Supplemental Consolidating Data (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Three months ended September 30, 2018
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,126,977		$	—	$	(3,032	)	$	1,123,945
Financial Services	—			192,188		(464		)	191,724
Total revenue	1,126,977			192,188		(3,496		)	1,315,669
Costs and expenses:
Motorcycles and Related Products cost of goods sold	776,530			—		—			776,530
Financial Services interest expense	—			44,696		—			44,696
Financial Services provision for credit losses	—			23,530		—			23,530
Selling, administrative and engineering expense	267,316			42,776		(3,427		)	306,665
Restructuring expense	14,832			—		—			14,832
Total costs and expenses	1,058,678			111,002		(3,427		)	1,166,253
Operating income	68,299			81,186		(69		)	149,416
Other income (expense), net	644			—		—			644
Investment loss	(1,106		)	—		—			(1,106		)
Interest expense	7,762			—		—			7,762
Income before provision for income taxes	60,075			81,186		(69		)	141,192
Provision for income taxes	10,613			16,724		—			27,337
Net income	$	49,462		$	64,462	$	(69	)	$	113,855
	Nine months ended September 30, 2018
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	4,021,268		$	—	$	(8,255	)	$	4,013,013
Financial Services	—			559,436		(1,436		)	558,000
Total revenue	4,021,268			559,436		(9,691		)	4,571,013
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,659,740			—		—			2,659,740
Financial Services interest expense	—			145,089		—			145,089
Financial Services provision for credit losses	—			72,462		—			72,462
Selling, administrative and engineering expense	798,544			120,830		(9,476		)	909,898
Restructuring expense	74,044			—		—			74,044
Total costs and expenses	3,532,328			338,381		(9,476		)	3,861,233
Operating income	488,940			221,055		(215		)	709,780
Other income (expense), net	1,509			—		—			1,509
Investment income	112,630			—		(110,000		)	2,630
Interest expense	23,180			—		—			23,180
Income before provision for income taxes	579,899			221,055		(110,215		)	690,739
Provision for income taxes	110,529			49,254		—			159,783
Net income	$	469,370		$	171,801	$	(110,215	)	$	530,956

	Three months ended September 24, 2017
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	964,942		$	—	$	(2,806	)	$	962,136
Financial Services	—			189,932		(873		)	189,059
Total revenue	964,942			189,932		(3,679		)	1,151,195
Costs and expenses:
Motorcycles and Related Products cost of goods sold	687,823			—		—			687,823
Financial Services interest expense	—			46,169		—			46,169
Financial Services provision for credit losses	—			29,253		—			29,253
Selling, administrative and engineering expense	257,357			39,383		(3,202		)	293,538
Total costs and expenses	945,180			114,805		(3,202		)	1,056,783
Operating income	19,762			75,127		(477		)	94,412
Other income (expense), net	2,296			—		—			2,296
Investment income	91,083			—		(90,000		)	1,083
Interest expense	7,896			—		—			7,896
Income before provision for income taxes	105,245			75,127		(90,477		)	89,895
Provision for income taxes	(6,134		)	27,820		—			21,686
Net income	$	111,379		$	47,307	$	(90,477	)	$	68,209
	Nine months ended September 24, 2017
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	3,875,669		$	—	$	(7,687	)	$	3,867,982
Financial Services	—			552,201		(1,887		)	550,314
Total revenue	3,875,669			552,201		(9,574		)	4,418,296
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,545,884			—		—			2,545,884
Financial Services interest expense	—			133,866		—			133,866
Financial Services provision for credit losses	—			99,059		—			99,059
Selling, administrative and engineering expense	752,134			113,445		(8,973		)	856,606
Total costs and expenses	3,298,018			346,370		(8,973		)	3,635,415
Operating income	577,651			205,831		(601		)	782,881
Other income (expense), net	6,887			—		—			6,887
Investment income	198,539			—		(196,000		)	2,539
Interest expense	23,295			—		—			23,295
Income before provision for income taxes	759,782			205,831		(196,601		)	769,012
Provision for income taxes	179,058			76,509		—			255,567
Net income	$	580,724		$	129,322	$	(196,601	)	$	513,445

Balance Sheet

	September 30, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	576,670	$	350,322	$	—		$	926,992
Marketable securities	10,011		—		—			10,011
Accounts receivable, net	640,416		—		(308,107		)	332,309
Finance receivables, net	—		2,116,386		—			2,116,386
Inventories	516,247		—		—			516,247
Restricted cash	—		36,471		—			36,471
Other current assets	106,259		44,783		—			151,042
Total current assets	1,849,603		2,547,962		(308,107		)	4,089,458
Finance receivables, net	—		5,187,176		—			5,187,176
Property, plant and equipment, net	833,279		51,681		—			884,960
Prepaid pension costs	140,763		—		—			140,763
Goodwill	55,318		—		—			55,318
Deferred income taxes	25,780		39,203		(1,424		)	63,559
Other long-term assets	151,815		19,799		(89,048		)	82,566
	$	3,056,558	$	7,845,821	$	(398,579	)	$	10,503,800
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	291,395	$	327,679	$	(308,107	)	$	310,967
Accrued liabilities	483,964		80,427		441			564,832
Short-term debt	—		1,373,859		—			1,373,859
Current portion of long-term debt, net	—		1,526,156		—			1,526,156
Total current liabilities	775,359		3,308,121		(307,666		)	3,775,814
Long-term debt, net	742,458		3,454,059		—			4,196,517
Pension liability	54,138		—		—			54,138
Postretirement healthcare liability	112,798		—		—			112,798
Other long-term liabilities	170,464		38,003		3,094			211,561
Commitments and contingencies (Note 15)
Shareholders’ equity	1,201,341		1,045,638		(94,007		)	2,152,972
	$	3,056,558	$	7,845,821	$	(398,579	)	$	10,503,800

	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

	September 24, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	311,029	$	372,105	$	—		$	683,134
Accounts receivable, net	690,152		—		(347,028		)	343,124
Finance receivables, net	—		2,058,168		—			2,058,168
Inventories	469,091		—		—			469,091
Restricted cash	—		52,209		—			52,209
Other current assets	146,012		46,956		(10,552		)	182,416
Total current assets	1,616,284		2,529,438		(357,580		)	3,788,142
Finance receivables, net	—		5,042,857		—			5,042,857
Property, plant and equipment, net	892,260		42,355		—			934,615
Goodwill	55,898		—		—			55,898
Deferred income taxes	109,116		73,424		(1,965		)	180,575
Other long-term assets	149,257		22,499		(85,484		)	86,272
	$	2,822,815	$	7,710,573	$	(445,029	)	$	10,088,359
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	257,205	$	366,940	$	(347,028	)	$	277,117
Accrued liabilities	479,753		104,814		(10,609		)	573,958
Short-term debt	—		834,875		—			834,875
Current portion of long-term debt, net	—		1,530,401		—			1,530,401
Total current liabilities	736,958		2,837,030		(357,637		)	3,216,351
Long-term debt, net	741,797		3,865,994		—			4,607,791
Pension liability	52,471		—		—			52,471
Postretirement healthcare liability	162,925		—		—			162,925
Other long-term liabilities	154,696		34,071		3,234			192,001
Commitments and contingencies (Note 15)
Shareholders’ equity	973,968		973,478		(90,626		)	1,856,820
	$	2,822,815	$	7,710,573	$	(445,029	)	$	10,088,359

Cash Flows

	Nine months ended September 30, 2018
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	469,370		$	171,801	$	(110,215	)	$	530,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	193,289			3,172		—			196,461
Amortization of deferred loan origination costs	—			61,213		—			61,213
Amortization of financing origination fees	497			5,710		—			6,207
Provision for long-term employee benefits	28,162			—		—			28,162
Employee benefit plan contributions and payments	(11,035		)	—		—			(11,035		)
Stock compensation expense	26,122			3,000		—			29,122
Net change in wholesale finance receivables related to sales	—			—		(18,400		)	(18,400		)
Provision for credit losses	—			72,462		—			72,462
Deferred income taxes	(2,991		)	4,343		105			1,457
Other, net	28,426			699		215			29,340
Changes in current assets and liabilities:
Accounts receivable, net	(169,168		)	—		154,384			(14,784		)
Finance receivables - accrued interest and other	—			1,374		—			1,374
Inventories	8,270			—		—			8,270
Accounts payable and accrued liabilities	170,001			152,028		(138,423		)	183,606
Derivative instruments	1,124			103		—			1,227
Other	19,411			3,173		(5,667		)	16,917
Total adjustments	292,108			307,277		(7,786		)	591,599
Net cash provided by operating activities	761,478			479,078		(118,001		)	1,122,555

	Nine months ended September 30, 2018
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(110,493		)	(9,352		)	—			(119,845		)
Origination of finance receivables	—			(5,845,799		)	2,806,639			(3,039,160		)
Collections on finance receivables	—			5,363,333			(2,798,638		)	2,564,695
Other	(21,753		)	—			—			(21,753		)
Net cash used by investing activities	(132,246		)	(491,818		)	8,001			(616,063		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,144,018			—			1,144,018
Repayments of medium-term notes	—			(877,488		)	—			(877,488		)
Repayments of securitization debt	—			(224,507		)	—			(224,507		)
Borrowings of asset-backed commercial paper	—			120,903			—			120,903
Repayments of asset-backed commercial paper	—			(156,258		)	—			(156,258		)
Net increase in credit facilities and unsecured commercial paper	—			102,154			—			102,154
Dividends paid	(186,105		)	(110,000		)	110,000			(186,105		)
Purchase of common stock for treasury	(195,998		)	—			—			(195,998		)
Issuance of common stock under employee stock option plans	3,157			—			—			3,157
Net cash used by financing activities	(378,946		)	(1,178		)	110,000			(270,124		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(11,802		)	(765		)	—			(12,567		)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	238,484		$	(14,683	)	$	—		$	223,801
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	338,186		$	408,024		$	—		$	746,210
Net increase (decrease) in cash, cash equivalents and restricted cash	238,484			(14,683		)	—			223,801
Cash, cash equivalents and restricted cash—end of period	$	576,670		$	393,341		$	—		$	970,011

	Nine months ended September 24, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	580,724		$	129,322		$	(196,601	)	$	513,445
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	158,938			5,036			—			163,974
Amortization of deferred loan origination costs	—			62,052			—			62,052
Amortization of financing origination fees	491			5,621			—			6,112
Provision for long-term employee benefits	22,427			—			—			22,427
Employee benefit plan contributions and payments	(43,060		)	—			—			(43,060		)
Stock compensation expense	23,223			2,358			—			25,581
Net change in wholesale finance receivables related to sales	—			—			36,678			36,678
Provision for credit losses	—			99,059			—			99,059
Deferred income taxes	3,450			(8,656		)	55			(5,151		)
Other, net	(14,671		)	2,946			603			(11,122		)
Changes in current assets and liabilities:
Accounts receivable, net	(211,115		)	—			181,948			(29,167		)
Finance receivables - accrued interest and other	—			317			—			317
Inventories	50,016			—			—			50,016
Accounts payable and accrued liabilities	75,957			199,855			(187,054		)	88,758
Derivative instruments	2,708			44			—			2,752
Other	(45,830		)	1,731			10,503			(33,596		)
Total adjustments	22,534			370,363			42,733			435,630
Net cash provided by operating activities	603,258			499,685			(153,868		)	949,075

	Nine months ended September 24, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(105,591		)	(8,431		)	—			(114,022		)
Origination of finance receivables	—			(5,791,241		)	2,863,869			(2,927,372		)
Collections on finance receivables	—			5,386,123			(2,906,001		)	2,480,122
Other	7,272			—			—			7,272
Net cash used by investing activities	(98,319		)	(413,549		)	(42,132		)	(554,000		)
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	—			(367,298		)	—			(367,298		)
Borrowings of asset-backed commercial paper	—			371,253			—			371,253
Repayments of asset-backed commercial paper	—			(129,690		)	—			(129,690		)
Net decrease in credit facilities and unsecured commercial paper	—			(225,038		)	—			(225,038		)
Dividends paid	(190,121		)	(196,000		)	196,000			(190,121		)
Purchase of common stock for treasury	(465,167		)	—			—			(465,167		)
Issuance of common stock under employee stock option plans	7,884			—			—			7,884
Net cash used by financing activities	(647,404		)	(53,105		)	196,000			(504,509		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	27,954			863			—			28,817
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(114,511	)	$	33,894		$	—		$	(80,617	)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	425,540		$	401,591		$	—		$	827,131
Net (decrease) increase in cash, cash equivalents and restricted cash	(114,511		)	33,894			—			(80,617		)
Cash, cash equivalents and restricted cash—end of period	$	311,029		$	435,485		$	—		$	746,514