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.



	Year Ended December 31, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	4,981,445	$	—	$	(12,799	)	$	4,968,646
Financial Services	—		747,432		797			748,229
Total revenue	4,981,445		747,432		(12,002		)	5,716,875
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,352,438		—		(642		)	3,351,796
Financial Services interest expense	—		193,187		—			193,187
Financial Services provision for credit losses	—		106,870		—			106,870
Selling, administrative and engineering expense	1,104,919		164,623		(11,444		)	1,258,098
Restructuring expense	93,401		—		—			93,401
Total costs and expenses	4,550,758		464,680		(12,086		)	5,003,352
Operating income	430,687		282,752		84			713,523
Other income (expense), net	3,039		—		—			3,039
Investment income	235,951		—		(235,000		)	951
Interest expense	30,884		—		—			30,884
Income before provision for income taxes	638,793		282,752		(234,916		)	686,629
Provision for income taxes	85,153		70,025		—			155,178
Net income	$	553,640	$	212,727	$	(234,916	)	$	531,451



	Year Ended December 31, 2017
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	4,925,003	$	—	$	(9,976	)	$	4,915,027
Financial Services	—		734,008		(1,811		)	732,197
Total revenue	4,925,003		734,008		(11,787		)	5,647,224
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,272,330		—		—			3,272,330
Financial Services interest expense	—		180,193		—			180,193
Financial Services provision for credit losses	—		132,444		—			132,444
Selling, administrative and engineering expense	1,037,529		154,232		(11,585		)	1,180,176
Total costs and expenses	4,309,859		466,869		(11,585		)	4,765,143
Operating income	615,144		267,139		(202		)	882,081
Other income (expense), net	9,182		—		—			9,182
Investment income	199,580		—		(196,000		)	3,580
Interest expense	31,004		—		—			31,004
Income before provision for income taxes	792,902		267,139		(196,202		)	863,839
Provision for income taxes	214,175		127,905		—			342,080
Net income	$	578,727	$	139,234	$	(196,202	)	$	521,759



	Year Ended December 31, 2016
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	5,281,355	$	—	$	(9,979	)	$	5,271,376
Financial Services	—		726,736		(1,654		)	725,082
Total revenue	5,281,355		726,736		(11,633		)	5,996,458
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,425,997		—		—			3,425,997
Financial Services interest expense	—		173,756		—			173,756
Financial Services provision for credit losses	—		136,617		—			136,617
Selling, administrative and engineering expense	1,076,375		149,157		(11,738		)	1,213,794
Total costs and expenses	4,502,372		459,530		(11,738		)	4,950,164
Operating income	778,983		267,206		105			1,046,294
Other income (expense), net	2,642		—		—			2,642
Investment income	187,645		—		(183,000		)	4,645
Interest expense	29,670		—		—			29,670
Income before provision for income taxes	939,600		267,206		(182,895		)	1,023,911
Provision for income taxes	231,986		99,761		—			331,747
Net income	$	707,614	$	167,445	$	(182,895	)	$	692,164



	December 31, 2018
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	544,548	$	659,218	$	—		$	1,203,766
Marketable securities	10,007		—		—			10,007
Accounts receivable, net	425,727		—		(119,253		)	306,474
Finance receivables, net	—		2,214,424		—			2,214,424
Inventories	556,128		—		—			556,128
Restricted cash	—		49,275		—			49,275
Other current assets	91,172		59,070		(5,874		)	144,368
Total current assets	1,627,582		2,981,987		(125,127		)	4,484,442
Finance receivables, net	—		5,007,507		—			5,007,507
Property, plant and equipment, net	847,176		56,956		—			904,132
Goodwill	55,048		—		—			55,048
Deferred income taxes	105,388		37,603		(1,527		)	141,464
Other long-term assets	144,122		18,680		(89,731		)	73,071
	$	2,779,316	$	8,102,733	$	(216,385	)	$	10,665,664
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	258,587	$	145,527	$	(119,253	)	$	284,861
Accrued liabilities	496,643		110,063		(5,576		)	601,130
Short-term debt	—		1,135,810		—			1,135,810
Current portion of long-term debt, net	—		1,575,799		—			1,575,799
Total current liabilities	755,230		2,967,199		(124,829		)	3,597,600
Long-term debt, net	742,624		4,145,043		—			4,887,667
Pension liability	107,776		—		—			107,776
Postretirement healthcare liability	94,453		—		—			94,453
Other long-term liabilities	164,243		37,142		2,834			204,219
Commitments and contingencies (Note 15)
Shareholders’ equity	914,990		953,349		(94,390		)	1,773,949
	$	2,779,316	$	8,102,733	$	(216,385	)	$	10,665,664



	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



	Year Ended December 31, 2018
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	553,640		$	212,727		$	(234,916	)	$	531,451
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	260,707			4,156			—			264,863
Amortization of deferred loan origination costs	—			81,315			—			81,315
Amortization of financing origination fees	663			7,704			—			8,367
Provision for long-term employee benefits	36,481			—			—			36,481
Employee benefit plan contributions and payments	(10,544		)	—			—			(10,544		)
Stock compensation expense	31,855			3,684			—			35,539
Net change in wholesale finance receivables related to sales	—			—			(56,538		)	(56,538		)
Provision for credit losses	—			106,870			—			106,870
Deferred income taxes	(41,905		)	7,716			208			(33,981		)
Other, net	36,840			798			(84		)	37,554
Changes in current assets and liabilities:
Accounts receivable, net	43,613			—			(34,470		)	9,143
Finance receivables—accrued interest and other	—			773			—			773
Inventories	(31,059		)	—			—			(31,059		)
Accounts payable and accrued liabilities	152,930			(1,778		)	45,040			196,192
Derivative instruments	337			136			—			473
Other	39,031			(10,216		)	207			29,022
Total adjustments	518,949			201,158			(45,637		)	674,470
Net cash provided by operating activities	1,072,589			413,885			(280,553		)	1,205,921
Cash flows from investing activities:
Capital expenditures	(197,905		)	(15,611		)	—			(213,516		)
Origination of finance receivables	—			(7,192,063		)	3,439,246			(3,752,817		)
Collections on finance receivables	—			6,719,362			(3,393,693		)	3,325,669
Purchases of marketable securities	(10,007		)	—			—			(10,007		)
Other	(11,598		)	—			—			(11,598		)
Net cash used by investing activities	(219,510		)	(488,312		)	45,553			(662,269		)



	Year Ended December 31, 2018
	HDMC Entities			HDFS Entities			Eliminations		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,591,828			—		1,591,828
Repayments of medium-term notes	—			(877,488		)	—		(877,488		)
Repayments of securitization debt	—			(257,869		)	—		(257,869		)
Borrowings of asset-backed commercial paper	—			509,742			—		509,742
Repayments of asset-backed commercial paper	—			(212,729		)	—		(212,729		)
Net decrease in credit facilities and unsecured commercial paper	—			(135,356		)	—		(135,356		)
Dividends paid	(245,810		)	(235,000		)	235,000		(245,810		)
Purchase of common stock for treasury	(390,606		)	—			—		(390,606		)
Issuance of common stock under employee stock option plans	3,525			—			—		3,525
Net cash (used) provided by financing activities	(632,891		)	383,128			235,000		(14,763		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(13,826		)	(1,525		)	—		(15,351		)
Net increase in cash, cash equivalents and restricted cash	$	206,362		$	307,176		$	—	$	513,538
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	206,362			307,176			—		513,538
Cash, cash equivalents and restricted cash—end of period	$	544,548		$	715,200		$	—	$	1,259,748



	Year Ended December 31, 2017
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	578,727		$	139,234		$	(196,202	)	$	521,759
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	215,639			6,549			—			222,188
Amortization of deferred loan origination costs	—			82,911			—			82,911
Amortization of financing origination fees	655			7,390			—			8,045
Provision for long-term employee benefits	29,900			—			—			29,900
Employee benefit plan contributions and payments	(63,277		)	—			—			(63,277		)
Stock compensation expense	29,570			2,921			—			32,491
Net change in wholesale finance receivables related to sales	—			—			35,172			35,172
Provision for credit losses	—			132,444			—			132,444
Deferred income taxes	29,949			21,497			(591		)	50,855
Other, net	4,858			3,498			203			8,559
Changes in current assets and liabilities:
Accounts receivable, net	(6,792		)	—			(11,357		)	(18,149		)
Finance receivables – accrued interest and other	—			(1,313		)	—			(1,313		)
Inventories	(20,584		)	—			—			(20,584		)
Accounts payable and accrued liabilities	9,753			(11,497		)	11,872			10,128
Derivative instruments	1,785			81			—			1,866
Other	(31,868		)	(1,684		)	5,618			(27,934		)
Total adjustments	199,588			242,797			40,917			483,302
Net cash provided by operating activities	778,315			382,031			(155,285		)	1,005,061
Cash flows from investing activities:
Capital expenditures	(193,204		)	(13,090		)	—			(206,294		)
Origination of finance receivables	—			(7,109,624		)	3,517,676			(3,591,948		)
Collections on finance receivables	—			6,786,702			(3,558,391		)	3,228,311
Sales and redemptions of marketable securities	6,916			—			—			6,916
Other	547			—			—			547
Net cash used by investing activities	(185,741		)	(336,012		)	(40,715		)	(562,468		)



	Year Ended December 31, 2017
	HDMC Entities			HDFS Entities			Eliminations		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			893,668			—		893,668
Repayments of medium-term notes	—			(800,000		)	—		(800,000		)
Repayments of securitization debt	—			(444,671		)	—		(444,671		)
Borrowings of asset-backed commercial paper	—			469,932			—		469,932
Repayments of asset-backed commercial paper	—			(176,227		)	—		(176,227		)
Net increase in credit facilities and unsecured commercial paper	—			212,809			—		212,809
Dividends paid	(251,862		)	(196,000		)	196,000		(251,862		)
Purchase of common stock for treasury	(465,263		)	—			—		(465,263		)
Issuance of common stock under employee stock option plans	11,353			—			—		11,353
Net cash used by financing activities	(705,772		)	(40,489		)	196,000		(550,261		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	25,844			903			—		26,747
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(87,354	)	$	6,433		$	—	$	(80,921	)
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	(87,354		)	6,433			—		(80,921		)
Cash, cash equivalents and restricted cash – end of period	$	338,186		$	408,024		$	—	$	746,210



	Year Ended December 31, 2016
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	707,614		$	167,445		$	(182,895	)	$	692,164
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	202,122			7,433			—			209,555
Amortization of deferred loan origination costs	—			86,681			—			86,681
Amortization of financing origination fees	654			8,598			—			9,252
Provision for long-term employee benefits	38,273			—			—			38,273
Employee benefit plan contributions and payments	(55,809		)	—			—			(55,809		)
Stock compensation expense	29,811			2,525			—			32,336
Net change in wholesale finance receivables related to sales	—			—			(3,233		)	(3,233		)
Provision for credit losses	—			136,617			—			136,617
Gain on off-balance sheet asset-backed securitization	—			(9,269		)	—			(9,269		)
Loss on debt extinguishment	—			118			—			118
Deferred income taxes	7,772			(7,705		)	(232		)	(165		)
Other, net	(7,041		)	239			(105		)	(6,907		)
Changes in current assets and liabilities:
Accounts receivable, net	(67,621		)	—			21,687			(45,934		)
Finance receivables – accrued interest and other	—			(1,489		)	—			(1,489		)
Inventories	85,072			—			—			85,072
Accounts payable and accrued liabilities	26,005			25,027			(12,795		)	38,237
Derivative instruments	(3,413		)	—			—			(3,413		)
Other	(25,415		)	(2,332		)	—			(27,747		)
Total adjustments	230,410			246,443			5,322			482,175
Net cash provided by operating activities	938,024			413,888			(177,573		)	1,174,339
Cash flows from investing activities:
Capital expenditures	(245,316		)	(10,947		)	—			(256,263		)
Origination of finance receivables	—			(7,420,177		)	3,755,682			(3,664,495		)
Collections on finance receivables	—			6,936,140			(3,761,109		)	3,175,031
Proceeds from finance receivables sold	—			312,571			—			312,571
Sales and redemptions of marketable securities	40,014			—			—			40,014
Other	411			—			—			411
Net cash used by investing activities	(204,891		)	(182,413		)	(5,427		)	(392,731		)



	Year Ended December 31, 2016
	HDMC Entities			HDFS Entities			Eliminations		Consolidated
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	—			(665,400		)	—		(665,400		)
Borrowings of asset-backed commercial paper	—			62,396			—		62,396
Repayments of asset-backed commercial paper	—			(71,500		)	—		(71,500		)
Net decrease in credit facilities and unsecured commercial paper	—			(145,812		)	—		(145,812		)
Dividends paid	(252,321		)	(183,000		)	183,000		(252,321		)
Purchase of common stock for treasury	(465,341		)	—			—		(465,341		)
Excess tax benefits from share-based payments	2,251			—			—		2,251
Issuance of common stock under employee stock option plans	15,782			—			—		15,782
Net cash used by financing activities	(699,629		)	(261,256		)	183,000		(777,885		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(8,407		)	(1,036		)	—		(9,443		)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	25,097		$	(30,817	)	$	—	$	(5,720	)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash – beginning of period	$	400,443		$	432,408		$	—	$	832,851
Net increase (decrease) in cash, cash equivalents and restricted cash	25,097			(30,817		)	—		(5,720		)
Cash, cash equivalents and restricted cash – end of period	$	425,540		$	401,591		$	—	$	827,131