Supplemental Consolidating Data (Tables)

3 Months Ended

Mar. 27, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Operations

	Three months ended March 27, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,578,639	$	—	$	(2,029	)	$	1,576,610
Financial Services	—		173,521		(163		)	173,358
Total revenue	1,578,639		173,521		(2,192		)	1,749,968
Costs and expenses:
Motorcycles and Related Products cost of goods sold	986,330		—		—			986,330
Financial Services interest expense	—		45,919		—			45,919
Financial Services provision for credit losses	—		37,123		—			37,123
Selling, administrative and engineering expense	258,231		35,974		(2,437		)	291,768
Total costs and expenses	1,244,561		119,016		(2,437		)	1,361,140
Operating income	334,078		54,505		245			388,828
Investment income	140,766		—		(140,000		)	766
Interest expense	7,168		—		—			7,168
Income before provision for income taxes	467,676		54,505		(139,755		)	382,426
Provision for income taxes	110,574		21,363		—			131,937
Net income	$	357,102	$	33,142	$	(139,755	)	$	250,489

	Three months ended March 29, 2015
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,512,882	$	—	$	(2,312	)	$	1,510,570
Financial Services	—		162,690		(315		)	162,375
Total revenue	1,512,882		162,690		(2,627		)	1,672,945
Costs and expenses:
Motorcycles and Related Products cost of goods sold	920,295		—		—			920,295
Financial Services interest expense	—		38,536		—			38,536
Financial Services provision for credit losses	—		26,247		—			26,247
Selling, administrative and engineering expense	245,135		35,241		(2,627		)	277,749
Total costs and expenses	1,165,430		100,024		(2,627		)	1,262,827
Operating income	347,452		62,666		—			410,118
Investment income	101,322		—		(100,000		)	1,322
Interest expense	9		—		—			9
Income before provision for income taxes	448,765		62,666		(100,000		)	411,431
Provision for income taxes	121,516		20,061		—			141,577
Net income	$	327,249	$	42,605	$	(100,000	)	$	269,854

Balance Sheet

	March 27, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	349,302	$	344,711	$	—		$	694,013
Marketable securities	45,122		—		—			45,122
Accounts receivable, net	811,276		—		(499,316		)	311,960
Finance receivables, net	—		2,564,608		—			2,564,608
Inventories	553,750		—		—			553,750
Restricted cash	—		93,192		—			93,192
Deferred income taxes	61,266		54,319		—			115,585
Other current assets	85,260		28,260		—			113,520
Total current assets	1,905,976		3,085,090		(499,316		)	4,491,750
Finance receivables, net	—		4,811,958		—			4,811,958
Property, plant and equipment, net	898,381		34,455		—			932,836
Goodwill	54,585		—		—			54,585
Deferred income taxes	75,999		7,783		(1,594		)	82,188
Other long-term assets	135,449		40,171		(81,266		)	94,354
	$	3,070,390	$	7,979,457	$	(582,176	)	$	10,467,671
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	321,028	$	526,577	$	(499,316	)	$	348,289
Accrued liabilities	477,762		109,455		287			587,504
Short-term debt	—		870,073		—			870,073
Current portion of long-term debt, net	—		782,140		—			782,140
Total current liabilities	798,790		2,288,245		(499,029		)	2,588,006
Long-term debt, net	740,821		4,719,732		—			5,460,553
Pension liability	134,679		—		—			134,679
Postretirement healthcare benefits	191,704		—		—			191,704
Other long-term liabilities	170,318		27,071		2,520			199,909
Shareholders’ equity	1,034,078		944,409		(85,667		)	1,892,820
	$	3,070,390	$	7,979,457	$	(582,176	)	$	10,467,671

	December 31, 2015
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	400,443	$	321,766	$	—		$	722,209
Marketable securities	45,192		—		—			45,192
Accounts receivable, net	390,799		—		(143,394		)	247,405
Finance receivables, net	—		2,053,582		—			2,053,582
Inventories	585,907		—		—			585,907
Restricted cash	—		88,267		—			88,267
Deferred income taxes	56,319		46,450		—			102,769
Other current assets	90,824		43,807		(2,079		)	132,552
Total current assets	1,569,484		2,553,872		(145,473		)	3,977,883
Finance receivables, net	—		4,814,571		—			4,814,571
Property, plant and equipment, net	906,972		35,446		—			942,418
Goodwill	54,182		—		—			54,182
Deferred income taxes	86,075		15,681		(2,142		)	99,614
Other long-term assets	133,753		31,158		(80,602		)	84,309
	$	2,750,466	$	7,450,728	$	(228,217	)	$	9,972,977
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	220,050	$	158,958	$	(143,394	)	$	235,614
Accrued liabilities	387,137		89,048		(4,221		)	471,964
Short-term debt	—		1,201,380		—			1,201,380
Current portion of long-term debt	—		838,349		—			838,349
Total current liabilities	607,187		2,287,735		(147,615		)	2,747,307
Long-term debt	740,653		4,091,816		—			4,832,469
Pension liability	164,888		—		—			164,888
Postretirement healthcare benefits	193,659		—		—			193,659
Other long-term liabilities	166,440		28,560		—			195,000
Shareholders’ equity	877,639		1,042,617		(80,602		)	1,839,654
	$	2,750,466	$	7,450,728	$	(228,217	)	$	9,972,977

	March 29, 2015
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	764,175	$	404,549	$	—		$	1,168,724
Marketable securities	57,219		—		—			57,219
Accounts receivable, net	784,268		—		(503,771		)	280,497
Finance receivables, net	—		2,357,993		—			2,357,993
Inventories	480,941		—		—			480,941
Restricted cash	—		120,428		—			120,428
Deferred income taxes	42,819		40,700		—			83,519
Other current assets	128,579		29,595		—			158,174
Total current assets	2,258,001		2,953,265		(503,771		)	4,707,495
Finance receivables, net	—		4,490,599		—			4,490,599
Property, plant and equipment, net	840,354		33,164		—			873,518
Goodwill	25,632		—		—			25,632
Deferred income taxes	62,826		10,808		(1,458		)	72,176
Other long-term assets	117,760		39,289		(78,609		)	78,440
	$	3,304,573	$	7,527,125	$	(583,838	)	$	10,247,860
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	369,143	$	575,548	$	(503,771	)	$	440,920
Accrued liabilities	398,922		99,563		(1,458		)	497,027
Short-term debt	—		70,329		—			70,329
Current portion of long-term debt	—		1,494,301		—			1,494,301
Total current liabilities	768,065		2,239,741		(505,229		)	2,502,577
Long-term debt	—		4,347,884		—			4,347,884
Pension liability	71,263		—		—			71,263
Postretirement healthcare liability	199,645		—		—			199,645
Other long-term liabilities	164,993		25,658		—			190,651
Shareholders’ equity	2,100,607		913,842		(78,609		)	2,935,840
	$	3,304,573	$	7,527,125	$	(583,838	)	$	10,247,860

Cash Flows

	Three months ended March 27, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	357,102		$	33,142		$	(139,755	)	$	250,489
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	48,056			1,971			—			50,027
Amortization of deferred loan origination costs	—			21,546			—			21,546
Amortization of financing origination fees	168			2,634			—			2,802
Provision for employee long-term benefits	9,203			—			—			9,203
Contributions to pension and postretirement plan payments	(29,641		)	—			—			(29,641		)
Stock compensation expense	6,389			664			—			7,053
Net change in wholesale finance receivables related to sales	—			—			(507,731		)	(507,731		)
Provision for credit losses	—			37,123			—			37,123
Pension and postretirement healthcare plan curtailment and settlement expense	300			—			—			300
Deferred income taxes	6,034			(1,850		)	(548		)	3,636
Foreign currency adjustments	(5,873		)	—			—			(5,873		)
Other, net	(1,703		)	519			(245		)	(1,429		)
Change in current assets and current liabilities:
Accounts receivable	(413,807		)	—			355,922			(57,885		)
Finance receivables—accrued interest and other	—			685			—			685
Inventories	40,539			—			—			40,539
Accounts payable and accrued liabilities	189,425			387,010			(353,635		)	222,800
Derivative instruments	1,196			—			—			1,196
Other	(8,910		)	5,201			—			(3,709		)
Total adjustments	(158,624		)	455,503			(506,237		)	(209,358		)
Net cash provided by operating activities	198,478			488,645			(645,992		)	41,131

	Three months ended March 27, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(38,031		)	(980		)	—			(39,011		)
Origination of finance receivables	—			(2,123,079		)	1,307,382			(815,697		)
Collections of finance receivables	—			1,573,300			(801,390		)	771,910
Other	95			—			—			95
Net cash used by investing activities	(37,936		)	(550,759		)	505,992			(82,703		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,193,396			—			1,193,396
Repayments of medium-term notes	—			(450,000		)	—			(450,000		)
Repayments of securitization debt	—			(173,363		)	—			(173,363		)
Net decrease in credit facilities and unsecured commercial paper	—			(331,090		)	—			(331,090		)
Borrowings of asset-backed commercial paper	—			5,814			—			5,814
Repayments of asset-backed commercial paper	—			(15,740		)	—			(15,740		)
Net change in restricted cash	—			(4,282		)	—			(4,282		)
Dividends paid	(64,457		)	(140,000		)	140,000			(64,457		)
Purchase of common stock for treasury	(150,369		)	—			—			(150,369		)
Excess tax benefits from share-based payments	110			—			—			110
Issuance of common stock under employee stock option plans	276			—			—			276
Net cash (used by) provided by financing activities	(214,440		)	84,735			140,000			10,295
Effect of exchange rate changes on cash and cash equivalents	2,757			324			—			3,081
Net (decrease) increase in cash and cash equivalents	$	(51,141	)	$	22,945		$	—		$	(28,196	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	400,443		$	321,766		$	—		$	722,209
Net (decrease) increase in cash and cash equivalents	(51,141		)	22,945			—			(28,196		)
Cash and cash equivalents—end of period	$	349,302		$	344,711		$	—		$	694,013

	Three months ended March 29, 2015
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	327,249		$	42,605		$	(100,000	)	$	269,854
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	43,947			2,081			—			46,028
Amortization of deferred loan origination costs	—			22,932			—			22,932
Amortization of financing origination fees	—			2,215			—			2,215
Provision for employee long-term benefits	12,318			—			—			12,318
Contributions to pension and postretirement plan payments	(6,627		)	—			—			(6,627		)
Stock compensation expense	7,381			665			—			8,046
Net change in wholesale finance receivables related to sales	—			—			(465,598		)	(465,598		)
Provision for credit losses	—			26,247			—			26,247
Deferred income taxes	6,594			(3,774		)	—			2,820
Foreign currency adjustments	18,154			—			—			18,154
Other, net	(1,893		)	(614		)	—			(2,507		)
Change in current assets and current liabilities:
Accounts receivable	(392,593		)	—			342,657			(49,936		)
Finance receivables—accrued interest and other	—			2,067			—			2,067
Inventories	(51,934		)	—			—			(51,934		)
Accounts payable and accrued liabilities	241,052			406,607			(342,557		)	305,102
Derivative instruments	399			—			—			399
Other	27,082			8,038			—			35,120
Total adjustments	(96,120		)	466,464			(465,498		)	(95,154		)
Net cash provided by operating activities	231,129			509,069			(565,498		)	174,700

	Three months ended March 29, 2015
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(37,240		)	(829		)	—			(38,069		)
Origination of finance receivables	—			(2,008,170		)	1,255,766			(752,404		)
Collections of finance receivables	—			1,519,934			(790,268		)	729,666
Other	9			—			—			9
Net cash used by investing activities	(37,231		)	(489,065		)	465,498			(60,798		)
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	—			697,591			—			697,591
Repayments of securitization debt	—			(200,695		)	—			(200,695		)
Net decrease in credit facilities and unsecured commercial paper	—			(661,241		)	—			(661,241		)
Borrowings of asset-backed commercial paper	—			16,798			—			16,798
Repayments of asset-backed commercial paper	—			(15,744		)	—			(15,744		)
Net change in restricted cash	—			(28,579		)	—			(28,579		)
Dividends paid	(65,467		)	(100,000		)	100,000			(65,467		)
Purchase of common stock for treasury	(192,700		)	—			—			(192,700		)
Excess tax benefits from share-based payments	2,207			—			—			2,207
Issuance of common stock under employee stock option plans	9,605			—			—			9,605
Net cash provided by financing activities	3,645			53,516			100,000			157,161
Effect of exchange rate changes on cash and cash equivalents	(7,263		)	(1,756		)	—			(9,019		)
Net increase in cash and cash equivalents	$	190,280		$	71,764		$	—		$	262,044
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	573,895		$	332,785		$	—		$	906,680
Net increase in cash and cash equivalents	190,280			71,764			—			262,044
Cash and cash equivalents—end of period	$	764,175		$	404,549		$	—		$	1,168,724