Consolidated Valuation And Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Schedule II

HARLEY-DAVIDSON, INC.

CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS

Years ended December 31, 2012, 2011 and 2010

(In thousands)



	2012			2011			2010
Accounts receivable – allowance for doubtful accounts
Balance at beginning of period	$	4,952		$	10,357		$	11,409
Provision charged to expense	424			1,408			3,216
Reserve adjustments	(401		)	(6,633		)	(3,837		)
Write-offs, net of recoveries	(21		)	(180		)	(431		)
Balance at end of period	$	4,954		$	4,952		$	10,357
Finance receivables – allowance for credit losses
Balance at beginning of period	$	125,449		$	173,589		$	150,082
Allowance related to newly consolidated finance receivables^(a)	—			—			49,424
Provision for credit losses	22,239			17,031			93,118
Charge-offs, net of recoveries	(40,021		)	(65,171		)	(119,035		)
Balance, end of period	$	107,667		$	125,449		$	173,589
Inventories – allowance for obsolescence^(b)
Balance at beginning of period	$	23,204		$	34,180		$	34,745
Provision charged to expense	9,489			4,885			17,142
Reserve adjustments	(696		)	(466		)	636
Write-offs, net of recoveries	(9,061		)	(15,395		)	(18,343		)
Balance at end of period	$	22,936		$	23,204		$	34,180
Deferred tax assets – valuation allowance
Balance at beginning of period	$	14,914		$	27,048		$	22,170
Adjustments	1,400			(12,134		)	4,878
Balance at end of period	$	16,314		$	14,914		$	27,048


(a)	As part of the required consolidation of formerly off-balance sheet securitization trusts, the Company consolidated a $49.4 million allowance for credit losses related to the newly consolidated finance receivables.


(b)	Inventory obsolescence reserves deducted from cost determined on first-in first-out (FIFO) basis, before deductions for last-in, first-out (LIFO) valuation reserves.