Supplemental Consolidating Data

6 Months Ended

Jun. 27, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Consolidating Data

Supplemental Consolidating DataThe 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 June 27, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	1,336,970	$	—	$	(5,470)	$	1,331,500
Financial Services	—		199,637		921		200,558
	1,336,970		199,637		(4,549)		1,532,058
Costs and expenses:
Motorcycles and Related Products cost of goods sold	924,449		—		—		924,449
Financial Services interest expense	—		48,621		—		48,621
Financial Services provision for credit losses	—		16,201		—		16,201
Selling, administrative and engineering expense	223,512		42,091		(4,094)		261,509
Restructuring expense	807		111		—		918
	1,148,768		107,024		(4,094)		1,251,698
Operating income	188,202		92,613		(455)		280,360
Other income, net	690		—		—		690
Investment income	122,731		—		(120,000)		2,731
Interest expense	7,722		—		—		7,722
Income before income taxes	303,901		92,613		(120,455)		276,059
Provision for income taxes	49,570		20,149		—		69,719
Net income	$	254,331	$	72,464	$	(120,455)	$	206,340

	Six months ended June 27, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	2,575,437	$	—	$	(11,830)	$	2,563,607
Financial Services	—		388,387		2,571		390,958
	2,575,437		388,387		(9,259)		2,954,565
Costs and expenses:
Motorcycles and Related Products cost of goods sold	1,736,071		—		—		1,736,071
Financial Services interest expense	—		104,328		—		104,328
Financial Services provision for credit losses	—		(6,273)		—		(6,273)
Selling, administrative and engineering expense	419,872		82,366		(8,885)		493,353
Restructuring expense	214		338		—		552
	2,156,157		180,759		(8,885)		2,328,031
Operating income	419,280		207,628		(374)		626,534
Other income, net	967		—		—		967
Investment income	124,133		—		(120,000)		4,133
Interest expense	15,430		—				15,430
Income before income taxes	528,950		207,628		(120,374)		616,204
Provision for income taxes	105,566		45,154		—		150,720
Net income	$	423,384	$	162,474	$	(120,374)	$	465,484

	June 27, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	923,505	$	818,463	$	—	$	1,741,968
Accounts receivable, net	643,505		—		(380,052)		263,453
Finance receivables, net	—		1,629,636		—		1,629,636
Inventories, net	457,648		—		—		457,648
Restricted cash	—		152,411		—		152,411
Other current assets	91,735		132,753		—		224,488
	2,116,393		2,733,263		(380,052)		4,469,604
Finance receivables, net	—		5,259,318		—		5,259,318
Property, plant and equipment, net	663,549		30,829		—		694,378
Pension and postretirement assets	120,542		—		—		120,542
Goodwill	65,395		—		—		65,395
Deferred income taxes	48,710		83,615		(791)		131,534
Lease assets	33,433		7,777		—		41,210
Other long-term assets	188,535		35,427		(96,717)		127,245
	$	3,236,557	$	8,150,229	$	(477,560)	$	10,909,226
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	394,792	$	416,136	$	(380,052)	$	430,876
Accrued liabilities	483,470		103,131		1,139		587,740
Short-term deposits, net	—		101,672		—		101,672
Short-term debt	—		749,037		—		749,037
Current portion of long-term debt, net	—		1,581,826		—		1,581,826
	878,262		2,951,802		(378,913)		3,451,151
Long-term deposits, net	—		157,701		—		157,701
Long-term debt, net	744,321		4,000,703		—		4,745,024
Lease liabilities	14,626		7,082		—		21,708
Pension and postretirement liabilities	105,833		—		—		105,833
Deferred income taxes	7,166		1,747		—		8,913
Other long-term liabilities	183,600		48,521		2,503		234,624
Commitments and contingencies (Note 16)
Shareholders’ equity	1,302,749		982,673		(101,150)		2,184,272
	$	3,236,557	$	8,150,229	$	(477,560)	$	10,909,226

	Six months ended June 27, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income	$	423,384	$	162,474	$	(120,374)	$	465,484
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	76,749		4,574		—		81,323
Amortization of deferred loan origination costs	—		40,089		—		40,089
Amortization of financing origination fees	344		6,880		—		7,224
Provision for long-term employee benefits	13,366		—		—		13,366
Employee benefit plan contributions and payments	(11,055)		—		—		(11,055)
Stock compensation expense	21,550		1,790		—		23,340
Net change in wholesale finance receivables related to sales	—		—		(129,819)		(129,819)
Provision for credit losses	—		(6,273)		—		(6,273)
Deferred income taxes	6,505		6,597		(370)		12,732
Other, net	(2,092)		(347)		374		(2,065)
Changes in current assets and liabilities:
Accounts receivable, net	(427,762)		—		303,024		(124,738)
Finance receivables – accrued interest and other	—		9,691		—		9,691
Inventories, net	58,366		—		—		58,366
Accounts payable and accrued liabilities	182,066		313,178		(298,638)		196,606
Other	8,615		5,145		(3,731)		10,029
	(73,348)		381,324		(129,160)		178,816
Net cash provided by operating activities	350,036		543,798		(249,534)		644,300
Cash flows from investing activities:
Capital expenditures	(36,104)		(1,464)		—		(37,568)
Origination of finance receivables	—		(4,254,353)		1,959,853		(2,294,500)
Collections on finance receivables	—		3,774,683		(1,830,319)		1,944,364
Other investing activities	2,425		—		—		2,425
Net cash used by investing activities	(33,679)		(481,134)		129,534		(385,279)

	Six months ended June 27, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from financing activities:
Repayments of medium-term notes	—		(1,400,000)		—		(1,400,000)
Proceeds from securitization debt	—		597,411		—		597,411
Repayments of securitization debt	—		(664,685)		—		(664,685)
Repayments of asset-backed commercial paper	—		(143,256)		—		(143,256)
Net decrease in unsecured commercial paper	—		(262,452)		—		(262,452)
Net increase in credit facilities	—		84		—		84
Net increase in deposits	—		179,329		—		179,329
Dividends paid	(46,209)		(120,000)		120,000		(46,209)
Repurchase of common stock	(10,911)		—		—		(10,911)
Issuance of common stock under share-based plans	4,324		—		—		4,324
Net cash used by financing activities	(52,796)		(1,813,569)		120,000		(1,746,365)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(6,217)		(661)		—		(6,878)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	257,344	$	(1,751,566)	$	—	$	(1,494,222)
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	666,161	$	2,743,007	$	—	$	3,409,168
Net increase (decrease) in cash, cash equivalents and restricted cash	257,344		(1,751,566)		—		(1,494,222)
Cash, cash equivalents and restricted cash, end of period	$	923,505	$	991,441	$	—	$	1,914,946