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Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt Debt
Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following at December 31, (in thousands):
20212020
Unsecured commercial paper$751,286 $1,014,274 
Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following at December 31, (in thousands):
20212020
Secured debt:
Asset-backed Canadian commercial paper conduit facility$85,054 $116,678 
Asset-backed U.S. commercial paper conduit facilities272,589 402,205 
Asset-backed securitization debt1,634,753 1,800,393 
Unamortized discounts and debt issuance costs(7,611)(8,437)
1,984,785 2,310,839 
20212020
Unsecured notes (at par value):
Medium-term notes:
Due in 2021, issued January 2016
2.85%
— 600,000 
Due in 2021, issued in November 2018
LIBOR + 0.94%
— 450,000 
Due in 2021, issued May 2018
3.55%
— 350,000 
Due in 2022, issued February 2019
4.05%
550,000 550,000 
Due in 2022, issued June 2017
2.55%
400,000 400,000 
Due in 2023, issued February 2018
3.35%
350,000 350,000 
Due in 2023, issued May 2020(a)
4.94%
737,302 797,206 
Due in 2024, issued November 2019(b)
3.14%
680,586 735,882 
Due in 2025, issued June 2020
3.35%
700,000 700,000 
Unamortized discounts and debt issuance costs(9,228)(15,374)
3,408,660 4,917,714 
Senior notes:
Due in 2025, issued July 2015
3.50%
450,000 450,000 
Due in 2045, issued July 2015
4.625%
300,000 300,000 
Unamortized discounts and debt issuance costs(5,332)(6,023)
744,668 743,977 
4,153,328 5,661,691 
Long-term debt6,138,113 7,972,530 
Current portion of long-term debt, net(1,542,496)(2,039,597)
Long-term debt, net$4,595,617 $5,932,933 
(a)Euro denominated €650.0 million par value remeasured to U.S. dollar at December 31, 2021 and 2020, respectively
(b)Euro denominated €600.0 million par value remeasured to U.S. dollar at December 31, 2021 and 2020, respectively
The Company’s future principal payments on debt obligations as of December 31, 2021 were as follows (in thousands): 
2022$2,302,568 
20231,735,386 
20241,125,031 
20251,367,781 
202680,804 
Thereafter300,000 
$6,911,570 
Unsecured Commercial Paper – Commercial paper maturities may range up to 365 days from the issuance date. The weighted-average interest rate of outstanding commercial paper balances was 0.40% and 1.34% at December 31, 2021 and 2020, respectively.
Credit Facilities – In April 2020, the Company entered into a $707.5 million five-year credit facility to replace the $765.0 million five-year credit facility that was due to mature in April 2021. The new five-year credit facility matures in April 2025. The Company also amended its $780.0 million five-year credit facility in April 2020 to $707.5 million with no change to the maturity date of April 2023. Additionally, the Company had a $350.0 million 364-day credit facility that matured in May 2021. The five-year credit facilities (together, the Global Credit Facilities) bear interest at variable rates, which may be adjusted upward or downward depending on certain criteria, such as credit ratings. The Global Credit Facilities also require the Company to pay a fee based on the average daily unused portion of the aggregate commitments. The Global Credit Facilities are committed facilities primarily used to support the Company's unsecured commercial paper program.
Unsecured Notes – The fixed-rate U.S. dollar-denominated unsecured notes provide for semi-annual interest payments, the fixed-rate foreign currency-dominated unsecured notes provide for annual interest payments, and the floating-rate unsecured notes provide for quarterly interest payments. Principal on the unsecured notes is due at maturity.
During January, March, and May of 2021, $600.0 million of 2.85%, $450.0 million of floating rate, and $350.0 million of 3.55% medium-term notes matured, respectively, and the principal and accrued interest were paid in full. During February, May, and June of 2020, $600.0 million of 2.15%, $450.0 million of floating rate, and $350.0 million of 2.40% medium-term notes matured, respectively, and the principal and accrued interest were paid in full.
Operating and Financial Covenants – Harley-Davidson Financial Services and the Company are subject to various operating and financial covenants related to the credit facilities and various operating covenants under the medium-term and senior notes and the U.S. and Canadian asset-backed commercial paper conduit facilities. The more significant covenants are described below.
The operating covenants limit the Company’s and Harley-Davidson Financial Services ability to:
•Assume or incur certain liens;
•Participate in certain mergers or consolidations; and
•Purchase or hold margin stock.
Under the current financial covenants of the Global Credit Facilities, the ratio of Harley-Davidson Financial Services’ consolidated debt, excluding secured debt, to Harley-Davidson Financial Services consolidated allowance for credit losses on finance receivables plus Harley-Davidson Financial Services’ consolidated shareholders' equity, excluding accumulated other comprehensive loss (AOCL), cannot exceed 10.0 to 1.0 as of the end of any fiscal quarter. In addition, the ratio of the Company's consolidated debt to the Company's consolidated debt and consolidated shareholders’ equity (where the Company's consolidated debt in each case excludes that of Harley-Davidson Financial Services and its subsidiaries, and the Company's consolidated shareholders’ equity excludes AOCL), cannot exceed 0.7 to 1.0 as of the end of any fiscal quarter. No financial covenants are required under the medium-term or senior notes or the U.S. or Canadian asset-backed commercial paper conduit facilities.
At December 31, 2021 and 2020, Harley-Davidson Financial Services and the Company remained in compliance with all of the then existing covenants.