Supplemental Consolidating Data (Tables)

6 Months Ended

Jun. 26, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Three months ended June 26, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,673,379	$	—	$	(3,266	)	$	1,670,113
Financial Services	—		191,935		(971		)	190,964
Total revenue	1,673,379		191,935		(4,237		)	1,861,077
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,062,555		—		—			1,062,555
Financial Services interest expense	—		42,895		—			42,895
Financial Services provision for credit losses	—		23,461		—			23,461
Selling, administrative and engineering expense	285,367		38,301		(3,824		)	319,844
Total costs and expenses	1,347,922		104,657		(3,824		)	1,448,755
Operating income	325,457		87,278		(413		)	412,322
Investment income	43,688		—		(43,000		)	688
Interest expense	7,094		—		—			7,094
Income before provision for income taxes	362,051		87,278		(43,413		)	405,916
Provision for income taxes	93,788		31,697		—			125,485
Net income	$	268,263	$	55,581	$	(43,413	)	$	280,431
	Six months ended June 26, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	3,252,018	$	—	$	(5,295	)	$	3,246,723
Financial Services	—		365,456		(1,134		)	364,322
Total revenue	3,252,018		365,456		(6,429		)	3,611,045
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,048,885		—		—			2,048,885
Financial Services interest expense	—		88,814		—			88,814
Financial Services provision for credit losses	—		60,584		—			60,584
Selling, administrative and engineering expense	543,598		74,275		(6,261		)	611,612
Total costs and expenses	2,592,483		223,673		(6,261		)	2,809,895
Operating income	659,535		141,783		(168		)	801,150
Investment income	184,454		—		(183,000		)	1,454
Interest expense	14,262		—		—			14,262
Income before provision for income taxes	829,727		141,783		(183,168		)	788,342
Provision for income taxes	204,361		53,061		—			257,422
Net income	$	625,366	$	88,722	$	(183,168	)	$	530,920

	Three months ended June 28, 2015
	HDMC Entities		HDFS Entities		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
	HDMC Entities		HDFS Entities		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

Balance Sheet

	June 26, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	445,662	$	419,008	$	—		$	864,670
Marketable securities	5,070		—		—			5,070
Accounts receivable, net	816,439		—		(504,483		)	311,956
Finance receivables, net	—		2,457,974		—			2,457,974
Inventories	371,196		—		—			371,196
Restricted cash	—		78,078		—			78,078
Deferred income taxes	60,497		55,717		—			116,214
Other current assets	124,923		38,203		(9,260		)	153,866
Total current assets	1,823,787		3,048,980		(513,743		)	4,359,024
Finance receivables, net	—		4,824,071		—			4,824,071
Property, plant and equipment, net	916,388		34,921		—			951,309
Goodwill	54,542		—		—			54,542
Deferred income taxes	76,194		8,555		(1,702		)	83,047
Other long-term assets	133,540		24,744		(81,837		)	76,447
	$	3,004,451	$	7,941,271	$	(597,282	)	$	10,348,440
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	239,380	$	538,799	$	(504,483	)	$	273,696
Accrued liabilities	397,645		97,150		(8,984		)	485,811
Short-term debt	—		1,020,487		—			1,020,487
Current portion of long-term debt, net	—		732,773		—			732,773
Total current liabilities	637,025		2,389,209		(513,467		)	2,512,767
Long-term debt, net	740,982		4,567,081		—			5,308,063
Pension liability	129,465		—		—			129,465
Postretirement healthcare benefits	188,846		—		—			188,846
Other long-term liabilities	157,835		27,621		2,836			188,292
Shareholders’ equity	1,150,298		957,360		(86,651		)	2,021,007
	$	3,004,451	$	7,941,271	$	(597,282	)	$	10,348,440

	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

	June 28, 2015
	HDMC Entities		HDFS Entities		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		34,029		(6,876		)	154,009
Total current assets	2,197,713		2,964,913		(472,648		)	4,689,978
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		34,576		(79,263		)	76,577
	$	3,244,030	$	7,858,768	$	(553,604	)	$	10,549,194
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	—		1,544,956		—			1,544,956
Total current liabilities	675,802		2,314,851		(474,341		)	2,516,312
Long-term debt	—		4,551,083		—			4,551,083
Pension liability	66,786		—		—			66,786
Postretirement healthcare liability	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	$	7,858,768	$	(553,604	)	$	10,549,194

Cash Flows

	Six months ended June 26, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	625,366		$	88,722		$	(183,168	)	$	530,920
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization of intangibles	97,025			3,931			—			100,956
Amortization of deferred loan origination costs	—			43,555			—			43,555
Amortization of financing origination fees	330			4,816			—			5,146
Provision for employee long-term benefits	18,405			—			—			18,405
Employee benefit plan contributions and payments	(35,189		)	—			—			(35,189		)
Stock compensation expense	14,562			1,235			—			15,797
Net change in wholesale finance receivables related to sales	—			—			(442,254		)	(442,254		)
Provision for credit losses	—			60,584			—			60,584
Gain on off-balance sheet securitization	—			(9,269		)	—			(9,269		)
Pension plan settlement expense	600			—			—			600
Deferred income taxes	798			(3,906		)	(440		)	(3,548		)
Foreign currency adjustments	(7,966		)	—			—			(7,966		)
Other, net	(12,539		)	(171		)	168			(12,542		)
Change in current assets and current liabilities:
Accounts receivable, net	(416,198		)	—			361,089			(55,109		)
Finance receivables—accrued interest and other	—			(125		)	—			(125		)
Inventories	225,586			—			—			225,586
Accounts payable and accrued liabilities	23,420			385,992			(355,622		)	53,790
Derivative instruments	(1,474		)	—			—			(1,474		)
Other	(33,237		)	1,664			—			(31,573		)
Total adjustments	(125,877		)	488,306			(437,059		)	(74,630		)
Net cash provided by operating activities	499,489			577,028			(620,227		)	456,290

	Six months ended June 26, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(104,125		)	(3,406		)	—			(107,531		)
Origination of finance receivables	—			(4,507,717		)	2,516,333			(1,991,384		)
Collections of finance receivables	—			3,709,319			(2,079,106		)	1,630,213
Proceeds from finance receivables sold	—			312,571			—			312,571
Sales and redemptions of marketable securities	40,000			—			—			40,000
Other	166			—			—			166
Net cash used by investing activities	(63,959		)	(489,233		)	437,227			(115,965		)
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	—			(385,837		)	—			(385,837		)
Net decrease in credit facilities and unsecured commercial paper	—			(181,259		)	—			(181,259		)
Borrowings of asset-backed commercial paper	—			33,428			—			33,428
Repayments of asset-backed commercial paper	—			(34,989		)	—			(34,989		)
Net change in restricted cash	—			17,992			—			17,992
Dividends paid	(127,800		)	(183,000		)	183,000			(127,800		)
Purchase of common stock for treasury	(269,411		)	—			—			(269,411		)
Excess tax benefits from share-based payments	331			—			—			331
Issuance of common stock under employee stock option plans	2,367			—			—			2,367
Net cash (used by) provided by financing activities	(394,513		)	9,731			183,000			(201,782		)
Effect of exchange rate changes on cash and cash equivalents	4,202			(284		)	—			3,918
Net increase in cash and cash equivalents	$	45,219		$	97,242		$	—		$	142,461
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	400,443		$	321,766		$	—		$	722,209
Net increase in cash and cash equivalents	45,219			97,242			—			142,461
Cash and cash equivalents—end of period	$	445,662		$	419,008		$	—		$	864,670

	Six months ended June 28, 2015
	HDMC Entities			HDFS Entities			Eliminations			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 and amortization of intangibles	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
Employee benefit plan contributions and payments	(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, net	(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
	HDMC Entities			HDFS Entities			Eliminations			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