Supplemental Consolidating Data (Tables)

6 Months Ended

Jun. 28, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Three months ended June 28, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	670,905	$	—	$	(1,631)	$	669,274
Financial Services	—		194,872		1,081		195,953
	670,905		194,872		(550)		865,227
Costs and expenses:
Motorcycles and Related Products cost of goods sold	561,646		—		—		561,646
Financial Services interest expense	—		62,187		—		62,187
Financial Services provision for credit losses	—		91,179		—		91,179
Selling, administrative and engineering expense	190,300		34,690		(625)		224,365
Restructuring expense	41,005		944		—		41,949
	792,951		189,000		(625)		981,326
Operating (loss) income	(122,046)		5,872		75		(116,099)
Other income, net	156		—		—		156
Investment income	5,757		—		—		5,757
Interest expense	7,769		—		—		7,769
(Loss) income before income taxes	(123,902)		5,872		75		(117,955)
Income tax (benefit) provision	(26,938)		1,200		—		(25,738)
Net (loss) income	$	(96,964)	$	4,672	$	75	$	(92,217)
	Six months ended June 28, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	1,774,163	$	—	$	(5,101)	$	1,769,062
Financial Services	—		390,758		3,651		394,409
	1,774,163		390,758		(1,450)		2,163,471
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,342,514		—		—		1,342,514
Financial Services interest expense	—		114,660		—		114,660
Financial Services provision for credit losses	—		170,598		—		170,598
Selling, administrative and engineering expense	428,046		76,129		(1,839)		502,336
Restructuring expense	41,005		944		—		41,949
	1,811,565		362,331		(1,839)		2,172,057
Operating (loss) income	(37,402)		28,427		389		(8,586)
Other income, net	311		—		—		311
Investment income	100,410		—		(100,000)		410
Interest expense	15,524		—				15,524
Income (loss) before income taxes	47,795		28,427		(99,611)		(23,389)
Income tax (benefit) provision	(7,667)		6,800		—		(867)
Net income (loss)	$	55,462	$	21,627	$	(99,611)	$	(22,522)

	Three months ended June 30, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	1,439,685	$	—	$	(5,681)	$	1,434,004
Financial Services	—		196,197		2,418		198,615
	1,439,685		196,197		(3,263)		1,632,619
Costs and expenses:
Motorcycles and Related Products cost of goods sold	978,761		—		505		979,266
Financial Services interest expense	—		52,673		—		52,673
Financial Services provision for credit losses	—		26,383		—		26,383
Selling, administrative and engineering expense	267,777		43,586		(3,746)		307,617
Restructuring expense	10,423		—		—		10,423
	1,256,961		122,642		(3,241)		1,376,362
Operating income	182,724		73,555		(22)		256,257
Other income, net	4,037		—		—		4,037
Investment income	48,571		—		(45,000)		3,571
Interest expense	7,784		—		—		7,784
Income before provision for income taxes	227,548		73,555		(45,022)		256,081
Provision for income taxes	43,348		17,102		—		60,450
Net income	$	184,200	$	56,453	$	(45,022)	$	195,631
	Six months ended June 30, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	2,639,694	$	—	$	(10,053)	$	2,629,641
Financial Services	—		382,950		4,408		387,358
	2,639,694		382,950		(5,645)		3,016,999
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,827,464		—		—		1,827,464
Financial Services interest expense	—		104,997		—		104,997
Financial Services provision for credit losses	—		60,874		—		60,874
Selling, administrative and engineering expense	495,769		86,174		(5,701)		576,242
Restructuring expense	24,053		—		—		24,053
	2,347,286		252,045		(5,701)		2,593,630
Operating income	292,408		130,905		56		423,369
Other income, net	8,697		—		—		8,697
Investment income	99,929		—		(90,000)		9,929
Interest expense	15,515		—		—		15,515
Income before provision for income taxes	385,519		130,905		(89,944)		426,480
Provision for income taxes	71,905		30,999		—		102,904
Net income	$	313,614	$	99,906	$	(89,944)	$	323,576

Balance Sheet

	June 28, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	446,425	$	3,410,172	$	—	$	3,856,597
Accounts receivable, net	564,922		—		(293,491)		271,431
Finance receivables, net	—		1,901,620		—		1,901,620
Inventories, net	429,339		—		—		429,339
Restricted cash	—		189,712		—		189,712
Other current assets	119,591		66,387		(22,843)		163,135
	1,560,277		5,567,891		(316,334)		6,811,834
Finance receivables, net	—		5,078,371		—		5,078,371
Property, plant and equipment, net	766,546		50,443		—		816,989
Prepaid pension costs	73,589		—		—		73,589
Goodwill	64,192		—		—		64,192
Deferred income taxes	48,326		94,215		(975)		141,566
Lease assets	47,754		5,277		—		53,031
Other long-term assets	176,358		33,840		(93,618)		116,580
	$	2,737,042	$	10,830,037	$	(410,927)	$	13,156,152
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	272,996	$	337,957	$	(293,491)	$	317,462
Accrued liabilities	446,819		179,478		(22,087)		604,210
Short-term debt	—		1,547,388		—		1,547,388
Current portion of long-term debt, net	—		2,186,037		—		2,186,037
	719,815		4,250,860		(315,578)		4,655,097
Long-term debt, net	743,635		5,744,864		—		6,488,499
Lease liabilities	31,652		4,742		—		36,394
Pension liabilities	57,033		—		—		57,033
Postretirement healthcare liabilities	69,964		—		—		69,964
Other long-term liabilities	178,210		44,873		2,377		225,460
Commitments and contingencies (Note 17)
Shareholders’ equity	936,733		784,698		(97,726)		1,623,705
	$	2,737,042	$	10,830,037	$	(410,927)	$	13,156,152

	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

	June 30, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	560,446	$	364,192	$	—	$	924,638
Accounts receivable, net	671,719		—		(346,413)		325,306
Finance receivables, net	—		2,362,125		—		2,362,125
Inventories, net	470,610		—		—		470,610
Restricted cash	—		82,248		—		82,248
Other current assets	102,956		44,278		—		147,234
	1,805,731		2,852,843		(346,413)		4,312,161
Finance receivables, net	—		5,232,280		—		5,232,280
Property, plant and equipment, net	801,871		54,127		—		855,998
Goodwill	64,449		—		—		64,449
Deferred income taxes	96,914		38,928		(1,203)		134,639
Lease assets	48,415		6,498		—		54,913
Other long-term assets	157,061		20,159		(91,344)		85,876
	$	2,974,441	$	8,204,835	$	(438,960)	$	10,740,316
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	302,137	$	368,740	$	(346,413)	$	324,464
Accrued liabilities	497,019		118,256		630		615,905
Short-term debt	—		405,695		—		405,695
Current portion of long-term debt, net	—		2,396,188		—		2,396,188
	799,156		3,288,879		(345,783)		3,742,252
Long-term debt, net	742,959		3,907,217		—		4,650,176
Lease liabilities	31,809		6,556		—		38,365
Pension liabilities	92,750		—		—		92,750
Postretirement healthcare liabilities	92,539		—		—		92,539
Other long-term liabilities	171,509		39,314		2,770		213,593
Commitments and contingencies (Note 17)
Shareholders’ equity	1,043,719		962,869		(95,947)		1,910,641
	$	2,974,441	$	8,204,835	$	(438,960)	$	10,740,316

Cash Flows

	Six months ended June 28, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income (loss)	$	55,462	$	21,627	$	(99,611)	$	(22,522)
Adjustments to reconcile Net income (loss) to Net cash provided by operating activities:
Depreciation and amortization	91,298		4,156		—		95,454
Amortization of deferred loan origination costs	—		33,796		—		33,796
Amortization of financing origination fees	339		6,322		—		6,661
Provision for long-term employee benefits	15,704		—		—		15,704
Employee benefit plan contributions and payments	(3,678)		—		—		(3,678)
Stock compensation expense	4,019		549		—		4,568
Net change in wholesale finance receivables related to sales	—		—		166,049		166,049
Provision for credit losses	—		170,598		—		170,598
Deferred income taxes	5,602		(24,592)		(471)		(19,461)
Other, net	(12,635)		3,730		(389)		(9,294)
Changes in current assets and liabilities:
Accounts receivable, net	(198,855)		—		183,108		(15,747)
Finance receivables - accrued interest and other	—		(2,985)		—		(2,985)
Inventories, net	163,700		—		—		163,700
Accounts payable and accrued liabilities	(1,001)		214,864		(203,199)		10,664
Derivative financial instruments	1,622		(84)		—		1,538
Other	(9,999)		3,150		22,007		15,158
	56,116		409,504		167,105		632,725
Net cash provided by operating activities	111,578		431,131		67,494		610,203
Cash flows from investing activities:
Capital expenditures	(65,677)		(1,349)		—		(67,026)
Origination of finance receivables	—		(3,033,567)		1,163,998		(1,869,569)
Collections on finance receivables	—		3,117,190		(1,331,492)		1,785,698
Other investing activities	(381)		—		—		(381)
Net cash (used) provided by investing activities	(66,058)		82,274		(167,494)		(151,278)

	Six months ended June 28, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—		1,396,602		—		1,396,602
Repayments of medium-term notes	—		(1,400,000)		—		(1,400,000)
Proceeds from securitization debt	—		2,064,450		—		2,064,450
Repayments of securitization debt	—		(369,613)		—		(369,613)
Borrowings of asset-backed commercial paper	—		225,187		—		225,187
Repayments of asset-backed commercial paper	—		(143,306)		—		(143,306)
Net increase in unsecured commercial paper	—		831,354		—		831,354
Net increase in credit facilities	—		150,000		—		150,000
Deposits	—		17,995		—		17,995
Dividends paid	(61,917)		(100,000)		100,000		(61,917)
Repurchase of common stock	(7,156)		—		—		(7,156)
Issuance of common stock under share-based plans	41		—		—		41
Net cash (used) provided by financing activities	(69,032)		2,672,669		100,000		2,703,637
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(712)		330		—		(382)
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(24,224)	$	3,186,404	$	—	$	3,162,180
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	(24,224)		3,186,404		—		3,162,180
Cash, cash equivalents and restricted cash, end of period	$	446,425	$	3,621,121	$	—	$	4,067,546

	Six months ended June 30, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income	$	313,614	$	99,906	$	(89,944)	$	323,576
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	121,026		4,360		—		125,386
Amortization of deferred loan origination costs	—		38,036		—		38,036
Amortization of financing origination fees	335		4,187		—		4,522
Provision for long-term employee benefits	6,936		—		—		6,936
Employee benefit plan contributions and payments	(3,637)		—		—		(3,637)
Stock compensation expense	15,672		1,613		—		17,285
Net change in wholesale finance receivables related to sales	—		—		(167,594)		(167,594)
Provision for credit losses	—		60,874		—		60,874
Deferred income taxes	5,928		(236)		(324)		5,368
Other, net	(8,545)		(1,876)		(56)		(10,477)
Changes in current assets and liabilities:
Accounts receivable, net	(244,752)		—		227,160		(17,592)
Finance receivables - accrued interest and other	—		(4,963)		—		(4,963)
Inventories, net	88,146		—		—		88,146
Accounts payable and accrued liabilities	21,336		221,959		(208,925)		34,370
Derivative financial instruments	4,291		61		—		4,352
Other	(15,573)		13,091		(5,874)		(8,356)
	(8,837)		337,106		(155,613)		172,656
Net cash provided by operating activities	304,777		437,012		(245,557)		496,232
Cash flows from investing activities:
Capital expenditures	(81,698)		(1,531)		—		(83,229)
Origination of finance receivables	—		(3,936,208)		1,871,309		(2,064,899)
Collections on finance receivables	—		3,484,581		(1,715,752)		1,768,829
Sales and redemptions of marketable securities	10,007		—		—		10,007
Acquisition of business	(7,000)		—		—		(7,000)
Other investing activities	11,717		—		—		11,717
Net cash used by investing activities	(66,974)		(453,158)		155,557		(364,575)

	Six months ended June 30, 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)
Proceeds from securitization debt	—		1,021,353		—		1,021,353
Repayments of securitization debt	—		(113,806)		—		(113,806)
Borrowings of asset-backed commercial paper	—		23,373		—		23,373
Repayments of asset-backed commercial paper	—		(155,286)		—		(155,286)
Net decrease in unsecured commercial paper	—		(728,606)		—		(728,606)
Dividends paid	(120,841)		(90,000)		90,000		(120,841)
Repurchase of common stock	(104,621)		—		—		(104,621)
Issuance of common stock under share-based plans	833		—		—		833
Net cash used by financing activities	(224,629)		(246,317)		90,000		(380,946)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	2,724		715		—		3,439
Net increase (decrease) in cash, cash equivalents and restricted cash	$	15,898	$	(261,748)	$	—	$	(245,850)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	544,548	$	715,200	$	—	$	1,259,748
Net increase (decrease) in cash, cash equivalents and restricted cash	15,898		(261,748)		—		(245,850)
Cash, cash equivalents and restricted cash, end of period	$	560,446	$	453,452	$	—	$	1,013,898