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 25, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,580,109	$	—	$	(2,974	)	$	1,577,135
Financial Services	—		188,712		(678		)	188,034
Total revenue	1,580,109		188,712		(3,652		)	1,765,169
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,001,512		—		—			1,001,512
Financial Services interest expense	—		44,408		—			44,408
Financial Services provision for credit losses	—		26,217		—			26,217
Selling, administrative and engineering expense	256,513		38,448		(3,511		)	291,450
Total costs and expenses	1,258,025		109,073		(3,511		)	1,363,587
Operating income	322,084		79,639		(141		)	401,582
Investment income	577		—		—			577
Interest expense	7,726		—		—			7,726
Income before provision for income taxes	314,935		79,639		(141		)	394,433
Provision for income taxes	106,035		29,531		—			135,566
Net income	$	208,900	$	50,108	$	(141	)	$	258,867

	Six months ended June 25, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	2,910,727	$	—	$	(4,881	)	$	2,905,846
Financial Services	—		362,269		(1,014		)	361,255
Total revenue	2,910,727		362,269		(5,895		)	3,267,101
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,852,738		—		—			1,852,738
Financial Services interest expense	—		87,697		—			87,697
Financial Services provision for credit losses	—		69,806		—			69,806
Selling, administrative and engineering expense	495,509		74,062		(5,771		)	563,800
Total costs and expenses	2,348,247		231,565		(5,771		)	2,574,041
Operating income	562,480		130,704		(124		)	693,060
Investment income	107,456		—		(106,000		)	1,456
Interest expense	15,399		—		—			15,399
Income before provision for income taxes	654,537		130,704		(106,124		)	679,117
Provision for income taxes	185,192		48,689		—			233,881
Net income	$	469,345	$	82,015	$	(106,124	)	$	445,236



	Three months ended June 26, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,673,379	$	—	$	(3,266	)	$	1,670,113
Financial Services	—		191,935		(971		)	190,964
Total revenue	1,673,379		191,935		(4,237		)	1,861,077
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,062,555		—		—			1,062,555
Financial Services interest expense	—		42,895		—			42,895
Financial Services provision for credit losses	—		23,461		—			23,461
Selling, administrative and engineering expense	285,367		38,301		(3,824		)	319,844
Total costs and expenses	1,347,922		104,657		(3,824		)	1,448,755
Operating income	325,457		87,278		(413		)	412,322
Investment income	43,688		—		(43,000		)	688
Interest expense	7,094		—		—			7,094
Income before provision for income taxes	362,051		87,278		(43,413		)	405,916
Provision for income taxes	93,788		31,697		—			125,485
Net income	$	268,263	$	55,581	$	(43,413	)	$	280,431

	Six months ended June 26, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	3,252,018	$	—	$	(5,295	)	$	3,246,723
Financial Services	—		365,456		(1,134		)	364,322
Total revenue	3,252,018		365,456		(6,429		)	3,611,045
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,048,885		—		—			2,048,885
Financial Services interest expense	—		88,814		—			88,814
Financial Services provision for credit losses	—		60,584		—			60,584
Selling, administrative and engineering expense	543,598		74,275		(6,261		)	611,612
Total costs and expenses	2,592,483		223,673		(6,261		)	2,809,895
Operating income	659,535		141,783		(168		)	801,150
Investment income	184,454		—		(183,000		)	1,454
Interest expense	14,262		—		—			14,262
Income before provision for income taxes	829,727		141,783		(183,168		)	788,342
Provision for income taxes	204,361		53,061		—			257,422
Net income	$	625,366	$	88,722	$	(183,168	)	$	530,920



	June 25, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	586,892	$	401,584	$	—		$	988,476
Accounts receivable, net	709,343		—		(378,410		)	330,933
Finance receivables, net	—		2,338,533		—			2,338,533
Inventories	372,012		—		—			372,012
Restricted cash	—		63,225		—			63,225
Other current assets	108,162		43,261		—			151,423
Total current assets	1,776,409		2,846,603		(378,410		)	4,244,602
Finance receivables, net	—		4,994,002		—			4,994,002
Property, plant and equipment, net	905,244		41,082		—			946,326
Goodwill	54,630		—		—			54,630
Deferred income taxes	100,949		71,108		(1,699		)	170,358
Other long-term assets	139,742		22,740		(84,629		)	77,853
	$	2,976,974	$	7,975,535	$	(464,738	)	$	10,487,771
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	298,372	$	407,384	$	(378,410	)	$	327,346
Accrued liabilities	441,102		92,217		93			533,412
Short-term debt	—		928,445		—			928,445
Current portion of long-term debt, net	—		1,565,558		—			1,565,558
Total current liabilities	739,474		2,993,604		(378,317		)	3,354,761
Long-term debt, net	741,633		3,936,717		—			4,678,350
Pension liability	51,797		—		—			51,797
Postretirement healthcare liability	166,023		—		—			166,023
Other long-term liabilities	155,086		32,714		2,873			190,673
Commitments and contingencies (Note 15)
Shareholders’ equity	1,122,961		1,012,500		(89,294		)	2,046,167
	$	2,976,974	$	7,975,535	$	(464,738	)	$	10,487,771



	December 31, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	425,540	$	334,444	$	—		$	759,984
Marketable securities	5,019		500		—			5,519
Accounts receivable, net	450,186		—		(165,080		)	285,106
Finance receivables, net	—		2,076,261		—			2,076,261
Inventories	499,917		—		—			499,917
Restricted cash	—		52,574		—			52,574
Other current assets	127,606		46,934		(49		)	174,491
Total current assets	1,508,268		2,510,713		(165,129		)	3,853,852
Finance receivables, net	—		4,759,197		—			4,759,197
Property, plant and equipment, net	942,634		38,959		—			981,593
Goodwill	53,391		—		—			53,391
Deferred income taxes	103,487		66,152		(1,910		)	167,729
Other long-term assets	132,835		24,769		(83,126		)	74,478
	$	2,740,615	$	7,399,790	$	(250,165	)	$	9,890,240
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	219,353	$	181,045	$	(165,080	)	$	235,318
Accrued liabilities	395,907		90,910		(165		)	486,652
Short-term debt	—		1,055,708		—			1,055,708
Current portion of long-term debt, net	—		1,084,884		—			1,084,884
Total current liabilities	615,260		2,412,547		(165,245		)	2,862,562
Long-term debt, net	741,306		3,925,669		—			4,666,975
Pension liability	84,442		—		—			84,442
Postretirement healthcare liability	173,267		—		—			173,267
Other long-term liabilities	150,391		29,697		2,748			182,836
Commitments and contingencies (Note 15)
Shareholders’ equity	975,949		1,031,877		(87,668		)	1,920,158
	$	2,740,615	$	7,399,790	$	(250,165	)	$	9,890,240



	June 26, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	445,662	$	419,008	$	—		$	864,670
Marketable securities	5,070		—		—			5,070
Accounts receivable, net	816,439		—		(504,483		)	311,956
Finance receivables, net	—		2,457,974		—			2,457,974
Inventories	371,196		—		—			371,196
Restricted cash	—		78,078		—			78,078
Deferred income taxes	60,497		55,717		—			116,214
Other current assets	124,923		38,203		(9,260		)	153,866
Total current assets	1,823,787		3,048,980		(513,743		)	4,359,024
Finance receivables, net	—		4,824,071		—			4,824,071
Property, plant and equipment, net	916,388		34,921		—			951,309
Goodwill	54,542		—		—			54,542
Deferred income taxes	76,194		8,555		(1,702		)	83,047
Other long-term assets	133,540		24,744		(81,837		)	76,447
	$	3,004,451	$	7,941,271	$	(597,282	)	$	10,348,440
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	239,380	$	538,799	$	(504,483	)	$	273,696
Accrued liabilities	397,645		97,150		(8,984		)	485,811
Short-term debt	—		1,020,487		—			1,020,487
Current portion of long-term debt, net	—		732,773		—			732,773
Total current liabilities	637,025		2,389,209		(513,467		)	2,512,767
Long-term debt, net	740,982		4,567,081		—			5,308,063
Pension liability	129,465		—		—			129,465
Postretirement healthcare liability	188,846		—		—			188,846
Other long-term liabilities	157,835		27,621		2,836			188,292
Commitments and contingencies (Note 15)
Shareholders’ equity	1,150,298		957,360		(86,651		)	2,021,007
	$	3,004,451	$	7,941,271	$	(597,282	)	$	10,348,440



	Six months ended June 25, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	469,345		$	82,015		$	(106,124	)	$	445,236
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	104,157			3,421			—			107,578
Amortization of deferred loan origination costs	—			40,771			—			40,771
Amortization of financing origination fees	327			3,752			—			4,079
Provision for long-term employee benefits	14,950			—			—			14,950
Employee benefit plan contributions and payments	(37,307		)	—			—			(37,307		)
Stock compensation expense	15,995			1,502			—			17,497
Net change in wholesale finance receivables related to sales	—			—			(271,927		)	(271,927		)
Provision for credit losses	—			69,806			—			69,806
Deferred income taxes	4,975			(4,586		)	(211		)	178
Other, net	(6,422		)	2,134			125			(4,163		)
Changes in current assets and liabilities:
Accounts receivable, net	(241,569		)	—			213,330			(28,239		)
Finance receivables - accrued interest and other	—			2,067			—			2,067
Inventories	138,942			—			—			138,942
Accounts payable and accrued liabilities	112,916			228,247			(208,043		)	133,120
Derivative instruments	3,106			8			—			3,114
Other	(8,683		)	98			(49		)	(8,634		)
Total adjustments	101,387			347,220			(266,775		)	181,832
Net cash provided by operating activities	570,732			429,235			(372,899		)	627,068



	Six months ended June 25, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(64,273		)	(5,543		)	—			(69,816		)
Origination of finance receivables	—			(4,205,868		)	2,228,029			(1,977,839		)
Collections on finance receivables	—			3,608,929			(1,961,130		)	1,647,799
Sales and redemptions of marketable securities	6,916			—			—			6,916
Other	115			—			—			115
Net cash used by investing activities	(57,242		)	(602,482		)	266,899			(392,825		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			893,668			—			893,668
Repayments of medium-term notes	—			(400,000		)	—			(400,000		)
Repayments of securitization debt	—			(275,659		)	—			(275,659		)
Borrowings of asset-backed commercial paper	—			341,625			—			341,625
Repayments of asset-backed commercial paper	—			(77,732		)	—			(77,732		)
Net decrease in credit facilities and unsecured commercial paper	—			(128,787		)	—			(128,787		)
Net change in restricted cash	—			(7,248		)	—			(7,248		)
Dividends paid	(128,452		)	(106,000		)	106,000			(128,452		)
Purchase of common stock for treasury	(243,055		)	—			—			(243,055		)
Issuance of common stock under employee stock option plans	7,432			—			—			7,432
Net cash (used by) provided by financing activities	(364,075		)	239,867			106,000			(18,208		)
Effect of exchange rate changes on cash and cash equivalents	11,937			520			—			12,457
Net increase in cash and cash equivalents	$	161,352		$	67,140		$	—		$	228,492
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	425,540		$	334,444		$	—		$	759,984
Net increase in cash and cash equivalents	161,352			67,140			—			228,492
Cash and cash equivalents—end of period	$	586,892		$	401,584		$	—		$	988,476



	Six months ended June 26, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	625,366		$	88,722		$	(183,168	)	$	530,920
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	97,025			3,931			—			100,956
Amortization of deferred loan origination costs	—			43,555			—			43,555
Amortization of financing origination fees	330			4,816			—			5,146
Provision for long-term employee benefits	19,005			—			—			19,005
Employee benefit plan contributions and payments	(35,189		)	—			—			(35,189		)
Stock compensation expense	14,562			1,235			—			15,797
Net change in wholesale finance receivables related to sales	—			—			(442,254		)	(442,254		)
Provision for credit losses	—			60,584			—			60,584
Gain on off-balance sheet asset-backed securitization	—			(9,269		)	—			(9,269		)
Deferred income taxes	798			(3,906		)	(440		)	(3,548		)
Other, net	(20,505		)	(171		)	168			(20,508		)
Changes in current assets and liabilities:
Accounts receivable, net	(416,198		)	—			361,089			(55,109		)
Finance receivables - accrued interest and other	—			(125		)	—			(125		)
Inventories	225,586			—			—			225,586
Accounts payable and accrued liabilities	23,420			385,992			(355,622		)	53,790
Derivative instruments	(1,474		)	—			—			(1,474		)
Other	(33,237		)	1,664			—			(31,573		)
Total adjustments	(125,877		)	488,306			(437,059		)	(74,630		)
Net cash provided by operating activities	499,489			577,028			(620,227		)	456,290



	Six months ended June 26, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(104,125		)	(3,406		)	—			(107,531		)
Origination of finance receivables	—			(4,507,717		)	2,516,333			(1,991,384		)
Collections on finance receivables	—			3,709,319			(2,079,106		)	1,630,213
Proceeds from finance receivables sold	—			312,571			—			312,571
Sales and redemptions of marketable securities	40,000			—			—			40,000
Other	166			—			—			166
Net cash used by investing activities	(63,959		)	(489,233		)	437,227			(115,965		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,193,396			—			1,193,396
Repayments of medium-term notes	—			(450,000		)	—			(450,000		)
Repayments of securitization debt	—			(385,837		)	—			(385,837		)
Borrowings of asset-backed commercial paper	—			33,428			—			33,428
Repayments of asset-backed commercial paper	—			(34,989		)	—			(34,989		)
Net decrease in credit facilities and unsecured commercial paper	—			(181,259		)	—			(181,259		)
Net change in restricted cash	—			17,992			—			17,992
Dividends paid	(127,800		)	(183,000		)	183,000			(127,800		)
Purchase of common stock for treasury	(269,411		)	—			—			(269,411		)
Excess tax benefits from share-based payments	331			—			—			331
Issuance of common stock under employee stock option plans	2,367			—			—			2,367
Net cash (used by) provided by financing activities	(394,513		)	9,731			183,000			(201,782		)
Effect of exchange rate changes on cash and cash equivalents	4,202			(284		)	—			3,918
Net increase in cash and cash equivalents	$	45,219		$	97,242		$	—		$	142,461
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	400,443		$	321,766		$	—		$	722,209
Net increase in cash and cash equivalents	45,219			97,242			—			142,461
Cash and cash equivalents—end of period	$	445,662		$	419,008		$	—		$	864,670