Supplemental Consolidating Data

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Consolidating Data

Supplemental Consolidating Data

The supplemental consolidating data is presented for informational purposes and is different than segment information due to the allocation of consolidating reporting adjustments to the reportable segments. Supplemental consolidating data is as follows (in thousands):

	Year Ended December 31, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments			Consolidated
Revenue:
Motorcycles and Related Products	$	4,593,585	$	—	$	(20,907	)	$	4,572,678
Financial Services	—		779,163		9,948			789,111
	4,593,585		779,163		(10,959		)	5,361,789
Costs and expenses:
Motorcycles and Related Products cost of goods sold	3,229,798		—		—			3,229,798
Financial Services interest expense	—		210,438		—			210,438
Financial Services provision for credit losses	—		134,536		—			134,536
Selling, administrative and engineering expense	1,034,921		175,258		(11,123		)	1,199,056
Restructuring expense	32,353		—		—			32,353
	4,297,072		520,232		(11,123		)	4,806,181
Operating income	296,513		258,931		164			555,608
Other income (expense), net	16,514		—		—			16,514
Investment income	196,371		—		(180,000		)	16,371
Interest expense	31,078		—		—			31,078
Income before provision for income taxes	478,320		258,931		(179,836		)	557,415
Provision for income taxes	75,278		58,502		—			133,780
Net income	$	403,042	$	200,429	$	(179,836	)	$	423,635

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

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

	December 31, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	470,649	$	363,219	$	—		$	833,868
Marketable securities	—		—		—			—
Accounts receivable, net	369,717		—		(110,383		)	259,334
Finance receivables, net	—		2,272,522		—			2,272,522
Inventories, net	603,571		—		—			603,571
Restricted cash	—		64,554		—			64,554
Other current assets	110,145		59,665		(836		)	168,974
	1,554,082		2,759,960		(111,219		)	4,202,823
Finance receivables, net	—		5,101,844		—			5,101,844
Property, plant and equipment, net	794,131		53,251		—			847,382
Prepaid pension costs	56,014		—		—			56,014
Goodwill	64,160		—		—			64,160
Deferred income taxes	62,768		39,882		(1,446		)	101,204
Lease assets	55,722		5,896		—			61,618
Other long-term assets	166,972		19,211		(93,069		)	93,114
	$	2,753,849	$	7,980,044	$	(205,734	)	$	10,528,159
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	266,710	$	138,053	$	(110,383	)	$	294,380
Accrued liabilities	463,491		119,186		(389		)	582,288
Short-term debt	—		571,995		—			571,995
Current portion of long-term debt, net	—		1,748,109		—			1,748,109
	730,201		2,577,343		(110,772		)	3,196,772
Long-term debt, net	743,296		4,381,530		—			5,124,826
Lease liability	38,783		5,664		—			44,447
Pension liability	56,138		—		—			56,138
Postretirement healthcare liability	72,513		—		—			72,513
Deferred income taxes	6,219		1,916		—			8,135
Other long-term liabilities	180,033		38,693		2,603			221,329
Commitments and contingencies (Note 16)
Shareholders’ equity	926,666		974,898		(97,565		)	1,803,999
	$	2,753,849	$	7,980,044	$	(205,734	)	$	10,528,159

	December 31, 2018
	HDMC Entities		HDFS Entities		Consolidating Adjustments			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, net	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 16)
Shareholders’ equity	914,990		953,349		(94,390		)	1,773,949
	$	2,779,316	$	8,102,733	$	(216,385	)	$	10,665,664

	Year Ended December 31, 2019
	HDMC Entities			HDFS Entities			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	403,042		$	200,429		$	(179,836	)	$	423,635
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	223,656			8,881			—			232,537
Amortization of deferred loan origination costs	—			76,326			—			76,326
Amortization of financing origination fees	672			9,151			—			9,823
Provision for long-term employee benefits	13,344			—			—			13,344
Employee benefit plan contributions and payments	(13,256		)	—			—			(13,256		)
Stock compensation expense	30,396			3,337			—			33,733
Net change in wholesale finance receivables related to sales	—			—			(5,822		)	(5,822		)
Provision for credit losses	—			134,536			—			134,536
Deferred income taxes	20,952			676			(81		)	21,547
Other, net	4,425			(3,963		)	(164		)	298
Changes in current assets and liabilities:
Accounts receivable, net	53,772			—			(8,870		)	44,902
Finance receivables - accrued interest and other	—			(11,119		)	—			(11,119		)
Inventories, net	(47,576		)	—			—			(47,576		)
Accounts payable and accrued liabilities	(43,211		)	(4,107		)	28,856			(18,462		)
Derivative financial instruments	1,808			128			—			1,936
Other	(33,105		)	10,033			(5,038		)	(28,110		)
	211,877			223,879			8,881			444,637
Net cash provided by operating activities	614,919			424,308			(170,955		)	868,272
Cash flows from investing activities:
Capital expenditures	(176,264		)	(5,176		)	—			(181,440		)
Origination of finance receivables	—			(7,053,898		)	3,206,576			(3,847,322		)
Collections on finance receivables	—			6,715,338			(3,215,621		)	3,499,717
Sales and redemptions of marketable securities	10,007			—			—			10,007
Acquisition of business	(7,000		)	—			—			(7,000		)
Other investing activities	17,912			—			—			17,912
Net cash used by investing activities	(155,345		)	(343,736		)	(9,045		)	(508,126		)

	Year Ended December 31, 2019
	HDMC Entities			HDFS Entities			Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,203,236			—		1,203,236
Repayments of medium-term notes	—			(1,350,000		)	—		(1,350,000		)
Proceeds from securitization debt	—			1,021,453			—		1,021,453
Repayments of securitization debt	—			(353,251		)	—		(353,251		)
Borrowings of asset-backed commercial paper	—			177,950			—		177,950
Repayments of asset-backed commercial paper	—			(318,006		)	—		(318,006		)
Net decrease in credit facilities and unsecured commercial paper	—			(563,453		)	—		(563,453		)
Dividends paid	(237,221		)	(180,000		)	180,000		(237,221		)
Repurchase of common stock	(296,520		)	—			—		(296,520		)
Issuance of common stock under employee stock option plans	3,589			—			—		3,589
Net cash used by financing activities	(530,152		)	(362,071		)	180,000		(712,223		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(3,321		)	1,016			—		(2,305		)
Net decrease in cash, cash equivalents and restricted cash	$	(73,899	)	$	(280,483	)	$	—	$	(354,382	)
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	(73,899		)	(280,483		)	—		(354,382		)
Cash, cash equivalents and restricted cash, end of period	$	470,649		$	434,717		$	—	$	905,366

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

	Year Ended December 31, 2018
	HDMC Entities			HDFS Entities			Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			1,591,828			—		1,591,828
Repayments of medium-term notes	—			(877,488		)	—		(877,488		)
Repayments of securitization debt	—			(257,869		)	—		(257,869		)
Borrowings of asset-backed commercial paper	—			509,742			—		509,742
Repayments of asset-backed commercial paper	—			(212,729		)	—		(212,729		)
Net decrease in credit facilities and unsecured commercial paper	—			(135,356		)	—		(135,356		)
Dividends paid	(245,810		)	(235,000		)	235,000		(245,810		)
Repurchase of common stock	(390,606		)	—			—		(390,606		)
Issuance of common stock under employee stock option plans	3,525			—			—		3,525
Net cash (used by) provided by financing activities	(632,891		)	383,128			235,000		(14,763		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(13,826		)	(1,525		)	—		(15,351		)
Net increase in cash, cash equivalents and restricted cash	$	206,362		$	307,176		$	—	$	513,538
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	338,186		$	408,024		$	—	$	746,210
Net increase in cash, cash equivalents and restricted cash	206,362			307,176			—		513,538
Cash, cash equivalents and restricted cash, end of period	$	544,548		$	715,200		$	—	$	1,259,748

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

	Year Ended December 31, 2017
	HDMC Entities			HDFS Entities			Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—			893,668			—		893,668
Repayments of medium-term notes	—			(800,000		)	—		(800,000		)
Repayments of securitization debt	—			(444,671		)	—		(444,671		)
Borrowings of asset-backed commercial paper	—			469,932			—		469,932
Repayments of asset-backed commercial paper	—			(176,227		)	—		(176,227		)
Net increase in credit facilities and unsecured commercial paper	—			212,809			—		212,809
Dividends paid	(251,862		)	(196,000		)	196,000		(251,862		)
Repurchase of common stock	(465,263		)	—			—		(465,263		)
Issuance of common stock under employee stock option plans	11,353			—			—		11,353
Net cash used by financing activities	(705,772		)	(40,489		)	196,000		(550,261		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	25,844			903			—		26,747
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(87,354	)	$	6,433		$	—	$	(80,921	)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	425,540		$	401,591		$	—	$	827,131
Net (decrease) increase in cash, cash equivalents and restricted cash	(87,354		)	6,433			—		(80,921		)
Cash, cash equivalents and restricted cash, end of period	$	338,186		$	408,024		$	—	$	746,210