Supplemental Consolidating Data (Tables)

6 Months Ended

Jul. 01, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Three months ended July 1, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,528,045	$	—	$	(2,924	)	$	1,525,121
Financial Services	—		188,788		(686		)	188,102
Total revenue	1,528,045		188,788		(3,610		)	1,713,223
Costs and expenses:
Motorcycles and Related Products cost of goods sold	993,036		—		—			993,036
Financial Services interest expense	—		51,943		—			51,943
Financial Services provision for credit losses	—		18,880		—			18,880
Selling, administrative and engineering expense	276,827		39,663		(3,443		)	313,047
Restructuring expense	12,370		—		—			12,370
Total costs and expenses	1,282,233		110,486		(3,443		)	1,389,276
Operating income	245,812		78,302		(167		)	323,947
Other income (expense), net	645		—		—			645
Investment income	2,533		—		—			2,533
Interest expense	7,728		—		—			7,728
Income before provision for income taxes	241,262		78,302		(167		)	319,397
Provision for income taxes	59,683		17,376		—			77,059
Net income	$	181,579	$	60,926	$	(167	)	$	242,338
	Six months ended July 1, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	2,894,291	$	—	$	(5,223	)	$	2,889,068
Financial Services	—		367,248		(972		)	366,276
Total revenue	2,894,291		367,248		(6,195		)	3,255,344
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,883,210		—		—			1,883,210
Financial Services interest expense	—		100,393		—			100,393
Financial Services provision for credit losses	—		48,932		—			48,932
Selling, administrative and engineering expense	531,228		78,054		(6,049		)	603,233
Restructuring expense	59,212		—		—			59,212
Total costs and expenses	2,473,650		227,379		(6,049		)	2,694,980
Operating income	420,641		139,869		(146		)	560,364
Other income (expense), net	865		—		—			865
Investment income	113,736		—		(110,000		)	3,736
Interest expense	15,418		—		—			15,418
Income before provision for income taxes	519,824		139,869		(110,146		)	549,547
Provision for income taxes	99,916		32,530		—			132,446
Net income	$	419,908	$	107,339	$	(110,146	)	$	417,101

	Three months ended June 25, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,580,109	$	—	$	(2,974	)	$	1,577,135
Financial Services	—		188,712		(678		)	188,034
Total revenue	1,580,109		188,712		(3,652		)	1,765,169
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,004,173		—		—			1,004,173
Financial Services interest expense	—		44,408		—			44,408
Financial Services provision for credit losses	—		26,217		—			26,217
Selling, administrative and engineering expense	256,147		38,448		(3,511		)	291,084
Total costs and expenses	1,260,320		109,073		(3,511		)	1,365,882
Operating income	319,789		79,639		(141		)	399,287
Other income (expense), net	2,295		—		—			2,295
Investment income	577		—		—			577
Interest expense	7,726		—		—			7,726
Income before provision for income taxes	314,935		79,639		(141		)	394,433
Provision for income taxes	106,035		29,531		—			135,566
Net income	$	208,900	$	50,108	$	(141	)	$	258,867
	Six months ended June 25, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	2,910,727	$	—	$	(4,881	)	$	2,905,846
Financial Services	—		362,269		(1,014		)	361,255
Total revenue	2,910,727		362,269		(5,895		)	3,267,101
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,858,061		—		—			1,858,061
Financial Services interest expense	—		87,697		—			87,697
Financial Services provision for credit losses	—		69,806		—			69,806
Selling, administrative and engineering expense	494,777		74,062		(5,771		)	563,068
Total costs and expenses	2,352,838		231,565		(5,771		)	2,578,632
Operating income	557,889		130,704		(124		)	688,469
Other income (expense), net	4,591		—		—			4,591
Investment income	107,456		—		(106,000		)	1,456
Interest expense	15,399		—		—			15,399
Income before provision for income taxes	654,537		130,704		(106,124		)	679,117
Provision for income taxes	185,192		48,689		—			233,881
Net income	$	469,345	$	82,015	$	(106,124	)	$	445,236

Balance Sheet

	July 1, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	627,783	$	350,966	$	—		$	978,749
Accounts receivable, net	669,266		—		(333,672		)	335,594
Finance receivables, net	—		2,252,956		—			2,252,956
Inventories	465,373		—		—			465,373
Restricted cash	—		44,386		—			44,386
Other current assets	124,521		41,841		—			166,362
Total current assets	1,886,943		2,690,149		(333,672		)	4,243,420
Finance receivables, net	—		5,060,246		—			5,060,246
Property, plant and equipment, net	854,681		49,432		—			904,113
Prepaid pension costs	131,497		—		—			131,497
Goodwill	55,451		—		—			55,451
Deferred income taxes	27,043		41,696		(1,234		)	67,505
Other long-term assets	151,691		19,999		(87,900		)	83,790
	$	3,107,306	$	7,861,522	$	(422,806	)	$	10,546,022
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	262,562	$	358,324	$	(333,672	)	$	287,214
Accrued liabilities	481,402		90,416		622			572,440
Short-term debt	—		1,327,307		—			1,327,307
Current portion of long-term debt, net	—		945,463		—			945,463
Total current liabilities	743,964		2,721,510		(333,050		)	3,132,424
Long-term debt, net	742,292		4,126,054		—			4,868,346
Pension liability	55,819		—		—			55,819
Postretirement healthcare liability	113,464		—		—			113,464
Other long-term liabilities	174,412		36,997		3,034			214,443
Commitments and contingencies (Note 15)
Shareholders’ equity	1,277,355		976,961		(92,790		)	2,161,526
	$	3,107,306	$	7,861,522	$	(422,806	)	$	10,546,022

	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

	June 25, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	586,892	$	401,584	$	—		$	988,476
Accounts receivable, net	709,343		—		(378,410		)	330,933
Finance receivables, net	—		2,338,533		—			2,338,533
Inventories	372,012		—		—			372,012
Restricted cash	—		63,225		—			63,225
Other current assets	108,162		43,261		—			151,423
Total current assets	1,776,409		2,846,603		(378,410		)	4,244,602
Finance receivables, net	—		4,994,002		—			4,994,002
Property, plant and equipment, net	905,244		41,082		—			946,326
Goodwill	54,630		—		—			54,630
Deferred income taxes	100,949		71,108		(1,699		)	170,358
Other long-term assets	139,742		22,740		(84,629		)	77,853
	$	2,976,974	$	7,975,535	$	(464,738	)	$	10,487,771
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	298,372	$	407,384	$	(378,410	)	$	327,346
Accrued liabilities	441,102		92,217		93			533,412
Short-term debt	—		928,445		—			928,445
Current portion of long-term debt, net	—		1,565,558		—			1,565,558
Total current liabilities	739,474		2,993,604		(378,317		)	3,354,761
Long-term debt, net	741,633		3,936,717		—			4,678,350
Pension liability	51,797		—		—			51,797
Postretirement healthcare liability	166,023		—		—			166,023
Other long-term liabilities	155,086		32,714		2,873			190,673
Commitments and contingencies (Note 15)
Shareholders’ equity	1,122,961		1,012,500		(89,294		)	2,046,167
	$	2,976,974	$	7,975,535	$	(464,738	)	$	10,487,771

Cash Flows

	Six months ended July 1, 2018
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	419,908		$	107,339		$	(110,146	)	$	417,101
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	127,935			2,126			—			130,061
Amortization of deferred loan origination costs	—			39,396			—			39,396
Amortization of financing origination fees	331			3,802			—			4,133
Provision for long-term employee benefits	18,954			—			—			18,954
Employee benefit plan contributions and payments	(6,422		)	—			—			(6,422		)
Stock compensation expense	17,229			1,852			—			19,081
Net change in wholesale finance receivables related to sales	—			—			(171,195		)	(171,195		)
Provision for credit losses	—			48,932			—			48,932
Deferred income taxes	(443		)	2,043			(85		)	1,515
Other, net	20,993			(245		)	146			20,894
Changes in current assets and liabilities:
Accounts receivable, net	(194,831		)	—			179,949			(14,882		)
Finance receivables - accrued interest and other	—			4,228			—			4,228
Inventories	63,957			—			—			63,957
Accounts payable and accrued liabilities	137,644			192,410			(168,953		)	161,101
Derivative instruments	(205		)	69			—			(136		)
Other	2,924			1,884			(5,667		)	(859		)
Total adjustments	188,066			296,497			(165,805		)	318,758
Net cash provided by operating activities	607,974			403,836			(275,951		)	735,859

	Six months ended July 1, 2018
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(63,236		)	(6,057		)	—			(69,293		)
Origination of finance receivables	—			(4,046,125		)	2,046,339			(1,999,786		)
Collections on finance receivables	—			3,593,272			(1,880,388		)	1,712,884
Other	(11,758		)	—			—			(11,758		)
Net cash used by investing activities	(74,994		)	(458,910		)	165,951			(367,953		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,144,018			—			1,144,018
Repayments of medium-term notes	—			(877,488		)	—			(877,488		)
Repayments of securitization debt	—			(183,453		)	—			(183,453		)
Borrowings of asset-backed commercial paper	—			120,903			—			120,903
Repayments of asset-backed commercial paper	—			(100,660		)	—			(100,660		)
Net increase in credit facilities and unsecured commercial paper	—			56,280			—			56,280
Dividends paid	(124,680		)	(110,000		)	110,000			(124,680		)
Purchase of common stock for treasury	(111,227		)	—			—			(111,227		)
Issuance of common stock under employee stock option plans	1,965			—			—			1,965
Net cash (used) provided by financing activities	(233,942		)	49,600			110,000			(74,342		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(9,441		)	(650		)	—			(10,091		)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	289,597		$	(6,124	)	$	—		$	283,473
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	338,186		$	408,024		$	—		$	746,210
Net increase (decrease) in cash, cash equivalents and restricted cash	289,597			(6,124		)	—			283,473
Cash, cash equivalents and restricted cash—end of period	$	627,783		$	401,900		$	—		$	1,029,683

	Six months ended June 25, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	469,345		$	82,015		$	(106,124	)	$	445,236
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	104,157			3,421			—			107,578
Amortization of deferred loan origination costs	—			40,771			—			40,771
Amortization of financing origination fees	327			3,752			—			4,079
Provision for long-term employee benefits	14,950			—			—			14,950
Employee benefit plan contributions and payments	(37,307		)	—			—			(37,307		)
Stock compensation expense	15,995			1,502			—			17,497
Net change in wholesale finance receivables related to sales	—			—			(271,927		)	(271,927		)
Provision for credit losses	—			69,806			—			69,806
Deferred income taxes	4,975			(4,586		)	(211		)	178
Other, net	(6,422		)	2,134			125			(4,163		)
Changes in current assets and liabilities:
Accounts receivable, net	(241,569		)	—			213,330			(28,239		)
Finance receivables - accrued interest and other	—			2,067			—			2,067
Inventories	138,942			—			—			138,942
Accounts payable and accrued liabilities	112,916			228,247			(208,043		)	133,120
Derivative instruments	3,106			8			—			3,114
Other	(8,683		)	98			(49		)	(8,634		)
Total adjustments	101,387			347,220			(266,775		)	181,832
Net cash provided by operating activities	570,732			429,235			(372,899		)	627,068

	Six months ended June 25, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(64,273		)	(5,543		)	—			(69,816		)
Origination of finance receivables	—			(4,205,868		)	2,228,029			(1,977,839		)
Collections on finance receivables	—			3,608,929			(1,961,130		)	1,647,799
Other	7,031			—			—			7,031
Net cash used by investing activities	(57,242		)	(602,482		)	266,899			(392,825		)
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	—			(275,659		)	—			(275,659		)
Borrowings of asset-backed commercial paper	—			341,625			—			341,625
Repayments of asset-backed commercial paper	—			(77,732		)	—			(77,732		)
Net decrease in credit facilities and unsecured commercial paper	—			(128,787		)	—			(128,787		)
Dividends paid	(128,452		)	(106,000		)	106,000			(128,452		)
Purchase of common stock for treasury	(243,055		)	—			—			(243,055		)
Issuance of common stock under employee stock option plans	7,432			—			—			7,432
Net cash (used) provided by financing activities	(364,075		)	247,115			106,000			(10,960		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	11,937			520			—			12,457
Net increase in cash, cash equivalents and restricted cash	$	161,352		$	74,388		$	—		$	235,740
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	161,352			74,388			—			235,740
Cash, cash equivalents and restricted cash—end of period	$	586,892		$	475,979		$	—		$	1,062,871