QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Part I | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | $ | $ | $ | |||||||||||||||||||
Financial Services | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||||||||||
Financial Services interest expense | |||||||||||||||||||||||
Financial Services provision for credit losses | |||||||||||||||||||||||
Selling, administrative and engineering expense | |||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Operating (loss) income | ( | ( | |||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Investment income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
(Loss) income before provision for income taxes | ( | ( | |||||||||||||||||||||
Income tax (benefit) provision | ( | ( | |||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
(Net loss) earnings per share: | |||||||||||||||||||||||
Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Cash dividends per share | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ||||||||||||||||||||||
Derivative financial instruments | ( | ( | ( | ( | |||||||||||||||||||
Pension and postretirement benefit plans | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Comprehensive (loss) income | $ | ( | $ | $ | ( | $ |
(Unaudited) | (Unaudited) | ||||||||||||||||
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Accounts receivable, net | |||||||||||||||||
Finance receivables, net of allowance of $ | |||||||||||||||||
Inventories, net | |||||||||||||||||
Restricted cash | |||||||||||||||||
Other current assets | |||||||||||||||||
Finance receivables, net of allowance of $ | |||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||
Prepaid pension costs | |||||||||||||||||
Goodwill | |||||||||||||||||
Deferred income taxes | |||||||||||||||||
Lease assets | |||||||||||||||||
Other long-term assets | |||||||||||||||||
$ | $ | $ | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | $ | $ | ||||||||||||||
Accrued liabilities | |||||||||||||||||
Short-term debt | |||||||||||||||||
Current portion of long-term debt, net | |||||||||||||||||
Long-term debt, net | |||||||||||||||||
Lease liabilities | |||||||||||||||||
Pension liabilities | |||||||||||||||||
Postretirement healthcare liabilities | |||||||||||||||||
Other long-term liabilities | |||||||||||||||||
Commitments and contingencies (Note 17) | |||||||||||||||||
Shareholders’ equity: | |||||||||||||||||
Preferred stock, | |||||||||||||||||
Common stock | |||||||||||||||||
Additional paid-in-capital | |||||||||||||||||
Retained earnings | |||||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||||||||||
Treasury stock, at cost | ( | ( | ( | ||||||||||||||
$ | $ | $ |
(Unaudited) | (Unaudited) | ||||||||||||||||
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
Balances held by consolidated variable interest entities (Note 13): | |||||||||||||||||
Finance receivables, net - current | $ | $ | $ | ||||||||||||||
Other assets | $ | $ | $ | ||||||||||||||
Finance receivables, net - non-current | $ | $ | $ | ||||||||||||||
Restricted cash - current and non-current | $ | $ | $ | ||||||||||||||
Current portion of long-term debt, net | $ | $ | $ | ||||||||||||||
Long-term debt, net | $ | $ | $ |
Six months ended | |||||||||||
June 28, 2020 | June 30, 2019 | ||||||||||
Net cash provided by operating activities (Note 7) | $ | $ | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Origination of finance receivables | ( | ( | |||||||||
Collections on finance receivables | |||||||||||
Sales and redemptions of marketable securities | |||||||||||
Acquisition of business | ( | ||||||||||
Other investing activities | ( | ||||||||||
Net cash used by investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of medium-term notes | |||||||||||
Repayments of medium-term notes | ( | ( | |||||||||
Proceeds from securitization debt | |||||||||||
Repayments of securitization debt | ( | ( | |||||||||
Borrowings of asset-backed commercial paper | |||||||||||
Repayments of asset-backed commercial paper | ( | ( | |||||||||
Net increase (decrease) in unsecured commercial paper | ( | ||||||||||
Net increase in credit facilities | |||||||||||
Deposits | |||||||||||
Dividends paid | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Issuance of common stock under share-based plans | |||||||||||
Net cash provided (used) by financing activities | ( | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | $ | ( | ||||||||
Cash, cash equivalents and restricted cash: | |||||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ | $ | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Restricted cash included in Other long-term assets | |||||||||||
Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||
Issued Shares | Balance | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax (Note 18) | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting (Note 2) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance, March 29, 2020 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 18) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | ( | — | — | |||||||||||||||||||||||||||||||||||||
Balance, June 28, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||
Issued Shares | Balance | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 18) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2019 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 18) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
December 31, 2019 | Effect of Adoption | January 1, 2020 | |||||||||||||||
ASSETS | |||||||||||||||||
Finance receivables(a) | $ | $ | $ | ||||||||||||||
Allowance for credit losses on finance receivables(a) | $ | ( | $ | ( | $ | ( | |||||||||||
Deferred income taxes | $ | $ | $ | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Accrued liabilities | $ | $ | $ | ||||||||||||||
Retained earnings | $ | $ | ( | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Motorcycles and Related Products Revenue: | |||||||||||||||||||||||
Motorcycles | $ | $ | $ | $ | |||||||||||||||||||
Parts & accessories | |||||||||||||||||||||||
General merchandise | |||||||||||||||||||||||
Licensing | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Financial Services Revenue: | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
$ | $ | $ | $ |
June 28, 2020 | June 30, 2019 | ||||||||||
Balance, beginning of period | $ | $ | |||||||||
Balance, end of period |
Three and Six months ended June 28, 2020 | |||||
Motorcycles and Related Products | $ | ||||
Financial Services | |||||
$ | |||||
Three and Six months ended June 28, 2020 | |||||||||||||||||||||||
Employee Termination Benefits | Contract Terminations & Other | Non-Current Asset Adjustments | Total | ||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Utilized – cash | |||||||||||||||||||||||
Utilized – non cash | ( | ( | |||||||||||||||||||||
Foreign currency changes | ( | ( | |||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ |
Three months ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Manufacturing Optimization Plan | Reorganization Plan | ||||||||||||||||||||||||||||||||||
Employee Termination Benefits | Accelerated Depreciation | Other | Total | Employee Termination Benefits | Total | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Restructuring expense (benefit) | ( | ||||||||||||||||||||||||||||||||||
Utilized – cash | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Utilized – non cash | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Foreign currency changes | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Manufacturing Optimization Plan | Reorganization Plan | ||||||||||||||||||||||||||||||||||
Employee Termination Benefits | Accelerated Depreciation | Other | Total | Employee Termination Benefits | Total | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Restructuring expense (benefit) | ( | ||||||||||||||||||||||||||||||||||
Utilized – cash | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Utilized – non cash | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Foreign currency changes | ( | ( | ( | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Basic weighted-average shares outstanding | |||||||||||||||||||||||
Effect of dilutive securities – employee stock compensation plan | |||||||||||||||||||||||
Diluted weighted-average shares outstanding | |||||||||||||||||||||||
(Net loss) earnings per share: | |||||||||||||||||||||||
Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted | $ | ( | $ | $ | ( | $ |
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
Mutual funds | $ | $ | $ | ||||||||||||||
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
Raw materials and work in process | $ | $ | $ | ||||||||||||||
Motorcycle finished goods | |||||||||||||||||
Parts & accessories and general merchandise | |||||||||||||||||
Inventory at lower of FIFO cost or net realizable value | |||||||||||||||||
Excess of FIFO over LIFO cost | ( | ( | ( | ||||||||||||||
$ | $ | $ |
Six months ended | |||||||||||
June 28, 2020 | June 30, 2019 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of deferred loan origination costs | |||||||||||
Amortization of financing origination fees | |||||||||||
Provision for long-term employee benefits | |||||||||||
Employee benefit plan contributions and payments | ( | ( | |||||||||
Stock compensation expense | |||||||||||
Net change in wholesale finance receivables related to sales | ( | ||||||||||
Provision for credit losses | |||||||||||
Deferred income taxes | ( | ||||||||||
Other, net | ( | ( | |||||||||
Changes in current assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ( | |||||||||
Finance receivables – accrued interest and other | ( | ( | |||||||||
Inventories, net | |||||||||||
Accounts payable and accrued liabilities | |||||||||||
Derivative financial instruments | |||||||||||
Other | ( | ||||||||||
Net cash provided by operating activities | $ | $ |
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
Retail finance receivables | $ | $ | $ | ||||||||||||||
Wholesale finance receivables | |||||||||||||||||
Allowance for credit losses | ( | ( | ( | ||||||||||||||
$ | $ | $ |
Three months ended June 28, 2020 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Balance, beginning of period | $ | $ | $ | ||||||||||||||
Provision for credit losses | ( | ||||||||||||||||
Charge-offs | ( | ( | |||||||||||||||
Recoveries | |||||||||||||||||
Balance, end of period | $ | $ | $ | ||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Balance, beginning of period | $ | $ | $ | ||||||||||||||
Provision for credit losses | ( | ||||||||||||||||
Charge-offs | ( | ( | |||||||||||||||
Recoveries | |||||||||||||||||
Balance, end of period | $ | $ | $ | ||||||||||||||
Six months ended June 28, 2020 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Balance, beginning of period | $ | $ | $ | ||||||||||||||
Cumulative effect of change in accounting(a) | |||||||||||||||||
Provision for credit losses | |||||||||||||||||
Charge-offs | ( | ( | |||||||||||||||
Recoveries | |||||||||||||||||
Balance, end of period | $ | $ | $ | ||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Balance, beginning of period | $ | $ | $ | ||||||||||||||
Provision for credit losses | |||||||||||||||||
Charge-offs | ( | ( | |||||||||||||||
Recoveries | |||||||||||||||||
Balance, end of period | $ | $ | $ |
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & Prior | Total | |||||||||||||||||||||||||||||||||||
U.S. Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Prime | |||||||||||||||||||||||||||||||||||||||||
Sub-prime | |||||||||||||||||||||||||||||||||||||||||
Canadian Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | |||||||||||||||||||||||||||||||||||||||||
Prime | |||||||||||||||||||||||||||||||||||||||||
Sub-prime | |||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ |
December 31, 2019 | June 30, 2019 | |||||||||||||
Prime | $ | $ | ||||||||||||
Sub-prime | ||||||||||||||
$ | $ |
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & Prior | Total | |||||||||||||||||||||||||||||||||||
Non-Performing | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Medium Risk | |||||||||||||||||||||||||||||||||||||||||
Low Risk | |||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ |
December 31, 2019 | June 30, 2019 | |||||||||||||
Doubtful | $ | $ | ||||||||||||
Substandard | ||||||||||||||
Special Mention | ||||||||||||||
Medium Risk | ||||||||||||||
Low Risk | ||||||||||||||
$ | $ |
Amortized Cost | Amortized Cost | Interest Income | |||||||||||||||
January 1, 2020 | June 28, 2020 | Recognized | |||||||||||||||
Wholesale: | |||||||||||||||||
No related allowance recorded | $ | $ | $ | ||||||||||||||
Related allowance recorded | |||||||||||||||||
$ | $ | $ |
June 28, 2020 | |||||||||||||||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total | ||||||||||||||||||||||||||||||
Retail finance receivables | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Wholesale finance receivables | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total | ||||||||||||||||||||||||||||||
Retail finance receivables | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Wholesale finance receivables | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total | ||||||||||||||||||||||||||||||
Retail finance receivables | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Wholesale finance receivables | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Allowance for credit losses, ending balance: | |||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Finance receivables, ending balance: | |||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||
$ | $ | $ | |||||||||||||||
June 30, 2019 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Allowance for credit losses, ending balance: | |||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Finance receivables, ending balance: | |||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||
$ | $ | $ |
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||
Wholesale: | |||||||||||||||||||||||||||||
No related allowance recorded | $ | $ | $ | — | $ | $ | |||||||||||||||||||||||
Related allowance recorded | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
Derivative Financial Instruments Designated as Cash Flow Hedging Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Value | Other Current Assets | Accrued Liabilities | Notional Value | Other Current Assets | Accrued Liabilities | Notional Value | Other Current Assets | Accrued Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swap | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Value | Other Current Assets | Accrued Liabilities | Notional Value | Other Current Assets | Accrued Liabilities | Notional Value | Other Current Assets | Accrued Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate cap | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ |
Gain/(Loss) Recognized in OCI | Gain/(Loss) Reclassified from AOCL into Income | ||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Commodity contracts | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Cross-currency swap | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Treasury rate locks | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ |
Motorcycles cost of goods sold | Selling, administrative & engineering expense | Interest expense | Financial Services interest expense | ||||||||||||||||||||
Three months ended June 28, 2020 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | $ | $ | $ | |||||||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | $ | — | $ | — | $ | — | ||||||||||||||||
Commodity contracts | $ | ( | $ | — | $ | — | $ | — | |||||||||||||||
Cross-currency swap | $ | — | $ | $ | — | $ | — | ||||||||||||||||
Treasury rate locks | $ | — | $ | — | $ | ( | $ | ( | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | ( | |||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | $ | $ | $ | |||||||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | $ | — | $ | — | $ | — | ||||||||||||||||
Commodity contracts | $ | ( | $ | — | $ | — | $ | — | |||||||||||||||
Treasury rate locks | $ | — | $ | — | $ | ( | $ | ( | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | ( | |||||||||||||||
Motorcycles cost of goods sold | Selling, administrative & engineering expense | Interest expense | Financial Services interest expense | ||||||||||||||||||||
Six months ended June 28, 2020 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | $ | $ | $ | |||||||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | $ | — | $ | — | $ | — | ||||||||||||||||
Commodity contracts | $ | ( | $ | — | $ | — | $ | — | |||||||||||||||
Cross-currency swaps | $ | — | $ | $ | — | $ | — | ||||||||||||||||
Treasury rate locks | $ | — | $ | — | $ | ( | $ | ( | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | ( | |||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | $ | $ | $ | |||||||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | $ | — | $ | — | $ | — | ||||||||||||||||
Commodity contracts | $ | ( | $ | — | $ | — | $ | — | |||||||||||||||
Treasury rate locks | $ | — | $ | — | $ | ( | $ | ( | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | ( |
Amount of Gain/(Loss) Recognized in Income | |||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Foreign currency contracts | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Commodity contracts | ( | ( | |||||||||||||||||||||
Interest rate cap | ( | ( | ( | ( | |||||||||||||||||||
$ | ( | $ | ( | $ | $ | ( |
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
Lease assets | $ | $ | $ | ||||||||||||||
Accrued liabilities | $ | $ | $ | ||||||||||||||
Lease liabilities | |||||||||||||||||
$ | $ | $ |
Operating Leases | |||||
2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Future lease payments | |||||
Present value discount | ( | ||||
Lease liabilities | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Cash outflows for amounts included in the measurement of lease liabilities | $ | $ | $ | $ | |||||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations | $ | $ | $ | $ |
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
Weighted-average remaining lease term (in years) | |||||||||||||||||
Weighted-average discount rate | % | % | % |
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
Unsecured commercial paper | $ | $ | $ | ||||||||||||||
364-day credit facility borrowings | |||||||||||||||||
$ | $ | $ |
June 28, 2020 | December 31, 2019 | June 30, 2019 | ||||||||||||||||||
Secured debt: | ||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | $ | $ | |||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | ||||||||||||||||||||
Asset-backed securitization debt | ||||||||||||||||||||
Unamortized discounts and debt issuance costs | ( | ( | ( | |||||||||||||||||
Unsecured notes (at par value): | ||||||||||||||||||||
Medium-term notes: | ||||||||||||||||||||
Due in 2019, issued September 2014 | % | |||||||||||||||||||
Due in 2020, issued February 2015 | % | |||||||||||||||||||
Due in 2020, issued May 2018 | LIBOR + | |||||||||||||||||||
Due in 2020, issued March 2017 | % | |||||||||||||||||||
Due in 2021, issued January 2016 | % | |||||||||||||||||||
Due in 2021, issued November 2018 | LIBOR + | |||||||||||||||||||
Due in 2021, issued May 2018 | % | |||||||||||||||||||
Due in 2022, issued February 2019 | % | |||||||||||||||||||
Due in 2022, issued June 2017 | % | |||||||||||||||||||
Due in 2023, issued February 2018 | % | |||||||||||||||||||
Due in 2023, issued May 2020(a) | % | |||||||||||||||||||
Due in 2024, issued November 2019(b) | % | |||||||||||||||||||
Due in 2025, issued June 2020 | % | |||||||||||||||||||
Unamortized discounts and debt issuance costs | ( | ( | ( | |||||||||||||||||
June 28, 2020 | December 31, 2019 | June 30, 2019 | ||||||||||||||||||
Senior notes: | ||||||||||||||||||||
Due in 2025, issued July 2015 | % | |||||||||||||||||||
Due in 2045, issued July 2015 | % | |||||||||||||||||||
Unamortized discounts and debt issuance costs | ( | ( | ( | |||||||||||||||||
Long-term debt | ||||||||||||||||||||
Current portion of long-term debt, net | ( | ( | ( | |||||||||||||||||
Long-term debt, net | $ | $ | $ |
June 28, 2020 | |||||||||||||||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||||||||||||||
On-balance sheet assets and liabilities: | |||||||||||||||||||||||||||||||||||
Consolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed securitizations | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | ( | ||||||||||||||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | ( | ||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||||||||||||||
On-balance sheet assets and liabilities: | |||||||||||||||||||||||||||||||||||
Consolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed securitizations | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | ( | ||||||||||||||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | ( | ||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||||||||||||||
On-balance sheet assets and liabilities: | |||||||||||||||||||||||||||||||||||
Consolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed securitizations | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | ( | ||||||||||||||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | ( | ||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | $ |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Transfers | Proceeds | Proceeds, net | Transfers | Proceeds | Proceeds, net | ||||||||||||||||||||||||||||||
First quarter | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Second quarter | $ | ||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
2020 | 2019 | ||||||||||||||||||||||
Transfers | Proceeds | Transfers | Proceeds | ||||||||||||||||||||
First quarter | $ | $ | $ | $ | |||||||||||||||||||
Second quarter | |||||||||||||||||||||||
$ | $ | $ | $ |
2020 | 2019 | ||||||||||||||||||||||
Transfers | Proceeds | Transfers | Proceeds | ||||||||||||||||||||
First quarter | $ | $ | $ | $ | |||||||||||||||||||
Second quarter | |||||||||||||||||||||||
$ | $ | $ | $ |
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
On-balance sheet retail motorcycle finance receivables | $ | $ | $ | ||||||||||||||
Off-balance sheet retail motorcycle finance receivables | |||||||||||||||||
$ | $ | $ |
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||
On-balance sheet retail motorcycle finance receivables | $ | $ | $ | ||||||||||||||
Off-balance sheet retail motorcycle finance receivables | |||||||||||||||||
$ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
On-balance sheet retail motorcycle finance receivables | $ | $ | $ | $ | |||||||||||||||||||
Off-balance sheet retail motorcycle finance receivables | |||||||||||||||||||||||
$ | $ | $ | $ |
June 28, 2020 | |||||||||||||||||
Balance | Level 1 | Level 2 | |||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | $ | $ | ||||||||||||||
Marketable securities | |||||||||||||||||
Derivative financial instruments | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | $ | $ | $ |
December 31, 2019 | |||||||||||||||||
Balance | Level 1 | Level 2 | |||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | $ | $ | ||||||||||||||
Marketable securities | |||||||||||||||||
Derivative financial instruments | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | $ | $ | $ | ||||||||||||||
June 30, 2019 | |||||||||||||||||
Balance | Level 1 | Level 2 | |||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | $ | $ | ||||||||||||||
Marketable securities | |||||||||||||||||
Derivative financial instruments | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | $ | $ | $ |
June 28, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Finance receivables, net | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||||||||
Unsecured commercial paper | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
364-day credit facility borrowings | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Asset-backed securitization debt | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Medium-term notes | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Senior notes | $ | $ | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Warranties issued during the period | |||||||||||||||||||||||
Settlements made during the period | ( | ( | ( | ( | |||||||||||||||||||
Recalls and changes to pre-existing warranty liabilities | ( | ( | |||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Pension and SERPA Benefits: | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service credit | ( | ( | ( | ( | |||||||||||||||||||
Net loss | |||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | |||||||||||||||||||
Postretirement Healthcare Benefits: | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service credit | ( | ( | ( | ( | |||||||||||||||||||
Net loss | |||||||||||||||||||||||
Special retirement benefit cost | |||||||||||||||||||||||
Curtailment gain | ( | ( | |||||||||||||||||||||
Net periodic benefit cost | $ | ( | $ | $ | ( | $ |
Three months ended June 28, 2020 | |||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||
Balance, beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income, before reclassifications | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||
Net gains on derivative financial instruments | — | ( | — | ( | |||||||||||||||||||
Prior service credits(a) | — | — | ( | ( | |||||||||||||||||||
Actuarial losses(a) | — | — | |||||||||||||||||||||
Reclassifications before tax | ( | ( | |||||||||||||||||||||
Income tax benefit (expense) | ( | ||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance, end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||
Balance, beginning of period | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss), before reclassifications | ( | ||||||||||||||||||||||
Income tax benefit | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||
Net gains on derivative financial instruments | — | ( | — | ( | |||||||||||||||||||
Prior service credits(a) | — | — | ( | ( | |||||||||||||||||||
Actuarial losses(a) | — | — | |||||||||||||||||||||
Reclassifications before tax | ( | ||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | |||||||||||||||||||||
( | |||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance, end of period | $ | ( | $ | ( | $ | ( | $ | ( |
Six months ended June 28, 2020 | |||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||
Balance, beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive loss, before reclassifications | ( | ( | ( | ||||||||||||||||||||
Income tax benefit | |||||||||||||||||||||||
( | ( | — | ( | ||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||
Net gains on derivative financial instruments | — | ( | — | ( | |||||||||||||||||||
Prior service credits(a) | — | — | ( | ( | |||||||||||||||||||
Actuarial losses(a) | — | — | |||||||||||||||||||||
Reclassifications before tax | — | ( | |||||||||||||||||||||
Income tax benefit (expense) | ( | ( | |||||||||||||||||||||
— | ( | ||||||||||||||||||||||
Other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||
Balance, end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||
Balance, beginning of period | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss), before reclassifications | ( | ||||||||||||||||||||||
Income tax (expense) benefit | ( | ||||||||||||||||||||||
( | |||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||
Net gains on derivative financial instruments | — | ( | — | ( | |||||||||||||||||||
Prior service credits(a) | — | — | ( | ( | |||||||||||||||||||
Actuarial losses(a) | — | — | |||||||||||||||||||||
Reclassifications before tax | — | ( | |||||||||||||||||||||
Income tax benefit (expense) | — | ( | ( | ||||||||||||||||||||
— | ( | ||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance, end of period | $ | ( | $ | ( | $ | ( | $ | ( |
Three months ended | Six months ended | ||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | June 28, 2020 | June 30, 2019 | ||||||||||||||||||||
Motorcycles and Related Products: | |||||||||||||||||||||||
Motorcycles revenue | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, administrative and engineering expense | |||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Operating (loss) income | ( | ( | |||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||
Financial Services revenue | |||||||||||||||||||||||
Financial Services expense | |||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Operating (loss) income | $ | ( | $ | $ | ( | $ |
Three months ended June 28, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | $ | $ | ( | $ | ||||||||||||||||||
Financial Services | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||||||||||
Financial Services interest expense | |||||||||||||||||||||||
Financial Services provision for credit losses | |||||||||||||||||||||||
Selling, administrative and engineering expense | ( | ||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Operating (loss) income | ( | ( | |||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Investment income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
(Loss) income before income taxes | ( | ( | |||||||||||||||||||||
Income tax (benefit) provision | ( | ( | |||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Six months ended June 28, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | $ | $ | ( | $ | ||||||||||||||||||
Financial Services | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||||||||||
Financial Services interest expense | |||||||||||||||||||||||
Financial Services provision for credit losses | |||||||||||||||||||||||
Selling, administrative and engineering expense | ( | ||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Operating (loss) income | ( | ( | |||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Investment income | ( | ||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | |||||||||||||||||||||
Income tax (benefit) provision | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ( |
Three months ended June 30, 2019 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | $ | $ | ( | $ | ||||||||||||||||||
Financial Services | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||||||||||
Financial Services interest expense | |||||||||||||||||||||||
Financial Services provision for credit losses | |||||||||||||||||||||||
Selling, administrative and engineering expense | ( | ||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Operating income | ( | ||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Investment income | ( | ||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Income before provision for income taxes | ( | ||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | ( | $ | ||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | $ | $ | ( | $ | ||||||||||||||||||
Financial Services | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||||||||||
Financial Services interest expense | |||||||||||||||||||||||
Financial Services provision for credit losses | |||||||||||||||||||||||
Selling, administrative and engineering expense | ( | ||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Investment income | ( | ||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Income before provision for income taxes | ( | ||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | ( | $ |
June 28, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Accounts receivable, net | ( | ||||||||||||||||||||||
Finance receivables, net | |||||||||||||||||||||||
Inventories, net | |||||||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Other current assets | ( | ||||||||||||||||||||||
( | |||||||||||||||||||||||
Finance receivables, net | |||||||||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||||||||
Prepaid pension costs | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Deferred income taxes | ( | ||||||||||||||||||||||
Lease assets | |||||||||||||||||||||||
Other long-term assets | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | $ | $ | ( | $ | ||||||||||||||||||
Accrued liabilities | ( | ||||||||||||||||||||||
Short-term debt | |||||||||||||||||||||||
Current portion of long-term debt, net | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Long-term debt, net | |||||||||||||||||||||||
Lease liabilities | |||||||||||||||||||||||
Pension liabilities | |||||||||||||||||||||||
Postretirement healthcare liabilities | |||||||||||||||||||||||
Other long-term liabilities | |||||||||||||||||||||||
Commitments and contingencies (Note 17) | |||||||||||||||||||||||
Shareholders’ equity | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ |
December 31, 2019 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Accounts receivable, net | ( | ||||||||||||||||||||||
Finance receivables, net | |||||||||||||||||||||||
Inventories, net | |||||||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Other current assets | ( | ||||||||||||||||||||||
( | |||||||||||||||||||||||
Finance receivables, net | |||||||||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||||||||
Prepaid pension costs | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Deferred income taxes | ( | ||||||||||||||||||||||
Lease assets | |||||||||||||||||||||||
Other long-term assets | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | $ | $ | ( | $ | ||||||||||||||||||
Accrued liabilities | ( | ||||||||||||||||||||||
Short-term debt | |||||||||||||||||||||||
Current portion of long-term debt, net | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Long-term debt, net | |||||||||||||||||||||||
Lease liabilities | |||||||||||||||||||||||
Pension liabilities | |||||||||||||||||||||||
Postretirement healthcare liabilities | |||||||||||||||||||||||
Other long-term liabilities | |||||||||||||||||||||||
Commitments and contingencies (Note 17) | |||||||||||||||||||||||
Shareholders’ equity | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ |
June 30, 2019 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Accounts receivable, net | ( | ||||||||||||||||||||||
Finance receivables, net | |||||||||||||||||||||||
Inventories, net | |||||||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Other current assets | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Finance receivables, net | |||||||||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Deferred income taxes | ( | ||||||||||||||||||||||
Lease assets | |||||||||||||||||||||||
Other long-term assets | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | $ | $ | ( | $ | ||||||||||||||||||
Accrued liabilities | |||||||||||||||||||||||
Short-term debt | |||||||||||||||||||||||
Current portion of long-term debt, net | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Long-term debt, net | |||||||||||||||||||||||
Lease liabilities | |||||||||||||||||||||||
Pension liabilities | |||||||||||||||||||||||
Postretirement healthcare liabilities | |||||||||||||||||||||||
Other long-term liabilities | |||||||||||||||||||||||
Commitments and contingencies (Note 17) | |||||||||||||||||||||||
Shareholders’ equity | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ |
Six months ended June 28, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Adjustments to reconcile Net income (loss) to Net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Amortization of deferred loan origination costs | |||||||||||||||||||||||
Amortization of financing origination fees | |||||||||||||||||||||||
Provision for long-term employee benefits | |||||||||||||||||||||||
Employee benefit plan contributions and payments | ( | ( | |||||||||||||||||||||
Stock compensation expense | |||||||||||||||||||||||
Net change in wholesale finance receivables related to sales | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Deferred income taxes | ( | ( | ( | ||||||||||||||||||||
Other, net | ( | ( | ( | ||||||||||||||||||||
Changes in current assets and liabilities: | |||||||||||||||||||||||
Accounts receivable, net | ( | ( | |||||||||||||||||||||
Finance receivables - accrued interest and other | ( | ( | |||||||||||||||||||||
Inventories, net | |||||||||||||||||||||||
Accounts payable and accrued liabilities | ( | ( | |||||||||||||||||||||
Derivative financial instruments | ( | ||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||
Net cash provided by operating activities | |||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||||||||
Origination of finance receivables | ( | ( | |||||||||||||||||||||
Collections on finance receivables | ( | ||||||||||||||||||||||
Other investing activities | ( | ( | |||||||||||||||||||||
Net cash (used) provided by investing activities | ( | ( | ( | ||||||||||||||||||||
Six months ended June 28, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of medium-term notes | |||||||||||||||||||||||
Repayments of medium-term notes | ( | ( | |||||||||||||||||||||
Proceeds from securitization debt | |||||||||||||||||||||||
Repayments of securitization debt | ( | ( | |||||||||||||||||||||
Borrowings of asset-backed commercial paper | |||||||||||||||||||||||
Repayments of asset-backed commercial paper | ( | ( | |||||||||||||||||||||
Net increase in unsecured commercial paper | |||||||||||||||||||||||
Net increase in credit facilities | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Dividends paid | ( | ( | ( | ||||||||||||||||||||
Repurchase of common stock | ( | ( | |||||||||||||||||||||
Issuance of common stock under share-based plans | |||||||||||||||||||||||
Net cash (used) provided by financing activities | ( | ||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | |||||||||||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | ( | $ | $ | $ | ||||||||||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | $ | $ |
Six months ended June 30, 2019 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | $ | $ | ( | $ | ||||||||||||||||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Amortization of deferred loan origination costs | |||||||||||||||||||||||
Amortization of financing origination fees | |||||||||||||||||||||||
Provision for long-term employee benefits | |||||||||||||||||||||||
Employee benefit plan contributions and payments | ( | ( | |||||||||||||||||||||
Stock compensation expense | |||||||||||||||||||||||
Net change in wholesale finance receivables related to sales | ( | ( | |||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Deferred income taxes | ( | ( | |||||||||||||||||||||
Other, net | ( | ( | ( | ( | |||||||||||||||||||
Changes in current assets and liabilities: | |||||||||||||||||||||||
Accounts receivable, net | ( | ( | |||||||||||||||||||||
Finance receivables - accrued interest and other | ( | ( | |||||||||||||||||||||
Inventories, net | |||||||||||||||||||||||
Accounts payable and accrued liabilities | ( | ||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Other | ( | ( | ( | ||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Net cash provided by operating activities | ( | ||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||||||||
Origination of finance receivables | ( | ( | |||||||||||||||||||||
Collections on finance receivables | ( | ||||||||||||||||||||||
Sales and redemptions of marketable securities | |||||||||||||||||||||||
Acquisition of business | ( | ( | |||||||||||||||||||||
Other investing activities | |||||||||||||||||||||||
Net cash used by investing activities | ( | ( | ( | ||||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of medium-term notes | |||||||||||||||||||||||
Repayments of medium-term notes | ( | ( | |||||||||||||||||||||
Proceeds from securitization debt | |||||||||||||||||||||||
Repayments of securitization debt | ( | ( | |||||||||||||||||||||
Borrowings of asset-backed commercial paper | |||||||||||||||||||||||
Repayments of asset-backed commercial paper | ( | ( | |||||||||||||||||||||
Net decrease in unsecured commercial paper | ( | ( | |||||||||||||||||||||
Dividends paid | ( | ( | ( | ||||||||||||||||||||
Repurchase of common stock | ( | ( | |||||||||||||||||||||
Issuance of common stock under share-based plans | |||||||||||||||||||||||
Net cash used by financing activities | ( | ( | ( | ||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | |||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ( | |||||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | $ | $ |
Three months ended | |||||||||||||||||||||||
(in thousands, except (net loss) earnings per share) | June 28, 2020 | June 30, 2019 | (Decrease) Increase | % Change | |||||||||||||||||||
Operating (loss) income from Motorcycles and Related Products | $ | (121,024) | $ | 180,728 | $ | (301,752) | (167.0) | % | |||||||||||||||
Operating income from Financial Services | 4,925 | 75,529 | (70,604) | (93.5) | |||||||||||||||||||
Operating (loss) income | (116,099) | 256,257 | (372,356) | (145.3) | |||||||||||||||||||
Other income, net | 156 | 4,037 | (3,881) | (96.1) | |||||||||||||||||||
Investment income | 5,757 | 3,571 | 2,186 | 61.2 | |||||||||||||||||||
Interest expense | 7,769 | 7,784 | (15) | (0.2) | |||||||||||||||||||
(Loss) income before income taxes | (117,955) | 256,081 | (374,036) | (146.1) | |||||||||||||||||||
Income tax (benefit) provision | (25,738) | 60,450 | (86,188) | (142.6) | |||||||||||||||||||
Net (loss) income | $ | (92,217) | $ | 195,631 | $ | (287,848) | (147.1) | % | |||||||||||||||
Diluted (net loss) earnings per share | $ | (0.60) | $ | 1.23 | $ | (1.83) | (148.8) | % |
Three months ended | |||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | Decrease | % Change | ||||||||||||||||||||
United States | 31,340 | 42,762 | (11,422) | (26.7) | % | ||||||||||||||||||
Canada | 2,287 | 3,279 | (992) | (30.3) | |||||||||||||||||||
Total North America | 33,627 | 46,041 | (12,414) | (27.0) | |||||||||||||||||||
Europe(b) | 9,738 | 13,552 | (3,814) | (28.1) | |||||||||||||||||||
EMEA - Other | 1,226 | 2,067 | (841) | (40.7) | |||||||||||||||||||
Total EMEA | 10,964 | 15,619 | (4,655) | (29.8) | |||||||||||||||||||
Asia Pacific(c) | 4,364 | 4,544 | (180) | (4.0) | |||||||||||||||||||
Asia Pacific - Other | 2,524 | 3,126 | (602) | (19.3) | |||||||||||||||||||
Total Asia Pacific | 6,888 | 7,670 | (782) | (10.2) | |||||||||||||||||||
Latin America | 1,233 | 2,516 | (1,283) | (51.0) | |||||||||||||||||||
Worldwide retail sales | 52,712 | 71,846 | (19,134) | (26.6) |
Three months ended | |||||||||||||||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | Unit | Unit | ||||||||||||||||||||||||||||||||
Units | Mix % | Units | Mix % | Decrease | % Change | ||||||||||||||||||||||||||||||
U.S. motorcycle shipments | 11,051 | 39.0 | % | 41,404 | 60.2 | % | (30,353) | (73.3) | % | ||||||||||||||||||||||||||
Worldwide motorcycle shipments: | |||||||||||||||||||||||||||||||||||
Touring motorcycle units | 9,709 | 34.2 | % | 30,923 | 45.0 | % | (21,214) | (68.6) | % | ||||||||||||||||||||||||||
Cruiser motorcycle units(a) | 11,874 | 41.9 | % | 22,691 | 33.0 | % | (10,817) | (47.7) | % | ||||||||||||||||||||||||||
Sportster® / Street motorcycle units | 6,786 | 23.9 | % | 15,143 | 22.0 | % | (8,357) | (55.2) | % | ||||||||||||||||||||||||||
28,369 | 100.0 | % | 68,757 | 100.0 | % | (40,388) | (58.7) | % |
Three months ended | |||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | (Decrease) Increase | % Change | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles | $ | 446,738 | $ | 1,128,063 | $ | (681,325) | (60.4) | % | |||||||||||||||
Parts & Accessories | 168,708 | 221,258 | (52,550) | (23.8) | |||||||||||||||||||
General Merchandise | 37,805 | 64,644 | (26,839) | (41.5) | |||||||||||||||||||
Licensing | 4,903 | 9,911 | (5,008) | (50.5) | |||||||||||||||||||
Other | 11,120 | 10,128 | 992 | 9.8 | |||||||||||||||||||
669,274 | 1,434,004 | (764,730) | (53.3) | ||||||||||||||||||||
Cost of goods sold | 561,646 | 979,266 | (417,620) | (42.6) | |||||||||||||||||||
Gross profit | 107,628 | 454,738 | (347,110) | (76.3) | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling & administrative expense | 141,929 | 208,925 | (66,996) | (32.1) | |||||||||||||||||||
Engineering expense | 45,718 | 54,662 | (8,944) | (16.4) | |||||||||||||||||||
Restructuring expense | 41,005 | 10,423 | 30,582 | 293.4 | |||||||||||||||||||
228,652 | 274,010 | (45,358) | (16.6) | ||||||||||||||||||||
Operating (loss) income | $ | (121,024) | $ | 180,728 | $ | (301,752) | (167.0) | % | |||||||||||||||
Operating margin | (18.1) | % | 12.6 | % | (30.7) | pts. |
Net Revenue | Cost of Goods Sold | Gross Profit | |||||||||||||||
Three months ended June 30, 2019 | $ | 1,434.0 | $ | 979.3 | $ | 454.7 | |||||||||||
Volume | (747.6) | (491.6) | (256.0) | ||||||||||||||
Price, net of related cost | 3.5 | 0.3 | 3.2 | ||||||||||||||
Foreign currency exchange rates and hedging | (11.4) | 4.0 | (15.4) | ||||||||||||||
Shipment mix | (9.3) | 7.0 | (16.3) | ||||||||||||||
Raw material prices | — | (2.9) | 2.9 | ||||||||||||||
Manufacturing and other costs | — | 65.5 | (65.5) | ||||||||||||||
(764.8) | (417.7) | (347.1) | |||||||||||||||
Three months ended June 28, 2020 | $ | 669.2 | $ | 561.6 | $ | 107.6 |
Three months ended | |||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | Increase (Decrease) | % Change | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Interest income | $ | 168,261 | $ | 167,077 | $ | 1,184 | 0.7 | % | |||||||||||||||
Other income | 27,692 | 31,538 | (3,846) | (12.2) | |||||||||||||||||||
195,953 | 198,615 | (2,662) | (1.3) | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Interest expense | 62,187 | 52,673 | 9,514 | 18.1 | |||||||||||||||||||
Provision for credit losses | 91,179 | 26,383 | 64,796 | 245.6 | |||||||||||||||||||
Operating expense | 36,718 | 44,030 | (7,312) | (16.6) | |||||||||||||||||||
Restructuring expense | 944 | — | 944 | 100.0 | |||||||||||||||||||
191,028 | 123,086 | 67,942 | 55.2 | ||||||||||||||||||||
Operating income | $ | 4,925 | $ | 75,529 | $ | (70,604) | (93.5) | % |
Three months ended | |||||||||||
June 28, 2020 | June 30, 2019 | ||||||||||
Balance, beginning of period | $ | 335,496 | $ | 190,872 | |||||||
Provision for credit losses | 91,179 | 26,383 | |||||||||
Charge-offs, net of recoveries | (15,660) | (22,259) | |||||||||
Balance, end of period | $ | 411,015 | $ | 194,996 |
Six months ended | |||||||||||||||||||||||
(in thousands, except (net loss) earnings per share) | June 28, 2020 | June 30, 2019 | (Decrease) Increase | % Change | |||||||||||||||||||
Operating (loss) income from Motorcycles and Related Products | $ | (36,457) | $ | 289,109 | $ | (325,566) | (112.6) | % | |||||||||||||||
Operating income from Financial Services | 27,871 | 134,260 | (106,389) | (79.2) | |||||||||||||||||||
Operating (loss) income | (8,586) | 423,369 | (431,955) | (102.0) | |||||||||||||||||||
Other income, net | 311 | 8,697 | (8,386) | (96.4) | |||||||||||||||||||
Investment income | 410 | 9,929 | (9,519) | (95.9) | |||||||||||||||||||
Interest expense | 15,524 | 15,515 | 9 | 0.1 | |||||||||||||||||||
(Loss) income before income taxes | (23,389) | 426,480 | (449,869) | (105.5) | |||||||||||||||||||
Income tax (benefit) provision | (867) | 102,904 | (103,771) | (100.8) | |||||||||||||||||||
Net (loss) income | $ | (22,522) | $ | 323,576 | $ | (346,098) | (107.0) | % | |||||||||||||||
Diluted (net loss) earnings per share | $ | (0.15) | $ | 2.03 | $ | (2.18) | (107.4) | % |
Six months ended | |||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | Decrease | % Change | ||||||||||||||||||||
United States | 55,072 | 70,853 | (15,781) | (22.3) | % | ||||||||||||||||||
Canada | 3,753 | 5,227 | (1,474) | (28.2) | |||||||||||||||||||
Total North America | 58,825 | 76,080 | (17,255) | (22.7) | |||||||||||||||||||
Europe(b) | 16,272 | 22,979 | (6,707) | (29.2) | |||||||||||||||||||
EMEA – Other | 2,422 | 3,437 | (1,015) | (29.5) | |||||||||||||||||||
Total EMEA | 18,694 | 26,416 | (7,722) | (29.2) | |||||||||||||||||||
Asia Pacific(c) | 8,073 | 8,330 | (257) | (3.1) | |||||||||||||||||||
Asia Pacific – Other | 4,567 | 5,414 | (847) | (15.6) | |||||||||||||||||||
Total Asia Pacific | 12,640 | 13,744 | (1,104) | (8.0) | |||||||||||||||||||
Latin America | 2,992 | 4,757 | (1,765) | (37.1) | |||||||||||||||||||
Worldwide retail sales | 93,151 | 120,997 | (27,846) | (23.0) |
Six months ended | |||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | Decrease | % Change | ||||||||||||||||||||
United States(b) | 127,360 | 144,623 | (17,263) | (11.9) | % | ||||||||||||||||||
Europe(c) | 220,472 | 260,301 | (39,829) | (15.3) | % |
Six months ended | |||||||||||||||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | Unit | Unit | ||||||||||||||||||||||||||||||||
Units | Mix % | Units | Mix % | Decrease | % Change | ||||||||||||||||||||||||||||||
U.S. motorcycle shipments | 44,075 | 54.2 | % | 75,909 | 59.5 | % | (31,834) | (41.9) | % | ||||||||||||||||||||||||||
Worldwide motorcycle shipments: | |||||||||||||||||||||||||||||||||||
Touring motorcycle units | 31,306 | 38.5 | % | 55,966 | 43.8 | % | (24,660) | (44.1) | % | ||||||||||||||||||||||||||
Cruiser motorcycle units(a) | 32,005 | 39.3 | % | 43,142 | 33.8 | % | (11,137) | (25.8) | |||||||||||||||||||||||||||
Sportster® / Street motorcycle units | 18,031 | 22.2 | % | 28,540 | 22.4 | % | (10,509) | (36.8) | |||||||||||||||||||||||||||
81,342 | 100.0 | % | 127,648 | 100.0 | % | (46,306) | (36.3) | % |
Six months ended | |||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | (Decrease) Increase | % Change | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles | $ | 1,346,103 | $ | 2,092,638 | $ | (746,535) | (35.7) | % | |||||||||||||||
Parts & accessories | 303,393 | 380,961 | (77,568) | (20.4) | |||||||||||||||||||
General merchandise | 86,965 | 120,045 | (33,080) | (27.6) | |||||||||||||||||||
Licensing | 12,932 | 18,488 | (5,556) | (30.1) | |||||||||||||||||||
Other | 19,669 | 17,509 | 2,160 | 12.3 | |||||||||||||||||||
1,769,062 | 2,629,641 | (860,579) | (32.7) | ||||||||||||||||||||
Cost of goods sold | 1,342,514 | 1,827,464 | (484,950) | (26.5) | |||||||||||||||||||
Gross profit | 426,548 | 802,177 | (375,629) | (46.8) | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling & administrative expense | 327,506 | 385,469 | (57,963) | (15.0) | |||||||||||||||||||
Engineering expense | 94,494 | 103,546 | (9,052) | (8.7) | |||||||||||||||||||
Restructuring expense | 41,005 | 24,053 | 16,952 | 70.5 | |||||||||||||||||||
463,005 | 513,068 | (50,063) | (9.8) | ||||||||||||||||||||
Operating (loss) income | $ | (36,457) | $ | 289,109 | $ | (325,566) | (112.6) | % | |||||||||||||||
Operating margin | (2.1) | % | 11.0 | % | (13.1) | pts. |
Net Revenue | Cost of Goods Sold | Gross Profit | |||||||||||||||
Six months ended June 30, 2019 | $ | 2,629.6 | $ | 1,827.5 | $ | 802.1 | |||||||||||
Volume | (859.7) | (568.8) | (290.9) | ||||||||||||||
Price, net of related costs | 14.0 | 7.2 | 6.8 | ||||||||||||||
Foreign currency exchange rates and hedging | (21.0) | 5.2 | (26.2) | ||||||||||||||
Shipment mix | 6.1 | 25.8 | (19.7) | ||||||||||||||
Raw material prices | — | (3.9) | 3.9 | ||||||||||||||
Manufacturing and other costs | — | 49.5 | (49.5) | ||||||||||||||
(860.6) | (485.0) | (375.6) | |||||||||||||||
Six months ended June 28, 2020 | $ | 1,769.0 | $ | 1,342.5 | $ | 426.5 |
Six months ended | |||||||||||||||||||||||
June 28, 2020 | June 30, 2019 | Increase (Decrease) | % Change | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Interest income | $ | 338,262 | $ | 326,881 | $ | 11,381 | 3.5 | % | |||||||||||||||
Other income | 56,147 | 60,477 | (4,330) | (7.2) | |||||||||||||||||||
394,409 | 387,358 | 7,051 | 1.8 | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Interest expense | 114,660 | 104,997 | 9,663 | 9.2 | |||||||||||||||||||
Provision for credit losses | 170,598 | 60,874 | 109,724 | 180.2 | |||||||||||||||||||
Operating expense | 80,336 | 87,227 | (6,891) | (7.9) | |||||||||||||||||||
Restructuring expense | 944 | — | 944 | 100.0 | |||||||||||||||||||
366,538 | 253,098 | 113,440 | 44.8 | ||||||||||||||||||||
Operating income | $ | 27,871 | $ | 134,260 | $ | (106,389) | (79.2) | % |
Six months ended | |||||||||||
June 28, 2020 | June 30, 2019 | ||||||||||
Balance, beginning of period | $ | 198,581 | $ | 189,885 | |||||||
Cumulative effect of change in accounting(a) | 100,604 | — | |||||||||
Provision for credit losses | 170,598 | 60,874 | |||||||||
Charge-offs, net of recoveries | (58,768) | (55,763) | |||||||||
Balance, end of period | $ | 411,015 | $ | 194,996 |
2020 | 2021-2022 | 2023-2024 | Thereafter | Total | |||||||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||
Principal payments on debt | $ | 1,934,840 | $ | 3,983,513 | $ | 2,890,690 | $ | 1,450,000 | $ | 10,259,043 | |||||||||||||||||||
Interest payments on debt | 146,642 | 417,167 | 209,542 | 321,280 | 1,094,631 | ||||||||||||||||||||||||
$ | 2,081,482 | $ | 4,400,680 | $ | 3,100,232 | $ | 1,771,280 | $ | 11,353,674 |
June 28, 2020 | |||||
Cash and cash equivalents | $ | 3,856,597 | |||
Availability under credit and conduit facilities: | |||||
Credit facilities | 217,612 | ||||
Asset-backed U.S. commercial paper conduit facilities(a) | 600,000 | ||||
Asset-backed Canadian commercial paper conduit facility(a) | 16,601 | ||||
$ | 4,690,810 |
Short-Term | Long-Term | Outlook | |||||||||||||||
Moody’s | P2 | Baa2 | Negative | ||||||||||||||
Standard & Poor’s | A2 | BBB | Negative | ||||||||||||||
Fitch | F2 | A- | Negative |
Six months ended | |||||||||||
June 28, 2020 | June 30, 2019 | ||||||||||
Net cash provided by operating activities | $ | 610,203 | $ | 496,232 | |||||||
Net cash used by investing activities | (151,278) | (364,575) | |||||||||
Net cash provided (used) by financing activities | 2,703,637 | (380,946) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (382) | 3,439 | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 3,162,180 | $ | (245,850) |
June 28, 2020 | June 30, 2019 | ||||||||||
Unsecured commercial paper | $ | 1,397,388 | $ | 405,695 | |||||||
Asset-backed Canadian commercial paper conduit facility | 144,661 | 148,740 | |||||||||
Asset-backed U.S. commercial paper conduit facilities | 540,840 | 464,136 | |||||||||
Asset-backed securitization debt, net | 2,461,107 | 1,002,869 | |||||||||
Medium-term notes, net | 4,784,293 | 4,687,660 | |||||||||
364-day credit facility borrowings | 150,000 | — | |||||||||
Senior notes, net | 743,635 | 742,959 | |||||||||
$ | 10,221,924 | $ | 7,452,059 |
Principal Amount | Rate | Issue Date | Maturity Date | |||||||||||||||||
$600,000 | 2.85% | January 2016 | January 2021 | |||||||||||||||||
$450,000 | LIBOR + 0.94% | November 2018 | March 2021 | |||||||||||||||||
$350,000 | 3.55% | May 2018 | May 2021 | |||||||||||||||||
$550,000 | 4.05% | February 2019 | February 2022 | |||||||||||||||||
$400,000 | 2.55% | June 2017 | June 2022 | |||||||||||||||||
$350,000 | 3.35% | February 2018 | February 2023 | |||||||||||||||||
$729,885(a) | 4.94% | May 2020 | May 2023 | |||||||||||||||||
$673,740(b) | 3.14% | November 2019 | November 2024 | |||||||||||||||||
$700,000 | 3.35% | June 2020 | June 2025 |
2020 | 2019 | ||||||||||||||||||||||
Transfers | Proceeds | Transfers | Proceeds | ||||||||||||||||||||
First quarter | $ | 77,900 | $ | 61,600 | $ | — | $ | — | |||||||||||||||
Second quarter | — | — | 28,200 | 23,400 | |||||||||||||||||||
$ | 77,900 | $ | 61,600 | $ | 28,200 | $ | 23,400 |
2020 | 2019 | ||||||||||||||||||||||
Transfers | Proceeds | Transfers | Proceeds | ||||||||||||||||||||
First quarter | $ | 195,300 | $ | 163,600 | $ | — | $ | — | |||||||||||||||
Second quarter | — | — | — | — | |||||||||||||||||||
$ | 195,300 | $ | 163,600 | $ | — | $ | — |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Transfers | Proceeds | Proceeds, net | Transfers | Proceeds | Proceeds, net | ||||||||||||||||||||||||||||||
First quarter | $ | 580,200 | $ | 525,000 | $ | 522,700 | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Second quarter | 1,840,500 | 1,550,200 | 1,541,800 | 1,120,000 | 1,025,000 | 1,021,300 | |||||||||||||||||||||||||||||
$ | 2,420,700 | $ | 2,075,200 | $ | 2,064,500 | $ | 1,120,000 | $ | 1,025,000 | $ | 1,021,300 |
2020 Fiscal Month | Total Number of Shares Purchased(a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
March 30 to April 3 | 1,621 | $ | 18 | 1,621 | 18,246,721 | |||||||||||||||||||||
April 4 to May 31 | 1,764 | $ | 21 | 1,764 | 18,246,721 | |||||||||||||||||||||
June 1 to June 28 | 758 | $ | 25 | 758 | 18,246,721 | |||||||||||||||||||||
4,143 | $ | 20 | 4,143 |
Exhibit No. | Description | |||||||
Fiscal Agency Agreement, dated May 19, 2020, relating to the 3.875% Medium Term Notes due May 2023, among certain subsidiaries of the Company, The Bank of New York Mellon, London Branch and The Bank of New York Mellon SA/NV, Luxembourg Branch | ||||||||
Officers' Certificate, dated June 8, 2020, pursuant to Sections 102 and 301 of the Indenture, dated March 4, 2011, with the form of 3.350% Medium-Term Notes due 2025 | ||||||||
364-Day Credit Agreement, dated June 1, 2020, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto, and Toronto Dominion (Texas) LLC., as, global administrative agent | ||||||||
Harley-Davidson, Inc. 2020 Incentive Stock Plan (incorporated herein by reference to Appendix A to the Company’s definitive proxy statement on Schedule 14A for the Company’s Annual Meeting of Shareholders held on May 21, 2020 filed on April 9, 2020 (File No. 1-9183)) | ||||||||
Chief Executive Officer Certification pursuant to Rule 13a-14(a) | ||||||||
Chief Financial Officer Certification pursuant to Rule 13a-14(a) | ||||||||
Written Statement of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. §1350 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - formatted in Inline XBRL and contained in Exhibit 101 |
HARLEY-DAVIDSON, INC. | |||||
Date: August 6, 2020 | /s/ J. Darrell Thomas | ||||
J. Darrell Thomas | |||||
Vice President and Treasurer | |||||
Interim Chief Financial Officer | |||||
(Principal financial officer) |
Date: August 6, 2020 | /s/ Mark R. Kornetzke | ||||
Mark R. Kornetzke | |||||
Chief Accounting Officer | |||||
(Principal accounting officer) |
Dated 19 May 2020 | ||
HARLEY-DAVIDSON FINANCIAL SERVICES, INC. as Issuer and Harley-Davidson Credit corp. as Guarantor and THE BANK OF NEW YORK MELLON, LONDON BRANCH as Fiscal Agent and Transfer Agent, and THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH as Registrar FISCAL AGENCY AGREEMENT relating to Euro 650,000,000 3.875 per cent. Guaranteed Notes due 2023 |
1 Interpretation | |||||
2 Appointment | |||||
3 Issue of Notes | |||||
4 Payment | |||||
5 Repayment | |||||
6 Early Redemption and Exercise of Options | |||||
7 Cancellation, Destruction, Records and Reporting Requirements | |||||
8 Replacement Certificates | |||||
9 Additional Duties of the Transfer Agent | |||||
10 Additional Duties of the Registrar | |||||
11 Information and Regulations Concerning the Notes | |||||
12 Documents and Forms | |||||
13 Fees and Expenses | |||||
14 Indemnity | |||||
15 General | |||||
16 Changes in Agents | |||||
17 Communications | |||||
18 Notices | |||||
19 Governing Law and Jurisdiction | |||||
Schedule 1 Part A Form of Global Certificate | |||||
Schedule 1 Part B Form of Individual Certificate | |||||
Schedule 2 Terms and Conditions of the Notes | |||||
Schedule 3 Provisions for Meetings of Noteholders | |||||
Schedule 4 Regulations Concerning the Transfer and Registration of Notes | |||||
Schedule 5 Form of Exercise Notice for Change of Control Put Option |
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Registered Holder: | |||||
Address of Registered Holder: | |||||
Principal amount of Notes represented by this Global Certificate: |
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Dated: | |||||
Signed: | Certifying Signature: |
Registered Holder: | |||||
Address of Registered Holder: | |||||
Principal amount of Notes represented by this Certificate: |
Dated: [●] | |||||
Signed: | Certifying Signature: |
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a.Moody's Rating | Percentage rate interest increase on the Notes | ||||
Ba1 | 0.250% | ||||
Ba2 | 0.500% | ||||
Ba3 | 0.750% | ||||
B1 or below | 1.000% | ||||
(•)*Including the equivalent ratings, in either case of any replacement Rating Agency or under any successor rating categories of Moody's. |
a.S&P's Rating | Percentage rate interest increase on the Notes | ||||
BB+ | 0.250% | ||||
BB | 0.500% | ||||
BB- | 0.750% | ||||
B+ or below | 1.000% | ||||
a.*Including the equivalent ratings, in either case of any replacement Rating Agency or under any successor rating categories of S&P's. |
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Purpose of meeting | Required proportion at any meeting except one referred to in column 3 | Required proportion at any meeting previously adjourned through want of a quorum | ||||||
To pass a special quorum resolution | Not less than two thirds | Not less than 25 per cent. | ||||||
To pass any other Extraordinary Resolution | More than 50 per cent. | No minimum proportion | ||||||
Any other purpose | Not less than 10 per cent. | No minimum proportion |
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Bank: | [●] | ||||
Branch Address: | [●] | ||||
Branch Code: | [●] | ||||
Account Number: | [●] | ||||
Account Name: | [●] |
Signature of holder: | Certifying signature (2): |
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SIGNATURE PAGE TO THE FISCAL AGENCY AGREEMENT |
SIGNATURE PAGE TO THE FISCAL AGENCY AGREEMENT |
SIGNATURE PAGE TO THE FISCAL AGENCY AGREEMENT |
Issue Price: 99.863% | Maturity Date: June 8, 2025 | ||||
Original Issue Date: June 8, 2020 | Index Maturity: | ||||
[ ] Original Issue Discount Note | |||||
Total Amount of OID: | |||||
Yield to Maturity: % | |||||
Initial Accrual Period OID: | |||||
[X] Fixed Rate | |||||
Interest Rate: 3.350% | |||||
[ ] Floating Rate | |||||
Interest Rate Basis: | |||||
___ CD Rate | Specified Currency (if other than U.S. dollars): N/A | ||||
___ CMT Rate [ ] CMT Reuters Page FRBCMT: | |||||
[ ] CMT Reuters Page FEDCMT: | Option To Receive Payments In Specified Currency (non-U.S. dollar denominated Note): N/A | ||||
___ Commercial Paper Rate | |||||
___ Federal Funds Rate | |||||
___ LIBOR | Authorized Denomination: Minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof | ||||
___ Prime Rate | Place of Payment (if other than as set forth in the Indenture): N/A | ||||
___ Treasury Rate | |||||
___ Other | |||||
Spread (Plus Or Minus): | Initial Redemption Date: | ||||
Initial Redemption Percentage: | |||||
Annual Redemption Percentage Reduction: | |||||
Repayment Date: | |||||
Spread Multiplier: % | Renewable: [ ] Yes [ ] No | ||||
Extendible: [ ] Yes [ ] No | |||||
Interest Category: |
[ ] Regular Floating Rate Note | Final Maturity Date: | ||||
[ ] Floating Rate/Fixed Rate Note Fixed Rate Commencement Date: | |||||
Fixed Interest Rate: % | |||||
[ ] Inverse Floating Rate Note | Initial Interest Rate: | ||||
Initial Interest Reset Date: | Maximum Interest Rate: % | ||||
Interest Reset Dates: | Minimum Interest Rate: % | ||||
Interest Payment Dates (in the case of a Floating Rate Note and, in the case of a Fixed Rate Note, other than as set forth below): N/A | |||||
Regular Record Dates (if other than as set forth below): N/A | |||||
Interest Determination Dates (if other than as set forth below): N/A | |||||
Additional Amounts applicable for Company: | |||||
[ ] Yes | |||||
[X] No | |||||
Additional Amounts applicable for Guarantor: | |||||
[ ] Yes | |||||
[X] No | |||||
Addendum Attached | Other Provisions: The interest rate adjustment provisions described below under “Interest Rate Adjustment Based on Certain Rating Events” and optional redemption provisions described below shall apply to the Note. | ||||
[ ] Yes | |||||
[X] No | |||||
Authorized Denomination (only if non-U.S. dollar denominated Note): N/A | |||||
Calculation Agent (if other than the Trustee): N/A | |||||
Interest Payment Period: N/A |
Money market yield = | D x 360 | x 100 | ||||||
360 - (D x M) |
Bond Equivalent Yield = | D x N | x 100 | ||||||
360 - (D x M) |
Moody’s Rating* | Percentage rate interest increase on this Note | ||||
Ba1 | 0.250% | ||||
Ba2 | 0.500% | ||||
Ba3 | 0.750% | ||||
B1 or below | 1.000% | ||||
*Including the equivalent ratings, in the case of either any replacement Rating Agency or under any successor rating categories of Moody’s. |
S&P Rating* | Percentage rate interest increase on this Note | ||||
BB+ | 0.250% | ||||
BB | 0.500% | ||||
BB- | 0.750% | ||||
B+ or below | 1.000% | ||||
*Including the equivalent ratings, in the case of either any replacement Rating Agency or under any successor rating categories of S&P. |
Dated: June 8, 2020 | |||||
HARLEY-DAVIDSON CREDIT CORP., | |||||
a Nevada corporation | |||||
By: /s/ James Darrell Thomas Name: James Darrell Thomas Title: Vice President, Chief Financial Officer and Treasurer | |||||
Attest: | |||||
By: /s/ Perry A. Glassgow Name: Perry A. Glassgow Title: Vice President and Assistant Secretary |
TEN COM - as tenants in common | UNIF GIFT MIN ACT - _______ Custodian ______ (Cust) (Minor) | ||||
TEN ENT - as tenants by the entireties | under Uniform Gifts to Minors Act | ||||
JT TEN - as joint tenants with right of survivorship and not as tenant in common | (State) |
Dated: | |||||
NOTICE: The signature to this assignment must correspond with the name as it appears upon the within Note in every particular, without alteration or enlargement or any change whatever and must be guaranteed. |
Date of Exchange | Amount of increase in Principal Amount of this Global Note | Amount of decrease in Principal Amount of this Global Note | Principal Amount of this Global Note following each decrease or increase | Signature of authorized signatory of Trustee | ||||||||||
Issue Price: 99.863% | Maturity Date: June 8, 2025 | ||||
Original Issue Date: June 8, 2020 | Index Maturity: | ||||
[ ] Original Issue Discount Note | |||||
Total Amount of OID: | |||||
Yield to Maturity: % | |||||
Initial Accrual Period OID: | |||||
[X] Fixed Rate | |||||
Interest Rate: 3.350% | |||||
[ ] Floating Rate | |||||
Interest Rate Basis: | |||||
___ CD Rate | Specified Currency (if other than U.S. dollars): N/A | ||||
___ CMT Rate [ ] CMT Reuters Page FRBCMT: | |||||
[ ] CMT Reuters Page FEDCMT: | Option To Receive Payments In Specified Currency (non-U.S. dollar denominated Note): N/A | ||||
___ Commercial Paper Rate | |||||
___ Federal Funds Rate | |||||
___ LIBOR | Authorized Denomination: Minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof | ||||
___ Prime Rate | Place of Payment (if other than as set forth in the Indenture): N/A | ||||
___ Treasury Rate | |||||
___ Other | |||||
Spread (Plus Or Minus): | Initial Redemption Date: | ||||
Initial Redemption Percentage: | |||||
Annual Redemption Percentage Reduction: |
Repayment Date: | |||||
Spread Multiplier: % | Renewable: [ ] Yes [ ] No | ||||
Extendible: [ ] Yes [ ] No | |||||
Interest Category: | |||||
[ ] Regular Floating Rate Note | Final Maturity Date: | ||||
[ ] Floating Rate/Fixed Rate Note Fixed Rate Commencement Date: | |||||
Fixed Interest Rate: % | |||||
[ ] Inverse Floating Rate Note | Initial Interest Rate: | ||||
Initial Interest Reset Date: | Maximum Interest Rate: % | ||||
Interest Reset Dates: | Minimum Interest Rate: % | ||||
Interest Payment Dates (in the case of a Floating Rate Note and, in the case of a Fixed Rate Note, other than as set forth below): N/A | |||||
Regular Record Dates (if other than as set forth below): N/A | |||||
Interest Determination Dates (if other than as set forth below): N/A | |||||
Additional Amounts applicable for Company: | |||||
[ ] Yes | |||||
[X] No | |||||
Additional Amounts applicable for Guarantor: | |||||
[ ] Yes | |||||
[X] No | |||||
Addendum Attached | Other Provisions: The interest rate adjustment provisions described below under “Interest Rate Adjustment Based on Certain Rating Events” and optional redemption provisions described below shall apply to the Note. | ||||
[ ] Yes | |||||
[X] No | |||||
Authorized Denomination (only if non-U.S. dollar denominated Note): N/A | |||||
Calculation Agent (if other than the Trustee): N/A | |||||
Interest Payment Period: N/A |
Money market yield = | D x 360 | x 100 | ||||||
360 - (D x M) |
Bond Equivalent Yield = | D x N | x 100 | ||||||
360 - (D x M) |
Moody’s Rating* | Percentage rate interest increase on this Note | ||||
Ba1 | 0.250% | ||||
Ba2 | 0.500% | ||||
Ba3 | 0.750% | ||||
B1 or below | 1.000% | ||||
*Including the equivalent ratings, in the case of either any replacement Rating Agency or under any successor rating categories of Moody’s. |
S&P Rating* | Percentage rate interest increase on this Note | ||||
BB+ | 0.250% | ||||
BB | 0.500% | ||||
BB- | 0.750% | ||||
B+ or below | 1.000% | ||||
*Including the equivalent ratings, in the case of either any replacement Rating Agency or under any successor rating categories of S&P. |
Dated: June 8, 2020 | |||||
HARLEY-DAVIDSON CREDIT CORP., | |||||
a Nevada corporation | |||||
By: /s/ James Darrell Thomas Name: James Darrell Thomas Title: Vice President, Chief Financial Officer and Treasurer | |||||
Attest: | |||||
By: /s/ Perry A. Glassgow Name: Perry A. Glassgow Title: Vice President and Assistant Secretary |
TEN COM - as tenants in common | UNIF GIFT MIN ACT - _______ Custodian ______ (Cust) (Minor) | ||||
TEN ENT - as tenants by the entireties | under Uniform Gifts to Minors Act | ||||
JT TEN - as joint tenants with right of survivorship and not as tenant in common | (State) |
Dated: | |||||
NOTICE: The signature to this assignment must correspond with the name as it appears upon the within Note in every particular, without alteration or enlargement or any change whatever and must be guaranteed. |
Date of Exchange | Amount of increase in Principal Amount of this Global Note | Amount of decrease in Principal Amount of this Global Note | Principal Amount of this Global Note following each decrease or increase | Signature of authorized signatory of Trustee | ||||||||||
Issue Price: 99.863% | Maturity Date: June 8, 2025 | ||||
Original Issue Date: June 8, 2020 | Index Maturity: | ||||
[ ] Original Issue Discount Note | |||||
Total Amount of OID: | |||||
Yield to Maturity: % | |||||
Initial Accrual Period OID: | |||||
[X] Fixed Rate | |||||
Interest Rate: 3.350% | |||||
[ ] Floating Rate | |||||
Interest Rate Basis: | |||||
___ CD Rate | Specified Currency (if other than U.S. dollars): N/A | ||||
___ CMT Rate [ ] CMT Reuters Page FRBCMT: | |||||
[ ] CMT Reuters Page FEDCMT: | Option To Receive Payments In Specified Currency (non-U.S. dollar denominated Note): N/A | ||||
___ Commercial Paper Rate | |||||
___ Federal Funds Rate | |||||
___ LIBOR | Authorized Denomination: Minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof | ||||
___ Prime Rate | Place of Payment (if other than as set forth in the Indenture): N/A | ||||
___ Treasury Rate | |||||
___ Other | |||||
Spread (Plus Or Minus): | Initial Redemption Date: | ||||
Initial Redemption Percentage: |
Annual Redemption Percentage Reduction: | |||||
Repayment Date: | |||||
Spread Multiplier: % | Renewable: [ ] Yes [ ] No | ||||
Extendible: [ ] Yes [ ] No | |||||
Interest Category: | |||||
[ ] Regular Floating Rate Note | Final Maturity Date: | ||||
[ ] Floating Rate/Fixed Rate Note Fixed Rate Commencement Date: | |||||
Fixed Interest Rate: % | |||||
[ ] Inverse Floating Rate Note | Initial Interest Rate: | ||||
Initial Interest Reset Date: | Maximum Interest Rate: % | ||||
Interest Reset Dates: | Minimum Interest Rate: % | ||||
Interest Payment Dates (in the case of a Floating Rate Note and, in the case of a Fixed Rate Note, other than as set forth below): N/A | |||||
Regular Record Dates (if other than as set forth below): N/A | |||||
Interest Determination Dates (if other than as set forth below): N/A | |||||
Additional Amounts applicable for Company: | |||||
[ ] Yes | |||||
[X] No | |||||
Additional Amounts applicable for Guarantor: | |||||
[ ] Yes | |||||
[X] No | |||||
Addendum Attached | Other Provisions: The interest rate adjustment provisions described below under “Interest Rate Adjustment Based on Certain Rating Events” and optional redemption provisions described below shall apply to the Note. | ||||
[ ] Yes | |||||
[X] No | |||||
Authorized Denomination (only if non-U.S. dollar denominated Note): N/A | |||||
Calculation Agent (if other than the Trustee): N/A | |||||
Interest Payment Period: N/A |
Money market yield = | D x 360 | x 100 | ||||||
360 - (D x M) |
Bond Equivalent Yield = | D x N | x 100 | ||||||
360 - (D x M) |
Moody’s Rating* | Percentage rate interest increase on this Note | ||||
Ba1 | 0.250% | ||||
Ba2 | 0.500% | ||||
Ba3 | 0.750% | ||||
B1 or below | 1.000% | ||||
*Including the equivalent ratings, in the case of either any replacement Rating Agency or under any successor rating categories of Moody’s. |
S&P Rating* | Percentage rate interest increase on this Note | ||||
BB+ | 0.250% | ||||
BB | 0.500% | ||||
BB- | 0.750% | ||||
B+ or below | 1.000% | ||||
*Including the equivalent ratings, in the case of either any replacement Rating Agency or under any successor rating categories of S&P. |
Dated: June 8, 2020 | |||||
HARLEY-DAVIDSON CREDIT CORP., | |||||
a Nevada corporation | |||||
By: /s/ James Darrell Thomas Name: James Darrell ThomasTitle: Vice President, Chief Financial Officer and Treasurer | |||||
Attest: | |||||
By: /s/ Perry A. Glassgow Name: Perry A. Glassgow Title: Vice President and Assistant Secretary |
TEN COM - as tenants in common | UNIF GIFT MIN ACT - _______ Custodian ______ (Cust) (Minor) | ||||
TEN ENT - as tenants by the entireties | under Uniform Gifts to Minors Act | ||||
JT TEN - as joint tenants with right of survivorship and not as tenant in common | (State) |
Dated: | |||||
NOTICE: The signature to this assignment must correspond with the name as it appears upon the within Note in every particular, without alteration or enlargement or any change whatever and must be guaranteed. |
Date of Exchange | Amount of increase in Principal Amount of this Global Note | Amount of decrease in Principal Amount of this Global Note | Principal Amount of this Global Note following each decrease or increase | Signature of authorized signatory of Trustee | ||||||||||
ARTICLE I DEFINITIONS | |||||
1.1 Certain Defined Terms | |||||
ARTICLE II THE CREDITS | |||||
2.1 Syndicated Global Loans | |||||
2.2 [Intentionally Omitted] | |||||
2.3 Optional Payments of Loans | |||||
2.4 Reduction of Commitments | |||||
2.5 Method of Borrowing Syndicated Global Advances | |||||
2.6 Method of Selecting Types and Interest Periods for Syndicated Global Advances; Determination of Applicable Margins. | |||||
2.7 Minimum Amount of Each Syndicated Global Advance | |||||
2.8 Method of Selecting Types and Interest Periods for Conversion and Continuation of Syndicated Global Advances | |||||
2.9 [Reserved] | |||||
2.10 The Bid Rate Advances | |||||
2.11 Default Rate | |||||
2.12 Method of Payment | |||||
2.13 Notes, Telephonic Notices | |||||
2.14 Promise to Pay; Interest and Fees; Interest Payment Dates; Interest and Fee Basis; Loan Accounts | |||||
2.15 Notification of Advances, Interest Rates, Prepayments and Aggregate Commitment Reductions | |||||
2.16 Lending Installations | |||||
2.17 Non-Receipt of Funds by the Global Administrative Agent | |||||
2.18 Termination Date | |||||
ARTICLE III CHANGE IN CIRCUMSTANCES | |||||
3.1 Yield Protection | |||||
3.2 Changes in Capital Adequacy Regulations | |||||
3.3 Availability of Types of Advances | |||||
3.4 Funding Indemnification | |||||
3.5 Taxes | |||||
3.6 Mitigation; Lender Statements; Survival of Indemnity | |||||
3.7 [Reserved] | |||||
3.8 Replacement of Affected Lenders | |||||
3.9 Removal of Lenders | |||||
ARTICLE IV CONDITIONS PRECEDENT | |||||
4.1 Initial Loans | |||||
4.2 Each Loan |
ARTICLE V REPRESENTATIONS AND WARRANTIES | |||||
5.1 Representations and Warranties | |||||
ARTICLE VI COVENANTS | |||||
6.1 Affirmative Covenants | |||||
6.2 Negative Covenants | |||||
6.3 Financial Covenants | |||||
ARTICLE VII DEFAULTS | |||||
7.1 Defaults | |||||
ARTICLE VIII ACCELERATION, DEFAULTING LENDERS; WAIVERS, AMENDMENTS AND REMEDIES | |||||
8.1 Remedies. | |||||
8.2 Defaulting Lender | |||||
8.3 Amendments | |||||
8.4 Preservation of Rights | |||||
ARTICLE IX GENERAL PROVISIONS | |||||
9.1 Survival of Representations | |||||
9.2 Governmental Regulation | |||||
9.3 Headings | |||||
9.4 Entire Agreement | |||||
9.5 Several Obligations; Benefits of this Agreement | |||||
9.6 Expenses; Indemnification | |||||
9.7 Numbers of Documents | |||||
9.8 Accounting | |||||
9.9 Severability of Provisions | |||||
9.10 Nonliability of Lenders | |||||
9.11 CHOICE OF LAW AND SUBMISSION TO JURISDICTION | |||||
9.12 WAIVER OF JURY TRIAL | |||||
9.13 No Strict Construction | |||||
9.14 USA PATRIOT ACT | |||||
9.15 Service of Process | |||||
9.16 Acknowledgement and Consent to Bail-In of Affected Financial Institutions | |||||
9.17 Certain Calculations | |||||
9.18 [Intentionally Omitted | |||||
9.19 LLC Division | |||||
9.20 Interest Rates; LIBOR Notification | |||||
9.21 Acknowledgement Regarding Any Supported QFCs | |||||
ARTICLE X THE GLOBAL ADMINISTRATIVE AGENT | |||||
10.1 Appointment; Nature of Relationship | |||||
10.2 Powers | |||||
10.3 General Immunity | |||||
10.4 No Responsibility for Loans, Creditworthiness, Recitals, Etc |
10.5 Action on Instructions of Lenders | |||||
10.6 Employment of the Global Administrative Agent and Counsel | |||||
10.7 Reliance on Documents; Counsel | |||||
10.8 The Global Administrative Agent’s Reimbursement and Indemnification | |||||
10.9 Rights as a Lender | |||||
10.10 Lender Credit Decision | |||||
10.11 Successor Global Administrative Agent | |||||
10.12 Co-Agents, Documentation Agent, Syndication Agent, etc | |||||
10.13 Certain ERISA Matters | |||||
ARTICLE XI SETOFF; RATABLE PAYMENTS | |||||
11.1 Setoff | |||||
11.2 Ratable Payments | |||||
ARTICLE XII GUARANTEE | |||||
ARTICLE XIII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS | |||||
13.1 Successors and Assigns | |||||
13.2 Participations. | |||||
13.3 Assignments. | |||||
13.4 Confidentiality | |||||
13.5 Dissemination of Information | |||||
13.6 Non-Use of HDFS’ Licensed Marks | |||||
ARTICLE XIV NOTICES | |||||
14.1 Giving Notice | |||||
14.2 Change of Address | |||||
ARTICLE XV COUNTERPARTS | |||||
15.1 Counterparts; Effectiveness; Electronic Execution |
Applicable Margin and Applicable Commitment Fee Rate | Level I | Level II | Level III | ||||||||
Applicable Margin | 2.00% | 2.25% | 2.50% | ||||||||
Applicable Commitment Fee Rate | 0.30% | 0.35% | 0.40% |
HARLEY-DAVIDSON, INC., as a U.S. Borrower | ||
By: /s/ J. Darrell Thomas Name: J. Darrell Thomas Title: Vice President and Treasurer | ||
Address: Harley-Davidson, Inc. 3700 West Juneau Avenue Milwaukee, Wisconsin 53208 Attention: J. Darrell Thomas, Vice President and Treasurer Telephone No.: (414) 343-7863 Facsimile No.: (414) 343-4990 with copy to (in the case of a notice of Default): Harley-Davidson, Inc. 3700 West Juneau Avenue Milwaukee, Wisconsin 53208 Attention: Paul J. Krause, Chief Legal Officer, Chief Compliance Officer and Secretary Telephone No.: (414) 339-6063 Facsimile No.: (414) 343-4189 |
HARLEY-DAVIDSON FINANCIAL SERVICES, INC., as a U.S. Borrower | ||
By: /s/ J. Darrell Thomas Name: J. Darrell Thomas Title: Vice President, Chief Financial Officer and Treasurer | ||
Address: 3700 West Juneau Avenue Milwaukee, Wisconsin 53208 Attention: J. Darrell Thomas, Vice President, Chief Financial Officer and Treasurer Telephone No.: (414) 343-7863 Facsimile No.: (414) 343-4990 |
HARLEY-DAVIDSON CREDIT CORP., as the Guarantor | ||
By: /s/ J. Darrell Thomas Name: J. Darrell Thomas Title: Vice President, Chief Financial Officer and Treasurer | ||
Address: 3700 West Juneau Avenue Milwaukee, Wisconsin 53208 Attention: J. Darrell Thomas, Vice President, Chief Financial Officer, Treasurer and Assistant Secretary Telephone No.: (414) 343-7863 Facsimile No.: (414) 343-4990 |
TORONTO DOMINION (TEXAS) LLC, as the Global Administrative Agent | ||
By: /s/ Angela Del Duca Name: Angela Del Duca Title: Authorized Signatory | ||
Address: Agency Management 222 Bay Street 15th Floor Toronto, Ontario M5K 1A2 Canada Attention: Agency Administration Facsimile No.: (416) 982-5535 In the case of a notification of the DQ List: TDSAgencyAdmin@tdsecurities.com |
THE TORONTO-DOMINION BANK, NEW YORK BRANCH, as a Lender | ||
By: /s/ Angela Del Duca Name: Angela Del Duca Title: Authorized Signatory | ||
Address: 31 West 52nd Street, 19th Floor New York, New York 10019 Attention: N/A Telephone No.: N/A Facsimile No.: 212-827-7232 |
MUFG UNION BANK, N.A., as a Syndication Agent and as a Lender | ||
By: /s/ John Margetanski Name: John Margetanski Title: Authorized Signatory | ||
Address: 1221 Avenue of the Americas, 7th Floor New York, NY 10020 Attention: John Margetanski Telephone No.: (212) 782-4168 Facsimile No.: N/A |
U.S. BANK NATIONAL ASSOCIATION, as a Syndication Agent and as a Lender | ||
By: /s/ William Barnum Name: William Barnum Title: Senior Vice President | ||
Address: 1095 Avenue of the Americas EX-NY-BP15 New York, NY 10036 Attention: William Barnum Telephone No.: 347-421-3695 Facsimile No.: 646-935-4552 | ||
BARCLAYS BANK PLC, as a Documentation Agent and as a Lender | ||
By: /s/ Craig Malloy Name: Craig Malloy Title: Director | ||
Address: 745 Seventh Avenue New York, NY 10019 USA Attention: US Loan Operations Telephone No.: (1) 201 499 0040 Facsimile No.: (1) 972 535 5728 |
MIZUHO BANK, LTD., as a Documentation Agent and as a Lender | ||
By: /s/ Donna DeMagistris Name: Donna DeMagistris Title: Executive Director | ||
Address: 1271 Avenue of the Americas New York, NY 10020 Attention: Emanuel Giumarra Telephone No.: 212-282-4009 Facsimile No.: |
BANK OF AMERICA, N.A., as a Lender | ||
By: /s/ Steven K. Kessler Name: Steven K. Kessler Title: Senior Vice President | ||
Address: 135 S. LaSalle Street IL4-135-04-13 Chicago, IL 60603 Attention: Steven K. Kessler Telephone No.: 312.992.6323 Facsimile No.: 312.453.3346 |
Lender | Commitment | ||||
The Toronto-Dominion Bank, New York Branch | $75,000,000 | ||||
MUFG Union Bank, N.A. | $75,000,000 | ||||
U.S. Bank National Association | $75,000,000 | ||||
Barclays Bank PLC | $50,000,000 | ||||
Mizuho Bank, Ltd. | $50,000,000 | ||||
Bank of America, N.A. | $25,000,000 | ||||
Aggregate Commitment | $350,000,000.00 |
Date | Principal amount and currency of Syndicated Loan | Maturity of Interest Period | Principal Amount Paid | Unpaid Balance | ||||||||||
Date | Principal amount and currency of Bid Rate Loan | Maturity Date of Loan | Interest Rate and Basis for Calculation | Interest Payment Dates | Other Pertinent Terms | Principal Amount Paid | ||||||||||||||
1. | Assignor: | ||||||||||||||||
2. | Assignee: | ||||||||||||||||
[and is an Affiliate/Approved Fund of [identify Lender]]1 | |||||||||||||||||
3. | Borrowers: | Harley-Davidson, Inc. Harley-Davidson Financial Services, Inc. | |||||||||||||||
4. | Global Administrative Agent: | Toronto Dominion (Texas) LLC, as the Global Administrative Agent under the Credit Agreement | |||||||||||||||
5. | Credit Agreement: | The 364-Day Credit Agreement dated as of June 1, 2020 among the Borrowers, Harley-Davidson Credit Corp., the Lenders parties thereto and Toronto Dominion (Texas) LLC, as Global Administrative Agent (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) |
Facility Assigned | Aggregate Amount of Commitment/Loans for all Lenders | Amount of Commitment/Loans Assigned | Percentage Assigned of Commitment/Loans2 | |||||||||||
$ | $ | % | ||||||||||||
$ | $ | % | ||||||||||||
$ | $ | % | ||||||||||||
ASSIGNOR | |||||||||||||||||
[NAME OF ASSIGNOR] | |||||||||||||||||
By: | |||||||||||||||||
Title: | |||||||||||||||||
ASSIGNEE | |||||||||||||||||
[NAME OF ASSIGNEE] | |||||||||||||||||
By: | |||||||||||||||||
Title: | |||||||||||||||||
[Consented to and] Accepted:3 | |||||||||||||||||
TORONTO DOMINION (TEXAS) LLC, as Global Administrative Agent | |||||||||||||||||
By: | |||||||||||||||||
Title: | |||||||||||||||||
[Consented to:]4 | |||||||||||||||||
[HARLEY-DAVIDSON, INC.] | |||||||||||||||||
By: | |||||||||||||||||
Title: |
NAME OF ASSIGNOR | NAME OF ASSIGNEE | ||||
By:_____________________________ Name: Title: | By:_____________________________ Name: Title: |
Acknowledged and consented to by: TORONTO DOMINION (TEXAS) LLC, as Global Administrative Agent | Acknowledged and consented to by: HARLEY-DAVIDSON, INC. | ||||
By:_____________________________ Name: Title: | By:_____________________________ Name: Title: | ||||
Harley-Davidson $350 million Global Credit Facility | ||||||||||||||||||||||||||
Location | Tenor | Notice to Ad Agent | Minimum Amounts Borrowing/Increments | Rate fixing | Screen | Comment | ||||||||||||||||||||
U.S. Borrower – Syndicated Global Loans – US | ||||||||||||||||||||||||||
Toronto Loan & Agency | ||||||||||||||||||||||||||
ABR | overnight | same day/3PM NYT | $5mm/500m | Not Applicable | Not Applicable | |||||||||||||||||||||
Eurodollar | 1 week, 1, 2, 3 or 6 months6 | 3 Business Days/12 noon NYT | $5mm/500m | Not Applicable | Reuters LIBOR01 | NY fixing | ||||||||||||||||||||
JURISDICTION | SECURED PARTY | FILE NUMBER | FILING DATE | SUMMARY COLLATERAL DESCRIPTION | ADDITIONAL FILINGS | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 160006069223 | 05/05/16 | Certain equipment | N/A | ||||||||||||
Wisconsin | Grand Die Engravers, Inc. | 160008046422 | 06/15/16 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 160014237926 | 10/31/16 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 170000136313 | 01/04/17 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 170015023112 | 11/03/17 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 170017439731 | 12/29/17 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 180004543824 | 04/06/18 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 180012228520 | 09/07/18 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 190004670421 | 04/12/19 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die Tech and Engineering, Inc. | 20190809000516-1 | 08/09/19 | Certain equipment | N/A | ||||||||||||
Wisconsin | Die-Tech and Engineering, Inc. | 20200219000893-6 | 02/19/20 | Certain equipment | N/A |
JURISDICTION | SECURED PARTY | FILE NUMBER | FILING DATE | SUMMARY COLLATERAL DESCRIPTION | ADDITIONAL FILINGS | ||||||||||||
Nevada | Harley-Davidson Motorcycle Trust 2015-2; Harley-Davidson Customer Funding Corp.; and The Bank of New York Mellon Trust Company, N.A., as Indenture Trustee | 2015013857-3 | 05/27/15 | (i) All right, title and interest of Debtor in and to the Contracts listed on the List of Contracts in effect on the closing date (including without limitation all security interests and all rights to receive certain payments), (ii) all rights of Debtor to payments which are collected, including liquidation proceeds, (iii) all rights of Debtor under any theft, physical damage, credit life, disability or other individual insurance policy, any debt insurance policy or any debt cancellation agreement relating to any such Contract, an Obligor or a Motorcycle securing such Contract, (iv) all security interests in each such Motorcycle, (v) all documents contained in the related Contract Files, (vi) all rights to certain lockboxes, (vii) all rights under certain dealer agreements, (viii) all of Debtor’s rights to certain rebates and other amounts relating to insurance policies, debt cancellation agreements, extended service contracts and repair agreements, and (ix) all proceeds and products of the foregoing. | N/A |
JURISDICTION | SECURED PARTY | FILE NUMBER | FILING DATE | SUMMARY COLLATERAL DESCRIPTION | ADDITIONAL FILINGS | ||||||||||||
Nevada | TD Securities Inc., as Administrative Agent; Harley-Davidson Warehouse Funding Corp. | 2015034785-5 | 12/16/15 | All Debtor’s right, title and interest in and to the retail installment sale contracts, promissory notes and security agreements and related assets and interests in property purportedly conveyed to Harley-Davidson Warehouse Funding Corp pursuant to that certain Amended and Restated 2015 Receivables Sale Agreement dated as of December 14, 2016. | Amendment # 2016034831-6 filed 12/14/16 amending collateral. | ||||||||||||
Nevada | Harley-Davidson Motorcycle Grantor Trust 2016-A; Harley-Davidson Customer Funding Corp | 2016016884-5 | 06/15/16 | All Debtor’s right, title and interest in and to the Contracts in effect on the closing date (including without limitation all security interests created thereunder), (ii) all rights of Debtor to payments which are collected, including liquidation proceeds, (iii) all rights of Debtor under any theft, physical damage, credit life, disability or other individual insurance policy, any debt insurance policy or any debt cancellation agreement relating to any such Contract, an Obligor or a Motorcycle securing such Contract, (iv) all security interests in each such Motorcycle, (v) all documents contained in the related Contract Files, (vi) all rights to certain lockboxes, (vii) all rights under certain dealer agreements, (viii) all of Debtor’s rights to certain rebates and other amounts relating to insurance policies, debt cancellation agreements, extended service contracts and repair agreements, and (ix) all proceeds and products of the foregoing. | N/A |
JURISDICTION | SECURED PARTY | FILE NUMBER | FILING DATE | SUMMARY COLLATERAL DESCRIPTION | ADDITIONAL FILINGS | ||||||||||||
Nevada | TD Securities Inc., as Administrative Agent; Harley-Davidson Warehouse Funding Corp. | 2016034830-4 | 12/14/16 | All Debtor’s right, title and interest in and to the retail installment sale contracts, promissory notes and security agreements and related assets and interests in property purportedly conveyed to Harley-Davidson Warehouse Funding Corp pursuant to that certain 2016 Receivables Sale Agreement dated as of December 14, 2016. | N/A | ||||||||||||
Nevada | The Bank of New York Mellon Trust Company N.A., as Indenture Trustee; Harley-Davidson Customer Funding Corp.; Harley-Davidson Motorcycle Trust 2019-L | 2019018856-4 | 5/28/19 | (i) All the right, title and interest of Debtor/Seller in and to the Contracts in effect on the closing date (including without limitation all security interests created thereunder), (ii) all rights of Debtor/Seller to payments which are collected, including liquidation proceeds, (iii) all rights of Debtor/Seller under any theft, physical damage, credit life, disability or other individual insurance policy, any debt insurance policy or any debt cancellation agreement relating to any such Contract, an Obligor or a Motorcycle securing such Contract, (iv) all security interests in each such Motorcycle, (v) all documents contained in the related Contract Files, (vi) all rights to certain lockboxes, (vii) all of Debtor/Seller’s rights to certain rebates and other amounts relating to insurance policies, debt cancellation agreements, extended service contracts and repair agreements, and (viii) all proceeds and products of the foregoing. | N/A |
JURISDICTION | SECURED PARTY | FILE NUMBER | FILING DATE | SUMMARY COLLATERAL DESCRIPTION | ADDITIONAL FILINGS | ||||||||||||
Nevada | The Bank of New York Mellon Trust Company, N.A., as Indenture Trustee; Harley-Davidson Customer Funding Corp.; Harley-Davidson Motorcycle Trust 2019-A | 2019022667-9 | 6/26/19 | (i) All the right, title and interest of Debtor/Seller in and to the Contracts in effect on the closing date (including without limitation all security interests created thereunder), (ii) all rights of Debtor/Seller to payments which are collected, including liquidation proceeds, (iii) all rights of Debtor/Seller under any theft, physical damage, credit life, disability or other individual insurance policy, any debt insurance policy or any debt cancellation agreement relating to any such Contract, an Obligor or a Motorcycle securing such Contract, (iv) all security interests in each such Motorcycle, (v) all documents contained in the related Contract Files, (vi) all rights to certain lockboxes, (vii) all of Debtor/Seller’s rights to certain rebates and other amounts relating to insurance policies, debt cancellation agreements, extended service contracts and repair agreements, and (viii) all proceeds and products of the foregoing. | N/A |
JURISDICTION | SECURED PARTY | FILE NUMBER | FILING DATE | SUMMARY COLLATERAL DESCRIPTION | ADDITIONAL FILINGS | ||||||||||||
Nevada | The Bank of New York Mellon Trust Company, N.A., as Indenture Trustee; Harley-Davidson Customer Funding Corp.; Harley-Davidson Motorcycle Trust 2020-A | 2020065229-0 | 1/30/20 | (i) All right, title and interest of Debtor/Seller in and to the Contracts in effect on the closing date (including without limitation all security interests created thereunder), (ii) all rights of Debtor/Seller to payments which are collected, including liquidation proceeds, (iii) all rights of Debtor/Seller under any theft, physical damage, credit life, disability or other individual insurance policy, any debt insurance policy or any debt cancellation agreement relating to any such Contract, an Obligor or a Motorcycle securing such Contract, (iv) all security interests in each such Motorcycle, (v) all documents contained in the related Contract Files, (vi) all rights to certain lockboxes, (vii) all of Debtor/Seller’s rights to certain rebates and other amounts relating to insurance policies, debt cancellation agreements, extended service contracts and repair agreements, and (viii) all proceeds and products of the foregoing. | N/A |
JURISDICTION | SECURED PARTY | FILE NUMBER | FILING DATE | SUMMARY COLLATERAL DESCRIPTION | ADDITIONAL FILINGS | ||||||||||||
Nevada | Citibank N.A., as Indenture Trustee; Harley-Davidson Customer Funding Corp.; Harley-Davidson Motorcycle Trust 2020-L | 2020092887-7 | 4/29/20 | (i) All the right, title and interest of Debtor/Seller in and to the Contracts listed on the List of Contracts delivered on the Closing Date (including, without limitation, all security interests created thereunder), (ii) all rights of the Debtor/Seller to payments which are collected pursuant thereto after the Cutoff Date, including any liquidation proceeds therefrom, (iii) all rights of Debtor/Seller under any theft, physical damage, credit life, disability or other individual insurance policy (and rights under a “forced placed” policy, if any), any debt insurance policy or any debt cancellation agreement relating to any such Contract, an Obligor or a Motorcycle securing such Contract, (iv) all security interests in each such Motorcycle, (v) all documents contained in the related Contract Files, (vi) all rights of Debtor/Seller in the Lockbox, Lockbox Account and related Lockbox Agreement to the extent they relate to the Contracts (but excluding payments received on or before the Cutoff Date), (vii) all rights of Debtor/Seller to rebates of premiums and other amounts relating to insurance policies, debt cancellation agreements, extended service contracts or other repair and protection agreements and other items financed under such Contracts and (viii) all proceeds and products of the foregoing | N/A |
Date: August 6, 2020 | /s/ Jochen Zeitz | ||||
Jochen Zeitz | |||||
President and Chief Executive Officer |
Date: August 6, 2020 | /s/ J. Darrell Thomas | ||||
J. Darrell Thomas | |||||
Vice President, Treasurer, and Interim Chief Financial Officer |
Date: August 6, 2020 | /s/ Jochen Zeitz | ||||
Jochen Zeitz | |||||
President and Chief Executive Officer | |||||
/s/ J. Darrell Thomas | |||||
J. Darrell Thomas | |||||
Vice President, Treasurer and Interim Chief Financial Officer |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
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Revenue: | ||||
Total revenue | $ 865,227 | $ 1,632,619 | $ 2,163,471 | $ 3,016,999 |
Costs and expenses: | ||||
Motorcycles and Related Products cost of goods sold | 561,646 | 979,266 | 1,342,514 | 1,827,464 |
Financial Services interest expense | 62,187 | 52,673 | 114,660 | 104,997 |
Financial Services provision for credit losses | 91,179 | 26,383 | 170,598 | 60,874 |
Selling, administrative and engineering expense | 224,365 | 307,617 | 502,336 | 576,242 |
Restructuring expense | 41,949 | 10,423 | 41,949 | 24,053 |
Total costs and expenses | 981,326 | 1,376,362 | 2,172,057 | 2,593,630 |
Operating (loss) income | (116,099) | 256,257 | (8,586) | 423,369 |
Other income, net | 156 | 4,037 | 311 | 8,697 |
Investment income | 5,757 | 3,571 | 410 | 9,929 |
Interest expense | 7,769 | 7,784 | 15,524 | 15,515 |
(Loss) income before provision for income taxes | (117,955) | 256,081 | (23,389) | 426,480 |
Income tax (benefit) provision | (25,738) | 60,450 | (867) | 102,904 |
Net (loss) income | $ (92,217) | $ 195,631 | $ (22,522) | $ 323,576 |
(Net loss) earnings per share: | ||||
Basic (in dollars per share) | $ (0.60) | $ 1.23 | $ (0.15) | $ 2.03 |
Diluted (in dollars per share) | (0.60) | 1.23 | (0.15) | 2.03 |
Cash dividends per share (in dollars per share) | $ 0.020 | $ 0.375 | $ 0.400 | $ 0.750 |
Motorcycles and Related Products | ||||
Revenue: | ||||
Motorcycles and Related Products | $ 669,274 | $ 1,434,004 | $ 1,769,062 | $ 2,629,641 |
Financial Services | ||||
Revenue: | ||||
Financial Services | $ 195,953 | $ 198,615 | $ 394,409 | $ 387,358 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
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Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (92,217) | $ 195,631 | $ (22,522) | $ 323,576 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 21,443 | 11,270 | (13,012) | 11,601 |
Derivative financial instruments | (6,309) | (11,923) | (26,154) | (12,364) |
Pension and postretirement benefit plans | 11,958 | 7,743 | 23,917 | 15,486 |
Total other comprehensive loss, net of tax | 27,092 | 7,090 | (15,249) | 14,723 |
Comprehensive (loss) income | $ (65,125) | $ 202,721 | $ (37,771) | $ 338,299 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Allowance for credit loss, current | $ 75,563 | $ 43,006 | $ 40,446 |
Allowance for credit loss, noncurrent | $ 335,452 | $ 155,575 | $ 154,550 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Jun. 28, 2020 |
Mar. 29, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividends (in dollars per share) | $ 0.020 | $ 0.380 | $ 0.375 | $ 0.375 |
Basis of Presentation and Use of Estimates |
6 Months Ended |
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Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The consolidated financial statements include the accounts of Harley-Davidson, Inc. and its subsidiaries, all of which are wholly-owned (the Company), including the accounts of the group of companies the Company refers to as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions have been eliminated. The Company operates in two reportable segments: Motorcycles and Related Products (Motorcycles) and Financial Services. In the opinion of the Company's management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Consolidated balance sheets as of June 28, 2020 and June 30, 2019, the Consolidated statements of operations for the three and six month periods then ended, the Consolidated statements of comprehensive (loss) income for the three and six month periods then ended, the Consolidated statements of cash flows for the six month periods then ended, and the Consolidated statements of shareholders' equity for the three and six month periods then ended. Certain information and disclosures normally included in complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. During the first quarter of 2020, the outbreak of a novel strain of coronavirus (COVID-19) spread throughout the world, and it was recognized as a pandemic in March 2020. The COVID-19 pandemic has severely restricted the level of economic activity in the U.S. and around the world. The COVID-19 pandemic has led to supply chain destabilization, facility closures, workforce disruption, and volatility in the economy, and its full impact is not yet known. These impacts may continue to expand in scope, type and severity. The Company’s operations and demand for its products have been adversely impacted as a result of the COVID-19 pandemic. The Company acted quickly and in alignment with government efforts to protect the safety and health of its employees and the Harley-Davidson community. The Company implemented travel restrictions, enhanced sanitation practices, cancelled events and closed facilities including temporarily suspending its global manufacturing starting in March 2020. While the Company's global manufacturing has resumed and the impacts on demand, facility closures and other restrictions are expected to be temporary, the duration and financial impact to the Company are unknown at this time. This uncertainty could have an impact in future periods on certain estimates used in the preparation of financial results for the period ending June 28, 2020, including, but not limited to, the allowance for credit losses, goodwill, long-lived assets, fair value measurements, the provision for income tax and hedge accounting with respect to forecasted future transactions.
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New Accounting Standards |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Standards | New Accounting Standards Accounting Standards Recently Adopted In July 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU changes how a company recognizes expected credit losses on financial instruments by requiring recognition of the full lifetime expected credit losses upon initial recognition of the financial instrument. ASU 2016-13 replaced the incurred loss methodology. The Company adopted ASU 2016-13 on January 1, 2020 using a modified retrospective approach for financial instruments measured at amortized cost. On January 1, 2020, the Company remeasured the allowance for credit losses on financial instruments under the new accounting standard. The difference was recorded as a cumulative effect adjustment to Retained earnings, net of income taxes. The initial adoption of ASU 2016-13 did not impact the Company’s Consolidated statements of operations. The effect of adopting ASU 2016-13 on the Company’s Consolidated balance sheets was as follows (in thousands):
(a)Reported as Finance receivables, net on the Consolidated balance sheets, allocated between current and non-current Financial Statement Comparability to Prior Periods – Beginning in 2020, under ASU 2016-13, the Company recognized full lifetime expected credit losses upon initial recognition of the associated financial instrument. Under ASU 2016-13, changes in the allowance for credit losses and the impact on the provision for credit losses will be affected by the size and composition of the Company's finance receivables portfolios, economic conditions, reasonable and supportable forecasts, and other appropriate factors at each reporting period. Prior periods have not been restated and will continue to be reported in accordance with the previously applicable U.S. GAAP, which generally required that a credit loss be incurred before it was recognized. As such, prior periods will not be comparable to the current period. Additional information on the Company’s finance receivables is discussed further in Note 8. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplified the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company adopted ASU 2017-04 on January 1, 2020 on a prospective basis. The adoption of ASU 2017-04 did not have a material impact to the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 amended ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The amendments were required to be applied retrospectively, with the exception of a few disclosure additions, which were to be applied on a prospective basis. The Company adopted ASC 2018-13 on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company's disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15). The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the existing internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. The Company adopted ASU 2018-15 on January 1, 2020 on a prospective basis. The adoption of ASU 2018-15 did not have a material impact on the Company's consolidated financial statements. Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU No. 2019-12). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2019-12.
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Revenue |
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Revenue | Revenue The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. Disaggregated revenue by major source was as follows (in thousands):
The Company maintains certain deferred revenue balances related to payments received at contract inception in advance of the Company’s performance under the contract and generally relates to the sale of Harley Owners Group® memberships and extended service plan contracts. Deferred revenue is recognized as revenue as the Company performs under the contract. Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets, was as follows (in thousands):
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Restructuring Activities |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Expenses | Restructuring Activities Expenses associated with the Company's restructuring activities are included in Restructuring expense on the Consolidated Statements of Operations. 2020 Restructuring Activities – In the second quarter of 2020, the Company initiated restructuring activities including a workforce reduction and the termination of certain contracts. The workforce reduction will result in the elimination of approximately 700 positions globally, including the termination of approximately 500 employees. Restructuring expenses related to 2020 restructuring activities initiated in the second quarter, by segment, were as follows (in millions):
Subsequent to June 28, 2020, the Company initiated additional restructuring actions related to the termination of certain current and future products and facility changes. Based on the actions approved as of the issuance date of this Form 10-Q, the Company expects restructuring expenses of approximately $94 million in 2020 including $44 million related to actions initiated after June 28, 2020. This includes approximately $81 million and $13 million expected to be in incurred in the Motorcycles and Financial Services segments, respectively. Total expected restructuring expenses under the 2020 restructuring activities include approximately $30 million related to employee termination benefits, $38 million related to contract termination and other costs and $26 million related to non-current asset adjustments, including accelerated depreciation and other adjustments to the carrying value of non-current assets. Changes in accrued restructuring expenses for the 2020 restructuring activities initiated in the second quarter of 2020 which are included in Accrued liabilities on the Consolidated balance sheets were as follows (in thousands):
2018 Restructuring Activities – In 2018, the Company initiated a plan to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization plan which included the consolidation of its motorcycle assembly plant in Kansas City, Missouri, into its plant in York, Pennsylvania, and the closure of its wheel operations in Adelaide, Australia (Manufacturing Optimization Plan). The consolidation of operations included the elimination of approximately 800 jobs at the Kansas City facility and the addition of approximately 450 jobs at the York facility through 2019. The Adelaide facility closure included the elimination of approximately 90 jobs. Through December 31, 2019, the Motorcycles segment incurred cumulative restructuring expenses of $122.2 million and other costs related to temporary inefficiencies of $23.2 million under the Manufacturing Optimization Plan. The plant consolidation and closures were completed in 2019. No expenses were recorded under the Manufacturing Optimization Plan in the six months ended June 28, 2020, and no additional expenses are expected under the plan. In 2018, the Company initiated a reorganization of its workforce (Reorganization Plan), which was completed in 2019. As a result, approximately 70 employees left the Company on an involuntary basis. Changes in accrued restructuring expenses for the 2018 restructuring activities which are included in Accrued liabilities on the Consolidated balance sheets during 2019 were as follows (in thousands). The changes in accrued restructuring expenses for the 2018 restructuring activities during the three and six months ended June 28, 2020 were immaterial.
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Income Taxes |
6 Months Ended |
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Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective income tax rate for the six months ended June 28, 2020 was 3.7% compared to 24.1% for the six months ended June 30, 2019. The decrease in the 2020 effective income tax rate as compared to 2019 was due primarily to discrete income tax expenses recorded during the six months ended June 28, 2020, including adjustments related to the reassessment of the realizability of certain deferred tax assets, which reduced the Company's income tax benefit for the period. The effective income tax rate for the six months ended June 28, 2020 was determined based on the Company's current projection for full-year 2020 financial results. Given uncertainty surrounding the impact of the COVID-19 pandemic, the Company's projection for full-year 2020 financial results, in total and across its numerous tax jurisdictions, may evolve and ultimately impact the Company's 2020 full-year effective income tax rate. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share was as follows (in thousands, except per share amounts):
Shares of common stock related to share-based compensation that were not included in the effect of dilutive securities because the effect would have been anti-dilutive include 2.4 million and 1.2 million shares for the three months ended June 28, 2020 and June 30, 2019, respectively, and 2.4 million and 1.2 million shares for the six months ended June 28, 2020 and June 30, 2019, respectively.
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Additional Balance Sheet and Cash Flow Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Balance Sheet and Cash Flow Information | Additional Balance Sheet and Cash Flow Information Investments in Marketable Securities – The Company’s investments in marketable securities consisted of the following (in thousands):
Mutual funds, included in Other long-term assets on the Consolidated balance sheets, are carried at fair value with gains and losses recorded in net income. Mutual funds are held to support certain deferred compensation obligations. Inventories, net – Substantially all inventories located in the U.S. are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Inventories, net consisted of the following (in thousands):
Operating Cash Flow – The reconciliation of Net (loss) income to Net cash provided by operating activities was as follows (in thousands):
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Finance Receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables | Finance Receivables The Company provides retail financial services to customers of its independent dealers in the U.S. and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment sales contracts and are primarily related to independent dealer sales of motorcycles to retail customers. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts. The Company offers wholesale financing to its independent dealers in the U.S. and Canada. Wholesale finance receivables are related primarily to the Company's sale of motorcycles and related parts and accessories to dealers. Wholesale loans to dealers are generally secured by financed inventory or property. Finance receivables, net, consisted of the following (in thousands):
On January 1, 2020, the Company adopted ASU 2016-13, which requires an entity to recognize expected lifetime losses on finance receivables upon origination. The allowance for credit losses as of June 28, 2020 represents the Company’s estimate of lifetime losses for its finance receivables. Prior to the adoption of ASU 2016-13, the Company maintained an allowance for credit losses based on the Company’s estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. Under ASU 2016-13, the Company’s finance receivables are reported at amortized cost, net of the allowance for credit losses. Amortized cost includes the principal outstanding, accrued interest, and deferred loan fees and costs. Based on differences in the nature of the finance receivables and the underlying methodology for calculating the allowance for loan losses, the Company segments its finance receivables into the retail and wholesale portfolios. The Company further disaggregates each portfolio by credit quality indicators. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit quality indicators for each portfolio. Prior to the adoption of ASU 2016-13, the Company’s investment in finance receivables included the same components as the amortized cost under the new accounting guidance. The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a collective evaluation of the adequacy of the retail allowance for credit losses. For periods after January 1, 2020, the Company utilizes a vintage-based loss forecast methodology that includes decompositions for probability of default, exposure at default, attrition rate, and recovery balance rate. Reasonable and supportable economic forecasts for a two-year period are incorporated into the methodology to reflect the estimated impact of changes in future economic conditions, such as unemployment rates, household obligations or other relevant factors, over the expected life of the retail portfolio. For periods beyond the Company’s reasonable and supportable forecasts, the Company reverts to its average historical loss experience for a three-year period using a mean-reversion process. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or term as well as other relevant factors. For periods prior to January 1, 2020, the Company performed a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilized loss forecast models which considered a variety of factors including, but not limited to, historical loss trends, origination or vintage analysis, known and inherent risks in the portfolio, the value of the underlying collateral, recovery rates and current economic conditions. The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s evaluation for the wholesale allowance for credit losses is first based on a loan-by-loan review to determine whether the loans share similar risk characteristics. The Company classifies loans that do not share risk characteristics as Non-Performing and evaluates these loans individually. A specific allowance for credit losses is established for these finance receivables when foreclosure is probable. The specific allowance is determined based on amortized cost of the related finance receivable and the estimated fair value of the collateral, less selling costs and the cash that the Company expects to receive. Finance receivables in the wholesale portfolio not individually assessed are aggregated, based on similar risk characteristics, according to the Company’s internal risk rating system and measured collectively. For periods after January 1, 2020, the related allowance for credit losses is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past loan loss experience, reasonable and supportable economic forecasts, and the value of the underlying collateral and expected recoveries. For periods prior to January 1, 2020, the related allowance for credit losses was based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past loan loss experience, current economic conditions, and the value of the underlying collateral. Changes in the Company’s outlook on economic conditions impacted the retail and wholesale estimates for expected credit losses at June 28, 2020. As part of the January 1, 2020 adoption of ASU 2016-13, the Company expected to be operating in a negative economic environment throughout 2020, the Company’s economic forecast worsened during the first quarter of 2020 as a result of the impact of the COVID-19 pandemic. During the second quarter of 2020, the Company’s outlook on economic conditions further deteriorated driven by the impact of the COVID-19 pandemic with recessionary conditions continuing to restrain the U.S. economy, including continued high unemployment rates and a slow U.S. Gross Domestic Product (GDP) recovery. The historical experience incorporated into the portfolio-specific models does not fully reflect the Company's comprehensive expectations regarding the future. As such, the Company incorporated qualitative factors to produce reasonable and supportable allowance balances. These factors include motorcycle recovery value considerations, delinquency adjustments associated with COVID-19 payment extensions and specific problem loan trends. Due to the use of projections and assumptions in estimating the losses, the amount of losses actually incurred by the Company in either portfolio could differ from the amounts estimated. Further, the Company’s allowance for credit losses incorporates management’s expectations surrounding the economic forecasts and known conditions at the balance sheet date. The Company’s expectations surrounding its economic forecasts may change in future periods as additional information becomes available. Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):
(a)On January 1, 2020, the Company adopted ASU 2016-13 and increased the allowance for loan loss through Retained earnings, net of income taxes, to establish an allowance that represents expected lifetime credit losses on the finance receivable portfolios at date of adoption. The Company manages retail credit risk through its credit approval process and ongoing collection efforts. The Company uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants, enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. For the Company’s U.S. and Canadian retail finance receivables, the Company determines the credit quality indicator for each loan at origination and does not update the credit quality indicator subsequent to the loan origination date. As loan performance by credit quality indicator differs between the U.S. and Canadian retail loans, the Company’s credit quality indicators vary for the two portfolios. For U.S. retail finance receivables, those with a FICO score of 740 or above at origination are generally considered super prime, loans with a FICO score between 640 and 740 are generally categorized as prime, and loans with FICO score below 640 are generally considered sub-prime. For Canadian retail finance receivables, those with a FICO score of 700 or above at origination are generally considered super prime, loans with a FICO score between 620 and 700 are generally categorized as prime, and loans with FICO score below 620 are generally considered sub-prime. The amortized cost of the Company's U.S. and Canadian retail finance receivables by credit quality indicator and vintage, as of June 28, 2020, was as follows (in thousands):
Prior to the adoption of ASU 2016-13, retail loans with a FICO score of 640 or above at origination were generally considered prime, and loans with a FICO score below 640 were generally considered sub-prime. These credit quality indicators were determined at the time of loan origination and were not updated subsequent to the loan origination date. The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands):
The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon the Company’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. The Company classifies dealers identified as those in which foreclosure is probable as Non-Performing. The internal rating system considers factors such as the specific borrower's ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated on a quarterly basis. The amortized cost of wholesale financial receivables, by credit quality indicator and vintage, was as follows as of June 28, 2020 (in thousands):
Dealer risk rating categories prior to the adoption of ASU 2016-13 were consistent with the current risk rating categories with the exception of the Non-Performing category for dealers identified as those in which foreclosure is probable, which was established in connection with the January 1, 2020 adoption of the new accounting guidance. The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):
Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed, or the receivable is otherwise deemed uncollectible. The Company reverses accrued interest related to charged-off accounts against interest income when the account is charged-off. The Company reversed $5.0 million and $11.4 million of accrued interest against interest income during the three and six months ended June 28, 2020, respectively. All retail finance receivables accrue interest until either collected or charged-off. Due to the timely write-off of accrued interest, the Company made the election provided under ASU 2016-13 to exclude accrued interest from its allowance for credit losses. Accordingly, as of June 28, 2020, December 31, 2019 and June 30, 2019, all retail finance receivables were accounted for as interest-earning receivables, of which $16.0 million, $48.0 million and $30.4 million, respectively, were 90 days or more past due. Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once the Company determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the Company determines that foreclosure is probable, and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. Once an account is charged-off, the Company will reverse the associated accrued interest against interest income. As the Company follows a non-accrual policy for interest, the allowance for credit losses excludes accrued interest for the wholesale portfolio. There were no charged-off accounts during the three and six months ended June 28, 2020. As such, the Company did not reverse any accrued interest in that period. At June 28, 2020, December 31, 2019 and June 30, 2019, $3.5 million, $2.6 million, and $2.1 million, respectively, of wholesale finance receivables were 90 days or more past due and accruing interest. Additional information related to the wholesale finance receivables on non-accrual status was as follows (in thousands):
The aging analysis of finance receivables was as follows (in thousands):
Prior to the Company's January 1, 2020 adoption of ASU 2016-13, finance receivables were considered impaired when management determined it was probable that the Company would not be able to collect all amounts due according to the terms of the loan agreement. Portions of the allowance for credit losses were established to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance for credit losses covered estimated losses on finance receivables which were collectively reviewed for impairment. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that were individually evaluated for impairment and those that were collectively evaluated for impairment, were as follows (in thousands):
At June 30, 2019, there were no wholesale receivables that were individually deemed to be impaired under ASC Topic 310, Receivables. Additional information related to the wholesale finance receivables that were individually deemed to be impaired at December 31, 2019 included the following (in thousands):
Retail finance receivables were not evaluated individually for impairment prior to charge-off at December 31, 2019 or June 30, 2019. Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize the economic loss, the Company may modify certain finance receivables in troubled debt restructurings. Total troubled restructured finance receivables are not significant as of June 28, 2020, December 31, 2019 and June 30, 2019. Additionally, in certain situations, the Company may offer short-term adjustments to customer payment due dates without affecting the associated interest rate or loan term. During the second quarter of 2020, the Company offered an increased amount of payment due date extensions on eligible retail loans to help retail customers get through short-term financial difficulties associated with the COVID-19 pandemic.
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Goodwill, Intangible and Long-Lived Assets |
6 Months Ended |
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Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangible and Long-Lived Assets | Goodwill, Intangible and Long-Lived AssetsGoodwill is tested for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company also periodically evaluates whether there are indicators that the carrying value of long-lived assets to be held and used may not be recoverable. The Company has assessed the changes in events and circumstances related to the COVID-19 pandemic and determined there was no impairment of goodwill or long-lived assets during the three and six months ended June 28, 2020.On March 4, 2019, the Company purchased certain assets and liabilities of StaCyc, Inc. for total consideration of $14.9 million including cash paid at acquisition of $7.0 million. The primary assets acquired and included in the Motorcycles segment were goodwill of $9.5 million, which was tax deductible, and intangible assets of $5.3 million. |
Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company is exposed to risks from fluctuations in foreign currency exchange rates, interest rates and commodity prices. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures which prohibit the use of financial instruments for speculative trading purposes. The Company sells products in foreign currencies and utilizes foreign currency exchange contracts to mitigate the effects of foreign currency exchange rate fluctuations related to the Euro, Australian dollar, Japanese yen, Brazilian real, Canadian dollar, Mexican peso, Chinese yuan, Thai baht, Indian rupee, and Pound sterling. The Company's foreign currency exchange contracts generally have maturities of less than one year. The Company utilizes commodity contracts to mitigate the effects of commodity price fluctuations related to metals and fuel consumed in the Company’s motorcycle operations. The Company's commodity contracts generally have maturities of less than one year. The Company periodically utilizes treasury rate lock contracts to fix the interest rate on a portion of the principal related to an anticipated issuance of long-term debt, interest rate swaps to reduce the impact of fluctuations in interest rates on medium-term notes with floating interest rates, and cross-currency swaps to mitigate the effect of foreign currency exchange rate fluctuations on foreign currency-denominated debt. The Company also utilizes interest rate caps to facilitate certain asset-backed securitization transactions. All derivative financial instruments are recognized on the Consolidated balance sheets at fair value. In accordance with ASC Topic 815, Derivatives and Hedging (ASC Topic 815), the accounting for changes in the fair value of a derivative financial instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivative financial instruments that are designated as cash flow hedges are initially recorded in other comprehensive income (loss) (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, both at the inception of each hedge and on an ongoing basis, whether the derivative financial instruments that are designated as cash flow hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. No component of a designated hedging derivative financial instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivative financial instruments not designated as hedges are not speculative and are used to manage the Company’s exposure to foreign currency, commodity risks, and interest rate risks. Changes in the fair value of derivative financial instruments not designated as hedging instruments are recorded directly in income. The notional and fair values of the Company's derivative financial instruments under ASC Topic 815 were as follows (in thousands):
The amounts of gains and losses related to derivative financial instruments designated as cash flow hedges were as follows (in thousands):
The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges were as follows (in thousands):
The amount of net loss included in Accumulated other comprehensive loss (AOCL) at June 28, 2020, estimated to be reclassified into income over the next 12 months was $16.8 million. The amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments were as follows (in thousands). Gains and losses on foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial Services interest expense.
The Company is exposed to credit loss risk in the event of non-performance by counterparties to its derivative financial instruments. Although no assurances can be given, the Company does not expect any of the counterparties to its derivative financial instruments to fail to meet their obligations. To manage credit loss risk, the Company evaluates counterparties based on credit ratings and, on a quarterly basis, evaluates each hedge’s net position relative to the counterparty’s ability to cover their position.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company determines if an arrangement is or contains a lease at contract inception. Right-of-use (ROU) assets related to the Company's leases are recorded in Lease assets and lease liabilities are recorded in Accrued liabilities and Lease liabilities on the Consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset over the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. The ROU asset also includes prepaid lease payments and initial direct costs and is reduced for lease incentives paid by the lessor. The discount rate used to determine the present value is generally the Company's incremental borrowing rate because the implicit rate in the lease is not readily determinable. The lease term used to calculate the ROU asset and lease liabilities includes periods covered by options to extend or terminate when the Company is reasonably certain the lease term will include these optional periods. In accordance with ASC Topic 842, Leases (ASC Topic 842), the Company elected the short-term lease practical expedient that allows entities to recognize lease payments on a straight-line basis over the lease term for leases with a term of 12 months or less. The Company has also elected the practical expedient under ASC Topic 842 allowing entities to not separate non-lease components from lease components, but instead account for such components as a single lease component for all leases except leases involving assets operated by a third-party. The Company has operating lease arrangements for sales and administrative offices, manufacturing and distribution facilities, product testing facilities, equipment and vehicles. The Company’s leases have remaining lease terms ranging from 1 to 12 years, some of which include options to extend the lease term for periods generally not greater than 5 years and some of which include options to terminate the leases within 1 year. Certain leases also include options to purchase the leased asset. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. Operating lease expense for the three months ended June 28, 2020 and June 30, 2019 was $6.5 million and $6.4 million, respectively, and $13.8 million and $12.7 million for the six months ended June 28, 2020 and June 30, 2019, respectively. This includes variable lease costs related to leases involving assets operated by a third party of approximately $1.3 million and $2.0 million for the three months ended June 28, 2020 and June 30, 2019, respectively, and $3.2 million and $3.2 million for the six months ended June 28, 2020 and June 30, 2019, respectively. Other variable and short-term lease costs were not material. Balance sheet information related to the Company's leases was as follows (in thousands):
Future maturities of the Company's operating lease liabilities as of June 28, 2020 were as follows (in thousands):
Other lease information surrounding the Company's operating leases was as follows (dollars in thousands):
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following (in thousands):
Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following (in thousands):
(a)Euro denominated, €650.0 million par value remeasured to U.S. dollar at June 28, 2020 (b)Euro denominated, €600.0 million par value remeasured to U.S. dollar at June 28, 2020 and December 31, 2019, respectively
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Asset-Backed Financing |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-Backed Financing | Asset-Backed Financing The Company participates in asset-backed financing both through asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. In the Company's asset-backed financing programs, the Company transfers retail motorcycle finance receivables to special purpose entities (SPEs), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash, through the issuance of debt. The Company retains servicing rights for all of the retail motorcycle finance receivables transferred to SPEs as part of an asset-backed financing. The accounting treatment for asset-backed financings depends on the terms of the related transaction and the Company’s continuing involvement with the VIE. In transactions where the Company has power over the significant activities of the VIE and has an obligation to absorb losses or the right to receive benefits from the VIE that are potentially significant to the VIE, the Company is the primary beneficiary of the VIE and consolidates the VIE within its consolidated financial statements. On a consolidated basis, the asset-backed financing is treated as a secured borrowing in this type of transaction and is referred to as an on-balance sheet asset-backed financing. In transactions where the Company is not the primary beneficiary of the VIE, the Company must determine whether it can achieve a sale for accounting purposes under ASC Topic 860, Transfers and Servicing (ASC Topic 860). To achieve a sale for accounting purposes, the assets being transferred must be legally isolated, not be constrained by restrictions from further transfer, and be deemed to be beyond the Company’s control. If the Company does not meet all of these criteria for sale accounting, then the transaction is accounted for as a secured borrowing and is referred to as an on-balance sheet asset-backed financing. If the Company meets all three of the sale criteria above, the transaction is recorded as a sale for accounting purposes and is referred to as an off-balance sheet asset-backed financing. Upon sale, the retail motorcycle finance receivables are removed from the Company’s Consolidated balance sheets and a gain or loss is recognized for the difference between the cash proceeds received, the assets derecognized, and the liabilities recognized as part of the transaction. The gain or loss on sale is included in Financial Services revenue on the Consolidated statements of operations. The Company is not required, and does not currently intend, to provide any additional financial support to the on- or off-balance sheet VIEs associated with these transactions. Investors and creditors in these transactions only have recourse to the assets held by the VIEs. The assets and liabilities related to the on-balance sheet asset-backed financings included in the Consolidated balance sheets were as follows (in thousands):
On-Balance Sheet Asset-Backed Securitization VIEs – The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each on-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitizations are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Restricted cash balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes have various contractual maturities ranging from 2021 to 2028. The Company is the primary beneficiary of its on-balance sheet asset-backed securitization VIEs because it retains servicing rights and a residual interest in the VIEs in the form of a debt security. As the servicer, the Company is the variable interest holder with the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. As a residual interest holder, the Company has the obligation to absorb losses and the right to receive benefits which could potentially be significant to the VIE. Quarterly transfers of U.S. retail motorcycle finance receivables to SPEs, the respective proceeds, and the respective proceeds, net of discounts and issuance costs were as follows (in thousands):
On-Balance Sheet Asset-Backed U.S. Commercial Paper Conduit Facilities VIE – The Company has two separate agreements, a $300.0 million revolving facility agreement and a $600.0 million revolving facility agreement, with third-party bank-sponsored asset-backed U.S. commercial paper conduits under which it may transfer U.S. retail motorcycle finance receivables to an SPE, which in turn may issue debt to those third-party bank-sponsored asset-backed U.S. commercial paper conduits. In May 2019, the Company amended its $300.0 million revolving facility agreement to allow for incremental borrowings, at the lender's discretion, of up to an additional $300.0 million in excess of the $300.0 million commitment. In November 2019, the Company renewed its existing $600.0 million and the amended $300.0 million revolving facility agreements with third-party bank-sponsored asset-backed U.S. commercial paper conduits. Availability under the revolving facilities (together, the U.S. Conduit Facilities) is based on, among other things, the amount of eligible U.S. retail motorcycle finance receivables held by the SPE as collateral. Under the U.S. Conduit Facilities, the assets of the SPE are restricted as collateral for the payment of the debt or other obligations arising in the transaction and are not available to pay other obligations or claims of the Company’s creditors. The terms for this debt provide for interest on the outstanding principal based on prevailing commercial paper rates if funded by a conduit lender through the issuance of commercial paper. If not funded by a conduit lender through the issuance of commercial paper, the terms of the interest are based on LIBOR. In each of these cases, a program fee is assessed based on the outstanding principal. The U.S. Conduit Facilities also provide for an unused commitment fee based on the unused portion of the total aggregate commitment. When calculating the unused fee, the aggregate commitment for the $300.0 million agreement does not include any unused portion of the $300.0 million incremental borrowings allowed. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the U.S. Conduit Facilities, any outstanding principal will continue to be reduced monthly through available collections. The expected remaining term of the related receivables held by the SPE is approximately 5 years. Unless earlier terminated or extended by mutual agreement of the Company and the lenders, as of June 28, 2020, the U.S. Conduit Facilities have an expiration date of November 25, 2020. The Company is the primary beneficiary of its U.S. Conduit Facilities VIE because it retains servicing rights and a residual interest in the VIE in the form of a debt security. As the servicer, the Company is the variable interest holder with the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. As a residual interest holder, the Company has the obligation to absorb losses and the right to receive benefits which could potentially be significant to the VIE. Quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds were as follows (in thousands):
On-Balance Sheet Asset-Backed Canadian Commercial Paper Conduit Facility – In June 2020, the Company renewed its facility agreement (Canadian Conduit) with a Canadian bank-sponsored asset-backed commercial paper conduit. Under the agreement, the Canadian Conduit is contractually committed, at the Company's option, to purchase eligible Canadian retail motorcycle finance receivables for proceeds up to C$220.0 million. The transferred assets are restricted as collateral for the payment of the associated debt. The terms for this debt provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$220.0 million. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. The expected remaining term of the related receivables is approximately 5 years. Unless earlier terminated or extended by mutual agreement between the Company and the lenders, as of June 28, 2020, the Canadian Conduit has an expiration date of June 25, 2021. The Company is not the primary beneficiary of the Canadian bank-sponsored, multi-seller conduit VIE; therefore, the Company does not consolidate the VIE. However, the Company treats the conduit facility as a secured borrowing as it maintains effective control over the assets transferred to the VIE and, therefore, does not meet the requirements for sale accounting. As the Company participates in and does not consolidate the Canadian bank-sponsored, multi-seller conduit VIE, the maximum exposure to loss associated with this VIE, which would only be incurred in the unlikely event that all the finance receivables and underlying collateral have no residual value, was $79.3 million at June 28, 2020. The maximum exposure is not an indication of the Company's expected loss exposure. Quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds were as follows (in thousands):
Off-Balance Sheet Asset-Backed Securitization VIE – There were no off-balance sheet asset-backed securitization transactions during the six months ended June 28, 2020 or June 30, 2019. During the second quarter of 2016, the Company sold retail motorcycle finance receivables with a principal balance of $301.8 million into a securitization VIE that was not consolidated, recognized a gain of $9.3 million and received cash proceeds of $312.6 million. Similar to an on-balance sheet asset-backed securitization, the Company transferred U.S. retail motorcycle finance receivables to an SPE which in turn issued secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. The off-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitization are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors. In an on-balance sheet asset-backed securitization, the Company retains a financial interest in the VIE in the form of a debt security. As part of this off-balance sheet securitization, the Company did not retain any financial interest in the VIE beyond servicing rights and ordinary representations and warranties and related covenants. The Company is not the primary beneficiary of the off-balance sheet asset-backed securitization VIE because it only retained servicing rights and does not have the obligation to absorb losses or the right to receive benefits from the VIE which could potentially be significant to the VIE. Accordingly, this transaction met the accounting sale requirements under ASC Topic 860 and was recorded as a sale for accounting purposes. Upon the sale, the retail motorcycle finance receivables were removed from the Company’s Consolidated balance sheets and a gain was recognized for the difference between the cash proceeds received, the assets derecognized and the liabilities recognized as part of the transaction. The gain on sale was included in Financial Services revenue on the Consolidated statements of operations. In April 2020, this off-balance sheet asset-backed securitization VIE was repurchased for $27.4 million. Servicing Activities – The Company services all retail motorcycle finance receivables that it originates. When the Company transfers retail motorcycle finance receivables to SPEs through asset-backed financings, the Company retains the right to service the finance receivables and receives servicing fees based on the securitized finance receivables balance and certain ancillary fees. In on-balance sheet asset-backed financings, servicing fees are eliminated in consolidation and therefore are not recorded on a consolidated basis. In off-balance sheet asset-backed financings, servicing fees and ancillary fees are recorded in Financial Services revenue on the Consolidated statements of operations. The fees the Company is paid for servicing represent adequate compensation, and consequently, the Company does not recognize a servicing asset or liability. The Company recognized servicing fee income of $0.1 million and $0.3 million during the six months ended June 28, 2020 and June 30, 2019, respectively. The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands):
The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands):
Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands):
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value The Company assesses the inputs used to measure fair value using a three-tier hierarchy. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity prices, and yield curves. The Company uses the market approach to derive the fair value for its Level 2 fair value measurements. Foreign currency contracts, commodity contracts, cross-currency swaps and treasury rate locks are valued using quoted forward rates and prices; interest rate swaps and caps are valued using quoted interest rates and yield curves; investments in marketable securities and cash equivalents are valued using quoted prices. Level 3 inputs are not observable in the market and include the Company's judgments about the assumptions market participants would use in pricing the asset or liability. Recurring Fair Value Measurements – The Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):
Nonrecurring Fair Value Measurements – Repossessed inventory is recorded at the lower of cost or net realizable value through a nonrecurring fair value measurement. Repossessed inventory was $15.8 million, $21.4 million and $19.4 million at June 28, 2020, December 31, 2019 and June 30, 2019, respectively, for which the fair value adjustment was $2.6 million, $11.9 million and $5.9 million, respectively. Fair value is estimated using Level 2 inputs based on the recent market values of repossessed inventory. Fair Value of Financial Instruments Measured at Cost – The carrying value of the Company's Cash and cash equivalents and Restricted cash approximates their fair values. The fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost were as follows (in thousands):
Finance Receivables, net – The carrying value of retail and wholesale finance receivables is amortized cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The amortized cost basis of wholesale finance receivables approximates fair value because they are generally either short-term or have interest rates that adjust with changes in market interest rates. Deposits – The carrying value of deposits is amortized cost. The fair value is calculated using Level 2 inputs and approximates carrying value due to its short maturity. Debt – The carrying value of debt is generally amortized cost, net of discounts and debt issuance costs. The fair value of unsecured commercial paper and credit facility borrowings are calculated using Level 2 inputs and approximates carrying value due to its short maturity. The fair value of debt provided under the U.S. Conduit Facilities and Canadian Conduit Facility is calculated using Level 2 inputs and approximates carrying value since the interest rates charged under the facility are tied directly to market rates and fluctuate as market rates change. The fair values of the medium-term notes and senior notes are estimated based upon rates currently available for debt with similar terms and remaining maturities (Level 2 inputs). The fair value of the debt related to on-balance sheet asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities (Level 2 inputs).
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Product Warranty and Recall Campaigns |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranty and Recall Campaigns | Product Warranty and Recall Campaigns The Company currently provides a standard -year limited warranty on all new motorcycles sold worldwide, except in Japan, where the Company currently provides a standard -year limited warranty. The Company also provides a -year unlimited warranty on the battery for new electric motorcycles. In addition, the Company provides a -year warranty for parts and accessories. The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims at the time of sale using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company records estimated recall costs when the liability is both probable and estimable. This generally occurs when the Company's management approves and commits to a recall. Changes in the Company’s warranty and recall liabilities were as follows (in thousands):
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Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans The Company has a qualified pension plan and postretirement healthcare benefit plans. The plans cover certain eligible employees and retirees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees. Service cost is allocated among Selling, administrative and engineering expense, Motorcycles cost of goods sold and Inventories, net. Amounts capitalized in inventory are not significant. Non-service cost components of net periodic benefit cost are presented in Other income, net. Components of net periodic benefit cost for the Company's defined benefit plans were as follows (in thousands):
There are no required or planned qualified pension plan contributions for 2020. The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter. Environmental Protection Agency Notice – In December 2009, the Company received formal, written requests for information from the United States Environmental Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels, (ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written responses to the EPA’s inquiry and has engaged in information exchanges and discussions with the EPA. In August 2016, the Company entered into a consent decree with the EPA regarding these issues, and the consent decree was subsequently revised in July 2017 (the Settlement). In the Settlement, the Company agreed to, among other things, pay a fine, and not sell tuning products unless they are approved by the EPA or California Air Resources Board. In December 2017, the Department of Justice (DOJ), on behalf of the EPA, filed the Settlement with the U.S. District Court for the District of Columbia for the purpose of obtaining court approval of the Settlement. Three amicus briefs opposing portions of the Settlement were filed with the court by the deadline of January 31, 2018. On March 1, 2018, the Company and the DOJ each filed separate response briefs. The Company is awaiting the court's decision on whether or not to finalize the Settlement, and on February 8, 2019 the DOJ filed a status update reminding the court of the current status of the outstanding matter. The Company has an accrual associated with this matter recorded in Accrued liabilities on the Consolidated balance sheets, and as a result, if it is finalized, the Settlement would not have a material adverse effect on the Company's financial condition or results of operations. The Settlement is not final until it is approved by the court, and if it is not approved by the court, the Company cannot reasonably estimate the impact of any remedies the EPA might seek beyond the Company's current reserve for this matter. York Environmental Matter – The Company is involved with government agencies and the U.S. Navy related to a matter involving the cleanup of soil and groundwater contamination at its York, Pennsylvania facility. The York facility was formerly used by the U.S. Navy and AMF prior to the purchase of the York facility by the Company from AMF in 1981. The Company has an agreement with the U.S. Navy which calls for the U.S. Navy and the Company to contribute amounts into a trust equal to 53% and 47%, respectively, of costs associated with environmental investigation and remediation activities at the York facility (Response Costs). A site wide remedial investigation/feasibility study and a proposed final remedy for the York facility have been completed and approved by the Pennsylvania Department of Environmental Protection and the EPA. The associated cleanup plan documents were approved in February 2020 and the remaining cleanup activities are expected to begin in late 2020 or early 2021. The Company has an accrual for its share of the estimated future Response Costs recorded in Other long-term liabilities on the Consolidated balance sheets. Product Liability Matters – The Company is periodically involved in product liability suits related to the operation of its business. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and that product liability suits will not have a material adverse effect on the Company’s Consolidated financial statements.
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Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss were as follows (in thousands):
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Business Segments |
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Business Segments | Business Segments Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two business segments: Motorcycles and Related Products (Motorcycles) and Financial Services. The Company's reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. The Motorcycles segment consists of HDMC which designs, manufactures and sells Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise and services. The Company's products are sold to retail customers primarily through a network of independent dealers. The Financial Services segment consists of HDFS which is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson motorcycles. HDFS also works with certain unaffiliated insurance companies to provide motorcycle insurance and protection products to motorcycle owners. Select segment information is set forth below (in thousands):
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Supplemental Consolidating Data |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Consolidating Data | Supplemental Consolidating Data The supplemental consolidating data is presented for informational purposes and is different than segment information due to the allocation of consolidating reporting adjustments to the reportable segments. Supplemental consolidating data is as follows (in thousands):
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Basis of Presentation and Use of Estimates (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements | Accounting Standards Recently Adopted In July 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU changes how a company recognizes expected credit losses on financial instruments by requiring recognition of the full lifetime expected credit losses upon initial recognition of the financial instrument. ASU 2016-13 replaced the incurred loss methodology. The Company adopted ASU 2016-13 on January 1, 2020 using a modified retrospective approach for financial instruments measured at amortized cost. On January 1, 2020, the Company remeasured the allowance for credit losses on financial instruments under the new accounting standard. The difference was recorded as a cumulative effect adjustment to Retained earnings, net of income taxes. The initial adoption of ASU 2016-13 did not impact the Company’s Consolidated statements of operations. The effect of adopting ASU 2016-13 on the Company’s Consolidated balance sheets was as follows (in thousands):
(a)Reported as Finance receivables, net on the Consolidated balance sheets, allocated between current and non-current Financial Statement Comparability to Prior Periods – Beginning in 2020, under ASU 2016-13, the Company recognized full lifetime expected credit losses upon initial recognition of the associated financial instrument. Under ASU 2016-13, changes in the allowance for credit losses and the impact on the provision for credit losses will be affected by the size and composition of the Company's finance receivables portfolios, economic conditions, reasonable and supportable forecasts, and other appropriate factors at each reporting period. Prior periods have not been restated and will continue to be reported in accordance with the previously applicable U.S. GAAP, which generally required that a credit loss be incurred before it was recognized. As such, prior periods will not be comparable to the current period. Additional information on the Company’s finance receivables is discussed further in Note 8. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplified the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company adopted ASU 2017-04 on January 1, 2020 on a prospective basis. The adoption of ASU 2017-04 did not have a material impact to the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 amended ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The amendments were required to be applied retrospectively, with the exception of a few disclosure additions, which were to be applied on a prospective basis. The Company adopted ASC 2018-13 on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company's disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15). The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the existing internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. The Company adopted ASU 2018-15 on January 1, 2020 on a prospective basis. The adoption of ASU 2018-15 did not have a material impact on the Company's consolidated financial statements. Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU No. 2019-12). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2019-12.
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Organization, Consolidation and Presentation of Financial Statements (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effect of adopting ASU 2016-13 on the Company’s Consolidated balance sheets was as follows (in thousands):
(a)Reported as Finance receivables, net on the Consolidated balance sheets, allocated between current and non-current
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New Accounting Standards (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effect of adopting ASU 2016-13 on the Company’s Consolidated balance sheets was as follows (in thousands):
(a)Reported as Finance receivables, net on the Consolidated balance sheets, allocated between current and non-current
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Disaggregated revenue by major source was as follows (in thousands):
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Deferred Revenue | Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets, was as follows (in thousands):
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Restructuring Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Accrued Restructuring Liability | Restructuring expenses related to 2020 restructuring activities initiated in the second quarter, by segment, were as follows (in millions):
Changes in accrued restructuring expenses for the 2020 restructuring activities initiated in the second quarter of 2020 which are included in Accrued liabilities on the Consolidated balance sheets were as follows (in thousands):
Changes in accrued restructuring expenses for the 2018 restructuring activities which are included in Accrued liabilities on the Consolidated balance sheets during 2019 were as follows (in thousands). The changes in accrued restructuring expenses for the 2018 restructuring activities during the three and six months ended June 28, 2020 were immaterial.
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Earnings Per Share Basic and Diluted | The computation of basic and diluted earnings per share was as follows (in thousands, except per share amounts):
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Additional Balance Sheet and Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | Investments in Marketable Securities – The Company’s investments in marketable securities consisted of the following (in thousands):
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Inventories, Net | Inventories, net consisted of the following (in thousands):
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Reconciliation of Net Cash Provided by Operating Activities | The reconciliation of Net (loss) income to Net cash provided by operating activities was as follows (in thousands):
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Finance Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables | Finance receivables, net, consisted of the following (in thousands):
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Allowance for Credit Losses on Finance Receivables | Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):
(a)On January 1, 2020, the Company adopted ASU 2016-13 and increased the allowance for loan loss through Retained earnings, net of income taxes, to establish an allowance that represents expected lifetime credit losses on the finance receivable portfolios at date of adoption. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that were individually evaluated for impairment and those that were collectively evaluated for impairment, were as follows (in thousands):
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Financing Receivable Credit Quality Indicators | The amortized cost of the Company's U.S. and Canadian retail finance receivables by credit quality indicator and vintage, as of June 28, 2020, was as follows (in thousands):
The amortized cost of wholesale financial receivables, by credit quality indicator and vintage, was as follows as of June 28, 2020 (in thousands):
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Impaired Financing Receivables Under ASC 310 | Additional information related to the wholesale finance receivables on non-accrual status was as follows (in thousands):
At June 30, 2019, there were no wholesale receivables that were individually deemed to be impaired under ASC Topic 310, Receivables. Additional information related to the wholesale finance receivables that were individually deemed to be impaired at December 31, 2019 included the following (in thousands):
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Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables | The aging analysis of finance receivables was as follows (in thousands):
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Derivative Instruments and Hedging Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instrument Fair Value | The notional and fair values of the Company's derivative financial instruments under ASC Topic 815 were as follows (in thousands):
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Gain/(Loss) on Derivative Cash Flow Hedges Reclassified From AOCI Into Income | The amounts of gains and losses related to derivative financial instruments designated as cash flow hedges were as follows (in thousands):
The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges were as follows (in thousands):
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Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments were as follows (in thousands). Gains and losses on foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial Services interest expense.
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet information related to leases | Balance sheet information related to the Company's leases was as follows (in thousands):
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Future maturities of lease liabilities | Future maturities of the Company's operating lease liabilities as of June 28, 2020 were as follows (in thousands):
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Other lease information | Other lease information surrounding the Company's operating leases was as follows (dollars in thousands):
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Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt | Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following (in thousands):
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Schedule of Long-term Debt Instruments | Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following (in thousands):
(a)Euro denominated, €650.0 million par value remeasured to U.S. dollar at June 28, 2020 (b)Euro denominated, €600.0 million par value remeasured to U.S. dollar at June 28, 2020 and December 31, 2019, respectively
|
Asset-Backed Financing (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Related to the On-Balance Sheet Financing | The assets and liabilities related to the on-balance sheet asset-backed financings included in the Consolidated balance sheets were as follows (in thousands):
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Schedule of Servicing Activities | The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands):
The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands):
Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands):
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Transfer of Financial Assets Accounted for as Sales | Quarterly transfers of U.S. retail motorcycle finance receivables to SPEs, the respective proceeds, and the respective proceeds, net of discounts and issuance costs were as follows (in thousands):
Quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds were as follows (in thousands):
Quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds were as follows (in thousands):
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Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets and Liabilities Measured At Fair Value On A Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):
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Summary of The Fair Value and Carrying Value of The Company's Financial Instruments | The fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost were as follows (in thousands):
|
Product Warranty and Recall Campaigns (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty and Recall Liability | Changes in the Company’s warranty and recall liabilities were as follows (in thousands):
|
Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Costs | Components of net periodic benefit cost for the Company's defined benefit plans were as follows (in thousands):
|
Accumulated Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss were as follows (in thousands):
(a)Amounts reclassified are included in the computation of net periodic benefit cost, discussed further in Note 16
|
Business Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Select segment information is set forth below (in thousands):
|
Supplemental Consolidating Data (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations |
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Balance Sheet |
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Cash Flows |
|
Basis of Presentation and Use of Estimates (Details) |
6 Months Ended |
---|---|
Jun. 28, 2020
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Roll Forward] | |||
Balance, beginning of period | $ 29,745 | $ 32,568 | $ 29,055 |
Balance, end of period | $ 31,143 | $ 29,745 | $ 32,568 |
Revenue - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Recognized deferred revenue | $ 7.9 | $ 6.2 | $ 14.7 | $ 12.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-29 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation period | 12 months | 12 months | ||
Unearned revenue to be recognized | $ 16.3 | $ 16.3 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation period | ||||
Unearned revenue to be recognized | $ 14.8 | $ 14.8 |
Restructuring Activities - Restructuring Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Restructuring Cost and Reserve | ||||
Restructuring expense | $ 41,949 | $ 10,423 | $ 41,949 | $ 24,053 |
Motorcycles and Related Products | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | 41,005 | 10,423 | 41,005 | 24,053 |
Financial services | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | 944 | $ 0 | 944 | $ 0 |
2020 Restructuring Activities | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | 41,900 | 41,900 | ||
2020 Restructuring Activities | Motorcycles and Related Products | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | 41,000 | 41,000 | ||
2020 Restructuring Activities | Financial services | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | $ 900 | $ 900 |
Income Taxes (Details) |
6 Months Ended | |
---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||
Income tax rate | 3.70% | 24.10% |
Earnings Per Share - Reconciliation Of Earnings Per Share Basic And Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 28, 2020 |
Mar. 29, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Numerator: | ||||||
Net (loss) income | $ (92,217) | $ 69,695 | $ 195,631 | $ 127,945 | $ (22,522) | $ 323,576 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||
Basic weighted-average shares outstanding (in shares) | 153,199 | 158,813 | 153,103 | 159,061 | ||
Effect of dilutive securities - employee stock compensation plan (in shares) | 0 | 612 | 0 | 664 | ||
Diluted weighted-average shares outstanding (in shares) | 153,199 | 159,425 | 153,103 | 159,725 | ||
(Net loss) earnings per share: | ||||||
Basic (in dollars per share) | $ (0.60) | $ 1.23 | $ (0.15) | $ 2.03 | ||
Diluted (in dollars per share) | $ (0.60) | $ 1.23 | $ (0.15) | $ 2.03 |
Earnings Per Share - Additional Information (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Shares considered anti-dilutive and excluded from computation | 2.4 | 1.2 | 2.4 | 1.2 |
Additional Balance Sheet and Cash Flow Information - Marketable Securities (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Mutual funds | $ 48,725 | $ 52,575 | $ 51,543 |
Additional Balance Sheet and Cash Flow Information - Inventories, Net (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Inventory | |||
Raw materials and work in process | $ 199,300 | $ 235,433 | $ 161,828 |
Inventory at lower of FIFO cost or net realizable value | 485,765 | 659,997 | 529,249 |
Excess of FIFO over LIFO cost | (56,426) | (56,426) | (58,639) |
Total inventories, net | 429,339 | 603,571 | 470,610 |
Motorcycles | |||
Inventory | |||
Finished goods | 180,895 | 280,306 | 218,069 |
Parts & accessories and general merchandise | |||
Inventory | |||
Finished goods | $ 105,570 | $ 144,258 | $ 149,352 |
Finance Receivables - Finance Receivables, Net (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Mar. 29, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | $ 7,391,006 | $ 7,572,947 | $ 7,789,401 | |||
Allowance for credit losses | (411,015) | $ (335,496) | (198,581) | (194,996) | $ (190,872) | $ (189,885) |
Total allowance for credit loss | 6,979,991 | 7,374,366 | 7,594,405 | |||
Retail | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | 6,520,919 | 6,416,428 | 6,549,707 | |||
Allowance for credit losses | (389,758) | (311,368) | (188,501) | (186,722) | (181,426) | (182,098) |
Wholesale | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | 870,087 | 1,156,519 | 1,239,694 | |||
Allowance for credit losses | $ (21,257) | $ (24,128) | $ (10,080) | $ (8,274) | $ (9,446) | $ (7,787) |
Finance Receivables - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
|
Accounts, Notes, Loans and Financing Receivable | ||||
Reversal of accrued interest against interest income | $ 5.0 | $ 11.4 | ||
Retail | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Finance receivables, gross, 90 days or more past due and accruing interest | 16.0 | 16.0 | $ 48.0 | $ 30.4 |
Wholesale | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Finance receivables, gross, 90 days or more past due and accruing interest | $ 3.5 | $ 3.5 | $ 2.6 | $ 2.1 |
Finance Receivables - Wholesale Finance Receivables Impaired Under ASC 310 (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 28, 2020 |
Dec. 31, 2019 |
|
Receivables [Abstract] | ||
No related allowance recorded, Recorded Investment | $ 0 | $ 0 |
Related allowance recorded, Recorded Investment | 4,325 | 4,994 |
Total Recorded Investment | 4,325 | 4,994 |
No related allowance recorded, Unpaid Principal Balance | 0 | |
Related allowance recorded, Unpaid Principal Balance | 4,601 | |
Total Unpaid Principal Balance | 4,601 | |
Related allowance recorded, Related Allowance | 2,100 | |
No related allowance recorded, Average Recorded Investment | 0 | |
Related allowance recorded, Average Recorded Investment | 4,976 | |
Total Average Recorded Investment | 4,976 | |
No related allowance recorded, Interest Income Recognized | 0 | 0 |
Related allowance recorded, Interest Income Recognized | 0 | 0 |
Total Interest Income Recognized | $ 0 | $ 0 |
Goodwill, Intangible and Long-Lived Assets (Details) $ in Millions |
Mar. 04, 2019
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total consideration of the transaction | $ 14.9 |
Cash paid at acquisition | 7.0 |
Acquired goodwill | 9.5 |
Intangible assets acquired | $ 5.3 |
Derivative Instruments and Hedging Activities - Gain Loss Recognized In Income On Hedged Derivatives (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | $ (391) | $ (1,455) | $ 252 | $ (251) |
Foreign currency contracts | Cost of Sales | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | (522) | (1,004) | 1,672 | (117) |
Commodity contracts | Cost of Sales | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | 558 | (310) | (993) | 7 |
Interest rate cap | Cost of Sales | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | $ (427) | $ (141) | $ (427) | $ (141) |
Leases - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 5 years | 5 years | ||
Termination period | 1 year | |||
Operating lease expense | $ 6.5 | $ 6.4 | $ 13.8 | $ 12.7 |
Variable lease cost | $ 1.3 | $ 2.0 | $ 3.2 | $ 3.2 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 12 years | 12 years |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Assets | |||
Lease assets | $ 53,031 | $ 61,618 | $ 54,913 |
Liabilities | |||
Accrued liabilities | 18,154 | 19,013 | 18,133 |
Lease liabilities | 36,394 | 44,447 | 38,365 |
Lease liability | $ 54,548 | $ 63,460 | $ 56,498 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Leases - Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
2020 | $ 10,146 | ||
2021 | 18,388 | ||
2022 | 13,410 | ||
2023 | 6,543 | ||
2024 | 4,556 | ||
Thereafter | 4,825 | ||
Future lease payments | 57,868 | ||
Present value discount | (3,320) | ||
Lease liabilities | $ 54,548 | $ 63,460 | $ 56,498 |
Leases - Other Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Leases [Abstract] | |||||
Cash outflows for amounts included in the measurement of lease liabilities | $ 5,242 | $ 4,510 | $ 10,619 | $ 9,871 | |
Right-of-use assets obtained in exchange for lease obligations | $ 1,096 | $ 3,964 | $ 1,653 | $ 4,262 | |
Weighted average remaining lease term | 4 years 10 days | 4 years 5 months 8 days | 4 years 10 days | 4 years 5 months 8 days | 4 years 8 months 4 days |
Weighted-average discount rate | 3.30% | 3.20% | 3.30% | 3.20% | 2.10% |
Debt - Debt With Contractual Term Less Than One Year (Details) - USD ($) $ in Thousands |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Short-term Debt | |||
Short-term debt | $ 1,547,388 | $ 571,995 | $ 405,695 |
Unsecured commercial paper | |||
Short-term Debt | |||
Short-term debt | 1,397,388 | 571,995 | 405,695 |
364-day credit facility borrowings | |||
Short-term Debt | |||
Short-term debt | $ 150,000 | $ 0 | $ 0 |
Fair Value - Summary of Assets And Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Assets: | |||
Cash equivalents | $ 3,572,900 | $ 624,832 | $ 619,600 |
Marketable securities | 48,725 | 52,575 | 51,543 |
Derivative financial instruments | 29,057 | 12,649 | 6,920 |
Assets, fair value | 3,650,682 | 690,056 | 678,063 |
Liabilities: | |||
Derivative financial instruments | 41,419 | 13,934 | 17,555 |
Level 1 | |||
Assets: | |||
Cash equivalents | 3,522,900 | 459,885 | 619,600 |
Marketable securities | 48,725 | 52,575 | 51,543 |
Derivative financial instruments | 0 | 0 | 0 |
Assets, fair value | 3,571,625 | 512,460 | 671,143 |
Liabilities: | |||
Derivative financial instruments | 0 | 0 | 0 |
Level 2 | |||
Assets: | |||
Cash equivalents | 50,000 | 164,947 | 0 |
Marketable securities | 0 | 0 | 0 |
Derivative financial instruments | 29,057 | 12,649 | 6,920 |
Assets, fair value | 79,057 | 177,596 | 6,920 |
Liabilities: | |||
Derivative financial instruments | $ 41,419 | $ 13,934 | $ 17,555 |
Fair Value - Additional Information (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions |
Jun. 28, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Fair Value Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Repossessed inventory | $ 2.6 | $ 11.9 | $ 5.9 |
Level 2 | Estimate of Fair Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Repossessed inventory | $ 15.8 | $ 21.4 | $ 19.4 |
Product Warranty and Recall Campaigns - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Product Information | |||
Liability for recall campaigns | $ 32.0 | $ 47.6 | $ 36.4 |
Operating Expense | |||
Product Information | |||
Supplier recoveries | $ 28.0 | ||
Battery For Electric Motorcycles | |||
Product Information | |||
Unlimited Warranty, Period | 5 years | ||
Parts & accessories and general merchandise | |||
Product Information | |||
Standard product warranty, period | 1 year | ||
All Countries, Excluding Japan | Motorcycles | |||
Product Information | |||
Standard product warranty, period | 2 years | ||
Japan | Motorcycles | |||
Product Information | |||
Standard product warranty, period | 3 years |
Product Warranty and Recall Campaigns - Warranty and Recall Liability (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance, beginning of period | $ 86,308 | $ 122,387 | $ 89,793 | $ 131,740 |
Warranties issued during the period | 6,232 | 17,350 | 17,257 | 28,967 |
Settlements made during the period | (10,737) | (26,768) | (24,894) | (46,385) |
Recalls and changes to pre-existing warranty liabilities | 1,710 | (4,165) | 1,357 | (5,518) |
Balance, end of period | $ 83,513 | $ 108,804 | $ 83,513 | $ 108,804 |
Employee Benefit Plans - Components Of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020 |
Jun. 30, 2019 |
Jun. 28, 2020 |
Jun. 30, 2019 |
|
Pension and SERPA Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6,806 | $ 6,632 | $ 13,612 | $ 13,264 |
Interest cost | 19,111 | 21,371 | 38,223 | 42,742 |
Expected return on plan assets | (33,764) | (35,581) | (67,528) | (71,162) |
Amortization of unrecognized: Prior service credit | (272) | (483) | (544) | (966) |
Amortization of unrecognized: Net loss | 16,372 | 11,128 | 32,744 | 22,256 |
Net periodic benefit cost | 8,253 | 3,067 | 16,507 | 6,134 |
Postretirement Healthcare Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,202 | 1,185 | 2,403 | 2,369 |
Interest cost | 2,336 | 2,938 | 4,672 | 5,876 |
Expected return on plan assets | (3,467) | (3,507) | (6,934) | (7,014) |
Amortization of unrecognized: Prior service credit | (595) | (595) | (1,190) | (1,190) |
Amortization of unrecognized: Net loss | 123 | 69 | 246 | 138 |
Special retirement benefit cost | 0 | 1,583 | 0 | 1,583 |
Curtailment gain | 0 | (960) | 0 | (960) |
Net periodic benefit cost | $ (401) | $ 713 | $ (803) | $ 802 |
Commitments and Contingencies (Details) - York, Pennsylvania Facility |
6 Months Ended |
---|---|
Jun. 28, 2020 | |
Site Contingency | |
Site contingency portion of total cost, percentage | 47.00% |
Navy | |
Site Contingency | |
Site contingency portion of total cost, percentage | 53.00% |
Business Segments (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 28, 2020
USD ($)
segment
|
Jun. 30, 2019
USD ($)
|
|
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information | ||||
Selling, administrative and engineering expense | $ 224,365 | $ 307,617 | $ 502,336 | $ 576,242 |
Restructuring expense | 41,949 | 10,423 | 41,949 | 24,053 |
Motorcycles and Related Products cost of goods sold | 561,646 | 979,266 | 1,342,514 | 1,827,464 |
Operating (loss) income | (116,099) | 256,257 | (8,586) | 423,369 |
Motorcycles and Related Products | ||||
Segment Reporting Information | ||||
Motorcycles revenue | 669,274 | 1,434,004 | 1,769,062 | 2,629,641 |
Gross profit | 107,628 | 454,738 | 426,548 | 802,177 |
Selling, administrative and engineering expense | 187,647 | 263,587 | 422,000 | 489,015 |
Restructuring expense | 41,005 | 10,423 | 41,005 | 24,053 |
Operating (loss) income | (121,024) | 180,728 | (36,457) | 289,109 |
Financial services | ||||
Segment Reporting Information | ||||
Restructuring expense | 944 | 0 | 944 | 0 |
Financial Services | 195,953 | 198,615 | 394,409 | 387,358 |
Motorcycles and Related Products cost of goods sold | 190,084 | 123,086 | 365,594 | 253,098 |
Operating (loss) income | $ 4,925 | $ 75,529 | $ 27,871 | $ 134,260 |
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