Supplemental Consolidating Data (Tables)

9 Months Ended

Sep. 27, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

	Three months ended September 27, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	969,399	$	—	$	(5,370)	$	964,029
Financial Services	—		200,448		1,207		201,655
	969,399		200,448		(4,163)		1,165,684
Costs and expenses:
Motorcycles and Related Products cost of goods sold	676,796		—		—		676,796
Financial Services interest expense	—		67,533		—		67,533
Financial Services provision for credit losses	—		7,835		—		7,835
Selling, administrative and engineering expense	199,829		35,774		(3,882)		231,721
Restructuring expense	43,581		334		—		43,915
	920,206		111,476		(3,882)		1,027,800
Operating income	49,193		88,972		(281)		137,884
Other income, net	155		—		—		155
Investment income	2,672		—		—		2,672
Interest expense	7,783		—		—		7,783
Income before income taxes	44,237		88,972		(281)		132,928
Income tax (benefit) provision	(6,347)		19,057		—		12,710
Net income	$	50,584	$	69,915	$	(281)	$	120,218
	Nine months ended September 27, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	2,743,562	$	—	$	(10,471)	$	2,733,091
Financial Services	—		591,206		4,858		596,064
	2,743,562		591,206		(5,613)		3,329,155
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,019,310		—		—		2,019,310
Financial Services interest expense	—		182,193		—		182,193
Financial Services provision for credit losses	—		178,433		—		178,433
Selling, administrative and engineering expense	627,874		111,903		(5,720)		734,057
Restructuring expense	84,586		1,278		—		85,864
	2,731,770		473,807		(5,720)		3,199,857
Operating income	11,792		117,399		107		129,298
Other income, net	466		—		—		466
Investment income	103,082		—		(100,000)		3,082
Interest expense	23,307		—				23,307
Income before income taxes	92,033		117,399		(99,893)		109,539
Income tax (benefit) provision	(14,014)		25,857		—		11,843
Net income	$	106,047	$	91,542	$	(99,893)	$	97,696

	Three months ended September 29, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		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, 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		Consolidating Adjustments		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, 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

Balance Sheet

	September 27, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	733,704	$	2,827,246	$	—	$	3,560,950
Accounts receivable, net	473,530		—		(240,685)		232,845
Finance receivables, net	—		1,701,478		—		1,701,478
Inventories, net	322,375		—		—		322,375
Restricted cash	—		160,155		—		160,155
Other current assets	81,551		102,156		(4,776)		178,931
	1,611,160		4,791,035		(245,461)		6,156,734
Finance receivables, net	—		5,142,014		—		5,142,014
Property, plant and equipment, net	736,589		48,576		—		785,165
Prepaid pension costs	82,378		—		—		82,378
Goodwill	64,884		—		—		64,884
Deferred income taxes	46,676		92,318		(1,034)		137,960
Lease assets	42,639		4,960		—		47,599
Other long-term assets	176,873		32,853		(94,185)		115,541
	$	2,761,199	$	10,111,756	$	(340,680)	$	12,532,275
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	265,263	$	264,525	$	(240,685)	$	289,103
Accrued liabilities	424,391		170,830		(3,940)		591,281
Short-term debt	—		1,227,763		—		1,227,763
Current portion of long-term debt, net	—		2,109,284		—		2,109,284
	689,654		3,772,402		(244,625)		4,217,431
Long-term debt, net	743,806		5,427,870		—		6,171,676
Lease liabilities	26,951		4,274		—		31,225
Pension liabilities	57,853		—		—		57,853
Postretirement healthcare liabilities	68,379		—		—		68,379
Other long-term liabilities	168,037		45,256		2,520		215,813
Commitments and contingencies (Note 17)
Shareholders’ equity	1,006,519		861,954		(98,575)		1,769,898
	$	2,761,199	$	10,111,756	$	(340,680)	$	12,532,275

	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

	September 29, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		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, net	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 liabilities	82,561		—		—		82,561
Postretirement healthcare liabilities	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

Cash Flows

	Nine months ended September 27, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income	$	106,047	$	91,542	$	(99,893)	$	97,696
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	133,679		6,378		—		140,057
Amortization of deferred loan origination costs	—		52,374		—		52,374
Amortization of financing origination fees	510		10,118		—		10,628
Provision for long-term employee benefits	23,557		—		—		23,557
Employee benefit plan contributions and payments	(5,456)		—		—		(5,456)
Stock compensation expense	10,959		1,117		—		12,076
Net change in wholesale finance receivables related to sales	—		—		330,793		330,793
Provision for credit losses	—		178,433		—		178,433
Deferred income taxes	6,171		(24,737)		(412)		(18,978)
Other, net	(13,628)		4,416		(108)		(9,320)
Changes in current assets and liabilities:
Accounts receivable, net	(100,672)		—		130,302		29,630
Finance receivables - accrued interest and other	—		5,097		—		5,097
Inventories, net	273,668		—		—		273,668
Accounts payable and accrued liabilities	(38,815)		154,121		(132,228)		(16,922)
Derivative financial instruments	(1,584)		41		—		(1,543)
Other	26,704		2,634		3,940		33,278
	315,093		389,992		332,287		1,037,372
Net cash provided by operating activities	421,140		481,534		232,394		1,135,068
Cash flows from investing activities:
Capital expenditures	(90,592)		(1,703)		—		(92,295)
Origination of finance receivables	—		(4,697,675)		1,824,416		(2,873,259)
Collections on finance receivables	—		4,886,976		(2,156,810)		2,730,166
Other investing activities	334		—		—		334
Net cash (used) provided by investing activities	(90,258)		187,598		(332,394)		(235,054)

	Nine months ended September 27, 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	—		(735,885)		—		(735,885)
Borrowings of asset-backed commercial paper	—		225,187		—		225,187
Repayments of asset-backed commercial paper	—		(236,846)		—		(236,846)
Net increase in unsecured commercial paper	—		509,978		—		509,978
Net increase in credit facilities	—		150,000		—		150,000
Deposits	—		29,992		—		29,992
Dividends paid	(65,002)		(100,000)		100,000		(65,002)
Repurchase of common stock	(7,895)		—		—		(7,895)
Issuance of common stock under share-based plans	96		—		—		96
Net cash (used) provided by financing activities	(72,801)		1,903,478		100,000		1,930,677
Effect of exchange rate changes on cash, cash equivalents and restricted cash	4,974		1,097		—		6,071
Net increase in cash, cash equivalents and restricted cash	$	263,055	$	2,573,707	$	—	$	2,836,762
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	470,649	$	434,717	$	—	$	905,366
Net increase in cash, cash equivalents and restricted cash	263,055		2,573,707		—		2,836,762
Cash, cash equivalents and restricted cash, end of period	$	733,704	$	3,008,424	$	—	$	3,742,128

	Nine months ended September 29, 2019
	HDMC Entities		HDFS Entities		Consolidating Adjustments		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, net	62,870		—		—		62,870
Accounts payable and accrued liabilities	8,729		207,971		(203,562)		13,138
Derivative financial 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		Consolidating Adjustments		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 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 share-based 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