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 September 25, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,094,148	$	—	$	(2,518	)	$	1,091,630
Financial Services	—		183,706		(523		)	183,183
Total revenue	1,094,148		183,706		(3,041		)	1,274,813
Costs and expenses:
Motorcycles and Related Products cost of goods sold	724,611		—		—			724,611
Financial Services interest expense	—		42,573		—			42,573
Financial Services provision for credit losses	—		36,543		—			36,543
Selling, administrative and engineering expense	258,541		37,139		(2,970		)	292,710
Total costs and expenses	983,152		116,255		(2,970		)	1,096,437
Operating income	110,996		67,451		(71		)	178,376
Investment income	2,300		—		—			2,300
Interest expense	7,706		—		—			7,706
Income before provision for income taxes	105,590		67,451		(71		)	172,970
Provision for income taxes	33,895		25,010		—			58,905
Net income	$	71,695	$	42,441	$	(71	)	$	114,065
	Nine months ended September 25, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	4,346,166	$	—	$	(7,813	)	$	4,338,353
Financial Services	—		549,162		(1,657		)	547,505
Total revenue	4,346,166		549,162		(9,470		)	4,885,858
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,773,496		—		—			2,773,496
Financial Services interest expense	—		131,387		—			131,387
Financial Services provision for credit losses	—		97,127		—			97,127
Selling, administrative and engineering expense	802,139		111,414		(9,231		)	904,322
Total costs and expenses	3,575,635		339,928		(9,231		)	3,906,332
Operating income	770,531		209,234		(239		)	979,526
Investment income	186,754		—		(183,000		)	3,754
Interest expense	21,968		—		—			21,968
Income before provision for income taxes	935,317		209,234		(183,239		)	961,312
Provision for income taxes	238,256		78,071		—			316,327
Net income	$	697,061	$	131,163	$	(183,239	)	$	644,985



	Three months ended September 27, 2015
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,142,948	$	—	$	(2,627	)	$	1,140,321
Financial Services	—		177,487		(378		)	177,109
Total revenue	1,142,948		177,487		(3,005		)	1,317,430
Costs and expenses:
Motorcycles and Related Products cost of goods sold	746,282		—		—			746,282
Financial Services interest expense	—		41,214		—			41,214
Financial Services provision for credit losses	—		27,233		—			27,233
Selling, administrative and engineering expense	251,352		38,518		(3,005		)	286,865
Total costs and expenses	997,634		106,965		(3,005		)	1,101,594
Operating income	145,314		70,522		—			215,836
Investment income	3,211		—		—			3,211
Interest expense	4,879		—		—			4,879
Income before provision for income taxes	143,646		70,522		—			214,168
Provision for income taxes	47,703		26,118		—			73,821
Net income	$	95,943	$	44,404	$	—		$	140,347
	Nine months ended September 27, 2015
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	4,309,589	$	—	$	(7,915	)	$	4,301,674
Financial Services	—		514,324		(1,231		)	513,093
Total revenue	4,309,589		514,324		(9,146		)	4,814,767
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,670,146		—		—			2,670,146
Financial Services interest expense	—		120,938		—			120,938
Financial Services provision for credit losses	—		68,655		—			68,655
Selling, administrative and engineering expense	763,637		112,067		(9,146		)	866,558
Total costs and expenses	3,433,783		301,660		(9,146		)	3,726,297
Operating income	875,806		212,664		—			1,088,470
Investment income	105,983		—		(100,000		)	5,983
Interest expense	4,897		—		—			4,897
Income before provision for income taxes	976,892		212,664		(100,000		)	1,089,556
Provision for income taxes	303,852		75,693		—			379,545
Net income	$	673,040	$	136,971	$	(100,000	)	$	710,011



	September 25, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	438,875	$	351,409	$	—		$	790,284
Marketable securities	5,038		—		—			5,038
Accounts receivable, net	751,770		—		(405,594		)	346,176
Finance receivables, net	—		2,205,644		—			2,205,644
Inventories	426,547		—		—			426,547
Restricted cash	—		65,088		—			65,088
Deferred income taxes	61,611		61,998		—			123,609
Other current assets	110,060		41,305		(11,407		)	139,958
Total current assets	1,793,901		2,725,444		(417,001		)	4,102,344
Finance receivables, net	—		4,944,322		—			4,944,322
Property, plant and equipment, net	917,984		36,491		—			954,475
Goodwill	54,663		—		—			54,663
Deferred income taxes	73,639		9,066		(1,874		)	80,831
Other long-term assets	133,441		24,605		(82,455		)	75,591
	$	2,973,628	$	7,739,928	$	(501,330	)	$	10,212,226
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	268,945	$	428,243	$	(405,594	)	$	291,594
Accrued liabilities	419,675		98,268		(11,410		)	506,533
Short-term debt	—		1,055,428		—			1,055,428
Current portion of long-term debt, net	—		700,152		—			700,152
Total current liabilities	688,620		2,282,091		(417,004		)	2,553,707
Long-term debt, net	741,144		4,429,465		—			5,170,609
Pension liability	120,494		—		—			120,494
Postretirement healthcare benefits	182,825		—		—			182,825
Other long-term liabilities	160,784		28,425		3,014			192,223
Shareholders’ equity	1,079,761		999,947		(87,340		)	1,992,368
	$	2,973,628	$	7,739,928	$	(501,330	)	$	10,212,226



	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, net	—		838,349		—			838,349
Total current liabilities	607,187		2,287,735		(147,615		)	2,747,307
Long-term debt, net	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



	September 27, 2015
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	963,360	$	405,194	$	—		$	1,368,554
Marketable securities	47,358		—		—			47,358
Accounts receivable, net	725,828		—		(431,774		)	294,054
Finance receivables, net	—		2,068,873		—			2,068,873
Inventories	466,657		—		—			466,657
Restricted cash	—		113,499		—			113,499
Deferred income taxes	53,218		47,340		—			100,558
Other current assets	121,953		37,893		(9,179		)	150,667
Total current assets	2,378,374		2,672,799		(440,953		)	4,610,220
Finance receivables, net	—		5,009,473		—			5,009,473
Property, plant and equipment, net	845,297		32,490		—			877,787
Goodwill	54,267		—		—			54,267
Deferred income taxes	59,649		14,232		(1,929		)	71,952
Other long-term assets	135,766		32,522		(79,953		)	88,335
	$	3,473,353	$	7,761,516	$	(522,835	)	$	10,712,034
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	290,154	$	458,514	$	(431,774	)	$	316,894
Accrued liabilities	382,292		93,168		(11,108		)	464,352
Short-term debt	—		990,049		—			990,049
Current portion of long-term debt, net	—		885,889		—			885,889
Total current liabilities	672,446		2,427,620		(442,882		)	2,657,184
Long-term debt, net	741,057		4,299,587		—			5,040,644
Pension liability	61,458		—		—			61,458
Postretirement healthcare benefits	193,406		—		—			193,406
Other long-term liabilities	172,038		27,631		—			199,669
Shareholders’ equity	1,632,948		1,006,678		(79,953		)	2,559,673
	$	3,473,353	$	7,761,516	$	(522,835	)	$	10,712,034



	Nine months ended September 25, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	697,061		$	131,163		$	(183,239	)	$	644,985
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization of intangibles	148,851			5,714			—			154,565
Amortization of deferred loan origination costs	—			65,445			—			65,445
Amortization of financing origination fees	491			6,721			—			7,212
Provision for employee long-term benefits	27,608			—			—			27,608
Employee benefit plan contributions and payments	(47,658		)	—			—			(47,658		)
Stock compensation expense	23,056			1,853			—			24,909
Net change in wholesale finance receivables related to sales	—			—			(169,599		)	(169,599		)
Provision for credit losses	—			97,127			—			97,127
Gain on off-balance sheet securitization	—			(9,269		)	—			(9,269		)
Loss on debt extinguishment	—			118			—			118
Pension plan settlement expense	900			—			—			900
Deferred income taxes	(574		)	(10,419		)	(268		)	(11,261		)
Foreign currency adjustments	(11,741		)	—			—			(11,741		)
Other, net	(12,416		)	648			239			(11,529		)
Change in current assets and current liabilities:
Accounts receivable, net	(348,996		)	—			262,200			(86,796		)
Finance receivables—accrued interest and other	—			364			—			364
Inventories	173,975			—			—			173,975
Accounts payable and accrued liabilities	74,269			277,142			(254,221		)	97,190
Derivative instruments	(1,992		)	—			—			(1,992		)
Other	(18,924		)	2,180			—			(16,744		)
Total adjustments	6,849			437,624			(161,649		)	282,824
Net cash provided by operating activities	703,910			568,787			(344,888		)	927,809



	Nine months ended September 25, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(155,967		)	(6,759		)	—			(162,726		)
Origination of finance receivables	—			(6,297,040		)	3,287,561			(3,009,479		)
Collections of finance receivables	—			5,566,139			(3,125,673		)	2,440,466
Proceeds from finance receivables sold	—			312,571			—			312,571
Sales and redemptions of marketable securities	40,014			—			—			40,014
Other	251			—			—			251
Net cash used by investing activities	(115,702		)	(425,089		)	161,888			(378,903		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,193,396			—			1,193,396
Repayments of medium-term notes	—			(451,336		)	—			(451,336		)
Repayments of securitization debt	—			(535,616		)	—			(535,616		)
Net decrease in credit facilities and unsecured commercial paper	—			(146,328		)	—			(146,328		)
Borrowings of asset-backed commercial paper	—			33,428			—			33,428
Repayments of asset-backed commercial paper	—			(55,170		)	—			(55,170		)
Net change in restricted cash	—			30,981			—			30,981
Dividends paid	(190,387		)	(183,000		)	183,000			(190,387		)
Purchase of common stock for treasury	(374,234		)	—			—			(374,234		)
Excess tax benefits from share-based payments	1,291			—			—			1,291
Issuance of common stock under employee stock option plans	6,444			—			—			6,444
Net cash used by financing activities	(556,886		)	(113,645		)	183,000			(487,531		)
Effect of exchange rate changes on cash and cash equivalents	7,110			(410		)	—			6,700
Net increase in cash and cash equivalents	$	38,432		$	29,643		$	—		$	68,075
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	400,443		$	321,766		$	—		$	722,209
Net increase in cash and cash equivalents	38,432			29,643			—			68,075
Cash and cash equivalents—end of period	$	438,875		$	351,409		$	—		$	790,284



	Nine months ended September 27, 2015
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	673,040		$	136,971		$	(100,000	)	$	710,011
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization of intangibles	135,232			6,792			—			142,024
Amortization of deferred loan origination costs	—			71,012			—			71,012
Amortization of financing origination fees	107			7,224			—			7,331
Provision for employee long-term benefits	36,954			—			—			36,954
Employee benefit plan contributions and payments	(19,358		)	—			—			(19,358		)
Stock compensation expense	21,723			2,009			—			23,732
Net change in wholesale finance receivables related to sales	—			—			(157,532		)	(157,532		)
Provision for credit losses	—			68,655			—			68,655
Deferred income taxes	2,951			(12,223		)	—			(9,272		)
Foreign currency adjustments	22,010			—			—			22,010
Other, net	3,778			1,222			—			5,000
Change in current assets and current liabilities:
Accounts receivable, net	(331,347		)	—			270,660			(60,687		)
Finance receivables—accrued interest and other	—			(98		)	—			(98		)
Inventories	(36,109		)	—			—			(36,109		)
Accounts payable and accrued liabilities	141,577			319,734			(250,266		)	211,045
Derivative instruments	(6,734		)	—			—			(6,734		)
Other	11,293			1,680			—			12,973
Total adjustments	(17,923		)	466,007			(137,138		)	310,946
Net cash provided by operating activities	655,117			602,978			(237,138		)	1,020,957



	Nine months ended September 27, 2015
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(134,164		)	(4,890		)	—			(139,054		)
Origination of finance receivables	—			(6,512,799		)	3,399,972			(3,112,827		)
Collections of finance receivables	—			5,656,189			(3,262,834		)	2,393,355
Sales and redemptions of marketable securities	9,500			—			—			9,500
Acquisition of business	(59,910		)	—			—			(59,910		)
Other	5,172			—			—			5,172
Net cash used by investing activities	(179,402		)	(861,500		)	137,138			(903,764		)
Cash flows from financing activities:
Proceeds from issuance of senior unsecured notes	740,949			—			—			740,949
Proceeds from issuance of medium-term notes	—			595,386			—			595,386
Repayments of medium-term notes	—			(600,000		)	—			(600,000		)
Intercompany borrowing activity	250,000			(250,000		)	—			—
Proceeds from securitization debt	—			1,195,668			—			1,195,668
Repayments of securitization debt	—			(764,909		)	—			(764,909		)
Net increase in credit facilities and unsecured commercial paper	—			258,734			—			258,734
Borrowings of asset-backed commercial paper	—			69,191			—			69,191
Repayments of asset-backed commercial paper	—			(55,124		)	—			(55,124		)
Net change in restricted cash	—			(15,165		)	—			(15,165		)
Dividends paid	(191,451		)	(100,000		)	100,000			(191,451		)
Purchase of common stock for treasury	(894,565		)	—			—			(894,565		)
Excess tax benefits from share-based payments	2,878			—			—			2,878
Issuance of common stock under employee stock option plans	16,755			—			—			16,755
Net cash (used by) provided by financing activities	(75,434		)	333,781			100,000			358,347
Effect of exchange rate changes on cash and cash equivalents	(10,816		)	(2,850		)	—			(13,666		)
Net increase in cash and cash equivalents	$	389,465		$	72,409		$	—		$	461,874
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	573,895		$	332,785		$	—		$	906,680
Net increase in cash and cash equivalents	389,465			72,409			—			461,874
Cash and cash equivalents—end of period	$	963,360		$	405,194		$	—		$	1,368,554