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 March 31, 2019
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
Revenue:
Motorcycles and Related Products	$	1,200,009	$	—	$	(4,372	)	$	1,195,637
Financial Services	—		186,753		1,990			188,743
Total revenue	1,200,009		186,753		(2,382		)	1,384,380
Costs and expenses:
Motorcycles and Related Products cost of goods sold	848,703		—		(505		)	848,198
Financial Services interest expense	—		52,324		—			52,324
Financial Services provision for credit losses	—		34,491		—			34,491
Selling, administrative and engineering expense	227,992		42,588		(1,955		)	268,625
Restructuring expense	13,630		—		—			13,630
Total costs and expenses	1,090,325		129,403		(2,460		)	1,217,268
Operating income	109,684		57,350		78			167,112
Other income (expense), net	4,660		—		—			4,660
Investment income	51,358		—		(45,000		)	6,358
Interest expense	7,731		—		—			7,731
Income before provision for income taxes	157,971		57,350		(44,922		)	170,399
Provision for income taxes	28,557		13,897		—			42,454
Net income	$	129,414	$	43,453	$	(44,922	)	$	127,945



	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



	March 31, 2019
	HDMC Entities		HDFS Entities		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	384,390	$	365,210	$	—		$	749,600
Marketable securities	10,003		—		—			10,003
Accounts receivable, net	666,782		—		(313,241		)	353,541
Finance receivables, net	—		2,443,899		—			2,443,899
Inventories	595,806		—		—			595,806
Restricted cash	—		43,471		—			43,471
Other current assets	137,167		40,594		—			177,761
Total current assets	1,794,148		2,893,174		(313,241		)	4,374,081
Finance receivables, net	—		4,994,693		—			4,994,693
Property, plant and equipment, net	820,634		55,369					876,003
Goodwill	64,131		—					64,131
Deferred income taxes	96,500		37,487		(999		)	132,988
Lease assets	48,513		6,792		—			55,305
Other long-term assets	154,687		19,149		(90,424		)	83,412
	$	2,978,613	$	8,006,664	$	(404,664	)	$	10,580,613
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	351,831	$	342,328	$	(313,241	)	$	380,918
Accrued liabilities	544,560		98,778		833			644,171
Short-term debt	—		1,192,925		—			1,192,925
Current portion of long-term debt, net	—		1,372,050		—			1,372,050
Total current liabilities	896,391		3,006,081		(312,408		)	3,590,064
Long-term debt, net	742,791		4,001,903		—			4,744,694
Lease liabilities	32,520		6,996		—			39,516
Pension liability	98,862		—		—			98,862
Postretirement healthcare liability	93,897		—		—			93,897
Other long-term liabilities	174,150		39,070		2,749			215,969
Commitments and contingencies (Note 17)
Shareholders’ equity	940,002		952,614		(95,005		)	1,797,611
	$	2,978,613	$	8,006,664	$	(404,664	)	$	10,580,613



	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 17)
Shareholders’ equity	914,990		953,349		(94,390		)	1,773,949
	$	2,779,316	$	8,102,733	$	(216,385	)	$	10,665,664



	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 17)
Shareholders’ equity	1,169,310		918,299		(91,660		)	1,995,949
	$	3,010,218	$	7,689,423	$	(422,020	)	$	10,277,621



	Three months ended March 31, 2019
	HDMC Entities			HDFS Entities		Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	129,414		$	43,453	$	(44,922	)	$	127,945
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	62,187			2,185		—			64,372
Amortization of deferred loan origination costs	—			18,968		—			18,968
Amortization of financing origination fees	167			2,027		—			2,194
Provision for long-term employee benefits	3,156			—		—			3,156
Employee benefit plan contributions and payments	(2,507		)	—		—			(2,507		)
Stock compensation expense	5,845			692		—			6,537
Net change in wholesale finance receivables related to sales	—			—		(237,569		)	(237,569		)
Provision for credit losses	—			34,491		—			34,491
Deferred income taxes	6,195			314		(528		)	5,981
Other, net	1,886			922		(77		)	2,731
Changes in current assets and liabilities:
Accounts receivable, net	(243,734		)	—		193,988			(49,746		)
Finance receivables - accrued interest and other	—			92		—			92
Inventories	(40,600		)	—		—			(40,600		)
Accounts payable and accrued liabilities	122,462			180,980		(179,467		)	123,975
Derivative instruments	834			33		—			867
Other	(41,339		)	18,997		(5,874		)	(28,216		)
Total adjustments	(125,448		)	259,701		(229,527		)	(95,274		)
Net cash provided by operating activities	3,966			303,154		(274,449		)	32,671



	Three months ended March 31, 2019
	HDMC Entities			HDFS Entities			Eliminations			Consolidated
Cash flows from investing activities:
Capital expenditures	(34,657		)	(598		)	—			(35,255		)
Origination of finance receivables	—			(1,691,416		)	840,044			(851,372		)
Collections on finance receivables	—			1,426,419			(610,595		)	815,824
Acquisition of business	(7,000		)	—			—			(7,000		)
Other	603			—			—			603
Net cash used by investing activities	(41,054		)	(265,595		)	229,449			(77,200		)
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			546,655			—			546,655
Repayments of medium-term notes	—			(750,000		)	—			(750,000		)
Repayments of securitization debt	—			(76,505		)	—			(76,505		)
Repayments of asset-backed commercial paper	—			(72,401		)	—			(72,401		)
Net increase in credit facilities and unsecured commercial paper	—			58,527			—			58,527
Dividends paid	(60,859		)	(45,000		)	45,000			(60,859		)
Purchase of common stock for treasury	(61,712		)	—			—			(61,712		)
Issuance of common stock under employee stock option plans	616			—			—			616
Net cash used by financing activities	(121,955		)	(338,724		)	45,000			(415,679		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,115		)	706			—			(409		)
Net decrease in cash, cash equivalents and restricted cash	$	(160,158	)	$	(300,459	)	$	—		$	(460,617	)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash—beginning of period	$	544,548		$	715,200		$	—		$	1,259,748
Net decrease in cash, cash equivalents and restricted cash	(160,158		)	(300,459		)	—			(460,617		)
Cash, cash equivalents and restricted cash—end of period	$	384,390		$	414,741		$	—		$	799,131



	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