Supplemental Consolidating Data

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



	Three months ended March 30, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,573,967	$	—	$	(2,279	)	$	1,571,688
Financial Services	—		154,686		(326		)	154,360
Total revenue	1,573,967		154,686		(2,605		)	1,726,048
Costs and expenses:
Motorcycles and Related Products cost of goods sold	979,557		—		—			979,557
Financial Services interest expense	—		38,857		—			38,857
Financial Services provision for credit losses	—		20,331		—			20,331
Selling, administrative and engineering expense	244,765		34,261		(2,605		)	276,421
Total costs and expenses	1,224,322		93,449		(2,605		)	1,315,166
Operating income	349,645		61,237		—			410,882
Investment income	121,659		—		(120,000		)	1,659
Interest expense	3,677		—		—			3,677
Income before provision for income taxes	467,627		61,237		(120,000		)	408,864
Provision for income taxes	120,573		22,374		—			142,947
Net income	$	347,054	$	38,863	$	(120,000	)	$	265,917



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



	March 30, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	548,292	$	387,528	$	—		$	935,820
Marketable securities	92,940		—		—			92,940
Accounts receivable, net	1,240,820		—		(915,841		)	324,979
Finance receivables, net	—		2,223,199		—			2,223,199
Inventories	449,044		—		—			449,044
Restricted cash	—		117,883		—			117,883
Deferred income taxes	51,459		37,611		—			89,070
Other current assets	95,535		32,001		—			127,536
Total current assets	2,478,090		2,798,222		(915,841		)	4,360,471
Finance receivables, net	—		4,214,496		—			4,214,496
Property, plant and equipment, net	789,194		33,867		—			823,061
Prepaid pension costs	250,575		—		—			250,575
Goodwill	30,427		—		—			30,427
Deferred income taxes	3,023		—		—			3,023
Other long-term assets	110,763		12,743		(75,768		)	47,738
	$	3,662,072	$	7,059,328	$	(991,609	)	$	9,729,791
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	377,780	$	992,427	$	(915,841	)	$	454,366
Accrued liabilities	466,685		101,807		(1,737		)	566,755
Short-term debt	—		974,153		—			974,153
Current portion of long-term debt	—		848,840		—			848,840
Total current liabilities	844,465		2,917,227		(917,578		)	2,844,114
Long-term debt	—		3,271,648		—			3,271,648
Pension liability	37,261		—		—			37,261
Postretirement healthcare benefits	212,887		—		—			212,887
Deferred income taxes	31,864		2,372		1,737			35,973
Other long-term liabilities	146,641		21,432		—			168,073
Shareholders’ equity	2,388,954		846,649		(75,768		)	3,159,835
	$	3,662,072	$	7,059,328	$	(991,609	)	$	9,729,791



	December 31, 2013
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	718,912	$	347,700	$	—		$	1,066,612
Marketable securities	99,009		—		—			99,009
Accounts receivable, net	850,248		—		(589,183		)	261,065
Finance receivables, net	—		1,773,686		—			1,773,686
Inventories	424,507		—		—			424,507
Restricted cash	—		144,807		—			144,807
Deferred income taxes	70,557		33,068		—			103,625
Other current assets	82,717		34,573		(1,798		)	115,492
Total current assets	2,245,950		2,333,834		(590,981		)	3,988,803
Finance receivables, net	—		4,225,877		—			4,225,877
Property, plant and equipment, net	808,005		34,472		—			842,477
Prepaid pension costs	244,871		—		—			244,871
Goodwill	30,452		—		—			30,452
Deferred income taxes	3,339		—		—			3,339
Other long-term assets	126,940		17,360		(75,079		)	69,221
	$	3,459,557	$	6,611,543	$	(666,060	)	$	9,405,040
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	203,786	$	625,191	$	(589,183	)	$	239,794
Accrued liabilities	353,618		77,774		(4,057		)	427,335
Short-term debt	—		666,317		—			666,317
Current portion of long-term debt	303,000		873,140		—			1,176,140
Total current liabilities	860,404		2,242,422		(593,240		)	2,509,586
Long-term debt	—		3,416,713		—			3,416,713
Pension liability	36,371		—		—			36,371
Postretirement healthcare benefits	216,165		—		—			216,165
Deferred income taxes	44,584		2,656		2,259			49,499
Other long-term liabilities	146,686		20,534		—			167,220
Shareholders’ equity	2,155,347		929,218		(75,079		)	3,009,486
	$	3,459,557	$	6,611,543	$	(666,060	)	$	9,405,040



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



	Three months ended March 30, 2014
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net Income	$	347,054		$	38,863		$	(120,000	)	$	265,917
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	41,603			1,795			—			43,398
Amortization of deferred loan origination costs	—			22,101						22,101
Amortization of financing origination fees	59			2,026			—			2,085
Provision for employee long-term benefits	8,425			—			—			8,425
Contributions to pension and postretirement plans	(6,879		)	—			—			(6,879		)
Stock compensation expense	8,550			689			—			9,239
Net change in wholesale finance receivables related to sales	—			—			(439,422		)	(439,422		)
Provision for credit losses	—			20,331			—			20,331
Deferred income taxes	3,159			(3,633		)	—			(474		)
Foreign currency adjustments	(4,172		)	—			—			(4,172		)
Other, net	(496		)	3,551			—			3,055
Change in current assets and current liabilities:
Accounts receivable	(387,875		)	—			326,658			(61,217		)
Finance receivables—accrued interest and other	—			793			—			793
Inventories	(20,317		)	—			—			(20,317		)
Accounts payable and accrued liabilities	290,208			392,880			(326,658		)	356,430
Derivative instruments	1,222			—			—			1,222
Other	1,770			1,301			—			3,071
Total adjustments	(64,743		)	441,834			(439,422		)	(62,331		)
Net cash provided by operating activities	282,311			480,697			(559,422		)	203,586



	Three months ended March 30, 2014
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(24,691		)	(1,190		)	—			(25,881		)
Origination of finance receivables	—			(1,992,601		)	1,234,636			(757,965		)
Collections of finance receivables	—			1,502,645			(795,214		)	707,431
Sales and redemptions of marketable securities	6,001			—			—			6,001
Other	51			—			—			51
Net cash used by investing activities	(18,639		)	(491,146		)	439,422			(70,363		)
Cash flows from financing activities:
Repayments of senior unsecured notes	(303,000		)	—			—			(303,000		)
Repayments of securitization debt	—			(159,938		)	—			(159,938		)
Net increase in credit facilities and unsecured commercial paper	—			307,803			—			307,803
Borrowings of asset-backed commercial paper	—			13,746			—			13,746
Repayments of asset-backed commercial paper	—			(16,981		)	—			(16,981		)
Net change in restricted cash	—			26,924			—			26,924
Dividends paid	(60,527		)	(120,000		)	120,000			(60,527		)
Purchase of common stock for treasury	(87,690		)	—			—			(87,690		)
Excess tax benefits from share-based payments	4,763			—			—			4,763
Issuance of common stock under employee stock option plans	8,894			—			—			8,894
Net cash (used by) provided by financing activities	(437,560		)	51,554			120,000			(266,006		)
Effect of exchange rate changes on cash and cash equivalents	3,268			(1,277		)	—			1,991
Net (decrease) increase in cash and cash equivalents	$	(170,620	)	$	39,828		$	—		$	(130,792	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	718,912		$	347,700		$	—		$	1,066,612
Net (decrease) increase in cash and cash equivalents	(170,620		)	39,828			—			(130,792		)
Cash and cash equivalents—end of period	$	548,292		$	387,528		$	—		$	935,820



	Three months ended March 31, 2013
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	364,927		$	44,202		$	(185,000	)	$	224,129
Adjustments to reconcile net income to cash provided by (used by) operating activities:
Depreciation	41,484			1,366			—			42,850
Amortization of deferred loan origination costs	—			19,753			—			19,753
Amortization of financing origination fees	118			2,086			—			2,204
Provision for employee long-term benefits	16,684			—			—			16,684
Contributions to pension and postretirement plans	(182,047		)	—			—			(182,047		)
Stock compensation expense	10,330			766			—			11,096
Net change in wholesale finance receivables related to sales	—			—			(336,927		)	(336,927		)
Provision for credit losses	—			13,110			—			13,110
Deferred income taxes	5,626			1,039			—			6,665
Foreign currency adjustments	9,846			—			—			9,846
Other, net	(7,385		)	(1,085		)	—			(8,470		)
Change in current assets and current liabilities:
Accounts receivable	(291,616		)	—			255,451			(36,165		)
Finance receivables—accrued interest and other	—			1,246			—			1,246
Inventories	(28,613		)	—			—			(28,613		)
Accounts payable and accrued liabilities	21,476			313,836			(255,451		)	79,861
Restructuring reserves	(12,388		)	—			—			(12,388		)
Derivative instruments	(328		)	(14		)	—			(342		)
Other	66,976			2,043			—			69,019
Total adjustments	(349,837		)	354,146			(336,927		)	(332,618		)
Net cash provided by (used by) operating activities	15,090			398,348			(521,927		)	(108,489		)
Cash flows from investing activities:
Capital expenditures	(21,379		)	(882		)	—			(22,261		)
Origination of finance receivables	—			(1,744,023		)	1,121,650			(622,373		)
Collections of finance receivables	—			1,450,243			(784,723		)	665,520
Other	6,656			—			—			6,656
Net cash (used by) provided by investing activities	(14,723		)	(294,662		)	336,927			27,542
Cash flows from financing activities:
Loan to HDFS	100,000			(100,000		)	—			—
Repayments of securitization debt	—			(178,923		)	—			(178,923		)
Repayments of asset-backed commercial paper	—			(17,063		)	—			(17,063		)
Net increase in credit facilities and unsecured commercial paper	—			392,564			—			392,564
Net change in restricted cash	—			(9,017		)	—			(9,017		)
Dividends paid	(47,308		)	(185,000		)	185,000			(47,308		)
Purchase of common stock for treasury	(126,411		)	—			—			(126,411		)
Excess tax benefits from share-based payments	14,468			—			—			14,468
Issuance of common stock under employee stock option plans	13,887			—			—			13,887
Net cash (used by) provided by financing activities	(45,364		)	(97,439		)	185,000			42,197
Effect of exchange rate changes on cash and cash equivalents	(9,742		)	(887		)	—			(10,629		)
Net (decrease) increase in cash and cash equivalents	$	(54,739	)	$	5,360		$	—		$	(49,379	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	727,716		$	340,422		$	—		$	1,068,138
Net (decrease) increase in cash and cash equivalents	(54,739		)	5,360			—			(49,379		)
Cash and cash equivalents—end of period	$	672,977		$	345,782		$	—		$	1,018,759