Supplemental Consolidating Data | Supplemental Consolidating Data The supplemental consolidating data for the periods noted is presented for informational purposes. The supplemental consolidating data may be different than segment information presented elsewhere due to the allocation of intercompany eliminations to reporting segments. All supplemental data is presented in thousands. Year Ended December 31, 2015 Motorcycles & Related Products Operations Financial Services Operations Eliminations Consolidated Revenue: Motorcycles and Related Products $ 5,318,850 $ — $ (10,106 ) $ 5,308,744 Financial Services — 688,211 (1,553 ) 686,658 Total revenue 5,318,850 688,211 (11,659 ) 5,995,402 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,356,284 — — 3,356,284 Financial Services interest expense — 161,983 — 161,983 Financial Services provision for credit losses — 101,345 — 101,345 Selling, administrative and engineering expense 1,078,525 153,229 (11,659 ) 1,220,095 Total costs and expenses 4,434,809 416,557 (11,659 ) 4,839,707 Operating income 884,041 271,654 — 1,155,695 Investment income 106,585 — (100,000 ) 6,585 Interest expense 12,117 — — 12,117 Income before provision for income taxes 978,509 271,654 (100,000 ) 1,150,163 Provision for income taxes 300,499 97,457 — 397,956 Net income $ 678,010 $ 174,197 $ (100,000 ) $ 752,207 Year Ended December 31, 2014 Motorcycles & Related Products Operations Financial Services Operations Eliminations Consolidated Revenue: Motorcycles and Related Products $ 5,577,697 $ — $ (10,016 ) $ 5,567,681 Financial Services — 662,345 (1,518 ) 660,827 Total revenue 5,577,697 662,345 (11,534 ) 6,228,508 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,542,601 — — 3,542,601 Financial Services interest expense — 164,476 — 164,476 Financial Services provision for credit losses — 80,946 — 80,946 Selling, administrative and engineering expense 1,023,450 147,586 (11,534 ) 1,159,502 Total costs and expenses 4,566,051 393,008 (11,534 ) 4,947,525 Operating income 1,011,646 269,337 — 1,280,983 Investment income 126,499 — (120,000 ) 6,499 Interest expense 4,162 — — 4,162 Income before provision for income taxes 1,133,983 269,337 (120,000 ) 1,283,320 Provision for income taxes 338,453 100,256 — 438,709 Net income $ 795,530 $ 169,081 $ (120,000 ) $ 844,611 Year Ended December 31, 2013 Motorcycles & Related Products Operations Financial Services Operations Eliminations Consolidated Revenue: Motorcycles and Related Products $ 5,268,480 $ — $ (10,190 ) $ 5,258,290 Financial Services — 643,067 (1,485 ) 641,582 Total revenue 5,268,480 643,067 (11,675 ) 5,899,872 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,395,918 — — 3,395,918 Financial Services interest expense — 165,491 — 165,491 Financial Services provision for credit losses — 60,008 — 60,008 Selling, administrative and engineering expense 993,247 143,181 (11,675 ) 1,124,753 Total costs and expenses 4,389,165 368,680 (11,675 ) 4,746,170 Operating income 879,315 274,387 — 1,153,702 Investment income 190,859 — (185,000 ) 5,859 Interest expense 45,256 — — 45,256 Income before provision for income taxes 1,024,918 274,387 (185,000 ) 1,114,305 Provision for income taxes 279,841 100,471 — 380,312 Net income $ 745,077 $ 173,916 $ (185,000 ) $ 733,993 December 31, 2015 Motorcycles & Related Products Operations Financial Services Operations Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 400,443 $ 321,766 $ — $ 722,209 Marketable securities 45,192 — — 45,192 Accounts receivable, net 390,799 — (143,394 ) 247,405 Finance receivables, net — 2,053,582 — 2,053,582 Inventories 585,907 — — 585,907 Restricted cash — 88,267 — 88,267 Deferred income taxes 56,319 46,450 — 102,769 Other current assets 90,824 49,078 (2,079 ) 137,823 Total current assets 1,569,484 2,559,143 (145,473 ) 3,983,154 Finance receivables, net — 4,814,571 — 4,814,571 Property, plant and equipment, net 906,972 35,446 — 942,418 Goodwill 54,182 — — 54,182 Deferred income taxes 86,075 15,681 (2,142 ) 99,614 Other long-term assets 140,034 37,796 (80,602 ) 97,228 $ 2,756,747 $ 7,462,637 $ (228,217 ) $ 9,991,167 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 220,050 $ 158,958 $ (143,394 ) $ 235,614 Accrued liabilities 387,137 89,048 (4,221 ) 471,964 Short-term debt — 1,201,380 — 1,201,380 Current portion of long-term debt — 843,620 — 843,620 Total current liabilities 607,187 2,293,006 (147,615 ) 2,752,578 Long-term debt 746,934 4,098,454 — 4,845,388 Pension liability 164,888 — — 164,888 Postretirement healthcare liability 193,659 — — 193,659 Other long-term liabilities 166,440 28,560 — 195,000 Commitments and contingencies (Note 15) Total shareholders’ equity 877,639 1,042,617 (80,602 ) 1,839,654 $ 2,756,747 $ 7,462,637 $ (228,217 ) $ 9,991,167 December 31, 2014 Motorcycles & Related Products Operations Financial Services Operations Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 573,895 $ 332,785 $ — $ 906,680 Marketable securities 57,325 — — 57,325 Accounts receivable, net 658,735 — (411,114 ) 247,621 Finance receivables, net — 1,916,635 — 1,916,635 Inventories 448,871 — — 448,871 Restricted cash — 98,627 — 98,627 Deferred income taxes 50,015 39,901 — 89,916 Other current assets 142,278 43,125 (2,983 ) 182,420 Total current assets 1,931,119 2,431,073 (414,097 ) 3,948,095 Finance receivables, net — 4,516,246 — 4,516,246 Property, plant and equipment, net 848,661 34,416 — 883,077 Goodwill 27,752 — — 27,752 Deferred income taxes 75,121 4,863 (2,149 ) 77,835 Other long-term assets 113,727 39,309 (77,944 ) 75,092 $ 2,996,380 $ 7,025,907 $ (494,190 ) $ 9,528,097 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 171,098 $ 436,884 $ (411,114 ) $ 196,868 Accrued liabilities 370,652 83,797 (5,132 ) 449,317 Short-term debt — 731,786 — 731,786 Current portion of long-term debt — 1,011,315 — 1,011,315 Total current liabilities 541,750 2,263,782 (416,246 ) 2,389,286 Long-term debt — 3,761,528 — 3,761,528 Pension liability 76,186 — — 76,186 Postretirement healthcare liability 203,006 — — 203,006 Other long-term liabilities 164,060 24,745 — 188,805 Commitments and contingencies (Note 15) Total shareholders’ equity 2,011,378 975,852 (77,944 ) 2,909,286 $ 2,996,380 $ 7,025,907 $ (494,190 ) $ 9,528,097 Year Ended December 31, 2015 Motorcycles & Related Products Operations Financial Services Operations Eliminations & Adjustments Consolidated Cash flows from operating activities: Net income $ 678,010 $ 174,197 $ (100,000 ) $ 752,207 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 188,926 9,148 — 198,074 Amortization of deferred loan origination costs — 93,546 — 93,546 Amortization of financing origination fees 267 9,708 — 9,975 Provision for long-term employee benefits 60,824 — — 60,824 Contributions to pension and postretirement plans (28,490 ) — — (28,490 ) Stock compensation expense 26,775 2,658 — 29,433 Net change in wholesale finance receivables — — (113,970 ) (113,970 ) Provision for credit losses — 101,345 — 101,345 Loss on debt extinguishment — 1,099 — 1,099 Deferred income taxes (4,792 ) (11,692 ) — (16,484 ) Foreign currency adjustments 20,067 — — 20,067 Other, net (442 ) 1,288 — 846 Change in current assets and current liabilities: Accounts receivable 4,055 — (17,720 ) (13,665 ) Finance receivables—accrued interest and other — (3,046 ) — (3,046 ) Inventories (155,222 ) — — (155,222 ) Accounts payable and accrued liabilities 81,929 18,539 38,355 138,823 Derivative instruments (5,615 ) — — (5,615 ) Prepaid and other 33,658 (3,287 ) — 30,371 Total adjustments 221,940 219,306 (93,335 ) 347,911 Net cash provided by operating activities 899,950 393,503 (193,335 ) 1,100,118 Cash flows from investing activities: Capital expenditures (249,772 ) (10,202 ) — (259,974 ) Origination of finance receivables — (7,836,279 ) 4,084,449 (3,751,830 ) Collections of finance receivables — 7,127,999 (3,991,114 ) 3,136,885 Sales and redemptions of marketable securities 11,507 — — 11,507 Acquisition of business (59,910 ) — — (59,910 ) Other 7,474 — — 7,474 Net cash used by investing activities (290,701 ) (718,482 ) 93,335 (915,848 ) Year Ended December 31, 2015 Motorcycles & Related Products Operations Financial Services Operations Eliminations & Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 595,386 — 595,386 Repayments of medium-term notes — (610,331 ) — (610,331 ) Proceeds from issuance of senior unsecured notes 740,385 — — 740,385 Intercompany borrowing activity 250,000 (250,000 ) — — Proceeds from securitization debt — 1,195,668 — 1,195,668 Repayments of securitization debt — (1,008,135 ) — (1,008,135 ) Borrowings of asset-backed commercial paper — 87,442 — 87,442 Repayments of asset-backed commercial paper — (72,727 ) — (72,727 ) Net increase in credit facilities and unsecured commercial paper — 469,473 — 469,473 Net change in restricted cash — 11,410 — 11,410 Dividends (249,262 ) (100,000 ) 100,000 (249,262 ) Purchase of common stock for treasury (1,537,020 ) — — (1,537,020 ) Excess tax benefits from share-based payments 3,468 — — 3,468 Issuance of common stock under employee stock option plans 20,179 — — 20,179 Net cash (used by) provided by financing activities (772,250 ) 318,186 100,000 (354,064 ) Effect of exchange rate changes on cash and cash equivalents (10,451 ) (4,226 ) — (14,677 ) Net decrease in cash and cash equivalents $ (173,452 ) $ (11,019 ) $ — $ (184,471 ) Cash and cash equivalents: Cash and cash equivalents—beginning of period $ 573,895 $ 332,785 $ — $ 906,680 Net decrease in cash and cash equivalents (173,452 ) (11,019 ) — (184,471 ) Cash and cash equivalents—end of period $ 400,443 $ 321,766 $ — $ 722,209 Year Ended December 31, 2014 Motorcycles & Related Products Operations Financial Services Operations Eliminations & Adjustments Consolidated Cash flows from operating activities: Net income $ 795,530 $ 169,081 $ (120,000 ) $ 844,611 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 171,187 8,113 — 179,300 Amortization of deferred loan origination costs — 94,429 — 94,429 Amortization of financing origination fees 59 8,383 — 8,442 Provision for long-term employee benefits 33,709 — — 33,709 Contributions to pension and postretirement plans (29,686 ) — — (29,686 ) Stock compensation expense 35,064 2,865 — 37,929 Net change in wholesale finance receivables — — (75,210 ) (75,210 ) Provision for credit losses — 80,946 — 80,946 Loss on debt extinguishment — 3,942 — 3,942 Deferred income taxes (191 ) (7,430 ) — (7,621 ) Foreign currency adjustments 21,964 — — 21,964 Other, net 20,273 (21,764 ) — (1,491 ) Change in current assets and current liabilities: Accounts receivable (31,740 ) — 21,931 (9,809 ) Finance receivables – accrued interest and other — (2,515 ) — (2,515 ) Inventories (50,886 ) — — (50,886 ) Accounts payable and accrued liabilities 18,255 21,629 (18,575 ) 21,309 Derivative instruments 703 — — 703 Prepaid and other (17,187 ) 13,798 — (3,389 ) Total adjustments 171,524 202,396 (71,854 ) 302,066 Net cash provided by operating activities 967,054 371,477 (191,854 ) 1,146,677 Cash flows from investing activities: Capital expenditures (224,262 ) (8,057 ) — (232,319 ) Origination of finance receivables — (7,693,884 ) 4,125,461 (3,568,423 ) Collections of finance receivables — 7,066,852 (4,053,607 ) 3,013,245 Sales and redemptions of marketable securities 41,010 — — 41,010 Other 1,837 — — 1,837 Net cash used by investing activities (181,415 ) (635,089 ) 71,854 (744,650 ) Year Ended December 31, 2014 Motorcycles & Related Products Operations Financial Services Operations Eliminations & Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance medium-term notes — 991,835 — 991,835 Repayments of medium-term notes — (526,431 ) — (526,431 ) Repayments of senior unsecured note (303,000 ) — — (303,000 ) Intercompany borrowing activity 200,000 (200,000 ) — — Proceeds from securitization debt — 847,126 — 847,126 Repayments of securitization debt — (834,856 ) — (834,856 ) Borrowings of asset-backed commercial paper — 84,907 — 84,907 Net increase in credit facilities and unsecured commercial paper — 63,945 — 63,945 Repayments of asset-backed commercial paper — (77,800 ) — (77,800 ) Net change in restricted cash — 22,755 — 22,755 Dividends paid (238,300 ) (120,000 ) 120,000 (238,300 ) Purchase of common stock for treasury, net of issuances (615,602 ) — — (615,602 ) Excess tax benefits from share based payments 11,540 — — 11,540 Issuance of common stock under employee stock option plans 37,785 — — 37,785 Net cash (used by) provided by financing activities (907,577 ) 251,481 120,000 (536,096 ) Effect of exchange rate changes on cash and cash equivalents (23,079 ) (2,784 ) — (25,863 ) Net decrease in cash and cash equivalents $ (145,017 ) $ (14,915 ) $ — $ (159,932 ) Cash and cash equivalents: Cash and cash equivalents – beginning of period $ 718,912 $ 347,700 $ — $ 1,066,612 Net decrease in cash and cash equivalents (145,017 ) (14,915 ) — (159,932 ) Cash and cash equivalents – end of period $ 573,895 $ 332,785 $ — $ 906,680 Year Ended December 31, 2013 Motorcycles Financial Eliminations Consolidated Cash flows from operating activities: Net income $ 745,077 $ 173,916 $ (185,000 ) $ 733,993 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 160,181 6,891 — 167,072 Amortization of deferred loan origination costs — 86,181 — 86,181 Amortization of financing origination fees 473 8,903 — 9,376 Provision for long-term employee benefits 66,877 — — 66,877 Contributions to pension and postretirement plans (204,796 ) — — (204,796 ) Stock compensation expense 38,367 2,877 — 41,244 Net change in wholesale finance receivables — — 28,865 28,865 Provision for credit losses — 60,008 — 60,008 Loss on debt extinguishment — 4,947 — 4,947 Deferred income taxes 54,568 (1,988 ) — 52,580 Foreign currency adjustments 16,269 — — 16,269 Other, net 10,942 (819 ) — 10,123 Change in current assets and current liabilities: Accounts receivable (24,273 ) — (12,380 ) (36,653 ) Finance receivables – accrued interest and other — (346 ) — (346 ) Inventories (46,474 ) — — (46,474 ) Accounts payable and accrued liabilities (85,949 ) (5,096 ) 12,380 (78,665 ) Derivative instruments (2,161 ) (28 ) — (2,189 ) Prepaid and other 70,900 (2,219 ) — 68,681 Total adjustments 54,924 159,311 28,865 243,100 Net cash provided by operating activities 800,001 333,227 (156,135 ) 977,093 Cash flows from investing activities: Capital expenditures (199,354 ) (8,967 ) — (208,321 ) Origination of finance receivables — (7,140,533 ) 3,896,528 (3,244,005 ) Collections of finance receivables — 6,757,387 (3,925,393 ) 2,831,994 Purchases of marketable securities (4,998 ) — — (4,998 ) Sales and redemptions of marketable securities 40,108 — — 40,108 Other 16,355 — — 16,355 Net cash used by investing activities (147,889 ) (392,113 ) (28,865 ) (568,867 ) Year Ended December 31, 2013 Motorcycles Financial Eliminations Consolidated Cash flows from financing activities: Repayment of medium-term notes — (27,858 ) — (27,858 ) Intercompany borrowing activity (50,000 ) 50,000 — — Proceeds from securitization debt — 647,516 — 647,516 Repayments of securitization debt — (840,387 ) — (840,387 ) Borrowings of asset-backed commercial paper — 88,456 — 88,456 Net increase in credit facilities and unsecured commercial paper — 371,085 — 371,085 Repayments of asset-backed commercial paper — (78,765 ) — (78,765 ) Net change in restricted cash — 43,201 — 43,201 Dividends paid (187,688 ) (185,000 ) 185,000 (187,688 ) Purchase of common stock for treasury, net of issuances (479,231 ) — — (479,231 ) Excess tax benefits from share based payments 19,895 — — 19,895 Issuance of common stock under employee stock option plans 50,567 — — 50,567 Net cash (used by) provided by financing activities (646,457 ) 68,248 185,000 (393,209 ) Effect of exchange rate changes on cash and cash equivalents (14,459 ) (2,084 ) — (16,543 ) Net (decrease) increase in cash and cash equivalents $ (8,804 ) $ 7,278 $ — $ (1,526 ) Cash and cash equivalents: Cash and cash equivalents – beginning of period $ 727,716 $ 340,422 $ — $ 1,068,138 Net (decrease) increase in cash and cash equivalents (8,804 ) 7,278 — (1,526 ) Cash and cash equivalents – end of period $ 718,912 $ 347,700 $ — $ 1,066,612 |