Q | 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 |
Wisconsin | 39-1382325 | |
(State of organization) | (I.R.S. Employer Identification No.) | |
3700 West Juneau Avenue Milwaukee, Wisconsin | 53208 | |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | Q | Accelerated filer | £ | ||
Non-accelerated filer | £ | Smaller reporting company | £ |
Part I | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II | ||
Item 1. | ||
Item 2. | ||
Item 6. | ||
Three months ended | Six months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and related products | $ | 1,631,466 | $ | 1,569,047 | $ | 3,045,714 | $ | 2,842,416 | |||||||
Financial services | 162,841 | 160,613 | 319,806 | 316,935 | |||||||||||
Total revenue | 1,794,307 | 1,729,660 | 3,365,520 | 3,159,351 | |||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and related products cost of goods sold | 1,029,596 | 1,005,230 | 1,924,402 | 1,822,089 | |||||||||||
Financial services interest expense | 45,506 | 48,712 | 86,060 | 99,968 | |||||||||||
Financial services provision for credit losses | 11,297 | (5,259 | ) | 24,407 | 3,754 | ||||||||||
Selling, administrative and engineering expense | 281,384 | 283,244 | 552,883 | 548,898 | |||||||||||
Restructuring (benefit) expense | (5,297 | ) | 6,220 | (2,359 | ) | 17,671 | |||||||||
Total costs and expenses | 1,362,486 | 1,338,147 | 2,585,393 | 2,492,380 | |||||||||||
Operating income | 431,821 | 391,513 | 780,127 | 666,971 | |||||||||||
Investment income | 1,770 | 2,231 | 3,385 | 4,164 | |||||||||||
Interest expense | 11,238 | 11,595 | 22,629 | 23,090 | |||||||||||
Income before provision for income taxes | 422,353 | 382,149 | 760,883 | 648,045 | |||||||||||
Provision for income taxes | 150,614 | 134,899 | 265,015 | 228,760 | |||||||||||
Net income | $ | 271,739 | $ | 247,250 | $ | 495,868 | $ | 419,285 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.22 | $ | 1.08 | $ | 2.22 | $ | 1.83 | |||||||
Diluted | $ | 1.21 | $ | 1.07 | $ | 2.20 | $ | 1.81 | |||||||
Cash dividends per common share | $ | 0.210 | $ | 0.155 | $ | 0.420 | $ | 0.310 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | ||||||||||||
Net Income | $ | 271,739 | $ | 247,250 | $ | 495,868 | $ | 419,285 | |||||||
Other comprehensive income, net of tax | |||||||||||||||
Foreign currency translation adjustments | (11,304 | ) | (10,025 | ) | (21,874 | ) | (5,364 | ) | |||||||
Derivative financial instruments | (90 | ) | 1,173 | 10,511 | (3,653 | ) | |||||||||
Marketable securities | (383 | ) | (685 | ) | (627 | ) | 328 | ||||||||
Pension and postretirement benefit plans | 10,239 | 7,933 | 20,478 | 15,866 | |||||||||||
Total other comprehensive (loss) income, net of tax | $ | (1,538 | ) | $ | (1,604 | ) | 8,488 | 7,177 | |||||||
Comprehensive income | $ | 270,201 | $ | 245,646 | 504,356 | 426,462 |
(Unaudited) | (Unaudited) | ||||||||||
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,300,690 | $ | 1,068,138 | $ | 1,071,496 | |||||
Marketable securities | 133,631 | 135,634 | 135,848 | ||||||||
Accounts receivable, net | 253,819 | 230,079 | 250,268 | ||||||||
Finance receivables, net | 2,010,974 | 1,743,045 | 1,854,838 | ||||||||
Inventories | 307,717 | 393,524 | 323,046 | ||||||||
Restricted cash | 212,004 | 188,008 | 188,564 | ||||||||
Other current assets | 235,636 | 292,508 | 245,807 | ||||||||
Total current assets | 4,454,471 | 4,050,936 | 4,069,867 | ||||||||
Finance receivables, net | 4,214,612 | 4,038,807 | 4,161,731 | ||||||||
Property, plant and equipment, net | 790,563 | 815,464 | 776,793 | ||||||||
Goodwill | 29,183 | 29,530 | 28,604 | ||||||||
Other long-term assets | 218,369 | 236,036 | 279,789 | ||||||||
$ | 9,707,198 | $ | 9,170,773 | $ | 9,316,784 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 344,423 | $ | 257,386 | $ | 252,239 | |||||
Accrued liabilities | 450,247 | 513,591 | 535,097 | ||||||||
Short-term debt | 525,745 | 294,943 | 845,868 | ||||||||
Current portion of long-term debt | 776,274 | 437,162 | 907,389 | ||||||||
Total current liabilities | 2,096,689 | 1,503,082 | 2,540,593 | ||||||||
Long-term debt | 4,234,352 | 4,370,544 | 3,576,994 | ||||||||
Pension liability | 148,974 | 330,294 | 122,496 | ||||||||
Postretirement healthcare liability | 271,122 | 278,062 | 263,295 | ||||||||
Other long-term liabilities | 134,822 | 131,167 | 147,019 | ||||||||
Commitments and contingencies (Note 16) | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, none issued | — | — | — | ||||||||
Common stock | 3,414 | 3,413 | 3,408 | ||||||||
Additional paid-in-capital | 1,128,079 | 1,066,069 | 1,032,430 | ||||||||
Retained earnings | 7,708,238 | 7,306,424 | 7,171,820 | ||||||||
Accumulated other comprehensive loss | (599,190 | ) | (607,678 | ) | (469,556 | ) | |||||
Treasury stock, at cost | (5,419,302 | ) | (5,210,604 | ) | (5,071,715 | ) | |||||
Total shareholders' equity | 2,821,239 | 2,557,624 | 2,666,387 | ||||||||
$ | 9,707,198 | $ | 9,170,773 | $ | 9,316,784 |
(Unaudited) | (Unaudited) | ||||||||||
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||
Balances held by consolidated variable interest entities (Note 6) | |||||||||||
Current finance receivables, net | $ | 461,978 | $ | 470,134 | $ | 456,285 | |||||
Other assets | $ | 4,256 | $ | 5,288 | $ | 4,401 | |||||
Non-current finance receivables, net | $ | 1,717,462 | $ | 1,631,435 | $ | 1,592,544 | |||||
Restricted cash | $ | 198,893 | $ | 176,290 | $ | 188,564 | |||||
Current portion of long-term debt | $ | 433,524 | $ | 399,477 | $ | 507,427 | |||||
Long-term debt | $ | 1,240,235 | $ | 1,048,299 | $ | 831,805 |
Six months ended | |||||||
June 30, 2013 | July 1, 2012 | ||||||
Net cash provided by operating activities (Note 3) | $ | 389,677 | $ | 288,242 | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (66,589 | ) | (60,078 | ) | |||
Origination of finance receivables | (1,653,232 | ) | (1,583,572 | ) | |||
Collections on finance receivables | 1,422,688 | 1,435,790 | |||||
Purchases of marketable securities | (4,998 | ) | (4,993 | ) | |||
Sales and redemptions of marketable securities | 6,003 | 23,046 | |||||
Other | 6,667 | — | |||||
Net cash used by investing activities | (289,461 | ) | (189,807 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of medium-term notes | — | 397,373 | |||||
Repayments of medium-term notes | (27,858 | ) | — | ||||
Proceeds from securitization debt | 647,516 | 91,030 | |||||
Repayments of securitization debt | (423,455 | ) | (839,401 | ) | |||
Net increase (decrease) in credit facilities and unsecured commercial paper | 230,761 | (46,629 | ) | ||||
Borrowings of asset-backed commercial paper | 47,061 | — | |||||
Repayments of asset-backed commercial paper | (37,642 | ) | — | ||||
Net change in restricted cash | (23,996 | ) | 41,091 | ||||
Dividends paid | (94,213 | ) | (71,645 | ) | |||
Purchase of common stock for treasury | (208,699 | ) | (172,742 | ) | |||
Excess tax benefits from share-based payments | 16,338 | 15,730 | |||||
Issuance of common stock under employee stock option plans | 24,677 | 35,337 | |||||
Net cash provided (used) by financing activities | 150,490 | (549,856 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (18,154 | ) | (4,033 | ) | |||
Net increase (decrease) in cash and cash equivalents | $ | 232,552 | $ | (455,454 | ) | ||
Cash and cash equivalents: | |||||||
Cash and cash equivalents—beginning of period | $ | 1,068,138 | $ | 1,526,950 | |||
Net increase (decrease) in cash and cash equivalents | 232,552 | (455,454 | ) | ||||
Cash and cash equivalents—end of period | $ | 1,300,690 | $ | 1,071,496 |
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||
Available-for-sale: | |||||||||||
Corporate bonds | $ | 133,631 | $ | 135,634 | $ | 135,848 | |||||
$ | 133,631 | $ | 135,634 | $ | 135,848 |
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||
Components at the lower of FIFO cost or market | |||||||||||
Raw materials and work in process | $ | 116,334 | $ | 111,335 | $ | 116,166 | |||||
Motorcycle finished goods | 111,188 | 205,660 | 120,199 | ||||||||
Parts and accessories and general merchandise | 126,084 | 122,418 | 131,040 | ||||||||
Inventory at lower of FIFO cost or market | 353,606 | 439,413 | 367,405 | ||||||||
Excess of FIFO over LIFO cost | (45,889 | ) | (45,889 | ) | (44,359 | ) | |||||
$ | 307,717 | $ | 393,524 | $ | 323,046 |
Six months ended | |||||||
June 30, 2013 | July 1, 2012 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 495,868 | $ | 419,285 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 83,406 | 85,997 | |||||
Amortization of deferred loan origination costs | 40,947 | 38,075 | |||||
Amortization of financing origination fees | 4,635 | 5,021 | |||||
Provision for employee long-term benefits | 33,382 | 34,263 | |||||
Contributions to pension and postretirement plans | (189,116 | ) | (213,648 | ) | |||
Stock compensation expense | 21,061 | 22,119 | |||||
Net change in wholesale finance receivables related to sales | (293,293 | ) | (124,919 | ) | |||
Provision for credit losses | 24,407 | 3,754 | |||||
Loss on debt extinguishment | 4,947 | — | |||||
Foreign currency adjustments | 18,529 | 8,143 | |||||
Other, net | (442 | ) | 5,567 | ||||
Changes in current assets and liabilities: | |||||||
Accounts receivable, net | (34,787 | ) | (34,977 | ) | |||
Finance receivables—accrued interest and other | 699 | 2,912 | |||||
Inventories | 69,475 | 89,162 | |||||
Accounts payable and accrued liabilities | 70,721 | (12,286 | ) | ||||
Restructuring reserves | (22,790 | ) | (9,915 | ) | |||
Derivative instruments | (1,557 | ) | (1,420 | ) | |||
Other | 63,585 | (28,891 | ) | ||||
Total adjustments | (106,191 | ) | (131,043 | ) | |||
Net cash provided by operating activities | $ | 389,677 | $ | 288,242 |
Six months ended June 30, 2013 | |||||||||||||||||||||||||||||||
Kansas City | New Castalloy | Consolidated | |||||||||||||||||||||||||||||
Employee Severance and Termination Costs | Other | Total | Employee Severance and Termination Costs | Accelerated Depreciation | Other | Total | Total | ||||||||||||||||||||||||
Balance, beginning of period | $ | 2,259 | $ | — | $ | 2,259 | $ | 9,306 | $ | — | $ | 145 | $ | 9,451 | $ | 11,710 | |||||||||||||||
Restructuring expense | — | — | — | 860 | 2,093 | 577 | 3,530 | 3,530 | |||||||||||||||||||||||
Utilized—cash | (1,283 | ) | — | (1,283 | ) | (4,019 | ) | — | (589 | ) | (4,608 | ) | (5,891 | ) | |||||||||||||||||
Utilized—non-cash | — | — | — | — | (2,093 | ) | — | (2,093 | ) | (2,093 | ) | ||||||||||||||||||||
Non-cash reserve release | (376 | ) | — | (376 | ) | (5,250 | ) | — | — | (5,250 | ) | (5,626 | ) | ||||||||||||||||||
Balance, end of period | $ | 600 | $ | — | $ | 600 | $ | 897 | $ | — | $ | 133 | $ | 1,030 | $ | 1,630 |
Six months ended July 1, 2012 | |||||||||||||||||||||||||||||||
Kansas City | New Castalloy | Consolidated | |||||||||||||||||||||||||||||
Employee Severance and Termination Costs | Other | Total | Employee Severance and Termination Costs | Accelerated Depreciation | Other | Total | Total | ||||||||||||||||||||||||
Balance, beginning of period | $ | 4,123 | $ | — | $ | 4,123 | $ | 8,428 | $ | — | $ | 305 | $ | 8,733 | $ | 12,856 | |||||||||||||||
Restructuring expense | — | — | — | 1,141 | 4,093 | 755 | 5,989 | 5,989 | |||||||||||||||||||||||
Utilized—cash | — | — | — | (312 | ) | — | (722 | ) | (1,034 | ) | (1,034 | ) | |||||||||||||||||||
Utilized—non-cash | — | — | — | — | (4,093 | ) | — | (4,093 | ) | (4,093 | ) | ||||||||||||||||||||
Non-cash reserve release | (967 | ) | — | (967 | ) | — | — | — | — | (967 | ) | ||||||||||||||||||||
Balance, end of period | $ | 3,156 | $ | — | $ | 3,156 | $ | 9,257 | $ | — | $ | 338 | $ | 9,595 | $ | 12,751 |
Six months ended | |||||||
June 30, 2013 | July 1, 2012 | ||||||
Employee Severance and Termination Costs | Employee Severance and Termination Costs | ||||||
Balance, beginning of period | $ | 10,156 | $ | 20,361 | |||
Restructuring expense | — | 3,457 | |||||
Utilized—cash | (9,710 | ) | (10,053 | ) | |||
Non-cash reserve release | (336 | ) | — | ||||
Balance, end of period | $ | 110 | $ | 13,765 |
Six months ended June 30, 2013 | |||||||||||||||
Motorcycles & Related Products | |||||||||||||||
Employee Severance and Termination Costs | Accelerated Depreciation | Other | Total | ||||||||||||
Balance, beginning of period | $ | 5,196 | $ | — | $ | 161 | $ | 5,357 | |||||||
Restructuring expense | — | — | 1,606 | 1,606 | |||||||||||
Utilized—cash | (1,613 | ) | — | (1,591 | ) | (3,204 | ) | ||||||||
Utilized—non-cash | — | — | — | — | |||||||||||
Non-cash reserve release | (1,533 | ) | — | — | (1,533 | ) | |||||||||
Balance, end of period | $ | 2,050 | $ | — | $ | 176 | $ | 2,226 | |||||||
Six months ended July 1, 2012 | |||||||||||||||
Motorcycles & Related Products | |||||||||||||||
Employee Severance and Termination Costs | Accelerated Depreciation | Other | Total | ||||||||||||
Balance, beginning of period | $ | 10,089 | $ | — | $ | — | $ | 10,089 | |||||||
Restructuring expense | 331 | — | 10,888 | 11,219 | |||||||||||
Utilized—cash | (1,878 | ) | — | (10,888 | ) | (12,766 | ) | ||||||||
Utilized—non-cash | — | — | — | — | |||||||||||
Non-cash reserve release | (2,027 | ) | — | — | (2,027 | ) | |||||||||
Balance, end of period | $ | 6,515 | $ | — | $ | — | $ | 6,515 |
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||
Retail | $ | 5,248,289 | $ | 5,073,115 | $ | 5,225,779 | |||||
Wholesale | 1,088,621 | 816,404 | 905,038 | ||||||||
6,336,910 | 5,889,519 | 6,130,817 | |||||||||
Allowance for credit losses | (111,324 | ) | (107,667 | ) | (114,248 | ) | |||||
$ | 6,225,586 | $ | 5,781,852 | $ | 6,016,569 |
Three months ended June 30, 2013 | |||||||||||
Retail | Wholesale | Total | |||||||||
Balance, beginning of period | $ | 98,542 | $ | 8,250 | $ | 106,792 | |||||
Provision for credit losses | 11,993 | (696 | ) | 11,297 | |||||||
Charge-offs | (18,166 | ) | — | (18,166 | ) | ||||||
Recoveries | 11,401 | — | 11,401 | ||||||||
Balance, end of period | $ | 103,770 | $ | 7,554 | $ | 111,324 | |||||
Three months ended July 1, 2012 | |||||||||||
Retail | Wholesale | Total | |||||||||
Balance, beginning of period | $ | 112,857 | $ | 9,646 | $ | 122,503 | |||||
Provision for credit losses | (3,681 | ) | (1,578 | ) | (5,259 | ) | |||||
Charge-offs | (17,054 | ) | — | (17,054 | ) | ||||||
Recoveries | 14,058 | — | 14,058 | ||||||||
Balance, end of period | $ | 106,180 | $ | 8,068 | $ | 114,248 | |||||
Six months ended June 30, 2013 | |||||||||||
Retail | Wholesale | Total | |||||||||
Balance, beginning of period | $ | 101,442 | $ | 6,225 | $ | 107,667 | |||||
Provision for credit losses | 23,078 | 1,329 | 24,407 | ||||||||
Charge-offs | (43,409 | ) | — | (43,409 | ) | ||||||
Recoveries | 22,659 | — | 22,659 | ||||||||
Balance, end of period | $ | 103,770 | $ | 7,554 | $ | 111,324 | |||||
Six months ended July 1, 2012 | |||||||||||
Retail | Wholesale | Total | |||||||||
Balance, beginning of period | $ | 116,112 | $ | 9,337 | $ | 125,449 | |||||
Provision for credit losses | 5,023 | (1,269 | ) | 3,754 | |||||||
Charge-offs | (42,906 | ) | — | (42,906 | ) | ||||||
Recoveries | 27,951 | — | 27,951 | ||||||||
Balance, end of period | $ | 106,180 | $ | 8,068 | $ | 114,248 |
June 30, 2013 | |||||||||||
Retail | Wholesale | Total | |||||||||
Allowance for credit losses, ending balance: | |||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | |||||
Collectively evaluated for impairment | 103,770 | 7,554 | 111,324 | ||||||||
Total allowance for credit losses | $ | 103,770 | $ | 7,554 | $ | 111,324 | |||||
Finance receivables, ending balance: | |||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | |||||
Collectively evaluated for impairment | 5,248,289 | 1,088,621 | 6,336,910 | ||||||||
Total finance receivables | $ | 5,248,289 | $ | 1,088,621 | $ | 6,336,910 | |||||
December 31, 2012 | |||||||||||
Retail | Wholesale | Total | |||||||||
Allowance for credit losses, ending balance: | |||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | |||||
Collectively evaluated for impairment | 101,442 | 6,225 | 107,667 | ||||||||
Total allowance for credit losses | $ | 101,442 | $ | 6,225 | $ | 107,667 | |||||
Finance receivables, ending balance: | |||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | |||||
Collectively evaluated for impairment | 5,073,115 | 816,404 | 5,889,519 | ||||||||
Total finance receivables | $ | 5,073,115 | $ | 816,404 | $ | 5,889,519 | |||||
July 1, 2012 | |||||||||||
Retail | Wholesale | Total | |||||||||
Allowance for credit losses, ending balance: | |||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | |||||
Collectively evaluated for impairment | 106,180 | 8,068 | 114,248 | ||||||||
Total allowance for credit losses | $ | 106,180 | $ | 8,068 | $ | 114,248 | |||||
Finance receivables, ending balance: | |||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | |||||
Collectively evaluated for impairment | 5,225,779 | 905,038 | 6,130,817 | ||||||||
Total finance receivables | $ | 5,225,779 | $ | 905,038 | $ | 6,130,817 |
June 30, 2013 | |||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total Finance Receivables | ||||||||||||||||||
Retail | $ | 5,119,572 | $ | 90,790 | $ | 24,023 | $ | 13,904 | $ | 128,717 | $ | 5,248,289 | |||||||||||
Wholesale | 1,087,607 | 507 | 281 | 226 | 1,014 | 1,088,621 | |||||||||||||||||
Total | $ | 6,207,179 | $ | 91,297 | $ | 24,304 | $ | 14,130 | $ | 129,731 | $ | 6,336,910 | |||||||||||
December 31, 2012 | |||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total Finance Receivables | ||||||||||||||||||
Retail | $ | 4,894,675 | $ | 113,604 | $ | 37,239 | $ | 27,597 | $ | 178,440 | $ | 5,073,115 | |||||||||||
Wholesale | 814,706 | 984 | 278 | 436 | 1,698 | 816,404 | |||||||||||||||||
Total | $ | 5,709,381 | $ | 114,588 | $ | 37,517 | $ | 28,033 | $ | 180,138 | $ | 5,889,519 | |||||||||||
July 1, 2012 | |||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total Finance Receivables | ||||||||||||||||||
Retail | $ | 5,101,847 | $ | 84,858 | $ | 24,247 | $ | 14,827 | $ | 123,932 | $ | 5,225,779 | |||||||||||
Wholesale | 902,891 | 1,125 | 468 | 554 | 2,147 | 905,038 | |||||||||||||||||
Total | $ | 6,004,738 | $ | 85,983 | $ | 24,715 | $ | 15,381 | $ | 126,079 | $ | 6,130,817 |
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||
Prime | $ | 4,128,450 | $ | 4,035,584 | $ | 4,181,527 | |||||
Sub-prime | 1,119,839 | 1,037,531 | 1,044,252 | ||||||||
Total | $ | 5,248,289 | $ | 5,073,115 | $ | 5,225,779 |
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||
Doubtful | $ | 3,958 | $ | 8,107 | $ | 9,467 | |||||
Substandard | 14,187 | 2,593 | 5,902 | ||||||||
Special Mention | 2,929 | 3,504 | 7,897 | ||||||||
Medium Risk | 10,041 | 8,451 | 808 | ||||||||
Low Risk | 1,057,506 | 793,749 | 880,964 | ||||||||
Total | $ | 1,088,621 | $ | 816,404 | $ | 905,038 |
June 30, 2013 | |||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||
On-balance sheet assets and liabilities | |||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||
Term asset-backed securitizations | $ | 2,223,167 | $ | (43,727 | ) | $ | 198,893 | $ | 4,082 | $ | 2,382,415 | $ | 1,673,759 | ||||||||||
Asset-backed U.S. commercial paper conduit facility | — | — | — | 174 | 174 | — | |||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | 202,894 | (3,547 | ) | 13,111 | 109 | 212,567 | 175,229 | ||||||||||||||||
$ | 2,426,061 | $ | (47,274 | ) | $ | 212,004 | $ | 4,365 | $ | 2,595,156 | $ | 1,848,988 | |||||||||||
December 31, 2012 | |||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||
On-balance sheet assets and liabilities | |||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||
Term asset-backed securitizations | $ | 2,143,708 | $ | (42,139 | ) | $ | 176,290 | $ | 4,869 | $ | 2,282,728 | $ | 1,447,776 | ||||||||||
Asset-backed U.S. commercial paper conduit facility | — | — | — | 419 | 419 | — | |||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | 194,285 | (3,432 | ) | 11,718 | 255 | 202,826 | 175,658 | ||||||||||||||||
$ | 2,337,993 | $ | (45,571 | ) | $ | 188,008 | $ | 5,543 | $ | 2,485,973 | $ | 1,623,434 | |||||||||||
July 1, 2012 | |||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||
On-balance sheet assets and liabilities | |||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||
Term asset-backed securitizations | $ | 2,082,375 | $ | (41,781 | ) | $ | 187,782 | $ | 4,243 | $ | 2,232,619 | $ | 1,339,232 | ||||||||||
Asset-backed U.S. commercial paper conduit facility | 8,403 | (168 | ) | 782 | 158 | 9,175 | — | ||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | — | — | — | — | — | — | |||||||||||||||||
$ | 2,090,778 | $ | (41,949 | ) | $ | 188,564 | $ | 4,401 | $ | 2,241,794 | $ | 1,339,232 |
June 30, 2013 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 1,092,522 | $ | 643,140 | $ | 449,382 | $ | — | |||||||
Marketable securities | 133,631 | — | 133,631 | — | |||||||||||
Derivatives | 11,214 | — | 11,214 | — | |||||||||||
$ | 1,237,367 | $ | 643,140 | $ | 594,227 | $ | — | ||||||||
Liabilities: | |||||||||||||||
Derivatives | $ | 570 | $ | — | $ | 570 | $ | — | |||||||
December 31, 2012 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 852,979 | $ | 690,691 | $ | 162,288 | $ | — | |||||||
Marketable securities | 135,634 | — | 135,634 | — | |||||||||||
Derivatives | 317 | — | 317 | — | |||||||||||
$ | 988,930 | $ | 690,691 | $ | 298,239 | $ | — | ||||||||
Liabilities: | |||||||||||||||
Derivatives | $ | 7,920 | $ | — | $ | 7,920 | $ | — | |||||||
July 1, 2012 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 764,147 | $ | 578,567 | $ | 185,580 | $ | — | |||||||
Marketable securities | 135,848 | — | 135,848 | — | |||||||||||
Derivatives | 8,879 | — | 8,879 | — | |||||||||||
$ | 908,874 | $ | 578,567 | $ | 330,307 | $ | — | ||||||||
Liabilities: | |||||||||||||||
Derivatives | $ | 2,042 | $ | — | $ | 2,042 | $ | — |
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,300,690 | $ | 1,300,690 | $ | 1,068,138 | $ | 1,068,138 | $ | 1,071,496 | $ | 1,071,496 | |||||||||||
Marketable securities | $ | 133,631 | $ | 133,631 | $ | 135,634 | $ | 135,634 | $ | 135,848 | $ | 135,848 | |||||||||||
Accounts receivable, net | $ | 253,819 | $ | 253,819 | $ | 230,079 | $ | 230,079 | $ | 250,268 | $ | 250,268 | |||||||||||
Derivatives | $ | 11,214 | $ | 11,214 | $ | 317 | $ | 317 | $ | 8,879 | $ | 8,879 | |||||||||||
Finance receivables, net | $ | 6,314,282 | $ | 6,225,586 | $ | 5,861,442 | $ | 5,781,852 | $ | 6,099,619 | $ | 6,016,569 | |||||||||||
Restricted cash | $ | 212,004 | $ | 212,004 | $ | 188,008 | $ | 188,008 | $ | 188,564 | $ | 188,564 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 344,423 | $ | 344,423 | $ | 257,386 | $ | 257,386 | $ | 252,239 | $ | 252,239 | |||||||||||
Derivatives | $ | 570 | $ | 570 | $ | 7,920 | $ | 7,920 | $ | 2,042 | $ | 2,042 | |||||||||||
Unsecured commercial paper | $ | 525,745 | $ | 525,745 | $ | 294,943 | $ | 294,943 | $ | 845,868 | $ | 845,868 | |||||||||||
Global credit facilities | $ | — | $ | — | $ | — | $ | — | $ | 143,792 | $ | 143,792 | |||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | 175,229 | $ | 175,229 | $ | 175,658 | $ | 175,658 | $ | — | $ | — | |||||||||||
Medium-term notes | $ | 3,100,162 | $ | 2,858,638 | $ | 3,199,548 | $ | 2,881,272 | $ | 2,967,112 | $ | 2,698,359 | |||||||||||
Senior unsecured notes | $ | 325,705 | $ | 303,000 | $ | 338,594 | $ | 303,000 | $ | 360,791 | $ | 303,000 | |||||||||||
Term asset-backed securitization debt | $ | 1,673,645 | $ | 1,673,759 | $ | 1,457,807 | $ | 1,447,776 | $ | 1,345,452 | $ | 1,339,232 |
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||||||||||||||||||||||||||
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Notional Value | Asset Fair Value (a) | Liability Fair Value (b) | Notional Value | Asset Fair Value (a) | Liability Fair Value (b) | Notional Value | Asset Fair Value (a) | Liability Fair Value (b) | ||||||||||||||||||||||||||
Foreign currency contracts(c) | $ | 333,407 | $ | 11,214 | $ | 29 | $ | 345,021 | $ | 169 | $ | 6,850 | $ | 244,221 | $ | 8,879 | $ | 1,027 | |||||||||||||||||
Commodity contracts(c) | 1,226 | — | 99 | 1,064 | 148 | 683 | 1,066 | — | 33 | ||||||||||||||||||||||||||
Interest rate swaps(c) | — | — | — | 35,800 | — | 373 | 41,600 | — | 982 | ||||||||||||||||||||||||||
Total | $ | 334,633 | $ | 11,214 | $ | 128 | $ | 381,885 | $ | 317 | $ | 7,906 | $ | 286,887 | $ | 8,879 | $ | 2,042 | |||||||||||||||||
June 30, 2013 | December 31, 2012 | July 1, 2012 | |||||||||||||||||||||||||||||||||
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 | Notional Value | Asset Fair Value(a) | Liability Fair Value(b) | Notional Value | Asset Fair Value(a) | Liability Fair Value(b) | Notional Value | Asset Fair Value(a) | Liability Fair Value(b) | ||||||||||||||||||||||||||
Commodity contracts | $ | 11,958 | $ | — | $ | 442 | $ | 16,237 | $ | — | $ | 14 | $ | 4,346 | $ | — | $ | — | |||||||||||||||||
$ | 11,958 | $ | — | $ | 442 | $ | 16,237 | $ | — | $ | 14 | $ | 4,346 | $ | — | $ | — |
(a) | Included in other current assets |
(b) | Included in accrued liabilities |
(c) | Derivative designated as a cash flow hedge |
Amount of Gain/(Loss) Before Tax Recognized in OCI | |||||||||||||||
Three months ended | Six Months Ended | ||||||||||||||
Cash Flow Hedges | June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | |||||||||||
Foreign currency contracts | $ | 723 | $ | 10,309 | $ | 16,444 | $ | 4,095 | |||||||
Commodity contracts | (231 | ) | (109 | ) | (72 | ) | (424 | ) | |||||||
Interest rate swaps | — | (9 | ) | (2 | ) | (24 | ) | ||||||||
Total | $ | 492 | $ | 10,191 | $ | 16,370 | $ | 3,647 |
Amount of Gain/(Loss) Before Tax Reclassified from AOCI into Income | |||||||||||||||||||
Three months ended | Six Months Ended | Expected to be Reclassified | |||||||||||||||||
Cash Flow Hedges | June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | Over the Next Twelve Months | ||||||||||||||
Foreign currency contracts(a) | $ | 753 | $ | 9,683 | $ | 13 | $ | 12,104 | $ | 10,700 | |||||||||
Commodity contracts(a) | (34 | ) | (337 | ) | 13 | (656 | ) | (99 | ) | ||||||||||
Interest rate swaps(b) | (82 | ) | (968 | ) | (345 | ) | (1,935 | ) | — | ||||||||||
Total | $ | 637 | $ | 8,378 | $ | (319 | ) | $ | 9,513 | $ | 10,601 |
(a) | Gain/(loss) reclassified from accumulated other comprehensive income (AOCI) to income is included in cost of goods sold. |
(b) | Gain/(loss) reclassified from AOCI to income is included in financial services interest expense. |
Amount of Gain/(Loss) Before Tax Recognized in Income on Derivative | |||||||||||||||
Three months ended | Six Months Ended | ||||||||||||||
Derivatives | June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | |||||||||||
Commodity contracts | $ | 21 | $ | — | $ | (609 | ) | $ | — | ||||||
Total | $ | 21 | $ | — | $ | (609 | ) | $ | — |
Three months ended June 30, 2013 | ||||||||||||||||||||
Foreign currency translation adjustments | Marketable securities | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||
Beginning balance | $ | 40,765 | $ | 433 | $ | 6,764 | $ | (645,614 | ) | $ | (597,652 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (12,380 | ) | (608 | ) | 492 | — | (12,496 | ) | ||||||||||||
Income tax | 1,076 | 225 | (182 | ) | — | 1,119 | ||||||||||||||
Net other comprehensive income before reclassifications | (11,304 | ) | (383 | ) | 310 | — | (11,377 | ) | ||||||||||||
Reclassifications: | ||||||||||||||||||||
Realized (gains) losses - marketable securities (a) | — | — | ||||||||||||||||||
Realized (gains) losses - foreign currency contracts(b) | (753 | ) | (753 | ) | ||||||||||||||||
Realized (gains) losses - commodities contracts(b) | 34 | 34 | ||||||||||||||||||
Realized (gains) losses - interest rate swaps(c) | 82 | 82 | ||||||||||||||||||
Prior service credits(d) | (526 | ) | (526 | ) | ||||||||||||||||
Actuarial losses(d) | 16,789 | 16,789 | ||||||||||||||||||
Total before tax | — | — | (637 | ) | 16,263 | 15,626 | ||||||||||||||
Income tax (benefit) expense | — | — | 237 | (6,024 | ) | (5,787 | ) | |||||||||||||
Net reclassifications | — | — | (400 | ) | 10,239 | 9,839 | ||||||||||||||
Other comprehensive (loss) income | (11,304 | ) | (383 | ) | (90 | ) | 10,239 | (1,538 | ) | |||||||||||
Ending Balance | $ | 29,461 | $ | 50 | $ | 6,674 | $ | (635,375 | ) | $ | (599,190 | ) |
Three months ended July 1, 2012 | ||||||||||||||||||||
Foreign currency translation adjustments | Marketable securities | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||
Beginning balance | $ | 54,596 | $ | 1,340 | $ | 1,481 | $ | (525,369 | ) | $ | (467,952 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (10,559 | ) | (1,088 | ) | 10,191 | — | (1,456 | ) | ||||||||||||
Income tax | 534 | 403 | (3,775 | ) | — | (2,838 | ) | |||||||||||||
Net other comprehensive income before reclassifications | (10,025 | ) | (685 | ) | 6,416 | — | (4,294 | ) | ||||||||||||
Reclassifications: | ||||||||||||||||||||
Realized (gains) losses - marketable securities (a) | — | — | ||||||||||||||||||
Realized (gains) losses - foreign currency contracts(b) | (9,683 | ) | (9,683 | ) | ||||||||||||||||
Realized (gains) losses - commodities contracts(b) | 337 | 337 | ||||||||||||||||||
Realized (gains) losses - interest rate swaps(c) | 968 | 968 | ||||||||||||||||||
Prior service credits(d) | (223 | ) | (223 | ) | ||||||||||||||||
Actuarial losses(d) | 12,824 | 12,824 | ||||||||||||||||||
Total before tax | — | — | (8,378 | ) | 12,601 | 4,223 | ||||||||||||||
Income tax (benefit) expense | — | — | 3,135 | (4,668 | ) | (1,533 | ) | |||||||||||||
Net reclassifications | — | — | (5,243 | ) | 7,933 | 2,690 | ||||||||||||||
Other comprehensive (loss) income | (10,025 | ) | (685 | ) | 1,173 | 7,933 | (1,604 | ) | ||||||||||||
Ending Balance | $ | 44,571 | $ | 655 | $ | 2,654 | $ | (517,436 | ) | $ | (469,556 | ) |
Six months ended June 30, 2013 | ||||||||||||||||||||
Foreign currency translation adjustments | Marketable securities | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||
Beginning balance | $ | 51,335 | $ | 677 | $ | (3,837 | ) | $ | (655,853 | ) | $ | (607,678 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (23,852 | ) | (996 | ) | 16,370 | — | (8,478 | ) | ||||||||||||
Income tax | 1,978 | 369 | (6,063 | ) | — | (3,716 | ) | |||||||||||||
Net other comprehensive income before reclassifications | (21,874 | ) | (627 | ) | 10,307 | — | (12,194 | ) | ||||||||||||
Reclassifications: | ||||||||||||||||||||
Realized (gains) losses - marketable securities (a) | — | — | ||||||||||||||||||
Realized (gains) losses - foreign currency contracts(b) | (13 | ) | (13 | ) | ||||||||||||||||
Realized (gains) losses - commodities contracts(b) | (13 | ) | (13 | ) | ||||||||||||||||
Realized (gains) losses - interest rate swaps(c) | 345 | 345 | ||||||||||||||||||
Prior service credits(d) | (1,052 | ) | (1,052 | ) | ||||||||||||||||
Actuarial losses(d) | 33,578 | 33,578 | ||||||||||||||||||
Total before tax | — | — | 319 | 32,526 | 32,845 | |||||||||||||||
Income tax (benefit) expense | — | — | (115 | ) | (12,048 | ) | (12,163 | ) | ||||||||||||
Net reclassifications | — | — | 204 | 20,478 | 20,682 | |||||||||||||||
Other comprehensive (loss) income | (21,874 | ) | (627 | ) | 10,511 | 20,478 | 8,488 | |||||||||||||
Ending Balance | $ | 29,461 | $ | 50 | $ | 6,674 | $ | (635,375 | ) | $ | (599,190 | ) |
Six months ended July 1, 2012 | ||||||||||||||||||||
Foreign currency translation adjustments | Marketable securities | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||
Beginning balance | $ | 49,935 | $ | 327 | $ | 6,307 | $ | (533,302 | ) | $ | (476,733 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (5,301 | ) | 521 | 3,647 | — | (1,133 | ) | |||||||||||||
Income tax | (63 | ) | (193 | ) | (1,352 | ) | — | (1,608 | ) | |||||||||||
Net other comprehensive income before reclassifications | (5,364 | ) | 328 | 2,295 | — | (2,741 | ) | |||||||||||||
Reclassifications: | ||||||||||||||||||||
Realized (gains) losses - marketable securities (a) | — | — | ||||||||||||||||||
Realized (gains) losses - foreign currency contracts(b) | (12,104 | ) | (12,104 | ) | ||||||||||||||||
Realized (gains) losses - commodities contracts(b) | 656 | 656 | ||||||||||||||||||
Realized (gains) losses - interest rate swaps(c) | 1,935 | 1,935 | ||||||||||||||||||
Prior service credits(d) | (448 | ) | (448 | ) | ||||||||||||||||
Actuarial losses(d) | 25,648 | 25,648 | ||||||||||||||||||
Total before tax | — | — | (9,513 | ) | 25,200 | 15,687 | ||||||||||||||
Income tax (benefit) expense | — | — | 3,565 | (9,334 | ) | (5,769 | ) | |||||||||||||
Net reclassifications | — | — | (5,948 | ) | 15,866 | 9,918 | ||||||||||||||
Other comprehensive (loss) income | (5,364 | ) | 328 | (3,653 | ) | 15,866 | 7,177 | |||||||||||||
Ending Balance | $ | 44,571 | $ | 655 | $ | 2,654 | $ | (517,436 | ) | $ | (469,556 | ) |
(a) | Amounts reclassified to net income are included in investment income. |
(b) | Amounts reclassified to net income are included in motorcycles and related products cost of goods sold. |
(c) | Amounts reclassified to net income are presented in financial services interest expense. |
(d) | Amounts reclassified are included in the computation of net periodic period cost. See note 14 for information related to pension and postretirement benefit plans. |
Three months ended | Six months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | ||||||||||||
Balance, beginning of period | $ | 67,709 | $ | 57,102 | $ | 60,263 | $ | 54,994 | |||||||
Warranties issued during the period | 19,401 | 17,127 | 34,521 | 32,618 | |||||||||||
Settlements made during the period | (16,702 | ) | (18,549 | ) | (28,340 | ) | (33,086 | ) | |||||||
Recalls and changes to pre-existing warranty liabilities | (2 | ) | 12,121 | 3,962 | 13,275 | ||||||||||
Balance, end of period | $ | 70,406 | $ | 67,801 | $ | 70,406 | $ | 67,801 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | ||||||||||||
Numerator: | |||||||||||||||
Net income used in computing basic and diluted earnings per share | $ | 271,739 | $ | 247,250 | $ | 495,868 | $ | 419,285 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per share- weighted-average common shares | 223,052 | 228,838 | 223,737 | 228,914 | |||||||||||
Effect of dilutive securities—employee stock compensation plan | 1,418 | 2,085 | 1,569 | 2,190 | |||||||||||
Denominator for diluted earnings per share- adjusted weighted-average shares outstanding | 224,470 | 230,923 | 225,306 | 231,104 | |||||||||||
Earnings per common share | |||||||||||||||
Basic | $ | 1.22 | $ | 1.08 | $ | 2.22 | $ | 1.83 | |||||||
Diluted | $ | 1.21 | $ | 1.07 | $ | 2.20 | $ | 1.81 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | ||||||||||||
Pension and SERPA Benefits | |||||||||||||||
Service cost | $ | 8,997 | $ | 8,420 | $ | 17,994 | $ | 16,840 | |||||||
Interest cost | 19,752 | 20,816 | 39,564 | 41,632 | |||||||||||
Expected return on plan assets | (31,832 | ) | (29,277 | ) | (63,664 | ) | (58,555 | ) | |||||||
Amortization of unrecognized: | |||||||||||||||
Prior service cost | 437 | 740 | 874 | 1,479 | |||||||||||
Net loss | 14,652 | 10,969 | 29,304 | 21,937 | |||||||||||
Net periodic benefit cost | $ | 12,006 | $ | 11,668 | $ | 24,072 | $ | 23,333 | |||||||
Postretirement Healthcare Benefits | |||||||||||||||
Service cost | $ | 1,965 | $ | 1,853 | $ | 3,930 | $ | 3,706 | |||||||
Interest cost | 3,900 | 4,578 | 7,800 | 9,155 | |||||||||||
Expected return on plan assets | (2,384 | ) | (2,356 | ) | (4,768 | ) | (4,712 | ) | |||||||
Amortization of unrecognized: | |||||||||||||||
Prior service credit | (963 | ) | (963 | ) | (1,926 | ) | (1,927 | ) | |||||||
Net loss | 2,137 | 1,855 | 4,274 | 3,711 | |||||||||||
Net periodic benefit cost | $ | 4,655 | $ | 4,967 | $ | 9,310 | $ | 9,933 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | ||||||||||||
Motorcycles net revenue | $ | 1,631,466 | $ | 1,569,047 | $ | 3,045,714 | $ | 2,842,416 | |||||||
Gross profit | 601,870 | 563,817 | 1,121,312 | 1,020,327 | |||||||||||
Selling, administrative and engineering expense | 249,502 | 248,038 | 489,245 | 485,033 | |||||||||||
Restructuring expense | (5,297 | ) | 6,220 | (2,359 | ) | 17,671 | |||||||||
Operating income from Motorcycles | 357,665 | 309,559 | 634,426 | 517,623 | |||||||||||
Financial services revenue | 162,841 | 160,613 | 319,806 | 316,935 | |||||||||||
Financial services expense | 88,685 | 78,659 | 174,105 | 167,587 | |||||||||||
Operating income from Financial Services | 74,156 | 81,954 | 145,701 | 149,348 | |||||||||||
Operating income | $ | 431,821 | $ | 391,513 | $ | 780,127 | $ | 666,971 |
Three months ended June 30, 2013 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations | Consolidated | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and related products | $ | 1,634,165 | $ | — | $ | (2,699 | ) | $ | 1,631,466 | ||||||
Financial services | — | 163,335 | (494 | ) | 162,841 | ||||||||||
Total revenue | 1,634,165 | 163,335 | (3,193 | ) | 1,794,307 | ||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and related products cost of goods sold | 1,029,596 | — | — | 1,029,596 | |||||||||||
Financial services interest expense | — | 45,506 | — | 45,506 | |||||||||||
Financial services provision for credit losses | — | 11,297 | — | 11,297 | |||||||||||
Selling, administrative and engineering expense | 249,996 | 34,581 | (3,193 | ) | 281,384 | ||||||||||
Restructuring expense | (5,297 | ) | — | — | (5,297 | ) | |||||||||
Total costs and expenses | 1,274,295 | 91,384 | (3,193 | ) | 1,362,486 | ||||||||||
Operating income | 359,870 | 71,951 | — | 431,821 | |||||||||||
Investment income | 1,770 | — | — | 1,770 | |||||||||||
Interest expense | 11,238 | — | — | 11,238 | |||||||||||
Income before provision for income taxes | 350,402 | 71,951 | — | 422,353 | |||||||||||
Provision for income taxes | 124,271 | 26,343 | — | 150,614 | |||||||||||
Net income | $ | 226,131 | $ | 45,608 | $ | — | $ | 271,739 | |||||||
Six months ended June 30, 2013 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations | Consolidated | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and related products | $ | 3,050,974 | $ | — | $ | (5,260 | ) | $ | 3,045,714 | ||||||
Financial services | — | 320,632 | (826 | ) | 319,806 | ||||||||||
Total revenue | 3,050,974 | 320,632 | (6,086 | ) | 3,365,520 | ||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and related products cost of goods sold | 1,924,402 | — | — | 1,924,402 | |||||||||||
Financial services interest expense | — | 86,060 | — | 86,060 | |||||||||||
Financial services provision for credit losses | — | 24,407 | — | 24,407 | |||||||||||
Selling, administrative and engineering expense | 490,071 | 68,898 | (6,086 | ) | 552,883 | ||||||||||
Restructuring expense | (2,359 | ) | — | — | (2,359 | ) | |||||||||
Total costs and expenses | 2,412,114 | 179,365 | (6,086 | ) | 2,585,393 | ||||||||||
Operating income | 638,860 | 141,267 | — | 780,127 | |||||||||||
Investment income | 188,385 | — | (185,000 | ) | 3,385 | ||||||||||
Interest expense | 22,629 | — | — | 22,629 | |||||||||||
Income before provision for income taxes | 804,616 | 141,267 | (185,000 | ) | 760,883 | ||||||||||
Provision for income taxes | 213,557 | 51,458 | — | 265,015 | |||||||||||
Net income | $ | 591,059 | $ | 89,809 | $ | (185,000 | ) | $ | 495,868 |
Three months ended July 1, 2012 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations | Consolidated | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and related products | $ | 1,572,003 | $ | — | $ | (2,956 | ) | $ | 1,569,047 | ||||||
Financial services | — | 160,843 | (230 | ) | 160,613 | ||||||||||
Total revenue | 1,572,003 | 160,843 | (3,186 | ) | 1,729,660 | ||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and related products cost of goods sold | 1,005,230 | — | — | 1,005,230 | |||||||||||
Financial services interest expense | — | 48,712 | — | 48,712 | |||||||||||
Financial services provision for credit losses | — | (5,259 | ) | — | (5,259 | ) | |||||||||
Selling, administrative and engineering expense | 248,268 | 38,162 | (3,186 | ) | 283,244 | ||||||||||
Restructuring expense | 6,220 | — | — | 6,220 | |||||||||||
Total costs and expenses | 1,259,718 | 81,615 | (3,186 | ) | 1,338,147 | ||||||||||
Operating income | 312,285 | 79,228 | — | 391,513 | |||||||||||
Investment income | 2,231 | — | — | 2,231 | |||||||||||
Interest expense | 11,595 | — | — | 11,595 | |||||||||||
Income before provision for income taxes | 302,921 | 79,228 | — | 382,149 | |||||||||||
Provision for income taxes | 106,377 | 28,522 | — | 134,899 | |||||||||||
Net income | $ | 196,544 | $ | 50,706 | $ | — | $ | 247,250 | |||||||
Six months ended July 1, 2012 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations | Consolidated | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and related products | $ | 2,847,786 | $ | — | $ | (5,370 | ) | $ | 2,842,416 | ||||||
Financial services | — | 316,749 | 186 | 316,935 | |||||||||||
Total revenue | 2,847,786 | 316,749 | (5,184 | ) | 3,159,351 | ||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and related products cost of goods sold | 1,822,089 | — | — | 1,822,089 | |||||||||||
Financial services interest expense | — | 99,968 | — | 99,968 | |||||||||||
Financial services provision for credit losses | — | 3,754 | — | 3,754 | |||||||||||
Selling, administrative and engineering expense | 484,847 | 69,235 | (5,184 | ) | 548,898 | ||||||||||
Restructuring expense | 17,671 | — | — | 17,671 | |||||||||||
Total costs and expenses | 2,324,607 | 172,957 | (5,184 | ) | 2,492,380 | ||||||||||
Operating income | 523,179 | 143,792 | — | 666,971 | |||||||||||
Investment income | 229,164 | — | (225,000 | ) | 4,164 | ||||||||||
Interest expense | 23,090 | — | — | 23,090 | |||||||||||
Income before provision for income taxes | 729,253 | 143,792 | (225,000 | ) | 648,045 | ||||||||||
Provision for income taxes | 176,995 | 51,765 | — | 228,760 | |||||||||||
Net income | $ | 552,258 | $ | 92,027 | $ | (225,000 | ) | $ | 419,285 |
June 30, 2013 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 935,095 | $ | 365,595 | $ | — | $ | 1,300,690 | |||||||
Marketable securities | 133,631 | — | — | 133,631 | |||||||||||
Accounts receivable, net | 956,619 | — | (702,800 | ) | 253,819 | ||||||||||
Finance receivables, net | — | 2,010,974 | — | 2,010,974 | |||||||||||
Inventories | 307,717 | — | — | 307,717 | |||||||||||
Restricted cash | — | 212,004 | — | 212,004 | |||||||||||
Other current assets | 175,231 | 60,405 | — | 235,636 | |||||||||||
Total current assets | 2,508,293 | 2,648,978 | (702,800 | ) | 4,454,471 | ||||||||||
Finance receivables, net | — | 4,214,612 | — | 4,214,612 | |||||||||||
Property, plant and equipment, net | 758,674 | 31,889 | — | 790,563 | |||||||||||
Goodwill | 29,183 | — | — | 29,183 | |||||||||||
Other long-term assets | 277,409 | 18,011 | (77,051 | ) | 218,369 | ||||||||||
$ | 3,573,559 | $ | 6,913,490 | $ | (779,851 | ) | $ | 9,707,198 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ | 290,363 | $ | 756,860 | $ | (702,800 | ) | $ | 344,423 | ||||||
Accrued liabilities | 392,613 | 61,015 | (3,381 | ) | 450,247 | ||||||||||
Short-term debt | — | 525,745 | — | 525,745 | |||||||||||
Current portion of long-term debt | 303,000 | 473,274 | — | 776,274 | |||||||||||
Total current liabilities | 985,976 | 1,816,894 | (706,181 | ) | 2,096,689 | ||||||||||
Long-term debt | — | 4,234,352 | — | 4,234,352 | |||||||||||
Pension liability | 148,974 | — | — | 148,974 | |||||||||||
Postretirement healthcare benefits | 271,122 | — | — | 271,122 | |||||||||||
Other long-term liabilities | 116,645 | 18,177 | — | 134,822 | |||||||||||
Shareholders’ equity | 2,050,842 | 844,067 | (73,670 | ) | 2,821,239 | ||||||||||
$ | 3,573,559 | $ | 6,913,490 | $ | (779,851 | ) | $ | 9,707,198 |
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 |
July 1, 2012 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 725,909 | $ | 345,587 | $ | — | $ | 1,071,496 | |||||||
Marketable securities | 135,848 | — | — | 135,848 | |||||||||||
Accounts receivable, net | 885,797 | — | (635,529 | ) | 250,268 | ||||||||||
Finance receivables, net | — | 1,854,838 | — | 1,854,838 | |||||||||||
Inventories | 323,046 | — | — | 323,046 | |||||||||||
Restricted cash | — | 188,564 | — | 188,564 | |||||||||||
Other current assets | 182,464 | 63,343 | — | 245,807 | |||||||||||
Total current assets | 2,253,064 | 2,452,332 | (635,529 | ) | 4,069,867 | ||||||||||
Finance receivables, net | — | 4,161,731 | — | 4,161,731 | |||||||||||
Property, plant and equipment, net | 747,133 | 29,660 | — | 776,793 | |||||||||||
Goodwill | 28,604 | — | — | 28,604 | |||||||||||
Other long-term assets | 335,811 | 17,956 | (73,978 | ) | 279,789 | ||||||||||
$ | 3,364,612 | $ | 6,661,679 | $ | (709,507 | ) | $ | 9,316,784 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ | 197,891 | $ | 689,877 | $ | (635,529 | ) | $ | 252,239 | ||||||
Accrued liabilities | 466,808 | 71,756 | (3,467 | ) | 535,097 | ||||||||||
Short-term debt | — | 845,868 | — | 845,868 | |||||||||||
Current portion of long-term debt | — | 907,389 | — | 907,389 | |||||||||||
Total current liabilities | 664,699 | 2,514,890 | (638,996 | ) | 2,540,593 | ||||||||||
Long-term debt | 303,000 | 3,273,994 | — | 3,576,994 | |||||||||||
Pension liability | 122,496 | — | — | 122,496 | |||||||||||
Postretirement healthcare liability | 263,295 | — | — | 263,295 | |||||||||||
Other long-term liabilities | 131,754 | 15,265 | — | 147,019 | |||||||||||
Shareholders’ equity | 1,879,368 | 857,530 | (70,511 | ) | 2,666,387 | ||||||||||
$ | 3,364,612 | $ | 6,661,679 | $ | (709,507 | ) | $ | 9,316,784 |
Six months ended June 30, 2013 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations & Adjustments | Consolidated | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net Income | $ | 591,059 | 89,809 | $ | (185,000 | ) | $ | 495,868 | |||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||
Depreciation | 80,592 | 2,814 | — | 83,406 | |||||||||||
Amortization of deferred loan origination costs | — | 40,947 | — | 40,947 | |||||||||||
Amortization of financing origination fees | 237 | 4,398 | — | 4,635 | |||||||||||
Provision for employee long-term benefits | 33,382 | — | — | 33,382 | |||||||||||
Contributions to pension and postretirement plans | (189,116 | ) | — | — | (189,116 | ) | |||||||||
Stock compensation expense | 19,592 | 1,469 | — | 21,061 | |||||||||||
Net change in wholesale finance receivables | — | — | (293,293 | ) | (293,293 | ) | |||||||||
Provision for credit losses | — | 24,407 | — | 24,407 | |||||||||||
Loss on debt extinguishment | — | 4,947 | — | 4,947 | |||||||||||
Foreign currency adjustments | 18,529 | — | — | 18,529 | |||||||||||
Other, net | (647 | ) | 205 | — | (442 | ) | |||||||||
Change in current assets and current liabilities: | |||||||||||||||
Accounts receivable | (286,024 | ) | — | 251,237 | (34,787 | ) | |||||||||
Finance receivables—accrued interest and other | — | 699 | — | 699 | |||||||||||
Inventories | 69,475 | — | — | 69,475 | |||||||||||
Accounts payable and accrued liabilities | 63,605 | 258,353 | (251,237 | ) | 70,721 | ||||||||||
Restructuring reserves | (22,790 | ) | — | — | (22,790 | ) | |||||||||
Derivative instruments | (1,529 | ) | (28 | ) | — | (1,557 | ) | ||||||||
Other | 65,613 | (2,028 | ) | — | 63,585 | ||||||||||
Total adjustments | (149,081 | ) | 336,183 | (293,293 | ) | (106,191 | ) | ||||||||
Net cash provided by (used by) operating activities | 441,978 | 425,992 | (478,293 | ) | 389,677 |
Six months ended June 30, 2013 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations & Adjustments | Consolidated | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (64,282 | ) | (2,307 | ) | — | (66,589 | ) | ||||||||
Origination of finance receivables | — | (4,019,925 | ) | 2,366,693 | (1,653,232 | ) | |||||||||
Collections of finance receivables | — | 3,496,088 | (2,073,400 | ) | 1,422,688 | ||||||||||
Purchases of marketable securities | (4,998 | ) | — | — | (4,998 | ) | |||||||||
Sales and redemptions of marketable securities | 6,003 | — | — | 6,003 | |||||||||||
Other | 6,667 | — | — | 6,667 | |||||||||||
Net cash (used by) provided by investing activities | (56,610 | ) | (526,144 | ) | 293,293 | (289,461 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||
Repayments of medium-term notes | — | (27,858 | ) | — | (27,858 | ) | |||||||||
Loan to HDFS | 100,000 | (100,000 | ) | — | — | ||||||||||
Proceeds from securitization of debt | — | 647,516 | — | 647,516 | |||||||||||
Repayments of securitization debt | — | (423,455 | ) | — | (423,455 | ) | |||||||||
Net decrease in credit facilities and unsecured commercial paper | — | 230,761 | — | 230,761 | |||||||||||
Borrowings of asset-backed commercial paper | — | 47,061 | — | 47,061 | |||||||||||
Repayments of asset-backed commercial paper | — | (37,642 | ) | — | (37,642 | ) | |||||||||
Net change in restricted cash | — | (23,996 | ) | — | (23,996 | ) | |||||||||
Dividends paid | (94,213 | ) | (185,000 | ) | 185,000 | (94,213 | ) | ||||||||
Purchase of common stock for treasury | (208,699 | ) | — | — | (208,699 | ) | |||||||||
Excess tax benefits from share based payments | 16,338 | — | — | 16,338 | |||||||||||
Issuance of common stock under employee stock option plans | 24,677 | — | — | 24,677 | |||||||||||
Net cash used by financing activities | (161,897 | ) | 127,387 | 185,000 | 150,490 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (16,092 | ) | (2,062 | ) | — | (18,154 | ) | ||||||||
Net (decrease) increase in cash and cash equivalents | $ | 207,379 | $ | 25,173 | $ | — | $ | 232,552 | |||||||
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 | 207,379 | 25,173 | — | 232,552 | |||||||||||
Cash and cash equivalents—end of period | $ | 935,095 | $ | 365,595 | $ | — | $ | 1,300,690 |
Six months ended July 1, 2012 | |||||||||||||||
Motorcycles & Related Products Operations | Financial Services Operations | Eliminations & Adjustments | Consolidated | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 552,258 | $ | 92,027 | $ | (225,000 | ) | $ | 419,285 | ||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||
Depreciation | 82,954 | 3,043 | — | 85,997 | |||||||||||
Amortization of deferred loan origination costs | — | 38,075 | — | 38,075 | |||||||||||
Amortization of financing origination fees | 237 | 4,784 | — | 5,021 | |||||||||||
Provision for employee long-term benefits | 33,236 | 1,027 | — | 34,263 | |||||||||||
Contributions to pension and postretirement plans | (213,648 | ) | — | — | (213,648 | ) | |||||||||
Stock compensation expense | 20,539 | 1,580 | — | 22,119 | |||||||||||
Net change in wholesale finance receivables | — | — | (124,919 | ) | (124,919 | ) | |||||||||
Provision for credit losses | — | 3,754 | — | 3,754 | |||||||||||
Foreign currency adjustments | 8,143 | — | — | 8,143 | |||||||||||
Other, net | 1,275 | 4,292 | — | 5,567 | |||||||||||
Change in current assets and current liabilities: | |||||||||||||||
Accounts receivable | (295,930 | ) | — | 260,953 | (34,977 | ) | |||||||||
Finance receivables—accrued interest and other | — | 2,912 | — | 2,912 | |||||||||||
Inventories | 89,162 | — | — | 89,162 | |||||||||||
Accounts payable and accrued liabilities | (22,227 | ) | 270,894 | (260,953 | ) | (12,286 | ) | ||||||||
Restructuring reserves | (9,915 | ) | — | — | (9,915 | ) | |||||||||
Derivative instruments | (1,293 | ) | (127 | ) | — | (1,420 | ) | ||||||||
Other | (25,286 | ) | (3,605 | ) | — | (28,891 | ) | ||||||||
Total adjustments | (332,753 | ) | 326,629 | (124,919 | ) | (131,043 | ) | ||||||||
Net cash provided by (used by) operating activities | 219,505 | 418,656 | (349,919 | ) | 288,242 | ||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (57,504 | ) | (2,574 | ) | — | (60,078 | ) | ||||||||
Origination of finance receivables | — | (3,766,621 | ) | 2,183,049 | (1,583,572 | ) | |||||||||
Collections of finance receivables | — | 3,493,920 | (2,058,130 | ) | 1,435,790 | ||||||||||
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 | (39,451 | ) | (275,275 | ) | 124,919 | (189,807 | ) | ||||||||
Cash flows from financing activities of continuing operations: | |||||||||||||||
Proceeds from issuance of medium-term notes | — | 397,373 | — | 397,373 | |||||||||||
Loan to HDFS | (200,000 | ) | 200,000 | — | — | ||||||||||
Proceeds from securitization debt | — | 91,030 | — | 91,030 | |||||||||||
Repayments of securitization debt | — | (839,401 | ) | — | (839,401 | ) | |||||||||
Net decrease in credit facilities and unsecured commercial paper | — | (46,629 | ) | — | (46,629 | ) | |||||||||
Net change in restricted cash | — | 41,091 | — | 41,091 | |||||||||||
Dividends paid | (71,645 | ) | (225,000 | ) | 225,000 | (71,645 | ) | ||||||||
Purchase of common stock for treasury | (172,742 | ) | — | — | (172,742 | ) | |||||||||
Excess tax benefits from share based payments | 15,730 | — | — | 15,730 | |||||||||||
Issuance of common stock under employee stock option plans | 35,337 | — | — | 35,337 | |||||||||||
Net cash (used by) provided by financing activities | (393,320 | ) | (381,536 | ) | 225,000 | (549,856 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (4,155 | ) | 122 | — | (4,033 | ) | |||||||||
Net (decrease) increase in cash and cash equivalents | $ | (217,421 | ) | $ | (238,033 | ) | $ | — | $ | (455,454 | ) | ||||
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 | (217,421 | ) | (238,033 | ) | — | (455,454 | ) | ||||||||
Cash and cash equivalents—end of period | $ | 725,909 | $ | 345,587 | $ | — | $ | 1,071,496 |
(1) | Note Regarding Forward-Looking Statements |
• | 2009—$91 million (91% operating expense and 9% cost of sales) (actual); |
• | 2010—$172 million (64% operating expense and 36% cost of sales) (actual); |
• | 2011—$217 million (51% operating expense and 49% cost of sales) (actual); |
• | 2012—$280 million (42% operating expense and 58% cost of sales) (actual); |
• | 2013—$305 million (approximately 40% operating expense and approximately 60% cost of sales) (estimated); and |
• | Ongoing annually upon completion—$320 million (approximately 35% operating expense and approximately 65% cost of sales) (estimated). |
Three months ended | ||||||||||||||
(in thousands, except earnings per share) | June 30, 2013 | July 1, 2012 | Increase (Decrease) | % Change | ||||||||||
Operating income from motorcycles & related products | $ | 357,665 | $ | 309,559 | $ | 48,106 | 15.5 | % | ||||||
Operating income from financial services | 74,156 | 81,954 | (7,798 | ) | (9.5 | ) | ||||||||
Operating income | 431,821 | 391,513 | 40,308 | 10.3 | ||||||||||
Investment income | 1,770 | 2,231 | (461 | ) | (20.7 | ) | ||||||||
Interest expense | 11,238 | 11,595 | (357 | ) | (3.1 | ) | ||||||||
Income before income taxes | 422,353 | 382,149 | 40,204 | 10.5 | ||||||||||
Provision for income taxes | 150,614 | 134,899 | 15,715 | 11.6 | ||||||||||
Net income | $ | 271,739 | $ | 247,250 | $ | 24,489 | 9.9 | % | ||||||
Diluted earnings per share | $ | 1.21 | $ | 1.07 | $ | 0.14 | 13.1 | % |
Three months ended | |||||||||||
June 30, 2013 | June 30, 2012 | Increase (Decrease) | % Change | ||||||||
North America Region | |||||||||||
United States | 58,241 | 55,761 | 2,480 | 4.4 | % | ||||||
Canada | 5,058 | 4,881 | 177 | 3.6 | % | ||||||
Total North America Region | 63,299 | 60,642 | 2,657 | 4.4 | % | ||||||
Europe, Middle East and Africa Region (EMEA) | |||||||||||
Europe(b) | 14,669 | 14,639 | 30 | 0.2 | % | ||||||
Other | 1,929 | 1,797 | 132 | 7.3 | % | ||||||
Total Europe Region | 16,598 | 16,436 | 162 | 1.0 | % | ||||||
Asia Pacific Region | |||||||||||
Japan | 3,174 | 2,898 | 276 | 9.5 | % | ||||||
Other | 4,019 | 3,509 | 510 | 14.5 | % | ||||||
Total Asia Pacific Region | 7,193 | 6,407 | 786 | 12.3 | % | ||||||
Latin America Region | 3,103 | 2,229 | 874 | 39.2 | % | ||||||
Total Worldwide Retail Sales | 90,193 | 85,714 | 4,479 | 5.2 | % |
(a) | Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning retail sales and this information is subject to revision. Only Harley-Davidson motorcycles are included in the table above. |
(b) | Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. |
Three months ended | |||||||||||||||||
June 30, 2013 | July 1, 2012 | Unit | Unit | ||||||||||||||
Units | Mix % | Units | Mix % | Increase (Decrease) | % Change | ||||||||||||
United States | 57,070 | 67.5 | % | 56,674 | 67.9 | % | 396 | 0.7 | % | ||||||||
International | 27,536 | 32.5 | % | 26,828 | 32.1 | % | 708 | 2.6 | |||||||||
Harley-Davidson motorcycle units | 84,606 | 100.0 | % | 83,502 | 100.0 | % | 1,104 | 1.3 | % | ||||||||
Touring motorcycle units | 32,384 | 38.3 | % | 32,218 | 38.6 | % | 166 | 0.5 | % | ||||||||
Custom motorcycle units(a) | 35,315 | 41.7 | % | 33,139 | 39.7 | % | 2,176 | 6.6 | |||||||||
Sportster motorcycle units | 16,907 | 20.0 | % | 18,145 | 21.7 | % | (1,238 | ) | (6.8 | ) | |||||||
Harley-Davidson motorcycle units | 84,606 | 100.0 | % | 83,502 | 100.0 | % | 1,104 | 1.3 | % |
(a) | Custom motorcycle units, as used in this table, include Dyna, Softail, VRSC and CVO models. |
Three months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | Increase (Decrease) | % Change | |||||||||||
Revenue: | ||||||||||||||
Motorcycles | $ | 1,274,882 | $ | 1,223,776 | $ | 51,106 | 4.2 | % | ||||||
Parts & Accessories | 269,588 | 265,574 | 4,014 | 1.5 | ||||||||||
General Merchandise | 81,700 | 75,137 | 6,563 | 8.7 | ||||||||||
Other | 5,296 | 4,560 | 736 | 16.1 | ||||||||||
Total revenue | 1,631,466 | 1,569,047 | 62,419 | 4.0 | ||||||||||
Cost of goods sold | 1,029,596 | 1,005,230 | 24,366 | 2.4 | ||||||||||
Gross profit | 601,870 | 563,817 | 38,053 | 6.7 | ||||||||||
Selling & administrative expense | 212,325 | 216,726 | (4,401 | ) | (2.0 | ) | ||||||||
Engineering expense | 37,177 | 31,312 | 5,865 | 18.7 | ||||||||||
Restructuring expense | (5,297 | ) | 6,220 | (11,517 | ) | NM | ||||||||
Operating expense | 244,205 | 254,258 | (10,053 | ) | (4.0 | ) | ||||||||
Operating income from motorcycles | $ | 357,665 | $ | 309,559 | $ | 48,106 | 15.5 | % |
Net Revenue | Cost of Goods Sold | Gross Profit | |||||||||
July 1, 2012 | $ | 1,569.0 | $ | 1,005.2 | $ | 563.8 | |||||
Volume | 34.6 | 24.8 | 9.8 | ||||||||
Price | 13.3 | 0.5 | 12.8 | ||||||||
Foreign currency exchange rates and hedging | (13.8 | ) | (0.4 | ) | (13.4 | ) | |||||
Product mix | 28.4 | 13.0 | 15.4 | ||||||||
Raw material prices | — | (3.0 | ) | 3.0 | |||||||
Manufacturing costs | — | (10.5 | ) | 10.5 | |||||||
Total | 62.5 | 24.4 | 38.1 | ||||||||
June 30, 2013 | $ | 1,631.5 | $ | 1,029.6 | $ | 601.9 |
• | Volume increases were driven by the increase in wholesale shipments. |
• | On average, wholesale prices on the Company’s 2013 model-year motorcycles are higher than the prior model year resulting in the favorable impact on revenue and gross profit during the period. |
• | Foreign currency exchange rates during the second quarter of 2013 resulted in a negative impact on net revenue. In addition, cost of goods sold was negatively impacted by unfavorable losses related to foreign currency hedging. The Company expects downward pressure on gross margins in the third quarter of 2013 as a result of currency devaluation in most of its key foreign currencies.(1) |
• | Shipment mix changes positively impacted net revenue and gross profit as a result of a positive mix shift between motorcycle families as compared to the same period last year. |
• | Raw material prices were lower in the second quarter of 2013 relative to the second quarter of 2012 primarily due to lower metals prices. |
• | Manufacturing costs in the second quarter of 2013 benefited from restructuring savings, lower temporary inefficiencies and a lower fixed cost per unit as a result of higher production volumes compared to the same period in 2012. |
Three months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | (Decrease) Increase | % Change | |||||||||||
Interest income | $ | 144,784 | $ | 144,830 | $ | (46 | ) | — | % | |||||
Other income | 18,057 | 15,783 | 2,274 | 14.4 | ||||||||||
Financial services revenue | 162,841 | 160,613 | 2,228 | 1.4 | ||||||||||
Interest expense | 45,506 | 48,712 | (3,206 | ) | (6.6 | ) | ||||||||
Provision for credit losses | 11,297 | (5,259 | ) | 16,556 | NM | |||||||||
Operating expenses | 31,882 | 35,206 | (3,324 | ) | (9.4 | ) | ||||||||
Financial services expense | 88,685 | 78,659 | 10,026 | 12.7 | ||||||||||
Operating income from financial services | $ | 74,156 | $ | 81,954 | $ | (7,798 | ) | (9.5 | )% |
Three months ended | |||||||
June 30, 2013 | July 1, 2012 | ||||||
Balance, beginning of period | $ | 106,792 | $ | 122,503 | |||
Provision for finance credit losses | 11,297 | (5,259 | ) | ||||
Charge-offs | (18,166 | ) | (17,054 | ) | |||
Recoveries | 11,401 | 14,058 | |||||
Balance, end of period | $ | 111,324 | $ | 114,248 |
Six months ended | ||||||||||||||
(in thousands, except earnings per share) | June 30, 2013 | July 1, 2012 | Increase (Decrease) | % Change | ||||||||||
Operating income from motorcycles & related products | $ | 634,426 | $ | 517,623 | $ | 116,803 | 22.6 | % | ||||||
Operating income from financial services | 145,701 | 149,348 | (3,647 | ) | (2.4 | ) | ||||||||
Operating income | 780,127 | 666,971 | 113,156 | 17.0 | ||||||||||
Investment income | 3,385 | 4,164 | (779 | ) | (18.7 | ) | ||||||||
Interest expense | 22,629 | 23,090 | (461 | ) | (2.0 | ) | ||||||||
Income before income taxes | 760,883 | 648,045 | 112,838 | 17.4 | ||||||||||
Provision for income taxes | 265,015 | 228,760 | 36,255 | 15.8 | ||||||||||
Net income | $ | 495,868 | $ | 419,285 | $ | 76,583 | 18.3 | % | ||||||
Diluted earnings per share | $ | 2.20 | $ | 1.81 | $ | 0.39 | 21.5 | % |
Six months ended | |||||||||||
6/30/2013 | 6/30/2012 | Increase (Decrease) | % Change | ||||||||
North America Region | |||||||||||
United States | 92,947 | 95,523 | (2,576 | ) | (2.7 | )% | |||||
Canada | 7,117 | 6,948 | 169 | 2.4 | |||||||
Total North America Region | 100,064 | 102,471 | (2,407 | ) | (2.3 | ) | |||||
Europe, Middle East and Africa Region (EMEA) | |||||||||||
Europe(b) | 22,369 | 23,521 | (1,152 | ) | (4.9 | ) | |||||
Other | 3,412 | 3,209 | 203 | 6.3 | |||||||
Total Europe Region | 25,781 | 26,730 | (949 | ) | (3.6 | ) | |||||
Asia Pacific Region | |||||||||||
Japan | 5,347 | 4,974 | 373 | 7.5 | |||||||
Other | 7,804 | 6,776 | 1,028 | 15.2 | |||||||
Total Asia Pacific Region | 13,151 | 11,750 | 1,401 | 11.9 | |||||||
Latin America Region | 5,451 | 4,440 | 1,011 | 22.8 | |||||||
Total Worldwide Retail Sales | 144,447 | 145,391 | (944 | ) | (0.6 | )% |
(a) | Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning retail sales and this information is subject to revision. |
(b) | Includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. |
Six months ended | |||||||||||
6/30/2013 | 6/30/2012 | Decrease | % Change | ||||||||
United States(b) | 170,379 | 181,569 | (11,190 | ) | (6.2 | )% | |||||
Six months ended | |||||||||||
6/30/2013 | 6/30/2012 | Decrease | % Change | ||||||||
Europe(c) | 183,041 | 201,138 | (18,097 | ) | (9.0 | )% |
(a) | Heavyweight data includes street legal 601+cc models. Street legal 601+cc models include on-highway, dual purpose models and three-wheeled vehicles. |
(b) | United States industry data is derived from information provided by Motorcycle Industry Council (MIC). This third party data is subject to revision and update. |
(c) | Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle registration data includes 601+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency. This third-party data is subject to revision and update. |
Six months ended | |||||||||||||||||
June 30, 2013 | July 1, 2012 | Unit | Unit | ||||||||||||||
Units | Mix % | Units | Mix % | Increase (Decrease) | % Change | ||||||||||||
United States | 107,753 | 67.4 | % | 97,967 | 66.3 | % | 9,786 | 10.0 | % | ||||||||
International | 52,075 | 32.6 | % | 49,798 | 33.7 | % | 2,277 | 4.6 | |||||||||
Harley-Davidson motorcycle units | 159,828 | 100.0 | % | 147,765 | 100.0 | % | 12,063 | 8.2 | % | ||||||||
Touring motorcycle units | 63,716 | 39.8 | % | 59,376 | 40.2 | % | 4,340 | 7.3 | % | ||||||||
Custom motorcycle units(a) | 65,617 | 41.1 | % | 57,711 | 39.1 | % | 7,906 | 13.7 | |||||||||
Sportster motorcycle units | 30,495 | 19.1 | % | 30,678 | 20.7 | % | (183 | ) | (0.6 | ) | |||||||
Harley-Davidson motorcycle units | 159,828 | 100.0 | % | 147,765 | 100.0 | % | 12,063 | 8.2 | % |
(a) | Custom motorcycle units, as used in this table, include Dyna, Softail, VRSC and CVO models. |
Six months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | Increase (Decrease) | % Change | |||||||||||
Revenue: | ||||||||||||||
Motorcycles | $ | 2,428,709 | $ | 2,219,678 | $ | 209,031 | 9.4 | % | ||||||
Parts & Accessories | 453,626 | 464,632 | (11,006 | ) | (2.4 | ) | ||||||||
General Merchandise | 153,844 | 149,743 | 4,101 | 2.7 | ||||||||||
Other | 9,535 | 8,363 | 1,172 | 14.0 | ||||||||||
Total revenue | 3,045,714 | 2,842,416 | 203,298 | 7.2 | ||||||||||
Cost of goods sold | 1,924,402 | 1,822,089 | 102,313 | 5.6 | ||||||||||
Gross profit | 1,121,312 | 1,020,327 | 100,985 | 9.9 | ||||||||||
Selling & administrative expense | 414,895 | 423,719 | (8,824 | ) | (2.1 | ) | ||||||||
Engineering expense | 74,350 | 61,314 | 13,036 | 21.3 | ||||||||||
Restructuring expense | (2,359 | ) | 17,671 | (20,030 | ) | NM | ||||||||
Operating expense | 486,886 | 502,704 | (15,818 | ) | (3.1 | ) | ||||||||
Operating income from motorcycles | $ | 634,426 | $ | 517,623 | $ | 116,803 | 22.6 | % |
Net Revenue | Cost of Goods Sold | Gross Profit | |||||||||
July 1, 2012 | $ | 2,842.4 | $ | 1,822.1 | $ | 1,020.3 | |||||
Volume | 183.5 | 124.6 | 58.9 | ||||||||
Price | 23.2 | 0.5 | 22.7 | ||||||||
Foreign currency exchange rates and hedging | (27.4 | ) | 1.1 | (28.5 | ) | ||||||
Shipment mix | 24.0 | 9.5 | 14.5 | ||||||||
Raw material prices | — | (4.5 | ) | 4.5 | |||||||
Manufacturing costs | — | (28.9 | ) | 28.9 | |||||||
Total | 203.3 | 102.3 | 101.0 | ||||||||
June 30, 2013 | $ | 3,045.7 | $ | 1,924.4 | $ | 1,121.3 |
• | Volume increases were driven by the increase in wholesale shipments partially offset by lower sales volumes for Parts and Accessories which were adversely impacted by the decrease in retail sales when compared to the same period last year. |
• | On average, wholesale prices on the Company’s 2013 model-year motorcycles were higher than the prior model year resulting in a favorable impact on revenue and gross profit during the period. |
• | Foreign currency exchange rates during the first six months of 2013 resulted in a negative impact on net revenue. In addition, cost of goods sold was negatively impacted by unfavorable losses related to foreign currency hedging. |
• | Shipment mix changes positively impacted net revenue and gross profit as a result of a positive mix shift between motorcycle families as compared to the same period last year. |
• | Raw material prices were slightly lower in the first half of 2013 relative to the first half of 2012. |
• | Manufacturing costs in the first six months of 2013 benefited from restructuring savings, lower temporary inefficiencies and a lower fixed cost per unit as a result of higher production volumes compared to the same period in 2012. |
Six months ended | ||||||||||||||
June 30, 2013 | July 1, 2012 | (Decrease) Increase | % Change | |||||||||||
Interest income | $ | 288,731 | $ | 288,809 | $ | (78 | ) | — | % | |||||
Other income | 31,075 | 28,126 | 2,949 | 10.5 | ||||||||||
Financial services revenue | 319,806 | 316,935 | 2,871 | 0.9 | ||||||||||
Interest expense | 86,060 | 99,968 | (13,908 | ) | (13.9 | ) | ||||||||
Provision for credit losses | 24,407 | 3,754 | 20,653 | 550.2 | ||||||||||
Operating expenses | 63,638 | 63,865 | (227 | ) | (0.4 | ) | ||||||||
Financial services expense | 174,105 | 167,587 | 6,518 | 3.9 | ||||||||||
Operating income from financial services | $ | 145,701 | $ | 149,348 | $ | (3,647 | ) | (2.4 | )% |
Six months ended | |||||||
June 30, 2013 | July 1, 2012 | ||||||
Balance, beginning of period | $ | 107,667 | $ | 125,449 | |||
Provision for credit losses | 24,407 | 3,754 | |||||
Charge-offs | (43,409 | ) | (42,906 | ) | |||
Recoveries | 22,659 | 27,951 | |||||
Balance, end of period | $ | 111,324 | $ | 114,248 |
2013 | 2014 - 2015 | 2016 - 2017 | Thereafter | Total | |||||||||||||||
Principal payments on debt | $ | 722,828 | $ | 2,247,362 | $ | 1,553,328 | $ | 1,012,853 | $ | 5,536,371 | |||||||||
Interest payments on debt | 95,272 | 300,250 | 151,690 | 28,780 | 575,992 | ||||||||||||||
$ | 818,100 | $ | 2,547,612 | $ | 1,705,018 | $ | 1,041,633 | $ | 6,112,363 |
June 30, 2013 | |||
Cash and cash equivalents | $ | 1,300,690 | |
Marketable securities | 133,631 | ||
Total cash and cash equivalents and marketable securities | 1,434,321 | ||
Global credit facilities | 824,255 | ||
Asset-backed U.S. commercial paper conduit facility(a) | 600,000 | ||
Asset-backed Canadian commercial paper conduit facility(b) | 14,871 | ||
Total availability under credit facilities | 1,439,126 | ||
Total | $ | 2,873,447 |
(a) | The U.S. commercial paper conduit facility expires on September 13, 2013. The Company anticipates that it will renew this facility prior to expiration.(1) |
(b) | The Canadian commercial paper conduit facility expires on June 30, 2014 and is limited to Canadian denominated borrowings. The Company anticipates that it will renew this facility prior to expiration.(1) |
Six months ended | |||||||
June 30, 2013 | July 1, 2012 | ||||||
Net cash provided by operating activities | $ | 389,677 | $ | 288,242 | |||
Net cash used by investing activities | (289,461 | ) | (189,807 | ) | |||
Net cash provided by (used by) financing activities | 150,490 | (549,856 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (18,154 | ) | (4,033 | ) | |||
Net increase (decrease) in cash and cash equivalents | $ | 232,552 | $ | (455,454 | ) |
June 30, 2013 | July 1, 2012 | ||||||
Global credit facilities | $ | — | $ | 143,792 | |||
Unsecured commercial paper | 525,745 | 845,868 | |||||
Asset-backed Canadian commercial paper conduit facility | 175,229 | — | |||||
Medium-term notes | 2,858,638 | 2,698,359 | |||||
Senior unsecured notes | 303,000 | 303,000 | |||||
Term asset-backed securitization debt | 1,673,759 | 1,339,232 | |||||
Total debt | $ | 5,536,371 | $ | 5,330,251 |
Short-Term | Long-Term | Outlook | |||
Moody’s | P2 | Baa1 | Positive | ||
Standard & Poor’s | A2 | BBB+ | Positive | ||
Fitch(1) | F2 | A- | Stable |
Principal Amount | Rate | Issue Date | Maturity Date | |||
$500,000 | 5.75% | November 2009 | December 2014 | |||
$600,000 | 1.15% | September 2012 | September 2015 | |||
$450,000 | 3.875% | March 2011 | March 2016 | |||
$400,000 | 2.70% | January 2012 | March 2017 | |||
$910,511 | 6.80% | May 2008 | June 2018 |
• | incur certain additional indebtedness; |
• | assume or incur certain liens; |
• | participate in certain mergers, consolidations, liquidations or dissolutions; and |
• | purchase or hold margin stock. |
(i) | execute its business strategy, |
(ii) | adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, |
(iii) | manage through inconsistent economic conditions, including changing capital, credit and retail markets, |
(iv) | implement and manage enterprise-wide information technology solutions, including solutions at its manufacturing facilities, and secure data contained in those systems, |
(v) | anticipate the level of consumer confidence in the economy, |
(vi) | continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead, |
(vii) | manage production capacity and production changes, |
(viii) | manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, |
(ix) | provide products, services and experiences that are successful in the marketplace, |
(x) | manage risks that arise through expanding international operations and sales, |
(xi) | manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio, |
(xii) | successfully implement with our labor unions the agreements that we have executed with them that we believe will provide flexibility and cost-effectiveness to accomplish restructuring goals and long-term competitiveness, |
(xiii) | effectively execute the Company’s restructuring plans within expected costs and timing, |
(xiv) | manage supply chain issues, including any unexpected interruptions or price increases caused by raw material shortages or natural disasters, |
(xv) | develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, |
(xvi) | adjust to healthcare inflation and reform, pension reform and tax changes, |
(xvii) | retain and attract talented employees, |
(xviii) | manage the risks that our independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand, |
(xix) | continue to have access to reliable sources of capital funding and adjust to fluctuations in the cost of capital, |
(xx) | continue to develop the capabilities of its distributor and dealer network, and |
(xxi) | detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation. |
2013 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 | |||||||
April 1 to May 5 | 726,609 | 52 | 726,609 | 12,881,045 | |||||||
May 6 to June 2 | 374,113 | 56 | 374,113 | 12,667,110 | |||||||
June 3 to June 30 | 434,961 | 53 | 434,961 | 12,233,639 | |||||||
Total | 1,535,683 | 54 | 1,535,683 |
(a) | Includes discretionary share repurchases and shares of common stock that employees surrendered to satisfy withholding taxes in connection with the vesting of restricted stock awards |
HARLEY-DAVIDSON, INC. | |
Date: 8/8/2013 | /s/ John A. Olin |
John A. Olin | |
Senior Vice President and | |
Chief Financial Officer | |
(Principal financial officer) |
Date: 8/8/2013 | /s/ Mark R. Kornetzke |
Mark R. Kornetzke | |
Chief Accounting Officer | |
(Principal accounting officer) |
Exhibit No. | Description | |
31.1 | Chief Executive Officer Certification pursuant to Rule 13a-14(a) | |
31.2 | Chief Financial Officer Certification pursuant to Rule 13a-14(a) | |
32.1 | Written Statement of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. §1350 | |
101 | Financial statements from the quarterly report on Form 10-Q of Harley-Davidson, Inc. for the quarter ended June 30, 2013, filed on August 8, 2013, formatted in XBRL: (i) the Condensed Consolidated Statements of Operations; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; and (v) the Notes to Condensed Consolidated Financial Statements. |
1. | I have reviewed this quarterly report on Form 10-Q of Harley-Davidson, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 8, 2013 | /s/ Keith E. Wandell |
Keith E. Wandell | |
Chairman, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Harley-Davidson, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 8, 2013 | /s/ John A. Olin |
John A. Olin | |
Senior Vice President and | |
Chief Financial Officer |
Date: August 8, 2013 | /s/ Keith E. Wandell |
Keith E. Wandell | |
Chairman, President and Chief Executive Officer | |
/s/ John A. Olin | |
John A. Olin | |
Senior Vice President and | |
Chief Financial Officer |
Product Warranty and Safety Recall Campaigns
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Jun. 30, 2013
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranty and Safety Recall Campaigns | Product Warranty and Safety Recall Campaigns The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company currently provides a standard three-year limited warranty on all new motorcycles sold. In addition, the Company provides a one-year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company maintains reserves for future warranty claims using an estimated cost, which is based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary safety recall campaigns. The Company reserves for all estimated costs associated with safety recalls in the period that the safety recalls are announced. Changes in the Company’s warranty and safety recall liability were as follows (in thousands):
The liability for safety recall campaigns was $3.0 million, $4.6 million and $6.7 million as of June 30, 2013, December 31, 2012 and July 1, 2012, respectively. |
Derivative Instruments And Hedging Activities (Derivative Instrument Fair Value) (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Jul. 01, 2012
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Derivatives Designated As Hedging Instruments [Member]
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Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 334,633 | $ 381,885 | [1] | $ 286,887 | ||||||||
Derivatives Designated As Hedging Instruments [Member] | Other Current Assets [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Asset, Current | 11,214 | [2] | 317 | [1] | 8,879 | [2] | ||||||
Derivatives Designated As Hedging Instruments [Member] | Accrued Liabilities [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Liability, Current | 128 | [1] | 7,906 | [1] | 2,042 | [1] | ||||||
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | 333,407 | 345,021 | [1] | 244,221 | ||||||||
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Asset, Current | 11,214 | [2] | 169 | [1] | 8,879 | [2] | ||||||
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Accrued Liabilities [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Liability, Current | 29 | [1] | 6,850 | [1] | 1,027 | [1] | ||||||
Derivatives Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | 1,226 | 1,064 | [1] | 1,066 | ||||||||
Derivatives Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Other Current Assets [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Asset, Current | 0 | [2] | 148 | [1] | 0 | [2] | ||||||
Derivatives Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Accrued Liabilities [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Liability, Current | 99 | [1] | 683 | [1] | 33 | [1] | ||||||
Derivatives Designated As Hedging Instruments [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | 0 | [3] | 35,800 | [1],[3] | 41,600 | [3] | ||||||
Derivatives Designated As Hedging Instruments [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Asset, Current | 0 | [2],[3] | 0 | [1],[3] | 0 | [2],[3] | ||||||
Derivatives Designated As Hedging Instruments [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member] | Cash Flow Hedging [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Liability, Current | 0 | [1],[3] | 373 | [1],[3] | 982 | [1],[3] | ||||||
Derivatives Not Designated As Hedging Instruments [Member]
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Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | 11,958 | 16,237 | 4,346 | |||||||||
Derivatives Not Designated As Hedging Instruments [Member] | Other Current Assets [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Asset, Current | 0 | [2] | 0 | [2] | 0 | [2] | ||||||
Derivatives Not Designated As Hedging Instruments [Member] | Accrued Liabilities [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Liability, Current | 442 | [1] | 14 | [1] | 0 | [1] | ||||||
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contract [Member]
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Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | 11,958 | 16,237 | 4,346 | |||||||||
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Other Current Assets [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Asset, Current | 0 | [2] | 0 | [2] | 0 | [2] | ||||||
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contract [Member] | Accrued Liabilities [Member]
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Derivative [Line Items] | ||||||||||||
Derivative Liability, Current | $ 442 | [1] | $ 14 | [1] | $ 0 | [1] | ||||||
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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Jul. 01, 2012
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Current assets: | |||
Cash and cash equivalents | $ 1,300,690 | $ 1,068,138 | $ 1,071,496 |
Marketable securities | 133,631 | 135,634 | 135,848 |
Accounts receivable, net | 253,819 | 230,079 | 250,268 |
Finance receivables, net | 2,010,974 | 1,743,045 | 1,854,838 |
Inventories | 307,717 | 393,524 | 323,046 |
Restricted cash | 212,004 | 188,008 | 188,564 |
Other current assets | 235,636 | 292,508 | 245,807 |
Total current assets | 4,454,471 | 4,050,936 | 4,069,867 |
Finance receivables, net | 4,214,612 | 4,038,807 | 4,161,731 |
Property, plant and equipment, net | 790,563 | 815,464 | 776,793 |
Goodwill | 29,183 | 29,530 | 28,604 |
Other long-term assets | 218,369 | 236,036 | 279,789 |
Total assets | 9,707,198 | 9,170,773 | 9,316,784 |
Current liabilities: | |||
Accounts payable | 344,423 | 257,386 | 252,239 |
Accrued liabilities | 450,247 | 513,591 | 535,097 |
Short-term debt | 525,745 | 294,943 | 845,868 |
Current portion of long-term debt | 776,274 | 437,162 | 907,389 |
Total current liabilities | 2,096,689 | 1,503,082 | 2,540,593 |
Long-term debt | 4,234,352 | 4,370,544 | 3,576,994 |
Pension liability | 148,974 | 330,294 | 122,496 |
Postretirement healthcare liability | 271,122 | 278,062 | 263,295 |
Other long-term liabilities | 134,822 | 131,167 | 147,019 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Preferred stock, none issued | 0 | 0 | 0 |
Common stock | 3,414 | 3,413 | 3,408 |
Additional paid-in-capital | 1,128,079 | 1,066,069 | 1,032,430 |
Retained earnings | 7,708,238 | 7,306,424 | 7,171,820 |
Accumulated other comprehensive loss | (599,190) | (607,678) | (469,556) |
Treasury stock, at cost | (5,419,302) | (5,210,604) | (5,071,715) |
Total shareholders' equity | 2,821,239 | 2,557,624 | 2,666,387 |
Total liabilities and shareholders' equity | 9,707,198 | 9,170,773 | 9,316,784 |
Variable Interest Entity, Primary Beneficiary [Member]
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Current assets: | |||
Finance receivables, net | 461,978 | 470,134 | 456,285 |
Restricted cash | 198,893 | 176,290 | 188,564 |
Other current assets | 4,256 | 5,288 | 4,401 |
Finance receivables, net | 1,717,462 | 1,631,435 | 1,592,544 |
Current liabilities: | |||
Current portion of long-term debt | 433,524 | 399,477 | 507,427 |
Long-term debt | $ 1,240,235 | $ 1,048,299 | $ 831,805 |
Finance Receivables
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables | Finance Receivables HDFS provides retail financial services to customers of the Company’s independent dealers in the United States and Canada. The origination of retail loans is a separate and distinct transaction between HDFS and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and installment loans. HDFS holds either titles or liens on titles to vehicles financed by promissory notes and installment loans. HDFS offers wholesale financing to the Company’s independent dealers. Wholesale loans to dealers are generally secured by financed inventory or property and are originated in the U.S. and Canada. Finance receivables, net, consisted of the following (in thousands):
A provision for credit losses on finance receivables is charged or credited to earnings in amounts that the Company believes are sufficient to maintain the allowance for credit losses at a level that is adequate to cover losses of principal inherent in the existing portfolio. The allowance for credit losses represents management’s estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. However, due to the use of projections and assumptions in estimating the losses, the amount of losses actually incurred by the Company could differ from the amounts estimated. Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):
Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement. Portions of the allowance for credit losses are specified to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance for credit losses covers estimated losses on finance receivables which are collectively reviewed for impairment. The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. HDFS performs a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. HDFS utilizes loss forecast models which consider 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 including items such as unemployment rates. Retail finance receivables are not evaluated individually for impairment prior to charge-off and therefore are not reported as impaired loans. 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. A specific allowance for credit losses is established for wholesale finance receivables determined to be individually impaired when management concludes that the borrower will not be able to make full payment of the contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash that the Company expects to receive discounted at the loan’s original interest rate or the fair value of the collateral, if the loan is collateral-dependent. Finance receivables in the wholesale portfolio that are not considered impaired on an individual basis are segregated, based on similar risk characteristics, according to the Company’s internal risk rating system and collectively evaluated for impairment. 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, current economic conditions, and the value of the underlying collateral. 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 restructured finance receivables are not significant. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands):
There were no wholesale finance receivables at June 30, 2013, December 31, 2012, or July 1, 2012 that were individually deemed to be impaired under ASC Topic 310, “Receivables.” 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. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of June 30, 2013, December 31, 2012 and July 1, 2012, all retail finance receivables were accounted for as interest-earning receivables, of which $13.9 million, $27.6 million and $14.8 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. Interest continues to accrue on past due finance receivables until the date the finance receivable becomes uncollectible and the finance receivable is placed on non-accrual status. HDFS 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. Wholesale finance receivables are written down once management determines that the specific borrower does not have the ability to repay the loan in full. There were no wholesale receivables on non-accrual status at June 30, 2013, December 31, 2012 or July 1, 2012. At June 30, 2013, December 31, 2012 and July 1, 2012, $0.2 million, $0.4 million, and $0.6 million of wholesale finance receivables were 90 days or more past due and accruing interest, respectively. An analysis of the aging of past due finance receivables was as follows (in thousands):
A significant part of managing HDFS’ finance receivable portfolios includes the assessment of credit risk associated with each borrower. As the credit risk varies between the retail and wholesale portfolios, HDFS utilizes different credit risk indicators for each portfolio. HDFS manages retail credit risk through its credit approval policy and ongoing collection efforts. HDFS 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. Retail loans with a FICO score of 640 or above at origination are considered prime, and loans with a FICO score below 640 are considered sub-prime. These credit quality indicators are determined at the time of loan origination and are not updated subsequent to the loan origination date. The recorded investment of retail finance receivables, by credit quality indicator, was as follows (in thousands):
HDFS’ 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. HDFS 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. HDFS uses the following internal credit quality indicators, based on the Company’s 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 management’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 internal rating system considers factors such as the specific borrowers’ ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated on a quarterly basis. The recorded investment of wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):
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Restructuring Expense (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Plan Reserve Recorded In Accrued Liabilities | The following table summarizes the Motorcycles segment’s 2010 Restructuring Plan reserve activity and balances as recorded in accrued liabilities (in thousands):
The following table summarizes the Motorcycles segment’s 2011 Kansas City Restructuring Plan and modified 2011 New Castalloy Restructuring Plan reserve activity and balances as recorded in accrued liabilities (in thousands):
The following table summarizes the Company’s 2009 Restructuring Plan reserve activity and balances recorded in accrued liabilities (in thousands):
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Supplemental Consolidating Data (Operations) (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
|
Segment Reporting Information [Line Items] | ||||
Motorcycles and related products | $ 1,631,466 | $ 1,569,047 | $ 3,045,714 | $ 2,842,416 |
Financial services | 162,841 | 160,613 | 319,806 | 316,935 |
Total revenue | 1,794,307 | 1,729,660 | 3,365,520 | 3,159,351 |
Motorcycles and related products cost of goods sold | 1,029,596 | 1,005,230 | 1,924,402 | 1,822,089 |
Financial services interest expense | 45,506 | 48,712 | 86,060 | 99,968 |
Provision for credit losses | 11,297 | (5,259) | 24,407 | 3,754 |
Selling, administrative and engineering expense | 281,384 | 283,244 | 552,883 | 548,898 |
Restructuring (benefit) expense | (5,297) | 6,220 | (2,359) | 17,671 |
Total costs and expenses | 1,362,486 | 1,338,147 | 2,585,393 | 2,492,380 |
Operating income | 431,821 | 391,513 | 780,127 | 666,971 |
Investment income | 1,770 | 2,231 | 3,385 | 4,164 |
Interest expense | 11,238 | 11,595 | 22,629 | 23,090 |
Income before provision for income taxes | 422,353 | 382,149 | 760,883 | 648,045 |
Provision for income taxes | 150,614 | 134,899 | 265,015 | 228,760 |
Net income | 271,739 | 247,250 | 495,868 | 419,285 |
Motorcycles And Related Products Operations [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Motorcycles and related products | 1,634,165 | 1,572,003 | 3,050,974 | 2,847,786 |
Financial services | 0 | 0 | 0 | 0 |
Total revenue | 1,634,165 | 1,572,003 | 3,050,974 | 2,847,786 |
Motorcycles and related products cost of goods sold | 1,029,596 | 1,005,230 | 1,924,402 | 1,822,089 |
Financial services interest expense | 0 | 0 | 0 | 0 |
Provision for credit losses | 0 | 0 | 0 | 0 |
Selling, administrative and engineering expense | 249,996 | 248,268 | 490,071 | 484,847 |
Restructuring (benefit) expense | (5,297) | 6,220 | (2,359) | 17,671 |
Total costs and expenses | 1,274,295 | 1,259,718 | 2,412,114 | 2,324,607 |
Operating income | 359,870 | 312,285 | 638,860 | 523,179 |
Investment income | 1,770 | 2,231 | 188,385 | 229,164 |
Interest expense | 11,238 | 11,595 | 22,629 | 23,090 |
Income before provision for income taxes | 350,402 | 302,921 | 804,616 | 729,253 |
Provision for income taxes | 124,271 | 106,377 | 213,557 | 176,995 |
Net income | 226,131 | 196,544 | 591,059 | 552,258 |
Financial Services Operations [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Motorcycles and related products | 0 | 0 | 0 | 0 |
Financial services | 163,335 | 160,843 | 320,632 | 316,749 |
Total revenue | 163,335 | 160,843 | 320,632 | 316,749 |
Motorcycles and related products cost of goods sold | 0 | 0 | 0 | 0 |
Financial services interest expense | 45,506 | 48,712 | 86,060 | 99,968 |
Provision for credit losses | 11,297 | (5,259) | 24,407 | 3,754 |
Selling, administrative and engineering expense | 34,581 | 38,162 | 68,898 | 69,235 |
Restructuring (benefit) expense | 0 | 0 | 0 | 0 |
Total costs and expenses | 91,384 | 81,615 | 179,365 | 172,957 |
Operating income | 71,951 | 79,228 | 141,267 | 143,792 |
Investment income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Income before provision for income taxes | 71,951 | 79,228 | 141,267 | 143,792 |
Provision for income taxes | 26,343 | 28,522 | 51,458 | 51,765 |
Net income | 45,608 | 50,706 | 89,809 | 92,027 |
Eliminations & Adjustments [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Motorcycles and related products | (2,699) | (2,956) | (5,260) | (5,370) |
Financial services | (494) | (230) | (826) | 186 |
Total revenue | (3,193) | (3,186) | (6,086) | (5,184) |
Motorcycles and related products cost of goods sold | 0 | 0 | 0 | 0 |
Financial services interest expense | 0 | 0 | 0 | 0 |
Provision for credit losses | 0 | 0 | 0 | 0 |
Selling, administrative and engineering expense | (3,193) | (3,186) | (6,086) | (5,184) |
Restructuring (benefit) expense | 0 | 0 | 0 | 0 |
Total costs and expenses | (3,193) | (3,186) | (6,086) | (5,184) |
Operating income | 0 | 0 | 0 | 0 |
Investment income | 0 | 0 | (185,000) | (225,000) |
Interest expense | 0 | 0 | 0 | 0 |
Income before provision for income taxes | 0 | 0 | (185,000) | (225,000) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income | $ 0 | $ 0 | $ (185,000) | $ (225,000) |
Earnings Per Share
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table sets forth the computation for basic and diluted earnings per share (in thousands, except per share amounts):
Outstanding options to purchase 1.2 million and 2.1 million shares of common stock for the three months ended June 30, 2013 and July 1, 2012, respectively, and 1.3 million and 2.3 million shares of common stock for the six months ended June 30, 2013 and July 1, 2012, respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price and therefore the effect would have been anti-dilutive. The Company has a share-based compensation plan under which employees may be granted share-based awards including shares of restricted stock and restricted stock units (RSUs). Non-forfeitable dividends are paid on unvested shares of restricted stock and non-forfeitable dividend equivalents are paid on unvested RSUs. As such, shares of restricted stock and RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation for the three and six month periods ending June 30, 2013 and July 1, 2012, respectively. |
Finance Receivables (Recorded Investment Of Retail and Wholesale Finance Receivables By Credit Quality Indicator) (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
Jul. 01, 2012
|
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | $ 6,336,910 | $ 5,889,519 | $ 6,130,817 |
Retail [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | 5,248,289 | 5,073,115 | 5,225,779 |
Retail [Member] | Prime [Member]
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|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | 4,128,450 | 4,035,584 | 4,181,527 |
Retail [Member] | Sub-Prime [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | 1,119,839 | 1,037,531 | 1,044,252 |
Wholesale [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | 1,088,621 | 816,404 | 905,038 |
Wholesale [Member] | Doubtful [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | 3,958 | 8,107 | 9,467 |
Wholesale [Member] | Substandard [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | 14,187 | 2,593 | 5,902 |
Wholesale [Member] | Special Mention [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | 2,929 | 3,504 | 7,897 |
Wholesale [Member] | Risk Level, Medium [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | 10,041 | 8,451 | 808 |
Wholesale [Member] | Risk Level, Low [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Gross | $ 1,057,506 | $ 793,749 | $ 880,964 |
Income Taxes (Detail)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
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Income Tax Disclosure [Abstract] | ||
Income tax rate | 34.80% | 35.30% |
Additional Balance Sheet and Cash Flow Information (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
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Supplemental Cash Flow Information [Abstract] | ||
Gross unrealized gains (losses) | $ (1.0) | $ 0.5 |
Gross unrealized gains (losses), net of taxes | $ (0.6) | $ 0.3 |
Contractual maturities period of marketable securities, minimum (in months) | 1 month | |
Contractual maturities period of marketable securities, maximum (in months) | 35 months |
Fair Value Measurements (Tables)
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):
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Asset-Backed Financing (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Of Variable Interest Entities | The following table shows the assets and liabilities related to our asset-backed financings that were included in our financial statements (in thousands):
|
Finance Receivables (Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment) (Detail) (USD $)
|
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Jul. 01, 2012
|
Apr. 01, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 0 | $ 0 | $ 0 | |||
Collectively evaluated for impairment | 111,324,000 | 107,667,000 | 114,248,000 | |||
Total allowance for credit losses | 111,324,000 | 106,792,000 | 107,667,000 | 114,248,000 | 122,503,000 | 125,449,000 |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 6,336,910,000 | 5,889,519,000 | 6,130,817,000 | |||
Financing Receivable, Gross | 6,336,910,000 | 5,889,519,000 | 6,130,817,000 | |||
Wholesale [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 7,554,000 | 6,225,000 | 8,068,000 | |||
Total allowance for credit losses | 7,554,000 | 8,250,000 | 6,225,000 | 8,068,000 | 9,646,000 | 9,337,000 |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 1,088,621,000 | 816,404,000 | 905,038,000 | |||
Financing Receivable, Gross | 1,088,621,000 | 816,404,000 | 905,038,000 | |||
Retail [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 103,770,000 | 101,442,000 | 106,180,000 | |||
Total allowance for credit losses | 103,770,000 | 98,542,000 | 101,442,000 | 106,180,000 | 112,857,000 | 116,112,000 |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 5,248,289,000 | 5,073,115,000 | 5,225,779,000 | |||
Financing Receivable, Gross | $ 5,248,289,000 | $ 5,073,115,000 | $ 5,225,779,000 |
Business Segments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Selected segment information is set forth below (in thousands):
|
Additional Balance Sheet And Cash Flow Information (Reconciliation Of Net Income To Net Cash Used By Operating Activities) (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
|
Cash flows from operating activities: | ||||
Net Income | $ 271,739 | $ 247,250 | $ 495,868 | $ 419,285 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 83,406 | 85,997 | ||
Amortization of deferred loan origination costs | 40,947 | 38,075 | ||
Amortization of financing origination fees | 4,635 | 5,021 | ||
Provision for employee long-term benefits | 33,382 | 34,263 | ||
Contributions to pension and postretirement plans | (189,116) | (213,648) | ||
Stock compensation expense | 21,061 | 22,119 | ||
Net change in wholesale finance receivables related to sales | (293,293) | (124,919) | ||
Provision for credit losses | 11,297 | (5,259) | 24,407 | 3,754 |
Gains (Losses) on Extinguishment of Debt | 4,947 | 0 | ||
Foreign currency adjustments | 18,529 | 8,143 | ||
Other, net | (442) | 5,567 | ||
Changes in current assets and liabilities: | ||||
Accounts receivable, net | (34,787) | (34,977) | ||
Finance receivables-accrued interest and other | 699 | 2,912 | ||
Inventories | 69,475 | 89,162 | ||
Accounts payable and accrued liabilities | 70,721 | (12,286) | ||
Restructuring reserves | (22,790) | (9,915) | ||
Derivative instruments | (1,557) | (1,420) | ||
Other | 63,585 | (28,891) | ||
Total adjustments | (106,191) | (131,043) | ||
Net cash provided by operating activities | $ 389,677 | $ 288,242 |
Asset-Backed Financing (Narrative) (Detail)
|
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2013
Term Asset-Backed Securitization VIEs [Member]
Secured Debt [Member]
SPEs [Member]
USD ($)
|
Jul. 01, 2012
Term Asset-Backed Securitization VIEs [Member]
Secured Debt [Member]
SPEs [Member]
USD ($)
|
Jun. 30, 2013
Line of Credit [Member]
Asset-Backed Canadian Commercial Paper Conduit Facility [Member]
Variable Interest Entity, Not Primary Beneficiary [Member]
USD ($)
|
Jun. 30, 2013
Line of Credit [Member]
Asset-Backed Canadian Commercial Paper Conduit Facility [Member]
Foreign Line of Credit [Member]
CAD
|
Jun. 30, 2013
Third-party Bank [Member]
Line of Credit [Member]
Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member]
SPEs [Member]
USD ($)
|
Dec. 31, 2012
Third-party Bank [Member]
Line of Credit [Member]
Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member]
SPEs [Member]
USD ($)
|
Jul. 01, 2012
Third-party Bank [Member]
Line of Credit [Member]
Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member]
SPEs [Member]
USD ($)
|
|
Variable Interest Entity [Line Items] | |||||||
Company issued secured notes | $ 650,000,000 | $ 89,500,000 | |||||
Unaccreted premium | 700,000 | 1,800,000 | |||||
Total aggregate commitment | 200,000,000 | 600,000,000 | |||||
Debt Instrument, Term | 5 years | ||||||
Borrowings outstanding under conduit facility | 0 | 0 | 0 | ||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 37,300,000 | ||||||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement, Transfers During Period | 53,800,000 | ||||||
Cash Flows Between Transferor and Transferee, Proceeds from New Transfers | $ 47,100,000 |
Product Warranty and Safety Recall Campaigns (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty And Safety Recall Liability | Changes in the Company’s warranty and safety recall liability were as follows (in thousands):
|
Business Segments (Information By Strategic Business Units) (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
|
Segment Reporting Information [Line Items] | ||||
Motorcycles net revenue | $ 1,631,466 | $ 1,569,047 | $ 3,045,714 | $ 2,842,416 |
Selling, administrative and engineering expense | 281,384 | 283,244 | 552,883 | 548,898 |
Restructuring (benefit) expense | (5,297) | 6,220 | (2,359) | 17,671 |
Financial services revenue | 162,841 | 160,613 | 319,806 | 316,935 |
Operating income | 431,821 | 391,513 | 780,127 | 666,971 |
Motorcycles [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Motorcycles net revenue | 1,631,466 | 1,569,047 | 3,045,714 | 2,842,416 |
Gross profit | 601,870 | 563,817 | 1,121,312 | 1,020,327 |
Selling, administrative and engineering expense | 249,502 | 248,038 | 489,245 | 485,033 |
Restructuring (benefit) expense | (5,297) | 6,220 | (2,359) | 17,671 |
Operating income | 357,665 | 309,559 | 634,426 | 517,623 |
Financial Services [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Financial services revenue | 162,841 | 160,613 | 319,806 | 316,935 |
Financial services expense | 88,685 | 78,659 | 174,105 | 167,587 |
Operating income | $ 74,156 | $ 81,954 | $ 145,701 | $ 149,348 |
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