Supplemental Consolidating Data (Tables)

9 Months Ended

Sep. 29, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Operations

	Three months ended September 29, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	1,183,016		$	—	$	(2,732	)	$	1,180,284
Financial services	—			163,829		(395		)	163,434
Total revenue	1,183,016			163,829		(3,127		)	1,343,718
Costs and expenses:
Motorcycles and related products cost of goods sold	763,969			—		—			763,969
Financial services interest expense	—			39,944		—			39,944
Financial services provision for credit losses	—			14,604		—			14,604
Selling, administrative and engineering expense	240,593			35,550		(3,127		)	273,016
Restructuring expense	646			—		—			646
Total costs and expenses	1,005,208			90,098		(3,127		)	1,092,179
Operating income	177,808			73,731		—			251,539
Investment income	1,161			—		—			1,161
Interest expense	11,369			—		—			11,369
Income before provision for income taxes	167,600			73,731		—			241,331
Provision for income taxes	51,721			26,894		—			78,615
Net income	$	115,879		$	46,837	$	—		$	162,716
	Nine months ended September 29, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and related products	$	4,233,990		$	—	$	(7,992	)	$	4,225,998
Financial services	—			484,461		(1,221		)	483,240
Total revenue	4,233,990			484,461		(9,213		)	4,709,238
Costs and expenses:
Motorcycles and related products cost of goods sold	2,688,371			—		—			2,688,371
Financial services interest expense	—			126,004		—			126,004
Financial services provision for credit losses	—			39,011		—			39,011
Selling, administrative and engineering expense	730,664			104,448		(9,213		)	825,899
Restructuring expense	(1,713		)	—		—			(1,713		)
Total costs and expenses	3,417,322			269,463		(9,213		)	3,677,572
Operating income	816,668			214,998		—			1,031,666
Investment income	189,546			—		(185,000		)	4,546
Interest expense	33,998			—		—			33,998
Income before provision for income taxes	972,216			214,998		(185,000		)	1,002,214
Provision for income taxes	265,278			78,352		—			343,630
Net income	$	706,938		$	136,646	$	(185,000	)	$	658,584

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

Balance Sheet

	September 29, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	652,961	$	376,994	$	—		$	1,029,955
Marketable securities	122,234		—		—			122,234
Accounts receivable, net	1,228,320		—		(938,162		)	290,158
Finance receivables, net	—		1,829,612		—			1,829,612
Inventories	401,199		—		—			401,199
Restricted cash	—		194,329		—			194,329
Other current assets	160,538		64,650		—			225,188
Total current assets	2,565,252		2,465,585		(938,162		)	4,092,675
Finance receivables, net	—		4,355,278		—			4,355,278
Property, plant and equipment, net	763,469		31,766		—			795,235
Goodwill	30,041		—		—			30,041
Other long-term assets	272,490		14,804		(76,515		)	210,779
	$	3,631,252	$	6,867,433	$	(1,014,677	)	$	9,484,008
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	276,197	$	988,678	$	(938,162	)	$	326,713
Accrued liabilities	455,393		86,003		(2,169		)	539,227
Short-term debt	—		394,460		—			394,460
Current portion of long-term debt	303,000		418,316		—			721,316
Total current liabilities	1,034,590		1,887,457		(940,331		)	1,981,716
Long-term debt	—		4,067,733		—			4,067,733
Pension liability	144,563		—		—			144,563
Postretirement healthcare benefits	267,919		—		—			267,919
Other long-term liabilities	121,003		19,227		—			140,230
Shareholders’ equity	2,063,177		893,016		(74,346		)	2,881,847
	$	3,631,252	$	6,867,433	$	(1,014,677	)	$	9,484,008

	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

	September 30, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,048,429	$	746,712	$	—		$	1,795,141
Marketable securities	136,376		—		—			136,376
Accounts receivable, net	623,021		—		(366,828		)	256,193
Finance receivables, net	—		1,726,061		—			1,726,061
Inventories	379,129		—		—			379,129
Restricted cash	—		217,400		—			217,400
Other current assets	177,278		60,118		—			237,396
Total current assets	2,364,233		2,750,291		(366,828		)	4,747,696
Finance receivables, net	—		4,189,606		—			4,189,606
Property, plant and equipment, net	735,719		29,116		—			764,835
Goodwill	28,928		—		—			28,928
Other long-term assets	338,987		20,193		(75,062		)	284,118
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	251,755	$	408,783	$	(366,828	)	$	293,710
Accrued liabilities	521,867		87,936		(3,725		)	606,078
Short-term debt	—		404,693		—			404,693
Current portion of long-term debt	—		997,194		—			997,194
Total current liabilities	773,622		1,898,606		(370,553		)	2,301,675
Long-term debt	303,000		4,169,413		—			4,472,413
Pension liability	125,664		—		—			125,664
Postretirement healthcare liability	261,564		—		—			261,564
Other long-term liabilities	134,509		15,995		—			150,504
Shareholders’ equity	1,869,508		905,192		(71,337		)	2,703,363
	$	3,467,867	$	6,989,206	$	(441,890	)	$	10,015,183

Cash Flows

	Nine months ended September 29, 2013
	Motorcycles &  Related Products Operations			Financial Services  Operations		Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net Income	$	706,938		136,646		$	(185,000	)	$	658,584
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	118,224			4,434		—			122,658
Amortization of deferred loan origination costs	—			63,548					63,548
Amortization of financing origination fees	355			6,639		—			6,994
Provision for employee long-term benefits	50,158			—		—			50,158
Contributions to pension and postretirement plans	(197,243		)	—		—			(197,243		)
Stock compensation expense	28,886			2,144		—			31,030
Net change in wholesale finance receivables related to sales	—			—		(71,869		)	(71,869		)
Provision for credit losses	—			39,011		—			39,011
Loss on debt extinguishment	—			4,947		—			4,947
Foreign currency adjustments	12,874			—		—			12,874
Other, net	207			(270	)	—			(63		)
Change in current assets and current liabilities:
Accounts receivable	(302,434		)	—		236,599			(65,835		)
Finance receivables—accrued interest and other	—			937		—			937
Inventories	(19,233		)	—		—			(19,233		)
Accounts payable and accrued liabilities	113,902			264,974		(236,599		)	142,277
Restructuring reserves	(24,521		)	—		—			(24,521		)
Derivative instruments	(1,790		)	(28	)	—			(1,818		)
Other	74,205			(1,538	)	—			72,667
Total adjustments	(146,410		)	384,798		(71,869		)	166,519
Net cash provided by (used by) operating activities	560,528			521,444		(256,869		)	825,103

	Nine months ended September 29, 2013
	Motorcycles &  Related Products Operations			Financial Services  Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(107,886		)	(3,804		)	—			(111,690		)
Origination of finance receivables	—			(5,832,489		)	3,215,389			(2,617,100		)
Collections of finance receivables	—			5,314,439			(3,143,520		)	2,170,919
Purchases of marketable securities	(4,998		)	—			—			(4,998		)
Sales and redemptions of marketable securities	17,105			—			—			17,105
Other	6,721			—			—			6,721
Net cash (used by) provided by investing activities	(89,058		)	(521,854		)	71,869			(539,043		)
Cash flows from financing activities:
Repayments of medium-term notes	—			(27,858		)	—			(27,858		)
Loan to HDFS	(150,000		)	150,000			—			—
Proceeds from securitization of debt	—			647,516			—			647,516
Repayments of securitization debt	—			(650,424		)	—			(650,424		)
Net increase in credit facilities and unsecured commercial paper	—			99,416			—			99,416
Borrowings of asset-backed commercial paper	—			69,555			—			69,555
Repayments of asset-backed commercial paper	—			(58,990		)	—			(58,990		)
Net change in restricted cash	—			(6,321		)	—			(6,321		)
Dividends paid	(140,772		)	(185,000		)	185,000			(140,772		)
Purchase of common stock for treasury	(302,196		)	—			—			(302,196		)
Excess tax benefits from share-based payments	18,444			—			—			18,444
Issuance of common stock under employee stock option plans	39,145			—			—			39,145
Net cash (used by) provided by financing activities	(535,379		)	37,894			185,000			(312,485		)
Effect of exchange rate changes on cash and cash equivalents	(10,846		)	(912		)	—			(11,758		)
Net (decrease) increase in cash and cash equivalents	$	(74,755	)	$	36,572		$	—		$	(38,183	)
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	(74,755		)	36,572			—			(38,183		)
Cash and cash equivalents—end of period	$	652,961		$	376,994		$	—		$	1,029,955

	Nine months ended September 30, 2012
	Motorcycles &  Related Products Operations			Financial Services  Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	641,368		$	136,918		$	(225,000	)	$	553,286
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	122,570			4,873			—			127,443
Amortization of deferred loan origination costs	—			58,438			—			58,438
Amortization of financing origination fees	355			7,107			—			7,462
Provision for employee long-term benefits	48,808			1,540			—			50,348
Contributions to pension and postretirement plans	(220,733		)	—			—			(220,733		)
Stock compensation expense	27,881			2,406			—			30,287
Net change in wholesale finance receivables related to sales	—			—			5,570			5,570
Provision for credit losses	—			12,823			—			12,823
Foreign currency adjustments	8,692			—			—			8,692
Other, net	2,252			7,159			—			9,411
Change in current assets and current liabilities:
Accounts receivable	(230,156		)	—			192,252			(37,904		)
Finance receivables—accrued interest and other	—			1,597			—			1,597
Inventories	36,463			—			—			36,463
Accounts payable and accrued liabilities	86,513			205,381			(192,252		)	99,642
Restructuring reserves	(9,177		)	—			—			(9,177		)
Derivative instruments	739			(128		)	—			611
Other	(19,550		)	(2,211		)	—			(21,761		)
Total adjustments	(145,343		)	298,985			5,570			159,212
Net cash provided by (used by) operating activities	496,025			435,903			(219,430		)	712,498
Cash flows from investing activities:
Capital expenditures	(91,469		)	(3,860		)	—			(95,329		)
Origination of finance receivables	—			(5,315,732		)	2,987,079			(2,328,653		)
Collections of finance receivables	—			5,123,674			(2,992,649		)	2,131,025
Purchases of marketable securities	(4,993		)	—			—			(4,993		)
Sales and redemptions of marketable securities	23,046			—			—			23,046
Net cash used by investing activities	(73,416		)	(195,918		)	(5,570		)	(274,904		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			993,737			—			993,737
Proceeds from securitization debt	—			763,895			—			763,895
Repayments of securitization debt	—			(1,161,592		)	—			(1,161,592		)
Borrowings of asset-backed commercial paper	—			182,131			—			182,131
Repayments of asset-backed commercial paper	—			(6,538		)	—			(6,538		)
Net decrease in credit facilities and unsecured commercial paper	—			(634,874		)	—			(634,874		)
Net change in restricted cash	—			12,255			—			12,255
Dividends paid	(106,560		)	(225,000		)	225,000			(106,560		)
Purchase of common stock for treasury	(257,981		)	—			—			(257,981		)
Excess tax benefits from share-based payments	16,390			—			—			16,390
Issuance of common stock under employee stock option plans	36,342			—			—			36,342
Net cash (used by) provided by financing activities	(311,809		)	(75,986		)	225,000			(162,795		)
Effect of exchange rate changes on cash and cash equivalents	(5,701		)	(907		)	—			(6,608		)
Net increase in cash and cash equivalents	$	105,099		$	163,092		$	—		$	268,191
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	943,330		$	583,620		$	—		$	1,526,950
Net increase in cash and cash equivalents	105,099			163,092			—			268,191
Cash and cash equivalents—end of period	$	1,048,429		$	746,712		$	—		$	1,795,141