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Supplemental Consolidating Data

3 Months Ended

Mar. 27, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Consolidating DataThe supplemental consolidating legal entity data for Harley-Davidson Motor Company, Harley-Davidson Financial Services and related consolidating adjustments are presented for informational purposes. The legal entity income statement information presented below differs from reportable segment income statement information due to the allocation of legal entity consolidating adjustments to income for reportable segments. Supplemental consolidating data is as follows (in thousands):


	Three months ended March 27, 2022
	Harley-Davidson Motor Company		Harley-Davidson Financial Services		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	1,306,293	$	—	$	(3,122)	$	1,303,171
Financial Services	—		192,390		(375)		192,015
	1,306,293		192,390		(3,497)		1,495,186
Costs and expenses:
Motorcycles and Related Products cost of goods sold	895,536		—		—		895,536
Financial Services interest expense	—		42,099		—		42,099
Financial Services provision for credit losses	—		28,822		—		28,822
Selling, administrative and engineering expense	205,417		37,858		(3,650)		239,625
Restructuring benefit	(128)		—		—		(128)
	1,100,825		108,779		(3,650)		1,205,954
Operating income	205,468		83,611		153		289,232
Other income, net	11,030		—		—		11,030
Investment loss	(1,979)		—		—		(1,979)
Interest expense	7,711		—		—		7,711
Income before income taxes	206,808		83,611		153		290,572
Provision for income taxes	47,847		20,223		—		68,070
Net income	$	158,961	$	63,388	$	153	$	222,502


	Three months ended March 28, 2021
	Harley-Davidson Motor Company		Harley-Davidson Financial Services		Consolidating Adjustments		Consolidated
Revenue:
Motorcycles and Related Products	$	1,238,468	$	—	$	(6,361)	$	1,232,107
Financial Services	—		188,750		1,650		190,400
	1,238,468		188,750		(4,711)		1,422,507
Costs and expenses:
Motorcycles and Related Products cost of goods sold	811,622		—		—		811,622
Financial Services interest expense	—		55,707		—		55,707
Financial Services provision for credit losses	—		(22,474)		—		(22,474)
Selling, administrative and engineering expense	196,359		40,275		(4,790)		231,844
Restructuring (benefit) expense	(593)		227		—		(366)
	1,007,388		73,735		(4,790)		1,076,333
Operating income	231,080		115,015		79		346,174
Other income, net	277		—		—		277
Investment income	1,402		—		—		1,402
Interest expense	7,708		—		—		7,708
Income before income taxes	225,051		115,015		79		340,145
Provision for income taxes	55,996		25,005		—		81,001
Net income	$	169,055	$	90,010	$	79	$	259,144


	March 27, 2022
	Harley-Davidson Motor Company		Harley-Davidson Financial Services		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	678,616	$	715,115	$	—	$	1,393,731

Accounts receivable, net	601,148		—		(346,862)		254,286
Finance receivables, net	—		1,699,642		—		1,699,642
Inventories, net	714,259		—		—		714,259
Restricted cash	—		142,812		—		142,812
Other current assets	149,955		61,455		(28,883)		182,527
	2,143,978		2,619,024		(375,745)		4,387,257
Finance receivables, net	—		5,121,911		—		5,121,911
Property, plant and equipment, net	636,216		27,591		—		663,807
Pension and postretirement assets	399,029		—		—		399,029
Goodwill	62,607		—		—		62,607
Deferred income taxes	—		75,185		(3,259)		71,926
Lease assets	38,126		6,947		—		45,073
Other long-term assets	210,157		37,595		(104,722)		143,030
	$	3,490,113	$	7,888,253	$	(483,726)	$	10,894,640
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	434,731	$	389,048	$	(346,862)	$	476,917
Accrued liabilities	495,921		129,581		(27,578)		597,924
Short-term deposits, net	—		65,049		—		65,049
Short-term debt	—		816,016		—		816,016
Current portion of long-term debt, net	—		1,327,357		—		1,327,357
	930,652		2,727,051		(374,440)		3,283,263
Long-term deposits, net	—		283,034		—		283,034
Long-term debt, net	744,842		3,725,244		—		4,470,086
Lease liabilities	20,544		7,089		—		27,633
Pension and postretirement liabilities	93,792		—		—		93,792
Deferred income taxes	10,478		1,848		(2,748)		9,578
Other long-term liabilities	165,990		50,190		1,973		218,153
Commitments and contingencies (Note 16)
Shareholders’ equity	1,523,815		1,093,797		(108,511)		2,509,101
	$	3,490,113	$	7,888,253	$	(483,726)	$	10,894,640


	March 28, 2021
	Harley-Davidson Motor Company		Harley-Davidson Financial Services		Consolidating Adjustments		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	607,941	$	1,712,704	$	—	$	2,320,645

Accounts receivable, net	603,273		—		(386,704)		216,569
Finance receivables, net	—		1,798,194		—		1,798,194
Inventories, net	470,997		—		—		470,997
Restricted cash	—		185,374		—		185,374
Other current assets	81,559		113,797		—		195,356
	1,763,770		3,810,069		(386,704)		5,187,135
Finance receivables, net	—		4,958,583		—		4,958,583
Property, plant and equipment, net	687,086		31,882		—		718,968
Pension and postretirement assets	105,910		—		—		105,910
Goodwill	65,157		—		—		65,157
Deferred income taxes	56,911		79,206		(730)		135,387
Lease assets	36,559		8,206		—		44,765
Other long-term assets	184,876		33,929		(95,722)		123,083
	$	2,900,269	$	8,921,875	$	(483,156)	$	11,338,988
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	355,722	$	433,746	$	(386,704)	$	402,764
Accrued liabilities	443,529		125,768		1,143		570,440
Short-term deposits, net	—		93,887		—		93,887
Short-term debt	—		765,263		—		765,263
Current portion of long-term debt, net	—		1,622,243		—		1,622,243
	799,251		3,040,907		(385,561)		3,454,597
Long-term deposits, net	—		58,766		—		58,766
Long-term debt, net	744,149		4,733,942		—		5,478,091
Lease liabilities	22,461		7,600		—		30,061
Pension and postretirement liabilities	103,854		—		—		103,854
Deferred income taxes	7,166		1,516		—		8,682
Other long-term liabilities	179,525		46,920		2,106		228,551
Commitments and contingencies (Note 16)
Shareholders’ equity	1,043,863		1,032,224		(99,701)		1,976,386
	$	2,900,269	$	8,921,875	$	(483,156)	$	11,338,988


	Three months ended March 27, 2022
	Harley-Davidson Motor Company		Harley-Davidson Financial Services		Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net income	$	158,961	$	63,388	$	153	$	222,502
Adjustments to reconcile Net income to Net cash (used) provided by operating activities:
Depreciation and amortization	37,106		2,152		—		39,258
Amortization of deferred loan origination costs	—		22,995		—		22,995
Amortization of financing origination fees	174		3,527		—		3,701
Provision for long-term employee benefits	(5,050)		—		—		(5,050)
Employee benefit plan contributions and payments	(2,143)		—		—		(2,143)
Stock compensation expense	8,233		670		—		8,903
Net change in wholesale finance receivables related to sales	—		—		(205,727)		(205,727)
Provision for credit losses	—		28,822		—		28,822



Deferred income taxes	6,176		665		(534)		6,307
Other, net	(5,322)		67		(153)		(5,408)
Changes in current assets and liabilities:
Accounts receivable, net	(319,329)		—		244,336		(74,993)
Finance receivables – accrued interest and other	—		3,115		—		3,115
Inventories, net	(2,630)		—		—		(2,630)
Accounts payable and accrued liabilities	86,546		289,876		(269,453)		106,969
Other current assets	(47,418)		14,467		25,651		(7,300)
	(243,657)		366,356		(205,880)		(83,181)
Net cash (used) provided by operating activities	(84,696)		429,744		(205,727)		139,321

Cash flows from investing activities:
Capital expenditures	(27,149)		(850)		—		(27,999)
Origination of finance receivables	—		(2,023,861)		965,400		(1,058,461)
Collections on finance receivables	—		1,724,863		(759,673)		965,190

Other investing activities	135		—		—		135
Net cash used by investing activities	(27,014)		(299,848)		205,727		(121,135)


	Three months ended March 27, 2022
	Harley-Davidson Motor Company		Harley-Davidson Financial Services		Consolidating Adjustments		Consolidated
Cash flows from financing activities:


Proceeds from issuance of medium-term notes	—		495,785		—		495,785
Repayments of medium-term notes	—		(550,000)		—		(550,000)

Repayments of securitization debt	—		(271,499)		—		(271,499)
Borrowings of asset-backed commercial paper	—		62,455		—		62,455
Repayments of asset-backed commercial paper	—		(56,634)		—		(56,634)
Net increase in unsecured commercial paper	—		64,521		—		64,521

Net increase in deposits	—		57,660		—		57,660

Dividends paid	(24,056)		—		—		(24,056)
Repurchase of common stock	(261,737)		—		—		(261,737)


Net cash used by financing activities	(285,793)		(197,712)		—		(483,505)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,086)		343		—		(1,743)
Net decrease in cash, cash equivalents and restricted cash	$	(399,589)	$	(67,473)	$	—	$	(467,062)

Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$	1,078,205	$	947,014	$	—	$	2,025,219
Net decrease in cash, cash equivalents and restricted cash	(399,589)		(67,473)		—		(467,062)
Cash, cash equivalents and restricted cash, end of period	$	678,616	$	879,541	$	—	$	1,558,157