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 June 29, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,836,974	$	—	$	(2,689	)	$	1,834,285
Financial Services	—		166,963		(549		)	166,414
Total revenue	1,836,974		166,963		(3,238		)	2,000,699
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,110,146		—		—			1,110,146
Financial Services interest expense	—		40,741		—			40,741
Financial Services provision for credit losses	—		15,961		—			15,961
Selling, administrative and engineering expense	251,432		37,962		(3,238		)	286,156
Total costs and expenses	1,361,578		94,664		(3,238		)	1,453,004
Operating income	475,396		72,299		—			547,695
Investment income	1,772		—		—			1,772
Interest expense	393		—		—			393
Income before provision for income taxes	476,775		72,299		—			549,074
Provision for income taxes	168,303		26,618		—			194,921
Net income	$	308,472	$	45,681	$	—		$	354,153
	Six months ended June 29, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	3,410,941	$	—	$	(4,968	)	$	3,405,973
Financial Services	—		321,649		(875		)	320,774
Total revenue	3,410,941		321,649		(5,843		)	3,726,747
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,089,703		—		—			2,089,703
Financial Services interest expense	—		79,598		—			79,598
Financial Services provision for credit losses	—		36,292		—			36,292
Selling, administrative and engineering expense	496,197		72,223		(5,843		)	562,577
Total costs and expenses	2,585,900		188,113		(5,843		)	2,768,170
Operating income	825,041		133,536		—			958,577
Investment income	123,431		—		(120,000		)	3,431
Interest expense	4,070		—		—			4,070
Income before provision for income taxes	944,402		133,536		(120,000		)	957,938
Provision for income taxes	288,876		48,992		—			337,868
Net income	$	655,526	$	84,544	$	(120,000	)	$	620,070



	Three months ended June 30, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,634,165		$	—	$	(2,699	)	$	1,631,466
Financial Services	—			163,335		(494		)	162,841
Total revenue	1,634,165			163,335		(3,193		)	1,794,307
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,029,596			—		—			1,029,596
Financial Services interest expense	—			45,506		—			45,506
Financial Services provision for credit losses	—			11,297		—			11,297
Selling, administrative and engineering expense	249,996			34,581		(3,193		)	281,384
Restructuring benefit	(5,297		)	—		—			(5,297		)
Total costs and expenses	1,274,295			91,384		(3,193		)	1,362,486
Operating income	359,870			71,951		—			431,821
Investment income	1,770			—		—			1,770
Interest expense	11,238			—		—			11,238
Income before provision for income taxes	350,402			71,951		—			422,353
Provision for income taxes	124,271			26,343		—			150,614
Net income	$	226,131		$	45,608	$	—		$	271,739
	Six months ended June 30, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	3,050,974		$	—	$	(5,260	)	$	3,045,714
Financial Services	—			320,632		(826		)	319,806
Total revenue	3,050,974			320,632		(6,086		)	3,365,520
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,924,402			—		—			1,924,402
Financial Services interest expense	—			86,060		—			86,060
Financial Services provision for credit losses	—			24,407		—			24,407
Selling, administrative and engineering expense	490,071			68,898		(6,086		)	552,883
Restructuring benefit	(2,359		)	—		—			(2,359		)
Total costs and expenses	2,412,114			179,365		(6,086		)	2,585,393
Operating income	638,860			141,267		—			780,127
Investment income	188,385			—		(185,000		)	3,385
Interest expense	22,629			—		—			22,629
Income before provision for income taxes	804,616			141,267		(185,000		)	760,883
Provision for income taxes	213,557			51,458		—			265,015
Net income	$	591,059		$	89,809	$	(185,000	)	$	495,868



	June 29, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	635,705	$	363,641	$	—		$	999,346
Marketable securities	57,814		—		—			57,814
Accounts receivable, net	1,317,297		—		(1,027,357		)	289,940
Finance receivables, net	—		2,281,512		—			2,281,512
Inventories	371,597		—		—			371,597
Restricted cash	—		154,681		—			154,681
Deferred income taxes	52,348		38,000		—			90,348
Other current assets	95,429		33,031		—			128,460
Total current assets	2,530,190		2,870,865		(1,027,357		)	4,373,698
Finance receivables, net	—		4,537,405		—			4,537,405
Property, plant and equipment, net	792,642		33,825		—			826,467
Prepaid pension costs	256,279		—		—			256,279
Goodwill	30,252		—		—			30,252
Deferred income taxes	2,915		—		—			2,915
Other long-term assets	111,229		14,506		(76,455		)	49,280
	$	3,723,507	$	7,456,601	$	(1,103,812	)	$	10,076,296
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	316,707	$	1,098,992	$	(1,027,357	)	$	388,342
Accrued liabilities	423,312		79,205		(1,748		)	500,769
Short-term debt	—		619,622		—			619,622
Current portion of long-term debt	—		944,915		—			944,915
Total current liabilities	740,019		2,742,734		(1,029,105		)	2,453,648
Long-term debt	—		3,794,396		—			3,794,396
Pension liability	38,174		—		—			38,174
Postretirement healthcare benefits	209,312		—		—			209,312
Deferred income taxes	35,597		1,574		1,748			38,919
Other long-term liabilities	152,862		22,725		—			175,587
Shareholders’ equity	2,547,543		895,172		(76,455		)	3,366,260
	$	3,723,507	$	7,456,601	$	(1,103,812	)	$	10,076,296



	December 31, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	718,912	$	347,700	$	—		$	1,066,612
Marketable securities	99,009		—		—			99,009
Accounts receivable, net	850,248		—		(589,183		)	261,065
Finance receivables, net	—		1,773,686		—			1,773,686
Inventories	424,507		—		—			424,507
Restricted cash	—		144,807		—			144,807
Deferred income taxes	70,557		33,068		—			103,625
Other current assets	82,717		34,573		(1,798		)	115,492
Total current assets	2,245,950		2,333,834		(590,981		)	3,988,803
Finance receivables, net	—		4,225,877		—			4,225,877
Property, plant and equipment, net	808,005		34,472		—			842,477
Prepaid pension costs	244,871		—		—			244,871
Goodwill	30,452		—		—			30,452
Deferred income taxes	3,339		—		—			3,339
Other long-term assets	126,940		17,360		(75,079		)	69,221
	$	3,459,557	$	6,611,543	$	(666,060	)	$	9,405,040
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	203,786	$	625,191	$	(589,183	)	$	239,794
Accrued liabilities	353,618		77,774		(4,057		)	427,335
Short-term debt	—		666,317		—			666,317
Current portion of long-term debt	303,000		873,140		—			1,176,140
Total current liabilities	860,404		2,242,422		(593,240		)	2,509,586
Long-term debt	—		3,416,713		—			3,416,713
Pension liability	36,371		—		—			36,371
Postretirement healthcare benefits	216,165		—		—			216,165
Deferred income taxes	44,584		2,656		2,259			49,499
Other long-term liabilities	146,686		20,534		—			167,220
Shareholders’ equity	2,155,347		929,218		(75,079		)	3,009,486
	$	3,459,557	$	6,611,543	$	(666,060	)	$	9,405,040



	June 30, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	935,095	$	365,595	$	—		$	1,300,690
Marketable securities	133,631		—		—			133,631
Accounts receivable, net	956,619		—		(702,800		)	253,819
Finance receivables, net	—		2,010,974		—			2,010,974
Inventories	307,717		—		—			307,717
Restricted cash	—		212,004		—			212,004
Other current assets	175,231		60,405		—			235,636
Total current assets	2,508,293		2,648,978		(702,800		)	4,454,471
Finance receivables, net	—		4,214,612		—			4,214,612
Property, plant and equipment, net	758,674		31,889		—			790,563
Goodwill	29,183		—		—			29,183
Other long-term assets	277,409		18,011		(77,051		)	218,369
	$	3,573,559	$	6,913,490	$	(779,851	)	$	9,707,198
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	290,363	$	756,860	$	(702,800	)	$	344,423
Accrued liabilities	392,613		61,015		(3,381		)	450,247
Short-term debt	—		525,745		—			525,745
Current portion of long-term debt	303,000		473,274		—			776,274
Total current liabilities	985,976		1,816,894		(706,181		)	2,096,689
Long-term debt	—		4,234,352		—			4,234,352
Pension liability	148,974		—		—			148,974
Postretirement healthcare liability	271,122		—		—			271,122
Other long-term liabilities	116,645		18,177		—			134,822
Shareholders’ equity	2,050,842		844,067		(73,670		)	2,821,239
	$	3,573,559	$	6,913,490	$	(779,851	)	$	9,707,198



	Six months ended June 29, 2014
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	655,526		$	84,544		$	(120,000	)	$	620,070
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	83,348			3,775			—			87,123
Amortization of deferred loan origination costs	—			45,713						45,713
Amortization of financing origination fees	59			4,225			—			4,284
Provision for employee long-term benefits	16,854			—			—			16,854
Contributions to pension and postretirement plans	(14,035		)	—			—			(14,035		)
Stock compensation expense	19,393			1,375			—			20,768
Net change in wholesale finance receivables related to sales	—			—			(510,200		)	(510,200		)
Provision for credit losses	—			36,292			—			36,292
Loss on debt extinguishment	—			1,145			—			1,145
Deferred income taxes	939			(6,023		)	—			(5,084		)
Foreign currency adjustments	(3,894		)	—			—			(3,894		)
Other, net	4,712			4,620			—			9,332
Change in current assets and current liabilities:
Accounts receivable	(363,817		)	—			338,174			(25,643		)
Finance receivables—accrued interest and other	—			(993		)	—			(993		)
Inventories	58,741			—			—			58,741
Accounts payable and accrued liabilities	189,117			375,290			(338,174		)	226,233
Derivative instruments	968			—			—			968
Other	4,962			(2,044		)	—			2,918
Total adjustments	(2,653		)	463,375			(510,200		)	(49,478		)
Net cash provided by operating activities	652,873			547,919			(630,200		)	570,592



	Six months ended June 29, 2014
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(71,395		)	(3,128		)	—			(74,523		)
Origination of finance receivables	—			(4,580,910		)	2,676,333			(1,904,577		)
Collections of finance receivables	—			3,684,319			(2,166,133		)	1,518,186
Sales and redemptions of marketable securities	41,010			—			—			41,010
Other	145			—			—			145
Net cash used by investing activities	(30,240		)	(899,719		)	510,200			(419,759		)
Cash flows from financing activities:
Repayments of senior unsecured notes	(303,000		)	—			—			(303,000		)
Repayments of medium-term notes	—			(7,220		)	—			(7,220		)
Intercompany borrowing activity	(100,000		)	100,000			—			—
Proceeds from securitization debt	—			847,126			—			847,126
Repayments of securitization debt	—			(393,655		)	—			(393,655		)
Net increase in credit facilities and unsecured commercial paper	—			(48,134		)	—			(48,134		)
Borrowings of asset-backed commercial paper	—			36,800			—			36,800
Repayments of asset-backed commercial paper	—			(37,317		)	—			(37,317		)
Net change in restricted cash	—			(9,874		)	—			(9,874		)
Dividends paid	(120,631		)	(120,000		)	120,000			(120,631		)
Purchase of common stock for treasury	(223,736		)	—			—			(223,736		)
Excess tax benefits from share-based payments	8,652			—			—			8,652
Issuance of common stock under employee stock option plans	27,907			—			—			27,907
Net cash (used by) provided by financing activities	(710,808		)	367,726			120,000			(223,082		)
Effect of exchange rate changes on cash and cash equivalents	4,968			15			—			4,983
Net (decrease) increase in cash and cash equivalents	$	(83,207	)	$	15,941		$	—		$	(67,266	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	718,912		$	347,700		$	—		$	1,066,612
Net (decrease) increase in cash and cash equivalents	(83,207		)	15,941			—			(67,266		)
Cash and cash equivalents—end of period	$	635,705		$	363,641		$	—		$	999,346



	Six months ended June 30, 2013
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	591,059		$	89,809		$	(185,000	)	$	495,868
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	80,592			2,814			—			83,406
Amortization of deferred loan origination costs	—			40,947			—			40,947
Amortization of financing origination fees	237			4,398			—			4,635
Provision for employee long-term benefits	33,382			—			—			33,382
Contributions to pension and postretirement plans	(189,116		)	—			—			(189,116		)
Stock compensation expense	19,592			1,469			—			21,061
Net change in wholesale finance receivables related to sales	—			—			(293,293		)	(293,293		)
Provision for credit losses	—			24,407			—			24,407
Loss on extinguishment of debt	—			4,947			—			4,947
Foreign currency adjustments	18,529			—			—			18,529
Other, net	(647		)	205			—			(442		)
Change in current assets and current liabilities:
Accounts receivable	(286,024		)	—			251,237			(34,787		)
Finance receivables—accrued interest and other	—			699			—			699
Inventories	69,475			—			—			69,475
Accounts payable and accrued liabilities	63,605			258,353			(251,237		)	70,721
Restructuring reserves	(22,790		)	—			—			(22,790		)
Derivative instruments	(1,529		)	(28		)	—			(1,557		)
Other	65,613			(2,028		)	—			63,585
Total adjustments	(149,081		)	336,183			(293,293		)	(106,191		)
Net cash provided by operating activities	441,978			425,992			(478,293		)	389,677



	Six months ended June 30, 2013
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(64,282		)	(2,307		)	—			(66,589		)
Origination of finance receivables	—			(4,019,925		)	2,366,693			(1,653,232		)
Collections of finance receivables	—			3,496,088			(2,073,400		)	1,422,688
Purchases of marketable securities	(4,998		)	—			—			(4,998		)
Sales and redemptions of marketable securities	6,003			—			—			6,003
Other	6,667			—			—			6,667
Net cash used by investing activities	(56,610		)	(526,144		)	293,293			(289,461		)
Cash flows from financing activities:
Repayments of medium-term notes	—			(27,858		)	—			(27,858		)
Intercompany borrowing activity	100,000			(100,000		)	—			—
Proceeds from securitization debt	—			647,516			—			647,516
Repayments of securitization debt	—			(423,455		)	—			(423,455		)
Borrowings of asset-backed commercial paper	—			47,061			—			47,061
Repayments of asset-backed commercial paper	—			(37,642		)	—			(37,642		)
Net increase in credit facilities and unsecured commercial paper	—			230,761			—			230,761
Net change in restricted cash	—			(23,996		)	—			(23,996		)
Dividends paid	(94,213		)	(185,000		)	185,000			(94,213		)
Purchase of common stock for treasury	(208,699		)	—			—			(208,699		)
Excess tax benefits from share-based payments	16,338			—			—			16,338
Issuance of common stock under employee stock option plans	24,677			—			—			24,677
Net cash (used by) provided by financing activities	(161,897		)	127,387			185,000			150,490
Effect of exchange rate changes on cash and cash equivalents	(16,092		)	(2,062		)	—			(18,154		)
Net increase in cash and cash equivalents	$	207,379		$	25,173		$	—		$	232,552
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	727,716		$	340,422		$	—		$	1,068,138
Net increase in cash and cash equivalents	207,379			25,173			—			232,552
Cash and cash equivalents—end of period	$	935,095		$	365,595		$	—		$	1,300,690