QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
(State of organization) | (I.R.S. Employer Identification No.) | ||
(Address of principal executive offices) | (Zip code) | ||
Title of each class | Trading Symbol | Name of each exchange on which registered |
☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | |
Emerging growth company | |||
Part I | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II | ||
Item 1. | ||
Item 2. | ||
Item 6. | ||
Three months ended | Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and Related Products | $ | $ | $ | $ | |||||||||||
Financial Services | |||||||||||||||
Total revenue | |||||||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||
Financial Services interest expense | |||||||||||||||
Financial Services provision for credit losses | |||||||||||||||
Selling, administrative and engineering expense | |||||||||||||||
Restructuring expense | |||||||||||||||
Total costs and expenses | |||||||||||||||
Operating income | |||||||||||||||
Other income (expense), net | |||||||||||||||
Investment income | |||||||||||||||
Interest expense | |||||||||||||||
Income before provision for income taxes | |||||||||||||||
Provision for income taxes | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
Cash dividends per common share | $ | $ | $ | $ | |||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | |||||||||||
Derivative financial instruments | ( | ) | ( | ) | |||||||||||
Pension and postretirement benefit plans | |||||||||||||||
Total other comprehensive income, net of tax | |||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||
(Unaudited) | (Unaudited) | ||||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||
Marketable securities | |||||||||||
Accounts receivable, net | |||||||||||
Finance receivables, net | |||||||||||
Inventories | |||||||||||
Restricted cash | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Finance receivables, net | |||||||||||
Property, plant and equipment, net | |||||||||||
Prepaid pension costs | |||||||||||
Goodwill | |||||||||||
Deferred income taxes | |||||||||||
Lease assets | — | — | |||||||||
Other long-term assets | |||||||||||
$ | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | $ | ||||||||
Accrued liabilities | |||||||||||
Short-term debt | |||||||||||
Current portion of long-term debt, net | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Lease liabilities | — | — | |||||||||
Pension liabilities | |||||||||||
Postretirement healthcare liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Commitments and contingencies (Note 17) | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, none issued | |||||||||||
Common stock | |||||||||||
Additional paid-in-capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ( | ) | |||||
Treasury stock, at cost | ( | ) | ( | ) | ( | ) | |||||
Total shareholders’ equity | |||||||||||
$ | $ | $ | |||||||||
(Unaudited) | (Unaudited) | ||||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
Balances held by consolidated variable interest entities (Note 13) | |||||||||||
Current finance receivables, net | $ | $ | $ | ||||||||
Other assets | $ | $ | $ | ||||||||
Non-current finance receivables, net | $ | $ | $ | ||||||||
Restricted cash - current and non-current | $ | $ | $ | ||||||||
Current portion of long-term debt, net | $ | $ | $ | ||||||||
Long-term debt, net | $ | $ | $ | ||||||||
Six months ended | |||||||
June 30, 2019 | July 1, 2018 | ||||||
Net cash provided by operating activities (Note 8) | $ | $ | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | ( | ) | ( | ) | |||
Origination of finance receivables | ( | ) | ( | ) | |||
Collections on finance receivables | |||||||
Sales and redemptions of marketable securities | |||||||
Acquisition of business | ( | ) | |||||
Other | ( | ) | |||||
Net cash used by investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of medium-term notes | |||||||
Repayments of medium-term notes | ( | ) | ( | ) | |||
Proceeds from securitization debt | |||||||
Repayments of securitization debt | ( | ) | ( | ) | |||
Borrowings of asset-backed commercial paper | |||||||
Repayments of asset-backed commercial paper | ( | ) | ( | ) | |||
Net (decrease) increase in credit facilities and unsecured commercial paper | ( | ) | |||||
Dividends paid | ( | ) | ( | ) | |||
Purchase of common stock for treasury | ( | ) | ( | ) | |||
Issuance of common stock under employee stock option plans | |||||||
Net cash used by financing activities | ( | ) | ( | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ) | |||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | ( | ) | $ | |||
Cash, cash equivalents and restricted cash: | |||||||
Cash, cash equivalents and restricted cash—beginning of period | $ | $ | |||||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | ) | |||||
Cash, cash equivalents and restricted cash—end of period | $ | $ | |||||
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheet: | |||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash | |||||||
Restricted cash included in other long-term assets | |||||||
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows | $ | $ | |||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Balance | Total | ||||||||||||||||||||||
Issued Shares | Balance | ||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||
Total other comprehensive income, net of tax (Note 18) | — | — | — | — | — | ||||||||||||||||||||||
Dividends | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||
Total other comprehensive income, net of tax (Note 18) | — | — | — | — | — | ||||||||||||||||||||||
Dividends | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Balance | Total | ||||||||||||||||||||||
Issued Shares | Balance | ||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||
Total other comprehensive income, net of tax (Note 18) | — | — | — | — | — | ||||||||||||||||||||||
Dividends | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||
Cumulative effect of change in accounting | — | — | — | — | — | ||||||||||||||||||||||
Balance, April 1, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||
Total other comprehensive income, net of tax (Note 18) | — | — | — | — | — | ||||||||||||||||||||||
Dividends | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||
Balance, July 1, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||
Motorcycles and Related Products: | ||||||||||||||||
Motorcycles | $ | $ | $ | $ | ||||||||||||
Parts & Accessories | ||||||||||||||||
General Merchandise | ||||||||||||||||
Licensing | ||||||||||||||||
Other | ||||||||||||||||
Revenue from Motorcycles and Related Products | ||||||||||||||||
Financial Services: | ||||||||||||||||
Interest income | ||||||||||||||||
Securitization and servicing fee income | ||||||||||||||||
Other income | ||||||||||||||||
Revenue from Financial Services | ||||||||||||||||
Total revenue | $ | $ | $ | $ | ||||||||||||
June 30, 2019 | July 1, 2018 | |||||||
Balance, beginning of year | $ | $ | ||||||
Balance, end of period | ||||||||
Three months ended June 30, 2019 | |||||||||||||||||||||||
Manufacturing Optimization Plan | Reorganization Plan | ||||||||||||||||||||||
Employee Termination Benefits | Accelerated Depreciation | Other | Total | Employee Termination Benefits | Total | ||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Restructuring expense (benefit) | ( | ) | |||||||||||||||||||||
Utilized - cash | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Utilized - non cash | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Foreign currency changes | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Three months ended July 1, 2018 | |||||||||||||||||||||||
Manufacturing Optimization Plan | Reorganization Plan | ||||||||||||||||||||||
Employee Termination Benefits | Accelerated Depreciation | Other | Total | Employee Termination Benefits | Total | ||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Restructuring expense | ( | ) | |||||||||||||||||||||
Utilized - cash | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Utilized - non cash | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Foreign currency changes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||
Manufacturing Optimization Plan | Reorganization Plan | ||||||||||||||||||||||
Employee Termination Benefits | Accelerated Depreciation | Other | Total | Employee Termination Benefits | Total | ||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Restructuring expense | ( | ) | |||||||||||||||||||||
Utilized - cash | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Utilized - non cash | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Foreign currency changes | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Six months ended July 1, 2018 | |||||||||||||||||||||||
Manufacturing Optimization Plan | Reorganization Plan | ||||||||||||||||||||||
Employee Termination Benefits | Accelerated Depreciation | Other | Total | Employee Termination Benefits | Total | ||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Utilized - cash | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Utilized - non cash | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Foreign currency changes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Basic weighted-average shares outstanding | |||||||||||||||
Effect of dilutive securities - employee stock compensation plan | |||||||||||||||
Diluted weighted-average shares outstanding | |||||||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
Debt securities | $ | $ | $ | ||||||||
Mutual funds | |||||||||||
Total marketable securities | $ | $ | $ | ||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
Raw materials and work in process | $ | $ | $ | ||||||||
Motorcycle finished goods | |||||||||||
Parts & accessories and general merchandise | |||||||||||
Inventory at lower of FIFO cost or net realizable value | |||||||||||
Excess of FIFO over LIFO cost | ( | ) | ( | ) | ( | ) | |||||
Total inventories, net | $ | $ | $ | ||||||||
Six months ended | |||||||
June 30, 2019 | July 1, 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of intangibles | |||||||
Amortization of deferred loan origination costs | |||||||
Amortization of financing origination fees | |||||||
Provision for long-term employee benefits | |||||||
Employee benefit plan contributions and payments | ( | ) | ( | ) | |||
Stock compensation expense | |||||||
Net change in wholesale finance receivables related to sales | ( | ) | ( | ) | |||
Provision for credit losses | |||||||
Deferred income taxes | |||||||
Other, net | ( | ) | |||||
Changes in current assets and liabilities: | |||||||
Accounts receivable, net | ( | ) | ( | ) | |||
Finance receivables - accrued interest and other | ( | ) | |||||
Inventories | |||||||
Accounts payable and accrued liabilities | |||||||
Derivative instruments | ( | ) | |||||
Other | ( | ) | ( | ) | |||
Total adjustments | |||||||
Net cash provided by operating activities | $ | $ | |||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
Retail | $ | $ | $ | ||||||||
Wholesale | |||||||||||
Total finance receivables | |||||||||||
Allowance for credit losses | ( | ) | ( | ) | ( | ) | |||||
Finance receivables, net | $ | $ | $ | ||||||||
Three months ended June 30, 2019 | |||||||||||
Retail | Wholesale | Total | |||||||||
Balance, beginning of period | $ | $ | $ | ||||||||
Provision for credit losses | ( | ) | |||||||||
Charge-offs | ( | ) | ( | ) | |||||||
Recoveries | |||||||||||
Balance, end of period | $ | $ | $ | ||||||||
Three months ended July 1, 2018 | |||||||||||
Retail | Wholesale | Total | |||||||||
Balance, beginning of period | $ | $ | $ | ||||||||
Provision for credit losses | ( | ) | |||||||||
Charge-offs | ( | ) | ( | ) | |||||||
Recoveries | |||||||||||
Balance, end of period | $ | $ | $ | ||||||||
Six months ended June 30, 2019 | |||||||||||
Retail | Wholesale | Total | |||||||||
Balance, beginning of period | $ | $ | $ | ||||||||
Provision for credit losses | |||||||||||
Charge-offs | ( | ) | ( | ) | |||||||
Recoveries | |||||||||||
Balance, end of period | $ | $ | $ | ||||||||
Six months ended July 1, 2018 | |||||||||||
Retail | Wholesale | Total | |||||||||
Balance, beginning of period | $ | $ | $ | ||||||||
Provision for credit losses | |||||||||||
Charge-offs | ( | ) | ( | ) | |||||||
Recoveries | |||||||||||
Balance, end of period | $ | $ | $ | ||||||||
June 30, 2019 | |||||||||||
Retail | Wholesale | Total | |||||||||
Allowance for credit losses, ending balance: | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total allowance for credit losses | $ | $ | $ | ||||||||
Finance receivables, ending balance: | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total finance receivables | $ | $ | $ | ||||||||
December 31, 2018 | |||||||||||
Retail | Wholesale | Total | |||||||||
Allowance for credit losses, ending balance: | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total allowance for credit losses | $ | $ | $ | ||||||||
Finance receivables, ending balance: | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total finance receivables | $ | $ | $ | ||||||||
July 1, 2018 | |||||||||||
Retail | Wholesale | Total | |||||||||
Allowance for credit losses, ending balance: | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total allowance for credit losses | $ | $ | $ | ||||||||
Finance receivables, ending balance: | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total finance receivables | $ | $ | $ | ||||||||
July 1, 2018 | Three months ended July 1, 2018 | Six months ended July 1, 2018 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Wholesale: | |||||||||||||||||||||||||||
No related allowance recorded | $ | $ | $ | — | $ | $ | $ | $ | |||||||||||||||||||
Related allowance recorded | |||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total Finance Receivables | ||||||||||||||||||
Retail | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Wholesale | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total Finance Receivables | ||||||||||||||||||
Retail | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Wholesale | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||
July 1, 2018 | |||||||||||||||||||||||
Current | 31-60 Days Past Due | 61-90 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Total Finance Receivables | ||||||||||||||||||
Retail | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Wholesale | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
Prime | $ | $ | $ | ||||||||
Sub-prime | |||||||||||
Total | $ | $ | $ | ||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
Doubtful | $ | $ | $ | ||||||||
Substandard | |||||||||||
Special Mention | |||||||||||
Medium Risk | |||||||||||
Low Risk | |||||||||||
Total | $ | $ | $ | ||||||||
Derivatives Designated as Cash Flow Hedging Instruments Under ASC Topic 815 | ||||||||||||||||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | ||||||||||||||||||||||||||||||||||
Derivative | Notional Value | Other Current Assets | Accrued Liabil-ities | Notional Value | Other Current Assets | Accrued Liabil-ities | Notional Value | Other Current Assets | Accrued Liabil-ities | |||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||
Interest rate swaps | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments Under ASC Topic 815 | ||||||||||||||||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | ||||||||||||||||||||||||||||||||||
Derivative | Notional Value | Other Current Assets | Accrued Liabil-ities | Notional Value | Other Current Assets | Accrued Liabil-ities | Notional Value | Other Current Assets | Accrued Liabil-ities | |||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||
Interest rate cap | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Amount of Gain/(Loss) Recognized in OCI, before tax | Amount of Gain/(Loss) Reclassified from AOCL into Income | Location of Gain/(Loss) Reclassified from AOCL into Income | Total Statement of Income Amount for Line Items in which the Effects of Cash Flow Hedges are Recorded | |||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||||
Cash Flow Hedges | June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | Statement of Income line item | June 30, 2019 | July 1, 2018 | |||||||||||||||||||
Foreign currency contracts | $ | ( | ) | $ | $ | $ | Motorcycles cost of goods sold | $ | $ | |||||||||||||||||
Commodity contracts | ( | ) | ( | ) | ( | ) | Motorcycles cost of goods sold | $ | $ | |||||||||||||||||
Treasury rate locks | ( | ) | ( | ) | Interest expense | $ | $ | |||||||||||||||||||
Treasury rate locks | ( | ) | ( | ) | Financial Services interest expense | $ | $ | |||||||||||||||||||
Interest rate swaps | ( | ) | ( | ) | ( | ) | ( | ) | Financial Services interest expense | $ | $ | |||||||||||||||
Total | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
Amount of Gain/(Loss) Recognized in OCI, before tax | Amount of Gain/(Loss) Reclassified from AOCL into Income | Location of Gain/(Loss) Reclassified from AOCL into Income | Total Statement of Income Amount for Line Items in which the Effects of Cash Flow Hedges are Recorded | |||||||||||||||||||||||
Six months ended | Six months ended | |||||||||||||||||||||||||
Cash Flow Hedges | June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | Statement of Income line item | June 30, 2019 | July 1, 2018 | |||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | ( | ) | Motorcycles cost of goods sold | $ | $ | |||||||||||||||||
Commodity contracts | ( | ) | ( | ) | ( | ) | ( | ) | Motorcycles cost of goods sold | $ | $ | |||||||||||||||
Treasury rate locks | ( | ) | ( | ) | Interest expense | $ | $ | |||||||||||||||||||
Treasury rate locks | ( | ) | ( | ) | Financial Services interest expense | $ | $ | |||||||||||||||||||
Interest rate swaps | ( | ) | ( | ) | ( | ) | ( | ) | Financial Services Interest expense | $ | $ | |||||||||||||||
Total | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivative | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
Derivatives Not Designated as Hedges | June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||
Foreign currency contracts | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Commodity contracts | ( | ) | ||||||||||||||
Interest rate cap | ( | ) | ( | ) | ||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
June 30, 2019 | |||
Lease assets | $ | ||
Accrued liabilities | $ | ||
Lease liabilities | |||
$ | |||
Operating Leases | |||
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total present value of lease payments | |||
Less present value discount | |||
Total lease liability | $ | ||
Three months ended | Six months ended | ||||||
June 30, 2019 | June 30, 2019 | ||||||
Operating cash outflows for amounts included in the measurement of lease liabilities | $ | $ | |||||
Right-of-use assets obtained in exchange for lease obligations | $ | $ | |||||
June 30, 2019 | ||
Weighted average remaining lease term (in years) | ||
Weighted average discount rate | % | |
June 30, 2019 | December 31, 2018 | July 1, 2018 | ||||||||||
Unsecured commercial paper | $ | $ | $ | |||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||||||
Secured debt (Note 13) | |||||||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | $ | $ | ||||||||||||
Asset-backed U.S. commercial paper conduit facilities | |||||||||||||||
Asset-backed securitization debt | |||||||||||||||
Less: unamortized discount and debt issuance costs | ( | ) | ( | ) | ( | ) | |||||||||
Total secured debt | |||||||||||||||
Unsecured debt (at par value) | |||||||||||||||
Medium-term notes | |||||||||||||||
Due in 2019, issued January 2016 | % | ||||||||||||||
Due in 2019, issued March 2017 | LIBOR + 0.35% | ||||||||||||||
Due in 2019, issued September 2014 | % | ||||||||||||||
Due in 2020, issued February 2015 | % | ||||||||||||||
Due in 2020, issued May 2018 | LIBOR + 0.50% | ||||||||||||||
Due in 2020, issued March 2017 | % | ||||||||||||||
Due in 2021, issued January 2016 | % | ||||||||||||||
Due in 2021, issued November 2018 | LIBOR + 0.94% | ||||||||||||||
Due in 2021, issued May 2018 | % | ||||||||||||||
Due in 2022, issued February 2019 | % | ||||||||||||||
Due in 2022, issued June 2017 | % | ||||||||||||||
Due in 2023, issued February 2018 | % | ||||||||||||||
Less: unamortized discount and debt issuance costs | ( | ) | ( | ) | ( | ) | |||||||||
Total medium-term notes | |||||||||||||||
Senior notes | |||||||||||||||
Due in 2025, issued July 2015 | % | ||||||||||||||
Due in 2045, issued July 2015 | % | ||||||||||||||
Less: unamortized discount and debt issuance costs | ( | ) | ( | ) | ( | ) | |||||||||
Total senior notes | |||||||||||||||
Total unsecured debt | |||||||||||||||
Gross long-term debt | |||||||||||||||
Less: current portion of long-term debt, net of unamortized discount and debt issuance costs | ( | ) | ( | ) | ( | ) | |||||||||
Total long-term debt | $ | $ | $ | ||||||||||||
June 30, 2019 | |||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||
On-balance sheet assets and liabilities | |||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||
Asset-backed securitizations | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | ( | ) | |||||||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | ( | ) | |||||||||||||||||||||
Total on-balance sheet assets and liabilities | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
December 31, 2018 | |||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||
On-balance sheet assets and liabilities | |||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||
Asset-backed securitizations | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | ( | ) | |||||||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | ( | ) | |||||||||||||||||||||
Total on-balance sheet assets and liabilities | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
July 1, 2018 | |||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt | ||||||||||||||||||
On-balance sheet assets and liabilities | |||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||
Asset-backed securitizations | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | ( | ) | |||||||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | ( | ) | |||||||||||||||||||||
Total on-balance sheet assets and liabilities | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
2019 | 2018 | ||||||||||||||
Transfers | Proceeds | Transfers | Proceeds | ||||||||||||
First quarter | $ | $ | $ | $ | |||||||||||
Second quarter | |||||||||||||||
$ | $ | $ | $ | ||||||||||||
2019 | 2018 | ||||||||||||||
Transfers | Proceeds | Transfers | Proceeds | ||||||||||||
First quarter | $ | $ | $ | $ | |||||||||||
Second quarter | |||||||||||||||
$ | $ | $ | $ | ||||||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
On-balance sheet retail motorcycle finance receivables | $ | $ | $ | ||||||||
Off-balance sheet retail motorcycle finance receivables | |||||||||||
Total serviced retail motorcycle finance receivables | $ | $ | $ | ||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||
On-balance sheet retail motorcycle finance receivables | $ | $ | $ | ||||||||
Off-balance sheet retail motorcycle finance receivables | |||||||||||
Total serviced retail motorcycle finance receivables | $ | $ | $ | ||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||
On-balance sheet retail motorcycle finance receivables | $ | $ | $ | $ | |||||||||||
Off-balance sheet retail motorcycle finance receivables | |||||||||||||||
Total serviced retail motorcycle finance receivables | $ | $ | $ | $ | |||||||||||
June 30, 2019 | |||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | |||||||||
Assets: | |||||||||||
Cash equivalents | $ | $ | $ | ||||||||
Marketable securities | |||||||||||
Derivatives | |||||||||||
Total | $ | $ | $ | ||||||||
Liabilities: | |||||||||||
Derivatives | $ | $ | $ | ||||||||
December 31, 2018 | |||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | |||||||||
Assets: | |||||||||||
Cash equivalents | $ | $ | $ | ||||||||
Marketable securities | |||||||||||
Derivatives | |||||||||||
Total | $ | $ | $ | ||||||||
Liabilities: | |||||||||||
Derivatives | $ | $ | $ | ||||||||
July 1, 2018 | |||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | |||||||||
Assets: | |||||||||||
Cash equivalents | $ | $ | $ | ||||||||
Marketable securities | |||||||||||
Derivatives | |||||||||||
Total | $ | $ | $ | ||||||||
Liabilities: | |||||||||||
Derivatives | $ | $ | $ | ||||||||
June 30, 2019 | December 31, 2018 | July 1, 2018 | |||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Finance receivables, net | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Unsecured commercial paper | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Medium-term notes | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Senior unsecured notes | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Asset-backed securitization debt | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||
Warranties issued during the period | |||||||||||||||
Settlements made during the period | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Recalls and changes to pre-existing warranty liabilities | ( | ) | ( | ) | ( | ) | |||||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||
Pension and SERPA Benefits: | |||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of unrecognized: | |||||||||||||||
Prior service credit | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net loss | |||||||||||||||
Curtailment loss | |||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | |||||||||||
Postretirement Healthcare Benefits: | |||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of unrecognized: | |||||||||||||||
Prior service credit | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net loss | |||||||||||||||
Special retirement benefits | |||||||||||||||
Curtailment gain | ( | ) | ( | ) | |||||||||||
Net periodic benefit cost | $ | $ | $ | $ | |||||||||||
Three months ended June 30, 2019 | ||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | |||||||||||||
Balance, beginning of period | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||||||
Income tax benefit | ||||||||||||||||
Net other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||||||
Reclassifications: | ||||||||||||||||
Net (gains) losses on derivative instruments | — | ( | ) | — | ( | ) | ||||||||||
Prior service credits(a) | — | — | ( | ) | ( | ) | ||||||||||
Actuarial losses(a) | — | — | ||||||||||||||
Total reclassifications before tax | ( | ) | ||||||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | ||||||||||||
Net reclassifications | ( | ) | ||||||||||||||
Other comprehensive income (loss) | ( | ) | ||||||||||||||
Balance, end of period | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Three months ended July 1, 2018 | ||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | |||||||||||||
Balance, beginning of period | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive (loss) income before reclassifications | ( | ) | ||||||||||||||
Income tax expense | ( | ) | ( | ) | ||||||||||||
Net other comprehensive (loss) income before reclassifications | ( | ) | ( | ) | ||||||||||||
Reclassifications: | ||||||||||||||||
Net (gains) losses on derivative instruments | — | ( | ) | — | ( | ) | ||||||||||
Prior service credits(a) | — | — | ( | ) | ( | ) | ||||||||||
Actuarial losses(a) | — | — | ||||||||||||||
Total reclassifications before tax | ( | ) | ||||||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | ||||||||||||
Net reclassifications | ( | ) | ||||||||||||||
Other comprehensive (loss) income | ( | ) | ||||||||||||||
Balance, end of period | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
Six months ended June 30, 2019 | ||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | |||||||||||||
Balance, beginning of period | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||||||
Income tax (expense) benefit | ( | ) | ||||||||||||||
Net other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||||||
Reclassifications: | ||||||||||||||||
Net (gains) losses on derivative instruments | — | ( | ) | — | ( | ) | ||||||||||
Prior service credits(a) | — | — | ( | ) | ( | ) | ||||||||||
Actuarial losses(a) | — | — | ||||||||||||||
Total reclassifications before tax | ( | ) | ||||||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | ||||||||||||
Net reclassifications | ( | ) | ||||||||||||||
Other comprehensive income (loss) | ( | ) | ||||||||||||||
Balance, end of period | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Six months ended July 1, 2018 | ||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | |||||||||||||
Balance, beginning of period | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive (loss) income before reclassifications | ( | ) | ||||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ||||||||||
Net other comprehensive (loss) income before reclassifications | ( | ) | ||||||||||||||
Reclassifications: | ||||||||||||||||
Net (gains) losses on derivative instruments | — | — | ||||||||||||||
Prior service credits(a) | — | — | ( | ) | ( | ) | ||||||||||
Actuarial losses(a) | — | — | ||||||||||||||
Total reclassifications before tax | ||||||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ||||||||||
Net reclassifications | ||||||||||||||||
Other comprehensive (loss) income | ( | ) | ||||||||||||||
Balance, end of period | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
(a) | Amounts reclassified are included in the computation of net periodic benefit cost; refer to Note 16 for information related to pension and postretirement benefit plans |
Three months ended | Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||
Motorcycles and Related Products: | |||||||||||||||
Motorcycles revenue | $ | $ | $ | $ | |||||||||||
Gross profit | |||||||||||||||
Selling, administrative and engineering expense | |||||||||||||||
Restructuring expense | |||||||||||||||
Operating income from Motorcycles | |||||||||||||||
Financial Services: | |||||||||||||||
Financial Services revenue | |||||||||||||||
Financial Services expense | |||||||||||||||
Operating income from Financial Services | |||||||||||||||
Operating income | $ | $ | $ | $ | |||||||||||
Three months ended June 30, 2019 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and Related Products | $ | $ | $ | ( | ) | $ | |||||||||
Financial Services | |||||||||||||||
Total revenue | ( | ) | |||||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||
Financial Services interest expense | |||||||||||||||
Financial Services provision for credit losses | |||||||||||||||
Selling, administrative and engineering expense | ( | ) | |||||||||||||
Restructuring expense | |||||||||||||||
Total costs and expenses | ( | ) | |||||||||||||
Operating income | ( | ) | |||||||||||||
Other income (expense), net | |||||||||||||||
Investment income | ( | ) | |||||||||||||
Interest expense | |||||||||||||||
Income before provision for income taxes | ( | ) | |||||||||||||
Provision for income taxes | |||||||||||||||
Net income | $ | $ | $ | ( | ) | $ | |||||||||
Six months ended June 30, 2019 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and Related Products | $ | $ | $ | ( | ) | $ | |||||||||
Financial Services | |||||||||||||||
Total revenue | ( | ) | |||||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||
Financial Services interest expense | |||||||||||||||
Financial Services provision for credit losses | |||||||||||||||
Selling, administrative and engineering expense | ( | ) | |||||||||||||
Restructuring expense | |||||||||||||||
Total costs and expenses | ( | ) | |||||||||||||
Operating income | |||||||||||||||
Other income (expense), net | |||||||||||||||
Investment income | ( | ) | |||||||||||||
Interest expense | |||||||||||||||
Income before provision for income taxes | ( | ) | |||||||||||||
Provision for income taxes | |||||||||||||||
Net income | $ | $ | $ | ( | ) | $ | |||||||||
Three months ended July 1, 2018 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and Related Products | $ | $ | $ | ( | ) | $ | |||||||||
Financial Services | ( | ) | |||||||||||||
Total revenue | ( | ) | |||||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||
Financial Services interest expense | |||||||||||||||
Financial Services provision for credit losses | |||||||||||||||
Selling, administrative and engineering expense | ( | ) | |||||||||||||
Restructuring expense | |||||||||||||||
Total costs and expenses | ( | ) | |||||||||||||
Operating income | ( | ) | |||||||||||||
Other income (expense), net | |||||||||||||||
Investment income | |||||||||||||||
Interest expense | |||||||||||||||
Income before provision for income taxes | ( | ) | |||||||||||||
Provision for income taxes | |||||||||||||||
Net income | $ | $ | $ | ( | ) | $ | |||||||||
Six months ended July 1, 2018 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
Revenue: | |||||||||||||||
Motorcycles and Related Products | $ | $ | $ | ( | ) | $ | |||||||||
Financial Services | ( | ) | |||||||||||||
Total revenue | ( | ) | |||||||||||||
Costs and expenses: | |||||||||||||||
Motorcycles and Related Products cost of goods sold | |||||||||||||||
Financial Services interest expense | |||||||||||||||
Financial Services provision for credit losses | |||||||||||||||
Selling, administrative and engineering expense | ( | ) | |||||||||||||
Restructuring expense | |||||||||||||||
Total costs and expenses | ( | ) | |||||||||||||
Operating income | ( | ) | |||||||||||||
Other income (expense), net | |||||||||||||||
Investment income | ( | ) | |||||||||||||
Interest expense | |||||||||||||||
Income before provision for income taxes | ( | ) | |||||||||||||
Provision for income taxes | |||||||||||||||
Net income | $ | $ | $ | ( | ) | $ | |||||||||
June 30, 2019 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||
Accounts receivable, net | ( | ) | |||||||||||||
Finance receivables, net | |||||||||||||||
Inventories | |||||||||||||||
Restricted cash | |||||||||||||||
Other current assets | |||||||||||||||
Total current assets | ( | ) | |||||||||||||
Finance receivables, net | |||||||||||||||
Property, plant and equipment, net | |||||||||||||||
Goodwill | |||||||||||||||
Deferred income taxes | ( | ) | |||||||||||||
Lease assets | |||||||||||||||
Other long-term assets | ( | ) | |||||||||||||
$ | $ | $ | ( | ) | $ | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ | $ | $ | ( | ) | $ | |||||||||
Accrued liabilities | |||||||||||||||
Short-term debt | |||||||||||||||
Current portion of long-term debt, net | |||||||||||||||
Total current liabilities | ( | ) | |||||||||||||
Long-term debt, net | |||||||||||||||
Lease liabilities | |||||||||||||||
Pension liability | |||||||||||||||
Postretirement healthcare liability | |||||||||||||||
Other long-term liabilities | |||||||||||||||
Commitments and contingencies (Note 17) | |||||||||||||||
Shareholders’ equity | ( | ) | |||||||||||||
$ | $ | $ | ( | ) | $ | ||||||||||
December 31, 2018 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||
Marketable securities | |||||||||||||||
Accounts receivable, net | ( | ) | |||||||||||||
Finance receivables, net | |||||||||||||||
Inventories | |||||||||||||||
Restricted cash | |||||||||||||||
Other current assets | ( | ) | |||||||||||||
Total current assets | ( | ) | |||||||||||||
Finance receivables, net | |||||||||||||||
Property, plant and equipment, net | |||||||||||||||
Goodwill | |||||||||||||||
Deferred income taxes | ( | ) | |||||||||||||
Other long-term assets | ( | ) | |||||||||||||
$ | $ | $ | ( | ) | $ | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ | $ | $ | ( | ) | $ | |||||||||
Accrued liabilities | ( | ) | |||||||||||||
Short-term debt | |||||||||||||||
Current portion of long-term debt, net | |||||||||||||||
Total current liabilities | ( | ) | |||||||||||||
Long-term debt, net | |||||||||||||||
Pension liability | |||||||||||||||
Postretirement healthcare liability | |||||||||||||||
Other long-term liabilities | |||||||||||||||
Commitments and contingencies (Note 17) | |||||||||||||||
Shareholders’ equity | ( | ) | |||||||||||||
$ | $ | $ | ( | ) | $ | ||||||||||
July 1, 2018 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||
Accounts receivable, net | ( | ) | |||||||||||||
Finance receivables, net | |||||||||||||||
Inventories | |||||||||||||||
Restricted cash | |||||||||||||||
Other current assets | |||||||||||||||
Total current assets | ( | ) | |||||||||||||
Finance receivables, net | |||||||||||||||
Property, plant and equipment, net | |||||||||||||||
Prepaid pension costs | |||||||||||||||
Goodwill | |||||||||||||||
Deferred income taxes | ( | ) | |||||||||||||
Other long-term assets | ( | ) | |||||||||||||
$ | $ | $ | ( | ) | $ | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ | $ | $ | ( | ) | $ | |||||||||
Accrued liabilities | |||||||||||||||
Short-term debt | |||||||||||||||
Current portion of long-term debt, net | |||||||||||||||
Total current liabilities | ( | ) | |||||||||||||
Long-term debt, net | |||||||||||||||
Pension liability | |||||||||||||||
Postretirement healthcare liability | |||||||||||||||
Other long-term liabilities | |||||||||||||||
Commitments and contingencies (Note 17) | |||||||||||||||
Shareholders’ equity | ( | ) | |||||||||||||
$ | $ | $ | ( | ) | $ | ||||||||||
Six months ended June 30, 2019 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | $ | $ | ( | ) | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization of intangibles | |||||||||||||||
Amortization of deferred loan origination costs | |||||||||||||||
Amortization of financing origination fees | |||||||||||||||
Provision for long-term employee benefits | |||||||||||||||
Employee benefit plan contributions and payments | ( | ) | ( | ) | |||||||||||
Stock compensation expense | |||||||||||||||
Net change in wholesale finance receivables related to sales | ( | ) | ( | ) | |||||||||||
Provision for credit losses | |||||||||||||||
Deferred income taxes | ( | ) | ( | ) | |||||||||||
Other, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Changes in current assets and liabilities: | |||||||||||||||
Accounts receivable, net | ( | ) | ( | ) | |||||||||||
Finance receivables - accrued interest and other | ( | ) | ( | ) | |||||||||||
Inventories | |||||||||||||||
Accounts payable and accrued liabilities | ( | ) | |||||||||||||
Derivative instruments | |||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||
Total adjustments | ( | ) | ( | ) | |||||||||||
Net cash provided by operating activities | ( | ) | |||||||||||||
Six months ended June 30, 2019 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | ( | ) | ( | ) | ( | ) | |||||||||
Origination of finance receivables | ( | ) | ( | ) | |||||||||||
Collections on finance receivables | ( | ) | |||||||||||||
Sales and redemptions of marketable securities | |||||||||||||||
Acquisition of business | ( | ) | ( | ) | |||||||||||
Other | |||||||||||||||
Net cash used by investing activities | ( | ) | ( | ) | ( | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of medium-term notes | |||||||||||||||
Repayments of medium-term notes | ( | ) | ( | ) | |||||||||||
Proceeds from securitization debt | |||||||||||||||
Repayments of securitization debt | ( | ) | ( | ) | |||||||||||
Borrowings of asset-backed commercial paper | |||||||||||||||
Repayments of asset-backed commercial paper | ( | ) | ( | ) | |||||||||||
Net decrease in credit facilities and unsecured commercial paper | ( | ) | ( | ) | |||||||||||
Dividends paid | ( | ) | ( | ) | ( | ) | |||||||||
Purchase of common stock for treasury | ( | ) | ( | ) | |||||||||||
Issuance of common stock under employee stock option plans | |||||||||||||||
Net cash used by financing activities | ( | ) | ( | ) | ( | ) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | |||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||
Cash, cash equivalents and restricted cash—beginning of period | $ | $ | $ | $ | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||||||||||
Cash, cash equivalents and restricted cash—end of period | $ | $ | $ | $ | |||||||||||
Six months ended July 1, 2018 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | $ | $ | ( | ) | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization of intangibles | |||||||||||||||
Amortization of deferred loan origination costs | |||||||||||||||
Amortization of financing origination fees | |||||||||||||||
Provision for long-term employee benefits | |||||||||||||||
Employee benefit plan contributions and payments | ( | ) | ( | ) | |||||||||||
Stock compensation expense | |||||||||||||||
Net change in wholesale finance receivables related to sales | ( | ) | ( | ) | |||||||||||
Provision for credit losses | |||||||||||||||
Deferred income taxes | ( | ) | ( | ) | |||||||||||
Other, net | ( | ) | |||||||||||||
Changes in current assets and liabilities: | |||||||||||||||
Accounts receivable, net | ( | ) | ( | ) | |||||||||||
Finance receivables - accrued interest and other | |||||||||||||||
Inventories | |||||||||||||||
Accounts payable and accrued liabilities | ( | ) | |||||||||||||
Derivative instruments | ( | ) | ( | ) | |||||||||||
Other | ( | ) | ( | ) | |||||||||||
Total adjustments | ( | ) | |||||||||||||
Net cash provided by operating activities | ( | ) | |||||||||||||
Six months ended July 1, 2018 | |||||||||||||||
HDMC Entities | HDFS Entities | Eliminations | Consolidated | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | ( | ) | ( | ) | ( | ) | |||||||||
Origination of finance receivables | ( | ) | ( | ) | |||||||||||
Collections on finance receivables | ( | ) | |||||||||||||
Other | ( | ) | ( | ) | |||||||||||
Net cash used by investing activities | ( | ) | ( | ) | ( | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of medium-term notes | |||||||||||||||
Repayments of medium-term notes | ( | ) | ( | ) | |||||||||||
Repayments of securitization debt | ( | ) | ( | ) | |||||||||||
Borrowings of asset-backed commercial paper | |||||||||||||||
Repayments of asset-backed commercial paper | ( | ) | ( | ) | |||||||||||
Net increase in credit facilities and unsecured commercial paper | |||||||||||||||
Dividends paid | ( | ) | ( | ) | ( | ) | |||||||||
Purchase of common stock for treasury | ( | ) | ( | ) | |||||||||||
Issuance of common stock under employee stock option plans | |||||||||||||||
Net cash (used by) provided by financing activities | ( | ) | ( | ) | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ) | ( | ) | ( | ) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | $ | ( | ) | $ | $ | |||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||
Cash, cash equivalents and restricted cash—beginning of period | $ | $ | $ | $ | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ) | |||||||||||||
Cash, cash equivalents and restricted cash—end of period | $ | $ | $ | $ | |||||||||||
• | New Products - keep current riders engaged and inspire new riders by extending heavyweight leadership and expanding into new markets and segments |
• | Broader Access - meet customers where they are and how they want to engage with a multi-channel retail experience |
• | Stronger Dealers - drive a performance framework to improve dealer financial strength and the Harley-Davidson customer experience |
2018 Actual | 2019 Estimated | 2020 Estimated | Total | ||||
Manufacturing Optimization Plan | |||||||
Cost related to temporary inefficiencies | $12.9 | $10 - $15 | n/a | $23 - $28 | |||
Restructuring expenses | $89.5 | $30 - $35 | n/a | $119 - $124 | |||
$102.4 | $40 - $50 | $142 - $152 | |||||
% cash | 70% | 70% | 70% | ||||
Reorganization Plan | |||||||
Restructuring expenses | $3.9 | $- | $4 | ||||
% cash | 100% | 100% | 100% | ||||
Annual cash savings | 2019 Estimated | 2020 Estimated | Annual Ongoing | ||||
Manufacturing Optimization Plan | $25 - $30 | $45 - $50 | $65 - $75 | ||||
Reorganization Plan | $7 | $7 | $7 | ||||
Three months ended | ||||||||||||||
(in thousands, except earnings per share) | June 30, 2019 | July 1, 2018 | (Decrease) Increase | % Change | ||||||||||
Operating income from Motorcycles and Related Products | $ | 180,728 | $ | 243,406 | $ | (62,678 | ) | (25.8 | )% | |||||
Operating income from Financial Services | 75,529 | 80,541 | (5,012 | ) | (6.2 | ) | ||||||||
Operating income | 256,257 | 323,947 | (67,690 | ) | (20.9 | ) | ||||||||
Other income (expense), net | 4,037 | 645 | 3,392 | 525.9 | ||||||||||
Investment income | 3,571 | 2,533 | 1,038 | 41.0 | ||||||||||
Interest expense | 7,784 | 7,728 | 56 | 0.7 | ||||||||||
Income before provision for income taxes | 256,081 | 319,397 | (63,316 | ) | (19.8 | ) | ||||||||
Provision for income taxes | 60,450 | 77,059 | (16,609 | ) | (21.6 | ) | ||||||||
Net income | $ | 195,631 | $ | 242,338 | $ | (46,707 | ) | (19.3 | )% | |||||
Diluted earnings per share | $ | 1.23 | $ | 1.45 | $ | (0.22 | ) | (15.2 | )% | |||||
Three months ended | |||||||||||
June 30, 2019 | June 30, 2018 | (Decrease) Increase | % Change | ||||||||
United States | 42,762 | 46,490 | (3,728 | ) | (8.0 | )% | |||||
Europe(b) | 13,703 | 16,012 | (2,309 | ) | (14.4 | ) | |||||
EMEA - Other | 1,916 | 1,832 | 84 | 4.6 | |||||||
Total EMEA | 15,619 | 17,844 | (2,225 | ) | (12.5 | ) | |||||
Asia Pacific(c) | 4,544 | 5,096 | (552 | ) | (10.8 | ) | |||||
Asia Pacific - Other | 3,126 | 2,622 | 504 | 19.2 | |||||||
Total Asia Pacific | 7,670 | 7,718 | (48 | ) | (0.6 | ) | |||||
Latin America | 2,516 | 2,569 | (53 | ) | (2.1 | ) | |||||
Canada | 3,279 | 3,807 | (528 | ) | (13.9 | ) | |||||
Total International Retail Sales | 29,084 | 31,938 | (2,854 | ) | (8.9 | ) | |||||
Total Worldwide Retail Sales | 71,846 | 78,428 | (6,582 | ) | (8.4 | )% | |||||
(a) | Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and the Company does not regularly verify the information that its dealers supply. This information is subject to revision. |
(b) | Includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. |
(c) | Includes Japan, Australia, New Zealand and Korea. |
Three months ended | |||||||||||||||||
June 30, 2019 | July 1, 2018 | Unit | Unit | ||||||||||||||
Units | Mix % | Units | Mix % | Decrease | % Change | ||||||||||||
United States | 41,404 | 60.2 | % | 43,047 | 59.3 | % | (1,643 | ) | (3.8 | )% | |||||||
International | 27,353 | 39.8 | % | 29,546 | 40.7 | % | (2,193 | ) | (7.4 | ) | |||||||
Harley-Davidson motorcycle units | 68,757 | 100.0 | % | 72,593 | 100.0 | % | (3,836 | ) | (5.3 | )% | |||||||
Touring motorcycle units | 30,923 | 45.0 | % | 31,064 | 42.8 | % | (141 | ) | (0.5 | )% | |||||||
Cruiser motorcycle units | 22,691 | 33.0 | % | 24,348 | 33.5 | % | (1,657 | ) | (6.8 | ) | |||||||
Sportster® / Street motorcycle units | 15,143 | 22.0 | % | 17,181 | 23.7 | % | (2,038 | ) | (11.9 | ) | |||||||
Harley-Davidson motorcycle units | 68,757 | 100.0 | % | 72,593 | 100.0 | % | (3,836 | ) | (5.3 | )% | |||||||
Three months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | (Decrease) Increase | % Change | |||||||||||
Revenue: | ||||||||||||||
Motorcycles | $ | 1,128,063 | $ | 1,201,453 | $ | (73,390 | ) | (6.1 | )% | |||||
Parts & Accessories | 221,258 | 231,014 | (9,756 | ) | (4.2 | ) | ||||||||
General Merchandise | 64,644 | 68,653 | (4,009 | ) | (5.8 | ) | ||||||||
Licensing | 9,911 | 10,407 | (496 | ) | (4.8 | ) | ||||||||
Other | 10,128 | 13,594 | (3,466 | ) | (25.5 | ) | ||||||||
Total revenue | 1,434,004 | 1,525,121 | (91,117 | ) | (6.0 | ) | ||||||||
Cost of goods sold | 979,266 | 993,036 | (13,770 | ) | (1.4 | ) | ||||||||
Gross profit | 454,738 | 532,085 | (77,347 | ) | (14.5 | ) | ||||||||
Operating expenses: | ||||||||||||||
Selling & administrative expense | 208,925 | 224,310 | (15,385 | ) | (6.9 | ) | ||||||||
Engineering expense | 54,662 | 51,999 | 2,663 | 5.1 | ||||||||||
Restructuring expense | 10,423 | 12,370 | (1,947 | ) | (15.7 | ) | ||||||||
Operating expense | 274,010 | 288,679 | (14,669 | ) | (5.1 | ) | ||||||||
Operating income from Motorcycles | $ | 180,728 | $ | 243,406 | $ | (62,678 | ) | (25.8 | )% | |||||
Net Revenue | Cost of Goods Sold | Gross Profit | |||||||||
Three months ended July 1, 2018 | $ | 1,525.1 | $ | 993.0 | $ | 532.1 | |||||
Volume | (73.4 | ) | (48.7 | ) | (24.7 | ) | |||||
Price, net of related cost | 22.1 | 8.0 | 14.1 | ||||||||
Foreign currency exchange rates and hedging | (23.9 | ) | (24.7 | ) | 0.8 | ||||||
Shipment mix | (15.9 | ) | (1.6 | ) | (14.3 | ) | |||||
Raw material prices | — | (1.2 | ) | 1.2 | |||||||
Manufacturing and other costs | — | 54.5 | (54.5 | ) | |||||||
Total | (91.1 | ) | (13.7 | ) | (77.4 | ) | |||||
Three months ended June 30, 2019 | $ | 1,434.0 | $ | 979.3 | $ | 454.7 | |||||
• | The decrease in volume was due to lower wholesale motorcycle shipments and lower P&A and General Merchandise sales. |
• | On average, wholesale prices for motorcycles shipped in the current period were higher than in the same period last year resulting in a favorable impact on revenue. The positive impact on revenue was partially offset by increased costs related to the additional content added to motorcycles shipped in the current period as compared to the same period last year. |
• | Revenue was adversely impacted by weaker weighted-average foreign currency exchange rates, relative to the U.S. dollar, as compared to the same period last year. The unfavorable revenue impact was more than offset by favorable net foreign currency gains related to foreign currency hedging and balance sheet remeasurements, as compared to the prior year second quarter. |
• | Revenue and gross profit were negatively impacted by a shift in the mix of models within motorcycle families. Additionally, unfavorable mix within P&A and General Merchandise contributed to negative impact. |
• | Raw material prices were favorable primarily due to decreased metal costs. |
• | Manufacturing and other costs were negatively impacted by incremental tariff costs, lower fixed cost absorption and temporary inefficiencies associated with the Manufacturing Optimization Plan. The Company incurred incremental tariff |
Three months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | Increase (Decrease) | % Change | |||||||||||
Revenue: | ||||||||||||||
Interest income | $ | 167,077 | $ | 158,639 | $ | 8,438 | 5.3 | % | ||||||
Other income | 31,375 | 29,159 | 2,216 | 7.6 | ||||||||||
Securitization and servicing fee income | 163 | 304 | (141 | ) | (46.4 | ) | ||||||||
Total revenue | 198,615 | 188,102 | 10,513 | 5.6 | ||||||||||
Interest expense | 52,673 | 51,943 | 730 | 1.4 | ||||||||||
Provision for credit losses | 26,383 | 18,880 | 7,503 | 39.7 | ||||||||||
Operating expense | 44,030 | 36,738 | 7,292 | 19.8 | ||||||||||
Financial Services expense | 123,086 | 107,561 | 15,525 | 14.4 | ||||||||||
Operating income from Financial Services | $ | 75,529 | $ | 80,541 | $ | (5,012 | ) | (6.2 | )% | |||||
Three months ended | |||||||
June 30, 2019 | July 1, 2018 | ||||||
Balance, beginning of period | $ | 190,872 | $ | 190,350 | |||
Provision for credit losses | 26,383 | 18,880 | |||||
Charge-offs, net of recoveries | (22,259 | ) | (15,300 | ) | |||
Balance, end of period | $ | 194,996 | $ | 193,930 | |||
Six months ended | ||||||||||||||
(in thousands, except earnings per share) | June 30, 2019 | July 1, 2018 | (Decrease) Increase | % Change | ||||||||||
Operating income from Motorcycles and Related Products | $ | 289,109 | $ | 416,244 | $ | (127,135 | ) | (30.5 | )% | |||||
Operating income from Financial Services | 134,260 | 144,120 | (9,860 | ) | (6.8 | ) | ||||||||
Operating income | 423,369 | 560,364 | (136,995 | ) | (24.4 | ) | ||||||||
Other income (expense), net | 8,697 | 865 | 7,832 | 905.4 | ||||||||||
Investment income | 9,929 | 3,736 | 6,193 | 165.8 | ||||||||||
Interest expense | 15,515 | 15,418 | 97 | 0.6 | ||||||||||
Income before provision for income taxes | 426,480 | 549,547 | (123,067 | ) | (22.4 | ) | ||||||||
Provision for income taxes | 102,904 | 132,446 | (29,542 | ) | (22.3 | ) | ||||||||
Net income | $ | 323,576 | $ | 417,101 | $ | (93,525 | ) | (22.4 | )% | |||||
Diluted earnings per share | $ | 2.03 | $ | 2.48 | $ | (0.45 | ) | (18.1 | )% | |||||
Six months ended | |||||||||||
June 30, 2019 | June 30, 2018 | (Decrease) Increase | % Change | ||||||||
United States | 70,853 | 75,799 | (4,946 | ) | (6.5 | )% | |||||
Europe(b) | 23,211 | 25,728 | (2,517 | ) | (9.8 | ) | |||||
EMEA - Other | 3,205 | 2,978 | 227 | 7.6 | |||||||
Total EMEA | 26,416 | 28,706 | (2,290 | ) | (8.0 | ) | |||||
Asia Pacific(c) | 8,330 | 9,548 | (1,218 | ) | (12.8 | ) | |||||
Asia Pacific - Other | 5,414 | 4,499 | 915 | 20.3 | |||||||
Total Asia Pacific | 13,744 | 14,047 | (303 | ) | (2.2 | ) | |||||
Latin America | 4,757 | 5,075 | (318 | ) | (6.3 | ) | |||||
Canada | 5,227 | 5,887 | (660 | ) | (11.2 | ) | |||||
Total International Retail Sales | 50,144 | 53,715 | (3,571 | ) | (6.6 | ) | |||||
Total Worldwide Retail Sales | 120,997 | 129,514 | (8,517 | ) | (6.6 | )% | |||||
(a) | Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and the Company does not regularly verify the information that its dealers supply. This information is subject to revision. |
(b) | Includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. |
(c) | Includes Japan, Australia, New Zealand and Korea. |
Six months ended | |||||||||||
June 30, 2019 | June 30, 2018 | (Decrease) Increase | % Change | ||||||||
United States(b) | 144,623 | 151,989 | (7,366 | ) | (4.8 | )% | |||||
Europe(c) | 267,212 | 252,656 | 14,556 | 5.8 | % | ||||||
(a) | Data includes on-road 601+cc models. On-road 601+cc models include dual purpose models, three-wheeled motorcycles and autocycles. Registration data for Harley-Davidson Street® 500 motorcycles is not included in this table. |
(b) | United States industry data is derived from information provided by Motorcycle Industry Council (MIC). This third-party data is subject to revision and update. |
(c) | Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle registration data includes 601+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency. This third-party data is subject to revision and update. |
Six months ended | |||||||||||||||||
June 30, 2019 | July 1, 2018 | ||||||||||||||||
Units | Mix % | Units | Mix % | Unit Decrease | Unit % Change | ||||||||||||
United States | 75,909 | 59.5 | % | 81,844 | 59.9 | % | (5,935 | ) | (7.3 | )% | |||||||
International | 51,739 | 40.5 | % | 54,693 | 40.1 | % | (2,954 | ) | (5.4 | ) | |||||||
Harley-Davidson motorcycle units | 127,648 | 100.0 | % | 136,537 | 100.0 | % | (8,889 | ) | (6.5 | )% | |||||||
Touring motorcycle units | 55,966 | 43.8 | % | 61,921 | 45.4 | % | (5,955 | ) | (9.6 | )% | |||||||
Cruiser motorcycle units | 43,142 | 33.8 | % | 45,902 | 33.6 | % | (2,760 | ) | (6.0 | ) | |||||||
Sportster® / Street motorcycle units | 28,540 | 22.4 | % | 28,714 | 21.0 | % | (174 | ) | (0.6 | ) | |||||||
Harley-Davidson motorcycle units | 127,648 | 100.0 | % | 136,537 | 100.0 | % | (8,889 | ) | (6.5 | )% | |||||||
Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | (Decrease) Increase | % Change | |||||||||||
Revenue: | ||||||||||||||
Motorcycles | $ | 2,092,638 | $ | 2,323,126 | $ | (230,488 | ) | (9.9 | )% | |||||
Parts & Accessories | 380,961 | 400,089 | (19,128 | ) | (4.8 | ) | ||||||||
General Merchandise | 120,045 | 125,254 | (5,209 | ) | (4.2 | ) | ||||||||
Licensing | 18,488 | 18,765 | (277 | ) | (1.5 | ) | ||||||||
Other | 17,509 | 21,834 | (4,325 | ) | (19.8 | ) | ||||||||
Total revenue | 2,629,641 | 2,889,068 | (259,427 | ) | (9.0 | ) | ||||||||
Cost of goods sold | 1,827,464 | 1,883,210 | (55,746 | ) | (3.0 | ) | ||||||||
Gross profit | 802,177 | 1,005,858 | (203,681 | ) | (20.2 | ) | ||||||||
Operating expenses: | ||||||||||||||
Selling & administrative expense | 385,469 | 431,854 | (46,385 | ) | (10.7 | ) | ||||||||
Engineering expense | 103,546 | 98,548 | 4,998 | 5.1 | ||||||||||
Restructuring expense | 24,053 | 59,212 | (35,159 | ) | (59.4 | ) | ||||||||
Operating expense | 513,068 | 589,614 | (76,546 | ) | (13.0 | ) | ||||||||
Operating income from Motorcycles | $ | 289,109 | $ | 416,244 | $ | (127,135 | ) | (30.5 | )% | |||||
Net Revenue | Cost of Goods Sold | Gross Profit | |||||||||
Six months ended July 1, 2018 | $ | 2,889.1 | $ | 1,883.2 | $ | 1,005.9 | |||||
Volume | (181.6 | ) | (115.5 | ) | (66.1 | ) | |||||
Price, net of related costs | 45.3 | 14.8 | 30.5 | ||||||||
Foreign currency exchange rates and hedging | (53.7 | ) | (39.4 | ) | (14.3 | ) | |||||
Shipment mix | (69.5 | ) | (16.0 | ) | (53.5 | ) | |||||
Raw material prices | — | 1.9 | (1.9 | ) | |||||||
Manufacturing and other costs | — | 98.5 | (98.5 | ) | |||||||
Total | (259.5 | ) | (55.7 | ) | (203.8 | ) | |||||
Six months ended June 30, 2019 | $ | 2,629.6 | $ | 1,827.5 | $ | 802.1 | |||||
• | The decrease in volume was due to lower wholesale motorcycle shipments and lower P&A and General Merchandise sales. |
• | On average, wholesale prices for motorcycles shipped in the current period were higher than in the same period last year resulting in a favorable impact on revenue. The positive impact on revenue was partially offset by increased costs related to the additional content added to motorcycles shipped in the current period as compared to the same period last year. |
• | Revenue was adversely impacted by weaker foreign currency exchange rates, relative to the U.S. dollar, as compared to the same period last year. The unfavorable revenue impact was partially offset by favorable net foreign currency gains related to foreign currency hedging and balance sheet remeasurements, as compared to the first half of the prior year. |
• | Changes in the shipment mix of motorcycle families, as well as the mix of models within motorcycle families, had an adverse impact on revenue and gross profit during the first half of 2019. |
• | Raw material prices were higher primarily due to increased metal costs. |
• | Manufacturing and other costs were negatively impacted by incremental tariff costs, lower fixed cost absorption and higher temporary inefficiencies. Costs associated with incremental tariffs implemented in mid-2018 were $55.4 million |
Six months ended | ||||||||||||||
June 30, 2019 | July 1, 2018 | Increase (Decrease) | % Change | |||||||||||
Revenue: | ||||||||||||||
Interest income | $ | 326,881 | $ | 312,680 | $ | 14,201 | 4.5 | % | ||||||
Other income | 60,125 | 52,940 | 7,185 | 13.6 | ||||||||||
Securitization and servicing fee income | 352 | 656 | (304 | ) | (46.3 | ) | ||||||||
Total revenue | 387,358 | 366,276 | 21,082 | 5.8 | ||||||||||
Interest expense | 104,997 | 100,393 | 4,604 | 4.6 | ||||||||||
Provision for credit losses | 60,874 | 48,932 | 11,942 | 24.4 | ||||||||||
Operating expense | 87,227 | 72,831 | 14,396 | 19.8 | ||||||||||
Financial Services expense | 253,098 | 222,156 | 30,942 | 13.9 | ||||||||||
Operating income from Financial Services | $ | 134,260 | $ | 144,120 | $ | (9,860 | ) | (6.8 | )% | |||||
Six months ended | |||||||
June 30, 2019 | July 1, 2018 | ||||||
Balance, beginning of period | $ | 189,885 | $ | 192,471 | |||
Provision for credit losses | 60,874 | 48,932 | |||||
Charge-offs, net of recoveries | (55,763 | ) | (47,473 | ) | |||
Balance, end of period | $ | 194,996 | $ | 193,930 | |||
2019 | 2020-2021 | 2022-2023 | Thereafter | Total | |||||||||||||||
Principal payments on debt | $ | 1,160,128 | $ | 3,578,261 | $ | 1,967,892 | $ | 768,700 | $ | 7,474,981 | |||||||||
Interest payments on debt | 107,733 | 295,706 | 113,011 | 336,802 | 853,252 | ||||||||||||||
$ | 1,267,861 | $ | 3,873,967 | $ | 2,080,903 | $ | 1,105,502 | $ | 8,328,233 | ||||||||||
June 30, 2019 | |||
Cash and cash equivalents | $ | 924,638 | |
Credit facilities | 1,334,305 | ||
Asset-backed U.S. commercial paper conduit facilities(a) | 600,000 | ||
Asset-backed Canadian commercial paper conduit facility(a) | 19,309 | ||
Total availability under credit and conduit facilities | 1,953,614 | ||
Total | $ | 2,878,252 | |
(a) | Includes facilities expiring in the next twelve months which the Company expects to renew prior to expiration.(1) |
Six months ended | |||||||
June 30, 2019 | July 1, 2018 | ||||||
Net cash provided by operating activities | $ | 496,232 | $ | 735,859 | |||
Net cash used by investing activities | (364,575 | ) | (367,953 | ) | |||
Net cash used by financing activities | (380,946 | ) | (74,342 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,439 | (10,091 | ) | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (245,850 | ) | $ | 283,473 | ||
June 30, 2019 | July 1, 2018 | ||||||
Unsecured commercial paper | $ | 405,695 | $ | 1,327,307 | |||
Asset-backed Canadian commercial paper conduit facility | 148,740 | 166,638 | |||||
Asset-backed U.S. commercial paper conduit facilities | 464,136 | 300,000 | |||||
Medium-term notes, net | 4,687,660 | 4,435,449 | |||||
Senior unsecured notes, net | 742,959 | 742,292 | |||||
Asset-backed securitization debt, net | 1,002,869 | 169,430 | |||||
Total debt | $ | 7,452,059 | $ | 7,141,116 | |||
Short-Term | Long-Term | Outlook | |||
Moody’s | P2 | A3 | Stable | ||
Standard & Poor’s | A2 | BBB+ | Negative | ||
Fitch | F1 | A | Negative | ||
Principal Amount | Rate | Issue Date | Maturity Date | |||
$600,000 | 2.40% | September 2014 | September 2019 | |||
$600,000 | 2.15% | February 2015 | February 2020 | |||
$450,000 | LIBOR + 0.50% | May 2018 | May 2020 | |||
$350,000 | 2.40% | March 2017 | June 2020 | |||
$600,000 | 2.85% | January 2016 | January 2021 | |||
$450,000 | LIBOR + 0.94% | November 2018 | March 2021 | |||
$350,000 | 3.55% | May 2018 | May 2021 | |||
$550,000 | 4.05% | February 2019 | February 2022 | |||
$400,000 | 2.55% | June 2017 | June 2022 | |||
$350,000 | 3.35% | February 2018 | February 2023 | |||
2019 | 2018 | ||||||||||||||
Transfers | Proceeds | Transfers | Proceeds | ||||||||||||
First quarter | $ | — | $ | — | $ | 7,600 | $ | 6,200 | |||||||
Second quarter | 28,200 | 23,400 | 38,900 | 32,200 | |||||||||||
$ | 28,200 | $ | 23,400 | $ | 46,500 | $ | 38,400 | ||||||||
2019 | 2018 | ||||||||||||||
Transfers | Proceeds | Transfers | Proceeds | ||||||||||||
First quarter | $ | — | $ | — | $ | 32,900 | $ | 29,300 | |||||||
Second quarter | — | — | 59,100 | 53,300 | |||||||||||
$ | — | $ | — | $ | 92,000 | $ | 82,600 | ||||||||
• | Assume or incur certain liens; |
• | Participate in certain mergers or consolidations; and |
• | Purchase or hold margin stock. |
2019 Fiscal Month | Total Number of Shares Purchased(a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
April 1 to May 5 | — | $ | — | — | 14,943,706 | ||||||||
May 6 to June 2 | 416,173 | $ | 34 | 416,173 | 14,528,706 | ||||||||
June 3 to June 30 | 824,692 | $ | 35 | 824,692 | 13,704,306 | ||||||||
Total | 1,240,865 | $ | 35 | 1,240,865 | |||||||||
(a) | Includes discretionary share repurchases and shares of common stock that employees surrendered to satisfy withholding taxes in connection with the vesting of restricted stock units |
Exhibit No. | Description | |
10.1* | Form of Aircraft Time Sharing Agreement between the Registrant and each of Messrs. Levatich, Olin, Jones, Mansfield, Grimmer and Hund and Mses. Kumbier and Anding (supersedes form of Aircraft Time Sharing Agreement originally filed as Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012). | |
10.2* | Form of Transition Agreement between the Registrant and each of Messrs. Mansfield and Grimmer and Ms. Anding (incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the period ended April 1, 2018 (File No. 1-9183)) | |
10.3* | Amended and Restated Harley-Davidson, Inc. 2014 Incentive Stock Plan as amended effective January 25, 2019 | |
Chief Executive Officer Certification pursuant to Rule 13a-14(a) | ||
Chief Financial Officer Certification pursuant to Rule 13a-14(a) | ||
Written Statement of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. §1350 | ||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
* | Represents a management contract or compensatory plan, contract or arrangement in which a director or named executive officer of the Company participated. |
HARLEY-DAVIDSON, INC. | |
Date: August 8, 2019 | /s/ John A. Olin |
John A. Olin | |
Senior Vice President and | |
Chief Financial Officer | |
(Principal financial officer) | |
Date: August 8, 2019 | /s/ Mark R. Kornetzke |
Mark R. Kornetzke | |
Chief Accounting Officer | |
(Principal accounting officer) | |
(1) | the cost of the fuel, oil and other additives consumed; |
(2) | all travel expenses for pilots, flight attendants and other flight support personnel, including food, lodging and ground transportation; |
(3) | all hangar and tie-down costs away from the Aircraft’s base of operation; |
(4) | costs of any insurance obtained for a specific flight; |
(5) | all landing fees, airport taxes and similar assessments; |
(6) | Customs, foreign permit, and similar fees directly related to a specific flight; |
(7) | all expenses for catering and in-flight entertainment materials; |
(8) | all passenger ground transportation expenses; and |
(9) | all expenses for flight planning and weather contract services; |
PROVIDER: | EXECUTIVE: | |
HARLEY-DAVIDSON MOTOR GROUP, LLC | ||
________________________________ | ________________________________ | |
By: | By: | |
Title: | ||
Make | Model | Serial Number | Registration Number |
Bombardier | BD-100-1A10 | 20344 | N88HD |
(a) | “2004 Plan” means the Harley-Davidson, Inc. 2004 Incentive Stock Plan, as amended. | |
(b) | “2009 Plan” means the Harley-Davidson, Inc. 2009 Incentive Stock Plan, as amended. | |
(ii) | Earnings per Share for the Company on a consolidated basis. | |
(iii) | Total shareholder return. | |
1. | I have reviewed this quarterly report on Form 10-Q of Harley-Davidson, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 8, 2019 | /s/ Matthew S. Levatich |
Matthew S. Levatich | |
President and Chief Executive Officer | |
1. | I have reviewed this quarterly report on Form 10-Q of Harley-Davidson, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 8, 2019 | /s/ John A. Olin |
John A. Olin | |
Senior Vice President and | |
Chief Financial Officer | |
Date: August 8, 2019 | /s/ Matthew S. Levatich |
Matthew S. Levatich | |
President and Chief Executive Officer | |
/s/ John A. Olin | |
John A. Olin | |
Senior Vice President and | |
Chief Financial Officer | |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Revenue: | ||||
| Total revenue | $ 1,632,619 | $ 1,713,223 | $ 3,016,999 | $ 3,255,344 |
| Costs and expenses: | ||||
| Costs and expenses | 979,266 | 993,036 | 1,827,464 | 1,883,210 |
| Financial Services interest expense | 52,673 | 51,943 | 104,997 | 100,393 |
| Financial Services provision for credit losses | 26,383 | 18,880 | 60,874 | 48,932 |
| Selling, administrative and engineering expense | 307,617 | 313,047 | 576,242 | 603,233 |
| Restructuring expense | 10,423 | 12,370 | 24,053 | 59,212 |
| Total costs and expenses | 1,376,362 | 1,389,276 | 2,593,630 | 2,694,980 |
| Operating income | 256,257 | 323,947 | 423,369 | 560,364 |
| Other income (expense), net | 4,037 | 645 | 8,697 | 865 |
| Investment income | 3,571 | 2,533 | 9,929 | 3,736 |
| Interest expense | 7,784 | 7,728 | 15,515 | 15,418 |
| Income before provision for income taxes | 256,081 | 319,397 | 426,480 | 549,547 |
| Provision for income taxes | 60,450 | 77,059 | 102,904 | 132,446 |
| Net income | $ 195,631 | $ 242,338 | $ 323,576 | $ 417,101 |
| Earnings per common share: | ||||
| Basic (in dollars per share) | $ 1.23 | $ 1.45 | $ 2.03 | $ 2.49 |
| Diluted (in dollars per share) | 1.23 | 1.45 | 2.03 | 2.48 |
| Cash dividends per common share (in dollars per share) | $ 0.375 | $ 0.370 | $ 0.750 | $ 0.740 |
| Motorcycles and Related Products | ||||
| Revenue: | ||||
| Motorcycles and Related Products | $ 1,434,004 | $ 1,525,121 | $ 2,629,641 | $ 2,889,068 |
| Financial Services | ||||
| Revenue: | ||||
| Financial Services | $ 198,615 | $ 188,102 | $ 387,358 | $ 366,276 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net income | $ 195,631 | $ 242,338 | $ 323,576 | $ 417,101 |
| Other comprehensive income, net of tax: | ||||
| Foreign currency translation adjustments | 11,270 | (26,482) | 11,601 | (19,567) |
| Derivative financial instruments | (11,923) | (12,364) | ||
| Derivative financial instruments | 23,920 | 24,685 | ||
| Pension and postretirement benefit plans | 7,743 | 12,402 | 15,486 | 98,167 |
| Total other comprehensive income, net of tax | 7,090 | 9,840 | 14,723 | 103,285 |
| Comprehensive income | $ 202,721 | $ 252,178 | $ 338,299 | $ 520,386 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Current assets: | |||
| Cash and cash equivalents | $ 924,638 | $ 1,203,766 | $ 978,749 |
| Marketable securities | 0 | 10,007 | 0 |
| Accounts receivable, net | 325,306 | 306,474 | 335,594 |
| Finance receivables, net | 2,362,125 | 2,214,424 | 2,252,956 |
| Inventories | 470,610 | 556,128 | 465,373 |
| Restricted cash | 82,248 | 49,275 | 44,386 |
| Other current assets | 147,234 | 144,368 | 166,362 |
| Total current assets | 4,312,161 | 4,484,442 | 4,243,420 |
| Finance receivables, net | 5,232,280 | 5,007,507 | 5,060,246 |
| Property, plant and equipment, net | 855,998 | 904,132 | 904,113 |
| Prepaid pension costs | 0 | 0 | 131,497 |
| Goodwill | 64,449 | 55,048 | 55,451 |
| Deferred income taxes | 134,639 | 141,464 | 67,505 |
| Lease assets | 54,913 | ||
| Other long-term assets | 85,876 | 73,071 | 83,790 |
| Total assets | 10,740,316 | 10,665,664 | 10,546,022 |
| Current liabilities: | |||
| Accounts payable | 324,464 | 284,861 | 287,214 |
| Accrued liabilities | 615,905 | 601,130 | 572,440 |
| Short-term debt | 405,695 | 1,135,810 | 1,327,307 |
| Current portion of long-term debt, net | 2,396,188 | 1,575,799 | 945,463 |
| Total current liabilities | 3,742,252 | 3,597,600 | 3,132,424 |
| Long-term debt, net | 4,650,176 | 4,887,667 | 4,868,346 |
| Lease liabilities | 38,365 | ||
| Pension liabilities | 92,750 | 107,776 | 55,819 |
| Postretirement healthcare liabilities | 92,539 | 94,453 | 113,464 |
| Other long-term liabilities | 213,593 | 204,219 | 214,443 |
| Commitments and contingencies | |||
| Shareholders’ equity: | |||
| Preferred stock, none issued | 0 | 0 | 0 |
| Common stock | 1,827 | 1,819 | 1,818 |
| Additional paid-in-capital | 1,474,819 | 1,459,620 | 1,442,580 |
| Retained earnings | 2,210,318 | 2,007,583 | 1,906,015 |
| Accumulated other comprehensive loss | (614,961) | (629,684) | (396,764) |
| Treasury stock, at cost | (1,161,362) | (1,065,389) | (792,123) |
| Total shareholders’ equity | 1,910,641 | 1,773,949 | 2,161,526 |
| Total liabilities and shareholders' equity | 10,740,316 | 10,665,664 | 10,546,022 |
| Variable Interest Entity, Primary Beneficiary | |||
| Current assets: | |||
| Finance receivables, net | 320,710 | 175,043 | 139,405 |
| Restricted cash - current and non-current | 79,436 | 47,203 | 39,757 |
| Other current assets | 1,533 | 1,563 | 1,280 |
| Finance receivables, net | 1,240,081 | 591,839 | 392,901 |
| Current liabilities: | |||
| Current portion of long-term debt, net | 360,269 | 189,693 | 155,631 |
| Long-term debt, net | $ 1,106,736 | $ 488,191 | $ 313,799 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Statement of Financial Position [Abstract] | |||
| Preferred stock, none issued (in shares) | 0 | 0 | 0 |
Basis of Presentation and Use of Estimates |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The consolidated financial statements include the accounts of Harley-Davidson, Inc. and its wholly-owned subsidiaries (the Company), including the accounts of the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions are eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated balance sheets as of June 30, 2019 and July 1, 2018, the consolidated statements of income for the three and six month periods then ended, the consolidated statements of comprehensive income for the three and six month periods then ended, the consolidated statements of cash flows for the six month periods then ended, and the consolidated statements of shareholders' equity for the three and six month periods then ended. Certain information and footnote disclosures normally included in complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting. These consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Company operates in two reportable segments: Motorcycles and Related Products (Motorcycles) and Financial Services. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.
|
New Accounting Standards |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Accounting Changes and Error Corrections [Abstract] | |
| New Accounting Standards | New Accounting Standards Accounting Standards Recently Adopted In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the lease accounting model by requiring a lessee to recognize the rights and obligations resulting from certain leases as assets and liabilities on the balance sheet. ASU 2016-02 also requires a company to disclose key information about their leasing arrangements. The Company adopted ASU 2016-02 on January 1, 2019 using a modified retrospective approach. Pursuant to ASU 2018-11, Leases (Topic 842): Targeted Improvements, the Company applied the new leases standard at the adoption date and recognized a cumulative effect adjustment to the opening balance sheet on January 1, 2019. The Company elected the package of practical expedients upon transition that allows entities not to reassess lease identification, classification and initial direct costs for leases that existed prior to adoption. The Company also elected the short-term lease practical expedient that allows entities to recognize lease payments on a straight-line basis over the lease term for leases with a term of 12 months or less. The Company has elected the practical expedient allowing entities to not separate non-lease components from lease components, but instead account for such components as a single lease component for all leases except leases involving assets operated by a third-party. The adoption of ASU 2016-02 resulted in the initial recognition of right of use assets and lease liabilities related to the Company's leasing arrangements totaling approximately $60 million on January 1, 2019. The adoption of ASU 2016-02 had no impact on opening retained earnings on January 1, 2019 and is not expected to materially impact consolidated net income or cash flows on an on-going basis. In August 2017, the FASB issued ASU No. 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). ASU 2017-12 amends ASC 815, Derivatives and Hedging to improve the financial reporting of hedging relationships and to simplify the application of the hedge accounting guidance. The ASU makes various updates to the hedge accounting model, including changing the recognition and presentation of changes in the fair value of the hedging instrument and amending disclosure requirements, among other things. The Company adopted ASU 2017-12 on January 1, 2019. The adoption of ASU 2017-12 did not have a material impact on its financial statements. Accounting Standards Not Yet Adopted In July 2016, the FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current credit loss standard generally requires that a loss actually be incurred before it is recognized, while the new standard will require recognition of full lifetime expected losses upon initial recognition of the financial instrument. The Company is required to adopt ASU 2016-13 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 on a modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2018. An entity should apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. The Company is currently evaluating the impact of adoption of ASU 2016-13 but anticipates the adoption will result in an initial increase in the allowance for credit losses, with a decrease in retained earnings. The initial change in the allowance for credit losses at adoption and the ongoing effect of ASU 2016-13 on the provision for credit losses will be impacted by the size and composition of the Company's finance receivables portfolio at each reporting period, as well as other items including economic conditions and forecasts at that time. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company is required to adopt ASU 2017-04 for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 amends ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Early adoption is permitted in any period, for either the whole standard or only the provisions that eliminate or modify requirements. The amendments are required to be applied retrospectively, with the exception of a few disclosure additions, which are to be applied on a prospective basis. The Company is currently evaluating the impact of adopting ASU 2018-13, but does not believe that it will have a significant impact on its disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15). The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the existing internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2018-15.
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | Revenue The following table includes revenue disaggregated by major source (in thousands):
Deferred revenue relates to payments received at contract inception in advance of the Company’s performance under the contract and generally relates to the sale of Harley Ownership Group memberships and extended service plan contracts. Deferred revenue is recognized as revenue as the Company performs under the contract. Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the consolidated balance sheet, was as follows (in thousands):
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Restructuring Expenses |
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Expenses | Restructuring Expenses In January 2018, the Company initiated a plan to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization plan which included the consolidation of its motorcycle assembly plant in Kansas City, Missouri, into its plant in York, Pennsylvania, and the closure of its wheel operations in Adelaide, Australia (Manufacturing Optimization Plan). The consolidation of operations included the elimination approximately 800 jobs at the Kansas City facility and the addition of approximately 450 jobs at the York facility through 2019. The Adelaide facility closure included the elimination of approximately 90 jobs. Through June 30, 2019, the Motorcycles segment incurred $134.4 million of restructuring expenses and other consolidation costs for the Manufacturing Optimization Plan since its inception in 2018. The Company expects total restructuring expenses and other consolidation costs of $142 million to $152 million related to the Manufacturing Optimization Plan through 2019, of which approximately 70% will be cash charges. The current estimate includes $119 million to $124 million of restructuring expense and $23 million to $28 million of costs related to temporary inefficiencies. The Company expects restructuring expenses to include the cost of employee termination benefits, accelerated depreciation, and other project implementation costs of $38 million to $40 million, $48 million to $49 million, and $33 million to $35 million, respectively. In November 2018, the Company implemented a reorganization of its workforce (Reorganization Plan). As a result, approximately 70 employees left the Company on an involuntary basis. Restructuring expense related to these plans is recorded in a separate line item in the consolidated statements of income and the accrued restructuring liability is recorded in Accrued liabilities on the consolidated balance sheet. Changes in the accrued restructuring liability (in thousands) were as follows:
The Company incurred incremental Motorcycles and Related Products cost of goods sold due to temporary inefficiencies resulting from implementing the Manufacturing Optimization Plan during the three months ended June 30, 2019 and July 1, 2018 of $4.0 million and $2.4 million, respectively, and $7.6 million and $3.1 million, respectively, during the six months ended June 30, 2019 and July 1, 2018. During the three months ended July 1, 2018, the restructuring liability was adjusted to reflect updated assumptions resulting in a reversal of approximately $1.7 million of previously recognized restructuring expense.
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Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income TaxesThe Company’s effective income tax rate for the six months ended June 30, 2019 and July 1, 2018 was 24.1%. |
Earnings Per Share |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):
Outstanding options to purchase 1.2 million and 1.5 million shares of common stock for the three months ended June 30, 2019 and July 1, 2018, respectively, and 1.2 million and 1.3 million shares of common stock for the six months ended June 30, 2019 and July 1, 2018, respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive. The Company has a share-based compensation plan under which employees may be granted share-based awards including restricted stock units (RSUs). Non-forfeitable dividend equivalents are paid on unvested RSUs. As such, RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation for the three and six month periods ended June 30, 2019 and July 1, 2018.
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Acquisition |
6 Months Ended |
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Jun. 30, 2019 | |
| Business Combinations [Abstract] | |
| Acquisition | Acquisition On March 4, 2019, the Company purchased certain assets and liabilities of StaCyc, Inc. for total consideration of $14.9 million including cash paid at acquisition of $7.0 million. StaCyc produces electric-powered two-wheelers specifically designed for children and supports the Company’s plans to expand its portfolio of electric two-wheeled vehicles. The Company has completed an allocation of the purchase consideration and valuation of acquired assets and liabilities. The primary assets acquired and included in the Motorcycles segment were goodwill of $9.5 million, which is tax deductible, and intangible assets of $5.3 million.
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Additional Balance Sheet and Cash Flow Information |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Balance Sheet and Cash Flow Information | Additional Balance Sheet and Cash Flow Information Investments in Marketable Securities The Company’s marketable securities consisted of the following (in thousands):
Debt securities, which were included in Marketable securities on the consolidated balance sheets, were carried at fair value with unrealized gains or losses reported in other comprehensive income. Mutual fund investments, which are included in Other long-term assets on the consolidated balance sheets, are carried at fair value with gains and losses recorded in net income. The mutual fund investments are held to support certain deferred compensation obligations. Inventories Substantially all inventories located in the United States are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Inventories consisted of the following (in thousands):
Operating Cash Flow The reconciliation of net income to net cash provided by operating activities is as follows (in thousands):
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Finance Receivables |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Finance Receivables | Finance Receivables The Company provides retail financial services to customers of the Company’s independent dealers in the United States and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment sales contracts and are primarily related to sales of motorcycles to the dealers' customers. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts. The Company offers wholesale financing to the Company’s independent dealers. Wholesale loans to dealers are generally secured by financed inventory or property and are originated in the U.S. and Canada. Wholesale finance receivables are related primarily to sales of motorcycles and related parts and accessories to dealers. Finance receivables, net, consisted of the following (in thousands):
A provision for credit losses on finance receivables is charged or credited to earnings in amounts that the Company believes are sufficient to maintain the allowance for credit losses at a level that is adequate to cover losses inherent in the existing portfolio. The allowance for credit losses represents management’s estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. However, due to the use of projections and assumptions in estimating the losses, the amount of losses actually incurred by the Company could differ from the amounts estimated. Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):
Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement. Portions of the allowance for credit losses are established to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance for credit losses covers estimated losses on finance receivables which are collectively reviewed for impairment. The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilizes loss forecast models which consider a variety of factors including, but not limited to, historical loss trends, origination or vintage analysis, known and inherent risks in the portfolio, the value of the underlying collateral, recovery rates, and current economic conditions including items such as unemployment rates. Retail finance receivables are not evaluated individually for impairment prior to charge-off and, therefore, are not reported as impaired loans. The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s evaluation for the wholesale allowance for credit losses is first based on a loan-by-loan review. A specific allowance for credit losses is established for wholesale finance receivables determined to be individually impaired when management concludes that the borrower will not be able to make full payment of the contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash that the Company expects to receive discounted at the loan’s original interest rate or the fair value of the collateral, if the loan is collateral-dependent. Finance receivables in the wholesale portfolio that are not considered impaired on an individual basis are segregated, based on similar risk characteristics, according to the Company’s internal risk rating system and collectively evaluated for impairment. The related allowance for credit losses is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past loan loss experience, current economic conditions, and the value of the underlying collateral. Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize the economic loss, the Company may modify certain finance receivables in troubled debt restructurings. Total restructured finance receivables are not significant. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands):
There were no wholesale finance receivables at June 30, 2019 or December 31, 2018 that were individually deemed to be impaired under ASC Topic 310, "Receivables". Additional information related to the wholesale finance receivables that were individually deemed to be impaired at July 1, 2018 includes (in thousands):
Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed, or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of June 30, 2019, December 31, 2018 and July 1, 2018, all retail finance receivables were accounted for as interest-earning receivables, of which $30.4 million, $41.2 million and $22.4 million, respectively, were 90 days or more past due. Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once management determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the finance receivable becomes uncollectible and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. There were no wholesale receivables on non-accrual status at June 30, 2019 or December 31, 2018. The recorded investment in non-accrual status wholesale finance receivables at July 1, 2018 was $0.2 million. At June 30, 2019, December 31, 2018 and July 1, 2018, $2.1 million, $1.1 million, and $0.1 million of wholesale finance receivables were 90 days or more past due and accruing interest, respectively. An analysis of the aging of past due finance receivables was as follows (in thousands):
A significant part of managing the Company's finance receivable portfolios includes the assessment of credit risk associated with each borrower. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit risk indicators for each portfolio. The Company manages retail credit risk through its credit approval policy and ongoing collection efforts. The Company uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants, enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. Retail loans with a FICO score of 640 or above at origination are generally considered prime, and loans with a FICO score below 640 are generally considered sub-prime. These credit quality indicators are determined at the time of loan origination and are not updated subsequent to the loan origination date. The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands):
The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon management’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. The internal rating system considers factors such as the specific borrower's ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated on a quarterly basis. The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):
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Derivative Instruments and Hedging Activities |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company is exposed to certain risks such as foreign currency exchange rate risk, interest rate risk and commodity price risk. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures which prohibit the use of financial instruments for speculative trading purposes. The Company sells products in foreign currencies and utilizes foreign currency exchange contracts to mitigate the effects of foreign currency exchange rate fluctuations related to the Euro, Australian dollar, Japanese yen, Brazilian real, Canadian dollar, Mexican peso, Indian rupee, and Pound sterling. The foreign currency exchange contracts generally have maturities of less than one year. The Company utilizes commodity contracts to mitigate the effects of commodity price fluctuations related to metals and fuel consumed in the Company’s motorcycle production and distribution processes. The commodity contracts generally have maturities of less than one year. The Company periodically utilizes treasury rate lock contracts to fix the interest rate on a portion of the principal related to the anticipated issuance of long-term debt as well as interest rate swaps to reduce the impact of fluctuations in interest rates on floating rate medium-term notes. The Company also utilizes interest rate caps to facilitate certain asset-backed securitization transactions. All derivative instruments are recognized on the balance sheet at fair value. In accordance with ASC Topic 815, Derivatives and Hedging, the accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivatives that are designated as cash flow hedges are initially recorded in other comprehensive income (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in cash flow hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. No component of a hedging derivative instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to foreign currency, commodity risks, and interest rate risks. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The following tables summarize the notional and recorded fair values of the Company’s derivative financial instruments (in thousands):
The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands):
The amount of net loss included in Accumulated other comprehensive loss (AOCL) at June 30, 2019, estimated to be reclassified into income over the next twelve months was $3.2 million. The following table summarizes the amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments (in thousands). Foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial services interest expense.
The Company is exposed to credit loss risk in the event of non-performance by counterparties to these derivative financial instruments. Although no assurances can be given, the Company does not expect any of the counterparties to these derivative financial instruments to fail to meet its obligations. To manage credit loss risk, the Company evaluates counterparties based on credit ratings and, on a quarterly basis, evaluates each hedge’s net position relative to the counterparty’s ability to cover its position.
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Leases |
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| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases The Company determines if an arrangement is or contains a lease at contract inception. Right-of-use (ROU) assets related to leases are recorded in Lease assets and lease liabilities are recorded in Accrued liabilities and Lease liabilities on the consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement date based on the present value of future lease payments over the lease term. The ROU asset also includes prepaid lease payments and initial direct costs and is reduced for lease incentives paid by the lessor. The discount rate used to determine the present value is generally the Company's incremental borrowing rate because the implicit rate in the lease is not readily determinable. The lease term used to calculate the ROU asset and lease liability includes periods covered by options to extend or terminate when the Company is reasonably certain the lease term will include these optional periods. The Company has lease arrangements for sales and administrative offices, manufacturing and distribution facilities, product testing facilities, equipment and vehicles. All of the Company’s lease arrangements are accounted for as operating leases. The Company’s leases have remaining lease terms ranging from 1 to 13 years, some of which include options to extend the leases for periods generally not greater than 5 years and some of which include options to terminate the leases within 1 year. Certain leases also include options to purchase the leased asset. Leases do not contain any material residual value guarantees or material restrictive covenants. Operating lease expense for the three and six months ended June 30, 2019 was $6.4 million and $12.7 million, respectively. This includes variable lease costs related to leases involving assets operated by a third-party of approximately $2.0 million and $3.2 million for the three and six months ended June 30, 2019, respectively. Other variable and short-term lease costs were not material. Balance sheet information related to leases was as follows (in thousands):
Future maturities of lease liabilities were as follows as of June 30, 2019 (in thousands):
Other lease information is as follows (dollars in thousands):
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Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt Debt with a contractual term of one year or less is generally classified as short-term debt and consisted of the following (in thousands):
Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following (in thousands):
In May 2019, the Company entered into a $195.0 million 364-day credit facility which bears interest at variable rates and matures on May 11, 2020.
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Asset-Backed Financing |
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| Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-Backed Financing | Asset-Backed Financing The Company participates in asset-backed financing both through asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. In the Company's asset-backed financing programs, the Company transfers retail motorcycle finance receivables to special purpose entities (SPEs), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash, through the issuance of debt. The Company retains servicing rights for all of the retail motorcycle finance receivables transferred to SPEs as part of an asset-backed financing. The accounting treatment for asset-backed financings depends on the terms of the related transaction and the Company’s continuing involvement with the VIE. In transactions where the Company has power over the significant activities of the VIE and has an obligation to absorb losses or the right to receive benefits from the VIE that are potentially significant to the VIE, the Company is the primary beneficiary of the VIE and consolidates the VIE within its consolidated financial statements. On a consolidated basis, the asset-backed financing is treated as a secured borrowing in this type of transaction and is referred to as an on-balance sheet asset-backed financing. In transactions where the Company is not the primary beneficiary of the VIE, the Company must determine whether it can achieve a sale for accounting purposes under ASC Topic 860, Transfers and Servicing. To achieve a sale for accounting purposes, the assets being transferred must be legally isolated, not be constrained by restrictions from further transfer, and be deemed to be beyond the Company’s control. If the Company does not meet all of these criteria for sale accounting, then the transaction is accounted for as a secured borrowing and is referred to as an on-balance sheet asset-backed financing. If the Company meets all three of the sale criteria above, the transaction is recorded as a sale for accounting purposes and is referred to as an off-balance sheet asset-backed financing. Upon sale, the retail motorcycle finance receivables are removed from the Company’s balance sheet and a gain or loss is recognized for the difference between the cash proceeds received, the assets derecognized, and the liabilities recognized as part of the transaction. The gain or loss on sale is included in Financial Services revenue in the consolidated statements of income. The Company is not required, and does not currently intend, to provide any additional financial support to the on- or off-balance sheet VIEs associated with these transactions. Investors and creditors in these transactions only have recourse to the assets held by the VIEs. The following tables show the assets and liabilities related to the on-balance sheet asset-backed financings included in the financial statements (in thousands):
On-Balance Sheet Asset-Backed Securitization VIEs The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each on-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitizations are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Restricted cash balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes have various contractual maturities ranging from 2020 to 2026. The Company is the primary beneficiary of its on-balance sheet asset-backed securitization VIEs because it retains servicing rights and a residual interest in the VIEs in the form of a debt security. As the servicer, the Company is the variable interest holder with the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. As a residual interest holder, the Company has the obligation to absorb losses and the right to receive benefits which could potentially be significant to the VIE. During the second quarter of 2019, the Company issued $500.0 million and $525.0 million, or $498.7 million and $522.6 million net of discount and issuance costs, respectively, of secured notes through on-balance sheet asset-backed securitization transactions. There were no on-balance sheet asset-backed securitization transactions during the first quarter of 2019 or the first half of 2018. On-Balance Sheet Asset-Backed U.S. Commercial Paper Conduit Facilities VIE The Company has two separate agreements with third-party bank-sponsored asset-backed U.S. commercial paper conduits under which it may transfer U.S. retail motorcycle finance receivables to an SPE, which in turn may issue debt to those third-party bank-sponsored asset-backed U.S. commercial paper conduits. In November 2018, the Company renewed its existing $600.0 million revolving facility agreement with third-party bank-sponsored asset-backed U.S. commercial paper conduits. Also at that time, the Company amended its existing $300.0 million revolving facility agreement with third-party bank-sponsored asset-backed U.S. commercial paper conduits, increasing the aggregate commitment to $600.0 million. The aggregate commitment under this agreement is reduced monthly as collections on the related finance receivables are applied to the outstanding principal until the outstanding principal balance is less than or equal to $300.0 million, at which point the aggregate commitment will equal $300.0 million. In May 2019, the Company further amended this revolving facility agreement to allow for incremental borrowings, at the lenders' discretion, of up to an additional $300.0 million in excess of the $300.0 million commitment. Availability under the revolving facilities (together, the U.S. Conduit Facilities) is based on, among other things, the amount of eligible U.S. retail motorcycle finance receivables held by the SPE as collateral. Under the U.S. Conduit Facilities, the assets of the SPE are restricted as collateral for the payment of the debt or other obligations arising in the transaction and are not available to pay other obligations or claims of the Company’s creditors. The terms for this debt provide for interest on the outstanding principal based on prevailing commercial paper rates or LIBOR to the extent the advance is not funded by a conduit lender through the issuance of commercial paper plus, in each case, a program fee based on outstanding principal. The U.S. Conduit Facilities also provide for an unused commitment fee based on the unused portion of the total aggregate commitment. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the U.S. Conduit Facilities, any outstanding principal will continue to be reduced monthly through available collections. The expected remaining term of the related receivables held by the SPE is approximately 5 years. Unless earlier terminated or extended by mutual agreement of the Company and the lenders, as of June 30, 2019, the U.S. Conduit Facilities have an expiration date of November 29, 2019. The Company is the primary beneficiary of its U.S. Conduit Facilities VIE because it retains servicing rights and a residual interest in the VIE in the form of a debt security. As the servicer, the Company is the variable interest holder with the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. As a residual interest holder, the Company has the obligation to absorb losses and the right to receive benefits which could potentially be significant to the VIE. The following table includes quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds (in thousands):
On-Balance Sheet Asset-Backed Canadian Commercial Paper Conduit Facility In June 2019, the Company renewed its facility agreement (Canadian Conduit) with a Canadian bank-sponsored asset-backed commercial paper conduit. Under the agreement, the Canadian Conduit is contractually committed, at the Company's option, to purchase eligible Canadian retail motorcycle finance receivables for proceeds up to C$220.0 million. The transferred assets are restricted as collateral for the payment of the debt. The terms for this debt provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$220.0 million. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. The expected remaining term of the related receivables is approximately 5 years. Unless earlier terminated or extended by mutual agreement between the Company and the lenders, as of June 30, 2019, the Canadian Conduit has an expiration date of June 26, 2020. The Company is not the primary beneficiary of the Canadian bank-sponsored, multi-seller conduit VIE; therefore, the Company does not consolidate the VIE. However, the Company treats the conduit facility as a secured borrowing as it maintains effective control over the assets transferred to the VIE and, therefore, does not meet the requirements for sale accounting. As the Company participates in and does not consolidate the Canadian bank-sponsored, multi-seller conduit VIE, the maximum exposure to loss associated with this VIE, which would only be incurred in the unlikely event that all the finance receivables and underlying collateral have no residual value, was $30.2 million at June 30, 2019. The maximum exposure is not an indication of the Company's expected loss exposure. The following table includes quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds (in thousands):
Off-Balance Sheet Asset-Backed Securitization VIE There were no off-balance sheet asset-backed securitization transactions during the first half of 2019 or 2018. During the second quarter of 2016, the Company sold retail motorcycle finance receivables with a principal balance of $301.8 million into a securitization VIE that was not consolidated, recognized a gain of $9.3 million and received cash proceeds of $312.6 million. Similar to an on-balance sheet asset-backed securitization, the Company transferred U.S. retail motorcycle finance receivables to an SPE which in turn issued secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. The off-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitization are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors. In an on-balance sheet asset-backed securitization, the Company retains a financial interest in the VIE in the form of a debt security. As part of this off-balance sheet securitization, the Company did not retain any financial interest in the VIE beyond servicing rights and ordinary representations and warranties and related covenants. The Company is not the primary beneficiary of the off-balance sheet asset-backed securitization VIE because it only retained servicing rights and does not have the obligation to absorb losses or the right to receive benefits from the VIE which could potentially be significant to the VIE. Accordingly, this transaction met the accounting sale requirements under ASC Topic 860 and was recorded as a sale for accounting purposes. Upon the sale, the retail motorcycle finance receivables were removed from the Company’s balance sheet and a gain was recognized for the difference between the cash proceeds received, the assets derecognized and the liabilities recognized as part of the transaction. The gain on sale was included in Financial Services revenue in the consolidated statements of income. At June 30, 2019, the assets of this off-balance sheet asset-backed securitization VIE were $54.7 million and represented the current unpaid principal balance of the retail motorcycle finance receivables, which was the Company’s maximum exposure to loss in the off-balance sheet VIE at June 30, 2019. This is based on the unlikely event that all the receivables have underwriting defects or other defects that trigger a violation of certain covenants and that the underlying collateral has no residual value. This maximum exposure is not an indication of expected losses. Servicing Activities The Company services all retail motorcycle finance receivables that it originates. When the Company transfers retail motorcycle finance receivables to SPEs through asset-backed financings, the Company retains the right to service the finance receivables and receives servicing fees based on the securitized finance receivables balance and certain ancillary fees. In on-balance sheet asset-backed financings, servicing fees are eliminated in consolidation and therefore are not recorded on a consolidated basis. In off-balance sheet asset-backed financings, servicing fees and ancillary fees are recorded in Financial Services revenue in the consolidated statements of income. The fees the Company is paid for servicing represent adequate compensation, and consequently, the Company does not recognize a servicing asset or liability. The Company recognized servicing fee income of $0.3 million and $0.7 million during the first half of 2019 and 2018, respectively. The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands):
The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands):
Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands):
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Fair Value |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value | Fair Value The Company assesses the inputs used to measure fair value using a three-tier hierarchy. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity prices, and yield curves. The Company uses the market approach to derive the fair value for its Level 2 fair value measurements. Forward contracts for foreign currency, commodities, and treasury rate locks are valued using quoted forward rates and prices; interest rate swaps and caps are valued using quoted interest rates and yield curves; investments in marketable securities and cash equivalents are valued using quoted prices. Level 3 inputs are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):
Nonrecurring Fair Value Measurements Repossessed inventory is recorded at the lower of cost or net realizable value through a nonrecurring fair value measurement. Repossessed inventory was $19.4 million, $20.2 million and $16.4 million at June 30, 2019, December 31, 2018 and July 1, 2018, respectively, for which the fair value adjustment was $5.9 million, $9.7 million and $2.8 million, respectively. Fair value is estimated using Level 2 inputs based on the recent market values of repossessed inventory. Fair Value of Financial Instruments Measured at Cost The carrying value of the Company's cash and cash equivalents and restricted cash approximates their fair values. The following table summarizes the fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost (in thousands):
Finance Receivables, Net – The carrying value of retail and wholesale finance receivables in the financial statements is amortized cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The amortized cost basis of wholesale finance receivables approximates fair value because they either are short-term or have interest rates that adjust with changes in market interest rates. Debt – The carrying value of debt in the financial statements is generally amortized cost, net of discounts and debt issuance costs. The carrying value of unsecured commercial paper calculated using Level 2 inputs approximates fair value due to its short maturity. The carrying value of debt provided under the U.S. Conduit Facilities and Canadian Conduit Facility calculated using Level 2 inputs approximates fair value since the interest rates charged under the facility are tied directly to market rates and fluctuate as market rates change. The fair values of the medium-term notes and senior unsecured notes are estimated based upon rates currently available for debt with similar terms and remaining maturities (Level 2 inputs). The fair value of the debt related to on-balance sheet asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities (Level 2 inputs).
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Product Warranty and Recall Campaigns |
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| Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Warranty and Recall Campaigns | Product Warranty and Recall Campaigns The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company currently provides a standard three-year limited warranty on all new motorcycles sold. In addition, the Company provides a one-year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company accrues for the estimated cost associated with voluntary recalls in the period that management approves and commits to the recall. Changes in the Company’s warranty and recall liability were as follows (in thousands):
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Employee Benefit Plans |
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| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefit Plans | Employee Benefit Plans The Company has a defined benefit qualified pension plan and postretirement healthcare benefit plans that cover certain employees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees which were instituted to replace benefits lost under the Tax Revenue Reconciliation Act of 1993. Service cost is allocated among Selling, administrative and engineering expense, Cost of goods sold and Inventory. Amounts capitalized in inventory are not significant. Non-service cost components of net periodic benefit cost are presented in Other income (expense), net. Components of net periodic benefit cost were as follows (in thousands):
During the six months ended July 1, 2018, the qualified pension plan and certain postretirement healthcare plan assets and obligations were remeasured as a result of a curtailment of benefits related to the planned closure of the Company's motorcycle assembly plant in Kansas City, Missouri, discussed further in Note 4. As a result of the remeasurement, the Company recorded a benefit of $96.4 million before income taxes in other comprehensive income during the six months ended July 1, 2018. There are no required or planned qualified pension plan contributions for 2019. The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans.
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Commitments and Contingencies |
6 Months Ended |
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| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter. Environmental Protection Agency Notice: In December 2009, the Company received formal, written requests for information from the United States Environmental Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels, (ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written responses to the EPA’s inquiry and has engaged in information exchanges and discussions with the EPA. In August 2016, the Company entered into a consent decree with the EPA regarding these issues, and the consent decree was subsequently revised in July 2017 (the Settlement). In the Settlement, the Company agreed to, among other things, pay a fine, and not sell tuning products unless they are approved by the EPA or California Air Resources Board. In December 2017, the Department of Justice (DOJ), on behalf of the EPA, filed the Settlement with the U.S. District Court for the District of Columbia for the purpose of obtaining court approval of the Settlement. Three amicus briefs opposing portions of the Settlement were filed with the court by the deadline of January 31, 2018. On March 1, 2018, the Company and the DOJ each filed separate response briefs. The Company is awaiting the court's decision on whether or not to finalize the Settlement, and on February 8, 2019 the DOJ filed a status update reminding the court of the current status of the outstanding matter. The Company has an accrual associated with this matter which is included in Accrued liabilities on the consolidated balance sheets, and as a result, if it is finalized, the Settlement would not have a material adverse effect on the Company's financial condition or results of operations. The Settlement is not final until it is approved by the court, and if it is not approved by the court, the Company cannot reasonably estimate the impact of any remedies the EPA might seek beyond the Company's current reserve for this matter. York Environmental Matters: The Company is involved with government agencies and groups of potentially responsible parties related to a matter involving the cleanup of soil and groundwater contamination at its York, Pennsylvania facility. The York facility was formerly used by the U.S. Navy and AMF prior to the purchase of the York facility by the Company from AMF in 1981. The Company has been working with the Pennsylvania Department of Environmental Protection (PADEP) since 1986 and with the U.S. Environmental Protection Agency (EPA) in undertaking environmental investigation and remediation activities, including a site-wide remedial investigation/feasibility study (RI/FS). In January 1995, the Company entered into a settlement agreement (the Agreement) with the Navy, and the parties amended the Agreement in 2013 to address ordnance and explosive waste. The Agreement calls for the Navy and the Company to contribute amounts into a trust equal to 53% and 47%, respectively, of costs associated with environmental investigation and remediation activities at the York facility (Response Costs). The trust administers the payment of the Response Costs incurred at the York facility as covered by the Agreement. The Company has an accrual for its estimate of its share of the future Response Costs at the York facility which is included in Other long-term liabilities on the consolidated balance sheets. While the work on the RI/FS is now complete and the final remedy was proposed in late 2018, it has not yet been approved, and given the uncertainty that exists concerning the nature and scope of additional environmental remediation that may ultimately be required under the approved final remedy, the Company is unable to make a reasonable estimate of those additional costs, if any, that may result. The estimate of the Company's future Response Costs that will be incurred at the York facility is based on reports of independent environmental consultants retained by the Company, the actual costs incurred to date, and the estimated costs to complete the necessary investigation and remediation activities. Product Liability Matters: The Company is involved in product liability suits related to the operation of its business. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and that product liability suits will not have a material adverse effect on the Company’s consolidated financial statements.
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Accumulated Other Comprehensive Loss |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables set forth the changes in Accumulated other comprehensive loss (AOCL) (in thousands):
(a) Amounts reclassified are included in the computation of net periodic benefit cost; refer to Note 16 for information related to pension and postretirement benefit plans
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Business Segments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Segments | Business Segments Harley-Davidson, Inc. is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles and Related Products (Motorcycles) segment and the Financial Services segment. The Company’s reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. Selected segment information is set forth below (in thousands):
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Supplemental Consolidating Data |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Consolidating Data | 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.
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Basis of Presentation and Use of Estimates (Policies) |
6 Months Ended |
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Jun. 30, 2019 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.
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| New Accounting Pronouncements | Accounting Standards Recently Adopted In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the lease accounting model by requiring a lessee to recognize the rights and obligations resulting from certain leases as assets and liabilities on the balance sheet. ASU 2016-02 also requires a company to disclose key information about their leasing arrangements. The Company adopted ASU 2016-02 on January 1, 2019 using a modified retrospective approach. Pursuant to ASU 2018-11, Leases (Topic 842): Targeted Improvements, the Company applied the new leases standard at the adoption date and recognized a cumulative effect adjustment to the opening balance sheet on January 1, 2019. The Company elected the package of practical expedients upon transition that allows entities not to reassess lease identification, classification and initial direct costs for leases that existed prior to adoption. The Company also elected the short-term lease practical expedient that allows entities to recognize lease payments on a straight-line basis over the lease term for leases with a term of 12 months or less. The Company has elected the practical expedient allowing entities to not separate non-lease components from lease components, but instead account for such components as a single lease component for all leases except leases involving assets operated by a third-party. The adoption of ASU 2016-02 resulted in the initial recognition of right of use assets and lease liabilities related to the Company's leasing arrangements totaling approximately $60 million on January 1, 2019. The adoption of ASU 2016-02 had no impact on opening retained earnings on January 1, 2019 and is not expected to materially impact consolidated net income or cash flows on an on-going basis. In August 2017, the FASB issued ASU No. 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). ASU 2017-12 amends ASC 815, Derivatives and Hedging to improve the financial reporting of hedging relationships and to simplify the application of the hedge accounting guidance. The ASU makes various updates to the hedge accounting model, including changing the recognition and presentation of changes in the fair value of the hedging instrument and amending disclosure requirements, among other things. The Company adopted ASU 2017-12 on January 1, 2019. The adoption of ASU 2017-12 did not have a material impact on its financial statements. Accounting Standards Not Yet Adopted In July 2016, the FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current credit loss standard generally requires that a loss actually be incurred before it is recognized, while the new standard will require recognition of full lifetime expected losses upon initial recognition of the financial instrument. The Company is required to adopt ASU 2016-13 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 on a modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2018. An entity should apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. The Company is currently evaluating the impact of adoption of ASU 2016-13 but anticipates the adoption will result in an initial increase in the allowance for credit losses, with a decrease in retained earnings. The initial change in the allowance for credit losses at adoption and the ongoing effect of ASU 2016-13 on the provision for credit losses will be impacted by the size and composition of the Company's finance receivables portfolio at each reporting period, as well as other items including economic conditions and forecasts at that time. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company is required to adopt ASU 2017-04 for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 amends ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Early adoption is permitted in any period, for either the whole standard or only the provisions that eliminate or modify requirements. The amendments are required to be applied retrospectively, with the exception of a few disclosure additions, which are to be applied on a prospective basis. The Company is currently evaluating the impact of adopting ASU 2018-13, but does not believe that it will have a significant impact on its disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15). The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the existing internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2018-15
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Revenue (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue | The following table includes revenue disaggregated by major source (in thousands):
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| Deferred Revenue | Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the consolidated balance sheet, was as follows (in thousands):
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Restructuring Expenses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in the Accrued Restructuring Liability | Changes in the accrued restructuring liability (in thousands) were as follows:
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Earnings Per Share Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):
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Additional Balance Sheet and Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marketable Securities | The Company’s marketable securities consisted of the following (in thousands):
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| Inventories, Net | Inventories consisted of the following (in thousands):
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| Reconciliation of Net Cash Provided by Operating Activities | The reconciliation of net income to net cash provided by operating activities is as follows (in thousands):
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Finance Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Finance Receivables | Finance receivables, net, consisted of the following (in thousands):
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| Allowance for Credit Losses on Finance Receivables | Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):
The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands):
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| Impaired Financing Receivables | Additional information related to the wholesale finance receivables that were individually deemed to be impaired at July 1, 2018 includes (in thousands):
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| Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables | An analysis of the aging of past due finance receivables was as follows (in thousands):
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| Recorded Investment of Finance Receivables by Credit Quality Indicator | The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):
The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands):
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Derivative Instruments and Hedging Activities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instrument Fair Value | The following tables summarize the notional and recorded fair values of the Company’s derivative financial instruments (in thousands):
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| Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands):
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| Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table summarizes the amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments (in thousands). Foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial services interest expense.
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Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance sheet information related to leases | Balance sheet information related to leases was as follows (in thousands):
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| Future maturities of lease liabilities | Future maturities of lease liabilities were as follows as of June 30, 2019 (in thousands):
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| Other lease information | Other lease information is as follows (dollars in thousands):
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Short-term Debt | Debt with a contractual term of one year or less is generally classified as short-term debt and consisted of the following (in thousands):
|
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| Schedule of Long-term Debt Instruments | Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following (in thousands):
|
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Asset-Backed Financing (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets and Liabilities Related to the On-Balance Sheet Financing | The following tables show the assets and liabilities related to the on-balance sheet asset-backed financings included in the financial statements (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Transfers Related to Finance Receivables | The following table includes quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds (in thousands):
The following table includes quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds (in thousands):
|
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| Schedule of Servicing Activities | The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands):
The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands):
Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands):
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Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Assets and Liabilities Measured At Fair Value On A Recurring Basis | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):
|
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| Summary of The Fair Value and Carrying Value of The Company's Financial Instruments | The following table summarizes the fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost (in thousands):
|
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Product Warranty and Recall Campaigns (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warranty and Recall Liability | Changes in the Company’s warranty and recall liability were as follows (in thousands):
|
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Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Net Periodic Benefit Costs | Components of net periodic benefit cost were as follows (in thousands):
|
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Accumulated Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accumulated Other Comprehensive Loss | The following tables set forth the changes in Accumulated other comprehensive loss (AOCL) (in thousands):
(a) Amounts reclassified are included in the computation of net periodic benefit cost; refer to Note 16 for information related to pension and postretirement benefit plans
|
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Business Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information, by Segment | Selected segment information is set forth below (in thousands):
|
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Supplemental Consolidating Data (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operations |
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| Balance Sheet |
|
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| Cash Flows |
|
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Basis of Presentation and Use of Estimates (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2019
segment
| |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Number of reportable segments | 2 |
New Accounting Standards (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| Accounting Changes and Error Corrections [Abstract] | ||
| Lease assets | $ 54,913 | $ 60,000 |
| Lease liabilities | $ 56,498 | $ 60,000 |
Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Roll Forward] | |||
| Balance, beginning of year | $ 29,055 | $ 30,753 | $ 23,441 |
| Deferred revenue | 29,055 | 29,055 | 23,441 |
| Balance, end of period | $ 32,568 | $ 29,055 | $ 30,753 |
Revenue - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Revenue from Contract with Customer [Abstract] | ||||
| Recognized deferred revenue | $ 6.2 | $ 5.1 | $ 12.3 | $ 9.1 |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | ||||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
| Unearned revenue to be recognized | 17.6 | 17.6 | ||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
| Unearned revenue to be recognized | $ 15.0 | $ 15.0 | ||
Income Taxes (Details) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Income Tax Disclosure [Abstract] | ||
| Income tax rate | 24.10% | 24.10% |
Earnings Per Share - Reconciliation Of Earnings Per Share Basic And Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jul. 01, 2018 |
Apr. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Numerator: | ||||||
| Net income | $ 195,631 | $ 127,945 | $ 242,338 | $ 174,763 | $ 323,576 | $ 417,101 |
| Denominator: | ||||||
| Basic weighted-average shares outstanding (in shares) | 158,813 | 166,589 | 159,061 | 167,364 | ||
| Effect of dilutive securities - employee stock compensation plan (in shares) | 612 | 615 | 664 | 825 | ||
| Diluted weighted-average shares outstanding (in shares) | 159,425 | 167,204 | 159,725 | 168,189 | ||
| Earnings per common share: | ||||||
| Basic (in dollars per share) | $ 1.23 | $ 1.45 | $ 2.03 | $ 2.49 | ||
| Diluted (in dollars per share) | $ 1.23 | $ 1.45 | $ 2.03 | $ 2.48 | ||
Earnings Per Share - Additional Information (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Stock Option | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
| Shares considered anti-dilutive and excluded from computation | 1.2 | 1.5 | 1.2 | 1.3 |
Acquisition (Details) $ in Millions |
Mar. 04, 2019
USD ($)
|
|---|---|
| Business Combinations [Abstract] | |
| Assets and liabilities purchased | $ 14.9 |
| Cash paid during acquisition | 7.0 |
| Acquired goodwill | 9.5 |
| Acquired intangible Assets | $ 5.3 |
Additional Balance Sheet and Cash Flow Information - Marketable Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
| Debt securities | $ 0 | $ 10,007 | $ 0 |
| Mutual funds | 51,543 | 44,243 | 49,537 |
| Total marketable securities | $ 51,543 | $ 54,250 | $ 49,537 |
Finance Receivables - Finance Receivables, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
Apr. 01, 2018 |
Dec. 31, 2017 |
|---|---|---|---|---|---|---|
| Accounts, Notes, Loans and Financing Receivable | ||||||
| Financing receivable, gross | $ 7,789,401 | $ 7,411,816 | $ 7,507,132 | |||
| Allowance for credit losses | (194,996) | $ (190,872) | (189,885) | (193,930) | $ (190,350) | $ (192,471) |
| Finance receivables, net | 7,594,405 | 7,221,931 | 7,313,202 | |||
| Retail | ||||||
| Accounts, Notes, Loans and Financing Receivable | ||||||
| Financing receivable, gross | 6,549,707 | 6,328,201 | 6,373,926 | |||
| Allowance for credit losses | (186,722) | (181,426) | (182,098) | (187,502) | (182,150) | (186,254) |
| Wholesale | ||||||
| Accounts, Notes, Loans and Financing Receivable | ||||||
| Financing receivable, gross | 1,239,694 | 1,083,615 | 1,133,206 | |||
| Allowance for credit losses | $ (8,274) | $ (9,446) | $ (7,787) | $ (6,428) | $ (8,200) | $ (6,217) |
Additional Balance Sheet and Cash Flow Information - Inventories, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Inventory | |||
| Raw materials and work in process | $ 161,828 | $ 177,110 | $ 154,921 |
| Inventory at lower of FIFO cost or net realizable value | 529,249 | 614,767 | 517,728 |
| Excess of FIFO over LIFO cost | (58,639) | (58,639) | (52,355) |
| Inventories, net | 470,610 | 556,128 | 465,373 |
| Motorcycles | |||
| Inventory | |||
| Finished goods | 218,069 | 301,630 | 222,711 |
| Parts & accessories and general merchandise | |||
| Inventory | |||
| Finished goods | $ 149,352 | $ 136,027 | $ 140,096 |
Finance Receivables - Changes In Allowance For Credit Losses On Finance Receivables (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
| Balance, beginning of period | $ 190,872 | $ 190,350 | $ 189,885 | $ 192,471 |
| Provision for credit losses | 26,383 | 18,880 | 60,874 | 48,932 |
| Charge-offs | (35,741) | (28,947) | (80,462) | (74,028) |
| Recoveries | 13,482 | 13,647 | 24,699 | 26,555 |
| Balance, end of period | 194,996 | 193,930 | 194,996 | 193,930 |
| Retail | ||||
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
| Balance, beginning of period | 181,426 | 182,150 | 182,098 | 186,254 |
| Provision for credit losses | 27,555 | 20,652 | 60,387 | 48,721 |
| Charge-offs | (35,741) | (28,947) | (80,462) | (74,028) |
| Recoveries | 13,482 | 13,647 | 24,699 | 26,555 |
| Balance, end of period | 186,722 | 187,502 | 186,722 | 187,502 |
| Wholesale | ||||
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
| Balance, beginning of period | 9,446 | 8,200 | 7,787 | 6,217 |
| Provision for credit losses | (1,172) | (1,772) | 487 | 211 |
| Charge-offs | 0 | 0 | 0 | 0 |
| Recoveries | 0 | 0 | 0 | 0 |
| Balance, end of period | $ 8,274 | $ 6,428 | $ 8,274 | $ 6,428 |
Finance Receivables - Wholesale Finance Receivables Individually Deemed Impaired (Details) - Wholesale $ in Thousands |
3 Months Ended | 6 Months Ended |
|---|---|---|
|
Jul. 01, 2018
USD ($)
|
Jul. 01, 2018
USD ($)
|
|
| Financing Receivable, Impaired [Line Items] | ||
| Recorded investment, no related allowance | $ 0 | $ 0 |
| Recorded investment, related allowance | 251 | 251 |
| Recorded investment, total | 251 | 251 |
| Unpaid principal balance, no related allowance | 0 | 0 |
| Unpaid principal balance, related allowance | 220 | 220 |
| Unpaid principal balance, total | 220 | 220 |
| Related allowance | 184 | 184 |
| Average recorded investment, no related allowance | 0 | 0 |
| Average recorded investment, related allowance | 251 | 251 |
| Average recorded investment, total | 251 | 251 |
| Interest income recognized, no related allowance | 0 | 0 |
| Interest income recognized, related allowance | 0 | 0 |
| Interest income recognized, total | $ 0 | $ 0 |
Finance Receivables - Additional Information (Details) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Accounts, Notes, Loans and Financing Receivable | |||
| Finance receivables, gross, 90 days or more past due and accruing interest | $ 200,000 | ||
| Retail | |||
| Accounts, Notes, Loans and Financing Receivable | |||
| Threshold period past due to be charged-off | 120 days | ||
| Finance receivables, gross, 90 days or more past due and accruing interest | $ 30,400,000 | $ 41,200,000 | 22,400,000 |
| Wholesale | |||
| Accounts, Notes, Loans and Financing Receivable | |||
| Finance receivables, gross, 90 days or more past due and accruing interest | 2,100,000 | 1,100,000 | $ 100,000 |
| Wholesale receivables on non-accrual status | $ 0 | $ 0 |
Derivative Instruments and Hedging Activities - Gain Loss On Derivative Cash Flow Hedges Reclassified From AOCI Into Income (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Derivative | ||||
| Amount of Gain (Loss) Recognized in Income on Derivative | $ (1,455) | $ 195 | $ (251) | $ 201 |
| Foreign currency contracts | Motorcycle, Cost of Goods Sold | ||||
| Derivative | ||||
| Amount of Gain (Loss) Recognized in Income on Derivative | (1,004) | 0 | (117) | 0 |
| Commodity contracts | Motorcycle, Cost of Goods Sold | ||||
| Derivative | ||||
| Amount of Gain (Loss) Recognized in Income on Derivative | (310) | 195 | 7 | 201 |
| Interest rate cap | Interest rate cap | ||||
| Derivative | ||||
| Amount of Gain (Loss) Recognized in Income on Derivative | $ (141) | $ 0 | $ (141) | $ 0 |
Leases - Additional Information (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
|---|---|---|
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
| Lessee, Lease, Description [Line Items] | ||
| Renewal term | 5 years | 5 years |
| Termination period | 1 year | |
| Operating lease expense | $ 6.4 | $ 12.7 |
| Variable lease cost | $ 2.0 | $ 3.2 |
| Minimum | ||
| Lessee, Lease, Description [Line Items] | ||
| Remaining lease terms | 1 year | |
| Maximum | ||
| Lessee, Lease, Description [Line Items] | ||
| Remaining lease terms | 13 years |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| Assets | ||
| Lease assets | $ 54,913 | $ 60,000 |
| Liabilities | ||
| Accrued liabilities | 18,133 | |
| Lease liabilities | 38,365 | |
| Total lease liability | $ 56,498 | $ 60,000 |
Leases - Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
| 2019 | $ 10,474 | |
| 2020 | 16,509 | |
| 2021 | 13,167 | |
| 2022 | 9,326 | |
| 2023 | 3,770 | |
| Thereafter | 6,899 | |
| Total present value of lease payments | 60,145 | |
| Less present value discount | 3,647 | |
| Total lease liability | $ 56,498 | $ 60,000 |
Leases - Other Lease Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended |
|---|---|---|
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
| Leases [Abstract] | ||
| Operating cash outflows for amounts included in the measurement of lease liabilities | $ 4,510 | $ 9,871 |
| Right-of-use assets obtained in exchange for lease obligations | $ 3,964 | $ 4,262 |
| Weighted average remaining lease term | 4 years 5 months 8 days | 4 years 5 months 8 days |
| Weighted average discount rate | 3.20% | 3.20% |
Debt - Debt With Contractual Term Less Than One Year (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Short-term Debt | |||
| Short-term debt | $ 405,695 | $ 1,135,810 | $ 1,327,307 |
| Commercial Paper | |||
| Short-term Debt | |||
| Short-term debt | $ 405,695 | $ 1,135,810 | $ 1,327,307 |
Debt - Additional Information (Details) - May 11, 2020 Notes - Revolving Credit Facility |
1 Months Ended |
|---|---|
|
May 31, 2019
USD ($)
| |
| Debt Instrument | |
| Line of credit, maximum borrowing capacity | $ 195,000,000.0 |
| Length of option | 364 days |
Asset-Backed Financing - Quarterly Transfer Information (Details) - Secured Debt - Consolidated VIEs - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jul. 01, 2018 |
Apr. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Asset-backed U.S. commercial paper conduit facilities | U.S. Line of Credit | ||||||
| Variable Interest Entity | ||||||
| Transfers | $ 0 | $ 0 | $ 59,100 | $ 32,900 | $ 0 | $ 92,000 |
| Proceeds | 0 | 0 | 53,300 | 29,300 | 0 | 82,600 |
| Asset-backed Canadian commercial paper conduit facility | Foreign Line of Credit | ||||||
| Variable Interest Entity | ||||||
| Transfers | 28,200 | 0 | 38,900 | 7,600 | 28,200 | 46,500 |
| Proceeds | $ 23,400 | $ 0 | $ 32,200 | $ 6,200 | $ 23,400 | $ 38,400 |
Fair Value - Summary of Assets And Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Assets: | |||
| Cash equivalents | $ 619,600 | $ 998,601 | $ 691,983 |
| Marketable securities | 51,543 | 54,250 | 49,537 |
| Derivatives | 6,920 | 15,071 | 13,446 |
| Assets, fair value | 678,063 | 1,067,922 | 754,966 |
| Liabilities: | |||
| Derivatives, liabilities | 17,555 | 5,316 | 625 |
| Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
| Assets: | |||
| Cash equivalents | 619,600 | 728,800 | 446,454 |
| Marketable securities | 51,543 | 44,243 | 49,537 |
| Derivatives | 0 | 0 | 0 |
| Assets, fair value | 671,143 | 773,043 | 495,991 |
| Liabilities: | |||
| Derivatives, liabilities | 0 | 0 | 0 |
| Significant Other Observable Inputs (Level 2) | |||
| Assets: | |||
| Cash equivalents | 0 | 269,801 | 245,529 |
| Marketable securities | 0 | 10,007 | 0 |
| Derivatives | 6,920 | 15,071 | 13,446 |
| Assets, fair value | 6,920 | 294,879 | 258,975 |
| Liabilities: | |||
| Derivatives, liabilities | $ 17,555 | $ 5,316 | $ 625 |
Fair Value - Additional Information (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 01, 2018 |
|---|---|---|---|
| Fair Value Adjustment | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Repossessed inventory | $ 5.9 | $ 9.7 | $ 2.8 |
| Significant Other Observable Inputs (Level 2) | Fair Value | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Repossessed inventory | $ 19.4 | $ 20.2 | $ 16.4 |
Product Warranty and Recall Campaigns - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
Dec. 31, 2018 |
|
| Product Information | |||||
| Liability for recall campaigns | $ 47,600 | $ 27,400 | $ 47,600 | $ 27,400 | $ 73,300 |
| Supplier recoveries | $ 26,768 | $ 21,777 | 46,385 | $ 38,415 | |
| Operating Expense | |||||
| Product Information | |||||
| Supplier recoveries | $ 28,000 | ||||
| Parts & accessories and general merchandise | |||||
| Product Information | |||||
| Standard product warranty, period | 1 year | ||||
| All Countries, Excluding Japan | Motorcycles | |||||
| Product Information | |||||
| Standard product warranty, period | 2 years | ||||
| Japan | Motorcycles | |||||
| Product Information | |||||
| Standard product warranty, period | 3 years | ||||
Product Warranty and Recall Campaigns - Warranty and Recall Liability (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
| Balance, beginning of period | $ 122,387 | $ 95,075 | $ 131,740 | $ 94,202 |
| Warranties issued during the period | 17,350 | 16,904 | 28,967 | 31,510 |
| Settlements made during the period | (26,768) | (21,777) | (46,385) | (38,415) |
| Recalls and changes to pre-existing warranty liabilities | (4,165) | (259) | (5,518) | 2,646 |
| Balance, end of period | $ 108,804 | $ 89,943 | $ 108,804 | $ 89,943 |
Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Pension and SERPA Benefits: | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Service cost | $ 6,632 | $ 8,063 | $ 13,264 | $ 16,218 |
| Interest cost | 21,371 | 20,729 | 42,742 | 41,319 |
| Expected return on plan assets | (35,581) | (36,926) | (71,162) | (73,817) |
| Amortization of unrecognized: Prior service credit | (483) | (105) | (966) | (211) |
| Amortization of unrecognized: Net loss | 11,128 | 16,318 | 22,256 | 32,137 |
| Curtailment (gain) loss | 0 | 0 | 0 | 1,018 |
| Net periodic benefit cost | 3,067 | 8,079 | 6,134 | 16,664 |
| Postretirement Healthcare Benefits: | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Service cost | 1,185 | 1,789 | 2,369 | 3,601 |
| Interest cost | 2,938 | 2,886 | 5,876 | 5,783 |
| Expected return on plan assets | (3,507) | (3,541) | (7,014) | (7,082) |
| Amortization of unrecognized: Prior service credit | (595) | (460) | (1,190) | (920) |
| Amortization of unrecognized: Net loss | 69 | 454 | 138 | 908 |
| Special retirement benefits | 1,583 | 0 | 1,583 | 0 |
| Curtailment (gain) loss | (960) | 0 | (960) | 0 |
| Net periodic benefit cost | $ 713 | $ 1,128 | $ 802 | $ 2,290 |
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Pension and postretirement benefit plans | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Other comprehensive income (loss) before reclassifications | $ 0 | $ 0 | $ 0 | $ 96,374 |
Commitments and Contingencies (Details) - York, Pennsylvania Facility |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Site Contingency | |
| Site contingency portion of total cost, percentage | 47.00% |
| Navy | |
| Site Contingency | |
| Site contingency portion of total cost, percentage | 53.00% |
Business Segments - Additional Information (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2019
segment
| |
| Segment Reporting [Abstract] | |
| Number of business segments | 2 |
Business Segments - Information By Strategic Business Units (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Segment Reporting Information | ||||
| Selling, administrative and engineering expense | $ 307,617 | $ 313,047 | $ 576,242 | $ 603,233 |
| Restructuring expense (benefit) | 10,423 | 12,370 | 24,053 | 59,212 |
| Costs and expenses | 979,266 | 993,036 | 1,827,464 | 1,883,210 |
| Operating income | 256,257 | 323,947 | 423,369 | 560,364 |
| Motorcycles and Related Products | ||||
| Segment Reporting Information | ||||
| Motorcycles and Related Products | 1,434,004 | 1,525,121 | 2,629,641 | 2,889,068 |
| Restructuring expense (benefit) | 10,424 | 12,370 | 24,448 | 59,212 |
| Financial Services | ||||
| Segment Reporting Information | ||||
| Financial Services | 198,615 | 188,102 | 387,358 | 366,276 |
| Operating Segments | Motorcycles and Related Products | ||||
| Segment Reporting Information | ||||
| Motorcycles and Related Products | 1,434,004 | 1,525,121 | 2,629,641 | 2,889,068 |
| Gross profit | 454,738 | 532,085 | 802,177 | 1,005,858 |
| Selling, administrative and engineering expense | 263,587 | 276,309 | 489,015 | 530,402 |
| Restructuring expense (benefit) | 10,423 | 12,370 | 24,053 | 59,212 |
| Operating income | 180,728 | 243,406 | 289,109 | 416,244 |
| Operating Segments | Financial Services | ||||
| Segment Reporting Information | ||||
| Financial Services | 198,615 | 188,102 | 387,358 | 366,276 |
| Costs and expenses | 123,086 | 107,561 | 253,098 | 222,156 |
| Operating income | $ 75,529 | $ 80,541 | $ 134,260 | $ 144,120 |
| Label | Element | Value |
|---|---|---|
| Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,024,000 |
| Retained Earnings [Member] | ||
| Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,024,000 |