Supplemental Consolidating Data (Tables)

3 Months Ended

Apr. 01, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Three months ended April 1, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,366,246	$	—	$	(2,299	)	$	1,363,947
Financial Services	—		178,460		(286		)	178,174
Total revenue	1,366,246		178,460		(2,585		)	1,542,121
Costs and expenses:
Motorcycles and Related Products cost of goods sold	890,174		—		—			890,174
Financial Services interest expense	—		48,450		—			48,450
Financial Services provision for credit losses	—		30,052		—			30,052
Selling, administrative and engineering expense	254,401		38,391		(2,606		)	290,186
Restructuring expense	46,842		—		—			46,842
Total costs and expenses	1,191,417		116,893		(2,606		)	1,305,704
Operating income	174,829		61,567		21			236,417
Other income (expense), net	220		—		—			220
Investment income	111,203		—		(110,000		)	1,203
Interest expense	7,690		—		—			7,690
Income before provision for income taxes	278,562		61,567		(109,979		)	230,150
Provision for income taxes	40,233		15,154		—			55,387
Net income	$	238,329	$	46,413	$	(109,979	)	$	174,763

	Three months ended March 26, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,330,618	$	—	$	(1,907	)	$	1,328,711
Financial Services	—		173,557		(336		)	173,221
Total revenue	1,330,618		173,557		(2,243		)	1,501,932
Costs and expenses:
Motorcycles and Related Products cost of goods sold	853,888		—		—			853,888
Financial Services interest expense	—		43,289		—			43,289
Financial Services provision for credit losses	—		43,589		—			43,589
Selling, administrative and engineering expense	238,630		35,614		(2,260		)	271,984
Total costs and expenses	1,092,518		122,492		(2,260		)	1,212,750
Operating income	238,100		51,065		17			289,182
Other income (expense), net	2,296		—		—			2,296
Investment income	106,879		—		(106,000		)	879
Interest expense	7,673		—		—			7,673
Income before provision for income taxes	339,602		51,065		(105,983		)	284,684
Provision for income taxes	79,157		19,158		—			98,315
Net income	$	260,445	$	31,907	$	(105,983	)	$	186,369

Balance Sheet

	April 1, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	403,009	$	350,508	$	—		$	753,517
Accounts receivable, net	686,265		—		(331,158		)	355,107
Finance receivables, net	—		2,341,918		—			2,341,918
Inventories	564,571		—		—			564,571
Restricted cash	—		54,569		—			54,569
Other current assets	108,613		44,724		(2,865		)	150,472
Total current assets	1,762,458		2,791,719		(334,023		)	4,220,154
Finance receivables, net	—		4,784,524		—			4,784,524
Property, plant and equipment, net	887,522		47,123		—			934,645
Prepaid pension costs	122,230		—		—			122,230
Goodwill	56,524		—		—			56,524
Deferred income taxes	36,140		42,543		(1,059		)	77,624
Other long-term assets	145,344		23,514		(86,938		)	81,920
	$	3,010,218	$	7,689,423	$	(422,020	)	$	10,277,621
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	297,162	$	353,036	$	(331,158	)	$	319,040
Accrued liabilities	462,279		106,149		(2,020		)	566,408
Short-term debt	—		1,036,976		—			1,036,976
Current portion of long-term debt, net	—		1,872,679		—			1,872,679
Total current liabilities	759,441		3,368,840		(333,178		)	3,795,103
Long-term debt, net	742,126		3,366,385		—			4,108,511
Pension liability	54,921		—		—			54,921
Postretirement healthcare liability	113,031		—		—			113,031
Other long-term liabilities	171,389		35,899		2,818			210,106
Commitments and contingencies (Note 15)
Shareholders’ equity	1,169,310		918,299		(91,660		)	1,995,949
	$	3,010,218	$	7,689,423	$	(422,020	)	$	10,277,621

	December 31, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	338,186	$	349,335	$	—		$	687,521
Accounts receivable, net	483,709		—		(153,723		)	329,986
Finance receivables, net	—		2,105,662		—			2,105,662
Inventories	538,202		—		—			538,202
Restricted cash	—		47,518		—			47,518
Other current assets	132,999		48,521		(5,667		)	175,853
Total current assets	1,493,096		2,551,036		(159,390		)	3,884,742
Finance receivables, net	—		4,859,424		—			4,859,424
Property, plant and equipment, net	922,280		45,501		—			967,781
Prepaid pension costs	19,816		—		—			19,816
Goodwill	55,947		—		—			55,947
Deferred income taxes	66,877		43,515		(1,319		)	109,073
Other long-term assets	138,344		23,593		(86,048		)	75,889
	$	2,696,360	$	7,523,069	$	(246,757	)	$	9,972,672
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	214,263	$	167,057	$	(153,723	)	$	227,597
Accrued liabilities	444,028		90,942		(5,148		)	529,822
Short-term debt	—		1,273,482		—			1,273,482
Current portion of long-term debt, net	—		1,127,269		—			1,127,269
Total current liabilities	658,291		2,658,750		(158,871		)	3,158,170
Long-term debt, net	741,961		3,845,297		—			4,587,258
Pension liability	54,606		—		—			54,606
Postretirement healthcare liability	118,753		—		—			118,753
Other long-term liabilities	171,200		35,503		2,905			209,608
Commitments and contingencies (Note 15)
Shareholders’ equity	951,549		983,519		(90,791		)	1,844,277
	$	2,696,360	$	7,523,069	$	(246,757	)	$	9,972,672

	March 26, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	479,439	$	360,261	$	—		$	839,700
Marketable securities	5,004		—		—			5,004
Accounts receivable, net	740,231		—		(404,653		)	335,578
Finance receivables, net	—		2,354,095		—			2,354,095
Inventories	485,476		—		—			485,476
Restricted cash	—		75,705		—			75,705
Other current assets	102,298		40,064		—			142,362
Total current assets	1,812,448		2,830,125		(404,653		)	4,237,920
Finance receivables, net	—		4,792,027		—			4,792,027
Property, plant and equipment, net	913,462		39,582		—			953,044
Goodwill	53,967		—		—			53,967
Deferred income taxes	98,291		68,306		(1,401		)	165,196
Other long-term assets	137,712		25,790		(83,801		)	79,701
	$	3,015,880	$	7,755,830	$	(489,855	)	$	10,281,855
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	333,227	$	430,110	$	(404,653	)	$	358,684
Accrued liabilities	442,181		105,060		396			547,637
Short-term debt	—		953,357		—			953,357
Current portion of long-term debt, net	—		697,061		—			697,061
Total current liabilities	775,408		2,185,588		(404,257		)	2,556,739
Long-term debt, net	741,469		4,579,328		—			5,320,797
Pension liability	52,559		—		—			52,559
Postretirement healthcare liability	171,143		—		—			171,143
Other long-term liabilities	152,974		31,506		2,728			187,208
Commitments and contingencies (Note 15)
Shareholders’ equity	1,122,327		959,408		(88,326		)	1,993,409
	$	3,015,880	$	7,755,830	$	(489,855	)	$	10,281,855

Cash Flows

	Three months ended April 1, 2018
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	238,329		$	46,413	$	(109,979	)	$	174,763
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	61,405			1,068		—			62,473
Amortization of deferred loan origination costs	—			20,116		—			20,116
Amortization of financing origination fees	165			1,863		—			2,028
Provision for long-term employee benefits	9,747			—		—			9,747
Employee benefit plan contributions and payments	(5,486		)	—		—			(5,486		)
Stock compensation expense	7,072			890		—			7,962
Net change in wholesale finance receivables related to sales	—			—		(239,902		)	(239,902		)
Provision for credit losses	—			30,052		—			30,052
Deferred income taxes	2,469			979		(260		)	3,188
Other, net	(2,081		)	200		(21		)	(1,902		)
Changes in current assets and liabilities:
Accounts receivable, net	(195,123		)	—		177,435			(17,688		)
Finance receivables - accrued interest and other	—			4,758		—			4,758
Inventories	(21,542		)	—		—			(21,542		)
Accounts payable and accrued liabilities	121,833			201,056		(173,966		)	148,923
Derivative instruments	666			36		—			702
Other	9,935			6,269		(2,802		)	13,402
Total adjustments	(10,940		)	267,287		(239,516		)	16,831
Net cash provided by operating activities	227,389			313,700		(349,495		)	191,594

	Three months ended April 1, 2018
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(25,746		)	(2,690		)	—			(28,436		)
Origination of finance receivables	—			(1,786,309		)	988,242			(798,067		)
Collections on finance receivables	—			1,558,547			(748,747		)	809,800
Other	(4,948		)	—			—			(4,948		)
Net cash used by investing activities	(30,694		)	(230,452		)	239,495			(21,651		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			347,553			—			347,553
Repayments of securitization debt	—			(67,955		)	—			(67,955		)
Borrowings of asset-backed commercial paper	—			35,504			—			35,504
Repayments of asset-backed commercial paper	—			(45,907		)	—			(45,907		)
Net decrease in credit facilities and unsecured commercial paper	—			(234,145		)	—			(234,145		)
Dividends paid	(62,731		)	(110,000		)	110,000			(62,731		)
Purchase of common stock for treasury	(72,968		)	—			—			(72,968		)
Issuance of common stock under employee stock option plans	1,719			—			—			1,719
Net cash used by financing activities	(133,980		)	(74,950		)	110,000			(98,930		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	2,108			(74		)	—			2,034
Net increase in cash, cash equivalents and restricted cash	$	64,823		$	8,224		$	—		$	73,047
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	338,186		$	408,024		$	—		$	746,210
Net increase in cash, cash equivalents and restricted cash	64,823			8,224			—			73,047
Cash, cash equivalents and restricted cash—end of period	$	403,009		$	416,248		$	—		$	819,257

	Three months ended March 26, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	260,445		$	31,907		$	(105,983	)	$	186,369
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	53,241			1,659			—			54,900
Amortization of deferred loan origination costs	—			20,078			—			20,078
Amortization of financing origination fees	163			1,913			—			2,076
Provision for long-term employee benefits	7,475			—			—			7,475
Employee benefit plan contributions and payments	(29,957		)	—			—			(29,957		)
Stock compensation expense	6,317			675			—			6,992
Net change in wholesale finance receivables related to sales	—			—			(317,087		)	(317,087		)
Provision for credit losses	—			43,589			—			43,589
Deferred income taxes	6,728			(2,230		)	(509		)	3,989
Other, net	(6,728		)	1,411			(17		)	(5,334		)
Changes in current assets and liabilities:
Accounts receivable, net	(278,803		)	—			239,573			(39,230		)
Finance receivables - accrued interest and other	—			5,142			—			5,142
Inventories	23,476			—			—			23,476
Accounts payable and accrued liabilities	154,372			263,011			(234,455		)	182,928
Derivative instruments	3,120			—			—			3,120
Other	5,537			5,925			(49		)	11,413
Total adjustments	(55,059		)	341,173			(312,544		)	(26,430		)
Net cash provided by operating activities	205,386			373,080			(418,527		)	159,939
Cash flows from investing activities:
Capital expenditures	(21,686		)	(2,281		)	—			(23,967		)
Origination of finance receivables	—			(1,932,599		)	1,087,907			(844,692		)
Collections on finance receivables	—			1,556,534			(775,380		)	781,154
Other	52			—			—			52
Net cash used by investing activities	(21,634		)	(378,346		)	312,527			(87,453		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			497,406			—			497,406
Repayments of medium-term notes	—			(400,000		)	—			(400,000		)
Repayments of securitization debt	—			(111,359		)	—			(111,359		)
Borrowings of asset-backed commercial paper	—			305,209			—			305,209
Repayments of asset-backed commercial paper	—			(29,383		)	—			(29,383		)
Net decrease in credit facilities and unsecured commercial paper	—			(101,702		)	—			(101,702		)
Dividends paid	(64,611		)	(106,000		)	106,000			(64,611		)
Purchase of common stock for treasury	(79,753		)	—			—			(79,753		)
Issuance of common stock under employee stock option plans	7,336			—			—			7,336
Net cash (used) provided by financing activities	(137,028		)	54,171			106,000			23,143
Effect of exchange rate changes on cash, cash equivalents and restricted cash	7,175			44			—			7,219
Net increase in cash, cash equivalents and restricted cash	$	53,899		$	48,949		$	—		$	102,848
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	425,540		$	401,591		$	—		$	827,131
Net increase in cash, cash equivalents and restricted cash	53,899			48,949			—			102,848
Cash, cash equivalents and restricted cash—end of period	$	479,439		$	450,540		$	—		$	929,979