XML 27 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Additional Balance Sheet and Cash Flow Information
 9 Months Ended
Sep. 26, 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):
September 26,
2021		December 31,
2020		September 27,
2020
Mutual funds$48,766 $52,061 $48,845 
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):
September 26,
2021		December 31,
2020		September 27,
2020
Raw materials and work in process$279,699 $211,979 $152,740 
Motorcycle finished goods178,315 281,132 125,930 
Parts & Accessories and General Merchandise86,977 84,469 100,131 
Inventory at lower of FIFO cost or net realizable value544,991 577,580 378,801 
Excess of FIFO over LIFO cost(69,677)(54,083)(56,426)
$475,314 $523,497 $322,375 
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 $290.3 million, $80.0 million and $30.0 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of September 26, 2021, December 31, 2020, and September 27, 2020, respectively. 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 September 26, 2021 were as follows (in thousands):
2021$47,920 
202245,000 
202365,000 
202458,500 
2025— 
Thereafter74,717 
Unamortized fees(867)
$290,270 
Operating Cash Flow – The reconciliation of Net income to Net cash provided by operating activities was as follows (in thousands):
 Nine months ended
September 26,
2021		September 27,
2020
Cash flows from operating activities:
Net income$628,457 $97,696 
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization122,483 140,057 
Amortization of deferred loan origination costs63,265 52,374 
Amortization of financing origination fees10,426 10,628 
Provision for long-term employee benefits19,640 23,557 
Employee benefit plan contributions and payments(14,677)(5,456)
Stock compensation expense34,032 12,076 
Net change in wholesale finance receivables related to sales(22,031)330,793 
Provision for credit losses4,935 178,433 
Deferred income taxes10,626 (18,978)
Other, net2,094 (10,863)
Changes in current assets and liabilities:
Accounts receivable, net(148,670)29,630 
Finance receivables – accrued interest and other
11,088 5,097 
Inventories, net31,874 273,668 
Accounts payable and accrued liabilities168,306 (16,922)
Other current assets3,703 33,278 
297,094 1,037,372 
Net cash provided by operating activities$925,551 $1,135,068