Supplemental Consolidating Data (Tables)

3 Months Ended

Mar. 29, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Three months ended March 29, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	1,103,258	$	—	$	(3,470)	$	1,099,788
Financial Services	—		195,886		2,570		198,456
	1,103,258		195,886		(900)		1,298,244
Costs and expenses:
Motorcycles and Related Products cost of goods sold	780,868		—		—		780,868
Financial Services interest expense	—		52,473		—		52,473
Financial Services provision for credit losses	—		79,419		—		79,419
Selling, administrative and engineering expense	237,746		41,439		(1,214)		277,971
	1,018,614		173,331		(1,214)		1,190,731
Operating income	84,644		22,555		314		107,513
Other income, net	155		—		—		155
Investment income (loss)	94,653		—		(100,000)		(5,347)
Interest expense	7,755		—		—		7,755
Income before provision for income taxes	171,697		22,555		(99,686)		94,566
Provision for income taxes	19,271		5,600		—		24,871
Net income	$	152,426	$	16,955	$	(99,686)	$	69,695

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

Balance Sheet

	March 29, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	415,514	$	1,049,547	$	—	$	1,465,061
Accounts receivable, net	551,786		—		(252,638)		299,148
Finance receivables, net	—		2,358,989		—		2,358,989
Inventories, net	610,924		—		—		610,924
Restricted cash	—		99,903		—		99,903
Other current assets	103,630		43,055		(4,328)		142,357
	1,681,854		3,551,494		(256,966)		4,976,382
Finance receivables, net	—		4,933,418		—		4,933,418
Property, plant and equipment, net	774,985		51,860		—		826,845
Prepaid pension costs	64,802		—		—		64,802
Goodwill	64,063		—		—		64,063
Deferred income taxes	49,906		79,026		(1,076)		127,856
Lease assets	50,907		5,589		—		56,496
Other long-term assets	163,319		20,815		(94,049)		90,085
	$	2,849,836	$	8,642,202	$	(352,091)	$	11,139,947
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	306,677	$	279,372	$	(252,638)	$	333,411
Accrued liabilities	446,792		141,287		(3,544)		584,535
Short-term debt	—		1,335,664		—		1,335,664
Current portion of long-term debt, net	—		2,326,460		—		2,326,460
	753,469		4,082,783		(256,182)		4,580,070
Long-term debt, net	743,466		3,734,612		—		4,478,078
Lease liabilities	34,848		5,205		—		40,053
Pension liabilities	56,900		—		—		56,900
Postretirement healthcare liabilities	71,154		—		—		71,154
Other long-term liabilities	176,109		43,277		2,323		221,709
Commitments and contingencies (Note 17)
Shareholders’ equity	1,013,890		776,325		(98,232)		1,691,983
	$	2,849,836	$	8,642,202	$	(352,091)	$	11,139,947

	December 31, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	470,649	$	363,219	$	—	$	833,868
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 liabilities	38,783		5,664		—		44,447
Pension liabilities	56,138		—		—		56,138
Postretirement healthcare liabilities	72,513		—		—		72,513
Other long-term liabilities	186,252		40,609		2,603		229,464
Commitments and contingencies (Note 17)
Shareholders’ equity	926,666		974,898		(97,565)		1,803,999
	$	2,753,849	$	7,980,044	$	(205,734)	$	10,528,159

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

Cash Flows

	Three months ended March 29, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income	$	152,426	$	16,955	$	(99,686)	$	69,695
Adjustments to reconcile Net income to Net cash provided (used) by operating activities:
Depreciation and amortization	45,383		2,044		—		47,427
Amortization of deferred loan origination costs	—		16,739		—		16,739
Amortization of financing origination fees	170		2,829		—		2,999
Provision for long-term employee benefits	7,852		—		—		7,852
Employee benefit plan contributions and payments	(1,608)		—		—		(1,608)
Stock compensation expense	2,915		981		—		3,896
Net change in wholesale finance receivables related to sales	—		—		(208,183)		(208,183)
Provision for credit losses	—		79,419		—		79,419
Deferred income taxes	5,137		(8,570)		(370)		(3,803)
Other, net	(2,247)		6,139		(313)		3,579
Changes in current assets and liabilities:
Accounts receivable, net	(189,527)		—		142,255		(47,272)
Finance receivables - accrued interest and other	—		4,007		—		4,007
Inventories, net	(23,943)		—		—		(23,943)
Accounts payable and accrued liabilities	32,736		122,438		(144,612)		10,562
Derivative financial instruments	2,779		33		—		2,812
Other	16,200		7,549		3,491		27,240
	(104,153)		233,608		(207,732)		(78,277)
Net cash provided (used) by operating activities	48,273		250,563		(307,418)		(8,582)
Cash flows from investing activities:
Capital expenditures	(32,275)		(653)		—		(32,928)
Origination of finance receivables	—		(1,598,240)		818,179		(780,061)
Collections on finance receivables	—		1,452,022		(610,761)		841,261
Other investing activities	16		—		—		16
Net cash (used) provided by investing activities	(32,259)		(146,871)		207,418		28,288

	Three months ended March 29, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Repayments of medium-term notes	—		(600,000)		—		(600,000)
Proceeds from securitization debt	—		522,694		—		522,694
Repayments of securitization debt	—		(130,918)		—		(130,918)
Borrowings of asset-backed commercial paper	—		225,187		—		225,187
Repayments of asset-backed commercial paper	—		(67,809)		—		(67,809)
Net increase in unsecured commercial paper	—		772,208		—		772,208
Dividends paid	(58,817)		(100,000)		100,000		(58,817)
Repurchase of common stock	(7,071)		—		—		(7,071)
Issuance of common stock under share-based plans	34		—		—		34
Net cash (used) provided by financing activities	(65,854)		621,362		100,000		655,508
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(5,295)		(437)		—		(5,732)
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(55,135)	$	724,617	$	—	$	669,482
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	470,649	$	434,717	$	—	$	905,366
Net (decrease) increase in cash, cash equivalents and restricted cash	(55,135)		724,617		—		669,482
Cash, cash equivalents and restricted cash, end of period	$	415,514	$	1,159,334	$	—	$	1,574,848

	Three months ended March 31, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income	$	129,414	$	43,453	$	(44,922)	$	127,945
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	62,187		2,185		—		64,372
Amortization of deferred loan origination costs	—		18,968		—		18,968
Amortization of financing origination fees	167		2,027		—		2,194
Provision for long-term employee benefits	3,156		—		—		3,156
Employee benefit plan contributions and payments	(2,507)		—		—		(2,507)
Stock compensation expense	5,845		692		—		6,537
Net change in wholesale finance receivables related to sales	—		—		(237,569)		(237,569)
Provision for credit losses	—		34,491		—		34,491
Deferred income taxes	6,195		314		(528)		5,981
Other, net	1,886		922		(77)		2,731
Changes in current assets and liabilities:
Accounts receivable, net	(243,734)		—		193,988		(49,746)
Finance receivables - accrued interest and other	—		92		—		92
Inventories, net	(40,600)		—		—		(40,600)
Accounts payable and accrued liabilities	122,462		180,980		(179,467)		123,975
Derivative financial instruments	834		33		—		867
Other	(41,339)		18,997		(5,874)		(28,216)
	(125,448)		259,701		(229,527)		(95,274)
Net cash provided by operating activities	3,966		303,154		(274,449)		32,671
Cash flows from investing activities:
Capital expenditures	(34,657)		(598)		—		(35,255)
Origination of finance receivables	—		(1,691,416)		840,044		(851,372)
Collections on finance receivables	—		1,426,419		(610,595)		815,824
Acquisition of business	(7,000)		—		—		(7,000)
Other investing activities	603		—		—		603
Net cash used by investing activities	(41,054)		(265,595)		229,449		(77,200)

	Three months ended March 31, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—		546,655		—		546,655
Repayments of medium-term notes	—		(750,000)		—		(750,000)
Repayments of securitization debt	—		(76,505)		—		(76,505)
Repayments of asset-backed commercial paper	—		(72,401)		—		(72,401)
Net increase in credit facilities and unsecured commercial paper	—		58,527		—		58,527
Dividends paid	(60,859)		(45,000)		45,000		(60,859)
Repurchase of common stock	(61,712)		—		—		(61,712)
Issuance of common stock under share-based plans	616		—		—		616
Net cash used by financing activities	(121,955)		(338,724)		45,000		(415,679)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,115)		706		—		(409)
Net decrease in cash, cash equivalents and restricted cash	$	(160,158)	$	(300,459)	$	—	$	(460,617)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	544,548	$	715,200	$	—	$	1,259,748
Net decrease in cash, cash equivalents and restricted cash	(160,158)		(300,459)		—		(460,617)
Cash, cash equivalents and restricted cash, end of period	$	384,390	$	414,741	$	—	$	799,131