Member] Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member] SPEs [Member] USD ($)	Dec. 31, 2012 Third-party Bank [Member] Line of Credit [Member] Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member] SPEs [Member] USD ($)	Sep. 30, 2012 Third-party Bank [Member] Line of Credit [Member] Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member] SPEs [Member] USD ($)
Variable Interest Entity [Line Items]
Company issued secured notes	$ 0	$ 650,000,000	$ 675,300,000	$ 89,500,000
Unaccreted premium	500,000		1,500,000
Total aggregate commitment								200,000,000	600,000,000
Debt Instrument, Term								5 years
Borrowings outstanding under conduit facility									0	0	0
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount					34,000,000
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement, Transfers During Period					26,300,000	53,800,000	209,100,000
Cash Flows Between Transferor and Transferee, Proceeds from New Transfers					$ 23,100,000	$ 47,100,000	$ 183,000,000

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Product Warranty and Safety Recall Campaigns (Tables)

9 Months Ended

Sep. 29, 2013

Product Warranties Disclosures [Abstract]

Warranty And Safety Recall Liability

Changes in the Company’s warranty and safety recall liability were as follows (in thousands):

	Three months ended						Nine months ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Balance, beginning of period	$	70,406		$	67,801		$	60,263		$	54,994
Warranties issued during the period	12,008			10,228			46,529			42,846
Settlements made during the period	(16,898		)	(19,799		)	(45,238		)	(52,885		)
Recalls and changes to pre-existing warranty liabilities	77			4,980			4,039			18,255
Balance, end of period	$	65,593		$	63,210		$	65,593		$	63,210

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Business Segments (Information By Strategic Business Units) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Segment Reporting Information [Line Items]
Motorcycles net revenue	$ 1,180,284	$ 1,089,268	$ 4,225,998	$ 3,931,684
Selling, administrative and engineering expense	273,016	257,359	825,899	806,257
Restructuring (benefit) expense	646	9,170	(1,713)	26,841
Financial services revenue	163,434	161,027	483,240	477,962
Operating income	251,539	217,102	1,031,666	884,073
Motorcycles [Member]
Segment Reporting Information [Line Items]
Motorcycles net revenue	1,180,284	1,089,268	4,225,998	3,931,684
Gross profit	416,315	377,904	1,537,627	1,398,231
Selling, administrative and engineering expense	240,198	223,982	729,443	709,015
Restructuring (benefit) expense	646	9,170	(1,713)	26,841
Operating income	175,471	144,752	809,897	662,375
Financial Services [Member]
Segment Reporting Information [Line Items]
Financial services revenue	163,434	161,027	483,240	477,962
Financial services expense	87,366	88,677	261,471	256,264
Operating income	$ 76,068	$ 72,350	$ 221,769	$ 221,698

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Employee Benefit Plans (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012
Compensation and Retirement Disclosure [Abstract]
Company contributions	$ 175	$ 200

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Finance Receivables (Finance Receivables) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Jun. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Jul. 01, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	$ 6,296,811		$ 5,889,519	$ 6,028,793
Allowance for credit losses	(111,921)	(111,324)	(107,667)	(113,126)	(114,248)	(125,449)
Total Finance Receivables, Net	6,184,890		5,781,852	5,915,667
Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	5,405,670		5,073,115	5,243,470
Allowance for credit losses	(105,931)	(103,770)	(101,442)	(105,858)	(106,180)	(116,112)
Wholesale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	891,141		816,404	785,323
Allowance for credit losses	$ (5,990)	$ (7,554)	$ (6,225)	$ (7,268)	$ (8,068)	$ (9,337)

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Supplemental Consolidating Data (Cash Flows) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net Income	$ 162,716	$ 134,001	$ 658,584	$ 553,286
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			122,658	127,443
Amortization of deferred loan origination costs			63,548	58,438
Amortization of financing origination fees			6,994	7,462
Provision for employee long-term benefits			50,158	50,348
Contributions to pension and postretirement plans			(197,243)	(220,733)
Stock compensation expense			31,030	30,287
Net change in wholesale finance receivables related to sales			(71,869)	5,570
Provision for credit losses	14,604	9,069	39,011	12,823
Gains (Losses) on Extinguishment of Debt			4,947	0
Foreign currency adjustments			12,874	8,692
Other, net			(63)	9,411
Changes in current assets and liabilities:
Accounts receivable			(65,835)	(37,904)
Finance receivables-accrued interest and other			937	1,597
Inventories			(19,233)	36,463
Accounts payable and accrued liabilities			142,277	99,642
Restructuring reserves			(24,521)	(9,177)
Derivative instruments			(1,818)	611
Other			72,667	(21,761)
Total adjustments			166,519	159,212
Net cash provided by operating activities			825,103	712,498
Cash flows from investing activities:
Capital expenditures			(111,690)	(95,329)
Origination of finance receivables			(2,617,100)	(2,328,653)
Collections of finance receivables			2,170,919	2,131,025
Purchases of marketable securities			(4,998)	(4,993)
Sales and redemptions of marketable securities			17,105	23,046
Other			6,721	0
Net cash used by investing activities			(539,043)	(274,904)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes			0	(993,737)
Repayments of medium-term notes			(27,858)	0
Loan to HDFS			0
Proceeds from securitization of debt			647,516	763,895
Repayments of securitization debt			(650,424)	(1,161,592)
Net decrease in credit facilities and unsecured commercial paper			99,416	(634,874)
Borrowings of asset-backed commercial paper			69,555	182,131
Repayments of asset-backed commercial paper			(58,990)	(6,538)
Net change in restricted cash			(6,321)	12,255
Dividends paid			(140,772)	(106,560)
Purchase of common stock for treasury			(302,196)	(257,981)
Excess tax benefits from share based payments			18,444	16,390
Issuance of common stock under employee stock option plans			39,145	36,342
Net cash used by financing activities			(312,485)	(162,795)
Effect of exchange rate changes on cash and cash equivalents			(11,758)	(6,608)
Net increase (decrease) in cash and cash equivalents			(38,183)	268,191
Cash and cash equivalents:
Cash and cash equivalents—beginning of period			1,068,138	1,526,950
Net increase (decrease) in cash and cash equivalents			(38,183)	268,191
Cash and cash equivalents—end of period	1,029,955	1,795,141	1,029,955	1,795,141
Motorcycles And Related Products Operations [Member]
Cash flows from operating activities:
Net Income	115,879	89,110	706,938	641,368
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			118,224	122,570
Amortization of deferred loan origination costs			0	0
Amortization of financing origination fees			355	355
Provision for employee long-term benefits			50,158	48,808
Contributions to pension and postretirement plans			(197,243)	(220,733)
Stock compensation expense			28,886	27,881
Net change in wholesale finance receivables related to sales			0	0
Provision for credit losses	0	0	0	0
Gains (Losses) on Extinguishment of Debt			0
Foreign currency adjustments			12,874	8,692
Other, net			207	2,252
Changes in current assets and liabilities:
Accounts receivable			(302,434)	(230,156)
Finance receivables-accrued interest and other			0	0
Inventories			(19,233)	36,463
Accounts payable and accrued liabilities			113,902	86,513
Restructuring reserves			(24,521)	(9,177)
Derivative instruments			(1,790)	739
Other			74,205	(19,550)
Total adjustments			(146,410)	(145,343)
Net cash provided by operating activities			560,528	496,025
Cash flows from investing activities:
Capital expenditures			(107,886)	(91,469)
Origination of finance receivables			0	0
Collections of finance receivables			0	0
Purchases of marketable securities			(4,998)	(4,993)
Sales and redemptions of marketable securities			17,105	23,046
Other			6,721
Net cash used by investing activities			(89,058)	(73,416)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes				0
Repayments of medium-term notes			0
Loan to HDFS			(150,000)
Proceeds from securitization of debt			0	0
Repayments of securitization debt			0	0
Net decrease in credit facilities and unsecured commercial paper			0	0
Borrowings of asset-backed commercial paper			0	0
Repayments of asset-backed commercial paper			0	0
Net change in restricted cash			0	0
Dividends paid			(140,772)	(106,560)
Purchase of common stock for treasury			(302,196)	(257,981)
Excess tax benefits from share based payments			18,444	16,390
Issuance of common stock under employee stock option plans			39,145	36,342
Net cash used by financing activities			(535,379)	(311,809)
Effect of exchange rate changes on cash and cash equivalents			(10,846)	(5,701)
Net increase (decrease) in cash and cash equivalents			(74,755)	105,099
Cash and cash equivalents:
Cash and cash equivalents—beginning of period			727,716	943,330
Net increase (decrease) in cash and cash equivalents			(74,755)	105,099
Cash and cash equivalents—end of period	652,961	1,048,429	652,961	1,048,429
Financial Services Operations [Member]
Cash flows from operating activities:
Net Income	46,837	44,891	136,646	136,918
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			4,434	4,873
Amortization of deferred loan origination costs			63,548	58,438
Amortization of financing origination fees			6,639	7,107
Provision for employee long-term benefits			0	1,540
Contributions to pension and postretirement plans			0	0
Stock compensation expense			2,144	2,406
Net change in wholesale finance receivables related to sales			0	0
Provision for credit losses	14,604	9,069	39,011	12,823
Gains (Losses) on Extinguishment of Debt			4,947
Foreign currency adjustments			0	0
Other, net			(270)	7,159
Changes in current assets and liabilities:
Accounts receivable			0	0
Finance receivables-accrued interest and other			937	1,597
Inventories			0	0
Accounts payable and accrued liabilities			264,974	205,381
Restructuring reserves			0	0
Derivative instruments			(28)	(128)
Other			(1,538)	(2,211)
Total adjustments			384,798	298,985
Net cash provided by operating activities			521,444	435,903
Cash flows from investing activities:
Capital expenditures			(3,804)	(3,860)
Origination of finance receivables			(5,832,489)	(5,315,732)
Collections of finance receivables			5,314,439	5,123,674
Purchases of marketable securities			0	0
Sales and redemptions of marketable securities			0	0
Other			0
Net cash used by investing activities			(521,854)	(195,918)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes				(993,737)
Repayments of medium-term notes			(27,858)
Loan to HDFS			150,000
Proceeds from securitization of debt			647,516	763,895
Repayments of securitization debt			(650,424)	(1,161,592)
Net decrease in credit facilities and unsecured commercial paper			99,416	(634,874)
Borrowings of asset-backed commercial paper			69,555	182,131
Repayments of asset-backed commercial paper			(58,990)	6,538
Net change in restricted cash			(6,321)	12,255
Dividends paid			(185,000)	(225,000)
Purchase of common stock for treasury			0	0
Excess tax benefits from share based payments			0	0
Issuance of common stock under employee stock option plans			0	0
Net cash used by financing activities			37,894	(75,986)
Effect of exchange rate changes on cash and cash equivalents			(912)	(907)
Net increase (decrease) in cash and cash equivalents			36,572	163,092
Cash and cash equivalents:
Cash and cash equivalents—beginning of period			340,422	583,620
Net increase (decrease) in cash and cash equivalents			36,572	163,092
Cash and cash equivalents—end of period	376,994	746,712	376,994	746,712
Eliminations & Adjustments [Member]
Cash flows from operating activities:
Net Income	0	0	(185,000)	(225,000)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			0	0
Amortization of deferred loan origination costs				0
Amortization of financing origination fees			0	0
Provision for employee long-term benefits			0	0
Contributions to pension and postretirement plans			0	0
Stock compensation expense			0	0
Net change in wholesale finance receivables related to sales			(71,869)	5,570
Provision for credit losses	0	0	0	0
Gains (Losses) on Extinguishment of Debt			0
Foreign currency adjustments			0	0
Other, net			0	0
Changes in current assets and liabilities:
Accounts receivable			236,599	192,252
Finance receivables-accrued interest and other			0	0
Inventories			0	0
Accounts payable and accrued liabilities			(236,599)	(192,252)
Restructuring reserves			0	0
Derivative instruments			0	0
Other			0	0
Total adjustments			(71,869)	5,570
Net cash provided by operating activities			(256,869)	(219,430)
Cash flows from investing activities:
Capital expenditures			0	0
Origination of finance receivables			3,215,389	2,987,079
Collections of finance receivables			(3,143,520)	(2,992,649)
Purchases of marketable securities			0	0
Sales and redemptions of marketable securities			0	0
Other			0
Net cash used by investing activities			71,869	(5,570)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes				0
Repayments of medium-term notes			0
Loan to HDFS			0
Proceeds from securitization of debt			0	0
Repayments of securitization debt			0	0
Net decrease in credit facilities and unsecured commercial paper			0	0
Borrowings of asset-backed commercial paper			0	0
Repayments of asset-backed commercial paper			0	0
Net change in restricted cash			0	0
Dividends paid			185,000	225,000
Purchase of common stock for treasury			0	0
Excess tax benefits from share based payments			0	0
Issuance of common stock under employee stock option plans			0	0
Net cash used by financing activities			185,000	225,000
Effect of exchange rate changes on cash and cash equivalents			0	0
Net increase (decrease) in cash and cash equivalents			0	0
Cash and cash equivalents:
Cash and cash equivalents—beginning of period			0	0
Net increase (decrease) in cash and cash equivalents			0	0
Cash and cash equivalents—end of period	$ 0	$ 0	$ 0	$ 0

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Finance Receivables (Tables)

9 Months Ended

Sep. 29, 2013

Receivables [Abstract]

Finance Receivables

Finance receivables, net, consisted of the following (in thousands):

	September 29, 2013			December 31, 2012			September 30, 2012
Retail	$	5,405,670		$	5,073,115		$	5,243,470
Wholesale	891,141			816,404			785,323
	6,296,811			5,889,519			6,028,793
Allowance for credit losses	(111,921		)	(107,667		)	(113,126		)
	$	6,184,890		$	5,781,852		$	5,915,667

Changes In The Allowance For Credit Losses On Finance Receivables

The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands):

	September 29, 2013
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	105,931		5,990		111,921
Total allowance for credit losses	$	105,931	$	5,990	$	111,921
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,405,670		891,141		6,296,811
Total finance receivables	$	5,405,670	$	891,141	$	6,296,811
	December 31, 2012
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	101,442		6,225		107,667
Total allowance for credit losses	$	101,442	$	6,225	$	107,667
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,073,115		816,404		5,889,519
Total finance receivables	$	5,073,115	$	816,404	$	5,889,519
	September 30, 2012
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	105,858		7,268		113,126
Total allowance for credit losses	$	105,858	$	7,268	$	113,126
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,243,470		785,323		6,028,793
Total finance receivables	$	5,243,470	$	785,323	$	6,028,793

Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):

	Three months ended September 29, 2013
	Retail			Wholesale			Total
Balance, beginning of period	$	103,770		$	7,554		$	111,324
Provision for credit losses	16,168			(1,564		)	14,604
Charge-offs	(23,708		)	—			(23,708		)
Recoveries	9,701			—			9,701
Balance, end of period	$	105,931		$	5,990		$	111,921
	Three months ended September 30, 2012
	Retail			Wholesale			Total
Balance, beginning of period	$	106,180		$	8,068		$	114,248
Provision for credit losses	9,869			(800		)	9,069
Charge-offs	(19,873		)	—			(19,873		)
Recoveries	9,682			—			9,682
Balance, end of period	$	105,858		$	7,268		$	113,126
	Nine months ended September 29, 2013
	Retail			Wholesale			Total
Balance, beginning of period	$	101,442		$	6,225		$	107,667
Provision for credit losses	39,246			(235		)	39,011
Charge-offs	(67,117		)	—			(67,117		)
Recoveries	32,360			—			32,360
Balance, end of period	$	105,931		$	5,990		$	111,921
	Nine months ended September 30, 2012
	Retail			Wholesale			Total
Balance, beginning of period	$	116,112		$	9,337		$	125,449
Provision for credit losses	14,892			(2,069		)	12,823
Charge-offs	(62,779		)	—			(62,779		)
Recoveries	37,633			—			37,633
Balance, end of period	$	105,858		$	7,268		$	113,126

Aging Of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables

An analysis of the aging of past due finance receivables was as follows (in thousands):

	September 29, 2013
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,260,125	$	99,255	$	28,531	$	17,759	$	145,545	$	5,405,670
Wholesale	889,531		681		302		627		1,610		891,141
Total	$	6,149,656	$	99,936	$	28,833	$	18,386	$	147,155	$	6,296,811
	December 31, 2012
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	4,894,675	$	113,604	$	37,239	$	27,597	$	178,440	$	5,073,115
Wholesale	814,706		984		278		436		1,698		816,404
Total	$	5,709,381	$	114,588	$	37,517	$	28,033	$	180,138	$	5,889,519
	September 30, 2012
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,093,496	$	100,706	$	29,878	$	19,390	$	149,974	$	5,243,470
Wholesale	784,155		445		217		506		1,168		785,323
Total	$	5,877,651	$	101,151	$	30,095	$	19,896	$	151,142	$	6,028,793

Recorded Investment Of Retail Finance Receivables By Credit Quality Indicator

The recorded investment of retail finance receivables, by credit quality indicator, was as follows (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Prime	$	4,249,780	$	4,035,584	$	4,178,726
Sub-prime	1,155,890		1,037,531		1,064,744
Total	$	5,405,670	$	5,073,115	$	5,243,470

The recorded investment of wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Doubtful	$	3,966	$	8,107	$	10,072
Substandard	10,486		2,593		3,689
Special Mention	—		3,504		2,446
Medium Risk	6,914		8,451		6,035
Low Risk	869,775		793,749		763,081
Total	$	891,141	$	816,404	$	785,323

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Basis Of Presentation And Use Of Estimates

9 Months Ended

Sep. 29, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Use of Estimates

Basis of Presentation and Use of Estimates

The condensed consolidated financial statements include the accounts of Harley-Davidson, Inc. and its wholly-owned subsidiaries (the Company), including the accounts of the group of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions are eliminated.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the condensed consolidated balance sheets as of September 29, 2013 and September 30, 2012, the condensed consolidated statements of operations for the three and nine month periods then ended, the condensed consolidated statements of comprehensive income for the three and nine month periods then ended and the condensed consolidated statements of cash flows for the nine month periods then ended.

Certain information and footnote disclosures normally included in complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The Company operates in two business segments: Motorcycles & Related Products (Motorcycles) and Financial Services (Financial Services).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

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Additional Balance Sheet and Cash Flow Information

9 Months Ended

Sep. 29, 2013

Supplemental Cash Flow Information [Abstract]

Additional Balance Sheet and Cash Flow Information

Additional Balance Sheet and Cash Flow Information

Marketable Securities

The Company’s marketable securities consisted of the following (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Available-for-sale:
Corporate bonds	$	122,234	$	135,634	$	136,376
	$	122,234	$	135,634	$	136,376

The Company’s available-for-sale securities are carried at fair value with any unrealized gains or losses reported in other comprehensive income. During the first nine months of 2013 and 2012, the Company recognized gross unrealized (losses) and gains in other comprehensive income of $(1.3) million and $1.1 million, respectively, or $(0.8) million and $0.7 million net of taxes, respectively, to adjust amortized cost to fair value. The marketable securities have contractual maturities that generally come due over the next 1 to 32 months.

Inventories

Inventories are valued at the lower of cost or market. Substantially all inventories located in the United States are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or market using the first-in, first-out (FIFO) method. Inventories consist of the following (in thousands):

	September 29, 2013			December 31, 2012			September 30, 2012
Components at the lower of FIFO cost or market
Raw materials and work in process	$	130,510		$	111,335		$	121,184
Motorcycle finished goods	181,239			205,660			169,515
Parts and accessories and general merchandise	135,339			122,418			132,789
Inventory at lower of FIFO cost or market	447,088			439,413			423,488
Excess of FIFO over LIFO cost	(45,889		)	(45,889		)	(44,359		)
	$	401,199		$	393,524		$	379,129

Operating Cash Flow

The reconciliation of net income to net cash provided by operating activities is as follows (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012
Cash flows from operating activities:
Net income	$	658,584		$	553,286
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	122,658			127,443
Amortization of deferred loan origination costs	63,548			58,438
Amortization of financing origination fees	6,994			7,462
Provision for employee long-term benefits	50,158			50,348
Contributions to pension and postretirement plans	(197,243		)	(220,733		)
Stock compensation expense	31,030			30,287
Net change in wholesale finance receivables related to sales	(71,869		)	5,570
Provision for credit losses	39,011			12,823
Loss on debt extinguishment	4,947			—
Foreign currency adjustments	12,874			8,692
Other, net	(63		)	9,411
Changes in current assets and liabilities:
Accounts receivable, net	(65,835		)	(37,904		)
Finance receivables—accrued interest and other	937			1,597
Inventories	(19,233		)	36,463
Accounts payable and accrued liabilities	142,277			99,642
Restructuring reserves	(24,521		)	(9,177		)
Derivative instruments	(1,818		)	611
Other	72,667			(21,761		)
Total adjustments	166,519			159,212
Net cash provided by operating activities	$	825,103		$	712,498

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Asset-Backed Financing

9 Months Ended

Sep. 29, 2013

Secured Debt [Abstract]

Asset-Backed Financing

Asset-Backed Financing

HDFS participates in asset-backed financing through both term asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. HDFS treats these transactions as secured borrowing because either they are transferred to consolidated VIEs or HDFS maintains effective control over the assets and does not meet the accounting sale requirements under ASC Topic 860, "Transfers and Servicing" (ASC Topic 860). In HDFS' asset-backed financing programs, HDFS transfers retail motorcycle finance receivables to special purpose entities (SPE), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash, through the issuance of debt.

HDFS is required to consolidate any VIE in which it is deemed to be the primary beneficiary through having power over the significant activities of the entity and having an obligation to absorb losses or the right to receive benefits from the VIE which are potentially significant to the VIE. HDFS is considered to have the power over the significant activities of its term asset-backed securitization and asset-backed U.S. commercial paper conduit facility VIEs due to its role as servicer. Servicing fees are typically not considered potentially significant variable interests in a VIE. However, HDFS retains a residual interest in the VIEs in the form of a debt security, which gives HDFS the right to receive benefits that could be potentially significant to the VIE. Therefore, the Company is the primary beneficiary and consolidates all of these VIEs within its consolidated financial statements.

HDFS is not the primary beneficiary of the asset-backed Canadian commercial paper conduit facility VIE; therefore, HDFS does not consolidate this VIE. However, HDFS treats the conduit facility as a secured borrowing as it maintains effective control over the assets transferred to the VIE and therefore does not meet the requirements for sale accounting under ASC Topic 860. As such, the Company retains the transferred assets and the related debt within its Consolidated Balance Sheet.

Servicing fees paid by VIEs to HDFS are eliminated in consolidation and therefore are not recorded on a consolidated basis. HDFS is not required, and does not currently intend, to provide any additional financial support to its VIEs. Investors and creditors only have recourse to the assets held by the VIEs.

The following table shows the assets and liabilities related to the asset-backed financings that were included in the financial statements (in thousands):

	September 29, 2013
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	1,918,447	$	(37,721	)	$	181,231	$	4,866	$	2,066,823	$	1,446,656
Asset-backed U.S. commercial paper conduit facility	—		—			—		590		590		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	204,828		(3,424		)	13,098		93		214,595		180,584
	$	2,123,275	$	(41,145	)	$	194,329	$	5,549	$	2,282,008	$	1,627,240
	December 31, 2012
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	2,143,708	$	(42,139	)	$	176,290	$	4,869	$	2,282,728	$	1,447,776
Asset-backed U.S. commercial paper conduit facility	—		—			—		419		419		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	194,285		(3,432		)	11,718		255		202,826		175,658
	$	2,337,993	$	(45,571	)	$	188,008	$	5,543	$	2,485,973	$	1,623,434
	September 30, 2012
	Finance receivables		Allowance for credit losses			Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations	$	2,466,871	$	(49,490	)	$	205,760	$	5,531	$	2,628,672	$	1,692,065
Asset-backed U.S. commercial paper conduit facility	—		—			—		542		542		—
Unconsolidated VIEs
Asset-backed Canadian commercial paper conduit facility	193,986		(3,747		)	11,640		327		202,206		176,855
	$	2,660,857	$	(53,237	)	$	217,400	$	6,400	$	2,831,420	$	1,868,920

Term Asset-Backed Securitization VIEs

The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each term asset-backed securitization SPE is a separate legal entity and the U.S. retail motorcycle finance receivables included in the term asset-backed securitizations are only available for payment of the secured debt and other obligations arising from the term asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Cash and cash equivalent balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes’ contractual lives have various maturities ranging from 2013 to 2020.

There were no term asset-backed transactions during the third quarter of 2013. During the second quarter of 2013, the Company issued $650.0 million of secured notes through one term asset-backed securitization transaction.

During the third quarter of 2012, the Company issued $675.3 million of secured notes through one term asset-backed securitization transaction. In addition, during the second quarter of 2012, the Company issued $89.5 million of secured notes through the sale of notes that had been previously retained as part of certain 2009 and 2011 term asset-backed securitization transactions. These notes were sold at a premium. At September 29, 2013 and September 30, 2012, the unaccreted premium associated with the issuance of these notes was $0.5 million and $1.5 million, respectively. There was no additional term asset-backed securitization activity for the nine months ended September 29, 2013 or September 30, 2012.

Asset-Backed U.S. Commercial Paper Conduit Facility VIE

In September 2013, the Company amended and restated its third-party bank sponsored asset-backed commercial paper conduit facility (U.S. Conduit) which provides for a total aggregate commitment of $600.0 million based on, among other things, the amount of eligible U.S. retail motorcycle loans held by a SPE as collateral. The amended agreement has terms that are similar to those of the prior agreement and is for the same amount. Under the facility, HDFS may transfer U.S. retail motorcycle finance receivables to a SPE, which in turn may issue debt to third-party bank-sponsored asset-backed commercial paper conduits. The assets of the SPE are restricted as collateral for the payment of the debt or other obligations arising in the transaction and are not available to pay other obligations or claims of the Company’s creditors. The terms for this debt provide for interest on the outstanding principal based on prevailing commercial paper rates, or LIBOR plus a specified margin to the extent the advance is not funded by a conduit lender through the issuance of commercial paper. The U.S. Conduit also provides for an unused commitment fee based on the unused portion of the total aggregate commitment. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the U.S. Conduit, any outstanding principal will continue to be reduced monthly through available collections. Unless earlier terminated or extended by mutual agreement of HDFS and the lenders, the U.S. Conduit has an expiration date of September 12, 2014.

The SPE had no borrowings outstanding under the U.S. Conduit at September 29, 2013, December 31, 2012 or September 30, 2012; therefore, U.S. Conduit assets are restricted as collateral for the payment of fees associated with the unused portion of the total aggregate commitment.

Asset-Backed Canadian Commercial Paper Conduit Facility

In June 2013, HDFS amended its agreement with a Canadian bank-sponsored asset-backed commercial paper conduit facility (Canadian Conduit). The amended agreement has terms that are similar to those of the original agreement, entered into in August 2012, and is for the same amount. Under the agreement, the Canadian Conduit is contractually committed, at HDFS' option, to purchase from HDFS eligible Canadian retail motorcycle finance receivables for proceeds up to C$200.0 million. The terms for this debt provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$200.0 million. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. Unless earlier terminated or extended by mutual agreement of HDFS and the lenders, the Canadian Conduit expires on June 30, 2014. The contractual maturity of the debt is approximately 5 years.

HDFS participates in and does not consolidate the Canadian bank-sponsored, multi-seller conduit VIE. HDFS' maximum exposure to loss associated with this unconsolidated VIE, which would only be incurred in the unlikely event that all the finance receivables and underlying collateral have no residual value, was $34.0 million at September 29, 2013. The maximum exposure is not an indication of the Company's expected loss exposure.

During the third quarter of 2013, HDFS transferred $26.3 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $23.1 million. During the second quarter of 2013, HDFS transferred $53.8 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $47.1 million. In the third quarter of 2012, HDFS transferred $209.1 million of Canadian retail motorcycle finance receivables for proceeds of $183.0 million.

There were no other transfers of receivables for the nine months ended September 29, 2013 or September 30, 2012.

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Restructuring Expense

9 Months Ended

Sep. 29, 2013

Restructuring and Related Activities [Abstract]

Restructuring Expense

Restructuring Expense

2011 Restructuring Plans

In December 2011, the Company made a decision to cease operations at New Castalloy, its Australian subsidiary and producer of cast motorcycle wheels and wheel hubs, and source those components through other existing suppliers by the end of 2013 (2011 New Castalloy Restructuring Plan). Since 2011, the Company has successfully transitioned a significant amount of wheel production to other existing suppliers. However, during the second quarter of 2013, the Company made a decision to retain limited operations at New Castalloy focused on the production of certain complex, high-finish wheels in a cost-effective and competitive manner. The Company also entered into a new agreement with the unionized labor force at New Castalloy.

In connection with the modified 2011 New Castalloy Restructuring Plan, the New Castalloy workforce was reduced by approximately 100 employees, leaving approximately 100 remaining employees to support the ongoing operations. The original plan would have resulted in a workforce reduction of approximately 200 employees.

Under the modified 2011 New Castalloy Restructuring Plan, restructuring expenses consisted of employee severance and termination costs, accelerated depreciation and other related costs. On a cumulative basis, the Company has incurred $21.0 million of restructuring expense under the modified 2011 New Castalloy Restructuring Plan as of September 29, 2013, of which approximately 35% was non-cash. This includes a benefit related to restructuring reserves released in the second quarter of 2013 in connection with the decision to retain a limited operation at the New Castalloy facility, as described above.

In February 2011, the Company’s unionized employees at its facility in Kansas City, Missouri ratified a new seven-year labor agreement. The new agreement took effect on August 1, 2011. The new contract is similar to the labor agreements ratified at the Company’s Wisconsin facilities in September 2010 and its York, Pennsylvania (York) production facility in December 2009, and allows for similar flexibility, increased production efficiency and the addition of a flexible workforce component.

The actions to implement the new ratified labor agreement (2011 Kansas City Restructuring Plan) resulted in approximately 145 fewer full-time hourly unionized employees in its Kansas City facility than would have been required under the previous contract.

Under the 2011 Kansas City Restructuring Plan, restructuring expenses consisted of employee severance and termination costs and other related costs. On a cumulative basis, the Company has incurred $5.9 million of restructuring expense under the 2011 Kansas City Restructuring Plan as of September 29, 2013 of which approximately 10% was non-cash.

The following table summarizes the Motorcycles segment’s 2011 Kansas City Restructuring Plan and modified 2011 New Castalloy Restructuring Plan reserve activity and balances as recorded in accrued liabilities (in thousands):

	Nine months ended September 29, 2013
	Kansas City								New Castalloy												Consolidated
	Employee Severance and Termination Costs			Other		Total			Employee Severance and Termination Costs			Accelerated Depreciation			Other			Total			Total
Balance, beginning of period	$	2,259		$	—	$	2,259		$	9,306		$	—		$	145		$	9,451		$	11,710
Restructuring expense	—			—		—			1,361			2,093			590			4,044			4,044
Utilized—cash	(1,283		)	—		(1,283		)	(5,360		)	—			(602		)	(5,962		)	(7,245		)
Utilized—non-cash	—			—		—			—			(2,093		)	—			(2,093		)	(2,093		)
Non-cash reserve release	(976		)	—		(976		)	(5,250		)	—			—			(5,250		)	(6,226		)
Balance, end of period	$	—		$	—	$	—		$	57		$	—		$	133		$	190		$	190

	Nine months ended September 30, 2012
	Kansas City								New Castalloy												Consolidated
	Employee Severance and Termination Costs			Other		Total			Employee Severance and Termination Costs			Accelerated Depreciation			Other			Total			Total
Balance, beginning of period	$	4,123		$	—	$	4,123		$	8,428		$	—		$	305		$	8,733		$	12,856
Restructuring expense	—			—		—			2,450			6,152			1,075			9,677			9,677
Utilized—cash	—			—		—			(388		)	—			(1,235		)	(1,623		)	(1,623		)
Utilized—non-cash	—			—		—			—			(6,152		)	—			(6,152		)	(6,152		)
Non-cash reserve release	(967		)	—		(967		)	—			—			—			—			(967		)
Balance, end of period	$	3,156		$	—	$	3,156		$	10,490		$	—		$	145		$	10,635		$	13,791

2010 Restructuring Plan

In September 2010, the Company’s unionized employees in Wisconsin ratified three separate new seven-year labor agreements which took effect in April 2012 when the prior contracts expired. The new contracts are similar to the labor agreement ratified at the York, Pennsylvania facility in December 2009 and allow for similar flexibility and increased production efficiency and the addition of a flexible workforce component.

The actions to implement the new ratified labor agreements (2010 Restructuring Plan) resulted in approximately 250 fewer full-time hourly unionized employees in its Milwaukee-area facilities than would have been required under the previous contracts and approximately 75 fewer full-time hourly unionized employees in its Tomahawk, Wisconsin facility than would have been required under the previous contract. Under the 2010 Restructuring Plan, restructuring expenses consisted of employee severance and termination costs and other related costs. On a cumulative basis, the Company has incurred $59.2 million of restructuring expense under the 2010 Restructuring Plan as of September 29, 2013, of which approximately 45% was non-cash.

The following table summarizes the Motorcycles segment’s 2010 Restructuring Plan reserve activity and balances as recorded in accrued liabilities (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012
	Employee Severance and Termination Costs			Employee Severance and Termination Costs
Balance, beginning of period	$	10,156		$	20,361
Restructuring expense	—			4,005
Utilized—cash	(9,710		)	(13,894		)
Non-cash reserve release	(446		)	—
Balance, end of period	$	—		$	10,472

2009 Restructuring Plan

During 2009, in response to the U.S. economic recession and worldwide slowdown in consumer demand, the Company committed to a volume reduction and a combination of restructuring actions (2009 Restructuring Plan) expected to be completed at various dates between 2009 and 2013. The actions were designed to reduce administrative costs, eliminate excess capacity and exit non-core business operations. The Company’s announced actions include the restructuring and transformation of its York, Pennsylvania production facility including the implementation of a new more flexible unionized labor agreement which allows for the addition of a flexible workforce component; consolidation of facilities related to engine and transmission production; outsourcing of certain distribution and transportation activities and exiting the Buell product line. In addition, the Company implemented projects under this plan involving the outsourcing of select information technology activities and the consolidation of an administrative office in Michigan into its corporate headquarters in Milwaukee, Wisconsin.

The 2009 Restructuring Plan resulted in a reduction of approximately 2,900 hourly production positions and approximately 800 non-production, primarily salaried positions within the Motorcycles segment and approximately 100 salaried positions in the Financial Services segment.

Under the 2009 Restructuring Plan, restructuring expenses consisted of employee severance and termination costs, accelerated depreciation on the long-lived assets that will be exited as part of the 2009 Restructuring Plan and other related costs. On a cumulative basis, the Company has incurred $395.3 million of restructuring and impairment expense under the 2009 Restructuring Plan as of September 29, 2013 of which approximately 30% was non-cash.

The following table summarizes the Company’s 2009 Restructuring Plan reserve activity and balances recorded in accrued liabilities (in thousands):

	Nine months ended September 29, 2013
	Motorcycles & Related Products
	Employee Severance and Termination Costs			Accelerated Depreciation		Other			Total
Balance, beginning of period	$	5,196		$	—	$	161		$	5,357
Restructuring expense	—			—		2,446			2,446
Utilized—cash	(1,620		)	—		(2,607		)	(4,227		)
Utilized—non-cash	—			—		—			—
Non-cash reserve release	(1,531		)	—		—			(1,531		)
Balance, end of period	$	2,045		$	—	$	—		$	2,045
	Nine months ended September 30, 2012
	Motorcycles & Related Products
	Employee Severance and Termination Costs			Accelerated Depreciation		Other			Total
Balance, beginning of period	$	10,089		$	—	$	—		$	10,089
Restructuring expense	4,166			—		11,987			16,153
Utilized—cash	(2,529		)	—		(11,987		)	(14,516		)
Utilized—non-cash	—			—		—			—
Non-cash reserve release	(2,027		)	—		—			(2,027		)
Balance, end of period	$	9,699		$	—	$	—		$	9,699

Other restructuring costs under the 2009 Restructuring Plan include items such as the exit costs for terminating supply contracts, lease termination costs and moving costs. During the first nine months of 2013, the Company released a portion of its 2009 Restructuring Plan reserve related to employee severance costs as these costs are no longer expected to be incurred.

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Restructuring Expense (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended		1 Months Ended	9 Months Ended		1 Months Ended	9 Months Ended
	Sep. 29, 2013	Sep. 29, 2013 2011 Restructuring Plan [Member] New Castalloy Faciltiy [Member] employee	Feb. 28, 2011 2011 Restructuring Plan [Member] Kansas City Facility [Member]	Sep. 29, 2013 2011 Restructuring Plan [Member] Kansas City Facility [Member]	Sep. 29, 2013 Original 2011 Restructuring Plan [Member] New Castalloy Faciltiy [Member]	Sep. 30, 2010 2010 Restructuring Plan [Member] agreement	Sep. 29, 2013 2010 Restructuring Plan [Member]	Sep. 29, 2013 2010 Restructuring Plan [Member] Milwaukee Facilities [Member]	Sep. 29, 2013 2010 Restructuring Plan [Member] Tomahawk Facilities [Member]	Sep. 29, 2013 2009 Restructuring Plan [Member]	Sep. 29, 2013 2009 Restructuring Plan [Member] Production [Member] Hourly [Member] Maximum [Member]	Sep. 29, 2013 2009 Restructuring Plan [Member] Motorcycles [Member] Non-Production [Member] Salaried [Member]	Sep. 29, 2013 2009 Restructuring Plan [Member] Financial Services [Member] Non-Production [Member] Salaried [Member]
Restructuring Cost and Reserve [Line Items]
Document Fiscal Year Focus	2013
Estimated reduction in workforce		100		145	200			250	75		2,900	800	100
Restructuring and Related Cost, Expected Number Of Workforce Positions Retained		100
Non-cash charges		35.00%								30.00%
Cost incurred to date		$ 21.0		$ 5.9			$ 59.2			$ 395.3
Labor agreement period (in years)			7 years			7 years
Cost incurred to date, non-cash				10.00%			45.00%
Number of labor agreements						3

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 29, 2013

Fair Value Disclosures [Abstract]

Summary Of The Fair Value And Carrying Value Of The Company's Financial Instruments

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in thousands):

	September 29, 2013				December 31, 2012				September 30, 2012
	Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value
Assets:
Cash and cash equivalents	$	1,029,955	$	1,029,955	$	1,068,138	$	1,068,138	$	1,795,141	$	1,795,141
Marketable securities	$	122,234	$	122,234	$	135,634	$	135,634	$	136,376	$	136,376
Accounts receivable, net	$	290,158	$	290,158	$	230,079	$	230,079	$	256,193	$	256,193
Derivatives	$	1,733	$	1,733	$	317	$	317	$	1,639	$	1,639
Finance receivables, net	$	6,266,406	$	6,184,890	$	5,861,442	$	5,781,852	$	5,993,713	$	5,915,667
Restricted cash	$	194,329	$	194,329	$	188,008	$	188,008	$	217,400	$	217,400
Liabilities:
Accounts payable	$	326,713	$	326,713	$	257,386	$	257,386	$	293,710	$	293,710
Derivatives	$	1,152	$	1,152	$	7,920	$	7,920	$	2,458	$	2,458
Unsecured commercial paper	$	394,460	$	394,460	$	294,943	$	294,943	$	404,693	$	404,693
Asset-backed Canadian commercial paper conduit facility	$	180,584	$	180,584	$	175,658	$	175,658	$	176,855	$	176,855
Medium-term notes	$	3,092,947	$	2,858,809	$	3,199,548	$	2,881,272	$	3,623,082	$	3,297,687
Senior unsecured notes	$	315,927	$	303,000	$	338,594	$	303,000	$	357,328	$	303,000
Term asset-backed securitization debt	$	1,447,710	$	1,446,656	$	1,457,807	$	1,447,776	$	1,702,320	$	1,692,065

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Earnings Per Share (Tables)

9 Months Ended

Sep. 29, 2013

Earnings Per Share [Abstract]

Reconciliation Of Earnings Per Share Basic And Diluted

The following table sets forth the computation for basic and diluted earnings per share (in thousands, except per share amounts):

	Three months ended				Nine months ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Numerator:
Net income used in computing basic and diluted earnings per share	$	162,716	$	134,001	$	658,584	$	553,286
Denominator:
Denominator for basic earnings per share - weighted-average common shares	221,936		226,020		223,134		227,953
Effect of dilutive securities - employee stock compensation plan	1,550		1,969		1,562		2,117
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	223,486		227,989		224,696		230,070
Earnings per common share
Basic	$	0.73	$	0.59	$	2.95	$	2.43
Diluted	$	0.73	$	0.59	$	2.93	$	2.40

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Additional Balance Sheet And Cash Flow Information (Marketable Securities) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities	$ 122,234	$ 135,634	$ 136,376
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities	$ 122,234	$ 135,634	$ 136,376

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Derivative Instruments And Hedging Activities (Gain Loss On Derivative Cash Flow Hedges Reclassified From AOCI Into Income) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 29, 2013		Sep. 30, 2012		Sep. 29, 2013		Sep. 30, 2012
Cash Flow Hedging [Member]
Derivative Instruments And Hedging Activities [Line Items]
Amount of Gain/(Loss) Reclassified from AOCI into Income	$ 26		$ 7,334		$ (292)		$ 16,847
Expected to be Reclassified Over the Next Twelve Months	277
Cash Flow Hedging [Member] | Foreign Currency Contracts [Member]
Derivative Instruments And Hedging Activities [Line Items]
Amount of Gain/(Loss) Reclassified from AOCI into Income	47	[1]	7,742	[1]	61	[1]	19,846	[1]
Expected to be Reclassified Over the Next Twelve Months	329	[1]
Cash Flow Hedging [Member] | Commodity Contract [Member]
Derivative Instruments And Hedging Activities [Line Items]
Amount of Gain/(Loss) Reclassified from AOCI into Income	(21)	[1]	(81)	[1]	(8)	[1]	(737)	[1]
Expected to be Reclassified Over the Next Twelve Months	(52)	[1]
Cash Flow Hedging [Member] | Interest Rate Swap [Member]
Derivative Instruments And Hedging Activities [Line Items]
Amount of Gain/(Loss) Reclassified from AOCI into Income	0	[2]	(327)	[2]	(345)	[2]	(2,262)	[2]
Expected to be Reclassified Over the Next Twelve Months	0	[2]
Not Designated as Hedging Instrument [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Loss	(135)		603		(743)		603
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Loss	$ (135)		$ 603		$ (743)		$ 603

[1] Gain/(loss) reclassified from accumulated other comprehensive income (AOCI) to income is included in cost of goods sold.

[2] Gain/(loss) reclassified from AOCI to income is included in financial services interest expense.

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Asset-Backed Financing (Assets And Liabilities Of Variable Interest Entities) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012
Financing Receivable [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	$ 2,123,275	$ 2,337,993	$ 2,660,857
Financing Receivable [Member] | Asset-backed Securities [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	1,918,447	2,143,708	2,466,871
Financing Receivable [Member] | Asset-backed U.S. Commercial Paper Conduit Facility [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	0	0	0
Financing Receivable [Member] | Asset-Backed Canadian Commercial Paper Conduit Facility [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	204,828	194,285	193,986
Allowance for Credit Loss [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	(41,145)	(45,571)	(53,237)
Allowance for Credit Loss [Member] | Asset-backed Securities [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	(37,721)	(42,139)	(49,490)
Allowance for Credit Loss [Member] | Asset-backed U.S. Commercial Paper Conduit Facility [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	0	0	0
Allowance for Credit Loss [Member] | Asset-Backed Canadian Commercial Paper Conduit Facility [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	(3,424)	(3,432)	(3,747)
Restricted Cash [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	194,329	188,008	217,400
Restricted Cash [Member] | Asset-backed Securities [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	181,231	176,290	205,760
Restricted Cash [Member] | Asset-backed U.S. Commercial Paper Conduit Facility [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	0	0	0
Restricted Cash [Member] | Asset-Backed Canadian Commercial Paper Conduit Facility [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	13,098	11,718	11,640
Other Assets [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	5,549	5,543	6,400
Other Assets [Member] | Asset-backed Securities [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	4,866	4,869	5,531
Other Assets [Member] | Asset-backed U.S. Commercial Paper Conduit Facility [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	590	419	542
Other Assets [Member] | Asset-Backed Canadian Commercial Paper Conduit Facility [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	93	255	327
Assets, Total [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	2,282,008	2,485,973	2,831,420
Assets, Total [Member] | Asset-backed Securities [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	2,066,823	2,282,728	2,628,672
Assets, Total [Member] | Asset-backed U.S. Commercial Paper Conduit Facility [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	590	419	542
Assets, Total [Member] | Asset-Backed Canadian Commercial Paper Conduit Facility [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	214,595	202,826	202,206
Asset-backed debt [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	1,627,240	1,623,434	1,868,920
Asset-backed debt [Member] | Asset-backed Securities [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	1,446,656	1,447,776	1,692,065
Asset-backed debt [Member] | Asset-backed U.S. Commercial Paper Conduit Facility [Member] | SPEs [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	0	0	0
Asset-backed debt [Member] | Asset-Backed Canadian Commercial Paper Conduit Facility [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount	$ 180,584	$ 175,658	$ 176,855

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Finance Receivables (Changes In Allowance For Credit Losses On Finance Receivables) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of period	$ 111,324	$ 114,248	$ 107,667	$ 125,449
Provision for credit losses	14,604	9,069	39,011	12,823
Charge-offs	(23,708)	(19,873)	(67,117)	(62,779)
Recoveries	9,701	9,682	32,360	37,633
Balance, end of period	111,921	113,126	111,921	113,126
Retail [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of period	103,770	106,180	101,442	116,112
Provision for credit losses	16,168	9,869	39,246	14,892
Charge-offs	(23,708)	(19,873)	(67,117)	(62,779)
Recoveries	9,701	9,682	32,360	37,633
Balance, end of period	105,931	105,858	105,931	105,858
Wholesale [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of period	7,554	8,068	6,225	9,337
Provision for credit losses	(1,564)	(800)	(235)	(2,069)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Balance, end of period	$ 5,990	$ 7,268	$ 5,990	$ 7,268

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]
Net Income	$ 162,716	$ 134,001	$ 658,584	$ 553,286
Other comprehensive income, net of tax
Foreign currency translation adjustments	9,232	7,425	(12,642)	2,061
Derivative financial instruments	(6,500)	(3,554)	4,011	(7,207)
Marketable securities	(187)	333	(814)	661
Pension and postretirement benefit plans	10,239	7,933	30,717	23,799
Total other comprehensive income, net of tax	12,784	12,137	21,272	19,314
Comprehensive income	$ 175,500	$ 146,138	$ 679,856	$ 572,600

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Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 29, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Company is exposed to certain risks such as foreign currency exchange rate risk, interest rate risk and commodity price risk. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures, which prohibit the use of financial instruments for speculative trading purposes.

All derivative instruments are recognized on the balance sheet at fair value (see Note 7). In accordance with ASC Topic 815, “Derivatives and Hedging,” the accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. For derivative instruments that are designated as cash flow hedges, the effective portion of gains and losses that result from changes in the fair value of derivative instruments is initially recorded in other comprehensive income (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. Any ineffective portion is immediately recognized in earnings. No component of a hedging derivative instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivative instruments that do not qualify for hedge accounting are recorded at fair value, and any changes in fair value are recorded in current period earnings.

The Company sells its products internationally and in most markets those sales are made in the foreign country’s local currency. As a result, the Company’s earnings can be affected by fluctuations in the value of the U.S. dollar relative to foreign currency. The Company’s most significant foreign currency risk relates to the Euro, the Australian dollar, the Japanese yen and the Brazilian real. The Company utilizes foreign currency contracts to mitigate the effects of certain currencies’ fluctuations on earnings. The foreign currency contracts are entered into with banks and allow the Company to exchange a specified amount of foreign currency for U.S. dollars at a future date, based on a fixed exchange rate.

The Company utilizes commodity contracts to hedge portions of the cost of certain commodities consumed in the Company’s motorcycle production and distribution operations.

The Company’s foreign currency contracts and commodity contracts generally have maturities of less than one year.

The Company’s earnings are affected by changes in interest rates. HDFS utilized interest rate swaps to reduce the impact of fluctuations in interest rates on its unsecured commercial paper by converting a portion from a floating rate basis to a fixed rate basis. The swaps expired during the second quarter of 2013, and as of September 29, 2013, HDFS had no interest rate swaps outstanding. The fair value of HDFS’s interest rate swaps at December 31, 2012 and September 30, 2012 was determined using pricing models that incorporate quoted prices for similar assets and observable inputs such as interest rates and yield curves.

The following table summarizes the fair value of the Company’s derivative financial instruments (in thousands):

	September 29, 2013						December 31, 2012						September 30, 2012
Derivatives Designated As Hedging Instruments Under ASC Topic 815	Notional Value		Asset Fair  Value (a)		Liability Fair  Value (b)		Notional Value		Asset Fair Value (a)		Liability Fair  Value (b)		Notional Value		Asset Fair  Value (a)		Liability Fair  Value (b)
Foreign currency contracts(c)	$	335,172	$	1,714	$	771	$	345,021	$	169	$	6,850	$	385,883	$	956	$	1,784
Commodity contracts(c)	1,784		—		52		1,064		148		683		1,181		80		—
Interest rate swaps(c)	—		—		—		35,800		—		373		38,600		—		674
Total	$	336,956	$	1,714	$	823	$	381,885	$	317	$	7,906	$	425,664	$	1,036	$	2,458
	September 29, 2013						December 31, 2012						September 30, 2012
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815	Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)		Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)		Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)
Commodity contracts	$	11,250	$	19	$	329	$	16,237	$	—	$	14	$	14,518	$	603	$	—
	$	11,250	$	19	$	329	$	16,237	$	—	$	14	$	14,518	$	603	$	—

(a) Included in other current assets

(b) Included in accrued liabilities

(c) Derivative designated as a cash flow hedge

The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands):

	Amount of Gain/(Loss) Before Tax Recognized in OCI
	Three months ended						Nine Months Ended
Cash Flow Hedges	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Foreign currency contracts	$	(10,324	)	$	1,704		$	6,120		$	5,799
Commodity contracts	27			32			(46		)	(393		)
Interest rate swaps	—			(19		)	(2		)	(43		)
Total	$	(10,297	)	$	1,717		$	6,072		$	5,363

	Amount of Gain/(Loss) Before Tax Reclassified from AOCI into Income
	Three months ended						Nine Months Ended						Expected to be Reclassified
Cash Flow Hedges	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012			Over the Next Twelve Months
Foreign currency contracts(a)	$	47		$	7,742		$	61		$	19,846		$	329
Commodity contracts(a)	(21		)	(81		)	(8		)	(737		)	(52		)
Interest rate swaps(b)	—			(327		)	(345		)	(2,262		)	—
Total	$	26		$	7,334		$	(292	)	$	16,847		$	277

(a) Gain/(loss) reclassified from accumulated other comprehensive income (AOCI) to income is included in cost of goods sold.

(b) Gain/(loss) reclassified from AOCI to income is included in financial services interest expense.

The following tables summarize the amount of gains and losses related to derivative financial instruments not designated as hedging instruments (in thousands):

	Amount of Gain/(Loss) Before Tax Recognized in Income on Derivative
	Three months ended					Nine Months Ended
Derivatives	September 29, 2013			September 30, 2012		September 29, 2013			September 30, 2012
Commodity contracts	$	(135	)	$	603	$	(743	)	$	603
Total	$	(135	)	$	603	$	(743	)	$	603

For the three and nine months ended September 29, 2013 and September 30, 2012, the cash flow hedges were highly effective and, as a result, the amount of hedge ineffectiveness was not material. No amounts were excluded from effectiveness testing.

The Company is exposed to credit loss risk in the event of non-performance by counterparties to these derivative financial instruments. Although no assurances can be given, the Company does not expect any of the counterparties to these derivative financial instruments to fail to meet its obligations. To manage credit loss risk, the Company evaluates counterparties based on credit ratings and, on a quarterly basis, evaluates each hedge’s net position relative to the counterparty’s ability to cover its position.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012
Statement of Cash Flows [Abstract]
Net cash provided by operating activities	$ 825,103	$ 712,498
Cash flows from investing activities:
Capital expenditures	(111,690)	(95,329)
Origination of finance receivables	(2,617,100)	(2,328,653)
Collections on finance receivables	2,170,919	2,131,025
Purchases of marketable securities	(4,998)	(4,993)
Sales and redemptions of marketable securities	17,105	23,046
Other	6,721	0
Net cash used by investing activities	(539,043)	(274,904)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	0	993,737
Repayments of medium-term notes	(27,858)	0
Proceeds from securitization debt	647,516	763,895
Repayments of securitization debt	(650,424)	(1,161,592)
Net increase (decrease) in credit facilities and unsecured commercial paper	99,416	(634,874)
Borrowings of asset-backed commercial paper	69,555	182,131
Repayments of asset-backed commercial paper	(58,990)	(6,538)
Net change in restricted cash	(6,321)	12,255
Dividends paid	(140,772)	(106,560)
Purchase of common stock for treasury	(302,196)	(257,981)
Excess tax benefits from share-based payments	18,444	16,390
Issuance of common stock under employee stock option plans	39,145	36,342
Net cash used by financing activities	(312,485)	(162,795)
Effect of exchange rate changes on cash and cash equivalents	(11,758)	(6,608)
Net increase (decrease) in cash and cash equivalents	(38,183)	268,191
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	1,068,138	1,526,950
Net increase (decrease) in cash and cash equivalents	(38,183)	268,191
Cash and cash equivalents—end of period	$ 1,029,955	$ 1,795,141

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Product Warranty And Safety Recall Campaigns (Warranty And Safety Recall Liability) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of period	$ 70,406	$ 67,801	$ 60,263	$ 54,994
Warranties issued during the period	12,008	10,228	46,529	42,846
Settlements made during the period	(16,898)	(19,799)	(45,238)	(52,885)
Recalls and changes to pre-existing warranty liabilities	77	4,980	4,039	18,255
Balance, end of period	$ 65,593	$ 63,210	$ 65,593	$ 63,210

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Revenue:
Motorcycles and related products	$ 1,180,284	$ 1,089,268	$ 4,225,998	$ 3,931,684
Financial services	163,434	161,027	483,240	477,962
Total revenue	1,343,718	1,250,295	4,709,238	4,409,646
Costs and expenses:
Motorcycles and related products cost of goods sold	763,969	711,364	2,688,371	2,533,453
Financial services interest expense	39,944	46,231	126,004	146,199
Financial services provision for credit losses	14,604	9,069	39,011	12,823
Selling, administrative and engineering expense	273,016	257,359	825,899	806,257
Restructuring (benefit) expense	646	9,170	(1,713)	26,841
Total costs and expenses	1,092,179	1,033,193	3,677,572	3,525,573
Operating income	251,539	217,102	1,031,666	884,073
Investment income	1,161	1,447	4,546	5,611
Interest expense	11,369	11,438	33,998	34,528
Income before provision for income taxes	241,331	207,111	1,002,214	855,156
Provision for income taxes	78,615	73,110	343,630	301,870
Net income	$ 162,716	$ 134,001	$ 658,584	$ 553,286
Earnings per common share:
Basic (in dollars per share)	$ 0.73	$ 0.59	$ 2.95	$ 2.43
Diluted (in dollars per share)	$ 0.73	$ 0.59	$ 2.93	$ 2.40
Cash dividends per common share (in dollars per share)	$ 0.210	$ 0.155	$ 0.630	$ 0.465

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Fair Value Measurements (Summary Of Assets And Liabilities Measured at Fair Value) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 122,234	$ 135,634	$ 136,376
Fair Value, Measurements, Recurring [Member] | Balance [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	832,344	852,979	1,417,900
Marketable securities	122,234	135,634	136,376
Derivative Asset, Current	1,733	317	1,639
Total assets measured at fair value	956,311	988,930	1,555,915
Derivatives, liabilities	1,152	7,920	2,458
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	506,792	690,691	1,161,646
Marketable securities	0	0	0
Derivative Asset, Current	0	0	0
Total assets measured at fair value	506,792	690,691	1,161,646
Derivatives, liabilities	0	0	0
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	325,552	162,288	256,254
Marketable securities	122,234	135,634	136,376
Derivative Asset, Current	1,733	317	1,639
Total assets measured at fair value	449,519	298,239	394,269
Derivatives, liabilities	1,152	7,920	2,458
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0	0
Marketable securities	0	0	0
Derivative Asset, Current	0	0	0
Total assets measured at fair value	0	0	0
Derivatives, liabilities	$ 0	$ 0	$ 0

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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 29, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instrument Fair Value

The following table summarizes the fair value of the Company’s derivative financial instruments (in thousands):

	September 29, 2013						December 31, 2012						September 30, 2012
Derivatives Designated As Hedging Instruments Under ASC Topic 815	Notional Value		Asset Fair  Value (a)		Liability Fair  Value (b)		Notional Value		Asset Fair Value (a)		Liability Fair  Value (b)		Notional Value		Asset Fair  Value (a)		Liability Fair  Value (b)
Foreign currency contracts(c)	$	335,172	$	1,714	$	771	$	345,021	$	169	$	6,850	$	385,883	$	956	$	1,784
Commodity contracts(c)	1,784		—		52		1,064		148		683		1,181		80		—
Interest rate swaps(c)	—		—		—		35,800		—		373		38,600		—		674
Total	$	336,956	$	1,714	$	823	$	381,885	$	317	$	7,906	$	425,664	$	1,036	$	2,458
	September 29, 2013						December 31, 2012						September 30, 2012
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815	Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)		Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)		Notional Value		Asset Fair  Value(a)		Liability Fair  Value(b)
Commodity contracts	$	11,250	$	19	$	329	$	16,237	$	—	$	14	$	14,518	$	603	$	—
	$	11,250	$	19	$	329	$	16,237	$	—	$	14	$	14,518	$	603	$	—

(a) Included in other current assets

(b) Included in accrued liabilities

(c) Derivative designated as a cash flow hedge

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands):

	Amount of Gain/(Loss) Before Tax Recognized in OCI
	Three months ended						Nine Months Ended
Cash Flow Hedges	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Foreign currency contracts	$	(10,324	)	$	1,704		$	6,120		$	5,799
Commodity contracts	27			32			(46		)	(393		)
Interest rate swaps	—			(19		)	(2		)	(43		)
Total	$	(10,297	)	$	1,717		$	6,072		$	5,363

	Amount of Gain/(Loss) Before Tax Reclassified from AOCI into Income
	Three months ended						Nine Months Ended						Expected to be Reclassified
Cash Flow Hedges	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012			Over the Next Twelve Months
Foreign currency contracts(a)	$	47		$	7,742		$	61		$	19,846		$	329
Commodity contracts(a)	(21		)	(81		)	(8		)	(737		)	(52		)
Interest rate swaps(b)	—			(327		)	(345		)	(2,262		)	—
Total	$	26		$	7,334		$	(292	)	$	16,847		$	277

(a) Gain/(loss) reclassified from accumulated other comprehensive income (AOCI) to income is included in cost of goods sold.

(b) Gain/(loss) reclassified from AOCI to income is included in financial services interest expense.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables summarize the amount of gains and losses related to derivative financial instruments not designated as hedging instruments (in thousands):

	Amount of Gain/(Loss) Before Tax Recognized in Income on Derivative
	Three months ended					Nine Months Ended
Derivatives	September 29, 2013			September 30, 2012		September 29, 2013			September 30, 2012
Commodity contracts	$	(135	)	$	603	$	(743	)	$	603
Total	$	(135	)	$	603	$	(743	)	$	603

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Additional Balance Sheet and Cash Flow Information (Tables)

9 Months Ended

Sep. 29, 2013

Supplemental Cash Flow Information [Abstract]

Marketable Securities

The Company’s marketable securities consisted of the following (in thousands):

	September 29, 2013		December 31, 2012		September 30, 2012
Available-for-sale:
Corporate bonds	$	122,234	$	135,634	$	136,376
	$	122,234	$	135,634	$	136,376

Inventories Net

Inventories consist of the following (in thousands):

	September 29, 2013			December 31, 2012			September 30, 2012
Components at the lower of FIFO cost or market
Raw materials and work in process	$	130,510		$	111,335		$	121,184
Motorcycle finished goods	181,239			205,660			169,515
Parts and accessories and general merchandise	135,339			122,418			132,789
Inventory at lower of FIFO cost or market	447,088			439,413			423,488
Excess of FIFO over LIFO cost	(45,889		)	(45,889		)	(44,359		)
	$	401,199		$	393,524		$	379,129

Reconciliation Of Net Income To Net Cash Used By Operating Activities

The reconciliation of net income to net cash provided by operating activities is as follows (in thousands):

	Nine months ended
	September 29, 2013			September 30, 2012
Cash flows from operating activities:
Net income	$	658,584		$	553,286
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	122,658			127,443
Amortization of deferred loan origination costs	63,548			58,438
Amortization of financing origination fees	6,994			7,462
Provision for employee long-term benefits	50,158			50,348
Contributions to pension and postretirement plans	(197,243		)	(220,733		)
Stock compensation expense	31,030			30,287
Net change in wholesale finance receivables related to sales	(71,869		)	5,570
Provision for credit losses	39,011			12,823
Loss on debt extinguishment	4,947			—
Foreign currency adjustments	12,874			8,692
Other, net	(63		)	9,411
Changes in current assets and liabilities:
Accounts receivable, net	(65,835		)	(37,904		)
Finance receivables—accrued interest and other	937			1,597
Inventories	(19,233		)	36,463
Accounts payable and accrued liabilities	142,277			99,642
Restructuring reserves	(24,521		)	(9,177		)
Derivative instruments	(1,818		)	611
Other	72,667			(21,761		)
Total adjustments	166,519			159,212
Net cash provided by operating activities	$	825,103		$	712,498

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Finance Receivables (Narrative) (Detail) (USD $)	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 0	$ 0	$ 0
Wholesale finance receivables, gross	600,000	400,000	500,000
Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	0	0	0
Wholesale finance receivables, gross	17,800,000	27,600,000	19,400,000
Wholesale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	0	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0	0
Nonperforming Financing Receivable [Member] | Wholesale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 0	$ 0	$ 0

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Derivative Instruments And Hedging Activities (Gain Loss On Derivative Cash Flow Hedges Recognized In OCI) (Detail) (Cash Flow Hedging [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Derivative Instruments And Hedging Activities [Line Items]
Amount of Gain/(Loss) Before Tax Recognized in OCI	$ (10,297)	$ 1,717	$ 6,072	$ 5,363
Foreign Currency Contracts [Member]
Derivative Instruments And Hedging Activities [Line Items]
Amount of Gain/(Loss) Before Tax Recognized in OCI	(10,324)	1,704	6,120	5,799
Commodity Contract [Member]
Derivative Instruments And Hedging Activities [Line Items]
Amount of Gain/(Loss) Before Tax Recognized in OCI	27	32	(46)	(393)
Interest Rate Swap [Member]
Derivative Instruments And Hedging Activities [Line Items]
Amount of Gain/(Loss) Before Tax Recognized in OCI	$ 0	$ (19)	$ (2)	$ (43)

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Business Segments Narrative (Details)	9 Months Ended
	Sep. 29, 2013 segment
Segment Reporting [Abstract]
Number of businss segments	2

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Additional Balance Sheet And Cash Flow Information (Inventories, Net) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012
Inventory [Line Items]
Raw materials and work in process	$ 130,510	$ 111,335	$ 121,184
Inventory at lower of FIFO cost or market	447,088	439,413	423,488
Excess of FIFO over LIFO cost	(45,889)	(45,889)	(44,359)
Inventories, net	401,199	393,524	379,129
Motorcycle Finished Goods [Member]
Inventory [Line Items]
Finished goods	181,239	205,660	169,515
Parts and Accessories Finished Goods [Member]
Inventory [Line Items]
Finished goods	$ 135,339	$ 122,418	$ 132,789

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Supplemental Consolidating Data (Tables)

9 Months Ended

Sep. 29, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Operations

	Three months ended September 29, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,183,016		$	—	$	(2,732	)	$	1,180,284
Financial services	—			163,829		(395		)	163,434
Total revenue	1,183,016			163,829		(3,127		)	1,343,718
Costs and expenses:
Motorcycles and related products cost of goods sold	763,969			—		—			763,969
Financial services interest expense	—			39,944		—			39,944
Financial services provision for credit losses	—			14,604		—			14,604
Selling, administrative and engineering expense	240,593			35,550		(3,127		)	273,016
Restructuring expense	646			—		—			646
Total costs and expenses	1,005,208			90,098		(3,127		)	1,092,179
Operating income	177,808			73,731		—			251,539
Investment income	1,161			—		—			1,161
Interest expense	11,369			—		—			11,369
Income before provision for income taxes	167,600			73,731		—			241,331
Provision for income taxes	51,721			26,894		—			78,615
Net income	$	115,879		$	46,837	$	—		$	162,716
	Nine months ended September 29, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	4,233,990		$	—	$	(7,992	)	$	4,225,998
Financial services	—			484,461		(1,221		)	483,240
Total revenue	4,233,990			484,461		(9,213		)	4,709,238
Costs and expenses:
Motorcycles and related products cost of goods sold	2,688,371			—		—			2,688,371
Financial services interest expense	—			126,004		—			126,004
Financial services provision for credit losses	—			39,011		—			39,011
Selling, administrative and engineering expense	730,664			104,448		(9,213		)	825,899
Restructuring expense	(1,713		)	—		—			(1,713		)
Total costs and expenses	3,417,322			269,463		(9,213		)	3,677,572
Operating income	816,668			214,998		—			1,031,666
Investment income	189,546			—		(185,000		)	4,546
Interest expense	33,998			—		—			33,998
Income before provision for income taxes	972,216			214,998		(185,000		)	1,002,214
Provision for income taxes	265,278			78,352		—			343,630
Net income	$	706,938		$	136,646	$	(185,000	)	$	658,584

	Three months ended September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,091,887	$	—	$	(2,619	)	$	1,089,268
Financial services	—		161,438		(411		)	161,027
Total revenue	1,091,887		161,438		(3,030		)	1,250,295
Costs and expenses:
Motorcycles and related products cost of goods sold	711,364		—		—			711,364
Financial services interest expense	—		46,231		—			46,231
Financial services provision for credit losses	—		9,069		—			9,069
Selling, administrative and engineering expense	224,393		35,996		(3,030		)	257,359
Restructuring expense	9,170		—		—			9,170
Total costs and expenses	944,927		91,296		(3,030		)	1,033,193
Operating income	146,960		70,142		—			217,102
Investment income	1,447		—		—			1,447
Interest expense	11,438		—		—			11,438
Income before provision for income taxes	136,969		70,142		—			207,111
Provision for income taxes	47,859		25,251		—			73,110
Net income	$	89,110	$	44,891	$	—		$	134,001
	Nine months ended September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	3,939,673	$	—	$	(7,989	)	$	3,931,684
Financial services	—		478,187		(225		)	477,962
Total revenue	3,939,673		478,187		(8,214		)	4,409,646
Costs and expenses:
Motorcycles and related products cost of goods sold	2,533,453		—		—			2,533,453
Financial services interest expense	—		146,199		—			146,199
Financial services provision for credit losses	—		12,823		—			12,823
Selling, administrative and engineering expense	709,240		105,231		(8,214		)	806,257
Restructuring expense	26,841		—		—			26,841
Total costs and expenses	3,269,534		264,253		(8,214		)	3,525,573
Operating income	670,139		213,934		—			884,073
Investment income	230,611		—		(225,000		)	5,611
Interest expense	34,528		—		—			34,528
Income before provision for income taxes	866,222		213,934		(225,000		)	855,156
Provision for income taxes	224,854		77,016		—			301,870
Net income	$	641,368	$	136,918	$	(225,000	)	$	553,286

Balance Sheet

	September 29, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	652,961	$	376,994	$	—		$	1,029,955
Marketable securities	122,234		—		—			122,234
Accounts receivable, net	1,228,320		—		(938,162		)	290,158
Finance receivables, net	—		1,829,612		—			1,829,612
Inventories	401,199		—		—			401,199
Restricted cash	—		194,329		—			194,329
Other current assets	160,538		64,650		—			225,188
Total current assets	2,565,252		2,465,585		(938,162		)	4,092,675
Finance receivables, net	—		4,355,278		—			4,355,278
Property, plant and equipment, net	763,469		31,766		—			795,235
Goodwill	30,041		—		—			30,041
Other long-term assets	272,490		14,804		(76,515		)	210,779
	$	3,631,252	$	6,867,433	$	(1,014,677	)	$	9,484,008
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	276,197	$	988,678	$	(938,162	)	$	326,713
Accrued liabilities	455,393		86,003		(2,169		)	539,227
Short-term debt	—		394,460		—			394,460
Current portion of long-term debt	303,000		418,316		—			721,316
Total current liabilities	1,034,590		1,887,457		(940,331		)	1,981,716
Long-term debt	—		4,067,733		—			4,067,733
Pension liability	144,563		—		—			144,563
Postretirement healthcare benefits	267,919		—		—			267,919
Other long-term liabilities	121,003		19,227		—			140,230
Shareholders’ equity	2,063,177		893,016		(74,346		)	2,881,847
	$	3,631,252	$	6,867,433	$	(1,014,677	)	$	9,484,008

	December 31, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	727,716	$	340,422	$	—		$	1,068,138
Marketable securities	135,634		—		—			135,634
Accounts receivable, net	781,642		—		(551,563		)	230,079
Finance receivables, net	—		1,743,045		—			1,743,045
Inventories	393,524		—		—			393,524
Restricted cash	—		188,008		—			188,008
Other current assets	230,905		57,609		3,994			292,508
Total current assets	2,269,421		2,329,084		(547,569		)	4,050,936
Finance receivables, net	—		4,038,807		—			4,038,807
Property, plant and equipment, net	783,068		32,396		—			815,464
Goodwill	29,530		—		—			29,530
Other long-term assets	292,764		19,468		(76,196		)	236,036
	$	3,374,783	$	6,419,755	$	(623,765	)	$	9,170,773
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	221,064	$	587,885	$	(551,563	)	$	257,386
Accrued liabilities	439,144		74,447		—			513,591
Short-term debt	—		294,943		—			294,943
Current portion of long-term debt	—		437,162		—			437,162
Total current liabilities	660,208		1,394,437		(551,563		)	1,503,082
Long-term debt	303,000		4,067,544		—			4,370,544
Pension liability	330,294		—		—			330,294
Postretirement healthcare benefits	278,062		—		—			278,062
Other long-term liabilities	114,476		16,691		—			131,167
Shareholders’ equity	1,688,743		941,083		(72,202		)	2,557,624
	$	3,374,783	$	6,419,755	$	(623,765	)	$	9,170,773

	September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,048,429	$	746,712	$	—		$	1,795,141
Marketable securities	136,376		—		—			136,376
Accounts receivable, net	623,021		—		(366,828		)	256,193
Finance receivables, net	—		1,726,061		—			1,726,061
Inventories	379,129		—		—			379,129
Restricted cash	—		217,400		—			217,400
Other current assets	177,278		60,118		—			237,396
Total current assets	2,364,233		2,750,291		(366,828		)	4,747,696
Finance receivables, net	—		4,189,606		—			4,189,606
Property, plant and equipment, net	735,719		29,116		—			764,835
Goodwill	28,928		—		—			28,928
Other long-term assets	338,987		20,193		(75,062		)	284,118
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	251,755	$	408,783	$	(366,828	)	$	293,710
Accrued liabilities	521,867		87,936		(3,725		)	606,078
Short-term debt	—		404,693		—			404,693
Current portion of long-term debt	—		997,194		—			997,194
Total current liabilities	773,622		1,898,606		(370,553		)	2,301,675
Long-term debt	303,000		4,169,413		—			4,472,413
Pension liability	125,664		—		—			125,664
Postretirement healthcare liability	261,564		—		—			261,564
Other long-term liabilities	134,509		15,995		—			150,504
Shareholders’ equity	1,869,508		905,192		(71,337		)	2,703,363
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183

Cash Flows

	Nine months ended September 29, 2013
	Motorcycles &  Related Products Operations			Financial Services  Operations		Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net Income	$	706,938		136,646		$	(185,000	)	$	658,584
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	118,224			4,434		—			122,658
Amortization of deferred loan origination costs	—			63,548					63,548
Amortization of financing origination fees	355			6,639		—			6,994
Provision for employee long-term benefits	50,158			—		—			50,158
Contributions to pension and postretirement plans	(197,243		)	—		—			(197,243		)
Stock compensation expense	28,886			2,144		—			31,030
Net change in wholesale finance receivables related to sales	—			—		(71,869		)	(71,869		)
Provision for credit losses	—			39,011		—			39,011
Loss on debt extinguishment	—			4,947		—			4,947
Foreign currency adjustments	12,874			—		—			12,874
Other, net	207			(270	)	—			(63		)
Change in current assets and current liabilities:
Accounts receivable	(302,434		)	—		236,599			(65,835		)
Finance receivables—accrued interest and other	—			937		—			937
Inventories	(19,233		)	—		—			(19,233		)
Accounts payable and accrued liabilities	113,902			264,974		(236,599		)	142,277
Restructuring reserves	(24,521		)	—		—			(24,521		)
Derivative instruments	(1,790		)	(28	)	—			(1,818		)
Other	74,205			(1,538	)	—			72,667
Total adjustments	(146,410		)	384,798		(71,869		)	166,519
Net cash provided by (used by) operating activities	560,528			521,444		(256,869		)	825,103

	Nine months ended September 29, 2013
	Motorcycles &  Related Products Operations			Financial Services  Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(107,886		)	(3,804		)	—			(111,690		)
Origination of finance receivables	—			(5,832,489		)	3,215,389			(2,617,100		)
Collections of finance receivables	—			5,314,439			(3,143,520		)	2,170,919
Purchases of marketable securities	(4,998		)	—			—			(4,998		)
Sales and redemptions of marketable securities	17,105			—			—			17,105
Other	6,721			—			—			6,721
Net cash (used by) provided by investing activities	(89,058		)	(521,854		)	71,869			(539,043		)
Cash flows from financing activities:
Repayments of medium-term notes	—			(27,858		)	—			(27,858		)
Loan to HDFS	(150,000		)	150,000			—			—
Proceeds from securitization of debt	—			647,516			—			647,516
Repayments of securitization debt	—			(650,424		)	—			(650,424		)
Net increase in credit facilities and unsecured commercial paper	—			99,416			—			99,416
Borrowings of asset-backed commercial paper	—			69,555			—			69,555
Repayments of asset-backed commercial paper	—			(58,990		)	—			(58,990		)
Net change in restricted cash	—			(6,321		)	—			(6,321		)
Dividends paid	(140,772		)	(185,000		)	185,000			(140,772		)
Purchase of common stock for treasury	(302,196		)	—			—			(302,196		)
Excess tax benefits from share-based payments	18,444			—			—			18,444
Issuance of common stock under employee stock option plans	39,145			—			—			39,145
Net cash (used by) provided by financing activities	(535,379		)	37,894			185,000			(312,485		)
Effect of exchange rate changes on cash and cash equivalents	(10,846		)	(912		)	—			(11,758		)
Net (decrease) increase in cash and cash equivalents	$	(74,755	)	$	36,572		$	—		$	(38,183	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	727,716		$	340,422		$	—		$	1,068,138
Net (decrease) increase in cash and cash equivalents	(74,755		)	36,572			—			(38,183		)
Cash and cash equivalents—end of period	$	652,961		$	376,994		$	—		$	1,029,955

	Nine months ended September 30, 2012
	Motorcycles &  Related Products Operations			Financial Services  Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	641,368		$	136,918		$	(225,000	)	$	553,286
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	122,570			4,873			—			127,443
Amortization of deferred loan origination costs	—			58,438			—			58,438
Amortization of financing origination fees	355			7,107			—			7,462
Provision for employee long-term benefits	48,808			1,540			—			50,348
Contributions to pension and postretirement plans	(220,733		)	—			—			(220,733		)
Stock compensation expense	27,881			2,406			—			30,287
Net change in wholesale finance receivables related to sales	—			—			5,570			5,570
Provision for credit losses	—			12,823			—			12,823
Foreign currency adjustments	8,692			—			—			8,692
Other, net	2,252			7,159			—			9,411
Change in current assets and current liabilities:
Accounts receivable	(230,156		)	—			192,252			(37,904		)
Finance receivables—accrued interest and other	—			1,597			—			1,597
Inventories	36,463			—			—			36,463
Accounts payable and accrued liabilities	86,513			205,381			(192,252		)	99,642
Restructuring reserves	(9,177		)	—			—			(9,177		)
Derivative instruments	739			(128		)	—			611
Other	(19,550		)	(2,211		)	—			(21,761		)
Total adjustments	(145,343		)	298,985			5,570			159,212
Net cash provided by (used by) operating activities	496,025			435,903			(219,430		)	712,498
Cash flows from investing activities:
Capital expenditures	(91,469		)	(3,860		)	—			(95,329		)
Origination of finance receivables	—			(5,315,732		)	2,987,079			(2,328,653		)
Collections of finance receivables	—			5,123,674			(2,992,649		)	2,131,025
Purchases of marketable securities	(4,993		)	—			—			(4,993		)
Sales and redemptions of marketable securities	23,046			—			—			23,046
Net cash used by investing activities	(73,416		)	(195,918		)	(5,570		)	(274,904		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			993,737			—			993,737
Proceeds from securitization debt	—			763,895			—			763,895
Repayments of securitization debt	—			(1,161,592		)	—			(1,161,592		)
Borrowings of asset-backed commercial paper	—			182,131			—			182,131
Repayments of asset-backed commercial paper	—			(6,538		)	—			(6,538		)
Net decrease in credit facilities and unsecured commercial paper	—			(634,874		)	—			(634,874		)
Net change in restricted cash	—			12,255			—			12,255
Dividends paid	(106,560		)	(225,000		)	225,000			(106,560		)
Purchase of common stock for treasury	(257,981		)	—			—			(257,981		)
Excess tax benefits from share-based payments	16,390			—			—			16,390
Issuance of common stock under employee stock option plans	36,342			—			—			36,342
Net cash (used by) provided by financing activities	(311,809		)	(75,986		)	225,000			(162,795		)
Effect of exchange rate changes on cash and cash equivalents	(5,701		)	(907		)	—			(6,608		)
Net increase in cash and cash equivalents	$	105,099		$	163,092		$	—		$	268,191
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	943,330		$	583,620		$	—		$	1,526,950
Net increase in cash and cash equivalents	105,099			163,092			—			268,191
Cash and cash equivalents—end of period	$	1,048,429		$	746,712		$	—		$	1,795,141

XML

Basis Of Presentation And Use Of Estimates Narrative (Details)	9 Months Ended
	Sep. 29, 2013 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of businss segments	2

XML

Fair Value of Financial Instruments

9 Months Ended

Sep. 29, 2013

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, marketable securities, trade receivables, finance receivables, net, trade payables, debt, and foreign currency contracts and interest rate swaps (derivative instruments are discussed further in Note 9).

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in thousands):

	September 29, 2013				December 31, 2012				September 30, 2012
	Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value
Assets:
Cash and cash equivalents	$	1,029,955	$	1,029,955	$	1,068,138	$	1,068,138	$	1,795,141	$	1,795,141
Marketable securities	$	122,234	$	122,234	$	135,634	$	135,634	$	136,376	$	136,376
Accounts receivable, net	$	290,158	$	290,158	$	230,079	$	230,079	$	256,193	$	256,193
Derivatives	$	1,733	$	1,733	$	317	$	317	$	1,639	$	1,639
Finance receivables, net	$	6,266,406	$	6,184,890	$	5,861,442	$	5,781,852	$	5,993,713	$	5,915,667
Restricted cash	$	194,329	$	194,329	$	188,008	$	188,008	$	217,400	$	217,400
Liabilities:
Accounts payable	$	326,713	$	326,713	$	257,386	$	257,386	$	293,710	$	293,710
Derivatives	$	1,152	$	1,152	$	7,920	$	7,920	$	2,458	$	2,458
Unsecured commercial paper	$	394,460	$	394,460	$	294,943	$	294,943	$	404,693	$	404,693
Asset-backed Canadian commercial paper conduit facility	$	180,584	$	180,584	$	175,658	$	175,658	$	176,855	$	176,855
Medium-term notes	$	3,092,947	$	2,858,809	$	3,199,548	$	2,881,272	$	3,623,082	$	3,297,687
Senior unsecured notes	$	315,927	$	303,000	$	338,594	$	303,000	$	357,328	$	303,000
Term asset-backed securitization debt	$	1,447,710	$	1,446,656	$	1,457,807	$	1,447,776	$	1,702,320	$	1,692,065

Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Net and Accounts Payable – With the exception of certain cash equivalents, these items are recorded in the financial statements at historical cost. The historical cost basis for these amounts is estimated to approximate their respective fair values due to the short maturity of these instruments. Fair value is based on Level 1 or Level 2 inputs.

Marketable Securities – Marketable securities are recorded in the financial statements at fair value. The fair value of marketable securities is based primarily on quoted market prices of similar financial assets. Changes in fair value are recorded, net of tax, as other comprehensive income and included as a component of shareholders’ equity. Fair value is based on Level 2 inputs.

Finance Receivables, Net – Retail and wholesale finance receivables are recorded in the financial statements at historical cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The historical cost basis of wholesale finance receivables approximates fair value because they either are short-term or have interest rates that adjust with changes in market interest rates.

Derivatives – Interest rate swaps, foreign currency exchange contracts and commodity contracts are derivative financial instruments and are carried at fair value on the balance sheet. The fair value of interest rate swaps is determined using pricing models that incorporate quoted prices for similar assets and observable inputs such as interest rates and yield curves. The fair value of foreign currency exchange and commodity contracts is determined using publicly quoted prices. Fair value is calculated using Level 2 inputs.

Debt – Debt is generally recorded in the financial statements at historical cost. The carrying value of unsecured commercial paper approximates fair value due to its short maturity. Fair value is calculated using Level 2 inputs.

The carrying value of debt provided under the Canadian Conduit approximates fair value since the interest rates charged under the facility are tied directly to market rates and fluctuate as market rates change. Fair value is calculated using Level 2 inputs.

The fair values of the medium-term notes are estimated based upon rates currently available for debt with similar terms and remaining maturities. Fair value is calculated using Level 2 inputs.

The fair value of the senior unsecured notes is estimated based upon rates currently available for debt with similar terms and remaining maturities. Fair value is calculated using Level 2 inputs.

The fair value of the debt related to term asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities. Fair value is calculated using Level 2 inputs.

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Employee Benefit Plans (Components Of Net Periodic Benefit Costs) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Pension And SERPA Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 8,997	$ 8,420	$ 26,990	$ 25,260
Interest cost	19,812	20,816	59,436	62,448
Expected return on plan assets	(31,832)	(29,277)	(95,496)	(87,832)
Prior service cost	437	740	1,310	2,219
Net loss	14,652	10,969	43,956	32,906
Net periodic benefit cost	12,066	11,668	36,196	35,001
Postretirement Healthcare Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	1,965	1,854	5,894	5,560
Interest cost	3,900	4,578	11,699	13,733
Expected return on plan assets	(2,384)	(2,356)	(7,153)	(7,068)
Prior service cost	(963)	(963)	(2,890)	(2,890)
Net loss	2,137	1,855	6,412	5,566
Net periodic benefit cost	$ 4,655	$ 4,968	$ 13,962	$ 14,901

XML

Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 29, 2013

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables set forth the changes in accumulated other comprehensive loss (AOCL) (in thousands):

	Three months ended September 29, 2013
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	29,461		$	50		$	6,674		$	(635,375	)	$	(599,190	)
Other comprehensive income (loss) before reclassifications	10,040			(297		)	(10,297		)	—			(554		)
Income tax	(808		)	110			3,813			—			3,115
Net other comprehensive income before reclassifications	9,232			(187		)	(6,484		)	—			2,561
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(47		)	—			(47		)
Realized (gains) losses - commodities contracts(b)	—			—			21			—			21
Realized (gains) losses - interest rate swaps(c)	—			—			—			—			—
Prior service credits(d)	—			—			—			(526		)	(526		)
Actuarial losses(d)	—			—			—			16,789			16,789
Total before tax	—			—			(26		)	16,263			16,237
Income tax expense (benefit)	—			—			10			(6,024		)	(6,014		)
Net reclassifications	—			—			(16		)	10,239			10,223
Other comprehensive income (loss)	9,232			(187		)	(6,500		)	10,239			12,784
Ending Balance	$	38,693		$	(137	)	$	174		$	(625,136	)	$	(586,406	)

	Three months ended September 30, 2012
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	44,571		$	655		$	2,654		$	(517,436	)	$	(469,556	)
Other comprehensive income before reclassifications	8,388			529			1,717			—			10,634
Income tax	(963		)	(196		)	(636		)	—			(1,795		)
Net other comprehensive income before reclassifications	7,425			333			1,081			—			8,839
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(7,742		)	—			(7,742		)
Realized (gains) losses - commodities contracts(b)	—			—			81			—			81
Realized (gains) losses - interest rate swaps(c)	—			—			327			—			327
Prior service credits(d)	—			—			—			(233		)	(233		)
Actuarial losses(d)	—			—			—			12,824			12,824
Total before tax	—			—			(7,334		)	12,591			5,257
Income tax expense (benefit)	—			—			2,699			(4,658		)	(1,959		)
Net reclassifications	—			—			(4,635		)	7,933			3,298
Other comprehensive income (loss)	7,425			333			(3,554		)	7,933			12,137
Ending Balance	$	51,996		$	988		$	(900	)	$	(509,503	)	$	(457,419	)

	Nine months ended September 29, 2013
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	51,335		$	677		$	(3,837	)	$	(655,853	)	$	(607,678	)
Other comprehensive (loss) income before reclassifications	(13,812		)	(1,293		)	6,072			—			(9,033		)
Income tax	1,170			479			(2,248		)	—			(599		)
Net other comprehensive income before reclassifications	(12,642		)	(814		)	3,824			—			(9,632		)
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(61		)	—			(61		)
Realized (gains) losses - commodities contracts(b)	—			—			8			—			8
Realized (gains) losses - interest rate swaps(c)	—			—			345			—			345
Prior service credits(d)	—			—			—			(1,580		)	(1,580		)
Actuarial losses(d)	—			—			—			50,368			50,368
Total before tax	—			—			292			48,788			49,080
Income tax expense	—			—			(105		)	(18,071		)	(18,176		)
Net reclassifications	—			—			187			30,717			30,904
Other comprehensive (loss) income	(12,642		)	(814		)	4,011			30,717			21,272
Ending Balance	$	38,693		$	(137	)	$	174		$	(625,136	)	$	(586,406	)

	Nine months ended September 30, 2012
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	49,935		$	327		$	6,307		$	(533,302	)	$	(476,733	)
Other comprehensive income before reclassifications	3,087			1,050			5,363			—			9,500
Income tax	(1,026		)	(389		)	(1,987		)	—			(3,402		)
Net other comprehensive income before reclassifications	2,061			661			3,376			—			6,098
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(19,846		)	—			(19,846		)
Realized (gains) losses - commodities contracts(b)	—			—			737			—			737
Realized (gains) losses - interest rate swaps(c)	—			—			2,262			—			2,262
Prior service credits(d)	—			—			—			(671		)	(671		)
Actuarial losses(d)	—			—			—			38,472			38,472
Total before tax	—			—			(16,847		)	37,801			20,954
Income tax expense (benefit)	—			—			6,264			(14,002		)	(7,738		)
Net reclassifications	—			—			(10,583		)	23,799			13,216
Other comprehensive income (loss)	2,061			661			(7,207		)	23,799			19,314
Ending Balance	$	51,996		$	988		$	(900	)	$	(509,503	)	$	(457,419	)

(a) Amounts reclassified to net income are included in investment income.

(b) Amounts reclassified to net income are included in motorcycles and related products cost of goods sold.

(c) Amounts reclassified to net income are presented in financial services interest expense.

(d) Amounts reclassified are included in the computation of net periodic period cost. See note 14 for information related to pension and postretirement benefit plans.

XML

Restructuring Expense (Restructuring Plan Reserve Recorded in Accrued Liabilities) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Restructuring Reserve [Roll Forward]
Restructuring expense	$ 646	$ 9,170	$ (1,713)	$ 26,841
2011 Kansas City Restructuring Plan [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			2,259	4,123
Restructuring expense			0	0
Utilized—cash			(1,283)	0
Utilized—non-cash			0	0
Non-cash reserve release			(976)	(967)
Balance, end of period	0	3,156	0	3,156
2011 Kansas City Restructuring Plan [Member] | Employee Severance [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			2,259	4,123
Restructuring expense			0	0
Utilized—cash			(1,283)	0
Utilized—non-cash			0	0
Non-cash reserve release			(976)	(967)
Balance, end of period	0	3,156	0	3,156
2011 Kansas City Restructuring Plan [Member] | Other [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			0	0
Restructuring expense			0	0
Utilized—cash			0	0
Utilized—non-cash			0	0
Non-cash reserve release			0	0
Balance, end of period	0	0	0	0
2011 New Castalloy Restructuring Plan [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			9,451	8,733
Restructuring expense			4,044	9,677
Utilized—cash			(5,962)	(1,623)
Utilized—non-cash			(2,093)	(6,152)
Non-cash reserve release			(5,250)	0
Balance, end of period	190	10,635	190	10,635
2011 New Castalloy Restructuring Plan [Member] | Employee Severance [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			9,306	8,428
Restructuring expense			1,361	2,450
Utilized—cash			(5,360)	(388)
Utilized—non-cash			0	0
Non-cash reserve release			(5,250)	0
Balance, end of period	57	10,490	57	10,490
2011 New Castalloy Restructuring Plan [Member] | Other [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			145	305
Restructuring expense			590	1,075
Utilized—cash			(602)	(1,235)
Utilized—non-cash			0	0
Non-cash reserve release			0	0
Balance, end of period	133	145	133	145
2011 New Castalloy Restructuring Plan [Member] | Accelerated Depreciation [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			0	0
Restructuring expense			2,093	6,152
Utilized—cash			0	0
Utilized—non-cash			(2,093)	(6,152)
Non-cash reserve release			0	0
Balance, end of period	0	0	0	0
2011 Restructuring Plan [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			11,710	12,856
Restructuring expense			4,044	9,677
Utilized—cash			(7,245)	(1,623)
Utilized—non-cash			(2,093)	(6,152)
Non-cash reserve release			(6,226)	(967)
Balance, end of period	190	13,791	190	13,791
2010 Restructuring Plan [Member] | Employee Severance [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			10,156	20,361
Restructuring expense			0	4,005
Utilized—cash			(9,710)	(13,894)
Non-cash reserve release			(446)	0
Balance, end of period	0	10,472	0	10,472
2009 Restructuring Plan [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			5,357	10,089
Restructuring expense			2,446	16,153
Utilized—cash			(4,227)	(14,516)
Utilized—non-cash			0	0
Non-cash reserve release			(1,531)	(2,027)
Balance, end of period	2,045	9,699	2,045	9,699
2009 Restructuring Plan [Member] | Employee Severance [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			5,196	10,089
Restructuring expense			0	4,166
Utilized—cash			(1,620)	(2,529)
Utilized—non-cash			0	0
Non-cash reserve release			(1,531)	(2,027)
Balance, end of period	2,045	9,699	2,045	9,699
2009 Restructuring Plan [Member] | Other [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			161	0
Restructuring expense			2,446	11,987
Utilized—cash			(2,607)	(11,987)
Utilized—non-cash			0	0
Non-cash reserve release			0	0
Balance, end of period	0	0	0	0
2009 Restructuring Plan [Member] | Accelerated Depreciation [Member] | Motorcycles And Related Products [Member]
Restructuring Reserve [Roll Forward]
Balance, beginning of period			0	0
Restructuring expense			0	0
Utilized—cash			0	0
Utilized—non-cash			0	0
Non-cash reserve release			0	0
Balance, end of period	$ 0	$ 0	$ 0	$ 0

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Income Taxes

9 Months Ended

Sep. 29, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s 2013 income tax rate for the nine months ended September 29, 2013 was 34.3% compared to 35.3% for the same period last year. The Company's 2013 effective tax rate was favorably impacted by the reinstatement of the U.S. Federal Research and Development tax credit with the enactment of the American Taxpayer Relief Act of 2012 at the beginning of 2013 and a third quarter adjustment to the valuation allowance on certain deferred tax assets. During the first nine months of 2013, the Company recorded the benefits of the Research and Development tax credit for the full year of 2012 and for the three quarters of 2013.

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Fair Value Measurements

9 Months Ended

Sep. 29, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Certain assets and liabilities are recorded at fair value in the financial statements; some of these are measured on a recurring basis while others are measured on a non-recurring basis. Assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. In determining fair value of assets and liabilities, the Company uses various valuation techniques. The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded, and other characteristics particular to the transaction. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant management discretion. For other financial instruments, pricing inputs are less observable in the market and may require management judgment.

The Company assesses the inputs used to measure fair value using a three-tier hierarchy. The hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs include quoted prices for identical instruments and are the most observable.

Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. The Company uses the market approach to derive the fair value for its level 2 fair value measurements. Foreign currency exchange contracts are valued using publicly quoted spot and forward prices; commodity contracts are valued using publicly quoted prices, where available, or dealer quotes; interest rate swaps are valued using publicized swap curves; and investments in marketable securities and cash equivalents are valued using publicly quoted prices.

Level 3 inputs are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs is reflected in the hierarchy assessment disclosed in the following tables.

Recurring Fair Value Measurements

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):

	September 29, 2013
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	832,344	$	506,792	$	325,552	$	—
Marketable securities	122,234		—		122,234		—
Derivatives	1,733		—		1,733		—
	$	956,311	$	506,792	$	449,519	$	—
Liabilities:
Derivatives	$	1,152	$	—	$	1,152	$	—
	December 31, 2012
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	852,979	$	690,691	$	162,288	$	—
Marketable securities	135,634		—		135,634		—
Derivatives	317		—		317		—
	$	988,930	$	690,691	$	298,239	$	—
Liabilities:
Derivatives	$	7,920	$	—	$	7,920	$	—
	September 30, 2012
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	1,417,900	$	1,161,646	$	256,254	$	—
Marketable securities	136,376		—		136,376		—
Derivatives	1,639		—		1,639		—
	$	1,555,915	$	1,161,646	$	394,269	$	—
Liabilities:
Derivatives	$	2,458	$	—	$	2,458	$	—

The hierarchy classification for cash equivalents, as of September 30, 2012, totaling $256.3 million has been revised from Level 1 to Level 2.

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New Accounting Standards

9 Months Ended

Sep. 29, 2013

Accounting Changes and Error Corrections [Abstract]

New Accounting Standards

New Accounting Standards

Accounting Standards Not Yet Adopted

In July 2013, the Financial Accounting Standards Board (FASB) issued ASU No. 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU No. 2013-11). ASU No. 2013-11 amends the guidance within Accounting Standards Codification (ASC) Topic 740, "Income Taxes", to require entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The Company is required to adopt ASU No. 2013-11 beginning in the first quarter of 2014 and is currently evaluating the impact of adoption.

Accounting Standards Recently Adopted

In February 2013, the FASB issued Accounting Standards Update (ASU) No. 2013-02 Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU No. 2013-02). ASU No. 2013-02 requires entities to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company adopted ASU No. 2013-02 effective on January 1, 2013. The required new disclosures are presented in Note 10.

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Fair Value Of Financial Instruments (Summary Of Fair Value And Carrying Value Of Company Financial Instruments) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012
Assets:
Restricted cash	$ 194,329	$ 188,008	$ 217,400
Fair Value [Member]
Assets:
Cash equivalents	1,029,955	1,068,138	1,795,141
Marketable securities	122,234	135,634	136,376
Accounts receivable, net	290,158	230,079	256,193
Derivatives	1,733	317	1,639
Finance receivables, net	6,266,406	5,861,442	5,993,713
Restricted cash	194,329	188,008	217,400
Liabilities:
Accounts payable	326,713	257,386	293,710
Derivatives	1,152	7,920	2,458
Unsecured commercial paper	394,460	294,943	404,693
Asset-backed Canadian commercial paper conduit facility	180,584	175,658	176,855
Medium-term notes	3,092,947	3,199,548	3,623,082
Senior unsecured notes	315,927	338,594	357,328
Term asset-backed securitization debt	1,447,710	1,457,807	1,702,320
Carrying Value [Member]
Assets:
Cash equivalents	1,029,955	1,068,138	1,795,141
Marketable securities	122,234	135,634	136,376
Accounts receivable, net	290,158	230,079	256,193
Derivatives	1,733	317	1,639
Finance receivables, net	6,184,890	5,781,852	5,915,667
Restricted cash	194,329	188,008	217,400
Liabilities:
Accounts payable	326,713	257,386	293,710
Derivatives	1,152	7,920	2,458
Unsecured commercial paper	394,460	294,943	404,693
Asset-backed Canadian commercial paper conduit facility	180,584	175,658	176,855
Medium-term notes	2,858,809	2,881,272	3,297,687
Senior unsecured notes	303,000	303,000	303,000
Term asset-backed securitization debt	$ 1,446,656	$ 1,447,776	$ 1,692,065

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Finance Receivables (Aging Of Past Due Finance Receivables Including Non Accrual Status Finance Receivables) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 6,149,656	$ 5,709,381	$ 5,877,651
31-60 Days Past Due	99,936	114,588	101,151
61-90 Days Past Due	28,833	37,517	30,095
Greater than 90 Days Past Due	18,386	28,033	19,896
Total Past Due	147,155	180,138	151,142
Total Finance Receivables	6,296,811	5,889,519	6,028,793
Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	5,260,125	4,894,675	5,093,496
31-60 Days Past Due	99,255	113,604	100,706
61-90 Days Past Due	28,531	37,239	29,878
Greater than 90 Days Past Due	17,759	27,597	19,390
Total Past Due	145,545	178,440	149,974
Total Finance Receivables	5,405,670	5,073,115	5,243,470
Wholesale [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	889,531	814,706	784,155
31-60 Days Past Due	681	984	445
61-90 Days Past Due	302	278	217
Greater than 90 Days Past Due	627	436	506
Total Past Due	1,610	1,698	1,168
Total Finance Receivables	$ 891,141	$ 816,404	$ 785,323

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 29, 2013

Compensation and Retirement Disclosure [Abstract]

Components Of Net Periodic Benefit Costs

Components of net periodic benefit costs were as follows (in thousands):

	Three months ended						Nine months ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Pension and SERPA Benefits
Service cost	$	8,997		$	8,420		$	26,990		$	25,260
Interest cost	19,812			20,816			59,436			62,448
Expected return on plan assets	(31,832		)	(29,277		)	(95,496		)	(87,832		)
Amortization of unrecognized:
Prior service cost	437			740			1,310			2,219
Net loss	14,652			10,969			43,956			32,906
Net periodic benefit cost	$	12,066		$	11,668		$	36,196		$	35,001
Postretirement Healthcare Benefits
Service cost	$	1,965		$	1,854		$	5,894		$	5,560
Interest cost	3,900			4,578			11,699			13,733
Expected return on plan assets	(2,384		)	(2,356		)	(7,153		)	(7,068		)
Amortization of unrecognized:
Prior service credit	(963		)	(963		)	(2,890		)	(2,890		)
Net loss	2,137			1,855			6,412			5,566
Net periodic benefit cost	$	4,655		$	4,968		$	13,962		$	14,901

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Commitment And Contingencies (Detail) (York, Pennsylvania Facility [Member], USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 29, 2013
York, Pennsylvania Facility [Member]
Site Contingency [Line Items]
Site contingency third party cost percentage of total cost	53.00%
Site contingency portion of total cost	47.00%
Estimate of Company's share of York environmental matters	$ 3.4

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Product Warranty And Safety Recall Campaigns (Narrative) (Detail) (USD $) In Millions, unless otherwise specified				9 Months Ended
	Sep. 29, 2013 Safety Recall [Member]	Dec. 31, 2012 Safety Recall [Member]	Sep. 30, 2012 Safety Recall [Member]	Sep. 29, 2013 Motorcycles [Member]	Sep. 29, 2013 Parts and Accessories Finished Goods [Member]	Sep. 29, 2013 Japan [Member] Motorcycles [Member]
Product Information [Line Items]
Standard product warranty, period				2 years	1 year	3 years
Liability for safety recall campaigns	$ 2.5	$ 4.6	$ 5.0

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Employee Benefit Plans

9 Months Ended

Sep. 29, 2013

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Company has a defined benefit pension plan and postretirement healthcare benefit plans that cover certain employees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees which were instituted to replace benefits lost under the Tax Revenue Reconciliation Act of 1993. Net periodic benefit costs are allocated between selling, administrative and engineering expense, cost of goods sold and inventory. Amounts capitalized in inventory are not significant. Components of net periodic benefit costs were as follows (in thousands):

	Three months ended						Nine months ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Pension and SERPA Benefits
Service cost	$	8,997		$	8,420		$	26,990		$	25,260
Interest cost	19,812			20,816			59,436			62,448
Expected return on plan assets	(31,832		)	(29,277		)	(95,496		)	(87,832		)
Amortization of unrecognized:
Prior service cost	437			740			1,310			2,219
Net loss	14,652			10,969			43,956			32,906
Net periodic benefit cost	$	12,066		$	11,668		$	36,196		$	35,001
Postretirement Healthcare Benefits
Service cost	$	1,965		$	1,854		$	5,894		$	5,560
Interest cost	3,900			4,578			11,699			13,733
Expected return on plan assets	(2,384		)	(2,356		)	(7,153		)	(7,068		)
Amortization of unrecognized:
Prior service credit	(963		)	(963		)	(2,890		)	(2,890		)
Net loss	2,137			1,855			6,412			5,566
Net periodic benefit cost	$	4,655		$	4,968		$	13,962		$	14,901

During the first nine months of 2013 and 2012, the Company voluntarily contributed $175 million and $200 million, respectively, in cash to further fund its pension plans. No additional pension contributions are required in 2013. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 29, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Loss

The following tables set forth the changes in accumulated other comprehensive loss (AOCL) (in thousands):

	Three months ended September 29, 2013
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	29,461		$	50		$	6,674		$	(635,375	)	$	(599,190	)
Other comprehensive income (loss) before reclassifications	10,040			(297		)	(10,297		)	—			(554		)
Income tax	(808		)	110			3,813			—			3,115
Net other comprehensive income before reclassifications	9,232			(187		)	(6,484		)	—			2,561
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(47		)	—			(47		)
Realized (gains) losses - commodities contracts(b)	—			—			21			—			21
Realized (gains) losses - interest rate swaps(c)	—			—			—			—			—
Prior service credits(d)	—			—			—			(526		)	(526		)
Actuarial losses(d)	—			—			—			16,789			16,789
Total before tax	—			—			(26		)	16,263			16,237
Income tax expense (benefit)	—			—			10			(6,024		)	(6,014		)
Net reclassifications	—			—			(16		)	10,239			10,223
Other comprehensive income (loss)	9,232			(187		)	(6,500		)	10,239			12,784
Ending Balance	$	38,693		$	(137	)	$	174		$	(625,136	)	$	(586,406	)

	Three months ended September 30, 2012
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	44,571		$	655		$	2,654		$	(517,436	)	$	(469,556	)
Other comprehensive income before reclassifications	8,388			529			1,717			—			10,634
Income tax	(963		)	(196		)	(636		)	—			(1,795		)
Net other comprehensive income before reclassifications	7,425			333			1,081			—			8,839
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(7,742		)	—			(7,742		)
Realized (gains) losses - commodities contracts(b)	—			—			81			—			81
Realized (gains) losses - interest rate swaps(c)	—			—			327			—			327
Prior service credits(d)	—			—			—			(233		)	(233		)
Actuarial losses(d)	—			—			—			12,824			12,824
Total before tax	—			—			(7,334		)	12,591			5,257
Income tax expense (benefit)	—			—			2,699			(4,658		)	(1,959		)
Net reclassifications	—			—			(4,635		)	7,933			3,298
Other comprehensive income (loss)	7,425			333			(3,554		)	7,933			12,137
Ending Balance	$	51,996		$	988		$	(900	)	$	(509,503	)	$	(457,419	)

	Nine months ended September 29, 2013
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	51,335		$	677		$	(3,837	)	$	(655,853	)	$	(607,678	)
Other comprehensive (loss) income before reclassifications	(13,812		)	(1,293		)	6,072			—			(9,033		)
Income tax	1,170			479			(2,248		)	—			(599		)
Net other comprehensive income before reclassifications	(12,642		)	(814		)	3,824			—			(9,632		)
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(61		)	—			(61		)
Realized (gains) losses - commodities contracts(b)	—			—			8			—			8
Realized (gains) losses - interest rate swaps(c)	—			—			345			—			345
Prior service credits(d)	—			—			—			(1,580		)	(1,580		)
Actuarial losses(d)	—			—			—			50,368			50,368
Total before tax	—			—			292			48,788			49,080
Income tax expense	—			—			(105		)	(18,071		)	(18,176		)
Net reclassifications	—			—			187			30,717			30,904
Other comprehensive (loss) income	(12,642		)	(814		)	4,011			30,717			21,272
Ending Balance	$	38,693		$	(137	)	$	174		$	(625,136	)	$	(586,406	)

	Nine months ended September 30, 2012
	Foreign currency translation adjustments			Marketable securities			Derivative financial instruments			Pension and postretirement benefit plans			Total
Beginning balance	$	49,935		$	327		$	6,307		$	(533,302	)	$	(476,733	)
Other comprehensive income before reclassifications	3,087			1,050			5,363			—			9,500
Income tax	(1,026		)	(389		)	(1,987		)	—			(3,402		)
Net other comprehensive income before reclassifications	2,061			661			3,376			—			6,098
Reclassifications:
Realized (gains) losses - marketable securities (a)	—			—			—			—			—
Realized (gains) losses - foreign currency contracts(b)	—			—			(19,846		)	—			(19,846		)
Realized (gains) losses - commodities contracts(b)	—			—			737			—			737
Realized (gains) losses - interest rate swaps(c)	—			—			2,262			—			2,262
Prior service credits(d)	—			—			—			(671		)	(671		)
Actuarial losses(d)	—			—			—			38,472			38,472
Total before tax	—			—			(16,847		)	37,801			20,954
Income tax expense (benefit)	—			—			6,264			(14,002		)	(7,738		)
Net reclassifications	—			—			(10,583		)	23,799			13,216
Other comprehensive income (loss)	2,061			661			(7,207		)	23,799			19,314
Ending Balance	$	51,996		$	988		$	(900	)	$	(509,503	)	$	(457,419	)

(a) Amounts reclassified to net income are included in investment income.

(b) Amounts reclassified to net income are included in motorcycles and related products cost of goods sold.

(c) Amounts reclassified to net income are presented in financial services interest expense.

(d) Amounts reclassified are included in the computation of net periodic period cost. See note 14 for information related to pension and postretirement benefit plans.

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Supplemental Consolidating Data (Balance Sheet) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 1,029,955	$ 1,068,138	$ 1,795,141	$ 1,526,950
Marketable securities	122,234	135,634	136,376
Accounts receivable, net	290,158	230,079	256,193
Finance receivables, net	1,829,612	1,743,045	1,726,061
Inventories	401,199	393,524	379,129
Restricted cash	194,329	188,008	217,400
Other current assets	225,188	292,508	237,396
Total current assets	4,092,675	4,050,936	4,747,696
Finance receivables, net	4,355,278	4,038,807	4,189,606
Property, plant and equipment, net	795,235	815,464	764,835
Goodwill	30,041	29,530	28,928
Other long-term assets	210,779	236,036	284,118
Total assets	9,484,008	9,170,773	10,015,183
Accounts payable	326,713	257,386	293,710
Accrued liabilities	539,227	513,591	606,078
Short-term debt	394,460	294,943	404,693
Long-term Debt, Current Maturities	721,316	437,162	997,194
Total current liabilities	1,981,716	1,503,082	2,301,675
Long-term debt	4,067,733	4,370,544	4,472,413
Pension liability	144,563	330,294	125,664
Postretirement healthcare benefits	267,919	278,062	261,564
Other long-term liabilities	140,230	131,167	150,504
Total shareholders' equity	2,881,847	2,557,624	2,703,363
Total liabilities and shareholders' equity	9,484,008	9,170,773	10,015,183
Motorcycles And Related Products Operations [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	652,961	727,716	1,048,429	943,330
Marketable securities	122,234	135,634	136,376
Accounts receivable, net	1,228,320	781,642	623,021
Finance receivables, net	0	0	0
Inventories	401,199	393,524	379,129
Restricted cash	0	0	0
Other current assets	160,538	230,905	177,278
Total current assets	2,565,252	2,269,421	2,364,233
Finance receivables, net	0	0	0
Property, plant and equipment, net	763,469	783,068	735,719
Goodwill	30,041	29,530	28,928
Other long-term assets	272,490	292,764	338,987
Total assets	3,631,252	3,374,783	3,467,867
Accounts payable	276,197	221,064	251,755
Accrued liabilities	455,393	439,144	521,867
Short-term debt	0	0	0
Long-term Debt, Current Maturities	303,000	0	0
Total current liabilities	1,034,590	660,208	773,622
Long-term debt	0	303,000	303,000
Pension liability	144,563	330,294	125,664
Postretirement healthcare benefits	267,919	278,062	261,564
Other long-term liabilities	121,003	114,476	134,509
Total shareholders' equity	2,063,177	1,688,743	1,869,508
Total liabilities and shareholders' equity	3,631,252	3,374,783	3,467,867
Financial Services Operations [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	376,994	340,422	746,712	583,620
Marketable securities	0	0	0
Accounts receivable, net	0	0	0
Finance receivables, net	1,829,612	1,743,045	1,726,061
Inventories	0	0	0
Restricted cash	194,329	188,008	217,400
Other current assets	64,650	57,609	60,118
Total current assets	2,465,585	2,329,084	2,750,291
Finance receivables, net	4,355,278	4,038,807	4,189,606
Property, plant and equipment, net	31,766	32,396	29,116
Goodwill	0	0	0
Other long-term assets	14,804	19,468	20,193
Total assets	6,867,433	6,419,755	6,989,206
Accounts payable	988,678	587,885	408,783
Accrued liabilities	86,003	74,447	87,936
Short-term debt	394,460	294,943	404,693
Long-term Debt, Current Maturities	418,316	437,162	997,194
Total current liabilities	1,887,457	1,394,437	1,898,606
Long-term debt	4,067,733	4,067,544	4,169,413
Pension liability	0	0	0
Postretirement healthcare benefits	0	0	0
Other long-term liabilities	19,227	16,691	15,995
Total shareholders' equity	893,016	941,083	905,192
Total liabilities and shareholders' equity	6,867,433	6,419,755	6,989,206
Eliminations & Adjustments [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	0	0	0	0
Marketable securities	0	0	0
Accounts receivable, net	(938,162)	(551,563)	(366,828)
Finance receivables, net	0	0	0
Inventories	0	0	0
Restricted cash	0	0	0
Other current assets	0	3,994	0
Total current assets	(938,162)	(547,569)	(366,828)
Finance receivables, net	0	0	0
Property, plant and equipment, net	0	0	0
Goodwill	0	0	0
Other long-term assets	(76,515)	(76,196)	(75,062)
Total assets	(1,014,677)	(623,765)	(441,890)
Accounts payable	(938,162)	(551,563)	(366,828)
Accrued liabilities	(2,169)	0	(3,725)
Short-term debt	0	0	0
Long-term Debt, Current Maturities	0	0	0
Total current liabilities	(940,331)	(551,563)	(370,553)
Long-term debt	0	0	0
Pension liability	0	0	0
Postretirement healthcare benefits	0	0	0
Other long-term liabilities	0	0	0
Total shareholders' equity	(74,346)	(72,202)	(71,337)
Total liabilities and shareholders' equity	$ (1,014,677)	$ (623,765)	$ (441,890)

XML

Supplemental Consolidating Data

9 Months Ended

Sep. 29, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Consolidating Data

Supplemental Consolidating Data

The supplemental consolidating data for the periods noted is presented for informational purposes. The supplemental consolidating data may be different than segment information presented elsewhere due to the allocation of intercompany eliminations to reporting segments. All supplemental data is presented in thousands.

	Three months ended September 29, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,183,016		$	—	$	(2,732	)	$	1,180,284
Financial services	—			163,829		(395		)	163,434
Total revenue	1,183,016			163,829		(3,127		)	1,343,718
Costs and expenses:
Motorcycles and related products cost of goods sold	763,969			—		—			763,969
Financial services interest expense	—			39,944		—			39,944
Financial services provision for credit losses	—			14,604		—			14,604
Selling, administrative and engineering expense	240,593			35,550		(3,127		)	273,016
Restructuring expense	646			—		—			646
Total costs and expenses	1,005,208			90,098		(3,127		)	1,092,179
Operating income	177,808			73,731		—			251,539
Investment income	1,161			—		—			1,161
Interest expense	11,369			—		—			11,369
Income before provision for income taxes	167,600			73,731		—			241,331
Provision for income taxes	51,721			26,894		—			78,615
Net income	$	115,879		$	46,837	$	—		$	162,716
	Nine months ended September 29, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	4,233,990		$	—	$	(7,992	)	$	4,225,998
Financial services	—			484,461		(1,221		)	483,240
Total revenue	4,233,990			484,461		(9,213		)	4,709,238
Costs and expenses:
Motorcycles and related products cost of goods sold	2,688,371			—		—			2,688,371
Financial services interest expense	—			126,004		—			126,004
Financial services provision for credit losses	—			39,011		—			39,011
Selling, administrative and engineering expense	730,664			104,448		(9,213		)	825,899
Restructuring expense	(1,713		)	—		—			(1,713		)
Total costs and expenses	3,417,322			269,463		(9,213		)	3,677,572
Operating income	816,668			214,998		—			1,031,666
Investment income	189,546			—		(185,000		)	4,546
Interest expense	33,998			—		—			33,998
Income before provision for income taxes	972,216			214,998		(185,000		)	1,002,214
Provision for income taxes	265,278			78,352		—			343,630
Net income	$	706,938		$	136,646	$	(185,000	)	$	658,584

	Three months ended September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,091,887	$	—	$	(2,619	)	$	1,089,268
Financial services	—		161,438		(411		)	161,027
Total revenue	1,091,887		161,438		(3,030		)	1,250,295
Costs and expenses:
Motorcycles and related products cost of goods sold	711,364		—		—			711,364
Financial services interest expense	—		46,231		—			46,231
Financial services provision for credit losses	—		9,069		—			9,069
Selling, administrative and engineering expense	224,393		35,996		(3,030		)	257,359
Restructuring expense	9,170		—		—			9,170
Total costs and expenses	944,927		91,296		(3,030		)	1,033,193
Operating income	146,960		70,142		—			217,102
Investment income	1,447		—		—			1,447
Interest expense	11,438		—		—			11,438
Income before provision for income taxes	136,969		70,142		—			207,111
Provision for income taxes	47,859		25,251		—			73,110
Net income	$	89,110	$	44,891	$	—		$	134,001
	Nine months ended September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	3,939,673	$	—	$	(7,989	)	$	3,931,684
Financial services	—		478,187		(225		)	477,962
Total revenue	3,939,673		478,187		(8,214		)	4,409,646
Costs and expenses:
Motorcycles and related products cost of goods sold	2,533,453		—		—			2,533,453
Financial services interest expense	—		146,199		—			146,199
Financial services provision for credit losses	—		12,823		—			12,823
Selling, administrative and engineering expense	709,240		105,231		(8,214		)	806,257
Restructuring expense	26,841		—		—			26,841
Total costs and expenses	3,269,534		264,253		(8,214		)	3,525,573
Operating income	670,139		213,934		—			884,073
Investment income	230,611		—		(225,000		)	5,611
Interest expense	34,528		—		—			34,528
Income before provision for income taxes	866,222		213,934		(225,000		)	855,156
Provision for income taxes	224,854		77,016		—			301,870
Net income	$	641,368	$	136,918	$	(225,000	)	$	553,286

	September 29, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	652,961	$	376,994	$	—		$	1,029,955
Marketable securities	122,234		—		—			122,234
Accounts receivable, net	1,228,320		—		(938,162		)	290,158
Finance receivables, net	—		1,829,612		—			1,829,612
Inventories	401,199		—		—			401,199
Restricted cash	—		194,329		—			194,329
Other current assets	160,538		64,650		—			225,188
Total current assets	2,565,252		2,465,585		(938,162		)	4,092,675
Finance receivables, net	—		4,355,278		—			4,355,278
Property, plant and equipment, net	763,469		31,766		—			795,235
Goodwill	30,041		—		—			30,041
Other long-term assets	272,490		14,804		(76,515		)	210,779
	$	3,631,252	$	6,867,433	$	(1,014,677	)	$	9,484,008
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	276,197	$	988,678	$	(938,162	)	$	326,713
Accrued liabilities	455,393		86,003		(2,169		)	539,227
Short-term debt	—		394,460		—			394,460
Current portion of long-term debt	303,000		418,316		—			721,316
Total current liabilities	1,034,590		1,887,457		(940,331		)	1,981,716
Long-term debt	—		4,067,733		—			4,067,733
Pension liability	144,563		—		—			144,563
Postretirement healthcare benefits	267,919		—		—			267,919
Other long-term liabilities	121,003		19,227		—			140,230
Shareholders’ equity	2,063,177		893,016		(74,346		)	2,881,847
	$	3,631,252	$	6,867,433	$	(1,014,677	)	$	9,484,008

	December 31, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	727,716	$	340,422	$	—		$	1,068,138
Marketable securities	135,634		—		—			135,634
Accounts receivable, net	781,642		—		(551,563		)	230,079
Finance receivables, net	—		1,743,045		—			1,743,045
Inventories	393,524		—		—			393,524
Restricted cash	—		188,008		—			188,008
Other current assets	230,905		57,609		3,994			292,508
Total current assets	2,269,421		2,329,084		(547,569		)	4,050,936
Finance receivables, net	—		4,038,807		—			4,038,807
Property, plant and equipment, net	783,068		32,396		—			815,464
Goodwill	29,530		—		—			29,530
Other long-term assets	292,764		19,468		(76,196		)	236,036
	$	3,374,783	$	6,419,755	$	(623,765	)	$	9,170,773
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	221,064	$	587,885	$	(551,563	)	$	257,386
Accrued liabilities	439,144		74,447		—			513,591
Short-term debt	—		294,943		—			294,943
Current portion of long-term debt	—		437,162		—			437,162
Total current liabilities	660,208		1,394,437		(551,563		)	1,503,082
Long-term debt	303,000		4,067,544		—			4,370,544
Pension liability	330,294		—		—			330,294
Postretirement healthcare benefits	278,062		—		—			278,062
Other long-term liabilities	114,476		16,691		—			131,167
Shareholders’ equity	1,688,743		941,083		(72,202		)	2,557,624
	$	3,374,783	$	6,419,755	$	(623,765	)	$	9,170,773

	September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,048,429	$	746,712	$	—		$	1,795,141
Marketable securities	136,376		—		—			136,376
Accounts receivable, net	623,021		—		(366,828		)	256,193
Finance receivables, net	—		1,726,061		—			1,726,061
Inventories	379,129		—		—			379,129
Restricted cash	—		217,400		—			217,400
Other current assets	177,278		60,118		—			237,396
Total current assets	2,364,233		2,750,291		(366,828		)	4,747,696
Finance receivables, net	—		4,189,606		—			4,189,606
Property, plant and equipment, net	735,719		29,116		—			764,835
Goodwill	28,928		—		—			28,928
Other long-term assets	338,987		20,193		(75,062		)	284,118
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	251,755	$	408,783	$	(366,828	)	$	293,710
Accrued liabilities	521,867		87,936		(3,725		)	606,078
Short-term debt	—		404,693		—			404,693
Current portion of long-term debt	—		997,194		—			997,194
Total current liabilities	773,622		1,898,606		(370,553		)	2,301,675
Long-term debt	303,000		4,169,413		—			4,472,413
Pension liability	125,664		—		—			125,664
Postretirement healthcare liability	261,564		—		—			261,564
Other long-term liabilities	134,509		15,995		—			150,504
Shareholders’ equity	1,869,508		905,192		(71,337		)	2,703,363
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183

	Nine months ended September 29, 2013
	Motorcycles &  Related Products Operations			Financial Services  Operations		Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net Income	$	706,938		136,646		$	(185,000	)	$	658,584
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	118,224			4,434		—			122,658
Amortization of deferred loan origination costs	—			63,548					63,548
Amortization of financing origination fees	355			6,639		—			6,994
Provision for employee long-term benefits	50,158			—		—			50,158
Contributions to pension and postretirement plans	(197,243		)	—		—			(197,243		)
Stock compensation expense	28,886			2,144		—			31,030
Net change in wholesale finance receivables related to sales	—			—		(71,869		)	(71,869		)
Provision for credit losses	—			39,011		—			39,011
Loss on debt extinguishment	—			4,947		—			4,947
Foreign currency adjustments	12,874			—		—			12,874
Other, net	207			(270	)	—			(63		)
Change in current assets and current liabilities:
Accounts receivable	(302,434		)	—		236,599			(65,835		)
Finance receivables—accrued interest and other	—			937		—			937
Inventories	(19,233		)	—		—			(19,233		)
Accounts payable and accrued liabilities	113,902			264,974		(236,599		)	142,277
Restructuring reserves	(24,521		)	—		—			(24,521		)
Derivative instruments	(1,790		)	(28	)	—			(1,818		)
Other	74,205			(1,538	)	—			72,667
Total adjustments	(146,410		)	384,798		(71,869		)	166,519
Net cash provided by (used by) operating activities	560,528			521,444		(256,869		)	825,103

	Nine months ended September 29, 2013
	Motorcycles &  Related Products Operations			Financial Services  Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(107,886		)	(3,804		)	—			(111,690		)
Origination of finance receivables	—			(5,832,489		)	3,215,389			(2,617,100		)
Collections of finance receivables	—			5,314,439			(3,143,520		)	2,170,919
Purchases of marketable securities	(4,998		)	—			—			(4,998		)
Sales and redemptions of marketable securities	17,105			—			—			17,105
Other	6,721			—			—			6,721
Net cash (used by) provided by investing activities	(89,058		)	(521,854		)	71,869			(539,043		)
Cash flows from financing activities:
Repayments of medium-term notes	—			(27,858		)	—			(27,858		)
Loan to HDFS	(150,000		)	150,000			—			—
Proceeds from securitization of debt	—			647,516			—			647,516
Repayments of securitization debt	—			(650,424		)	—			(650,424		)
Net increase in credit facilities and unsecured commercial paper	—			99,416			—			99,416
Borrowings of asset-backed commercial paper	—			69,555			—			69,555
Repayments of asset-backed commercial paper	—			(58,990		)	—			(58,990		)
Net change in restricted cash	—			(6,321		)	—			(6,321		)
Dividends paid	(140,772		)	(185,000		)	185,000			(140,772		)
Purchase of common stock for treasury	(302,196		)	—			—			(302,196		)
Excess tax benefits from share-based payments	18,444			—			—			18,444
Issuance of common stock under employee stock option plans	39,145			—			—			39,145
Net cash (used by) provided by financing activities	(535,379		)	37,894			185,000			(312,485		)
Effect of exchange rate changes on cash and cash equivalents	(10,846		)	(912		)	—			(11,758		)
Net (decrease) increase in cash and cash equivalents	$	(74,755	)	$	36,572		$	—		$	(38,183	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	727,716		$	340,422		$	—		$	1,068,138
Net (decrease) increase in cash and cash equivalents	(74,755		)	36,572			—			(38,183		)
Cash and cash equivalents—end of period	$	652,961		$	376,994		$	—		$	1,029,955

	Nine months ended September 30, 2012
	Motorcycles &  Related Products Operations			Financial Services  Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	641,368		$	136,918		$	(225,000	)	$	553,286
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	122,570			4,873			—			127,443
Amortization of deferred loan origination costs	—			58,438			—			58,438
Amortization of financing origination fees	355			7,107			—			7,462
Provision for employee long-term benefits	48,808			1,540			—			50,348
Contributions to pension and postretirement plans	(220,733		)	—			—			(220,733		)
Stock compensation expense	27,881			2,406			—			30,287
Net change in wholesale finance receivables related to sales	—			—			5,570			5,570
Provision for credit losses	—			12,823			—			12,823
Foreign currency adjustments	8,692			—			—			8,692
Other, net	2,252			7,159			—			9,411
Change in current assets and current liabilities:
Accounts receivable	(230,156		)	—			192,252			(37,904		)
Finance receivables—accrued interest and other	—			1,597			—			1,597
Inventories	36,463			—			—			36,463
Accounts payable and accrued liabilities	86,513			205,381			(192,252		)	99,642
Restructuring reserves	(9,177		)	—			—			(9,177		)
Derivative instruments	739			(128		)	—			611
Other	(19,550		)	(2,211		)	—			(21,761		)
Total adjustments	(145,343		)	298,985			5,570			159,212
Net cash provided by (used by) operating activities	496,025			435,903			(219,430		)	712,498
Cash flows from investing activities:
Capital expenditures	(91,469		)	(3,860		)	—			(95,329		)
Origination of finance receivables	—			(5,315,732		)	2,987,079			(2,328,653		)
Collections of finance receivables	—			5,123,674			(2,992,649		)	2,131,025
Purchases of marketable securities	(4,993		)	—			—			(4,993		)
Sales and redemptions of marketable securities	23,046			—			—			23,046
Net cash used by investing activities	(73,416		)	(195,918		)	(5,570		)	(274,904		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			993,737			—			993,737
Proceeds from securitization debt	—			763,895			—			763,895
Repayments of securitization debt	—			(1,161,592		)	—			(1,161,592		)
Borrowings of asset-backed commercial paper	—			182,131			—			182,131
Repayments of asset-backed commercial paper	—			(6,538		)	—			(6,538		)
Net decrease in credit facilities and unsecured commercial paper	—			(634,874		)	—			(634,874		)
Net change in restricted cash	—			12,255			—			12,255
Dividends paid	(106,560		)	(225,000		)	225,000			(106,560		)
Purchase of common stock for treasury	(257,981		)	—			—			(257,981		)
Excess tax benefits from share-based payments	16,390			—			—			16,390
Issuance of common stock under employee stock option plans	36,342			—			—			36,342
Net cash (used by) provided by financing activities	(311,809		)	(75,986		)	225,000			(162,795		)
Effect of exchange rate changes on cash and cash equivalents	(5,701		)	(907		)	—			(6,608		)
Net increase in cash and cash equivalents	$	105,099		$	163,092		$	—		$	268,191
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	943,330		$	583,620		$	—		$	1,526,950
Net increase in cash and cash equivalents	105,099			163,092			—			268,191
Cash and cash equivalents—end of period	$	1,048,429		$	746,712		$	—		$	1,795,141

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Business Segments

9 Months Ended

Sep. 29, 2013

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company operates in two business segments: Motorcycles and Financial Services. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately based on the fundamental differences in their operations. Selected segment information is set forth below (in thousands):

	Three months ended				Nine months ended
	September 29, 2013		September 30, 2012		September 29, 2013			September 30, 2012
Motorcycles net revenue	$	1,180,284	$	1,089,268	$	4,225,998		$	3,931,684
Gross profit	416,315		377,904		1,537,627			1,398,231
Selling, administrative and engineering expense	240,198		223,982		729,443			709,015
Restructuring expense (benefit)	646		9,170		(1,713		)	26,841
Operating income from Motorcycles	175,471		144,752		809,897			662,375
Financial services revenue	163,434		161,027		483,240			477,962
Financial services expense	87,366		88,677		261,471			256,264
Operating income from Financial Services	76,068		72,350		221,769			221,698
Operating income	$	251,539	$	217,102	$	1,031,666		$	884,073

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Document and Entity Information	9 Months Ended
	Sep. 29, 2013	Nov. 01, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	HARLEY DAVIDSON INC
Entity Central Index Key	0000793952
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 29, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		221,107,879

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Commitment and Contingencies

9 Months Ended

Sep. 29, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitment and Contingencies

Commitments and Contingencies

The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining required reserves related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. The required reserves are monitored on an ongoing basis and are updated based on new developments or new information in each matter.

Environmental Protection Agency Notice

In December 2009, the Company received formal, written requests for information from the United States Environmental Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels, (ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written responses to the EPA’s inquiry and has engaged in discussions with the EPA. Since that time, the EPA has delivered various additional requests for information to which the Company has responded. It is possible that a result of the EPA’s investigation will be some form of enforcement action by the EPA that will seek a fine or other relief. However, at this time the Company does not know and cannot reasonably estimate the impact of any remedies the EPA might seek.

York Environmental Matters:

The Company is involved with government agencies and groups of potentially responsible parties in various environmental matters, including a matter involving the cleanup of soil and groundwater contamination at its York, Pennsylvania facility. The York facility was formerly used by the U.S. Navy and AMF prior to the purchase of the York facility by the Company from AMF in 1981. Although the Company is not certain as to the full extent of the environmental contamination at the York facility, it has been working with the Pennsylvania Department of Environmental Protection (PADEP) since 1986 in undertaking environmental investigation and remediation activities, including an ongoing site-wide remedial investigation/feasibility study (RI/FS). In January 1995, the Company entered into a settlement agreement (the Agreement) with the Navy. The Agreement calls for the Navy and the Company to contribute amounts into a trust equal to 53% and 47%, respectively, of future costs associated with environmental investigation and remediation activities at the York facility (Response Costs). The trust administers the payment of the Response Costs incurred at the York facility as covered by the Agreement.

In February 2002, the Company was advised by the EPA that it considers some of the Company’s remediation activities at the York facility to be subject to the EPA’s corrective action program under the Resource Conservation and Recovery Act (RCRA) and offered the Company the option of addressing corrective action under a RCRA facility lead agreement. In July 2005, the York facility was designated as the first site in Pennsylvania to be addressed under the “One Cleanup Program.” The program provides a more streamlined and efficient oversight of voluntary remediation by both PADEP and EPA and will be carried out consistent with the Agreement with the Navy. As a result, the RCRA facility lead agreement has been superseded.

The Company estimates that its share of the future Response Costs at the York facility will be approximately $3.4 million and has established a reserve for this amount which is included in accrued liabilities in the Condensed Consolidated Balance Sheets. As noted above, the RI/FS is still underway and given the uncertainty that exists concerning the nature and scope of additional environmental investigation and remediation that may ultimately be required under the RI/FS or otherwise at the York facility, we are unable to make a reasonable estimate of those additional costs, if any, that may result.

The estimate of the Company’s future Response Costs that will be incurred at the York facility is based on reports of independent environmental consultants retained by the Company, the actual costs incurred to date and the estimated costs to complete the necessary investigation and remediation activities. Response Costs are expected to be paid primarily over a period of several years ending in 2017 although certain Response Costs may continue for some time beyond 2017.

Product Liability Matters:

The Company is involved in product liability lawsuits related to the operation of its business. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and that product liability will not have a material adverse effect on the Company’s consolidated financial statements.

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Earnings Per Share (Narrative) (Detail) (Stock Option [Member]) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares considered anti-dilutive and excluded from computation	0.9	2.2	1.1	2.3

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Earnings Per Share (Reconciliation Of Earnings Per Share Basic And Diluted) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Numerator:
Net Income	$ 162,716	$ 134,001	$ 658,584	$ 553,286
Denominator:
Denominator for basic earnings per share - weighted-average common shares	221,936	226,020	223,134	227,953
Effect of dilutive securities - employee stock compensation plan	1,550	1,969	1,562	2,117
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	223,486	227,989	224,696	230,070
Basic (in dollars per share)	$ 0.73	$ 0.59	$ 2.95	$ 2.43
Diluted (in dollars per share)	$ 0.73	$ 0.59	$ 2.93	$ 2.40