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Supplemental Consolidating Data

3 Months Ended

Mar. 28, 2021

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 adjustments to the reportable segments. Supplemental consolidating data is as follows (in thousands):


	Three months ended March 28, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	1,238,468	$	—	$	(6,361)	$	1,232,107
Financial Services	—		188,750		1,650		190,400
	1,238,468		188,750		(4,711)		1,422,507
Costs and expenses:
Motorcycles and Related Products cost of goods sold	811,622		—		—		811,622
Financial Services interest expense	—		55,707		—		55,707
Financial Services provision for credit losses	—		(22,474)		—		(22,474)
Selling, administrative and engineering expense	196,359		40,275		(4,790)		231,844
Restructuring (benefit) expense	(593)		227		—		(366)
	1,007,388		73,735		(4,790)		1,076,333
Operating income	231,080		115,015		79		346,174
Other income, net	277		—		—		277
Investment income	1,402		—		—		1,402
Interest expense	7,708		—		—		7,708
Income before income taxes	225,051		115,015		79		340,145
Provision for income taxes	55,996		25,005		—		81,001
Net income	$	169,055	$	90,010	$	79	$	259,144


	March 28, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	607,941	$	1,712,704	$	—	$	2,320,645

Accounts receivable, net	603,273		—		(386,704)		216,569
Finance receivables, net	—		1,798,194		—		1,798,194
Inventories, net	470,997		—		—		470,997
Restricted cash	—		185,374		—		185,374
Other current assets	81,559		113,797		—		195,356
	1,763,770		3,810,069		(386,704)		5,187,135
Finance receivables, net	—		4,958,583		—		4,958,583
Property, plant and equipment, net	687,086		31,882		—		718,968
Pension and postretirement assets	105,910		—		—		105,910
Goodwill	65,157		—		—		65,157
Deferred income taxes	56,911		79,206		(730)		135,387
Lease assets	36,559		8,206		—		44,765
Other long-term assets	184,876		33,929		(95,722)		123,083
	$	2,900,269	$	8,921,875	$	(483,156)	$	11,338,988
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	355,722	$	433,746	$	(386,704)	$	402,764
Accrued liabilities	443,529		125,768		1,143		570,440
Short-term deposits, net	—		93,887		—		93,887
Short-term debt	—		765,263		—		765,263
Current portion of long-term debt, net	—		1,622,243		—		1,622,243
	799,251		3,040,907		(385,561)		3,454,597
Long-term deposits, net	—		58,766		—		58,766
Long-term debt, net	744,149		4,733,942		—		5,478,091
Lease liabilities	22,461		7,600		—		30,061
Pension and postretirement liabilities	103,854		—		—		103,854
Deferred income taxes	7,166		1,516		—		8,682
Other long-term liabilities	179,525		46,920		2,106		228,551
Commitments and contingencies (Note 16)
Shareholders’ equity	1,043,863		1,032,224		(99,701)		1,976,386
	$	2,900,269	$	8,921,875	$	(483,156)	$	11,338,988


	Three months ended March 28, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income	$	169,055	$	90,010	$	79	$	259,144
Adjustments to reconcile Net income to Net cash (used) provided by operating activities:
Depreciation and amortization	37,778		2,443		—		40,221
Amortization of deferred loan origination costs	—		19,200		—		19,200
Amortization of financing origination fees	172		3,442		—		3,614
Provision for long-term employee benefits	7,090		—		—		7,090
Employee benefit plan contributions and payments	(9,885)		—		—		(9,885)
Stock compensation expense	8,174		794		—		8,968
Net change in wholesale finance receivables related to sales	—		—		(308,532)		(308,532)
Provision for credit losses	—		(22,474)		—		(22,474)



Deferred income taxes	3,811		9,812		(431)		13,192

Other, net	476		775		(80)		1,171
Changes in current assets and liabilities:
Accounts receivable, net	(388,688)		—		309,676		(79,012)
Finance receivables – accrued interest and other	—		8,947		—		8,947
Inventories, net	45,086		—		—		45,086
Accounts payable and accrued liabilities	104,486		354,507		(305,396)		153,597
Derivative financial instruments	(3,219)		(90)		—		(3,309)
Other	18,222		11,271		(3,730)		25,763
	(176,497)		388,627		(308,493)		(96,363)
Net cash (used) provided by operating activities	(7,442)		478,637		(308,414)		162,781

Cash flows from investing activities:
Capital expenditures	(18,427)		(386)		—		(18,813)
Origination of finance receivables	—		(1,923,911)		1,014,773		(909,138)
Collections on finance receivables	—		1,606,844		(706,359)		900,485




Other investing activities	733		—		—		733
Net cash used by investing activities	(17,694)		(317,453)		308,414		(26,733)


	Three months ended March 28, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from financing activities:



Repayments of medium-term notes	—		(1,050,000)		—		(1,050,000)

Proceeds from securitization debt	—		597,411		—		597,411
Repayments of securitization debt	—		(291,346)		—		(291,346)

Repayments of asset-backed commercial paper	—		(66,894)		—		(66,894)
Net decrease in unsecured commercial paper	—		(262,517)		—		(262,517)
Net increase in credit facilities	—		15,629		—		15,629
Net increase in deposits	—		72,664		—		72,664

Dividends paid	(23,105)		—		—		(23,105)
Repurchase of common stock	(5,646)		—		—		(5,646)

Issuance of common stock under share-based plans	1,085		—		—		1,085
Net cash used by financing activities	(27,666)		(985,053)		—		(1,012,719)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(5,418)		255		—		(5,163)
Net decrease in cash, cash equivalents and restricted cash	$	(58,220)	$	(823,614)	$	—	$	(881,834)

Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	666,161	$	2,743,007	$	—	$	3,409,168
Net decrease in cash, cash equivalents and restricted cash	(58,220)		(823,614)		—		(881,834)
Cash, cash equivalents and restricted cash, end of period	$	607,941	$	1,919,393	$	—	$	2,527,334