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Supplemental Consolidating Data (Tables)
9 Months Ended
Sep. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Operations
 
Three months ended September 29, 2019
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
Revenue:
 
 
 
 
 
 
 
Motorcycles and Related Products
$
1,074,397

 
$

 
$
(5,455
)
 
$
1,068,942

Financial Services

 
201,308

 
2,269

 
203,577

 
1,074,397

 
201,308

 
(3,186
)
 
1,272,519

Costs and expenses:
 
 
 
 
 
 
 
Motorcycles and Related Products cost of goods sold
748,878

 

 

 
748,878

Financial Services interest expense

 
53,390

 

 
53,390

Financial Services provision for credit losses

 
33,747

 

 
33,747

Selling, administrative and engineering expense
269,080

 
42,996

 
(3,045
)
 
309,031

Restructuring expense
7,629

 

 

 
7,629

 
1,025,587

 
130,133

 
(3,045
)
 
1,152,675

Operating income
48,810

 
71,175

 
(141
)
 
119,844

Other income (expense), net
3,160

 

 

 
3,160

Investment income
52,041

 

 
(50,000
)
 
2,041

Interest expense
7,789

 

 

 
7,789

Income before provision for income taxes
96,222

 
71,175

 
(50,141
)
 
117,256

Provision for income taxes
13,517

 
17,176

 

 
30,693

Net income
$
82,705

 
$
53,999

 
$
(50,141
)
 
$
86,563

 
 
 
 
 
 
 
 
 
Nine months ended September 29, 2019
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
Revenue:
 
 
 
 
 
 
 
Motorcycles and Related Products
$
3,714,091

 
$

 
$
(15,508
)
 
$
3,698,583

Financial Services

 
584,258

 
6,677

 
590,935

 
3,714,091

 
584,258

 
(8,831
)
 
4,289,518

Costs and expenses:
 
 
 
 
 
 
 
Motorcycles and Related Products cost of goods sold
2,576,342

 

 

 
2,576,342

Financial Services interest expense

 
158,387

 

 
158,387

Financial Services provision for credit losses

 
94,621

 

 
94,621

Selling, administrative and engineering expense
764,848

 
129,170

 
(8,745
)
 
885,273

Restructuring expense
31,682

 

 

 
31,682

 
3,372,872

 
382,178

 
(8,745
)
 
3,746,305

Operating income
341,219

 
202,080

 
(86
)
 
543,213

Other income (expense), net
11,857

 

 

 
11,857

Investment income
151,970

 

 
(140,000
)
 
11,970

Interest expense
23,304

 

 

 
23,304

Income before provision for income taxes
481,742

 
202,080

 
(140,086
)
 
543,736

Provision for income taxes
85,422

 
48,175

 

 
133,597

Net income
$
396,320

 
$
153,905

 
$
(140,086
)
 
$
410,139


 
Three months ended September 30, 2018
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
Revenue:
 
 
 
 
 
 
 
Motorcycles and Related Products
$
1,126,977

 
$

 
$
(3,032
)
 
$
1,123,945

Financial Services

 
192,188

 
(464
)
 
191,724

 
1,126,977

 
192,188

 
(3,496
)
 
1,315,669

Costs and expenses:
 
 
 
 
 
 
 
Motorcycles and Related Products cost of goods sold
776,530

 

 

 
776,530

Financial Services interest expense

 
44,696

 

 
44,696

Financial Services provision for credit losses

 
23,530

 

 
23,530

Selling, administrative and engineering expense
267,316

 
42,776

 
(3,427
)
 
306,665

Restructuring expense
14,832

 

 

 
14,832

 
1,058,678

 
111,002

 
(3,427
)
 
1,166,253

Operating income
68,299

 
81,186

 
(69
)
 
149,416

Other income (expense), net
644

 

 

 
644

Investment loss
(1,106
)
 

 

 
(1,106
)
Interest expense
7,762

 

 

 
7,762

Income before provision for income taxes
60,075

 
81,186

 
(69
)
 
141,192

Provision for income taxes
10,613

 
16,724

 

 
27,337

Net income
$
49,462

 
$
64,462

 
$
(69
)
 
$
113,855

 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
Revenue:
 
 
 
 
 
 
 
Motorcycles and Related Products
$
4,021,268

 
$

 
$
(8,255
)
 
$
4,013,013

Financial Services

 
559,436

 
(1,436
)
 
558,000

 
4,021,268

 
559,436

 
(9,691
)
 
4,571,013

Costs and expenses:
 
 
 
 
 
 
 
Motorcycles and Related Products cost of goods sold
2,659,740

 

 

 
2,659,740

Financial Services interest expense

 
145,089

 

 
145,089

Financial Services provision for credit losses

 
72,462

 

 
72,462

Selling, administrative and engineering expense
798,544

 
120,830

 
(9,476
)
 
909,898

Restructuring expense
74,044

 

 

 
74,044

 
3,532,328

 
338,381

 
(9,476
)
 
3,861,233

Operating income
488,940

 
221,055

 
(215
)
 
709,780

Other income (expense), net
1,509

 

 

 
1,509

Investment income
112,630

 

 
(110,000
)
 
2,630

Interest expense
23,180

 

 

 
23,180

Income before provision for income taxes
579,899

 
221,055

 
(110,215
)
 
690,739

Provision for income taxes
110,529

 
49,254

 

 
159,783

Net income
$
469,370

 
$
171,801

 
$
(110,215
)
 
$
530,956


Balance Sheet
 
September 29, 2019
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
482,106

 
$
380,275

 
$

 
$
862,381

Accounts receivable, net
635,997

 

 
(328,381
)
 
307,616

Finance receivables, net

 
2,210,001

 

 
2,210,001

Inventories
489,098

 

 

 
489,098

Restricted cash

 
79,115

 

 
79,115

Other current assets
109,724

 
46,013

 
(14,951
)
 
140,786

 
1,716,925

 
2,715,404

 
(343,332
)
 
4,088,997

Finance receivables, net

 
5,305,579

 

 
5,305,579

Property, plant and equipment, net
791,107

 
53,339

 

 
844,446

Goodwill
63,727

 

 

 
63,727

Deferred income taxes
92,921

 
40,411

 
(1,313
)
 
132,019

Lease assets
49,706

 
6,199

 

 
55,905

Other long-term assets
157,341

 
20,401

 
(92,185
)
 
85,557

 
$
2,871,727

 
$
8,141,333

 
$
(436,830
)
 
$
10,576,230

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Accounts payable
$
314,843

 
$
362,489

 
$
(328,381
)
 
$
348,951

Accrued liabilities
462,644

 
108,719

 
(14,373
)
 
556,990

Short-term debt

 
1,013,137

 

 
1,013,137

Current portion of long-term debt, net

 
1,779,673

 

 
1,779,673

 
777,487

 
3,264,018

 
(342,754
)
 
3,698,751

Long-term debt, net
743,127

 
3,863,914

 

 
4,607,041

Lease liabilities
33,296

 
6,112

 

 
39,408

Pension liability
82,561

 

 

 
82,561

Postretirement healthcare liability
89,032

 

 

 
89,032

Other long-term liabilities
180,103

 
40,261

 
2,854

 
223,218

Commitments and contingencies (Note 17)
 
 
 
 
 
 
 
Shareholders’ equity
966,121

 
967,028

 
(96,930
)
 
1,836,219

 
$
2,871,727

 
$
8,141,333

 
$
(436,830
)
 
$
10,576,230

 
December 31, 2018
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
544,548

 
$
659,218

 
$

 
$
1,203,766

Marketable securities
10,007

 

 

 
10,007

Accounts receivable, net
425,727

 

 
(119,253
)
 
306,474

Finance receivables, net

 
2,214,424

 

 
2,214,424

Inventories
556,128

 

 

 
556,128

Restricted cash

 
49,275

 

 
49,275

Other current assets
91,172

 
59,070

 
(5,874
)
 
144,368

 
1,627,582

 
2,981,987

 
(125,127
)
 
4,484,442

Finance receivables, net

 
5,007,507

 

 
5,007,507

Property, plant and equipment, net
847,176

 
56,956

 

 
904,132

Goodwill
55,048

 

 

 
55,048

Deferred income taxes
105,388

 
37,603

 
(1,527
)
 
141,464

Other long-term assets
144,122

 
18,680

 
(89,731
)
 
73,071

 
$
2,779,316

 
$
8,102,733

 
$
(216,385
)
 
$
10,665,664

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Accounts payable
$
258,587

 
$
145,527

 
$
(119,253
)
 
$
284,861

Accrued liabilities
496,643

 
110,063

 
(5,576
)
 
601,130

Short-term debt

 
1,135,810

 

 
1,135,810

Current portion of long-term debt, net

 
1,575,799

 

 
1,575,799

 
755,230

 
2,967,199

 
(124,829
)
 
3,597,600

Long-term debt, net
742,624

 
4,145,043

 

 
4,887,667

Pension liability
107,776

 

 

 
107,776

Postretirement healthcare liability
94,453

 

 

 
94,453

Other long-term liabilities
164,243

 
37,142

 
2,834

 
204,219

Commitments and contingencies (Note 17)
 
 
 
 
 
 
 
Shareholders’ equity
914,990

 
953,349

 
(94,390
)
 
1,773,949

 
$
2,779,316

 
$
8,102,733

 
$
(216,385
)
 
$
10,665,664

 
September 30, 2018
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
576,670

 
$
350,322

 
$

 
$
926,992

Marketable securities
10,011

 

 

 
10,011

Accounts receivable, net
640,416

 

 
(308,107
)
 
332,309

Finance receivables, net

 
2,116,386

 

 
2,116,386

Inventories
516,247

 

 

 
516,247

Restricted cash

 
36,471

 

 
36,471

Other current assets
106,259

 
44,783

 

 
151,042

 
1,849,603

 
2,547,962

 
(308,107
)
 
4,089,458

Finance receivables, net

 
5,187,176

 

 
5,187,176

Property, plant and equipment, net
833,279

 
51,681

 

 
884,960

Prepaid pension costs
140,763

 

 

 
140,763

Goodwill
55,318

 

 

 
55,318

Deferred income taxes
25,780

 
39,203

 
(1,424
)
 
63,559

Other long-term assets
151,815

 
19,799

 
(89,048
)
 
82,566

 
$
3,056,558

 
$
7,845,821

 
$
(398,579
)
 
$
10,503,800

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Accounts payable
$
291,395

 
$
327,679

 
$
(308,107
)
 
$
310,967

Accrued liabilities
483,964

 
80,427

 
441

 
564,832

Short-term debt

 
1,373,859

 

 
1,373,859

Current portion of long-term debt, net

 
1,526,156

 

 
1,526,156

 
775,359

 
3,308,121

 
(307,666
)
 
3,775,814

Long-term debt, net
742,458

 
3,454,059

 

 
4,196,517

Pension liability
54,138

 

 

 
54,138

Postretirement healthcare liability
112,798

 

 

 
112,798

Other long-term liabilities
170,464

 
38,003

 
3,094

 
211,561

Commitments and contingencies (Note 17)
 
 
 
 
 
 
 
Shareholders’ equity
1,201,341

 
1,045,638

 
(94,007
)
 
2,152,972

 
$
3,056,558

 
$
7,845,821

 
$
(398,579
)
 
$
10,503,800


Cash Flows
 
Nine months ended September 29, 2019
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
Net income
$
396,320

 
$
153,905

 
$
(140,086
)
 
$
410,139

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
168,013

 
6,596

 

 
174,609

Amortization of deferred loan origination costs

 
57,303

 

 
57,303

Amortization of financing origination fees
503

 
6,529

 

 
7,032

Provision for long-term employee benefits
10,888

 

 

 
10,888

Employee benefit plan contributions and payments
(11,166
)
 

 

 
(11,166
)
Stock compensation expense
22,869

 
2,454

 

 
25,323

Net change in wholesale finance receivables related to sales

 

 
683

 
683

Provision for credit losses

 
94,621

 

 
94,621

Deferred income taxes
5,514

 
(1,765
)
 
(214
)
 
3,535

Other, net
9,126

 
(1,372
)
 
85

 
7,839

Changes in current assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable, net
(216,961
)
 

 
209,128

 
(7,833
)
Finance receivables - accrued interest and other

 
(4,574
)
 

 
(4,574
)
Inventories
62,870

 

 

 
62,870

Accounts payable and accrued liabilities
8,729

 
207,971

 
(203,562
)
 
13,138

Derivative instruments
2,443

 
94

 

 
2,537

Other
(19,516
)
 
12,144

 
9,077

 
1,705

 
43,312

 
380,001

 
15,197

 
438,510

Net cash provided by operating activities
439,632

 
533,906

 
(124,889
)
 
848,649

Cash flows from investing activities:
 
 
 
 
 
 
 
Capital expenditures
(118,182
)
 
(2,979
)
 

 
(121,161
)
Origination of finance receivables

 
(5,757,384
)
 
2,615,758

 
(3,141,626
)
Collections on finance receivables

 
5,326,787

 
(2,630,869
)
 
2,695,918

Sales and redemptions of marketable securities
10,007

 

 

 
10,007

Acquisition of business
(7,000
)
 

 

 
(7,000
)
Other investing activities
12,388

 

 

 
12,388

Net cash used by investing activities
(102,787
)
 
(433,576
)
 
(15,111
)
 
(551,474
)

 
Nine months ended September 29, 2019
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from issuance of medium-term notes

 
546,655

 

 
546,655

Repayments of medium-term notes

 
(1,350,000
)
 

 
(1,350,000
)
Proceeds from securitization debt

 
1,021,353

 

 
1,021,353

Repayments of securitization debt

 
(244,250
)
 

 
(244,250
)
Borrowings of asset-backed commercial paper

 
177,950

 

 
177,950

Repayments of asset-backed commercial paper

 
(240,008
)
 

 
(240,008
)
Net decrease in credit facilities and unsecured commercial paper

 
(120,707
)
 

 
(120,707
)
Dividends paid
(179,409
)
 
(140,000
)
 
140,000

 
(179,409
)
Repurchase of common stock
(217,454
)
 

 

 
(217,454
)
Issuance of common stock under employee stock option plans
2,180

 

 

 
2,180

Net cash used by financing activities
(394,683
)
 
(349,007
)
 
140,000

 
(603,690
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(4,604
)
 
494

 

 
(4,110
)
Net decrease in cash, cash equivalents and restricted cash
$
(62,442
)
 
$
(248,183
)
 
$

 
$
(310,625
)
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash:
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash, beginning of period
$
544,548

 
$
715,200

 
$

 
$
1,259,748

Net decrease in cash, cash equivalents and restricted cash
(62,442
)
 
(248,183
)
 

 
(310,625
)
Cash, cash equivalents and restricted cash, end of period
$
482,106

 
$
467,017

 
$

 
$
949,123


 
Nine months ended September 30, 2018
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
Net income
$
469,370

 
$
171,801

 
$
(110,215
)
 
$
530,956

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
193,289

 
3,172

 

 
196,461

Amortization of deferred loan origination costs

 
61,213

 

 
61,213

Amortization of financing origination fees
497

 
5,710

 

 
6,207

Provision for long-term employee benefits
28,162

 

 

 
28,162

Employee benefit plan contributions and payments
(11,035
)
 

 

 
(11,035
)
Stock compensation expense
26,122

 
3,000

 

 
29,122

Net change in wholesale finance receivables related to sales

 

 
(18,400
)
 
(18,400
)
Provision for credit losses

 
72,462

 

 
72,462

Deferred income taxes
(2,991
)
 
4,343

 
105

 
1,457

Other, net
28,426

 
699

 
215

 
29,340

Changes in current assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable, net
(169,168
)
 

 
154,384

 
(14,784
)
Finance receivables - accrued interest and other

 
1,374

 

 
1,374

Inventories
8,270

 

 

 
8,270

Accounts payable and accrued liabilities
170,001

 
152,028

 
(138,423
)
 
183,606

Derivative instruments
1,124

 
103

 

 
1,227

Other
19,411

 
3,173

 
(5,667
)
 
16,917

 
292,108

 
307,277

 
(7,786
)
 
591,599

Net cash provided by operating activities
761,478

 
479,078

 
(118,001
)
 
1,122,555

Cash flows from investing activities:
 
 
 
 
 
 
 
Capital expenditures
(110,493
)
 
(9,352
)
 

 
(119,845
)
Origination of finance receivables

 
(5,845,799
)
 
2,806,639

 
(3,039,160
)
Collections on finance receivables

 
5,363,333

 
(2,798,638
)
 
2,564,695

Other investing activities
(21,753
)
 

 

 
(21,753
)
Net cash used by investing activities
(132,246
)
 
(491,818
)
 
8,001

 
(616,063
)

 
Nine months ended September 30, 2018
 
HDMC Entities
 
HDFS Entities
 
Eliminations
 
Consolidated
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from issuance of medium-term notes

 
1,144,018

 

 
1,144,018

Repayments of medium-term notes

 
(877,488
)
 

 
(877,488
)
Repayments of securitization debt

 
(224,507
)
 

 
(224,507
)
Borrowings of asset-backed commercial paper

 
120,903

 

 
120,903

Repayments of asset-backed commercial paper

 
(156,258
)
 

 
(156,258
)
Net increase in credit facilities and unsecured commercial paper

 
102,154

 

 
102,154

Dividends paid
(186,105
)
 
(110,000
)
 
110,000

 
(186,105
)
Repurchase of common stock
(195,998
)
 

 

 
(195,998
)
Issuance of common stock under employee stock option plans
3,157

 

 

 
3,157

Net cash used by financing activities
(378,946
)
 
(1,178
)
 
110,000

 
(270,124
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(11,802
)
 
(765
)
 

 
(12,567
)
Net increase (decrease) in cash, cash equivalents and restricted cash
$
238,484

 
$
(14,683
)
 
$

 
$
223,801

 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash:
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash, beginning of period
$
338,186

 
$
408,024

 
$

 
$
746,210

Net increase (decrease) in cash, cash equivalents and restricted cash
238,484

 
(14,683
)
 

 
223,801

Cash, cash equivalents and restricted cash, end of period
$
576,670

 
$
393,341

 
$

 
$
970,011