XML 46 R36.htm IDEA: XBRL DOCUMENT v3.7.0.1
Supplemental Consolidating Data (Tables)
6 Months Ended
Jun. 25, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Operations
 
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

Balance Sheet
 
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

Cash Flows
 
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