Supplemental Consolidating Data (Tables)

6 Months Ended

Jun. 29, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Operations

	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

Balance Sheet

	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

Cash Flows

	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