Supplemental Consolidating Data (Tables)

3 Months Ended

Mar. 26, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Three months ended March 26, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,330,618	$	—	$	(1,907	)	$	1,328,711
Financial Services	—		173,557		(336		)	173,221
Total revenue	1,330,618		173,557		(2,243		)	1,501,932
Costs and expenses:
Motorcycles and Related Products cost of goods sold	851,226		—		—			851,226
Financial Services interest expense	—		43,289		—			43,289
Financial Services provision for credit losses	—		43,589		—			43,589
Selling, administrative and engineering expense	238,996		35,614		(2,260		)	272,350
Total costs and expenses	1,090,222		122,492		(2,260		)	1,210,454
Operating income	240,396		51,065		17			291,478
Investment income	106,879		—		(106,000		)	879
Interest expense	7,673		—		—			7,673
Income before provision for income taxes	339,602		51,065		(105,983		)	284,684
Provision for income taxes	79,157		19,158		—			98,315
Net income	$	260,445	$	31,907	$	(105,983	)	$	186,369

	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

Balance Sheet

	March 26, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	479,439	$	360,261	$	—		$	839,700
Marketable securities	5,004		—		—			5,004
Accounts receivable, net	740,231		—		(404,653		)	335,578
Finance receivables, net	—		2,354,095		—			2,354,095
Inventories	485,476		—		—			485,476
Restricted cash	—		75,705		—			75,705
Other current assets	102,298		40,064		—			142,362
Total current assets	1,812,448		2,830,125		(404,653		)	4,237,920
Finance receivables, net	—		4,792,027		—			4,792,027
Property, plant and equipment, net	913,462		39,582		—			953,044
Goodwill	53,967		—		—			53,967
Deferred income taxes	98,291		68,306		(1,401		)	165,196
Other long-term assets	137,712		25,790		(83,801		)	79,701
	$	3,015,880	$	7,755,830	$	(489,855	)	$	10,281,855
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	333,227	$	430,110	$	(404,653	)	$	358,684
Accrued liabilities	442,181		105,060		396			547,637
Short-term debt	—		953,357		—			953,357
Current portion of long-term debt, net	—		697,061		—			697,061
Total current liabilities	775,408		2,185,588		(404,257		)	2,556,739
Long-term debt, net	741,469		4,579,328		—			5,320,797
Pension liability	52,559		—		—			52,559
Postretirement healthcare liability	171,143		—		—			171,143
Other long-term liabilities	152,974		31,506		2,728			187,208
Commitments and contingencies (Note 15)
Shareholders’ equity	1,122,327		959,408		(88,326		)	1,993,409
	$	3,015,880	$	7,755,830	$	(489,855	)	$	10,281,855

	December 31, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	425,540	$	334,444	$	—		$	759,984
Marketable securities	5,019		500		—			5,519
Accounts receivable, net	450,186		—		(165,080		)	285,106
Finance receivables, net	—		2,076,261		—			2,076,261
Inventories	499,917		—		—			499,917
Restricted cash	—		52,574		—			52,574
Other current assets	127,606		46,934		(49		)	174,491
Total current assets	1,508,268		2,510,713		(165,129		)	3,853,852
Finance receivables, net	—		4,759,197		—			4,759,197
Property, plant and equipment, net	942,634		38,959		—			981,593
Goodwill	53,391		—		—			53,391
Deferred income taxes	103,487		66,152		(1,910		)	167,729
Other long-term assets	132,835		24,769		(83,126		)	74,478
	$	2,740,615	$	7,399,790	$	(250,165	)	$	9,890,240
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	219,353	$	181,045	$	(165,080	)	$	235,318
Accrued liabilities	395,907		90,910		(165		)	486,652
Short-term debt	—		1,055,708		—			1,055,708
Current portion of long-term debt, net	—		1,084,884		—			1,084,884
Total current liabilities	615,260		2,412,547		(165,245		)	2,862,562
Long-term debt, net	741,306		3,925,669		—			4,666,975
Pension liability	84,442		—		—			84,442
Postretirement healthcare liability	173,267		—		—			173,267
Other long-term liabilities	150,391		29,697		2,748			182,836
Commitments and contingencies (Note 15)
Shareholders’ equity	975,949		1,031,877		(87,668		)	1,920,158
	$	2,740,615	$	7,399,790	$	(250,165	)	$	9,890,240

	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 liability	191,704		—		—			191,704
Other long-term liabilities	170,318		27,071		2,520			199,909
Commitments and contingencies (Note 15)
Shareholders’ equity	1,034,078		944,409		(85,667		)	1,892,820
	$	3,070,390	$	7,979,457	$	(582,176	)	$	10,467,671

Cash Flows

	Three months ended March 26, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	260,445		$	31,907		$	(105,983	)	$	186,369
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	53,241			1,659			—			54,900
Amortization of deferred loan origination costs	—			20,078			—			20,078
Amortization of financing origination fees	163			1,913			—			2,076
Provision for long-term employee benefits	7,475			—			—			7,475
Employee benefit plan contributions and payments	(29,957		)	—			—			(29,957		)
Stock compensation expense	6,317			675			—			6,992
Net change in wholesale finance receivables related to sales	—			—			(317,087		)	(317,087		)
Provision for credit losses	—			43,589			—			43,589
Deferred income taxes	6,728			(2,230		)	(509		)	3,989
Other, net	(6,728		)	1,411			(17		)	(5,334		)
Changes in current assets and liabilities:
Accounts receivable, net	(278,803		)	—			239,573			(39,230		)
Finance receivables - accrued interest and other	—			5,142			—			5,142
Inventories	23,476			—			—			23,476
Accounts payable and accrued liabilities	154,372			263,011			(234,455		)	182,928
Derivative instruments	3,120			—			—			3,120
Other	5,537			5,925			(49		)	11,413
Total adjustments	(55,059		)	341,173			(312,544		)	(26,430		)
Net cash provided by operating activities	205,386			373,080			(418,527		)	159,939

	Three months ended March 26, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(21,686		)	(2,281		)	—			(23,967		)
Origination of finance receivables	—			(1,932,599		)	1,087,907			(844,692		)
Collections on finance receivables	—			1,556,534			(775,380		)	781,154
Other	52			—			—			52
Net cash used by investing activities	(21,634		)	(378,346		)	312,527			(87,453		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			497,406			—			497,406
Repayments of medium-term notes	—			(400,000		)	—			(400,000		)
Repayments of securitization debt	—			(111,359		)	—			(111,359		)
Borrowings of asset-backed commercial paper	—			305,209			—			305,209
Repayments of asset-backed commercial paper	—			(29,383		)	—			(29,383		)
Net decrease in credit facilities and unsecured commercial paper	—			(101,702		)	—			(101,702		)
Net change in restricted cash	—			(23,132		)	—			(23,132		)
Dividends paid	(64,611		)	(106,000		)	106,000			(64,611		)
Purchase of common stock for treasury	(79,753		)	—			—			(79,753		)
Issuance of common stock under employee stock option plans	7,336			—			—			7,336
Net cash (used by) provided by financing activities	(137,028		)	31,039			106,000			11
Effect of exchange rate changes on cash and cash equivalents	7,175			44			—			7,219
Net increase in cash and cash equivalents	$	53,899		$	25,817		$	—		$	79,716
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	425,540		$	334,444		$	—		$	759,984
Net increase in cash and cash equivalents	53,899			25,817			—			79,716
Cash and cash equivalents—end of period	$	479,439		$	360,261		$	—		$	839,700

	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 net cash provided by operating activities:
Depreciation and amortization of intangibles	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 long-term employee benefits	9,503			—			—			9,503
Employee benefit plan contributions and 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
Deferred income taxes	6,034			(1,850		)	(548		)	3,636
Other, net	(7,576		)	519			(245		)	(7,302		)
Changes in current assets and liabilities:
Accounts receivable, net	(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
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 on 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		)
Borrowings of asset-backed commercial paper	—			5,814			—			5,814
Repayments of asset-backed commercial paper	—			(15,740		)	—			(15,740		)
Net decrease in credit facilities and unsecured commercial paper	—			(331,090		)	—			(331,090		)
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