XML 44 R15.htm IDEA: XBRL DOCUMENT v3.22.0.1
Additional Balance Sheet and Cash Flow Information
 12 Months Ended
Dec. 31, 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 consisted of the following at December 31, (in thousands): 
20212020
Mutual funds$49,650 $52,061 
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 consisted of the following as of December 31, (in thousands):
20212020
Raw materials and work in process$347,915 $211,979 
Motorcycle finished goods345,956 281,132 
Parts and accessories and apparel103,191 84,469 
Inventory at lower of FIFO cost or net realizable value797,062 577,580 
Excess of FIFO over LIFO cost(84,120)(54,083)
$712,942 $523,497 
Inventory obsolescence reserves deducted from FIFO cost were $63.0 million and $72.0 million as of December 31, 2021 and 2020, respectively.
Property, plant and equipment, net consisted of the following as of December 31, (in thousands):
20212020
Land and related improvements$71,549 $69,518 
Buildings and related improvements405,160 428,171 
Machinery and equipment1,614,177 1,577,337 
Software750,490 759,675 
Construction in progress113,615 188,823 
2,954,991 3,023,524 
Accumulated depreciation(2,271,007)(2,279,740)
$683,984 $743,784 
Software, net of accumulated amortization, included in Property, plant and equipment, net, was $79.8 million and $100.7 million as of December 31, 2021 and 2020, respectively.
Accrued liabilities consisted of the following as of December 31, (in thousands):
20212020
Payroll, employee benefits and related expenses$159,474 $107,511 
Sales incentive programs42,980 52,820 
Warranty and recalls39,635 44,415 
Interest54,001 65,590 
Tax-related accruals34,279 24,238 
Deferred revenue18,293 18,070 
Leases17,369 17,081 
Fair value of derivative financial instruments2,361 25,521 
Restructuring2,995 23,920 
Other230,594 178,048 
$601,981 $557,214 
Deposits – Beginning in 2020, Harley-Davidson Financial Services 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 and $80.0 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021, 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. As of December 31, 2020, all deposits were classified as short-term. 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 December 31, 2021 were as follows (in thousands):
2022$72,475 
202374,304 
202464,696 
2025— 
202679,742 
Thereafter— 
Unamortized fees(891)
$290,326 
Operating Cash Flow – The reconciliation of Net income to Net cash provided by operating activities for the years ended December 31, was as follows (in thousands):
202120202019
Cash flows from operating activities:
Net income $650,024 $1,298 $423,635 
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization165,185 185,715 232,537 
Amortization of deferred loan origination costs86,115 71,142 76,326 
Amortization of financing origination fees13,810 14,435 9,823 
Provision for long-term employee benefits8,317 40,833 13,344 
Employee benefit plan contributions and payments(17,133)(20,722)(13,256)
Stock compensation expense42,156 23,494 33,733 
Net change in wholesale finance receivables related to sales89,001 531,701 (5,822)
Provision for credit losses25,049 181,870 134,536 
Deferred income taxes(7,672)(44,079)21,547 
Other, net(9,985)10,345 2,234 
Changes in current assets and liabilities:
Accounts receivable, net(53,463)127,657 44,902 
Finance receivables – accrued interest and other13,316 7,418 (11,119)
Inventories, net(207,550)80,858 (47,576)
Accounts payable and accrued liabilities173,548 (43,087)(18,462)
Other current assets4,983 9,012 (28,110)
325,677 1,176,592 444,637 
Net cash provided by operating activities$975,701 $1,177,890 $868,272 
Cash paid during the years ended December 31, for interest and income taxes was as follows (in thousands):
202120202019
Interest$191,663 $245,961 $229,678 
Income taxes$155,579 $30,675 $149,828 
Interest paid represents interest payments of Harley-Davidson Financial Services and interest payments of the Company, included in Financial Services interest expense and Interest expense on the Consolidated statements of operations.