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 March 31, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,416,809	$	—	$	(2,561	)	$	1,414,248
Financial services	—		157,297		(332		)	156,965
Total revenue	1,416,809		157,297		(2,893		)	1,571,213
Costs and expenses:
Motorcycles and related products cost of goods sold	894,806		—		—			894,806
Financial services interest expense	—		40,554		—			40,554
Financial services provision for credit losses	—		13,110		—			13,110
Selling, administrative and engineering expense	240,076		34,316		(2,893		)	271,499
Restructuring expense	2,938		—		—			2,938
Total costs and expenses	1,137,820		87,980		(2,893		)	1,222,907
Operating income	278,989		69,317		—			348,306
Investment income	186,615		—		(185,000		)	1,615
Interest expense	11,391		—		—			11,391
Income before provision for income taxes	454,213		69,317		(185,000		)	338,530
Provision for income taxes	89,286		25,115		—			114,401
Net income	$	364,927	$	44,202	$	(185,000	)	$	224,129



	Three months ended April 1, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,275,783	$	—	$	(2,414	)	$	1,273,369
Financial services	—		155,906		416			156,322
Total revenue	1,275,783		155,906		(1,998		)	1,429,691
Costs and expenses:
Motorcycles and related products cost of goods sold	816,859		—		—			816,859
Financial services interest expense	—		51,256		—			51,256
Financial services provision for credit losses	—		9,014		—			9,014
Selling, administrative and engineering expense	236,579		31,072		(1,998		)	265,653
Restructuring expense	11,451		—		—			11,451
Total costs and expenses	1,064,889		91,342		(1,998		)	1,154,233
Operating income	210,894		64,564		—			275,458
Investment income	226,933		—		(225,000		)	1,933
Interest expense	11,495		—		—			11,495
Income before provision for income taxes	426,332		64,564		(225,000		)	265,896
Provision for income taxes	70,618		23,243		—			93,861
Net income	$	355,714	$	41,321	$	(225,000	)	$	172,035



	March 31, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	672,977	$	345,782	$	—		$	1,018,759
Marketable securities	135,246		—		—			135,246
Accounts receivable, net	966,688		—		(707,015		)	259,673
Finance receivables, net	—		2,074,036		—			2,074,036
Inventories	416,050		—		—			416,050
Restricted cash	—		197,025		—			197,025
Other current assets	174,125		58,065		—			232,190
Total current assets	2,365,086		2,674,908		(707,015		)	4,332,979
Finance receivables, net	—		3,959,903		—			3,959,903
Property, plant and equipment, net	758,333		31,912		—			790,245
Goodwill	28,861		—		—			28,861
Other long-term assets	282,675		16,703		(76,245		)	223,133
	$	3,434,955	$	6,683,426	$	(783,260	)	$	9,335,121
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	291,162	$	775,871	$	(707,015	)	$	360,018
Accrued liabilities	369,127		98,467		(3,277		)	464,317
Short-term debt	—		687,705		—			687,705
Current portion of long-term debt	303,000		412,143		—			715,143
Total current liabilities	963,289		1,974,186		(710,292		)	2,227,183
Long-term debt	—		3,892,469		—			3,892,469
Pension liability	152,132		—		—			152,132
Postretirement healthcare benefits	274,597		—		—			274,597
Other long-term liabilities	114,536		17,156		—			131,692
Shareholders’ equity	1,930,401		799,615		(72,968		)	2,657,048
	$	3,434,955	$	6,683,426	$	(783,260	)	$	9,335,121



	December 31, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	727,716	$	340,422	$	—		$	1,068,138
Marketable securities	135,634		—		—			135,634
Accounts receivable, net	781,642		—		(551,563		)	230,079
Finance receivables, net	—		1,743,045		—			1,743,045
Inventories	393,524		—		—			393,524
Restricted cash	—		188,008		—			188,008
Other current assets	230,905		57,609		3,994			292,508
Total current assets	2,269,421		2,329,084		(547,569		)	4,050,936
Finance receivables, net	—		4,038,807		—			4,038,807
Property, plant and equipment, net	783,068		32,396		—			815,464
Goodwill	29,530		—		—			29,530
Other long-term assets	292,764		19,468		(76,196		)	236,036
	$	3,374,783	$	6,419,755	$	(623,765	)	$	9,170,773
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	221,064	$	587,885	$	(551,563	)	$	257,386
Accrued liabilities	439,144		74,447		—			513,591
Short-term debt	—		294,943		—			294,943
Current portion of long-term debt	—		437,162					437,162
Total current liabilities	660,208		1,394,437		(551,563		)	1,503,082
Long-term debt	303,000		4,067,544		—			4,370,544
Pension liability	330,294		—		—			330,294
Postretirement healthcare benefits	278,062		—		—			278,062
Other long-term liabilities	114,476		16,691		—			131,167
Shareholders’ equity	1,688,743		941,083		(72,202		)	2,557,624
	$	3,374,783	$	6,419,755	$	(623,765	)	$	9,170,773



	April 1, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	929,028	$	347,309	$	—		$	1,276,337
Marketable securities	134,946		—		—			134,946
Accounts receivable, net	581,569		—		(317,297		)	264,272
Finance receivables, net	—		1,885,489		—			1,885,489
Inventories	467,941		—		—			467,941
Restricted cash	—		246,995		—			246,995
Other current assets	174,053		63,497		—			237,550
Total current assets	2,287,537		2,543,290		(317,297		)	4,513,530
Finance receivables, net	—		3,991,914		—			3,991,914
Property, plant and equipment, net	761,191		29,873		—			791,064
Goodwill	29,740		—		—			29,740
Other long-term assets	336,167		15,970		(73,038		)	279,099
	$	3,414,635	$	6,581,047	$	(390,335	)	$	9,605,347
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	280,738	$	392,461	$	(317,297	)	$	355,902
Accrued liabilities	478,227		102,722		(3,330		)	577,619
Short-term debt	—		629,143		—			629,143
Current portion of long-term debt	—		1,020,563		—			1,020,563
Total current liabilities	758,965		2,144,889		(320,627		)	2,583,227
Long-term debt	303,000		3,615,384		—			3,918,384
Pension liability	118,212		—		—			118,212
Postretirement healthcare liability	265,871		—		—			265,871
Other long-term liabilities	130,278		14,716		—			144,994
Shareholders’ equity	1,838,309		806,058		(69,708		)	2,574,659
	$	3,414,635	$	6,581,047	$	(390,335	)	$	9,605,347



	Three months ended March 31, 2013
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net Income	$	364,927		44,202			$	(185,000	)	$	224,129
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	41,484			1,366			—			42,850
Amortization of deferred loan origination costs	—			19,753			—			19,753
Amortization of financing origination fees	118			2,086			—			2,204
Provision for employee long-term benefits	16,684			—			—			16,684
Contributions to pension and postretirement plans	(182,047		)	—			—			(182,047		)
Stock compensation expense	10,330			766			—			11,096
Net change in wholesale finance receivables	—			—			(336,927		)	(336,927		)
Provision for credit losses	—			13,110			—			13,110
Foreign currency adjustments	9,846			—			—			9,846
Other, net	(1,759		)	(46		)	—			(1,805		)
Change in current assets and current liabilities:
Accounts receivable	(291,616		)	—			255,451			(36,165		)
Finance receivables—accrued interest and other	—			1,246			—			1,246
Inventories	(28,613		)	—			—			(28,613		)
Accounts payable and accrued liabilities	21,476			313,836			(255,451		)	79,861
Restructuring reserves	(12,388		)	—			—			(12,388		)
Derivative instruments	(328		)	(14		)	—			(342		)
Other	66,976			2,043			—			69,019
Total adjustments	(349,837		)	354,146			(336,927		)	(332,618		)
Net cash provided by (used by) operating activities	15,090			398,348			(521,927		)	(108,489		)
Cash flows from investing activities:
Capital expenditures	(21,379		)	(882		)	—			(22,261		)
Origination of finance receivables	—			(1,744,023		)	1,121,650			(622,373		)
Collections of finance receivables	—			1,450,243			(784,723		)	665,520
Other	6,656			—			—			6,656
Net cash (used by) provided by investing activities	(14,723		)	(294,662		)	336,927			27,542
Cash flows from financing activities:
Loan to HDFS	100,000			(100,000		)	—			—
Repayments of securitization debt	—			(178,923		)	—			(178,923		)
Net decrease in credit facilities and unsecured commercial paper	—			392,564			—			392,564
Net borrowings of asset-backed commercial paper	—			(17,063		)	—			(17,063		)
Net change in restricted cash	—			(9,017		)	—			(9,017		)
Dividends paid	(47,308		)	(185,000		)	185,000			(47,308		)
Purchase of common stock for treasury	(126,411		)	—			—			(126,411		)
Excess tax benefits from share based payments	14,468			—			—			14,468
Issuance of common stock under employee stock option plans	13,887			—			—			13,887
Net cash used by financing activities	(45,364		)	(97,439		)	185,000			42,197
Effect of exchange rate changes on cash and cash equivalents	(9,742		)	(887		)	—			(10,629		)
Net (decrease) increase in cash and cash equivalents	$	(54,739	)	$	5,360		$	—		$	(49,379	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	727,716		$	340,422		$	—		$	1,068,138
Net (decrease) increase in cash and cash equivalents	(54,739		)	5,360			—			(49,379		)
Cash and cash equivalents—end of period	$	672,977		$	345,782		$	—		$	1,018,759



	Three months ended April 1, 2012
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	355,714		$	41,321		$	(225,000	)	$	172,035
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	41,708			1,495			—			43,203
Amortization of deferred loan origination costs	—			18,547			—			18,547
Amortization of financing origination fees	118			2,625			—			2,743
Provision for employee long-term benefits	16,780			513			—			17,293
Contributions to pension and postretirement plans	(206,832		)	—			—			(206,832		)
Stock compensation expense	10,967			777			—			11,744
Net change in wholesale finance receivables	—			—			(151,046		)	(151,046		)
Provision for credit losses	—			9,014			—			9,014
Foreign currency adjustments	(2,911		)	—			—			(2,911		)
Other, net	(1,954		)	3,459			—			1,505
Change in current assets and current liabilities:
Accounts receivable	(186,466		)	—			142,721			(43,745		)
Finance receivables—accrued interest and other	—			3,299			—			3,299
Inventories	(47,168		)	—			—			(47,168		)
Accounts payable and accrued liabilities	57,993			202,188			(142,721		)	117,460
Restructuring reserves	1,296			—			—			1,296
Derivative instruments	(390		)	(96		)	—			(486		)
Other	(18,058		)	(1,509		)	—			(19,567		)
Total adjustments	(334,917		)	240,312			(151,046		)	(245,651		)
Net cash provided by (used by) operating activities	20,797			281,633			(376,046		)	(73,616		)
Cash flows from investing activities:
Capital expenditures	(23,441		)	(1,239		)	—			(24,680		)
Origination of finance receivables	—			(1,617,867		)	972,620			(645,247		)
Collections of finance receivables	—			1,503,478			(821,574		)	681,904
Sales and redemptions of marketable securities	20,042			—			—			20,042
Net cash (used by) provided by investing activities	(3,399		)	(115,628		)	151,046			32,019
Cash flows from financing activities of continuing operations:
Proceeds from issuance of medium-term notes	—			397,377			—			397,377
Repayments of securitization debt	—			(333,026		)	—			(333,026		)
Net decrease in credit facilities and unsecured commercial paper	—			(224,508		)	—			(224,508		)
Net change in restricted cash	—			(17,340		)	—			(17,340		)
Dividends paid	(35,943		)	(225,000		)	225,000			(35,943		)
Purchase of common stock for treasury	(20,745		)	—			—			(20,745		)
Excess tax benefits from share based payments	7,962			—			—			7,962
Issuance of common stock under employee stock option plans	16,281			—			—			16,281
Net cash (used by) provided by financing activities	(32,445		)	(402,497		)	225,000			(209,942		)
Effect of exchange rate changes on cash and cash equivalents	745			181			—			926
Net (decrease) increase in cash and cash equivalents	$	(14,302	)	$	(236,311	)	$	—		$	(250,613	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	943,330		$	583,620		$	—		$	1,526,950
Net (decrease) increase in cash and cash equivalents	(14,302		)	(236,311		)	—			(250,613		)
Cash and cash equivalents—end of period	$	929,028		$	347,309		$	—		$	1,276,337