Supplemental Consolidating Data (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Year Ended December 31, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments			Consolidated
Revenue:
Motorcycles and Related Products	$	4,593,585	$	—	$	(20,907	)	$	4,572,678
Financial Services	—		779,163		9,948			789,111
	4,593,585		779,163		(10,959		)	5,361,789
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,229,798		—		—			3,229,798
Financial Services interest expense	—		210,438		—			210,438
Financial Services provision for credit losses	—		134,536		—			134,536
Selling, administrative and engineering expense	1,034,921		175,258		(11,123		)	1,199,056
Restructuring expense	32,353		—		—			32,353
	4,297,072		520,232		(11,123		)	4,806,181
Operating income	296,513		258,931		164			555,608
Other income (expense), net	16,514		—		—			16,514
Investment income	196,371		—		(180,000		)	16,371
Interest expense	31,078		—		—			31,078
Income before provision for income taxes	478,320		258,931		(179,836		)	557,415
Provision for income taxes	75,278		58,502		—			133,780
Net income	$	403,042	$	200,429	$	(179,836	)	$	423,635

	Year Ended December 31, 2018
	HDMC Entities		HDFS Entities		Consolidating Adjustments			Consolidated
Revenue:
Motorcycles and Related Products	$	4,981,445	$	—	$	(12,799	)	$	4,968,646
Financial Services	—		747,432		797			748,229
	4,981,445		747,432		(12,002		)	5,716,875
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,352,438		—		(642		)	3,351,796
Financial Services interest expense	—		193,187		—			193,187
Financial Services provision for credit losses	—		106,870		—			106,870
Selling, administrative and engineering expense	1,104,919		164,623		(11,444		)	1,258,098
Restructuring expense	93,401		—		—			93,401
	4,550,758		464,680		(12,086		)	5,003,352
Operating income	430,687		282,752		84			713,523
Other income (expense), net	3,039		—		—			3,039
Investment income	235,951		—		(235,000		)	951
Interest expense	30,884		—		—			30,884
Income before provision for income taxes	638,793		282,752		(234,916		)	686,629
Provision for income taxes	85,153		70,025		—			155,178
Net income	$	553,640	$	212,727	$	(234,916	)	$	531,451

	Year Ended December 31, 2017
	HDMC Entities		HDFS Entities		Consolidating Adjustments			Consolidated
Revenue:
Motorcycles and Related Products	$	4,925,003	$	—	$	(9,976	)	$	4,915,027
Financial Services	—		734,008		(1,811		)	732,197
	4,925,003		734,008		(11,787		)	5,647,224
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,272,330		—		—			3,272,330
Financial Services interest expense	—		180,193		—			180,193
Financial Services provision for credit losses	—		132,444		—			132,444
Selling, administrative and engineering expense	1,037,529		154,232		(11,585		)	1,180,176
	4,309,859		466,869		(11,585		)	4,765,143
Operating income	615,144		267,139		(202		)	882,081
Other income (expense), net	9,182		—		—			9,182
Investment income	199,580		—		(196,000		)	3,580
Interest expense	31,004		—		—			31,004
Income before provision for income taxes	792,902		267,139		(196,202		)	863,839
Provision for income taxes	214,175		127,905		—			342,080
Net income	$	578,727	$	139,234	$	(196,202	)	$	521,759

Balance Sheet

	December 31, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	470,649	$	363,219	$	—		$	833,868
Marketable securities	—		—		—			—
Accounts receivable, net	369,717		—		(110,383		)	259,334
Finance receivables, net	—		2,272,522		—			2,272,522
Inventories, net	603,571		—		—			603,571
Restricted cash	—		64,554		—			64,554
Other current assets	110,145		59,665		(836		)	168,974
	1,554,082		2,759,960		(111,219		)	4,202,823
Finance receivables, net	—		5,101,844		—			5,101,844
Property, plant and equipment, net	794,131		53,251		—			847,382
Prepaid pension costs	56,014		—		—			56,014
Goodwill	64,160		—		—			64,160
Deferred income taxes	62,768		39,882		(1,446		)	101,204
Lease assets	55,722		5,896		—			61,618
Other long-term assets	166,972		19,211		(93,069		)	93,114
	$	2,753,849	$	7,980,044	$	(205,734	)	$	10,528,159
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	266,710	$	138,053	$	(110,383	)	$	294,380
Accrued liabilities	463,491		119,186		(389		)	582,288
Short-term debt	—		571,995		—			571,995
Current portion of long-term debt, net	—		1,748,109		—			1,748,109
	730,201		2,577,343		(110,772		)	3,196,772
Long-term debt, net	743,296		4,381,530		—			5,124,826
Lease liability	38,783		5,664		—			44,447
Pension liability	56,138		—		—			56,138
Postretirement healthcare liability	72,513		—		—			72,513
Deferred income taxes	6,219		1,916		—			8,135
Other long-term liabilities	180,033		38,693		2,603			221,329
Commitments and contingencies (Note 16)
Shareholders’ equity	926,666		974,898		(97,565		)	1,803,999
	$	2,753,849	$	7,980,044	$	(205,734	)	$	10,528,159

	December 31, 2018
	HDMC Entities		HDFS Entities		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	544,548	$	659,218	$	—		$	1,203,766
Marketable securities	10,007		—		—			10,007
Accounts receivable, net	425,727		—		(119,253		)	306,474
Finance receivables, net	—		2,214,424		—			2,214,424
Inventories, net	556,128		—		—			556,128
Restricted cash	—		49,275		—			49,275
Other current assets	91,172		59,070		(5,874		)	144,368
	1,627,582		2,981,987		(125,127		)	4,484,442
Finance receivables, net	—		5,007,507		—			5,007,507
Property, plant and equipment, net	847,176		56,956		—			904,132
Goodwill	55,048		—		—			55,048
Deferred income taxes	105,388		37,603		(1,527		)	141,464
Other long-term assets	144,122		18,680		(89,731		)	73,071
	$	2,779,316	$	8,102,733	$	(216,385	)	$	10,665,664
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	258,587	$	145,527	$	(119,253	)	$	284,861
Accrued liabilities	496,643		110,063		(5,576		)	601,130
Short-term debt	—		1,135,810		—			1,135,810
Current portion of long-term debt, net	—		1,575,799		—			1,575,799
	755,230		2,967,199		(124,829		)	3,597,600
Long-term debt, net	742,624		4,145,043		—			4,887,667
Pension liability	107,776		—		—			107,776
Postretirement healthcare liability	94,453		—		—			94,453
Other long-term liabilities	164,243		37,142		2,834			204,219
Commitments and contingencies (Note 16)
Shareholders’ equity	914,990		953,349		(94,390		)	1,773,949
	$	2,779,316	$	8,102,733	$	(216,385	)	$	10,665,664

Cash Flows

	Year Ended December 31, 2019
	HDMC Entities			HDFS Entities			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	403,042		$	200,429		$	(179,836	)	$	423,635
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	223,656			8,881			—			232,537
Amortization of deferred loan origination costs	—			76,326			—			76,326
Amortization of financing origination fees	672			9,151			—			9,823
Provision for long-term employee benefits	13,344			—			—			13,344
Employee benefit plan contributions and payments	(13,256		)	—			—			(13,256		)
Stock compensation expense	30,396			3,337			—			33,733
Net change in wholesale finance receivables related to sales	—			—			(5,822		)	(5,822		)
Provision for credit losses	—			134,536			—			134,536
Deferred income taxes	20,952			676			(81		)	21,547
Other, net	4,425			(3,963		)	(164		)	298
Changes in current assets and liabilities:
Accounts receivable, net	53,772			—			(8,870		)	44,902
Finance receivables - accrued interest and other	—			(11,119		)	—			(11,119		)
Inventories, net	(47,576		)	—			—			(47,576		)
Accounts payable and accrued liabilities	(43,211		)	(4,107		)	28,856			(18,462		)
Derivative financial instruments	1,808			128			—			1,936
Other	(33,105		)	10,033			(5,038		)	(28,110		)
	211,877			223,879			8,881			444,637
Net cash provided by operating activities	614,919			424,308			(170,955		)	868,272
Cash flows from investing activities:
Capital expenditures	(176,264		)	(5,176		)	—			(181,440		)
Origination of finance receivables	—			(7,053,898		)	3,206,576			(3,847,322		)
Collections on finance receivables	—			6,715,338			(3,215,621		)	3,499,717
Sales and redemptions of marketable securities	10,007			—			—			10,007
Acquisition of business	(7,000		)	—			—			(7,000		)
Other investing activities	17,912			—			—			17,912
Net cash used by investing activities	(155,345		)	(343,736		)	(9,045		)	(508,126		)

	Year Ended December 31, 2019
	HDMC Entities			HDFS Entities			Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,203,236			—		1,203,236
Repayments of medium-term notes	—			(1,350,000		)	—		(1,350,000		)
Proceeds from securitization debt	—			1,021,453			—		1,021,453
Repayments of securitization debt	—			(353,251		)	—		(353,251		)
Borrowings of asset-backed commercial paper	—			177,950			—		177,950
Repayments of asset-backed commercial paper	—			(318,006		)	—		(318,006		)
Net decrease in credit facilities and unsecured commercial paper	—			(563,453		)	—		(563,453		)
Dividends paid	(237,221		)	(180,000		)	180,000		(237,221		)
Repurchase of common stock	(296,520		)	—			—		(296,520		)
Issuance of common stock under employee stock option plans	3,589			—			—		3,589
Net cash used by financing activities	(530,152		)	(362,071		)	180,000		(712,223		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(3,321		)	1,016			—		(2,305		)
Net decrease in cash, cash equivalents and restricted cash	$	(73,899	)	$	(280,483	)	$	—	$	(354,382	)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	544,548		$	715,200		$	—	$	1,259,748
Net decrease in cash, cash equivalents and restricted cash	(73,899		)	(280,483		)	—		(354,382		)
Cash, cash equivalents and restricted cash, end of period	$	470,649		$	434,717		$	—	$	905,366

	Year Ended December 31, 2018
	HDMC Entities			HDFS Entities			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	553,640		$	212,727		$	(234,916	)	$	531,451
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	260,707			4,156			—			264,863
Amortization of deferred loan origination costs	—			81,315			—			81,315
Amortization of financing origination fees	663			7,704			—			8,367
Provision for long-term employee benefits	36,481			—			—			36,481
Employee benefit plan contributions and payments	(10,544		)	—			—			(10,544		)
Stock compensation expense	31,855			3,684			—			35,539
Net change in wholesale finance receivables related to sales	—			—			(56,538		)	(56,538		)
Provision for credit losses	—			106,870			—			106,870
Deferred income taxes	(41,905		)	7,716			208			(33,981		)
Other, net	36,840			798			(84		)	37,554
Changes in current assets and liabilities:
Accounts receivable, net	43,613			—			(34,470		)	9,143
Finance receivables – accrued interest and other	—			773			—			773
Inventories, net	(31,059		)	—			—			(31,059		)
Accounts payable and accrued liabilities	152,930			(1,778		)	45,040			196,192
Derivative financial instruments	337			136			—			473
Other	39,031			(10,216		)	207			29,022
	518,949			201,158			(45,637		)	674,470
Net cash provided by operating activities	1,072,589			413,885			(280,553		)	1,205,921
Cash flows from investing activities:
Capital expenditures	(197,905		)	(15,611		)	—			(213,516		)
Origination of finance receivables	—			(7,192,063		)	3,439,246			(3,752,817		)
Collections on finance receivables	—			6,719,362			(3,393,693		)	3,325,669
Purchases of marketable securities	(10,007		)	—			—			(10,007		)
Other investing activities	(11,598		)	—			—			(11,598		)
Net cash used by investing activities	(219,510		)	(488,312		)	45,553			(662,269		)

	Year Ended December 31, 2018
	HDMC Entities			HDFS Entities			Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,591,828			—		1,591,828
Repayments of medium-term notes	—			(877,488		)	—		(877,488		)
Repayments of securitization debt	—			(257,869		)	—		(257,869		)
Borrowings of asset-backed commercial paper	—			509,742			—		509,742
Repayments of asset-backed commercial paper	—			(212,729		)	—		(212,729		)
Net decrease in credit facilities and unsecured commercial paper	—			(135,356		)	—		(135,356		)
Dividends paid	(245,810		)	(235,000		)	235,000		(245,810		)
Repurchase of common stock	(390,606		)	—			—		(390,606		)
Issuance of common stock under employee stock option plans	3,525			—			—		3,525
Net cash (used by) provided by financing activities	(632,891		)	383,128			235,000		(14,763		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(13,826		)	(1,525		)	—		(15,351		)
Net increase in cash, cash equivalents and restricted cash	$	206,362		$	307,176		$	—	$	513,538
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	206,362			307,176			—		513,538
Cash, cash equivalents and restricted cash, end of period	$	544,548		$	715,200		$	—	$	1,259,748

	Year Ended December 31, 2017
	HDMC Entities			HDFS Entities			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	578,727		$	139,234		$	(196,202	)	$	521,759
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	215,639			6,549			—			222,188
Amortization of deferred loan origination costs	—			82,911			—			82,911
Amortization of financing origination fees	655			7,390			—			8,045
Provision for long-term employee benefits	29,900			—			—			29,900
Employee benefit plan contributions and payments	(63,277		)	—			—			(63,277		)
Stock compensation expense	29,570			2,921			—			32,491
Net change in wholesale finance receivables related to sales	—			—			35,172			35,172
Provision for credit losses	—			132,444			—			132,444
Deferred income taxes	29,949			21,497			(591		)	50,855
Other, net	4,858			3,498			203			8,559
Changes in current assets and liabilities:
Accounts receivable, net	(6,792		)	—			(11,357		)	(18,149		)
Finance receivables – accrued interest and other	—			(1,313		)	—			(1,313		)
Inventories, net	(20,584		)	—			—			(20,584		)
Accounts payable and accrued liabilities	9,753			(11,497		)	11,872			10,128
Derivative financial instruments	1,785			81			—			1,866
Other	(31,868		)	(1,684		)	5,618			(27,934		)
	199,588			242,797			40,917			483,302
Net cash provided by operating activities	778,315			382,031			(155,285		)	1,005,061
Cash flows from investing activities:
Capital expenditures	(193,204		)	(13,090		)	—			(206,294		)
Origination of finance receivables	—			(7,109,624		)	3,517,676			(3,591,948		)
Collections on finance receivables	—			6,786,702			(3,558,391		)	3,228,311
Sales and redemptions of marketable securities	6,916			—			—			6,916
Other investing activities	547			—			—			547
Net cash used by investing activities	(185,741		)	(336,012		)	(40,715		)	(562,468		)

	Year Ended December 31, 2017
	HDMC Entities			HDFS Entities			Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			893,668			—		893,668
Repayments of medium-term notes	—			(800,000		)	—		(800,000		)
Repayments of securitization debt	—			(444,671		)	—		(444,671		)
Borrowings of asset-backed commercial paper	—			469,932			—		469,932
Repayments of asset-backed commercial paper	—			(176,227		)	—		(176,227		)
Net increase in credit facilities and unsecured commercial paper	—			212,809			—		212,809
Dividends paid	(251,862		)	(196,000		)	196,000		(251,862		)
Repurchase of common stock	(465,263		)	—			—		(465,263		)
Issuance of common stock under employee stock option plans	11,353			—			—		11,353
Net cash used by financing activities	(705,772		)	(40,489		)	196,000		(550,261		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	25,844			903			—		26,747
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(87,354	)	$	6,433		$	—	$	(80,921	)
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	(87,354		)	6,433			—		(80,921		)
Cash, cash equivalents and restricted cash, end of period	$	338,186		$	408,024		$	—	$	746,210