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Supplemental Consolidating Data

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 for 2020 is as follows (in thousands):


	Year Ended December 31, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	3,279,407	$	—	$	(15,353)	$	3,264,054
Financial Services	—		783,421		6,902		790,323
	3,279,407		783,421		(8,451)		4,054,377
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,435,745		—		—		2,435,745
Financial Services interest expense	—		246,447		—		246,447
Financial Services provision for credit losses	—		181,870		—		181,870
Selling, administrative and engineering expense	907,257		152,258		(8,888)		1,050,627
Restructuring expense	119,110		10,899		—		130,009
	3,462,112		591,474		(8,888)		4,044,698
Operating (loss) income	(182,705)		191,947		437		9,679
Other expense, net	(1,848)		—		—		(1,848)
Investment income	107,560		—		(100,000)		7,560
Interest expense	31,121		—		—		31,121
(Loss) income before income taxes	(108,114)		191,947		(99,563)		(15,730)
Income tax (benefit) provision	(59,231)		42,203		—		(17,028)
Net (loss) income	$	(48,883)	$	149,744	$	(99,563)	$	1,298


	December 31, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	666,161	$	2,591,042	$	—	$	3,257,203

Accounts receivable, net	220,110		—		(77,028)		143,082
Finance receivables, net	—		1,509,539		—		1,509,539
Inventories, net	523,497		—		—		523,497
Restricted cash	—		131,642		—		131,642
Other current assets	93,510		190,690		(3,730)		280,470
	1,503,278		4,422,913		(80,758)		5,845,433
Finance receivables, net	—		4,933,469		—		4,933,469
Property, plant and equipment, net	709,845		33,939		—		743,784
Pension and postretirement assets	95,711		—		—		95,711
Goodwill	65,976		—		—		65,976
Deferred income taxes	69,688		90,011		(1,161)		158,538
Lease assets	40,564		4,639		—		45,203
Other long-term assets	184,300		33,115		(94,928)		122,487
	$	2,669,362	$	9,518,086	$	(176,847)	$	12,010,601
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	277,429	$	90,503	$	(77,028)	$	290,904
Accrued liabilities	444,786		115,506		(3,078)		557,214
Deposits	—		79,965		—		79,965
Short-term debt	—		1,014,274		—		1,014,274
Current portion of long-term debt, net	—		2,039,597		—		2,039,597
	722,215		3,339,845		(80,106)		3,981,954
Long-term debt, net	743,977		5,188,956		—		5,932,933
Lease liability	26,313		3,802		—		30,115
Pension and postretirement liabilities	114,206		—		—		114,206

Deferred income taxes	7,166		1,441		—		8,607
Other long-term liabilities	171,242		46,514		2,245		220,001
Commitments and contingencies (Note 16)
Shareholders’ equity	884,243		937,528		(98,986)		1,722,785
	$	2,669,362	$	9,518,086	$	(176,847)	$	12,010,601


	Year Ended December 31, 2020
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net (loss) income	$	(48,883)	$	149,744	$	(99,563)	$	1,298
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	177,113		8,602		—		185,715
Amortization of deferred loan origination costs	—		71,142		—		71,142
Amortization of financing origination fees	681		13,754		—		14,435
Provision for long-term employee benefits	40,833		—		—		40,833
Employee benefit plan contributions and payments	(20,722)		—		—		(20,722)
Stock compensation expense	17,905		1,859		3,730		23,494
Net change in wholesale finance receivables related to sales	—		—		531,701		531,701
Provision for credit losses	—		181,870		—		181,870

Deferred income taxes	(19,097)		(24,697)		(285)		(44,079)
Other, net	544		13,718		(436)		13,826
Changes in current assets and liabilities:
Accounts receivable, net	161,012		—		(33,355)		127,657
Finance receivables - accrued interest and other	—		7,418		—		7,418
Inventories, net	80,858		—		—		80,858
Accounts payable and accrued liabilities	(34,755)		(40,851)		32,519		(43,087)

Derivative financial instruments	(3,566)		85		—		(3,481)
Other	13,929		(4,081)		(836)		9,012
	414,735		228,819		533,038		1,176,592
Net cash provided by operating activities	365,852		378,563		433,475		1,177,890
Cash flows from investing activities:
Capital expenditures	(128,798)		(2,252)		—		(131,050)
Origination of finance receivables	—		(5,616,347)		2,118,861		(3,497,486)
Collections on finance receivables	—		6,192,625		(2,652,336)		3,540,289




Other investing activities	18,073		3,391		—		21,464
Net cash (used) provided by investing activities	(110,725)		577,417		(533,475)		(66,783)


	Year Ended December 31, 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	—		(1,041,751)		—		(1,041,751)
Borrowings of asset-backed commercial paper	—		225,187		—		225,187
Repayments of asset-backed commercial paper	—		(318,828)		—		(318,828)
Net increase in unsecured commercial paper	—		444,380		—		444,380

Deposits	—		79,947		—		79,947
Dividends paid	(68,087)		(100,000)		100,000		(68,087)
Repurchase of common stock	(8,006)		—		—		(8,006)

Issuance of common stock under share-based plans	89		—		—		89
Net cash (used) provided by financing activities	(76,004)		1,349,987		100,000		1,373,983
Effect of exchange rate changes on cash, cash equivalents and restricted cash	16,389		2,323		—		18,712






Net increase in cash, cash equivalents and restricted cash	$	195,512	$	2,308,290	$	—	$	2,503,802


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	195,512		2,308,290		—		2,503,802
Cash, cash equivalents and restricted cash, end of period	$	666,161	$	2,743,007	$	—	$	3,409,168