XML 26 R15.htm IDEA: XBRL DOCUMENT v3.21.1
Additional Balance Sheet and Cash Flow Information
 3 Months Ended
Mar. 28, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Additional Balance Sheet and Cash Flow Information Additional Balance Sheet and Cash Flow Information
Investments in Marketable Securities – The Company’s investments in marketable securities consisted of the following (in thousands):
March 28,
2021		December 31,
2020		March 29,
2020
Mutual funds$50,239 $52,061 $44,144 
Mutual funds, included in Other long-term assets on the Consolidated balance sheets, are carried at fair value with gains and losses recorded in income. Mutual funds are held to support certain deferred compensation obligations.
Inventories, net – Substantially all inventories located in the U.S. are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Inventories, net consisted of the following (in thousands):
March 28,
2021		December 31,
2020		March 29,
2020
Raw materials and work in process$251,199 $211,979 $245,384 
Motorcycle finished goods185,590 281,132 272,648 
Parts & Accessories and General Merchandise88,291 84,469 149,318 
Inventory at lower of FIFO cost or net realizable value525,080 577,580 667,350 
Excess of FIFO over LIFO cost(54,083)(54,083)(56,426)
$470,997 $523,497 $610,924 
Deposits – Beginning in 2020, HDFS began offering brokered certificates of deposit to customers indirectly through contractual arrangements with third-party banks and/or securities brokerage firms through its bank subsidiary. The Company had $152.7 million and $80.0 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of March 28, 2021 and December 31, 2020, respectively. There were no deposits as of March 29, 2020. The liabilities for deposits are included in Short-term deposits, net or Long-term deposits, net on the Consolidated balance sheets based upon the term of each brokered certificate of deposit issued. Each separate brokered certificate of deposit is issued under a master certificate, and as such, all outstanding brokered certificates of deposit are considered below the Federal Deposit Insurance Corporation insurance coverage limits.
Future maturities of the Company's certificates of deposit as of March 28, 2021 were as follows (in thousands):
2021$80,000 
202214,000 
20237,000 
202422,000 
2025— 
Thereafter30,000 
Unamortized fees(347)
$152,653 
Operating Cash Flow – The reconciliation of Net income to Net cash provided (used) by operating activities was as follows (in thousands):
 Three months ended
March 28,
2021		March 29,
2020
Cash flows from operating activities:
Net income$259,144 $69,695 
Adjustments to reconcile Net income to Net cash provided (used) by operating activities:
Depreciation and amortization40,221 47,427 
Amortization of deferred loan origination costs19,200 16,739 
Amortization of financing origination fees3,614 2,999 
Provision for long-term employee benefits7,090 7,852 
Employee benefit plan contributions and payments(9,885)(1,608)
Stock compensation expense8,968 3,896 
Net change in wholesale finance receivables related to sales(308,532)(208,183)
Provision for credit losses(22,474)79,419 
Deferred income taxes13,192 (3,803)
Other, net1,171 3,579 
Changes in current assets and liabilities:
Accounts receivable, net(79,012)(47,272)
Finance receivables – accrued interest and other
8,947 4,007 
Inventories, net45,086 (23,943)
Accounts payable and accrued liabilities153,597 10,562 
Derivative financial instruments(3,309)2,812 
Other25,763 27,240 
(96,363)(78,277)
Net cash provided (used) by operating activities$162,781 $(8,582)