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 the reportable segments. All supplemental data is presented in thousands.



	Three months ended April 1, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,366,246	$	—	$	(2,299	)	$	1,363,947
Financial Services	—		178,460		(286		)	178,174
Total revenue	1,366,246		178,460		(2,585		)	1,542,121
Costs and expenses:
Motorcycles and Related Products cost of goods sold	890,174		—		—			890,174
Financial Services interest expense	—		48,450		—			48,450
Financial Services provision for credit losses	—		30,052		—			30,052
Selling, administrative and engineering expense	254,401		38,391		(2,606		)	290,186
Restructuring expense	46,842		—		—			46,842
Total costs and expenses	1,191,417		116,893		(2,606		)	1,305,704
Operating income	174,829		61,567		21			236,417
Other income (expense), net	220		—		—			220
Investment income	111,203		—		(110,000		)	1,203
Interest expense	7,690		—		—			7,690
Income before provision for income taxes	278,562		61,567		(109,979		)	230,150
Provision for income taxes	40,233		15,154		—			55,387
Net income	$	238,329	$	46,413	$	(109,979	)	$	174,763



	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	853,888		—		—			853,888
Financial Services interest expense	—		43,289		—			43,289
Financial Services provision for credit losses	—		43,589		—			43,589
Selling, administrative and engineering expense	238,630		35,614		(2,260		)	271,984
Total costs and expenses	1,092,518		122,492		(2,260		)	1,212,750
Operating income	238,100		51,065		17			289,182
Other income (expense), net	2,296		—		—			2,296
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



	April 1, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	403,009	$	350,508	$	—		$	753,517
Accounts receivable, net	686,265		—		(331,158		)	355,107
Finance receivables, net	—		2,341,918		—			2,341,918
Inventories	564,571		—		—			564,571
Restricted cash	—		54,569		—			54,569
Other current assets	108,613		44,724		(2,865		)	150,472
Total current assets	1,762,458		2,791,719		(334,023		)	4,220,154
Finance receivables, net	—		4,784,524		—			4,784,524
Property, plant and equipment, net	887,522		47,123		—			934,645
Prepaid pension costs	122,230		—		—			122,230
Goodwill	56,524		—		—			56,524
Deferred income taxes	36,140		42,543		(1,059		)	77,624
Other long-term assets	145,344		23,514		(86,938		)	81,920
	$	3,010,218	$	7,689,423	$	(422,020	)	$	10,277,621
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	297,162	$	353,036	$	(331,158	)	$	319,040
Accrued liabilities	462,279		106,149		(2,020		)	566,408
Short-term debt	—		1,036,976		—			1,036,976
Current portion of long-term debt, net	—		1,872,679		—			1,872,679
Total current liabilities	759,441		3,368,840		(333,178		)	3,795,103
Long-term debt, net	742,126		3,366,385		—			4,108,511
Pension liability	54,921		—		—			54,921
Postretirement healthcare liability	113,031		—		—			113,031
Other long-term liabilities	171,389		35,899		2,818			210,106
Commitments and contingencies (Note 15)
Shareholders’ equity	1,169,310		918,299		(91,660		)	1,995,949
	$	3,010,218	$	7,689,423	$	(422,020	)	$	10,277,621



	December 31, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	338,186	$	349,335	$	—		$	687,521
Accounts receivable, net	483,709		—		(153,723		)	329,986
Finance receivables, net	—		2,105,662		—			2,105,662
Inventories	538,202		—		—			538,202
Restricted cash	—		47,518		—			47,518
Other current assets	132,999		48,521		(5,667		)	175,853
Total current assets	1,493,096		2,551,036		(159,390		)	3,884,742
Finance receivables, net	—		4,859,424		—			4,859,424
Property, plant and equipment, net	922,280		45,501		—			967,781
Prepaid pension costs	19,816		—		—			19,816
Goodwill	55,947		—		—			55,947
Deferred income taxes	66,877		43,515		(1,319		)	109,073
Other long-term assets	138,344		23,593		(86,048		)	75,889
	$	2,696,360	$	7,523,069	$	(246,757	)	$	9,972,672
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	214,263	$	167,057	$	(153,723	)	$	227,597
Accrued liabilities	444,028		90,942		(5,148		)	529,822
Short-term debt	—		1,273,482		—			1,273,482
Current portion of long-term debt, net	—		1,127,269		—			1,127,269
Total current liabilities	658,291		2,658,750		(158,871		)	3,158,170
Long-term debt, net	741,961		3,845,297		—			4,587,258
Pension liability	54,606		—		—			54,606
Postretirement healthcare liability	118,753		—		—			118,753
Other long-term liabilities	171,200		35,503		2,905			209,608
Commitments and contingencies (Note 15)
Shareholders’ equity	951,549		983,519		(90,791		)	1,844,277
	$	2,696,360	$	7,523,069	$	(246,757	)	$	9,972,672



	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



	Three months ended April 1, 2018
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	238,329		$	46,413	$	(109,979	)	$	174,763
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	61,405			1,068		—			62,473
Amortization of deferred loan origination costs	—			20,116		—			20,116
Amortization of financing origination fees	165			1,863		—			2,028
Provision for long-term employee benefits	9,747			—		—			9,747
Employee benefit plan contributions and payments	(5,486		)	—		—			(5,486		)
Stock compensation expense	7,072			890		—			7,962
Net change in wholesale finance receivables related to sales	—			—		(239,902		)	(239,902		)
Provision for credit losses	—			30,052		—			30,052
Deferred income taxes	2,469			979		(260		)	3,188
Other, net	(2,081		)	200		(21		)	(1,902		)
Changes in current assets and liabilities:
Accounts receivable, net	(195,123		)	—		177,435			(17,688		)
Finance receivables - accrued interest and other	—			4,758		—			4,758
Inventories	(21,542		)	—		—			(21,542		)
Accounts payable and accrued liabilities	121,833			201,056		(173,966		)	148,923
Derivative instruments	666			36		—			702
Other	9,935			6,269		(2,802		)	13,402
Total adjustments	(10,940		)	267,287		(239,516		)	16,831
Net cash provided by operating activities	227,389			313,700		(349,495		)	191,594



	Three months ended April 1, 2018
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(25,746		)	(2,690		)	—			(28,436		)
Origination of finance receivables	—			(1,786,309		)	988,242			(798,067		)
Collections on finance receivables	—			1,558,547			(748,747		)	809,800
Other	(4,948		)	—			—			(4,948		)
Net cash used by investing activities	(30,694		)	(230,452		)	239,495			(21,651		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			347,553			—			347,553
Repayments of securitization debt	—			(67,955		)	—			(67,955		)
Borrowings of asset-backed commercial paper	—			35,504			—			35,504
Repayments of asset-backed commercial paper	—			(45,907		)	—			(45,907		)
Net decrease in credit facilities and unsecured commercial paper	—			(234,145		)	—			(234,145		)
Dividends paid	(62,731		)	(110,000		)	110,000			(62,731		)
Purchase of common stock for treasury	(72,968		)	—			—			(72,968		)
Issuance of common stock under employee stock option plans	1,719			—			—			1,719
Net cash used by financing activities	(133,980		)	(74,950		)	110,000			(98,930		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	2,108			(74		)	—			2,034
Net increase in cash, cash equivalents and restricted cash	$	64,823		$	8,224		$	—		$	73,047
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	338,186		$	408,024		$	—		$	746,210
Net increase in cash, cash equivalents and restricted cash	64,823			8,224			—			73,047
Cash, cash equivalents and restricted cash—end of period	$	403,009		$	416,248		$	—		$	819,257



	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
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		)
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) provided by financing activities	(137,028		)	54,171			106,000			23,143
Effect of exchange rate changes on cash, cash equivalents and restricted cash	7,175			44			—			7,219
Net increase in cash, cash equivalents and restricted cash	$	53,899		$	48,949		$	—		$	102,848
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	425,540		$	401,591		$	—		$	827,131
Net increase in cash, cash equivalents and restricted cash	53,899			48,949			—			102,848
Cash, cash equivalents and restricted cash—end of period	$	479,439		$	450,540		$	—		$	929,979