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.



	Year Ended December 31, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	5,577,697	$	—	$	(10,016	)	$	5,567,681
Financial Services	—		662,345		(1,518		)	660,827
Total revenue	5,577,697		662,345		(11,534		)	6,228,508
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,542,601		—		—			3,542,601
Financial Services interest expense	—		164,476		—			164,476
Financial Services provision for credit losses	—		80,946		—			80,946
Selling, administrative and engineering expense	1,023,450		147,586		(11,534		)	1,159,502
Total costs and expenses	4,566,051		393,008		(11,534		)	4,947,525
Operating income	1,011,646		269,337		—			1,280,983
Investment income	126,499		—		(120,000		)	6,499
Interest expense	4,162		—		—			4,162
Income before provision for income taxes	1,133,983		269,337		(120,000		)	1,283,320
Provision for income taxes	338,453		100,256		—			438,709
Net income	$	795,530	$	169,081	$	(120,000	)	$	844,611



	Year Ended December 31, 2013
	Motorcycles & Related Products Operations			Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	5,268,480		$	—	$	(10,190	)	$	5,258,290
Financial Services	—			643,067		(1,485		)	641,582
Total revenue	5,268,480			643,067		(11,675		)	5,899,872
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,395,918			—		—			3,395,918
Financial Services interest expense	—			165,491		—			165,491
Financial Services provision for credit losses	—			60,008		—			60,008
Selling, administrative and engineering expense	995,378			143,181		(11,675		)	1,126,884
Restructuring benefit	(2,131		)	—		—			(2,131		)
Total costs and expenses	4,389,165			368,680		(11,675		)	4,746,170
Operating income	879,315			274,387		—			1,153,702
Investment income	190,859			—		(185,000		)	5,859
Interest expense	45,256			—		—			45,256
Income before provision for income taxes	1,024,918			274,387		(185,000		)	1,114,305
Provision for income taxes	279,841			100,471		—			380,312
Net income	$	745,077		$	173,916	$	(185,000	)	$	733,993



	Year Ended December 31, 2012
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	4,952,748	$	—	$	(10,166	)	$	4,942,582
Financial Services	—		639,482		(1,558		)	637,924
Total revenue	4,952,748		639,482		(11,724		)	5,580,506
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,222,394		—		—			3,222,394
Financial Services interest expense	—		195,990		—			195,990
Financial Services provision for credit losses	—		22,239		—			22,239
Selling, administrative and engineering expense	977,782		145,174		(11,724		)	1,111,232
Restructuring expense	28,475		—		—			28,475
Total costs and expenses	4,228,651		363,403		(11,724		)	4,580,330
Operating income	724,097		276,079		—			1,000,176
Investment income	232,369		—		(225,000		)	7,369
Interest expense	46,033		—		—			46,033
Income before provision for income taxes	910,433		276,079		(225,000		)	961,512
Provision for income taxes	233,385		104,202		—			337,587
Net income	$	677,048	$	171,877	$	(225,000	)	$	623,925



	December 31, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	573,895	$	332,785	$	—		$	906,680
Marketable securities	57,325		—		—			57,325
Accounts receivable, net	658,735		—		(411,114		)	247,621
Finance receivables, net	—		1,916,635		—			1,916,635
Inventories	448,871		—		—			448,871
Restricted cash	—		98,627		—			98,627
Deferred income taxes	50,015		39,901		—			89,916
Other current assets	142,278		43,125		(2,983		)	182,420
Total current assets	1,931,119		2,431,073		(414,097		)	3,948,095
Finance receivables, net	—		4,516,246		—			4,516,246
Property, plant and equipment, net	848,661		34,416		—			883,077
Goodwill	27,752		—		—			27,752
Deferred income taxes	75,121		4,863		(2,149		)	77,835
Other long-term assets	113,727		39,309		(77,944		)	75,092
	$	2,996,380	$	7,025,907	$	(494,190	)	$	9,528,097
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	171,098	$	436,884	$	(411,114	)	$	196,868
Accrued liabilities	370,652		83,797		(5,132		)	449,317
Short-term debt	—		731,786		—			731,786
Current portion of long-term debt	—		1,011,315		—			1,011,315
Total current liabilities	541,750		2,263,782		(416,246		)	2,389,286
Long-term debt	—		3,761,528		—			3,761,528
Pension liability	76,186		—		—			76,186
Postretirement healthcare liability	203,006		—		—			203,006
Other long-term liabilities	164,060		24,745		—			188,805
Commitments and contingencies (Note 15)
Total shareholders’ equity	2,011,378		975,852		(77,944		)	2,909,286
	$	2,996,380	$	7,025,907	$	(494,190	)	$	9,528,097



	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 liability	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
Commitments and contingencies (Note 15)
Total shareholders’ equity	2,155,347		929,218		(75,079		)	3,009,486
	$	3,459,557	$	6,611,543	$	(666,060	)	$	9,405,040



	Year Ended December 31, 2014
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	795,530		$	169,081		$	(120,000	)	$	844,611
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	171,187			8,113			—			179,300
Amortization of deferred loan origination costs	—			94,429			—			94,429
Amortization of financing origination fees	59			8,383			—			8,442
Provision for employee long-term benefits	33,709			—			—			33,709
Contributions to pension and postretirement plans	(29,686		)	—			—			(29,686		)
Stock compensation expense	35,064			2,865			—			37,929
Net change in wholesale finance receivables	—			—			(75,210		)	(75,210		)
Provision for credit losses	—			80,946			—			80,946
Loss on debt extinguishment	—			3,942			—			3,942
Deferred income taxes	(191		)	(7,430		)	—			(7,621		)
Foreign currency adjustments	21,964			—			—			21,964
Other, net	20,273			(21,764		)	—			(1,491		)
Change in current assets and current liabilities:
Accounts receivable	(31,740		)	—			21,931			(9,809		)
Finance receivables—accrued interest and other	—			(2,515		)	—			(2,515		)
Inventories	(50,886		)	—			—			(50,886		)
Accounts payable and accrued liabilities	16,074			21,629			(18,575		)	19,128
Restructuring reserves	2,181			—			—			2,181
Derivative instruments	703			—			—			703
Prepaid and other	(17,187		)	13,798			—			(3,389		)
Total adjustments	171,524			202,396			(71,854		)	302,066
Net cash provided by operating activities	967,054			371,477			(191,854		)	1,146,677
Cash flows from investing activities:
Capital expenditures	(224,262		)	(8,057		)	—			(232,319		)
Origination of finance receivables	—			(7,693,884		)	4,125,461			(3,568,423		)
Collections of finance receivables	—			7,066,852			(4,053,607		)	3,013,245
Sales and redemptions of marketable securities	41,010			—			—			41,010
Other	1,837			—			—			1,837
Net cash used by investing activities	(181,415		)	(635,089		)	71,854			(744,650		)



	Year Ended December 31, 2014
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			991,835			—		991,835
Repayments of medium-term notes	—			(526,431		)	—		(526,431		)
Repayment of senior unsecured notes	(303,000		)	—			—		(303,000		)
Intercompany borrowing activity	200,000			(200,000		)	—		—
Proceeds from securitization debt	—			847,126			—		847,126
Repayments of securitization debt	—			(834,856		)	—		(834,856		)
Borrowings of asset-backed commercial paper	—			84,907			—		84,907
Repayments of asset-backed commercial paper	—			(77,800		)	—		(77,800		)
Net increase in credit facilities and unsecured commercial paper	—			63,945			—		63,945
Net change in restricted cash	—			22,755			—		22,755
Dividends	(238,300		)	(120,000		)	120,000		(238,300		)
Purchase of common stock for treasury	(615,602		)	—			—		(615,602		)
Excess tax benefits from share-based payments	11,540			—			—		11,540
Issuance of common stock under employee stock option plans	37,785			—			—		37,785
Net cash (used by) provided by financing activities	(907,577		)	251,481			120,000		(536,096		)
Effect of exchange rate changes on cash and cash equivalents	(23,079		)	(2,784		)	—		(25,863		)
Net decrease in cash and cash equivalents	$	(145,017	)	$	(14,915	)	$	—	$	(159,932	)

Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	718,912		$	347,700		$	—	$	1,066,612
Net decrease in cash and cash equivalents	(145,017		)	(14,915		)	—		(159,932		)
Cash and cash equivalents—end of period	$	573,895		$	332,785		$	—	$	906,680



	Year Ended December 31, 2013
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	745,077		$	173,916		$	(185,000	)	$	733,993
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	160,181			6,891			—			167,072
Amortization of deferred loan origination costs	—			86,181			—			86,181
Amortization of financing origination fees	473			8,903			—			9,376
Provision for employee long-term benefits	66,877			—			—			66,877
Contributions to pension and postretirement plans	(204,796		)	—			—			(204,796		)
Stock compensation expense	38,367			2,877			—			41,244
Net change in wholesale finance receivables	—			—			28,865			28,865
Provision for credit losses	—			60,008			—			60,008
Loss on debt extinguishment	—			4,947			—			4,947
Deferred income taxes	54,568			(1,988		)	—			52,580
Foreign currency adjustments	16,269			—			—			16,269
Other, net	10,942			(819		)	—			10,123
Change in current assets and current liabilities:
Accounts receivable	(24,273		)	—			(12,380		)	(36,653		)
Finance receivables – accrued interest and other	—			(346		)	—			(346		)
Inventories	(46,474		)	—			—			(46,474		)
Accounts payable and accrued liabilities	(60,907		)	(5,096		)	12,380			(53,623		)
Restructuring reserves	(25,042		)	—			—			(25,042		)
Derivative instruments	(2,161		)	(28		)	—			(2,189		)
Prepaid and other	70,900			(2,219		)	—			68,681
Total adjustments	54,924			159,311			28,865			243,100
Net cash provided by operating activities	800,001			333,227			(156,135		)	977,093
Cash flows from investing activities:
Capital expenditures	(199,354		)	(8,967		)	—			(208,321		)
Origination of finance receivables	—			(7,140,533		)	3,896,528			(3,244,005		)
Collections of finance receivables	—			6,757,387			(3,925,393		)	2,831,994
Purchases of marketable securities	(4,998		)	—			—			(4,998		)
Sales and redemptions of marketable securities	40,108			—			—			40,108
Other	16,355			—			—			16,355
Net cash used by investing activities	(147,889		)	(392,113		)	(28,865		)	(568,867		)



	Year Ended December 31, 2013
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments		Consolidated
Cash flows from financing activities:
Repayments of medium-term notes	—			(27,858		)	—		(27,858		)
Intercompany borrowing activity	(50,000		)	50,000			—		—
Proceeds from securitization debt	—			647,516			—		647,516
Repayments of securitization debt	—			(840,387		)	—		(840,387		)
Borrowings of asset-backed commercial paper	—			88,456			—		88,456
Net increase in credit facilities and unsecured commercial paper	—			371,085			—		371,085
Repayments of asset-backed commercial paper	—			(78,765		)	—		(78,765		)
Net change in restricted cash	—			43,201			—		43,201
Dividends paid	(187,688		)	(185,000		)	185,000		(187,688		)
Purchase of common stock for treasury, net of issuances	(479,231		)	—			—		(479,231		)
Excess tax benefits from share based payments	19,895			—			—		19,895
Issuance of common stock under employee stock option plans	50,567			—			—		50,567
Net cash (used by) provided by financing activities	(646,457		)	68,248			185,000		(393,209		)
Effect of exchange rate changes on cash and cash equivalents	(14,459		)	(2,084		)	—		(16,543		)
Net (decrease) increase in cash and cash equivalents	$	(8,804	)	$	7,278		$	—	$	(1,526	)
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	(8,804		)	7,278			—		(1,526		)
Cash and cash equivalents – end of period	$	718,912		$	347,700		$	—	$	1,066,612



	Year Ended December 31, 2012
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	677,048		$	171,877		$	(225,000	)	$	623,925
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	162,659			6,319			—			168,978
Amortization of deferred loan origination costs	—			78,592			—			78,592
Amortization of financing origination fees	473			9,496			—			9,969
Provision for employee long-term benefits	67,612			3,735			—			71,347
Contributions to pension and postretirement plans	(244,416		)	—			—			(244,416		)
Stock compensation expense	37,544			3,271			—			40,815
Net change in wholesale finance receivables	—			—			2,513			2,513
Provision for credit losses	—			22,239			—			22,239
Loss on debt extinguishment	—			4,323			—			4,323
Pension and postretirement healthcare plan curtailment and settlement expense	6,242			—			—			6,242
Deferred income taxes	117,772			10,680			—			128,452
Foreign currency adjustments	9,773			—			—			9,773
Other, net	(2,290		)	(4,926		)	—			(7,216		)



	Year Ended December 31, 2012
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Change in current assets and current liabilities:
Accounts receivable	9,323			—			(23,013		)	(13,690		)
Finance receivables – accrued interest and other	—			(4		)	—			(4		)
Inventories	21,459			—			—			21,459
Accounts payable and accrued liabilities	(6,368		)	(27,443		)	23,013			(10,798		)
Restructuring reserves	(16,087		)	—			—			(16,087		)
Derivative instruments	2,906			(148		)	—			2,758
Prepaid and other	(95,162		)	(2,554		)	—			(97,716		)
Total adjustments	71,440			103,580			2,513			177,533
Net cash provided by operating activities	748,488			275,457			(222,487		)	801,458
Cash flows from investing activities:
Capital expenditures	(180,416		)	(8,586		)	—			(189,002		)
Origination of finance receivables	—			(6,544,828		)	3,686,127			(2,858,701		)
Collections of finance receivables	—			6,456,729			(3,688,640		)	2,768,089
Purchases of marketable securities	(4,993		)	—			—			(4,993		)
Sales and redemptions of marketable securities	23,296			—			—			23,296
Net cash used by investing activities	(162,113		)	(96,685		)	(2,513		)	(261,311		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			993,737			—			993,737
Repayment of medium-term notes	—			(420,870		)	—			(420,870		)
Intercompany borrowing activity	(400,000		)	400,000			—			—
Proceeds from securitization debt	—			763,895			—			763,895
Repayments of securitization debt	—			(1,405,599		)	—			(1,405,599		)
Borrowings of asset-backed commercial paper	—			200,417			—			200,417
Net decrease in credit facilities and unsecured commercial paper	—			(744,724		)	—			(744,724		)
Repayments of asset-backed commercial paper	—			(24,301		)	—			(24,301		)
Net change in restricted cash	—			41,647			—			41,647
Dividends paid	(141,681		)	(225,000		)	225,000			(141,681		)
Purchase of common stock for treasury, net of issuances	(311,632		)	—			—			(311,632		)
Excess tax benefits from share based payments	13,065			—			—			13,065
Issuance of common stock under employee stock option plans	45,973			—			—			45,973
Net cash used by financing activities	(794,275		)	(420,798		)	225,000			(990,073		)
Effect of exchange rate changes on cash and cash equivalents	(7,714		)	(1,172		)	—			(8,886		)
Net decrease in cash and cash equivalents	$	(215,614	)	$	(243,198	)	$	—		$	(458,812	)
Cash and cash equivalents:
Cash and cash equivalents – beginning of period	$	943,330		$	583,620		$	—		$	1,526,950
Net decrease in cash and cash equivalents	(215,614		)	(243,198		)	—			(458,812		)
Cash and cash equivalents – end of period	$	727,716		$	340,422		$	—		$	1,068,138