Supplemental Consolidating Data

9 Months Ended

Sep. 26, 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 September 26, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	1,167,432	$	—	$	(6,814)	$	1,160,618
Financial Services	—		202,080		2,612		204,692
	1,167,432		202,080		(4,202)		1,365,310
Costs and expenses:
Motorcycles and Related Products cost of goods sold	850,193		—		—		850,193
Financial Services interest expense	—		44,770		—		44,770
Financial Services provision for credit losses	—		11,208		—		11,208
Selling, administrative and engineering expense	216,030		42,686		(4,404)		254,312
Restructuring expense	517		98		—		615
	1,066,740		98,762		(4,404)		1,161,098
Operating income	100,692		103,318		202		204,212
Other income, net	858		—		—		858
Investment income	120,198		—		(120,000)		198
Interest expense	7,779		—		—		7,779
Income before income taxes	213,969		103,318		(119,798)		197,489
Provision for income taxes	7,408		27,108		—		34,516
Net income	$	206,561	$	76,210	$	(119,798)	$	162,973

	Nine months ended September 26, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	3,742,869	$	—	$	(18,644)	$	3,724,225
Financial Services	—		590,468		5,182		595,650
	3,742,869		590,468		(13,462)		4,319,875
Costs and expenses:
Motorcycles and Related Products cost of goods sold	2,586,264		—		—		2,586,264
Financial Services interest expense	—		149,098		—		149,098
Financial Services provision for credit losses	—		4,935		—		4,935
Selling, administrative and engineering expense	635,902		125,053		(13,290)		747,665
Restructuring expense	731		436		—		1,167
	3,222,897		279,522		(13,290)		3,489,129
Operating income	519,972		310,946		(172)		830,746
Other income, net	1,825		—		—		1,825
Investment income	244,331		—		(240,000)		4,331
Interest expense	23,209		—				23,209
Income before income taxes	742,919		310,946		(240,172)		813,693
Provision for income taxes	112,974		72,262		—		185,236
Net income	$	629,945	$	238,684	$	(240,172)	$	628,457

	September 26, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,115,014	$	946,289	$	—	$	2,061,303
Accounts receivable, net	590,806		—		(308,179)		282,627
Finance receivables, net	—		1,540,822		—		1,540,822
Inventories, net	475,314		—		—		475,314
Restricted cash	—		153,873		—		153,873
Other current assets	114,221		94,868		(14,608)		194,481
	2,295,355		2,735,852		(322,787)		4,708,420
Finance receivables, net	—		5,322,436		—		5,322,436
Property, plant and equipment, net	642,253		29,583		—		671,836
Pension and postretirement assets	132,958		—		—		132,958
Goodwill	63,841		—		—		63,841
Deferred income taxes	43,097		86,011		(1,049)		128,059
Lease assets	40,163		7,344		—		47,507
Other long-term assets	191,126		37,370		(103,749)		124,747
	$	3,408,793	$	8,218,596	$	(427,585)	$	11,199,804
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	361,057	$	329,338	$	(308,179)	$	382,216
Accrued liabilities	489,988		123,642		(13,778)		599,852
Short-term deposits, net	—		92,626		—		92,626
Short-term debt	—		749,620		—		749,620
Current portion of long-term debt, net	—		1,605,798		—		1,605,798
	851,045		2,901,024		(321,957)		3,430,112
Long-term deposits, net	—		197,644		—		197,644
Long-term debt, net	744,494		4,131,798		—		4,876,292
Lease liabilities	19,457		6,560		—		26,017
Pension and postretirement liabilities	103,144		—		—		103,144
Deferred income taxes	7,166		1,419		—		8,585
Other long-term liabilities	173,178		48,586		2,352		224,116
Commitments and contingencies (Note 16)
Shareholders’ equity	1,510,309		931,565		(107,980)		2,333,894
	$	3,408,793	$	8,218,596	$	(427,585)	$	11,199,804

	Nine months ended September 26, 2021
	HDMC Entities		HDFS Entities		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income	$	629,945	$	238,684	$	(240,172)	$	628,457
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	115,779		6,704		—		122,483
Amortization of deferred loan origination costs	—		63,265		—		63,265
Amortization of financing origination fees	517		9,909		—		10,426
Provision for long-term employee benefits	19,640		—		—		19,640
Employee benefit plan contributions and payments	(14,677)		—		—		(14,677)
Stock compensation expense	31,089		2,943		—		34,032
Net change in wholesale finance receivables related to sales	—		—		(22,031)		(22,031)
Provision for credit losses	—		4,935		—		4,935
Deferred income taxes	4,710		6,028		(112)		10,626
Other, net	3,320		(1,397)		171		2,094
Changes in current assets and liabilities:
Accounts receivable, net	(379,821)		—		231,151		(148,670)
Finance receivables – accrued interest and other	—		11,088		—		11,088
Inventories, net	31,874		—		—		31,874
Accounts payable and accrued liabilities	162,088		247,740		(241,522)		168,306
Other current assets	(11,127)		3,952		10,878		3,703
	(36,608)		355,167		(21,465)		297,094
Net cash provided by operating activities	593,337		593,851		(261,637)		925,551
Cash flows from investing activities:
Capital expenditures	(59,128)		(2,348)		—		(61,476)
Origination of finance receivables	—		(6,157,658)		2,712,705		(3,444,953)
Collections on finance receivables	—		5,659,465		(2,691,068)		2,968,397
Other investing activities	2,485		—		—		2,485
Net cash used by investing activities	(56,643)		(500,541)		21,637		(535,547)

	Nine months ended September 26, 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	—		1,169,910		—		1,169,910
Repayments of securitization debt	—		(1,013,820)		—		(1,013,820)
Borrowings of asset-backed commercial paper	—		27,406		—		27,406
Repayments of asset-backed commercial paper	—		(206,671)		—		(206,671)
Net decrease in unsecured commercial paper	—		(261,978)		—		(261,978)
Net increase in deposits	—		210,144		—		210,144
Dividends paid	(69,316)		(240,000)		240,000		(69,316)
Repurchase of common stock	(11,545)		—		—		(11,545)
Issuance of common stock under share-based plans	4,324		—		—		4,324
Net cash used by financing activities	(76,537)		(1,715,009)		240,000		(1,551,546)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(11,304)		254		—		(11,050)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	448,853	$	(1,621,445)	$	—	$	(1,172,592)
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	448,853		(1,621,445)		—		(1,172,592)
Cash, cash equivalents and restricted cash, end of period	$	1,115,014	$	1,121,562	$	—	$	2,236,576