Supplemental Consolidating Data

The supplemental consolidating data for the periods noted is presented for informational purposes. The supplemental consolidating data may be different than segment information presented elsewhere due to the allocation of intercompany eliminations to reporting segments. All supplemental data is presented in thousands.



	Three months ended September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,091,887	$	—	$	(2,619	)	$	1,089,268
Financial services	—		161,438		(411		)	161,027
Total revenue	1,091,887		161,438		(3,030		)	1,250,295
Costs and expenses:
Motorcycles and related products cost of goods sold	711,364		—		—			711,364
Financial services interest expense	—		46,231		—			46,231
Financial services provision for credit losses	—		9,069		—			9,069
Selling, administrative and engineering expense	224,393		35,996		(3,030		)	257,359
Restructuring expense	9,170		—		—			9,170
Total costs and expenses	944,927		91,296		(3,030		)	1,033,193
Operating income	146,960		70,142		—			217,102
Investment income	1,447		—		—			1,447
Interest expense	11,438		—		—			11,438
Income before provision for income taxes	136,969		70,142		—			207,111
Provision for income taxes	47,859		25,251		—			73,110
Income from continuing operations	89,110		44,891		—			134,001
Income from discontinued operations, net of tax	—		—		—			—
Net income	$	89,110	$	44,891	$	—		$	134,001
	Nine months ended September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	3,939,673	$	—	$	(7,989	)	$	3,931,684
Financial services	—		478,187		(225		)	477,962
Total revenue	3,939,673		478,187		(8,214		)	4,409,646
Costs and expenses:
Motorcycles and related products cost of goods sold	2,533,453		—		—			2,533,453
Financial services interest expense	—		146,199		—			146,199
Financial services provision for credit losses	—		12,823		—			12,823
Selling, administrative and engineering expense	709,240		105,231		(8,214		)	806,257
Restructuring expense	26,841		—		—			26,841
Total costs and expenses	3,269,534		264,253		(8,214		)	3,525,573
Operating income	670,139		213,934		—			884,073
Investment income	230,611		—		(225,000		)	5,611
Interest expense	34,528		—		—			34,528
Income before provision for income taxes	866,222		213,934		(225,000		)	855,156
Provision for income taxes	224,854		77,016		—			301,870
Income from continuing operations	641,368		136,918		(225,000		)	553,286
Income from discontinued operations, net of tax	—		—		—			—
Net income	$	641,368	$	136,918	$	(225,000	)	$	553,286



	Three months ended September 25, 2011
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,234,913	$	—	$	(2,214	)	$	1,232,699
Financial services	—		165,512		(955		)	164,557
Total revenue	1,234,913		165,512		(3,169		)	1,397,256
Costs and expenses:
Motorcycles and related products cost of goods sold	817,308		—		—			817,308
Financial services interest expense	—		61,907		—			61,907
Financial services provision for credit losses	—		6,189		—			6,189
Selling, administrative and engineering expense	223,213		36,691		(3,169		)	256,735
Restructuring expense	12,429		—		—			12,429
Total costs and expenses	1,052,950		104,787		(3,169		)	1,154,568
Operating income	181,963		60,725		—			242,688
Investment income	2,479		—		—			2,479
Interest expense	11,270		—		—			11,270
Income before provision for income taxes	173,172		60,725		—			233,897
Provision for income taxes	27,906		22,397		—			50,303
Income from continuing operations	145,266		38,328		—			183,594
Loss from discontinued operations, net of tax	—		—		—			—
Net income	$	145,266	$	38,328	$	—		$	183,594
	Nine months ended September 25, 2011
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	3,643,206	$	—	$	(7,719	)	$	3,635,487
Financial services	—		493,782		(1,486		)	492,296
Total revenue	3,643,206		493,782		(9,205		)	4,127,783
Costs and expenses:
Motorcycles and related products cost of goods sold	2,399,962		—		—			2,399,962
Financial services interest expense	—		176,933		—			176,933
Financial services provision for credit losses	—		5,005		—			5,005
Selling, administrative and engineering expense	662,376		106,103		(9,205		)	759,274
Restructuring expense	49,022		—		—			49,022
Total costs and expenses	3,111,360		288,041		(9,205		)	3,390,196
Operating income	531,846		205,741		—			737,587
Investment income	130,625		—		(125,000		)	5,625
Interest expense	34,101		—		—			34,101
Income before provision for income taxes	628,370		205,741		(125,000		)	709,111
Provision for income taxes	141,074		74,603		—			215,677
Income from continuing operations	487,296		131,138		(125,000		)	493,434
Loss from discontinued operations, net of tax	—		—		—			—
Net income	$	487,296	$	131,138	$	(125,000	)	$	493,434



	September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,048,429	$	746,712	$	—		$	1,795,141
Marketable securities	136,376		—		—			136,376
Accounts receivable, net	623,021		—		(366,828		)	256,193
Finance receivables, net	—		1,212,977		—			1,212,977
Restricted finance receivables held by variable interest entities, net	—		513,084		—			513,084
Inventories	379,129		—		—			379,129
Restricted cash held by variable interest entities	—		217,400		—			217,400
Other current assets	177,278		60,118		—			237,396
Total current assets	2,364,233		2,750,291		(366,828		)	4,747,696
Finance receivables, net	—		2,285,309		—			2,285,309
Restricted finance receivables held by variable interest entities, net	—		1,904,297		—			1,904,297
Property, plant and equipment, net	735,719		29,116		—			764,835
Goodwill	28,928		—		—			28,928
Other long-term assets	338,987		20,193		(75,062		)	284,118
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	251,755	$	408,783	$	(366,828	)	$	293,710
Accrued liabilities	521,867		87,936		(3,725		)	606,078
Short-term debt	—		404,693		—			404,693
Current portion of long-term debt	—		437,938		—			437,938
Current portion of long-term debt held by variable interest entities	—		559,256		—			559,256
Total current liabilities	773,622		1,898,606		(370,553		)	2,301,675
Long-term debt	303,000		3,036,604		—			3,339,604
Long-term debt held by variable interest entities	—		1,132,809		—			1,132,809
Pension liability	125,664		—		—			125,664
Postretirement healthcare benefits	261,564		—		—			261,564
Other long-term liabilities	134,509		15,995		—			150,504
Commitments and contingencies (Note 17)
Total shareholders’ equity	1,869,508		905,192		(71,337		)	2,703,363
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183



	December 31, 2011
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	943,330	$	583,620	$	—		$	1,526,950
Marketable securities	153,380		—		—			153,380
Accounts receivable, net	393,615		—		(174,576		)	219,039
Finance receivables, net	—		1,168,603		—			1,168,603
Restricted finance receivables held by variable interest entities, net	—		591,864		—			591,864
Inventories	418,006		—		—			418,006
Restricted cash held by variable interest entities	—		229,655		—			229,655
Other current assets	167,423		67,286		—			234,709
Total current assets	2,075,754		2,641,028		(174,576		)	4,542,206
Finance receivables, net	—		1,754,441		—			1,754,441
Restricted finance receivables held by variable interest entities, net	—		2,271,773		—			2,271,773
Property, plant and equipment, net	779,330		30,129		—			809,459
Goodwill	29,081		—		—			29,081
Other long-term assets	322,379		17,460		(72,635		)	267,204
	$	3,206,544	$	6,714,831	$	(247,211	)	$	9,674,164
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	220,957	$	209,332	$	(174,576	)	$	255,713
Accrued liabilities	482,838		85,038		(3,704		)	564,172
Short-term debt	—		838,486		—			838,486
Current portion of long-term debt	—		399,916					399,916
Current portion of long-term debt held by variable interest entities	—		640,331		—			640,331
Total current liabilities	703,795		2,173,103		(178,280		)	2,698,618
Long-term debt	303,000		2,093,871		—			2,396,871
Long-term debt held by variable interest entities	—		1,447,015		—			1,447,015
Pension liability	302,483		—		—			302,483
Postretirement healthcare benefits	268,582		—		—			268,582
Other long-term liabilities	126,036		14,303		—			140,339
Commitments and contingencies (Note 17)
Total shareholders’ equity	1,502,648		986,539		(68,931		)	2,420,256
	$	3,206,544	$	6,714,831	$	(247,211	)	$	9,674,164



	September 25, 2011
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	995,855	$	432,898	$	—		$	1,428,753
Marketable securities	179,285		—		—			179,285
Accounts receivable, net	590,611		—		(305,279		)	285,332
Finance receivables, net	—		1,104,056		—			1,104,056
Restricted finance receivables held by variable interest entities, net	—		586,144		—			586,144
Inventories	345,963		—		—			345,963
Restricted cash held by variable interest entities	—		238,208		—			238,208
Other current assets	159,814		57,631		—			217,445
Total current assets	2,271,528		2,418,937		(305,279		)	4,385,186
Finance receivables, net	—		2,095,839		—			2,095,839
Restricted finance receivables held by variable interest entities, net	—		2,119,789		—			2,119,789
Property, plant and equipment, net	746,230		28,983		—			775,213
Goodwill	30,004		—		—			30,004
Other long-term assets	344,073		25,874		(71,619		)	298,328
	$	3,391,835	$	6,689,422	$	(376,898	)	$	9,704,359
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	246,210	$	348,559	$	(305,279	)	$	289,490
Accrued liabilities	627,972		107,414		(3,443		)	731,943
Short-term debt	—		774,971		—			774,971
Current portion of long-term debt held by variable interest entities	—		644,779		—			644,779
Total current liabilities	874,182		1,875,723		(308,722		)	2,441,183
Long-term debt	303,000		2,501,605		—			2,804,605
Long-term debt held by variable interest entities	—		1,350,294		—			1,350,294
Pension liability	106,795		—		—			106,795
Postretirement healthcare liability	262,096		—		—			262,096
Other long-term liabilities	124,031		14,095		—			138,126
Commitments and contingencies (Note 17)
Total shareholders’ equity	1,721,731		947,705		(68,176		)	2,601,260
	$	3,391,835	$	6,689,422	$	(376,898	)	$	9,704,359



	Nine months ended September 30, 2012
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Income from continuing operations	$	641,368		136,918		$	(225,000	)	$	553,286
Adjustments to reconcile income from continuing operations to cash provided by operating activities:
Depreciation	122,570			4,873		—			127,443
Amortization of deferred loan origination costs	—			58,438		—			58,438
Amortization of financing origination fees	355			7,107		—			7,462
Provision for employee long-term benefits	48,808			1,540		—			50,348
Contributions to pension and postretirement plans	(220,733		)	—		—			(220,733		)
Stock compensation expense	27,881			2,406		—			30,287
Net change in wholesale finance receivables	—			—		5,570			5,570
Provision for credit losses	—			12,823		—			12,823
Pension and postretirement healthcare plan curtailment and settlement expense	—			—		—			—
Foreign currency adjustments	8,692			—		—			8,692
Other, net	2,252			7,159		—			9,411
Change in current assets and current liabilities:
Accounts receivable	(230,156		)	—		192,252			(37,904		)
Finance receivables—accrued interest and other	—			1,597		—			1,597
Inventories	36,463			—		—			36,463
Accounts payable and accrued liabilities	86,513			205,381		(192,252		)	99,642
Restructuring reserves	(9,177		)	—		—			(9,177		)
Derivative instruments	739			(128	)	—			611
Other	(19,550		)	(2,211	)	—			(21,761		)
Total adjustments	(145,343		)	298,985		5,570			159,212
Net cash provided by operating activities of continuing operations	496,025			435,903		(219,430		)	712,498



	Nine months ended September 30, 2012
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities of continuing operations:
Capital expenditures	(91,469		)	(3,860		)	—			(95,329		)
Origination of finance receivables	—			(5,315,732		)	2,987,079			(2,328,653		)
Collections of finance receivables	—			5,123,674			(2,992,649		)	2,131,025
Purchases of marketable securities	(4,993		)	—			—			(4,993		)
Sales and redemptions of marketable securities	23,046			—			—			23,046
Net cash (used by) provided by investing activities of continuing operations	(73,416		)	(195,918		)	(5,570		)	(274,904		)
Cash flows from financing activities of continuing operations:
Proceeds from issuance of medium-term notes	—			993,737			—			993,737
Loan to HDFS	—			—			—			—
Proceeds from securitization of debt	—			763,895			—			763,895
Repayments of securitization debt	—			(1,161,592		)	—			(1,161,592		)
Net decrease in credit facilities and unsecured commercial paper	—			(634,874		)	—			(634,874		)
Net borrowings of asset-backed commercial paper	—			182,131			—			182,131
Net repayments of asset-backed commercial paper	—			(6,538		)	—			(6,538		)
Net change in restricted cash	—			12,255			—			12,255
Dividends paid	(106,560		)	(225,000		)	225,000			(106,560		)
Purchase of common stock for treasury	(257,981		)	—			—			(257,981		)
Excess tax benefits from share based payments	16,390			—			—			16,390
Issuance of common stock under employee stock option plans	36,342			—			—			36,342
Net cash used by financing activities of continuing operations	(311,809		)	(75,986		)	225,000			(162,795		)
Effect of exchange rate changes on cash and cash equivalents of continuing operations	(5,701		)	(907		)	—			(6,608		)
Net (decrease) increase in cash and cash equivalents of continuing operations	105,099			163,092			—			268,191
Cash flows from discontinued operations:
Cash flows from operating activities of discontinued operations	—			—			—			—
Cash flows from investing activities of discontinued operations	—			—			—			—
Effect of exchange rate changes on cash and cash equivalents of discontinued operations	—			—			—			—
	—			—			—			—
Net (decrease) increase in cash and cash equivalents	$	105,099		$	163,092		$	—		$	268,191
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	943,330		$	583,620		$	—		$	1,526,950
Cash and cash equivalents of discontinued operations—beginning of period	—			—			—			—
Net (decrease) increase in cash and cash equivalents	105,099			163,092			—			268,191
Less: Cash and cash equivalents of discontinued operations—end of period	—			—			—			—
Cash and cash equivalents—end of period	$	1,048,429		$	746,712		$	—		$	1,795,141



	Nine months ended September 25, 2011
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	487,296		$	131,138	$	(125,000	)	$	493,434
Loss from discontinued operations	—			—		—			—
Income from continuing operations	487,296			131,138		(125,000		)	493,434
Adjustments to reconcile income from continuing operations to cash provided by operating activities:
Depreciation	127,174			4,764		—			131,938
Amortization of deferred loan origination costs	—			59,272		—			59,272
Amortization of financing origination fees	355			7,816		—			8,171
Provision for employee long-term benefits	49,110			1,873		—			50,983
Contributions to pension and postretirement plans	(207,829		)	—		—			(207,829		)
Stock compensation expense	26,282			2,034		—			28,316
Net change in wholesale finance receivables	—			—		77,519			77,519
Provision for credit losses	—			5,005		—			5,005
Loss on extinguishment of debt	—			8,671		—			8,671
Pension and postretirement healthcare plan curtailment and settlement expense	236			—		—			236
Foreign currency adjustments	11,381			—		—			11,381
Other, net	(14,923		)	25,959		—			11,036
Change in current assets and current liabilities:
Accounts receivable	(132,823		)	—		113,350			(19,473		)
Finance receivables—accrued interest and other	—			7,069		—			7,069
Inventories	(19,451		)	—		—			(19,451		)
Accounts payable and accrued liabilities	197,233			125,929		(65,789		)	257,373
Restructuring reserves	2,664			—		—			2,664
Derivative instruments	(2,297		)	18		—			(2,279		)
Other	(930		)	46,070		(47,575		)	(2,435		)
Total adjustments	36,182			294,480		77,505			408,167
Net cash provided by (used by) operating activities of continuing operations	523,478			425,618		(47,495		)	901,601



	Nine months ended September 25, 2011
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities of continuing operations:
Capital expenditures	(100,299		)	(5,816		)	—			(106,115		)
Origination of finance receivables	—			(4,884,163		)	2,720,019			(2,164,144		)
Collections of finance receivables	—			4,927,907			(2,797,538		)	2,130,369
Purchases of marketable securities	(142,653		)	—			—			(142,653		)
Sales and redemptions of marketable securities	104,975			—			—			104,975
Net cash (used by) provided by investing activities of continuing operations	(137,977		)	37,928			(77,519		)	(177,568		)
Cash flows from financing activities of continuing operations:
Proceeds from issuance of medium-term notes	—			394,277			—			394,277
Proceeds from securitization debt	—			571,276			—			571,276
Repayments of securitization debt	—			(1,333,541		)	—			(1,333,541		)
Net borrowings of asset-backed commercial paper	—			(483		)	—			(483		)
Net decrease in credit facilities and unsecured commercial paper	—			182,058			—			182,058
Net change in restricted cash	—			50,679			—			50,679
Dividends paid	(82,557		)	(125,000		)	125,000			(82,557		)
Purchase of common stock for treasury	(97,456		)	—			—			(97,456		)
Excess tax benefits from share based payments	2,702			—			—			2,702
Issuance of common stock under employee stock option plans	7,763			—			—			7,763
Net cash (used by) provided by financing activities of continuing operations	(169,548		)	(260,734		)	125,000			(305,282		)
Effect of exchange rate changes on cash and cash equivalents of continuing operations	(11,815		)	(56		)	14			(11,857		)
Net (decrease) increase in cash and cash equivalents of continuing operations	204,138			202,756			—			406,894
Cash flows from discontinued operations:
Cash flows from operating activities of discontinued operations	(74		)	—			—			(74		)
Cash flows from investing activities of discontinued operations	—			—			—			—
Effect of exchange rate changes on cash and cash equivalents of discontinued operations	—			—			—			—
	(74		)	—			—			(74		)
Net (decrease) increase in cash and cash equivalents	$	204,064		$	202,756		$	—		$	406,820
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	791,791		$	230,142		$	—		$	1,021,933
Cash and cash equivalents of discontinued operations—beginning of period	—			—			—			—
Net (decrease) increase in cash and cash equivalents	204,064			202,756			—			406,820
Less: Cash and cash equivalents of discontinued operations—end of period	—			—			—			—
Cash and cash equivalents—end of period	$	995,855		$	432,898		$	—		$	1,428,753