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 September 30, 2018
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,126,977		$	—	$	(3,032	)	$	1,123,945
Financial Services	—			192,188		(464		)	191,724
Total revenue	1,126,977			192,188		(3,496		)	1,315,669
Costs and expenses:
Motorcycles and Related Products cost of goods sold	776,530			—		—			776,530
Financial Services interest expense	—			44,696		—			44,696
Financial Services provision for credit losses	—			23,530		—			23,530
Selling, administrative and engineering expense	267,316			42,776		(3,427		)	306,665
Restructuring expense	14,832			—		—			14,832
Total costs and expenses	1,058,678			111,002		(3,427		)	1,166,253
Operating income	68,299			81,186		(69		)	149,416
Other income (expense), net	644			—		—			644
Investment loss	(1,106		)	—		—			(1,106		)
Interest expense	7,762			—		—			7,762
Income before provision for income taxes	60,075			81,186		(69		)	141,192
Provision for income taxes	10,613			16,724		—			27,337
Net income	$	49,462		$	64,462	$	(69	)	$	113,855

	Nine months ended September 30, 2018
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	4,021,268		$	—	$	(8,255	)	$	4,013,013
Financial Services	—			559,436		(1,436		)	558,000
Total revenue	4,021,268			559,436		(9,691		)	4,571,013
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,659,740			—		—			2,659,740
Financial Services interest expense	—			145,089		—			145,089
Financial Services provision for credit losses	—			72,462		—			72,462
Selling, administrative and engineering expense	798,544			120,830		(9,476		)	909,898
Restructuring expense	74,044			—		—			74,044
Total costs and expenses	3,532,328			338,381		(9,476		)	3,861,233
Operating income	488,940			221,055		(215		)	709,780
Other income (expense), net	1,509			—		—			1,509
Investment income	112,630			—		(110,000		)	2,630
Interest expense	23,180			—		—			23,180
Income before provision for income taxes	579,899			221,055		(110,215		)	690,739
Provision for income taxes	110,529			49,254		—			159,783
Net income	$	469,370		$	171,801	$	(110,215	)	$	530,956



	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	687,823			—		—			687,823
Financial Services interest expense	—			46,169		—			46,169
Financial Services provision for credit losses	—			29,253		—			29,253
Selling, administrative and engineering expense	257,357			39,383		(3,202		)	293,538
Total costs and expenses	945,180			114,805		(3,202		)	1,056,783
Operating income	19,762			75,127		(477		)	94,412
Other income (expense), net	2,296			—		—			2,296
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	2,545,884			—		—			2,545,884
Financial Services interest expense	—			133,866		—			133,866
Financial Services provision for credit losses	—			99,059		—			99,059
Selling, administrative and engineering expense	752,134			113,445		(8,973		)	856,606
Total costs and expenses	3,298,018			346,370		(8,973		)	3,635,415
Operating income	577,651			205,831		(601		)	782,881
Other income (expense), net	6,887			—		—			6,887
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



	September 30, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	576,670	$	350,322	$	—		$	926,992
Marketable securities	10,011		—		—			10,011
Accounts receivable, net	640,416		—		(308,107		)	332,309
Finance receivables, net	—		2,116,386		—			2,116,386
Inventories	516,247		—		—			516,247
Restricted cash	—		36,471		—			36,471
Other current assets	106,259		44,783		—			151,042
Total current assets	1,849,603		2,547,962		(308,107		)	4,089,458
Finance receivables, net	—		5,187,176		—			5,187,176
Property, plant and equipment, net	833,279		51,681		—			884,960
Prepaid pension costs	140,763		—		—			140,763
Goodwill	55,318		—		—			55,318
Deferred income taxes	25,780		39,203		(1,424		)	63,559
Other long-term assets	151,815		19,799		(89,048		)	82,566
	$	3,056,558	$	7,845,821	$	(398,579	)	$	10,503,800
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	291,395	$	327,679	$	(308,107	)	$	310,967
Accrued liabilities	483,964		80,427		441			564,832
Short-term debt	—		1,373,859		—			1,373,859
Current portion of long-term debt, net	—		1,526,156		—			1,526,156
Total current liabilities	775,359		3,308,121		(307,666		)	3,775,814
Long-term debt, net	742,458		3,454,059		—			4,196,517
Pension liability	54,138		—		—			54,138
Postretirement healthcare liability	112,798		—		—			112,798
Other long-term liabilities	170,464		38,003		3,094			211,561
Commitments and contingencies (Note 15)
Shareholders’ equity	1,201,341		1,045,638		(94,007		)	2,152,972
	$	3,056,558	$	7,845,821	$	(398,579	)	$	10,503,800



	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



	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 15)
Shareholders’ equity	973,968		973,478		(90,626		)	1,856,820
	$	2,822,815	$	7,710,573	$	(445,029	)	$	10,088,359



	Nine months ended September 30, 2018
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	469,370		$	171,801	$	(110,215	)	$	530,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	193,289			3,172		—			196,461
Amortization of deferred loan origination costs	—			61,213		—			61,213
Amortization of financing origination fees	497			5,710		—			6,207
Provision for long-term employee benefits	28,162			—		—			28,162
Employee benefit plan contributions and payments	(11,035		)	—		—			(11,035		)
Stock compensation expense	26,122			3,000		—			29,122
Net change in wholesale finance receivables related to sales	—			—		(18,400		)	(18,400		)
Provision for credit losses	—			72,462		—			72,462
Deferred income taxes	(2,991		)	4,343		105			1,457
Other, net	28,426			699		215			29,340
Changes in current assets and liabilities:
Accounts receivable, net	(169,168		)	—		154,384			(14,784		)
Finance receivables - accrued interest and other	—			1,374		—			1,374
Inventories	8,270			—		—			8,270
Accounts payable and accrued liabilities	170,001			152,028		(138,423		)	183,606
Derivative instruments	1,124			103		—			1,227
Other	19,411			3,173		(5,667		)	16,917
Total adjustments	292,108			307,277		(7,786		)	591,599
Net cash provided by operating activities	761,478			479,078		(118,001		)	1,122,555



	Nine months ended September 30, 2018
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(110,493		)	(9,352		)	—			(119,845		)
Origination of finance receivables	—			(5,845,799		)	2,806,639			(3,039,160		)
Collections on finance receivables	—			5,363,333			(2,798,638		)	2,564,695
Other	(21,753		)	—			—			(21,753		)
Net cash used by investing activities	(132,246		)	(491,818		)	8,001			(616,063		)
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	—			(224,507		)	—			(224,507		)
Borrowings of asset-backed commercial paper	—			120,903			—			120,903
Repayments of asset-backed commercial paper	—			(156,258		)	—			(156,258		)
Net increase in credit facilities and unsecured commercial paper	—			102,154			—			102,154
Dividends paid	(186,105		)	(110,000		)	110,000			(186,105		)
Purchase of common stock for treasury	(195,998		)	—			—			(195,998		)
Issuance of common stock under employee stock option plans	3,157			—			—			3,157
Net cash used by financing activities	(378,946		)	(1,178		)	110,000			(270,124		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(11,802		)	(765		)	—			(12,567		)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	238,484		$	(14,683	)	$	—		$	223,801
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	238,484			(14,683		)	—			223,801
Cash, cash equivalents and restricted cash—end of period	$	576,670		$	393,341		$	—		$	970,011



	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
Other	7,272			—			—			7,272
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		)
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		)	(53,105		)	196,000			(504,509		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	27,954			863			—			28,817
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(114,511	)	$	33,894		$	—		$	(80,617	)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	425,540		$	401,591		$	—		$	827,131
Net (decrease) increase in cash, cash equivalents and restricted cash	(114,511		)	33,894			—			(80,617		)
Cash, cash equivalents and restricted cash—end of period	$	311,029		$	435,485		$	—		$	746,514