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 June 28, 2015
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,653,759	$	—	$	(2,976	)	$	1,650,783
Financial Services	—		174,147		(538		)	173,609
Total revenue	1,653,759		174,147		(3,514		)	1,824,392
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,003,569		—		—			1,003,569
Financial Services interest expense	—		41,188		—			41,188
Financial Services provision for credit losses	—		15,175		—			15,175
Selling, administrative and engineering expense	267,149		38,309		(3,514		)	301,944
Total costs and expenses	1,270,718		94,672		(3,514		)	1,361,876
Operating income	383,041		79,475		—			462,516
Investment income	1,450		—		—			1,450
Interest expense	9		—		—			9
Income before provision for income taxes	384,482		79,475		—			463,957
Provision for income taxes	134,633		29,514		—			164,147
Net income	$	249,849	$	49,961	$	—		$	299,810
	Six months ended June 28, 2015
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	3,166,641	$	—	$	(5,288	)	$	3,161,353
Financial Services	—		336,837		(853		)	335,984
Total revenue	3,166,641		336,837		(6,141		)	3,497,337
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,923,864		—		—			1,923,864
Financial Services interest expense	—		79,724		—			79,724
Financial Services provision for credit losses	—		41,422		—			41,422
Selling, administrative and engineering expense	512,284		73,550		(6,141		)	579,693
Total costs and expenses	2,436,148		194,696		(6,141		)	2,624,703
Operating income	730,493		142,141		—			872,634
Investment income	102,772		—		(100,000		)	2,772
Interest expense	18		—		—			18
Income before provision for income taxes	833,247		142,141		(100,000		)	875,388
Provision for income taxes	256,149		49,575		—			305,724
Net income	$	577,098	$	92,566	$	(100,000	)	$	569,664



	Three months ended June 29, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,836,974	$	—	$	(2,689	)	$	1,834,285
Financial Services	—		166,963		(549		)	166,414
Total revenue	1,836,974		166,963		(3,238		)	2,000,699
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,110,146		—		—			1,110,146
Financial Services interest expense	—		40,741		—			40,741
Financial Services provision for credit losses	—		15,961		—			15,961
Selling, administrative and engineering expense	251,432		37,962		(3,238		)	286,156
Total costs and expenses	1,361,578		94,664		(3,238		)	1,453,004
Operating income	475,396		72,299		—			547,695
Investment income	1,772		—		—			1,772
Interest expense	393		—		—			393
Income before provision for income taxes	476,775		72,299		—			549,074
Provision for income taxes	168,303		26,618		—			194,921
Net income	$	308,472	$	45,681	$	—		$	354,153
	Six months ended June 29, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	3,410,941	$	—	$	(4,968	)	$	3,405,973
Financial Services	—		321,649		(875		)	320,774
Total revenue	3,410,941		321,649		(5,843		)	3,726,747
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,089,703		—		—			2,089,703
Financial Services interest expense	—		79,598		—			79,598
Financial Services provision for credit losses	—		36,292		—			36,292
Selling, administrative and engineering expense	496,197		72,223		(5,843		)	562,577
Total costs and expenses	2,585,900		188,113		(5,843		)	2,768,170
Operating income	825,041		133,536		—			958,577
Investment income	123,431		—		(120,000		)	3,431
Interest expense	4,070		—		—			4,070
Income before provision for income taxes	944,402		133,536		(120,000		)	957,938
Provision for income taxes	288,876		48,992		—			337,868
Net income	$	655,526	$	84,544	$	(120,000	)	$	620,070



	June 28, 2015
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	828,289	$	419,290	$	—		$	1,247,579
Marketable securities	52,516		—		—			52,516
Accounts receivable, net	743,341		—		(465,772		)	277,569
Finance receivables, net	—		2,331,723		—			2,331,723
Inventories	395,044		—		—			395,044
Restricted cash	—		136,760		—			136,760
Deferred income taxes	51,667		43,111		—			94,778
Other current assets	126,856		40,441		(6,876		)	160,421
Total current assets	2,197,713		2,971,325		(472,648		)	4,696,390
Finance receivables, net	—		4,816,772		—			4,816,772
Property, plant and equipment, net	841,361		31,646		—			873,007
Goodwill	26,105		—		—			26,105
Deferred income taxes	57,587		10,861		(1,693		)	66,755
Other long-term assets	121,264		43,842		(79,263		)	85,843
	$	3,244,030	$	7,874,446	$	(553,604	)	$	10,564,872
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	306,335	$	567,073	$	(465,772	)	$	407,636
Accrued liabilities	369,467		87,839		(8,569		)	448,737
Short-term debt	—		114,983		—			114,983
Current portion of long-term debt	—		1,551,368		—			1,551,368
Total current liabilities	675,802		2,321,263		(474,341		)	2,522,724
Long-term debt	—		4,560,349		—			4,560,349
Pension liability	66,786		—		—			66,786
Postretirement healthcare benefits	196,369		—		—			196,369
Other long-term liabilities	168,043		26,974		—			195,017
Shareholders’ equity	2,137,030		965,860		(79,263		)	3,023,627
	$	3,244,030	$	7,874,446	$	(553,604	)	$	10,564,872



	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 benefits	203,006		—		—			203,006
Other long-term liabilities	164,060		24,745		—			188,805
Shareholders’ equity	2,011,378		975,852		(77,944		)	2,909,286
	$	2,996,380	$	7,025,907	$	(494,190	)	$	9,528,097



	June 29, 2014
	Motorcycles & Related Products Operations		Financial Services Operations		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	635,705	$	363,641	$	—		$	999,346
Marketable securities	57,814		—		—			57,814
Accounts receivable, net	1,317,297		—		(1,027,357		)	289,940
Finance receivables, net	—		2,281,512		—			2,281,512
Inventories	371,597		—		—			371,597
Restricted cash	—		154,681		—			154,681
Deferred income taxes	52,348		38,000		—			90,348
Other current assets	95,429		33,031		—			128,460
Total current assets	2,530,190		2,870,865		(1,027,357		)	4,373,698
Finance receivables, net	—		4,537,405		—			4,537,405
Property, plant and equipment, net	792,642		33,825		—			826,467
Prepaid pension costs	256,279		—		—			256,279
Goodwill	30,252		—		—			30,252
Deferred income taxes	2,915		—		—			2,915
Other long-term assets	111,229		14,506		(76,455		)	49,280
	$	3,723,507	$	7,456,601	$	(1,103,812	)	$	10,076,296
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	316,707	$	1,098,992	$	(1,027,357	)	$	388,342
Accrued liabilities	423,312		79,205		(1,748		)	500,769
Short-term debt	—		619,622		—			619,622
Current portion of long-term debt	—		944,915		—			944,915
Total current liabilities	740,019		2,742,734		(1,029,105		)	2,453,648
Long-term debt	—		3,794,396		—			3,794,396
Pension liability	38,174		—		—			38,174
Postretirement healthcare liability	209,312		—		—			209,312
Deferred income taxes	35,597		1,574		1,748			38,919
Other long-term liabilities	152,862		22,725		—			175,587
Shareholders’ equity	2,547,543		895,172		(76,455		)	3,366,260
	$	3,723,507	$	7,456,601	$	(1,103,812	)	$	10,076,296



	Six months ended June 28, 2015
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	577,098		$	92,566		$	(100,000	)	$	569,664
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	88,996			4,644			—			93,640
Amortization of deferred loan origination costs	—			47,524			—			47,524
Amortization of financing origination fees	—			4,820			—			4,820
Provision for employee long-term benefits	24,635			—			—			24,635
Contributions to pension and postretirement plans	(12,725		)	—			—			(12,725		)
Stock compensation expense	15,415			1,319			—			16,734
Net change in wholesale finance receivables related to sales	—			—			(418,969		)	(418,969		)
Provision for credit losses	—			41,422			—			41,422
Deferred income taxes	5,832			(7,027		)	—			(1,195		)
Foreign currency adjustments	11,041			—			—			11,041
Other, net	(2,671		)	707			—			(1,964		)
Change in current assets and current liabilities:
Accounts receivable	(347,967		)	—			304,658			(43,309		)
Finance receivables—accrued interest and other	—			(270		)	—			(270		)
Inventories	38,012			—			—			38,012
Accounts payable and accrued liabilities	144,784			385,999			(298,426		)	232,357
Derivative instruments	1,185			—			—			1,185
Other	9,625			1,717			—			11,342
Total adjustments	(23,838		)	480,855			(412,737		)	44,280
Net cash provided by operating activities	553,260			573,421			(512,737		)	613,944



	Six months ended June 28, 2015
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(83,282		)	(1,898		)	—			(85,180		)
Origination of finance receivables	—			(4,526,313		)	2,549,750			(1,976,563		)
Collections of finance receivables	—			3,707,444			(2,137,013		)	1,570,431
Sales and redemptions of marketable securities	4,500			—			—			4,500
Other	5,111			—			—			5,111
Net cash used by investing activities	(73,671		)	(820,767		)	412,737			(481,701		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			595,386			—			595,386
Intercompany borrowing activity	250,000			(250,000		)	—			—
Proceeds from securitization debt	—			1,195,668			—			1,195,668
Repayments of securitization debt	—			(454,332		)	—			(454,332		)
Net decrease in credit facilities and unsecured commercial paper	—			(616,586		)	—			(616,586		)
Borrowings of asset-backed commercial paper	—			40,209			—			40,209
Repayments of asset-backed commercial paper	—			(35,730		)	—			(35,730		)
Net change in restricted cash	—			(40,159		)	—			(40,159		)
Dividends paid	(129,745		)	(100,000		)	100,000			(129,745		)
Purchase of common stock for treasury	(358,425		)	—			—			(358,425		)
Excess tax benefits from share-based payments	2,401			—			—			2,401
Issuance of common stock under employee stock option plans	15,664			—			—			15,664
Net cash (used by) provided by financing activities	(220,105		)	334,456			100,000			214,351
Effect of exchange rate changes on cash and cash equivalents	(5,090		)	(605		)	—			(5,695		)
Net increase in cash and cash equivalents	$	254,394		$	86,505		$	—		$	340,899
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	573,895		$	332,785		$	—		$	906,680
Net increase in cash and cash equivalents	254,394			86,505			—			340,899
Cash and cash equivalents—end of period	$	828,289		$	419,290		$	—		$	1,247,579



	Six months ended June 29, 2014
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	655,526		$	84,544		$	(120,000	)	$	620,070
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	83,348			3,775			—			87,123
Amortization of deferred loan origination costs	—			45,713						45,713
Amortization of financing origination fees	59			4,225			—			4,284
Provision for employee long-term benefits	16,854			—			—			16,854
Contributions to pension and postretirement plans	(14,035		)	—			—			(14,035		)
Stock compensation expense	19,393			1,375			—			20,768
Net change in wholesale finance receivables related to sales	—			—			(510,200		)	(510,200		)
Provision for credit losses	—			36,292			—			36,292
Loss on extinguishment of debt	—			1,145			—			1,145
Deferred income taxes	(3,894		)	—			—			(3,894		)
Foreign currency adjustments	939			(6,023		)	—			(5,084		)
Other, net	4,712			4,620			—			9,332
Change in current assets and current liabilities:
Accounts receivable	(363,817		)	—			338,174			(25,643		)
Finance receivables—accrued interest and other	—			(993		)	—			(993		)
Inventories	58,741			—			—			58,741
Accounts payable and accrued liabilities	189,117			375,290			(338,174		)	226,233
Derivative instruments	968			—			—			968
Other	4,962			(2,044		)	—			2,918
Total adjustments	(2,653		)	463,375			(510,200		)	(49,478		)
Net cash provided by operating activities	652,873			547,919			(630,200		)	570,592



	Six months ended June 29, 2014
	Motorcycles & Related Products Operations			Financial Services Operations			Eliminations & Adjustments			Consolidated
Cash flows from investing activities:
Capital expenditures	(71,395		)	(3,128		)	—			(74,523		)
Origination of finance receivables	—			(4,580,910		)	2,676,333			(1,904,577		)
Collections of finance receivables	—			3,684,319			(2,166,133		)	1,518,186
Sales and redemptions of marketable securities	41,010			—			—			41,010
Other	145			—			—			145
Net cash used by investing activities	(30,240		)	(899,719		)	510,200			(419,759		)
Cash flows from financing activities:
Repayments of senior unsecured notes	(303,000		)	—			—			(303,000		)
Repayments of medium-term notes	—			(7,220		)	—			(7,220		)
Intercompany borrowing activity	(100,000		)	100,000			—			—
Proceeds from securitization debt	—			847,126			—			847,126
Repayments of securitization debt	—			(393,655		)	—			(393,655		)
Net decrease in credit facilities and unsecured commercial paper	—			(48,134		)	—			(48,134		)
Borrowings of asset-backed commercial paper	—			36,800			—			36,800
Repayments of asset-backed commercial paper	—			(37,317		)	—			(37,317		)
Net change in restricted cash	—			(9,874		)	—			(9,874		)
Dividends paid	(120,631		)	(120,000		)	120,000			(120,631		)
Purchase of common stock for treasury	(223,736		)	—			—			(223,736		)
Excess tax benefits from share-based payments	8,652			—			—			8,652
Issuance of common stock under employee stock option plans	27,907			—			—			27,907
Net cash (used by) provided by financing activities	(710,808		)	367,726			120,000			(223,082		)
Effect of exchange rate changes on cash and cash equivalents	4,968			15			—			4,983
Net (decrease) increase in cash and cash equivalents	$	(83,207	)	$	15,941		$	—		$	(67,266	)
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	(83,207		)	15,941			—			(67,266		)
Cash and cash equivalents—end of period	$	635,705		$	363,641		$	—		$	999,346