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 24, 2017
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	964,942		$	—	$	(2,806	)	$	962,136
Financial Services	—			189,932		(873		)	189,059
Total revenue	964,942			189,932		(3,679		)	1,151,195
Costs and expenses:
Motorcycles and Related Products cost of goods sold	685,161			—		—			685,161
Financial Services interest expense	—			46,169		—			46,169
Financial Services provision for credit losses	—			29,253		—			29,253
Selling, administrative and engineering expense	257,723			39,383		(3,202		)	293,904
Total costs and expenses	942,884			114,805		(3,202		)	1,054,487
Operating income	22,058			75,127		(477		)	96,708
Investment income	91,083			—		(90,000		)	1,083
Interest expense	7,896			—		—			7,896
Income before provision for income taxes	105,245			75,127		(90,477		)	89,895
Provision for income taxes	(6,134		)	27,820		—			21,686
Net income	$	111,379		$	47,307	$	(90,477	)	$	68,209

	Nine months ended September 24, 2017
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	3,875,669		$	—	$	(7,687	)	$	3,867,982
Financial Services	—			552,201		(1,887		)	550,314
Total revenue	3,875,669			552,201		(9,574		)	4,418,296
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,537,899			—		—			2,537,899
Financial Services interest expense	—			133,866		—			133,866
Financial Services provision for credit losses	—			99,059		—			99,059
Selling, administrative and engineering expense	753,232			113,445		(8,973		)	857,704
Total costs and expenses	3,291,131			346,370		(8,973		)	3,628,528
Operating income	584,538			205,831		(601		)	789,768
Investment income	198,539			—		(196,000		)	2,539
Interest expense	23,295			—		—			23,295
Income before provision for income taxes	759,782			205,831		(196,601		)	769,012
Provision for income taxes	179,058			76,509		—			255,567
Net income	$	580,724		$	129,322	$	(196,601	)	$	513,445



	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



	September 24, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	311,029	$	372,105	$	—		$	683,134
Accounts receivable, net	690,152		—		(347,028		)	343,124
Finance receivables, net	—		2,058,168		—			2,058,168
Inventories	469,091		—		—			469,091
Restricted cash	—		52,209		—			52,209
Other current assets	146,012		46,956		(10,552		)	182,416
Total current assets	1,616,284		2,529,438		(357,580		)	3,788,142
Finance receivables, net	—		5,042,857		—			5,042,857
Property, plant and equipment, net	892,260		42,355		—			934,615
Goodwill	55,898		—		—			55,898
Deferred income taxes	109,116		73,424		(1,965		)	180,575
Other long-term assets	149,257		22,499		(85,484		)	86,272
	$	2,822,815	$	7,710,573	$	(445,029	)	$	10,088,359
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	257,205	$	366,940	$	(347,028	)	$	277,117
Accrued liabilities	479,753		104,814		(10,609		)	573,958
Short-term debt	—		834,875		—			834,875
Current portion of long-term debt, net	—		1,530,401		—			1,530,401
Total current liabilities	736,958		2,837,030		(357,637		)	3,216,351
Long-term debt, net	741,797		3,865,994		—			4,607,791
Pension liability	52,471		—		—			52,471
Postretirement healthcare liability	162,925		—		—			162,925
Other long-term liabilities	154,696		34,071		3,234			192,001
Commitments and contingencies (Note 16)
Shareholders’ equity	973,968		973,478		(90,626		)	1,856,820
	$	2,822,815	$	7,710,573	$	(445,029	)	$	10,088,359



	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 16)
Shareholders’ equity	975,949		1,031,877		(87,668		)	1,920,158
	$	2,740,615	$	7,399,790	$	(250,165	)	$	9,890,240



	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 liability	182,825		—		—			182,825
Other long-term liabilities	160,784		28,425		3,014			192,223
Commitments and contingencies (Note 16)
Shareholders’ equity	1,079,761		999,947		(87,340		)	1,992,368
	$	2,973,628	$	7,739,928	$	(501,330	)	$	10,212,226



	Nine months ended September 24, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	580,724		$	129,322		$	(196,601	)	$	513,445
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	158,938			5,036			—			163,974
Amortization of deferred loan origination costs	—			62,052			—			62,052
Amortization of financing origination fees	491			5,621			—			6,112
Provision for long-term employee benefits	22,427			—			—			22,427
Employee benefit plan contributions and payments	(43,060		)	—			—			(43,060		)
Stock compensation expense	23,223			2,358			—			25,581
Net change in wholesale finance receivables related to sales	—			—			36,678			36,678
Provision for credit losses	—			99,059			—			99,059
Deferred income taxes	3,450			(8,656		)	55			(5,151		)
Other, net	(14,671		)	2,946			603			(11,122		)
Changes in current assets and liabilities:
Accounts receivable, net	(211,115		)	—			181,948			(29,167		)
Finance receivables - accrued interest and other	—			317			—			317
Inventories	50,016			—			—			50,016
Accounts payable and accrued liabilities	75,957			199,855			(187,054		)	88,758
Derivative instruments	2,708			44			—			2,752
Other	(45,830		)	1,731			10,503			(33,596		)
Total adjustments	22,534			370,363			42,733			435,630
Net cash provided by operating activities	603,258			499,685			(153,868		)	949,075



	Nine months ended September 24, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(105,591		)	(8,431		)	—			(114,022		)
Origination of finance receivables	—			(5,791,241		)	2,863,869			(2,927,372		)
Collections on finance receivables	—			5,386,123			(2,906,001		)	2,480,122
Sales and redemptions of marketable securities	6,916			—			—			6,916
Other	356			—			—			356
Net cash used by investing activities	(98,319		)	(413,549		)	(42,132		)	(554,000		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			893,668			—			893,668
Repayments of medium-term notes	—			(400,000		)	—			(400,000		)
Repayments of securitization debt	—			(367,298		)	—			(367,298		)
Borrowings of asset-backed commercial paper	—			371,253			—			371,253
Repayments of asset-backed commercial paper	—			(129,690		)	—			(129,690		)
Net decrease in credit facilities and unsecured commercial paper	—			(225,038		)	—			(225,038		)
Net change in restricted cash	—			3,767			—			3,767
Dividends paid	(190,121		)	(196,000		)	196,000			(190,121		)
Purchase of common stock for treasury	(465,167		)	—			—			(465,167		)
Issuance of common stock under employee stock option plans	7,884			—			—			7,884
Net cash used by financing activities	(647,404		)	(49,338		)	196,000			(500,742		)
Effect of exchange rate changes on cash and cash equivalents	27,954			863			—			28,817
Net (decrease) increase in cash and cash equivalents	$	(114,511	)	$	37,661		$	—		$	(76,850	)
Cash and cash equivalents:
Cash and cash equivalents—beginning of period	$	425,540		$	334,444		$	—		$	759,984
Net (decrease) increase in cash and cash equivalents	(114,511		)	37,661			—			(76,850		)
Cash and cash equivalents—end of period	$	311,029		$	372,105		$	—		$	683,134



	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 net 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 long-term employee benefits	28,508			—			—			28,508
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 asset-backed securitization	—			(9,269		)	—			(9,269		)
Loss on extinguishment of debt	—			118			—			118
Deferred income taxes	(574		)	(10,419		)	(268		)	(11,261		)
Other, net	(24,157		)	648			239			(23,270		)
Changes in current assets and 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 on 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		)
Borrowings of asset-backed commercial paper	—			33,428			—			33,428
Repayments of asset-backed commercial paper	—			(55,170		)	—			(55,170		)
Net decrease in credit facilities and unsecured commercial paper	—			(146,328		)	—			(146,328		)
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