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