Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HARLEY DAVIDSON INC | |
Entity Central Index Key | 0000793952 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 159,072,779 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Revenue: | ||
Revenue | $ 1,384,380 | $ 1,542,121 |
Costs and expenses: | ||
Costs and expenses | 848,198 | 890,174 |
Financial Services interest expense | 52,324 | 48,450 |
Financial Services provision for credit losses | 34,491 | 30,052 |
Selling, administrative and engineering expense | 268,625 | 290,186 |
Restructuring expense | 13,630 | 46,842 |
Total costs and expenses | 1,217,268 | 1,305,704 |
Operating income | 167,112 | 236,417 |
Other income (expense), net | 4,660 | 220 |
Investment income | 6,358 | 1,203 |
Interest expense | 7,731 | 7,690 |
Income before provision for income taxes | 170,399 | 230,150 |
Provision for income taxes | 42,454 | 55,387 |
Net income | $ 127,945 | $ 174,763 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.80 | $ 1.04 |
Diluted (in dollars per share) | 0.80 | 1.03 |
Cash dividends per common share (in dollars per share) | $ 0.375 | $ 0.370 |
Motorcycles and Related Products | ||
Revenue: | ||
Revenue | $ 1,195,637 | $ 1,363,947 |
Financial Services | ||
Revenue: | ||
Revenue | $ 188,743 | $ 178,174 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 127,945 | $ 174,763 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 331 | 6,915 |
Derivative financial instruments | (441) | |
Derivative financial instruments | 765 | |
Pension and postretirement benefit plans | 7,743 | 85,765 |
Total other comprehensive income, net of tax | 7,633 | 93,445 |
Comprehensive income | $ 135,578 | $ 268,208 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 749,600 | $ 1,203,766 | $ 753,517 |
Marketable securities | 10,003 | 10,007 | 0 |
Accounts receivable, net | 353,541 | 306,474 | 355,107 |
Finance receivables, net | 2,443,899 | 2,214,424 | 2,341,918 |
Inventories | 595,806 | 556,128 | 564,571 |
Restricted cash | 43,471 | 49,275 | 54,569 |
Other current assets | 177,761 | 144,368 | 150,472 |
Total current assets | 4,374,081 | 4,484,442 | 4,220,154 |
Finance receivables, net | 4,994,693 | 5,007,507 | 4,784,524 |
Property, plant and equipment, net | 876,003 | 904,132 | 934,645 |
Prepaid pension costs | 0 | 0 | 122,230 |
Goodwill | 64,131 | 55,048 | 56,524 |
Deferred income taxes | 132,988 | 141,464 | 77,624 |
Lease assets | 55,305 | ||
Other long-term assets | 83,412 | 73,071 | 81,920 |
Total assets | 10,580,613 | 10,665,664 | 10,277,621 |
Current liabilities: | |||
Accounts payable | 380,918 | 284,861 | 319,040 |
Accrued liabilities | 644,171 | 601,130 | 566,408 |
Short-term debt | 1,192,925 | 1,135,810 | 1,036,976 |
Current portion of long-term debt, net | 1,372,050 | 1,575,799 | 1,872,679 |
Total current liabilities | 3,590,064 | 3,597,600 | 3,795,103 |
Long-term debt, net | 4,744,694 | 4,887,667 | 4,108,511 |
Lease liabilities | 39,516 | ||
Pension liabilities | 98,862 | 107,776 | 54,921 |
Postretirement healthcare liabilities | 93,897 | 94,453 | 113,031 |
Other long-term liabilities | 215,969 | 204,219 | 210,106 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Preferred stock, none issued | 0 | 0 | 0 |
Common stock | 1,826 | 1,819 | 1,818 |
Additional paid-in-capital | 1,465,581 | 1,459,620 | 1,432,692 |
Retained earnings | 2,074,669 | 2,007,583 | 1,725,626 |
Accumulated other comprehensive loss | (622,051) | (629,684) | (406,604) |
Treasury stock, at cost | (1,122,414) | (1,065,389) | (757,583) |
Total shareholders' equity | 1,797,611 | 1,773,949 | 1,995,949 |
Total liabilities and shareholders' equity | 10,580,613 | 10,665,664 | 10,277,621 |
Variable interest entities | |||
Current assets: | |||
Finance receivables, net | 130,454 | 175,043 | 182,033 |
Restricted cash - current and non-current | 39,764 | 47,203 | 55,140 |
Other current assets | 1,416 | 1,563 | 2,175 |
Finance receivables, net | 480,936 | 591,839 | 464,185 |
Current liabilities: | |||
Current portion of long-term debt, net | 137,488 | 189,693 | 205,055 |
Long-term debt, net | $ 408,153 | $ 488,191 | $ 361,049 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Statement of Financial Position [Abstract] | |||
Preferred stock, shares issued | 0 | 0 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 32,671 | $ 191,594 |
Cash flows from investing activities: | ||
Capital expenditures | (35,255) | (28,436) |
Origination of finance receivables | (851,372) | (798,067) |
Collections on finance receivables | 815,824 | 809,800 |
Acquisition of business | (7,000) | 0 |
Other | 603 | (4,948) |
Net cash used by investing activities | (77,200) | (21,651) |
Cash flows from financing activities: | ||
Proceeds from issuance of medium-term notes | 546,655 | 347,553 |
Repayments of medium-term notes | (750,000) | 0 |
Repayments of securitization debt | (76,505) | (67,955) |
Borrowings of asset-backed commercial paper | 0 | 35,504 |
Repayments of asset-backed commercial paper | (72,401) | (45,907) |
Net increase (decrease) in credit facilities and unsecured commercial paper | 58,527 | (234,145) |
Dividends paid | (60,859) | (62,731) |
Purchase of common stock for treasury | (61,712) | (72,968) |
Issuance of common stock under employee stock option plans | 616 | 1,719 |
Net cash used by financing activities | (415,679) | (98,930) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (409) | 2,034 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (460,617) | 73,047 |
Cash, cash equivalents and restricted cash: | ||
Cash, cash equivalents and restricted cash—beginning of period | 1,259,748 | 746,210 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (460,617) | 73,047 |
Cash, cash equivalents and restricted cash—end of period | 799,131 | 819,257 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 749,600 | 753,517 |
Restricted cash | 43,471 | 54,569 |
Restricted cash included in other long-term assets | $ 6,060 | $ 11,171 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent | Treasury Stock |
Beginning Balance, shares at Dec. 31, 2017 | 181,286,547 | |||||
Balance, beginning of period at Dec. 31, 2017 | $ 1,844,277 | $ 1,813 | $ 1,422,808 | $ 1,607,570 | $ (500,049) | $ (687,865) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 174,763 | |||||
Total other comprehensive loss, net of tax | 93,445 | 93,445 | ||||
Dividends | (62,731) | (62,731) | ||||
Repurchase of common stock | (72,968) | (72,968) | ||||
Share-based compensation (in shares) | 489,896 | |||||
Share-based compensation | 13,139 | $ 5 | 9,884 | 3,250 | ||
Ending Balance, shares at Apr. 01, 2018 | 181,776,443 | |||||
Balance, end of period at Apr. 01, 2018 | 1,995,949 | $ 1,818 | 1,432,692 | 1,725,626 | (406,604) | (757,583) |
Beginning Balance, shares at Dec. 31, 2018 | 181,931,225 | |||||
Balance, beginning of period at Dec. 31, 2018 | 1,773,949 | $ 1,819 | 1,459,620 | 2,007,583 | (629,684) | (1,065,389) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 127,945 | 127,945 | ||||
Total other comprehensive loss, net of tax | 7,633 | 7,633 | ||||
Dividends | (60,859) | (60,859) | ||||
Repurchase of common stock | (61,712) | (61,712) | ||||
Share-based compensation (in shares) | 702,687 | |||||
Share-based compensation | 10,655 | $ 7 | 5,961 | 4,687 | ||
Ending Balance, shares at Mar. 31, 2019 | 182,633,912 | |||||
Balance, end of period at Mar. 31, 2019 | $ 1,797,611 | $ 1,826 | $ 1,465,581 | $ 2,074,669 | $ (622,051) | $ (1,122,414) |
Basis of Presentation and Use o
Basis of Presentation and Use of Estimates | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The consolidated financial statements include the accounts of Harley-Davidson, Inc. and its wholly-owned subsidiaries (the Company), including the accounts of the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions are eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated balance sheets as of March 31, 2019 and April 1, 2018 , the consolidated statements of income for the three month periods then ended, the consolidated statements of comprehensive income for the three month periods then ended, the consolidated statements of cash flows for the three month periods then ended, and the consolidated statements of shareholders' equity for the three month periods then ended. Certain information and footnote disclosures normally included in complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting. These consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . The Company operates in two reportable segments: Motorcycles and Related Products (Motorcycles) and Financial Services. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Recently Adopted In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the existing lease accounting model by requiring a lessee to recognize the rights and obligations resulting from certain leases as assets and liabilities on the balance sheet. ASU 2016-02 also requires a company to disclose key information about their leasing arrangements. The Company adopted ASU 2016-02 on January 1, 2019 using a modified retrospective approach. Pursuant to ASU 2018-11, Leases (Topic 842): Targeted Improvements, the Company applied the new leases standard at the adoption date and recognized a cumulative effect adjustment to the opening balance sheet on January 1, 2019. The Company elected the package of practical expedients upon transition that allows entities not to reassess lease identification, classification and initial direct costs for leases that existed prior to adoption. The Company also elected the short-term lease practical expedient that allows entities to recognize lease payments on a straight-line basis over the lease term for leases with a term of 12 months or less. The Company has elected the practical expedient allowing entities to not separate non-lease components from lease components, but instead account for such components as a single lease component for all leases except leases involving assets operated by a third-party. The adoption of ASU 2016-02 resulted in the initial recognition of right of use assets and lease liabilities related to the Company's leasing arrangements totaling approximately $60 million on January 1, 2019. The adoption of ASU 2016-02 had no impact on opening retained earnings on January 1, 2019 and is not expected to materially impact consolidated net income or cash flows on an on-going basis. In August 2017, the FASB issued ASU No. 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). ASU 2017-12 amends ASC 815, Derivatives and Hedging to improve the financial reporting of hedging relationships and to simplify the application of the hedge accounting guidance. The ASU makes various updates to the hedge accounting model, including changing the recognition and presentation of changes in the fair value of the hedging instrument and amending disclosure requirements, among other things. The Company adopted ASU 2017-12 on January 1, 2019. The adoption of ASU 2017-12 did not have a material impact on its financial statements. Accounting Standards Not Yet Adopted In July 2016, the FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current credit loss standard generally requires that a loss actually be incurred before it is recognized, while the new standard will require recognition of full lifetime expected losses upon initial recognition of the financial instrument. The Company is required to adopt ASU 2016-13 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 on a modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2018. An entity should apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. The Company is currently evaluating the impact of adoption of ASU 2016-13 but anticipates the adoption of ASU 2016-13 will result in an increase in the annual provision for credit losses and the related allowance for credit losses. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company is required to adopt ASU 2017-04 for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 amends ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Early adoption is permitted in any period, for either the whole standard or only the provisions that eliminate or modify requirements. The amendments are required to be applied retrospectively, with the exception of a few disclosure additions, which are to be applied on a prospective basis. The Company is currently evaluating the impact of adopting ASU 2018-13, but does not believe that it will have a significant impact on its disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15). The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the existing internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2018-15. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table includes revenue disaggregated by major source (in thousands): Three months ended March 31, April 1, Motorcycles and Related Products: Motorcycles $ 964,575 $ 1,121,673 Parts & Accessories 159,703 169,075 General Merchandise 55,401 56,601 Licensing 8,577 8,358 Other 7,381 8,240 Revenue from Motorcycles and Related Products 1,195,637 1,363,947 Financial Services: Interest income 159,804 154,041 Securitization and servicing fee income 189 352 Other income 28,750 23,781 Revenue from Financial Services 188,743 178,174 Total revenue $ 1,384,380 $ 1,542,121 Deferred revenue relates to payments received at contract inception in advance of the Company’s performance under the contract and generally relates to the sale of Harley Ownership Group memberships and extended service plan contracts. Deferred revenue is recognized as revenue as the Company performs under the contract. Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the consolidated balance sheet, was as follows (in thousands): March 31, April 1, Balance, beginning of year $ 29,055 $ 23,441 Balance, end of period 30,228 27,624 Previously deferred revenue recognized as revenue in the three months ended March 31, 2019 and April 1, 2018 was $6.1 million and $4.0 million , respectively. The Company expects to recognize approximately $16.2 million of the remaining unearned revenue over the next 12 months and $14.0 million thereafter. |
Restructuring Expenses
Restructuring Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | Restructuring Expenses In January 2018, the Company initiated a plan to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization plan which includes the consolidation of its motorcycle assembly plant in Kansas City, Missouri, into its plant in York, Pennsylvania, and the closure of its wheel operations in Adelaide, Australia (Manufacturing Optimization Plan). As the U.S. operations are consolidated, the Company expects approximately 800 jobs will be eliminated with the closure of Kansas City operations and approximately 450 jobs will be added in York through 2019. Approximately 90 jobs will be eliminated in Adelaide. The Company expects to incur restructuring and other consolidation costs of $152 million to $162 million in the Motorcycles segment related to the Manufacturing Optimization Plan through 2019, of which approximately 70% will be cash charges. The current estimate includes $129 million to $134 million of restructuring expense and $23 million to $28 million of costs related to temporary inefficiencies. The Company expects restructuring expenses to include the cost of employee termination benefits, accelerated depreciation, and other project implementation costs of $40 million to $41 million, $51 million to $53 million, and $38 million to $40 million, respectively. In November 2018, the Company implemented a reorganization of its workforce (Reorganization Plan). As a result, approximately 70 employees left the Company on an involuntary basis. Restructuring expense related to these plans is recorded as a separate line item in the consolidated statements of income and the accrued restructuring liability is recorded in Accrued liabilities on the consolidated balance sheet. The Company expects the plans to be completed by mid-2019. Changes in the accrued restructuring liability (in thousands) were as follows: Three months ended March 31, 2019 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 24,958 $ — $ 79 $ 25,037 $ 3,461 $ 28,498 Restructuring expense (benefit) 9 8,379 5,636 14,024 (394 ) 13,630 Utilized - cash (2,600 ) — (5,528 ) (8,128 ) (2,014 ) (10,142 ) Utilized - non cash — (8,379 ) — (8,379 ) — (8,379 ) Foreign currency changes 34 — — 34 (2 ) 32 Balance, end of period $ 22,401 $ — $ 187 $ 22,588 $ 1,051 $ 23,639 Three months ended April 1, 2018 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ — $ — $ — $ — $ — $ — Restructuring expense 40,791 5,613 438 46,842 — 46,842 Utilized - cash (2,300 ) — (374 ) (2,674 ) — (2,674 ) Utilized - non cash — (5,613 ) — (5,613 ) — (5,613 ) Foreign currency changes (204 ) — (1 ) (205 ) — (205 ) Balance, end of period $ 38,287 $ — $ 63 $ 38,350 $ — $ 38,350 During the three months ended March 31, 2019 , the restructuring liability was adjusted to reflect updated assumptions resulting in a reversal of approximately $0.4 million of previously recognized restructuring expense. During the three months ended March 31, 2019 and April 1, 2018 , the Company incurred $3.6 million and $0.7 million , respectively, of incremental cost of goods sold due to temporary inefficiencies resulting from implementing the Manufacturing Optimization Plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s 2019 effective income tax rate for the three months ended March 31, 2019 was 24.9% compared to 24.1% for the three months ended April 1, 2018 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three months ended March 31, April 1, Numerator : Net income used in computing basic and diluted earnings per share $ 127,945 $ 174,763 Denominator : Denominator for basic earnings per share - weighted-average common shares 159,311 168,139 Effect of dilutive securities - employee stock compensation plan 715 1,035 Denominator for diluted earnings per share - adjusted weighted-average shares outstanding 160,026 169,174 Earnings per common share: Basic $ 0.80 $ 1.04 Diluted $ 0.80 $ 1.03 Outstanding options to purchase 1.2 million and 1.0 million shares of common stock for the three months ended March 31, 2019 and April 1, 2018 , respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive. The Company has a share-based compensation plan under which employees may be granted share-based awards including restricted stock units (RSUs). Non-forfeitable dividend equivalents are paid on unvested RSUs. As such, RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation for the three month periods ended March 31, 2019 and April 1, 2018 . |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On March 4, 2019 , the Company purchased certain assets and liabilities of StaCyc, Inc. for total consideration of $14.9 million including cash paid at acquisition of $7.0 million . StaCyc produces electric-powered two-wheelers specifically designed for children and supports the Company’s plans to expand its portfolio of electric two-wheeled vehicles. The Company has completed a provisional allocation of the purchase consideration which is subject to change upon the completion of the Company’s final valuation of acquired assets and liabilities. The primary assets acquired and included in the Motorcycles segment were goodwill of $9.5 million , which is expected to be tax deductible, and intangible assets of $5.3 million . |
Additional Balance Sheet and Ca
Additional Balance Sheet and Cash Flow Information | 3 Months Ended |
Mar. 31, 2019 | |
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 The Company’s marketable securities consisted of the following (in thousands): March 31, December 31, April 1, Debt securities $ 10,003 $ 10,007 $ — Mutual funds 49,896 44,243 49,402 Total marketable securities $ 59,899 $ 54,250 $ 49,402 The debt securities, which are included in Marketable securities on the consolidated balance sheets, are carried at fair value with unrealized gains or losses reported in other comprehensive income. The mutual fund investments are held to fund certain deferred compensation obligations. These investments, which are included in Other long-term assets on the consolidated balance sheets, are carried at fair value with gains and losses recorded in net income. Inventories Substantially all inventories located in the United States are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Inventories consisted of the following (in thousands): March 31, December 31, April 1, Raw materials and work in process $ 204,759 $ 177,110 $ 177,652 Motorcycle finished goods 304,386 301,630 289,046 Parts & accessories and general merchandise 145,300 136,027 150,228 Inventory at lower of FIFO cost or net realizable value 654,445 614,767 616,926 Excess of FIFO over LIFO cost (58,639 ) (58,639 ) (52,355 ) Total inventories, net $ 595,806 $ 556,128 $ 564,571 Operating Cash Flow The reconciliation of net income to net cash provided by operating activities is as follows (in thousands): Three months ended March 31, April 1, Cash flows from operating activities: Net income $ 127,945 $ 174,763 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 64,372 62,473 Amortization of deferred loan origination costs 18,968 20,116 Amortization of financing origination fees 2,194 2,028 Provision for long-term employee benefits 3,156 9,747 Employee benefit plan contributions and payments (2,507 ) (5,486 ) Stock compensation expense 6,537 7,962 Net change in wholesale finance receivables related to sales (237,569 ) (239,902 ) Provision for credit losses 34,491 30,052 Deferred income taxes 5,981 3,188 Other, net 2,731 (1,902 ) Changes in current assets and liabilities: Accounts receivable, net (49,746 ) (17,688 ) Finance receivables - accrued interest and other 92 4,758 Inventories (40,600 ) (21,542 ) Accounts payable and accrued liabilities 123,975 148,923 Derivative instruments 867 702 Other (28,216 ) 13,402 Total adjustments (95,274 ) 16,831 Net cash provided by operating activities $ 32,671 $ 191,594 |
Finance Receivables
Finance Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables The Company provides retail financial services to customers of the Company’s independent dealers in the United States and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment sales contracts and are primarily related to sales of motorcycles to the dealers' customers. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts. The Company offers wholesale financing to the Company’s independent dealers. Wholesale loans to dealers are generally secured by financed inventory or property and are originated in the U.S. and Canada. Wholesale finance receivables are related primarily to sales of motorcycles and related parts and accessories to dealers. Finance receivables, net, consisted of the following (in thousands): March 31, December 31, April 1, Retail $ 6,290,036 $ 6,328,201 $ 6,064,192 Wholesale 1,339,428 1,083,615 1,252,600 Total finance receivables 7,629,464 7,411,816 7,316,792 Allowance for credit losses (190,872 ) (189,885 ) (190,350 ) Finance receivables, net $ 7,438,592 $ 7,221,931 $ 7,126,442 A provision for credit losses on finance receivables is charged or credited to earnings in amounts that the Company believes are sufficient to maintain the allowance for credit losses at a level that is adequate to cover losses inherent in the existing portfolio. The allowance for credit losses represents management’s estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. However, due to the use of projections and assumptions in estimating the losses, the amount of losses actually incurred by the Company could differ from the amounts estimated. Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands): Three months ended March 31, 2019 Retail Wholesale Total Balance, beginning of period $ 182,098 $ 7,787 $ 189,885 Provision for credit losses 32,832 1,659 34,491 Charge-offs (44,721 ) — (44,721 ) Recoveries 11,217 — 11,217 Balance, end of period $ 181,426 $ 9,446 $ 190,872 Three months ended April 1, 2018 Retail Wholesale Total Balance, beginning of period $ 186,254 $ 6,217 $ 192,471 Provision for credit losses 28,069 1,983 30,052 Charge-offs (45,081 ) — (45,081 ) Recoveries 12,908 — 12,908 Balance, end of period $ 182,150 $ 8,200 $ 190,350 Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement. Portions of the allowance for credit losses are established to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance for credit losses covers estimated losses on finance receivables which are collectively reviewed for impairment. The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilizes loss forecast models which consider a variety of factors including, but not limited to, historical loss trends, origination or vintage analysis, known and inherent risks in the portfolio, the value of the underlying collateral, recovery rates, and current economic conditions including items such as unemployment rates. Retail finance receivables are not evaluated individually for impairment prior to charge-off and, therefore, are not reported as impaired loans. The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s evaluation for the wholesale allowance for credit losses is first based on a loan-by-loan review. A specific allowance for credit losses is established for wholesale finance receivables determined to be individually impaired when management concludes that the borrower will not be able to make full payment of the contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash that the Company expects to receive discounted at the loan’s original interest rate or the fair value of the collateral, if the loan is collateral-dependent. Finance receivables in the wholesale portfolio that are not considered impaired on an individual basis are segregated, based on similar risk characteristics, according to the Company’s internal risk rating system and collectively evaluated for impairment. The related allowance for credit losses is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past loan loss experience, current economic conditions, and the value of the underlying collateral. Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize the economic loss, the Company may modify certain finance receivables in troubled debt restructurings. Total restructured finance receivables are not significant. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands): March 31, 2019 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 181,426 9,446 190,872 Total allowance for credit losses $ 181,426 $ 9,446 $ 190,872 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,290,036 1,339,428 7,629,464 Total finance receivables $ 6,290,036 $ 1,339,428 $ 7,629,464 December 31, 2018 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 182,098 7,787 189,885 Total allowance for credit losses $ 182,098 $ 7,787 $ 189,885 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,328,201 1,083,615 7,411,816 Total finance receivables $ 6,328,201 $ 1,083,615 $ 7,411,816 April 1, 2018 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ 184 $ 184 Collectively evaluated for impairment 182,150 8,016 190,166 Total allowance for credit losses $ 182,150 $ 8,200 $ 190,350 Finance receivables, ending balance: Individually evaluated for impairment $ — $ 220 $ 220 Collectively evaluated for impairment 6,064,192 1,252,380 7,316,572 Total finance receivables $ 6,064,192 $ 1,252,600 $ 7,316,792 There are no wholesale finance receivables at March 31, 2019 or December 31, 2018 that are individually deemed to be impaired under ASC Topic 310, "Receivables". Additional information related to the wholesale finance receivables that are individually deemed to be impaired at April 1, 2018 includes (in thousands): Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Wholesale: No related allowance recorded $ — $ — $ — $ — $ — Related allowance recorded 251 220 184 251 — Total impaired wholesale finance receivables $ 251 $ 220 $ 184 $ 251 $ — Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed, or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of March 31, 2019 , December 31, 2018 and April 1, 2018 , all retail finance receivables were accounted for as interest-earning receivables, of which $39.0 million , $41.2 million and $27.9 million , respectively, were 90 days or more past due. Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once management determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the finance receivable becomes uncollectible and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. There were no wholesale receivables on non-accrual status at March 31, 2019 or December 31, 2018 . The recorded investment in non-accrual status wholesale finance receivables at April 1, 2018 was $ 0.2 million . At March 31, 2019 , December 31, 2018 and April 1, 2018 , $0.8 million , $1.1 million , and $0.2 million of wholesale finance receivables were 90 days or more past due and accruing interest, respectively. An analysis of the aging of past due finance receivables was as follows (in thousands): March 31, 2019 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 6,088,894 $ 119,150 $ 43,028 $ 38,964 $ 201,142 $ 6,290,036 Wholesale 1,337,429 862 355 782 1,999 1,339,428 Total $ 7,426,323 $ 120,012 $ 43,383 $ 39,746 $ 203,141 $ 7,629,464 December 31, 2018 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 6,100,186 $ 136,945 $ 49,825 $ 41,245 $ 228,015 $ 6,328,201 Wholesale 1,081,729 522 273 1,091 1,886 1,083,615 Total $ 7,181,915 $ 137,467 $ 50,098 $ 42,336 $ 229,901 $ 7,411,816 April 1, 2018 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 5,897,632 $ 105,366 $ 33,275 $ 27,919 $ 166,560 $ 6,064,192 Wholesale 1,247,175 549 4,705 171 5,425 1,252,600 Total $ 7,144,807 $ 105,915 $ 37,980 $ 28,090 $ 171,985 $ 7,316,792 A significant part of managing the Company's finance receivable portfolios includes the assessment of credit risk associated with each borrower. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit risk indicators for each portfolio. The Company manages retail credit risk through its credit approval policy and ongoing collection efforts. The Company uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants, enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. Retail loans with a FICO score of 640 or above at origination are considered prime, and loans with a FICO score below 640 are considered sub-prime. These credit quality indicators are determined at the time of loan origination and are not updated subsequent to the loan origination date. The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands): March 31, December 31, April 1, Prime $ 5,160,942 $ 5,183,754 $ 4,923,237 Sub-prime 1,129,094 1,144,447 1,140,955 Total $ 6,290,036 $ 6,328,201 $ 6,064,192 The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon management’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. The internal rating system considers factors such as the specific borrower's ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated on a quarterly basis. The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands): March 31, December 31, April 1, Doubtful $ 8,679 $ 2,210 $ 1,582 Substandard 7,866 9,660 3,368 Special Mention 11,484 10,299 33,085 Medium Risk 917 25,802 10,512 Low Risk 1,310,482 1,035,644 1,204,053 Total $ 1,339,428 $ 1,083,615 $ 1,252,600 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company is exposed to certain risks such as foreign currency exchange rate risk, interest rate risk and commodity price risk. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures which prohibit the use of financial instruments for speculative trading purposes. The Company sells products in foreign currencies and utilizes foreign currency exchange contracts to mitigate the effects of foreign currency exchange rate fluctuations related to the Euro, the Australian dollar, the Japanese yen, the Brazilian real, the Canadian dollar and the Mexican peso. The foreign currency exchange contracts generally have maturities of less than one year. The Company utilizes commodity contracts to mitigate the effects of commodity price fluctuations related to metals and fuel consumed in the Company’s motorcycle production and distribution processes. The commodity contracts generally have maturities of less than one year. The Company periodically utilizes treasury rate lock contracts to fix the interest rate on a portion of the principal related to the anticipated issuance of long-term debt as well as interest rate swaps to reduce the impact of fluctuations in interest rates on long-term debt. All derivative instruments are recognized on the balance sheet at fair value. In accordance with ASC Topic 815, Derivatives and Hedging, the accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivatives that are designated as cash flow hedges are initially recorded in other comprehensive income (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in cash flow hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. No component of a hedging derivative instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to foreign currency and commodity risks. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The following tables summarize the notional and recorded fair values of the Company’s derivative financial instruments (in thousands): Derivatives Designated as Cash Flow Hedging March 31, 2019 December 31, 2018 April 1, 2018 Derivative Notional Value Other Current Assets Accrued Liabil-ities Notional Value Other Current Assets Accrued Liabil-ities Notional Value Other Current Assets Accrued Liabil-ities Foreign currency contracts $ 480,937 $ 15,576 $ 646 $ 442,976 $ 15,071 $ 313 $ 720,869 $ 3,442 $ 22,807 Commodity contracts 589 — 6 827 — 46 728 — 11 Interest rate swaps 900,000 — 6,893 900,000 — 4,494 — — — Total $ 1,381,526 $ 15,576 $ 7,545 $ 1,343,803 $ 15,071 $ 4,853 $ 721,597 $ 3,442 $ 22,818 Derivatives Not Designated as Hedging March 31, 2019 December 31, 2018 April 1, 2018 Derivative Notional Value Other Current Assets Accrued Liabil-ities Notional Value Other Current Assets Accrued Liabil-ities Notional Value Other Current Assets Accrued Liabil-ities Foreign currency contracts $ 157,678 $ 413 $ 69 $ — $ — $ — $ — $ — $ — Commodity contracts 7,225 94 119 5,239 — 463 4,577 171 32 Total $ 164,903 $ 507 $ 188 $ 5,239 $ — $ 463 $ 4,577 $ 171 $ 32 The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands): Amount of Gain/(Loss) Recognized in OCI, before tax Amount of Gain/(Loss) Reclassified from AOCL into Income Location of Gain/(Loss) Reclassified from AOCL into Income Total Statement of Income Amount for Line Items in which the Effects of Cash Flow Hedges are Recorded Three months ended Three months ended Three months ended Cash Flow Hedges March 31, April 1, March 31, April 1, Income statement line item March 31, April 1, Foreign currency contracts $ 4,152 $ (5,890 ) $ 2,453 $ (6,709 ) Motorcycles cost of goods sold $ 848,198 $ 890,174 Commodity contracts 30 (16 ) (10 ) (73 ) Motorcycles cost of goods sold $ 848,198 $ 890,174 Treasury rate locks — — (90 ) (90 ) Interest expense $ 7,731 $ 7,690 Treasury rate locks — — (32 ) (36 ) Financial Services interest expense $ 52,324 $ 48,450 Interest rate swaps (3,005 ) — (606 ) — Financial Services interest expense $ 52,324 $ 48,450 Total $ 1,177 $ (5,906 ) $ 1,715 $ (6,908 ) The amount of net gain included in accumulated other comprehensive loss at March 31, 2019 , estimated to be reclassified into income over the next twelve months was $11.6 million . The following table summarizes the amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments. The following amounts were recorded in Motorcycles cost of goods sold (in thousands): Amount of Gain Recognized in Income on Derivative Three months ended Derivatives Not Designated as Hedges March 31, April 1, Foreign currency contracts $ 887 $ — Commodity contracts 317 6 Total $ 1,204 $ 6 The Company is exposed to credit loss risk in the event of non-performance by counterparties to these derivative financial instruments. Although no assurances can be given, the Company does not expect any of the counterparties to these derivative financial instruments to fail to meet its obligations. To manage credit loss risk, the Company evaluates counterparties based on credit ratings and, on a quarterly basis, evaluates each hedge’s net position relative to the counterparty’s ability to cover its position. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is or contains a lease at contract inception. Right-of-use (ROU) assets related to leases are recorded in Lease assets and lease liabilities are recorded in Accrued liabilities and Lease liabilities on the consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement date based on the present value of future lease payments over the lease term. The ROU asset also includes prepaid lease payments and initial direct costs and is reduced for lease incentives paid by the lessor. The discount rate used to determine the present value is generally the Company's incremental borrowing rate because the implicit rate in the lease is not readily determinable. The lease term used to calculate the ROU asset and lease liability includes periods covered by options to extend or terminate when the Company is reasonably certain the lease term will include these optional periods. The Company has lease arrangements for sales and administrative offices, manufacturing and distribution facilities, product testing facilities, equipment and vehicles. All of the Company’s lease arrangements are accounted for as operating leases. The Company’s leases have remaining lease terms ranging from 1 to 13 years, some of which include options to extend the leases for periods generally not greater than 5 years and some of which include options to terminate the leases within 1 year. Certain leases also include options to purchase the leased asset. Leases do not contain any material residual value guarantees or material restrictive covenants. Operating lease expense for the three months ended March 31, 2019 was $6.3 million . This includes variable lease costs related to leases involving assets operated by a third-party of approximately $1.1 million . Other variable and short-term lease costs were not material. Balance sheet information related to leases was as follows (in thousands): March 31, Lease assets $ 55,305 Accrued liabilities $ 17,391 Lease liabilities 39,516 $ 56,907 Future maturities of lease liabilities were as follows as of March 31, 2019 (in thousands): Operating Leases 2019 $ 14,743 2020 15,023 2021 12,467 2022 8,837 2023 3,511 Thereafter 6,291 Total present value of lease payments 60,872 Less present value discount 3,965 Total lease liability $ 56,907 Other lease information is as follows: Three months ended March 31, Cash paid for amounts included in the measurement of lease liabilities (in millions): Operating cash flows $ 5,361 Right-of-use assets obtained in exchange for lease obligations (in millions) 298 March 31, Weighted average remaining lease term (in years) 4.61 Weighted average discount rate 3.3 % |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt with a contractual term of one year or less is generally classified as short-term debt and consisted of the following (in thousands): March 31, December 31, April 1, Unsecured commercial paper $ 1,192,925 $ 1,135,810 $ 1,036,976 Total short-term debt $ 1,192,925 $ 1,135,810 $ 1,036,976 Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following (in thousands): March 31, December 31, April 1, Secured debt (Note 13) Asset-backed Canadian commercial paper conduit facility $ 142,676 $ 155,951 $ 158,162 Asset-backed U.S. commercial paper conduit facilities 526,947 582,717 281,311 Asset-backed securitization debt 18,712 95,216 285,130 Less: unamortized discount and debt issuance costs (18 ) (49 ) (337 ) Total secured debt 688,317 833,835 724,266 Unsecured notes (at par value) 6.80% Medium-term notes due in 2018, issued May 2008 — — 877,488 2.25% Medium-term notes due in 2019, issued January 2016 — 600,000 600,000 Floating-rate Medium-term notes due in 2019, issued March 2017 (a) — 150,000 150,000 2.40% Medium-term notes due in 2019, issued September 2014 600,000 600,000 600,000 2.15% Medium-term notes due in 2020, issued February 2015 600,000 600,000 600,000 Floating-rate Medium-term notes due in 2020, issued May 2018 (b) 450,000 450,000 — 2.40% Medium-term notes due in 2020, issued March 2017 350,000 350,000 350,000 2.85% Medium-term notes due in 2021, issued January 2016 600,000 600,000 600,000 Floating-rate Medium-term notes due in 2021, issued November 2018 (c) 450,000 450,000 — 3.55% Medium-term notes due in 2021, issued May 2018 350,000 350,000 — 4.05% Medium-term notes due in 2022, issued February 2019 550,000 — — 2.55% Medium-term notes due in 2022, issued June 2017 400,000 400,000 400,000 3.35% Medium-term notes due in 2023, issued February 2018 350,000 350,000 350,000 3.50% Senior unsecured notes due in 2025, issued July 2015 450,000 450,000 450,000 4.625% Senior unsecured notes due in 2045, issued July 2015 300,000 300,000 300,000 Less: unamortized discount and debt issuance costs (21,573 ) (20,369 ) (20,564 ) Gross long-term debt 6,116,744 6,463,466 5,981,190 Less: current portion of long-term debt, net of unamortized discount and debt issuance costs (1,372,050 ) (1,575,799 ) (1,872,679 ) Total long-term debt $ 4,744,694 $ 4,887,667 $ 4,108,511 (a) Floating interest rate based on LIBOR plus 35 bps. (b) Floating interest rate based on LIBOR plus 50 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details. (c) Floating interest rate based on LIBOR plus 94 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details. |
Asset-Backed Financing
Asset-Backed Financing | 3 Months Ended |
Mar. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Asset-Backed Financing | Asset-Backed Financing The Company participates in asset-backed financing both through asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. In the Company's asset-backed financing programs, the Company transfers retail motorcycle finance receivables to special purpose entities (SPEs), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash, through the issuance of debt. The Company retains servicing rights for all of the retail motorcycle finance receivables transferred to SPEs as part of an asset-backed financing. The accounting treatment for asset-backed financings depends on the terms of the related transaction and the Company’s continuing involvement with the VIE. In transactions where the Company has power over the significant activities of the VIE and has an obligation to absorb losses or the right to receive benefits from the VIE that are potentially significant to the VIE, the Company is the primary beneficiary of the VIE and consolidates the VIE within its consolidated financial statements. On a consolidated basis, the asset-backed financing is treated as a secured borrowing in this type of transaction and is referred to as an on-balance sheet asset-backed financing. In transactions where the Company is not the primary beneficiary of the VIE, the Company must determine whether it can achieve a sale for accounting purposes under ASC Topic 860, Transfers and Servicing. To achieve a sale for accounting purposes, the assets being transferred must be legally isolated, not be constrained by restrictions from further transfer, and be deemed to be beyond the Company’s control. If the Company does not meet all of these criteria for sale accounting, then the transaction is accounted for as a secured borrowing and is referred to as an on-balance sheet asset-backed financing. If the Company meets all three of the sale criteria above, the transaction is recorded as a sale for accounting purposes and is referred to as an off-balance sheet asset-backed financing. Upon sale, the retail motorcycle finance receivables are removed from the Company’s balance sheet and a gain or loss is recognized for the difference between the cash proceeds received, the assets derecognized, and the liabilities recognized as part of the transaction. The gain or loss on sale is included in Financial Services revenue in the consolidated statements of income. The Company is not required, and does not currently intend, to provide any additional financial support to the on- or off-balance sheet VIEs associated with these transactions. Investors and creditors in these transactions only have recourse to the assets held by the VIEs. The following tables show the assets and liabilities related to the on-balance sheet asset-backed financings included in the financial statements (in thousands): March 31, 2019 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities Consolidated VIEs Asset-backed securitizations $ 62,771 $ (1,855 ) $ 8,199 $ 134 $ 69,249 $ 18,694 Asset-backed U.S. commercial paper conduit facilities 567,295 (16,821 ) 31,565 1,282 583,321 526,947 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 164,779 (3,003 ) 9,767 282 171,825 142,676 Total on-balance sheet assets and liabilities $ 794,845 $ (21,679 ) $ 49,531 $ 1,698 $ 824,395 $ 688,317 December 31, 2018 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities Consolidated VIEs Asset-backed securitizations $ 158,718 $ (4,691 ) $ 17,191 $ 329 $ 171,547 $ 95,167 Asset-backed U.S. commercial paper conduit facilities 631,588 (18,733 ) 30,012 1,234 644,101 582,717 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 181,774 (3,130 ) 8,779 343 187,766 155,951 Total on-balance sheet assets and liabilities $ 972,080 $ (26,554 ) $ 55,982 $ 1,906 $ 1,003,414 $ 833,835 April 1, 2018 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities Consolidated VIEs Asset-backed securitizations $ 367,584 $ (11,387 ) $ 38,207 $ 1,207 $ 395,611 $ 284,793 Asset-backed U.S. commercial paper conduit facilities 299,318 (9,297 ) 16,933 968 307,922 281,311 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 183,073 (3,085 ) 10,600 320 190,908 158,162 Total on-balance sheet assets and liabilities $ 849,975 $ (23,769 ) $ 65,740 $ 2,495 $ 894,441 $ 724,266 On-Balance Sheet Asset-Backed Securitization VIEs The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each on-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitizations are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Restricted cash balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes have a contractual life maturing in 2022. The Company is the primary beneficiary of its on-balance sheet asset-backed securitization VIEs because it retains servicing rights and a residual interest in the VIEs in the form of a debt security. As the servicer, the Company is the variable interest holder with the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. As a residual interest holder, the Company has the obligation to absorb losses and the right to receive benefits which could potentially be significant to the VIE. There were no on-balance sheet asset-backed securitization transactions during the first quarter of 2019 or 2018. On-Balance Sheet Asset-Backed U.S. Commercial Paper Conduit Facilities VIE The Company has agreements with third-party bank-sponsored asset-backed U.S. commercial paper conduits under which it may transfer U.S. retail motorcycle finance receivables to an SPE, which in turn may issue debt to those third-party bank-sponsored asset-backed U.S. commercial paper conduits. In November 2018, the Company renewed its existing $600.0 million revolving facility agreement with third-party bank-sponsored asset-backed U.S. commercial paper conduits. Also at that time, the Company amended its existing $300.0 million revolving facility agreement with third-party bank-sponsored asset-backed U.S. commercial paper conduits, increasing the aggregate initial commitment to $600.0 million . The aggregate commitment under this agreement is reduced monthly as collections on the related finance receivables are applied to the outstanding principal until the outstanding principal balance is less than or equal to $300.0 million , at which point the aggregate commitment will equal $300.0 million . Availability under the revolving facilities (together, the U.S. Conduit Facilities) is based on, among other things, the amount of eligible U.S. retail motorcycle finance receivables held by the SPE as collateral. Under the U.S. Conduit Facilities, the assets of the SPE are restricted as collateral for the payment of the debt or other obligations arising in the transaction and are not available to pay other obligations or claims of the Company’s creditors. The terms for this debt provide for interest on the outstanding principal based on prevailing commercial paper rates or LIBOR to the extent the advance is not funded by a conduit lender through the issuance of commercial paper plus, in each case, a program fee based on outstanding principal. The U.S. Conduit Facilities also provide for an unused commitment fee based on the unused portion of the total aggregate commitment. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the U.S. Conduit Facilities, any outstanding principal will continue to be reduced monthly through available collections. The expected remaining term of the related receivables held by the SPE is approximately 5 years . Unless earlier terminated or extended by mutual agreement of the Company and the lenders, as of March 31, 2019 , the U.S. Conduit Facilities have an expiration date of November 29, 2019 . The Company is the primary beneficiary of its U.S. Conduit Facilities VIE because it retains servicing rights and a residual interest in the VIE in the form of a debt security. As the servicer, the Company is the variable interest holder with the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. As a residual interest holder, the Company has the obligation to absorb losses and the right to receive benefits which could potentially be significant to the VIE. There were no finance receivable transfers under the U.S. Conduit Facilities during the first quarter of 2019. During the first quarter of 2018, the Company transferred $32.9 million of U.S. retail motorcycle finance receivables to an SPE which, in turn, issued $29.3 million of debt under the U.S. Conduit Facilities. On-Balance Sheet Asset-Backed Canadian Commercial Paper Conduit Facility In June 2018, the Company renewed its facility agreement (Canadian Conduit) with a Canadian bank-sponsored asset-backed commercial paper conduit. Under the agreement, the Canadian Conduit is contractually committed, at the Company's option, to purchase eligible Canadian retail motorcycle finance receivables for proceeds up to C$220.0 million . The transferred assets are restricted as collateral for the payment of the debt. The terms for this debt provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$220.0 million . There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. The expected remaining term of the related receivables is approximately 5 years . Unless earlier terminated or extended by mutual agreement between the Company and the lenders, as of March 31, 2019 , the Canadian Conduit has an expiration date of June 28, 2019 . The Company is not the primary beneficiary of the Canadian bank-sponsored, multi-seller conduit VIE; therefore, the Company does not consolidate the VIE. However, the Company treats the conduit facility as a secured borrowing as it maintains effective control over the assets transferred to the VIE and, therefore, does not meet the requirements for sale accounting. As the Company participates in and does not consolidate the Canadian bank-sponsored, multi-seller conduit VIE, the maximum exposure to loss associated with this VIE, which would only be incurred in the unlikely event that all the finance receivables and underlying collateral have no residual value, was $29.1 million at March 31, 2019 . The maximum exposure is not an indication of the Company's expected loss exposure. There were no finance receivable transfers under the Canadian Conduit Facilities during the first quarter of 2019. During the first quarter of 2018, the Company transferred $7.6 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $6.2 million . Off-Balance Sheet Asset-Backed Securitization VIE There were no off-balance sheet asset-backed securitization transactions during the first quarter of 2019 or 2018. During the second quarter of 2016, the Company sold retail motorcycle finance receivables with a principal balance of $301.8 million into a securitization VIE that was not consolidated, recognized a gain of $9.3 million and received cash proceeds of $312.6 million. Similar to an on-balance sheet asset-backed securitization, the Company transferred U.S. retail motorcycle finance receivables to an SPE which in turn issued secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. The off-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitization are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors. In an on-balance sheet asset-backed securitization, the Company retains a financial interest in the VIE in the form of a debt security. As part of this off-balance sheet securitization, the Company did not retain any financial interest in the VIE beyond servicing rights and ordinary representations and warranties and related covenants. The Company is not the primary beneficiary of the off-balance sheet asset-backed securitization VIE because it only retained servicing rights and does not have the obligation to absorb losses or the right to receive benefits from the VIE which could potentially be significant to the VIE. Accordingly, this transaction met the accounting sale requirements under ASC Topic 860 and was recorded as a sale for accounting purposes. Upon the sale, the retail motorcycle finance receivables were removed from the Company’s balance sheet and a gain was recognized for the difference between the cash proceeds received, the assets derecognized and the liabilities recognized as part of the transaction. The gain on sale was included in Financial Services revenue in the consolidated statements of income. At March 31, 2019 , the assets of this off-balance sheet asset-backed securitization VIE were $67.1 million and represented the current unpaid principal balance of the retail motorcycle finance receivables, which was the Company’s maximum exposure to loss in the off-balance sheet VIE at March 31, 2019 . This is based on the unlikely event that all the receivables have underwriting defects or other defects that trigger a violation of certain covenants and that the underlying collateral has no residual value. This maximum exposure is not an indication of expected losses. Servicing Activities The Company services all retail motorcycle finance receivables that it originates. When the Company transfers retail motorcycle finance receivables to SPEs through asset-backed financings, the Company retains the right to service the finance receivables and receives servicing fees based on the securitized finance receivables balance and certain ancillary fees. In on-balance sheet asset-backed financings, servicing fees are eliminated in consolidation and therefore are not recorded on a consolidated basis. In off-balance sheet asset-backed financings, servicing fees and ancillary fees are recorded in Financial Services revenue in the consolidated statements of income. The fees the Company is paid for servicing represent adequate compensation, and consequently, the Company does not recognize a servicing asset or liability. The Company recognized servicing fee income of $0.2 million and $0.4 million during the first quarter of 2019 and 2018, respectively. The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands): March 31, December 31, April 1, On-balance sheet retail motorcycle finance receivables $ 6,159,058 $ 6,185,350 $ 5,923,564 Off-balance sheet retail motorcycle finance receivables 67,062 79,613 127,643 Total serviced retail motorcycle finance receivables $ 6,226,120 $ 6,264,963 $ 6,051,207 The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands): Amount 30 days or more past due: March 31, December 31, April 1, On-balance sheet retail motorcycle finance receivables $ 201,142 $ 228,015 $ 166,560 Off-balance sheet retail motorcycle finance receivables 1,194 1,658 1,652 Total serviced retail motorcycle finance receivables $ 202,336 $ 229,673 $ 168,212 Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands): Three months ended March 31, April 1, On-balance sheet retail motorcycle finance receivables $ 33,504 $ 32,173 Off-balance sheet retail motorcycle finance receivables 231 361 Total serviced retail motorcycle finance receivables $ 33,735 $ 32,534 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company assesses the inputs used to measure fair value using a three-tier hierarchy. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity prices, and yield curves. The Company uses the market approach to derive the fair value for its Level 2 fair value measurements. Forward contracts for foreign currency, commodities, and treasury rate locks are valued using quoted forward rates and prices; interest rate swaps are valued using quoted interest rates and yield curves; investments in marketable securities and cash equivalents are valued using quoted prices. Level 3 inputs are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2019 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 498,207 $ 321,300 $ 176,907 $ — Marketable securities 59,899 49,896 10,003 — Derivatives 16,083 — 16,083 — Total $ 574,189 $ 371,196 $ 202,993 $ — Liabilities: Derivatives $ 7,733 $ — $ 7,733 $ — December 31, 2018 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 998,601 $ 728,800 $ 269,801 $ — Marketable securities 54,250 44,243 10,007 — Derivatives 15,071 — 15,071 — Total $ 1,067,922 $ 773,043 $ 294,879 $ — Liabilities: Derivatives $ 5,316 $ — $ 5,316 $ — April 1, 2018 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 653,124 $ 326,324 $ 326,800 $ — Marketable securities 49,402 49,402 — — Derivatives 3,613 — 3,613 — Total $ 706,139 $ 375,726 $ 330,413 $ — Liabilities: Derivatives $ 22,850 $ — $ 22,850 $ — Nonrecurring Fair Value Measurements Repossessed inventory is recorded at the lower of cost or net realizable value through a nonrecurring fair value measurement. Repossessed inventory was $21.4 million , $20.2 million and $23.8 million at March 31, 2019 , December 31, 2018 and April 1, 2018 , respectively, for which the fair value adjustment was $9.3 million , $9.7 million and $8.3 million , respectively. Fair value is estimated using Level 2 inputs based on the recent market values of repossessed inventory. Fair Value of Financial Instruments Measured at Cost The carrying value of the Company's cash and cash equivalents and restricted cash approximates their fair values. The following table summarizes the fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost (in thousands): March 31, 2019 December 31, 2018 April 1, 2018 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,520,418 $ 7,438,592 $ 7,304,334 $ 7,221,931 $ 7,195,908 $ 7,126,442 Liabilities: Unsecured commercial paper $ 1,192,925 $ 1,192,925 $ 1,135,810 $ 1,135,810 $ 1,036,976 $ 1,036,976 Asset-backed U.S. commercial paper conduit facilities $ 526,947 $ 526,947 $ 582,717 $ 582,717 $ 281,311 $ 281,311 Asset-backed Canadian commercial paper conduit facility $ 142,676 $ 142,676 $ 155,951 $ 155,951 $ 158,162 $ 158,162 Medium-term notes $ 4,675,767 $ 4,685,636 $ 4,829,671 $ 4,887,007 $ 4,486,399 $ 4,514,798 Senior unsecured notes $ 719,544 $ 742,791 $ 707,198 $ 742,624 $ 750,440 $ 742,126 Asset-backed securitization debt $ 18,674 $ 18,694 $ 94,974 $ 95,167 $ 283,591 $ 284,793 Finance Receivables, Net – The carrying value of retail and wholesale finance receivables in the financial statements is amortized cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The amortized cost basis of wholesale finance receivables approximates fair value because they either are short-term or have interest rates that adjust with changes in market interest rates. Debt – The carrying value of debt in the financial statements is generally amortized cost, net of discounts and debt issuance costs. The carrying value of unsecured commercial paper calculated using Level 2 inputs approximates fair value due to its short maturity. The carrying value of debt provided under the U.S. Conduit Facilities and Canadian Conduit Facility calculated using Level 2 inputs approximates fair value since the interest rates charged under the facility are tied directly to market rates and fluctuate as market rates change. The fair values of the medium-term notes and senior unsecured notes are estimated based upon rates currently available for debt with similar terms and remaining maturities (Level 2 inputs). The fair value of the debt related to on-balance sheet asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities (Level 2 inputs). |
Product Warranty and Recall Cam
Product Warranty and Recall Campaigns | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty and Recall Campaigns | Product Warranty and Recall Campaigns The Company currently provides a standard two -year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company currently provides a standard three -year limited warranty on all new motorcycles sold. In addition, the Company provides a one -year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company accrues for the estimated cost associated with voluntary recalls in the period that management approves and commits to the recall. Changes in the Company’s warranty and recall liability were as follows (in thousands): Three months ended March 31, April 1, Balance, beginning of period $ 131,740 $ 94,202 Warranties issued during the period 11,617 14,606 Settlements made during the period (19,617 ) (16,638 ) Recalls and changes to pre-existing warranty liabilities (1,353 ) 2,905 Balance, end of period $ 122,387 $ 95,075 The liability for recall campaigns was $64.1 million , $73.3 million and $32.3 million as of March 31, 2019 , December 31, 2018 and April 1, 2018 , respectively. The Company recorded supplier recoveries within operating expenses separate from the amounts disclosed above of $28.0 million for the three months ended March 31, 2019 . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a defined benefit qualified pension plan and postretirement healthcare benefit plans that cover certain employees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees which were instituted to replace benefits lost under the Tax Revenue Reconciliation Act of 1993. Service cost is allocated among Selling, administrative and engineering expense, Cost of goods sold and Inventory . Amounts capitalized in inventory are not significant. Non-service cost components of net periodic benefit cost are presented in Other income (expense), net . Components of net periodic benefit cost were as follows (in thousands): Three months ended March 31, April 1, Pension and SERPA Benefits Service cost $ 6,632 $ 8,155 Interest cost 21,371 20,590 Expected return on plan assets (35,581 ) (36,891 ) Amortization of unrecognized: Prior service credit (483 ) (106 ) Net loss 11,128 15,819 Curtailment loss — 1,018 Net periodic benefit cost $ 3,067 $ 8,585 Postretirement Healthcare Benefits Service cost $ 1,184 $ 1,812 Interest cost 2,938 2,897 Expected return on plan assets (3,507 ) (3,541 ) Amortization of unrecognized: Prior service credit (595 ) (460 ) Net loss 69 454 Net periodic benefit cost $ 89 $ 1,162 During the three months ended April 1, 2018 , the qualified pension plan and certain postretirement healthcare plan assets and obligations were remeasured as a result of a curtailment of benefits related to the planned closure of the Company's motorcycle assembly plant in Kansas City, Missouri, discussed further in Note 4. As a result of the remeasurement, the Company recorded a benefit of $96.4 million before income taxes in other comprehensive income during the three months ended April 1, 2018 . There are no required or planned qualified pension plan contributions for 2019 . The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter. Environmental Protection Agency Notice: In December 2009, the Company received formal, written requests for information from the United States Environmental Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels, (ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written responses to the EPA’s inquiry and has engaged in information exchanges and discussions with the EPA. In August 2016, the Company entered into a consent decree with the EPA regarding these issues, and the consent decree was subsequently revised in July 2017 (the Settlement). In the Settlement, the Company agreed to, among other things, pay a fine, and not sell tuning products unless they are approved by the EPA or California Air Resources Board. In December 2017, the Department of Justice (DOJ), on behalf of the EPA, filed the Settlement with the U.S. District Court for the District of Columbia for the purpose of obtaining court approval of the Settlement. Three amicus briefs opposing portions of the Settlement were filed with the court by the deadline of January 31, 2018. On March 1, 2018, the Company and the DOJ each filed separate response briefs. The Company is awaiting the court's decision on whether or not to finalize the Settlement, and on February 8, 2019 the DOJ filed a status update reminding the court of the current status of the outstanding matter. The Company has an accrual associated with this matter which is included in Accrued liabilities on the consolidated balance sheets, and as a result, if it is finalized, the Settlement would not have a material adverse effect on the Company's financial condition or results of operations. The Settlement is not final until it is approved by the court, and if it is not approved by the court, the Company cannot reasonably estimate the impact of any remedies the EPA might seek beyond the Company's current reserve for this matter. York Environmental Matters: The Company is involved with government agencies and groups of potentially responsible parties related to a matter involving the cleanup of soil and groundwater contamination at its York, Pennsylvania facility. The York facility was formerly used by the U.S. Navy and AMF prior to the purchase of the York facility by the Company from AMF in 1981. The Company has been working with the Pennsylvania Department of Environmental Protection (PADEP) since 1986 and with the U.S. Environmental Protection Agency (EPA) in undertaking environmental investigation and remediation activities, including a site-wide remedial investigation/feasibility study (RI/FS). In January 1995, the Company entered into a settlement agreement (the Agreement) with the Navy, and the parties amended the Agreement in 2013 to address ordnance and explosive waste. The Agreement calls for the Navy and the Company to contribute amounts into a trust equal to 53% and 47% , respectively, of costs associated with environmental investigation and remediation activities at the York facility (Response Costs). The trust administers the payment of the Response Costs incurred at the York facility as covered by the Agreement. The Company has an accrual for its estimate of its share of the future Response Costs at the York facility which is included in Other long-term liabilities on the consolidated balance sheets. While the work on the RI/FS is now complete and the final remedy was proposed in late 2018, it has not yet been approved, and given the uncertainty that exists concerning the nature and scope of additional environmental remediation that may ultimately be required under the approved final remedy, the Company is unable to make a reasonable estimate of those additional costs, if any, that may result. The estimate of the Company's future Response Costs that will be incurred at the York facility is based on reports of independent environmental consultants retained by the Company, the actual costs incurred to date, and the estimated costs to complete the necessary investigation and remediation activities. Product Liability Matters: The Company is involved in product liability suits related to the operation of its business. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and that product liability suits will not have a material adverse effect on the Company’s consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables set forth the changes in accumulated other comprehensive loss (AOCL) (in thousands): Three months ended March 31, 2019 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (49,608 ) $ 1,785 $ (581,861 ) $ (629,684 ) Other comprehensive income before reclassifications 606 1,177 — 1,783 Income tax expense (275 ) (314 ) — (589 ) Net other comprehensive income before reclassifications 331 863 — 1,194 Reclassifications: Realized gains - foreign currency contracts (a) — (2,453 ) — (2,453 ) Realized losses - commodity contracts (a) — 10 — 10 Realized losses - treasury rate locks (b) — 122 — 122 Realized losses - interest rate swap (b) — 606 — 606 Prior service credits (c) — — (1,078 ) (1,078 ) Actuarial losses (c) — — 11,197 11,197 Total reclassifications before tax — (1,715 ) 10,119 8,404 Income tax benefit (expense) — 411 (2,376 ) (1,965 ) Net reclassifications — (1,304 ) 7,743 6,439 Other comprehensive income (loss) 331 (441 ) 7,743 7,633 Balance, end of period $ (49,277 ) $ 1,344 $ (574,118 ) $ (622,051 ) Three months ended April 1, 2018 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (21,852 ) $ (17,254 ) $ (460,943 ) $ (500,049 ) Other comprehensive income (loss) before reclassifications 6,915 (5,906 ) 96,374 97,383 Income tax benefit (expense) — 1,387 (22,629 ) (21,242 ) Net other comprehensive income (loss) before reclassifications 6,915 (4,519 ) 73,745 76,141 Reclassifications: Realized losses - foreign currency contracts (a) — 6,709 — 6,709 Realized losses - commodity contracts (a) — 73 — 73 Realized losses - treasury rate locks (b) — 126 — 126 Prior service credits (c) — — (566 ) (566 ) Actuarial losses (c) — — 16,273 16,273 Total reclassifications before tax — 6,908 15,707 22,615 Income tax expense — (1,624 ) (3,687 ) (5,311 ) Net reclassifications — 5,284 12,020 17,304 Other comprehensive income 6,915 765 85,765 93,445 Balance, end of period $ (14,937 ) $ (16,489 ) $ (375,178 ) $ (406,604 ) (a) Amounts reclassified to net income are included in Motorcycles and Related Products cost of goods sold (b) Amounts reclassified to net income are included in Interest expense and Financial Services interest expense (c) Amounts reclassified are included in the computation of net periodic benefit cost; see Note 16 for information related to pension and postretirement benefit plans |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Harley-Davidson, Inc. is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles and Related Products (Motorcycles) segment and the Financial Services segment. The Company’s reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. Selected segment information is set forth below (in thousands): Three months ended March 31, April 1, Motorcycles net revenue $ 1,195,637 $ 1,363,947 Gross profit 347,439 473,773 Selling, administrative and engineering expense 225,428 254,093 Restructuring expense 13,630 46,842 Operating income from Motorcycles 108,381 172,838 Financial Services revenue 188,743 178,174 Financial Services expense 130,012 114,595 Operating income from Financial Services 58,731 63,579 Operating income $ 167,112 $ 236,417 |
Supplemental Consolidating Data
Supplemental Consolidating Data | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 the reportable segments. All supplemental data is presented in thousands. Three months ended March 31, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,200,009 $ — $ (4,372 ) $ 1,195,637 Financial Services — 186,753 1,990 188,743 Total revenue 1,200,009 186,753 (2,382 ) 1,384,380 Costs and expenses: Motorcycles and Related Products cost of goods sold 848,703 — (505 ) 848,198 Financial Services interest expense — 52,324 — 52,324 Financial Services provision for credit losses — 34,491 — 34,491 Selling, administrative and engineering expense 227,992 42,588 (1,955 ) 268,625 Restructuring expense 13,630 — — 13,630 Total costs and expenses 1,090,325 129,403 (2,460 ) 1,217,268 Operating income 109,684 57,350 78 167,112 Other income (expense), net 4,660 — — 4,660 Investment income 51,358 — (45,000 ) 6,358 Interest expense 7,731 — — 7,731 Income before provision for income taxes 157,971 57,350 (44,922 ) 170,399 Provision for income taxes 28,557 13,897 — 42,454 Net income $ 129,414 $ 43,453 $ (44,922 ) $ 127,945 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,366,246 $ — $ (2,299 ) $ 1,363,947 Financial Services — 178,460 (286 ) 178,174 Total revenue 1,366,246 178,460 (2,585 ) 1,542,121 Costs and expenses: Motorcycles and Related Products cost of goods sold 890,174 — — 890,174 Financial Services interest expense — 48,450 — 48,450 Financial Services provision for credit losses — 30,052 — 30,052 Selling, administrative and engineering expense 254,401 38,391 (2,606 ) 290,186 Restructuring expense 46,842 — — 46,842 Total costs and expenses 1,191,417 116,893 (2,606 ) 1,305,704 Operating income 174,829 61,567 21 236,417 Other income (expense), net 220 — — 220 Investment income 111,203 — (110,000 ) 1,203 Interest expense 7,690 — — 7,690 Income before provision for income taxes 278,562 61,567 (109,979 ) 230,150 Provision for income taxes 40,233 15,154 — 55,387 Net income $ 238,329 $ 46,413 $ (109,979 ) $ 174,763 March 31, 2019 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 384,390 $ 365,210 $ — $ 749,600 Marketable securities 10,003 — — 10,003 Accounts receivable, net 666,782 — (313,241 ) 353,541 Finance receivables, net — 2,443,899 — 2,443,899 Inventories 595,806 — — 595,806 Restricted cash — 43,471 — 43,471 Other current assets 137,167 40,594 — 177,761 Total current assets 1,794,148 2,893,174 (313,241 ) 4,374,081 Finance receivables, net — 4,994,693 — 4,994,693 Property, plant and equipment, net 820,634 55,369 876,003 Goodwill 64,131 — 64,131 Deferred income taxes 96,500 37,487 (999 ) 132,988 Lease assets 48,513 6,792 — 55,305 Other long-term assets 154,687 19,149 (90,424 ) 83,412 $ 2,978,613 $ 8,006,664 $ (404,664 ) $ 10,580,613 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 351,831 $ 342,328 $ (313,241 ) $ 380,918 Accrued liabilities 544,560 98,778 833 644,171 Short-term debt — 1,192,925 — 1,192,925 Current portion of long-term debt, net — 1,372,050 — 1,372,050 Total current liabilities 896,391 3,006,081 (312,408 ) 3,590,064 Long-term debt, net 742,791 4,001,903 — 4,744,694 Lease liabilities 32,520 6,996 — 39,516 Pension liability 98,862 — — 98,862 Postretirement healthcare liability 93,897 — — 93,897 Other long-term liabilities 174,150 39,070 2,749 215,969 Commitments and contingencies (Note 17) Shareholders’ equity 940,002 952,614 (95,005 ) 1,797,611 $ 2,978,613 $ 8,006,664 $ (404,664 ) $ 10,580,613 December 31, 2018 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 544,548 $ 659,218 $ — $ 1,203,766 Marketable securities 10,007 — — 10,007 Accounts receivable, net 425,727 — (119,253 ) 306,474 Finance receivables, net — 2,214,424 — 2,214,424 Inventories 556,128 — — 556,128 Restricted cash — 49,275 — 49,275 Other current assets 91,172 59,070 (5,874 ) 144,368 Total current assets 1,627,582 2,981,987 (125,127 ) 4,484,442 Finance receivables, net — 5,007,507 — 5,007,507 Property, plant and equipment, net 847,176 56,956 — 904,132 Goodwill 55,048 — — 55,048 Deferred income taxes 105,388 37,603 (1,527 ) 141,464 Other long-term assets 144,122 18,680 (89,731 ) 73,071 $ 2,779,316 $ 8,102,733 $ (216,385 ) $ 10,665,664 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 258,587 $ 145,527 $ (119,253 ) $ 284,861 Accrued liabilities 496,643 110,063 (5,576 ) 601,130 Short-term debt — 1,135,810 — 1,135,810 Current portion of long-term debt, net — 1,575,799 — 1,575,799 Total current liabilities 755,230 2,967,199 (124,829 ) 3,597,600 Long-term debt, net 742,624 4,145,043 — 4,887,667 Pension liability 107,776 — — 107,776 Postretirement healthcare liability 94,453 — — 94,453 Other long-term liabilities 164,243 37,142 2,834 204,219 Commitments and contingencies (Note 17) Shareholders’ equity 914,990 953,349 (94,390 ) 1,773,949 $ 2,779,316 $ 8,102,733 $ (216,385 ) $ 10,665,664 April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 403,009 $ 350,508 $ — $ 753,517 Accounts receivable, net 686,265 — (331,158 ) 355,107 Finance receivables, net — 2,341,918 — 2,341,918 Inventories 564,571 — — 564,571 Restricted cash — 54,569 — 54,569 Other current assets 108,613 44,724 (2,865 ) 150,472 Total current assets 1,762,458 2,791,719 (334,023 ) 4,220,154 Finance receivables, net — 4,784,524 — 4,784,524 Property, plant and equipment, net 887,522 47,123 — 934,645 Prepaid pension costs 122,230 — — 122,230 Goodwill 56,524 — — 56,524 Deferred income taxes 36,140 42,543 (1,059 ) 77,624 Other long-term assets 145,344 23,514 (86,938 ) 81,920 $ 3,010,218 $ 7,689,423 $ (422,020 ) $ 10,277,621 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 297,162 $ 353,036 $ (331,158 ) $ 319,040 Accrued liabilities 462,279 106,149 (2,020 ) 566,408 Short-term debt — 1,036,976 — 1,036,976 Current portion of long-term debt, net — 1,872,679 — 1,872,679 Total current liabilities 759,441 3,368,840 (333,178 ) 3,795,103 Long-term debt, net 742,126 3,366,385 — 4,108,511 Pension liability 54,921 — — 54,921 Postretirement healthcare liability 113,031 — — 113,031 Other long-term liabilities 171,389 35,899 2,818 210,106 Commitments and contingencies (Note 17) Shareholders’ equity 1,169,310 918,299 (91,660 ) 1,995,949 $ 3,010,218 $ 7,689,423 $ (422,020 ) $ 10,277,621 Three months ended March 31, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 129,414 $ 43,453 $ (44,922 ) $ 127,945 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 62,187 2,185 — 64,372 Amortization of deferred loan origination costs — 18,968 — 18,968 Amortization of financing origination fees 167 2,027 — 2,194 Provision for long-term employee benefits 3,156 — — 3,156 Employee benefit plan contributions and payments (2,507 ) — — (2,507 ) Stock compensation expense 5,845 692 — 6,537 Net change in wholesale finance receivables related to sales — — (237,569 ) (237,569 ) Provision for credit losses — 34,491 — 34,491 Deferred income taxes 6,195 314 (528 ) 5,981 Other, net 1,886 922 (77 ) 2,731 Changes in current assets and liabilities: Accounts receivable, net (243,734 ) — 193,988 (49,746 ) Finance receivables - accrued interest and other — 92 — 92 Inventories (40,600 ) — — (40,600 ) Accounts payable and accrued liabilities 122,462 180,980 (179,467 ) 123,975 Derivative instruments 834 33 — 867 Other (41,339 ) 18,997 (5,874 ) (28,216 ) Total adjustments (125,448 ) 259,701 (229,527 ) (95,274 ) Net cash provided by operating activities 3,966 303,154 (274,449 ) 32,671 Three months ended March 31, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from investing activities: Capital expenditures (34,657 ) (598 ) — (35,255 ) Origination of finance receivables — (1,691,416 ) 840,044 (851,372 ) Collections on finance receivables — 1,426,419 (610,595 ) 815,824 Acquisition of business (7,000 ) — — (7,000 ) Other 603 — — 603 Net cash used by investing activities (41,054 ) (265,595 ) 229,449 (77,200 ) Cash flows from financing activities: Proceeds from issuance of medium-term notes — 546,655 — 546,655 Repayments of medium-term notes — (750,000 ) — (750,000 ) Repayments of securitization debt — (76,505 ) — (76,505 ) Repayments of asset-backed commercial paper — (72,401 ) — (72,401 ) Net increase in credit facilities and unsecured commercial paper — 58,527 — 58,527 Dividends paid (60,859 ) (45,000 ) 45,000 (60,859 ) Purchase of common stock for treasury (61,712 ) — — (61,712 ) Issuance of common stock under employee stock option plans 616 — — 616 Net cash used by financing activities (121,955 ) (338,724 ) 45,000 (415,679 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,115 ) 706 — (409 ) Net decrease in cash, cash equivalents and restricted cash $ (160,158 ) $ (300,459 ) $ — $ (460,617 ) Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash—beginning of period $ 544,548 $ 715,200 $ — $ 1,259,748 Net decrease in cash, cash equivalents and restricted cash (160,158 ) (300,459 ) — (460,617 ) Cash, cash equivalents and restricted cash—end of period $ 384,390 $ 414,741 $ — $ 799,131 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 238,329 $ 46,413 $ (109,979 ) $ 174,763 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 61,405 1,068 — 62,473 Amortization of deferred loan origination costs — 20,116 — 20,116 Amortization of financing origination fees 165 1,863 — 2,028 Provision for long-term employee benefits 9,747 — — 9,747 Employee benefit plan contributions and payments (5,486 ) — — (5,486 ) Stock compensation expense 7,072 890 — 7,962 Net change in wholesale finance receivables related to sales — — (239,902 ) (239,902 ) Provision for credit losses — 30,052 — 30,052 Deferred income taxes 2,469 979 (260 ) 3,188 Other, net (2,081 ) 200 (21 ) (1,902 ) Changes in current assets and liabilities: Accounts receivable, net (195,123 ) — 177,435 (17,688 ) Finance receivables - accrued interest and other — 4,758 — 4,758 Inventories (21,542 ) — — (21,542 ) Accounts payable and accrued liabilities 121,833 201,056 (173,966 ) 148,923 Derivative instruments 666 36 — 702 Other 9,935 6,269 (2,802 ) 13,402 Total adjustments (10,940 ) 267,287 (239,516 ) 16,831 Net cash provided by operating activities 227,389 313,700 (349,495 ) 191,594 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from investing activities: Capital expenditures (25,746 ) (2,690 ) — (28,436 ) Origination of finance receivables — (1,786,309 ) 988,242 (798,067 ) Collections on finance receivables — 1,558,547 (748,747 ) 809,800 Other (4,948 ) — — (4,948 ) Net cash used by investing activities (30,694 ) (230,452 ) 239,495 (21,651 ) Cash flows from financing activities: Proceeds from issuance of medium-term notes — 347,553 — 347,553 Repayments of securitization debt — (67,955 ) — (67,955 ) Borrowings of asset-backed commercial paper — 35,504 — 35,504 Repayments of asset-backed commercial paper — (45,907 ) — (45,907 ) Net decrease in credit facilities and unsecured commercial paper — (234,145 ) — (234,145 ) Dividends paid (62,731 ) (110,000 ) 110,000 (62,731 ) Purchase of common stock for treasury (72,968 ) — — (72,968 ) Issuance of common stock under employee stock option plans 1,719 — — 1,719 Net cash used by financing activities (133,980 ) (74,950 ) 110,000 (98,930 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,108 (74 ) — 2,034 Net increase in cash, cash equivalents and restricted cash $ 64,823 $ 8,224 $ — $ 73,047 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash—beginning of period $ 338,186 $ 408,024 $ — $ 746,210 Net increase in cash, cash equivalents and restricted cash 64,823 8,224 — 73,047 Cash, cash equivalents and restricted cash—end of period $ 403,009 $ 416,248 $ — $ 819,257 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
Basis of Presentation and Use_2
Basis of Presentation and Use of Estimates (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table includes revenue disaggregated by major source (in thousands): Three months ended March 31, April 1, Motorcycles and Related Products: Motorcycles $ 964,575 $ 1,121,673 Parts & Accessories 159,703 169,075 General Merchandise 55,401 56,601 Licensing 8,577 8,358 Other 7,381 8,240 Revenue from Motorcycles and Related Products 1,195,637 1,363,947 Financial Services: Interest income 159,804 154,041 Securitization and servicing fee income 189 352 Other income 28,750 23,781 Revenue from Financial Services 188,743 178,174 Total revenue $ 1,384,380 $ 1,542,121 |
Deferred Revenue | Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the consolidated balance sheet, was as follows (in thousands): March 31, April 1, Balance, beginning of year $ 29,055 $ 23,441 Balance, end of period 30,228 27,624 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Changes in the Accrued Restructuring Liability | Changes in the accrued restructuring liability (in thousands) were as follows: Three months ended March 31, 2019 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 24,958 $ — $ 79 $ 25,037 $ 3,461 $ 28,498 Restructuring expense (benefit) 9 8,379 5,636 14,024 (394 ) 13,630 Utilized - cash (2,600 ) — (5,528 ) (8,128 ) (2,014 ) (10,142 ) Utilized - non cash — (8,379 ) — (8,379 ) — (8,379 ) Foreign currency changes 34 — — 34 (2 ) 32 Balance, end of period $ 22,401 $ — $ 187 $ 22,588 $ 1,051 $ 23,639 Three months ended April 1, 2018 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ — $ — $ — $ — $ — $ — Restructuring expense 40,791 5,613 438 46,842 — 46,842 Utilized - cash (2,300 ) — (374 ) (2,674 ) — (2,674 ) Utilized - non cash — (5,613 ) — (5,613 ) — (5,613 ) Foreign currency changes (204 ) — (1 ) (205 ) — (205 ) Balance, end of period $ 38,287 $ — $ 63 $ 38,350 $ — $ 38,350 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three months ended March 31, April 1, Numerator : Net income used in computing basic and diluted earnings per share $ 127,945 $ 174,763 Denominator : Denominator for basic earnings per share - weighted-average common shares 159,311 168,139 Effect of dilutive securities - employee stock compensation plan 715 1,035 Denominator for diluted earnings per share - adjusted weighted-average shares outstanding 160,026 169,174 Earnings per common share: Basic $ 0.80 $ 1.04 Diluted $ 0.80 $ 1.03 |
Additional Balance Sheet and _2
Additional Balance Sheet and Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Marketable Securities | The Company’s marketable securities consisted of the following (in thousands): March 31, December 31, April 1, Debt securities $ 10,003 $ 10,007 $ — Mutual funds 49,896 44,243 49,402 Total marketable securities $ 59,899 $ 54,250 $ 49,402 |
Inventories Net | Inventories consisted of the following (in thousands): March 31, December 31, April 1, Raw materials and work in process $ 204,759 $ 177,110 $ 177,652 Motorcycle finished goods 304,386 301,630 289,046 Parts & accessories and general merchandise 145,300 136,027 150,228 Inventory at lower of FIFO cost or net realizable value 654,445 614,767 616,926 Excess of FIFO over LIFO cost (58,639 ) (58,639 ) (52,355 ) Total inventories, net $ 595,806 $ 556,128 $ 564,571 |
Reconciliation of Net Cash Provided by Operating Activities | The reconciliation of net income to net cash provided by operating activities is as follows (in thousands): Three months ended March 31, April 1, Cash flows from operating activities: Net income $ 127,945 $ 174,763 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 64,372 62,473 Amortization of deferred loan origination costs 18,968 20,116 Amortization of financing origination fees 2,194 2,028 Provision for long-term employee benefits 3,156 9,747 Employee benefit plan contributions and payments (2,507 ) (5,486 ) Stock compensation expense 6,537 7,962 Net change in wholesale finance receivables related to sales (237,569 ) (239,902 ) Provision for credit losses 34,491 30,052 Deferred income taxes 5,981 3,188 Other, net 2,731 (1,902 ) Changes in current assets and liabilities: Accounts receivable, net (49,746 ) (17,688 ) Finance receivables - accrued interest and other 92 4,758 Inventories (40,600 ) (21,542 ) Accounts payable and accrued liabilities 123,975 148,923 Derivative instruments 867 702 Other (28,216 ) 13,402 Total adjustments (95,274 ) 16,831 Net cash provided by operating activities $ 32,671 $ 191,594 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Finance Receivables | Finance receivables, net, consisted of the following (in thousands): March 31, December 31, April 1, Retail $ 6,290,036 $ 6,328,201 $ 6,064,192 Wholesale 1,339,428 1,083,615 1,252,600 Total finance receivables 7,629,464 7,411,816 7,316,792 Allowance for credit losses (190,872 ) (189,885 ) (190,350 ) Finance receivables, net $ 7,438,592 $ 7,221,931 $ 7,126,442 |
Allowance for Credit Losses on Finance Receivables | The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands): March 31, 2019 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 181,426 9,446 190,872 Total allowance for credit losses $ 181,426 $ 9,446 $ 190,872 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,290,036 1,339,428 7,629,464 Total finance receivables $ 6,290,036 $ 1,339,428 $ 7,629,464 December 31, 2018 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 182,098 7,787 189,885 Total allowance for credit losses $ 182,098 $ 7,787 $ 189,885 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,328,201 1,083,615 7,411,816 Total finance receivables $ 6,328,201 $ 1,083,615 $ 7,411,816 April 1, 2018 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ 184 $ 184 Collectively evaluated for impairment 182,150 8,016 190,166 Total allowance for credit losses $ 182,150 $ 8,200 $ 190,350 Finance receivables, ending balance: Individually evaluated for impairment $ — $ 220 $ 220 Collectively evaluated for impairment 6,064,192 1,252,380 7,316,572 Total finance receivables $ 6,064,192 $ 1,252,600 $ 7,316,792 Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands): Three months ended March 31, 2019 Retail Wholesale Total Balance, beginning of period $ 182,098 $ 7,787 $ 189,885 Provision for credit losses 32,832 1,659 34,491 Charge-offs (44,721 ) — (44,721 ) Recoveries 11,217 — 11,217 Balance, end of period $ 181,426 $ 9,446 $ 190,872 Three months ended April 1, 2018 Retail Wholesale Total Balance, beginning of period $ 186,254 $ 6,217 $ 192,471 Provision for credit losses 28,069 1,983 30,052 Charge-offs (45,081 ) — (45,081 ) Recoveries 12,908 — 12,908 Balance, end of period $ 182,150 $ 8,200 $ 190,350 |
Impaired Financing Receivables | Additional information related to the wholesale finance receivables that are individually deemed to be impaired at April 1, 2018 includes (in thousands): Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Wholesale: No related allowance recorded $ — $ — $ — $ — $ — Related allowance recorded 251 220 184 251 — Total impaired wholesale finance receivables $ 251 $ 220 $ 184 $ 251 $ — |
Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables | An analysis of the aging of past due finance receivables was as follows (in thousands): March 31, 2019 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 6,088,894 $ 119,150 $ 43,028 $ 38,964 $ 201,142 $ 6,290,036 Wholesale 1,337,429 862 355 782 1,999 1,339,428 Total $ 7,426,323 $ 120,012 $ 43,383 $ 39,746 $ 203,141 $ 7,629,464 December 31, 2018 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 6,100,186 $ 136,945 $ 49,825 $ 41,245 $ 228,015 $ 6,328,201 Wholesale 1,081,729 522 273 1,091 1,886 1,083,615 Total $ 7,181,915 $ 137,467 $ 50,098 $ 42,336 $ 229,901 $ 7,411,816 April 1, 2018 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 5,897,632 $ 105,366 $ 33,275 $ 27,919 $ 166,560 $ 6,064,192 Wholesale 1,247,175 549 4,705 171 5,425 1,252,600 Total $ 7,144,807 $ 105,915 $ 37,980 $ 28,090 $ 171,985 $ 7,316,792 |
Recorded Investment of Finance Receivables by Credit Quality Indicator | The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands): March 31, December 31, April 1, Prime $ 5,160,942 $ 5,183,754 $ 4,923,237 Sub-prime 1,129,094 1,144,447 1,140,955 Total $ 6,290,036 $ 6,328,201 $ 6,064,192 The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands): March 31, December 31, April 1, Doubtful $ 8,679 $ 2,210 $ 1,582 Substandard 7,866 9,660 3,368 Special Mention 11,484 10,299 33,085 Medium Risk 917 25,802 10,512 Low Risk 1,310,482 1,035,644 1,204,053 Total $ 1,339,428 $ 1,083,615 $ 1,252,600 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instrument Fair Value | The following tables summarize the notional and recorded fair values of the Company’s derivative financial instruments (in thousands): Derivatives Designated as Cash Flow Hedging March 31, 2019 December 31, 2018 April 1, 2018 Derivative Notional Value Other Current Assets Accrued Liabil-ities Notional Value Other Current Assets Accrued Liabil-ities Notional Value Other Current Assets Accrued Liabil-ities Foreign currency contracts $ 480,937 $ 15,576 $ 646 $ 442,976 $ 15,071 $ 313 $ 720,869 $ 3,442 $ 22,807 Commodity contracts 589 — 6 827 — 46 728 — 11 Interest rate swaps 900,000 — 6,893 900,000 — 4,494 — — — Total $ 1,381,526 $ 15,576 $ 7,545 $ 1,343,803 $ 15,071 $ 4,853 $ 721,597 $ 3,442 $ 22,818 Derivatives Not Designated as Hedging March 31, 2019 December 31, 2018 April 1, 2018 Derivative Notional Value Other Current Assets Accrued Liabil-ities Notional Value Other Current Assets Accrued Liabil-ities Notional Value Other Current Assets Accrued Liabil-ities Foreign currency contracts $ 157,678 $ 413 $ 69 $ — $ — $ — $ — $ — $ — Commodity contracts 7,225 94 119 5,239 — 463 4,577 171 32 Total $ 164,903 $ 507 $ 188 $ 5,239 $ — $ 463 $ 4,577 $ 171 $ 32 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands): Amount of Gain/(Loss) Recognized in OCI, before tax Amount of Gain/(Loss) Reclassified from AOCL into Income Location of Gain/(Loss) Reclassified from AOCL into Income Total Statement of Income Amount for Line Items in which the Effects of Cash Flow Hedges are Recorded Three months ended Three months ended Three months ended Cash Flow Hedges March 31, April 1, March 31, April 1, Income statement line item March 31, April 1, Foreign currency contracts $ 4,152 $ (5,890 ) $ 2,453 $ (6,709 ) Motorcycles cost of goods sold $ 848,198 $ 890,174 Commodity contracts 30 (16 ) (10 ) (73 ) Motorcycles cost of goods sold $ 848,198 $ 890,174 Treasury rate locks — — (90 ) (90 ) Interest expense $ 7,731 $ 7,690 Treasury rate locks — — (32 ) (36 ) Financial Services interest expense $ 52,324 $ 48,450 Interest rate swaps (3,005 ) — (606 ) — Financial Services interest expense $ 52,324 $ 48,450 Total $ 1,177 $ (5,906 ) $ 1,715 $ (6,908 ) |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table summarizes the amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments. The following amounts were recorded in Motorcycles cost of goods sold (in thousands): Amount of Gain Recognized in Income on Derivative Three months ended Derivatives Not Designated as Hedges March 31, April 1, Foreign currency contracts $ 887 $ — Commodity contracts 317 6 Total $ 1,204 $ 6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Balance sheet information related to leases | March 31, Weighted average remaining lease term (in years) 4.61 Weighted average discount rate 3.3 % Balance sheet information related to leases was as follows (in thousands): March 31, Lease assets $ 55,305 Accrued liabilities $ 17,391 Lease liabilities 39,516 $ 56,907 |
Future maturities of lease liabilities | Future maturities of lease liabilities were as follows as of March 31, 2019 (in thousands): Operating Leases 2019 $ 14,743 2020 15,023 2021 12,467 2022 8,837 2023 3,511 Thereafter 6,291 Total present value of lease payments 60,872 Less present value discount 3,965 Total lease liability $ 56,907 |
Supplemental cash flow information | Other lease information is as follows: Three months ended March 31, Cash paid for amounts included in the measurement of lease liabilities (in millions): Operating cash flows $ 5,361 Right-of-use assets obtained in exchange for lease obligations (in millions) 298 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Debt with a contractual term of one year or less is generally classified as short-term debt and consisted of the following (in thousands): March 31, December 31, April 1, Unsecured commercial paper $ 1,192,925 $ 1,135,810 $ 1,036,976 Total short-term debt $ 1,192,925 $ 1,135,810 $ 1,036,976 |
Schedule of Long-term Debt Instruments | March 31, December 31, April 1, Unsecured commercial paper $ 1,192,925 $ 1,135,810 $ 1,036,976 Total short-term debt $ 1,192,925 $ 1,135,810 $ 1,036,976 Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following (in thousands): March 31, December 31, April 1, Secured debt (Note 13) Asset-backed Canadian commercial paper conduit facility $ 142,676 $ 155,951 $ 158,162 Asset-backed U.S. commercial paper conduit facilities 526,947 582,717 281,311 Asset-backed securitization debt 18,712 95,216 285,130 Less: unamortized discount and debt issuance costs (18 ) (49 ) (337 ) Total secured debt 688,317 833,835 724,266 Unsecured notes (at par value) 6.80% Medium-term notes due in 2018, issued May 2008 — — 877,488 2.25% Medium-term notes due in 2019, issued January 2016 — 600,000 600,000 Floating-rate Medium-term notes due in 2019, issued March 2017 (a) — 150,000 150,000 2.40% Medium-term notes due in 2019, issued September 2014 600,000 600,000 600,000 2.15% Medium-term notes due in 2020, issued February 2015 600,000 600,000 600,000 Floating-rate Medium-term notes due in 2020, issued May 2018 (b) 450,000 450,000 — 2.40% Medium-term notes due in 2020, issued March 2017 350,000 350,000 350,000 2.85% Medium-term notes due in 2021, issued January 2016 600,000 600,000 600,000 Floating-rate Medium-term notes due in 2021, issued November 2018 (c) 450,000 450,000 — 3.55% Medium-term notes due in 2021, issued May 2018 350,000 350,000 — 4.05% Medium-term notes due in 2022, issued February 2019 550,000 — — 2.55% Medium-term notes due in 2022, issued June 2017 400,000 400,000 400,000 3.35% Medium-term notes due in 2023, issued February 2018 350,000 350,000 350,000 3.50% Senior unsecured notes due in 2025, issued July 2015 450,000 450,000 450,000 4.625% Senior unsecured notes due in 2045, issued July 2015 300,000 300,000 300,000 Less: unamortized discount and debt issuance costs (21,573 ) (20,369 ) (20,564 ) Gross long-term debt 6,116,744 6,463,466 5,981,190 Less: current portion of long-term debt, net of unamortized discount and debt issuance costs (1,372,050 ) (1,575,799 ) (1,872,679 ) Total long-term debt $ 4,744,694 $ 4,887,667 $ 4,108,511 (a) Floating interest rate based on LIBOR plus 35 bps. (b) Floating interest rate based on LIBOR plus 50 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details. (c) Floating interest rate based on LIBOR plus 94 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details. |
Asset-Backed Financing (Tables)
Asset-Backed Financing (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Assets and Liabilities Related to the On-Balance Sheet Financing | The following tables show the assets and liabilities related to the on-balance sheet asset-backed financings included in the financial statements (in thousands): March 31, 2019 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities Consolidated VIEs Asset-backed securitizations $ 62,771 $ (1,855 ) $ 8,199 $ 134 $ 69,249 $ 18,694 Asset-backed U.S. commercial paper conduit facilities 567,295 (16,821 ) 31,565 1,282 583,321 526,947 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 164,779 (3,003 ) 9,767 282 171,825 142,676 Total on-balance sheet assets and liabilities $ 794,845 $ (21,679 ) $ 49,531 $ 1,698 $ 824,395 $ 688,317 December 31, 2018 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities Consolidated VIEs Asset-backed securitizations $ 158,718 $ (4,691 ) $ 17,191 $ 329 $ 171,547 $ 95,167 Asset-backed U.S. commercial paper conduit facilities 631,588 (18,733 ) 30,012 1,234 644,101 582,717 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 181,774 (3,130 ) 8,779 343 187,766 155,951 Total on-balance sheet assets and liabilities $ 972,080 $ (26,554 ) $ 55,982 $ 1,906 $ 1,003,414 $ 833,835 April 1, 2018 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities Consolidated VIEs Asset-backed securitizations $ 367,584 $ (11,387 ) $ 38,207 $ 1,207 $ 395,611 $ 284,793 Asset-backed U.S. commercial paper conduit facilities 299,318 (9,297 ) 16,933 968 307,922 281,311 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 183,073 (3,085 ) 10,600 320 190,908 158,162 Total on-balance sheet assets and liabilities $ 849,975 $ (23,769 ) $ 65,740 $ 2,495 $ 894,441 $ 724,266 |
Schedule of Servicing Activities | The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands): March 31, December 31, April 1, On-balance sheet retail motorcycle finance receivables $ 6,159,058 $ 6,185,350 $ 5,923,564 Off-balance sheet retail motorcycle finance receivables 67,062 79,613 127,643 Total serviced retail motorcycle finance receivables $ 6,226,120 $ 6,264,963 $ 6,051,207 The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands): Amount 30 days or more past due: March 31, December 31, April 1, On-balance sheet retail motorcycle finance receivables $ 201,142 $ 228,015 $ 166,560 Off-balance sheet retail motorcycle finance receivables 1,194 1,658 1,652 Total serviced retail motorcycle finance receivables $ 202,336 $ 229,673 $ 168,212 Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands): Three months ended March 31, April 1, On-balance sheet retail motorcycle finance receivables $ 33,504 $ 32,173 Off-balance sheet retail motorcycle finance receivables 231 361 Total serviced retail motorcycle finance receivables $ 33,735 $ 32,534 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured At Fair Value On A Recurring Basis | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2019 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 498,207 $ 321,300 $ 176,907 $ — Marketable securities 59,899 49,896 10,003 — Derivatives 16,083 — 16,083 — Total $ 574,189 $ 371,196 $ 202,993 $ — Liabilities: Derivatives $ 7,733 $ — $ 7,733 $ — December 31, 2018 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 998,601 $ 728,800 $ 269,801 $ — Marketable securities 54,250 44,243 10,007 — Derivatives 15,071 — 15,071 — Total $ 1,067,922 $ 773,043 $ 294,879 $ — Liabilities: Derivatives $ 5,316 $ — $ 5,316 $ — April 1, 2018 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 653,124 $ 326,324 $ 326,800 $ — Marketable securities 49,402 49,402 — — Derivatives 3,613 — 3,613 — Total $ 706,139 $ 375,726 $ 330,413 $ — Liabilities: Derivatives $ 22,850 $ — $ 22,850 $ — |
Summary of The Fair Value and Carrying Value of The Company's Financial Instruments | The following table summarizes the fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost (in thousands): March 31, 2019 December 31, 2018 April 1, 2018 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,520,418 $ 7,438,592 $ 7,304,334 $ 7,221,931 $ 7,195,908 $ 7,126,442 Liabilities: Unsecured commercial paper $ 1,192,925 $ 1,192,925 $ 1,135,810 $ 1,135,810 $ 1,036,976 $ 1,036,976 Asset-backed U.S. commercial paper conduit facilities $ 526,947 $ 526,947 $ 582,717 $ 582,717 $ 281,311 $ 281,311 Asset-backed Canadian commercial paper conduit facility $ 142,676 $ 142,676 $ 155,951 $ 155,951 $ 158,162 $ 158,162 Medium-term notes $ 4,675,767 $ 4,685,636 $ 4,829,671 $ 4,887,007 $ 4,486,399 $ 4,514,798 Senior unsecured notes $ 719,544 $ 742,791 $ 707,198 $ 742,624 $ 750,440 $ 742,126 Asset-backed securitization debt $ 18,674 $ 18,694 $ 94,974 $ 95,167 $ 283,591 $ 284,793 |
Product Warranty and Recall C_2
Product Warranty and Recall Campaigns (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranty and Recall Liability | Changes in the Company’s warranty and recall liability were as follows (in thousands): Three months ended March 31, April 1, Balance, beginning of period $ 131,740 $ 94,202 Warranties issued during the period 11,617 14,606 Settlements made during the period (19,617 ) (16,638 ) Recalls and changes to pre-existing warranty liabilities (1,353 ) 2,905 Balance, end of period $ 122,387 $ 95,075 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | Components of net periodic benefit cost were as follows (in thousands): Three months ended March 31, April 1, Pension and SERPA Benefits Service cost $ 6,632 $ 8,155 Interest cost 21,371 20,590 Expected return on plan assets (35,581 ) (36,891 ) Amortization of unrecognized: Prior service credit (483 ) (106 ) Net loss 11,128 15,819 Curtailment loss — 1,018 Net periodic benefit cost $ 3,067 $ 8,585 Postretirement Healthcare Benefits Service cost $ 1,184 $ 1,812 Interest cost 2,938 2,897 Expected return on plan assets (3,507 ) (3,541 ) Amortization of unrecognized: Prior service credit (595 ) (460 ) Net loss 69 454 Net periodic benefit cost $ 89 $ 1,162 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following tables set forth the changes in accumulated other comprehensive loss (AOCL) (in thousands): Three months ended March 31, 2019 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (49,608 ) $ 1,785 $ (581,861 ) $ (629,684 ) Other comprehensive income before reclassifications 606 1,177 — 1,783 Income tax expense (275 ) (314 ) — (589 ) Net other comprehensive income before reclassifications 331 863 — 1,194 Reclassifications: Realized gains - foreign currency contracts (a) — (2,453 ) — (2,453 ) Realized losses - commodity contracts (a) — 10 — 10 Realized losses - treasury rate locks (b) — 122 — 122 Realized losses - interest rate swap (b) — 606 — 606 Prior service credits (c) — — (1,078 ) (1,078 ) Actuarial losses (c) — — 11,197 11,197 Total reclassifications before tax — (1,715 ) 10,119 8,404 Income tax benefit (expense) — 411 (2,376 ) (1,965 ) Net reclassifications — (1,304 ) 7,743 6,439 Other comprehensive income (loss) 331 (441 ) 7,743 7,633 Balance, end of period $ (49,277 ) $ 1,344 $ (574,118 ) $ (622,051 ) Three months ended April 1, 2018 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (21,852 ) $ (17,254 ) $ (460,943 ) $ (500,049 ) Other comprehensive income (loss) before reclassifications 6,915 (5,906 ) 96,374 97,383 Income tax benefit (expense) — 1,387 (22,629 ) (21,242 ) Net other comprehensive income (loss) before reclassifications 6,915 (4,519 ) 73,745 76,141 Reclassifications: Realized losses - foreign currency contracts (a) — 6,709 — 6,709 Realized losses - commodity contracts (a) — 73 — 73 Realized losses - treasury rate locks (b) — 126 — 126 Prior service credits (c) — — (566 ) (566 ) Actuarial losses (c) — — 16,273 16,273 Total reclassifications before tax — 6,908 15,707 22,615 Income tax expense — (1,624 ) (3,687 ) (5,311 ) Net reclassifications — 5,284 12,020 17,304 Other comprehensive income 6,915 765 85,765 93,445 Balance, end of period $ (14,937 ) $ (16,489 ) $ (375,178 ) $ (406,604 ) (a) Amounts reclassified to net income are included in Motorcycles and Related Products cost of goods sold (b) Amounts reclassified to net income are included in Interest expense and Financial Services interest expense (c) Amounts reclassified are included in the computation of net periodic benefit cost; see Note 16 for information related to pension and postretirement benefit plans |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Selected segment information is set forth below (in thousands): Three months ended March 31, April 1, Motorcycles net revenue $ 1,195,637 $ 1,363,947 Gross profit 347,439 473,773 Selling, administrative and engineering expense 225,428 254,093 Restructuring expense 13,630 46,842 Operating income from Motorcycles 108,381 172,838 Financial Services revenue 188,743 178,174 Financial Services expense 130,012 114,595 Operating income from Financial Services 58,731 63,579 Operating income $ 167,112 $ 236,417 |
Supplemental Consolidating Da_2
Supplemental Consolidating Data (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | Three months ended March 31, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,200,009 $ — $ (4,372 ) $ 1,195,637 Financial Services — 186,753 1,990 188,743 Total revenue 1,200,009 186,753 (2,382 ) 1,384,380 Costs and expenses: Motorcycles and Related Products cost of goods sold 848,703 — (505 ) 848,198 Financial Services interest expense — 52,324 — 52,324 Financial Services provision for credit losses — 34,491 — 34,491 Selling, administrative and engineering expense 227,992 42,588 (1,955 ) 268,625 Restructuring expense 13,630 — — 13,630 Total costs and expenses 1,090,325 129,403 (2,460 ) 1,217,268 Operating income 109,684 57,350 78 167,112 Other income (expense), net 4,660 — — 4,660 Investment income 51,358 — (45,000 ) 6,358 Interest expense 7,731 — — 7,731 Income before provision for income taxes 157,971 57,350 (44,922 ) 170,399 Provision for income taxes 28,557 13,897 — 42,454 Net income $ 129,414 $ 43,453 $ (44,922 ) $ 127,945 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,366,246 $ — $ (2,299 ) $ 1,363,947 Financial Services — 178,460 (286 ) 178,174 Total revenue 1,366,246 178,460 (2,585 ) 1,542,121 Costs and expenses: Motorcycles and Related Products cost of goods sold 890,174 — — 890,174 Financial Services interest expense — 48,450 — 48,450 Financial Services provision for credit losses — 30,052 — 30,052 Selling, administrative and engineering expense 254,401 38,391 (2,606 ) 290,186 Restructuring expense 46,842 — — 46,842 Total costs and expenses 1,191,417 116,893 (2,606 ) 1,305,704 Operating income 174,829 61,567 21 236,417 Other income (expense), net 220 — — 220 Investment income 111,203 — (110,000 ) 1,203 Interest expense 7,690 — — 7,690 Income before provision for income taxes 278,562 61,567 (109,979 ) 230,150 Provision for income taxes 40,233 15,154 — 55,387 Net income $ 238,329 $ 46,413 $ (109,979 ) $ 174,763 |
Balance Sheet | March 31, 2019 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 384,390 $ 365,210 $ — $ 749,600 Marketable securities 10,003 — — 10,003 Accounts receivable, net 666,782 — (313,241 ) 353,541 Finance receivables, net — 2,443,899 — 2,443,899 Inventories 595,806 — — 595,806 Restricted cash — 43,471 — 43,471 Other current assets 137,167 40,594 — 177,761 Total current assets 1,794,148 2,893,174 (313,241 ) 4,374,081 Finance receivables, net — 4,994,693 — 4,994,693 Property, plant and equipment, net 820,634 55,369 876,003 Goodwill 64,131 — 64,131 Deferred income taxes 96,500 37,487 (999 ) 132,988 Lease assets 48,513 6,792 — 55,305 Other long-term assets 154,687 19,149 (90,424 ) 83,412 $ 2,978,613 $ 8,006,664 $ (404,664 ) $ 10,580,613 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 351,831 $ 342,328 $ (313,241 ) $ 380,918 Accrued liabilities 544,560 98,778 833 644,171 Short-term debt — 1,192,925 — 1,192,925 Current portion of long-term debt, net — 1,372,050 — 1,372,050 Total current liabilities 896,391 3,006,081 (312,408 ) 3,590,064 Long-term debt, net 742,791 4,001,903 — 4,744,694 Lease liabilities 32,520 6,996 — 39,516 Pension liability 98,862 — — 98,862 Postretirement healthcare liability 93,897 — — 93,897 Other long-term liabilities 174,150 39,070 2,749 215,969 Commitments and contingencies (Note 17) Shareholders’ equity 940,002 952,614 (95,005 ) 1,797,611 $ 2,978,613 $ 8,006,664 $ (404,664 ) $ 10,580,613 December 31, 2018 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 544,548 $ 659,218 $ — $ 1,203,766 Marketable securities 10,007 — — 10,007 Accounts receivable, net 425,727 — (119,253 ) 306,474 Finance receivables, net — 2,214,424 — 2,214,424 Inventories 556,128 — — 556,128 Restricted cash — 49,275 — 49,275 Other current assets 91,172 59,070 (5,874 ) 144,368 Total current assets 1,627,582 2,981,987 (125,127 ) 4,484,442 Finance receivables, net — 5,007,507 — 5,007,507 Property, plant and equipment, net 847,176 56,956 — 904,132 Goodwill 55,048 — — 55,048 Deferred income taxes 105,388 37,603 (1,527 ) 141,464 Other long-term assets 144,122 18,680 (89,731 ) 73,071 $ 2,779,316 $ 8,102,733 $ (216,385 ) $ 10,665,664 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 258,587 $ 145,527 $ (119,253 ) $ 284,861 Accrued liabilities 496,643 110,063 (5,576 ) 601,130 Short-term debt — 1,135,810 — 1,135,810 Current portion of long-term debt, net — 1,575,799 — 1,575,799 Total current liabilities 755,230 2,967,199 (124,829 ) 3,597,600 Long-term debt, net 742,624 4,145,043 — 4,887,667 Pension liability 107,776 — — 107,776 Postretirement healthcare liability 94,453 — — 94,453 Other long-term liabilities 164,243 37,142 2,834 204,219 Commitments and contingencies (Note 17) Shareholders’ equity 914,990 953,349 (94,390 ) 1,773,949 $ 2,779,316 $ 8,102,733 $ (216,385 ) $ 10,665,664 April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 403,009 $ 350,508 $ — $ 753,517 Accounts receivable, net 686,265 — (331,158 ) 355,107 Finance receivables, net — 2,341,918 — 2,341,918 Inventories 564,571 — — 564,571 Restricted cash — 54,569 — 54,569 Other current assets 108,613 44,724 (2,865 ) 150,472 Total current assets 1,762,458 2,791,719 (334,023 ) 4,220,154 Finance receivables, net — 4,784,524 — 4,784,524 Property, plant and equipment, net 887,522 47,123 — 934,645 Prepaid pension costs 122,230 — — 122,230 Goodwill 56,524 — — 56,524 Deferred income taxes 36,140 42,543 (1,059 ) 77,624 Other long-term assets 145,344 23,514 (86,938 ) 81,920 $ 3,010,218 $ 7,689,423 $ (422,020 ) $ 10,277,621 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 297,162 $ 353,036 $ (331,158 ) $ 319,040 Accrued liabilities 462,279 106,149 (2,020 ) 566,408 Short-term debt — 1,036,976 — 1,036,976 Current portion of long-term debt, net — 1,872,679 — 1,872,679 Total current liabilities 759,441 3,368,840 (333,178 ) 3,795,103 Long-term debt, net 742,126 3,366,385 — 4,108,511 Pension liability 54,921 — — 54,921 Postretirement healthcare liability 113,031 — — 113,031 Other long-term liabilities 171,389 35,899 2,818 210,106 Commitments and contingencies (Note 17) Shareholders’ equity 1,169,310 918,299 (91,660 ) 1,995,949 $ 3,010,218 $ 7,689,423 $ (422,020 ) $ 10,277,621 |
Cash Flows | Three months ended March 31, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 129,414 $ 43,453 $ (44,922 ) $ 127,945 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 62,187 2,185 — 64,372 Amortization of deferred loan origination costs — 18,968 — 18,968 Amortization of financing origination fees 167 2,027 — 2,194 Provision for long-term employee benefits 3,156 — — 3,156 Employee benefit plan contributions and payments (2,507 ) — — (2,507 ) Stock compensation expense 5,845 692 — 6,537 Net change in wholesale finance receivables related to sales — — (237,569 ) (237,569 ) Provision for credit losses — 34,491 — 34,491 Deferred income taxes 6,195 314 (528 ) 5,981 Other, net 1,886 922 (77 ) 2,731 Changes in current assets and liabilities: Accounts receivable, net (243,734 ) — 193,988 (49,746 ) Finance receivables - accrued interest and other — 92 — 92 Inventories (40,600 ) — — (40,600 ) Accounts payable and accrued liabilities 122,462 180,980 (179,467 ) 123,975 Derivative instruments 834 33 — 867 Other (41,339 ) 18,997 (5,874 ) (28,216 ) Total adjustments (125,448 ) 259,701 (229,527 ) (95,274 ) Net cash provided by operating activities 3,966 303,154 (274,449 ) 32,671 Three months ended March 31, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from investing activities: Capital expenditures (34,657 ) (598 ) — (35,255 ) Origination of finance receivables — (1,691,416 ) 840,044 (851,372 ) Collections on finance receivables — 1,426,419 (610,595 ) 815,824 Acquisition of business (7,000 ) — — (7,000 ) Other 603 — — 603 Net cash used by investing activities (41,054 ) (265,595 ) 229,449 (77,200 ) Cash flows from financing activities: Proceeds from issuance of medium-term notes — 546,655 — 546,655 Repayments of medium-term notes — (750,000 ) — (750,000 ) Repayments of securitization debt — (76,505 ) — (76,505 ) Repayments of asset-backed commercial paper — (72,401 ) — (72,401 ) Net increase in credit facilities and unsecured commercial paper — 58,527 — 58,527 Dividends paid (60,859 ) (45,000 ) 45,000 (60,859 ) Purchase of common stock for treasury (61,712 ) — — (61,712 ) Issuance of common stock under employee stock option plans 616 — — 616 Net cash used by financing activities (121,955 ) (338,724 ) 45,000 (415,679 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,115 ) 706 — (409 ) Net decrease in cash, cash equivalents and restricted cash $ (160,158 ) $ (300,459 ) $ — $ (460,617 ) Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash—beginning of period $ 544,548 $ 715,200 $ — $ 1,259,748 Net decrease in cash, cash equivalents and restricted cash (160,158 ) (300,459 ) — (460,617 ) Cash, cash equivalents and restricted cash—end of period $ 384,390 $ 414,741 $ — $ 799,131 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 238,329 $ 46,413 $ (109,979 ) $ 174,763 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 61,405 1,068 — 62,473 Amortization of deferred loan origination costs — 20,116 — 20,116 Amortization of financing origination fees 165 1,863 — 2,028 Provision for long-term employee benefits 9,747 — — 9,747 Employee benefit plan contributions and payments (5,486 ) — — (5,486 ) Stock compensation expense 7,072 890 — 7,962 Net change in wholesale finance receivables related to sales — — (239,902 ) (239,902 ) Provision for credit losses — 30,052 — 30,052 Deferred income taxes 2,469 979 (260 ) 3,188 Other, net (2,081 ) 200 (21 ) (1,902 ) Changes in current assets and liabilities: Accounts receivable, net (195,123 ) — 177,435 (17,688 ) Finance receivables - accrued interest and other — 4,758 — 4,758 Inventories (21,542 ) — — (21,542 ) Accounts payable and accrued liabilities 121,833 201,056 (173,966 ) 148,923 Derivative instruments 666 36 — 702 Other 9,935 6,269 (2,802 ) 13,402 Total adjustments (10,940 ) 267,287 (239,516 ) 16,831 Net cash provided by operating activities 227,389 313,700 (349,495 ) 191,594 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from investing activities: Capital expenditures (25,746 ) (2,690 ) — (28,436 ) Origination of finance receivables — (1,786,309 ) 988,242 (798,067 ) Collections on finance receivables — 1,558,547 (748,747 ) 809,800 Other (4,948 ) — — (4,948 ) Net cash used by investing activities (30,694 ) (230,452 ) 239,495 (21,651 ) Cash flows from financing activities: Proceeds from issuance of medium-term notes — 347,553 — 347,553 Repayments of securitization debt — (67,955 ) — (67,955 ) Borrowings of asset-backed commercial paper — 35,504 — 35,504 Repayments of asset-backed commercial paper — (45,907 ) — (45,907 ) Net decrease in credit facilities and unsecured commercial paper — (234,145 ) — (234,145 ) Dividends paid (62,731 ) (110,000 ) 110,000 (62,731 ) Purchase of common stock for treasury (72,968 ) — — (72,968 ) Issuance of common stock under employee stock option plans 1,719 — — 1,719 Net cash used by financing activities (133,980 ) (74,950 ) 110,000 (98,930 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,108 (74 ) — 2,034 Net increase in cash, cash equivalents and restricted cash $ 64,823 $ 8,224 $ — $ 73,047 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash—beginning of period $ 338,186 $ 408,024 $ — $ 746,210 Net increase in cash, cash equivalents and restricted cash 64,823 8,224 — 73,047 Cash, cash equivalents and restricted cash—end of period $ 403,009 $ 416,248 $ — $ 819,257 |
Basis of Presentation and Use_3
Basis of Presentation and Use of Estimates (Narrative) (Detail) | 3 Months Ended |
Mar. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
New Accounting Standards (Impac
New Accounting Standards (Impact of adoption of ASU 2016-02) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Accounting Changes and Error Corrections [Abstract] | ||
Lease assets | $ 55,305 | $ 60,000 |
Lease liabilities | $ 56,907 | $ 60,000 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Disaggregation of Revenue | ||
Revenue | $ 1,384,380 | $ 1,542,121 |
Motorcycles and Related Products | ||
Disaggregation of Revenue | ||
Revenue | 1,195,637 | 1,363,947 |
Motorcycles and Related Products | Motorcycles | ||
Disaggregation of Revenue | ||
Revenue | 964,575 | 1,121,673 |
Motorcycles and Related Products | Parts & Accessories | ||
Disaggregation of Revenue | ||
Revenue | 159,703 | 169,075 |
Motorcycles and Related Products | General Merchandise | ||
Disaggregation of Revenue | ||
Revenue | 55,401 | 56,601 |
Motorcycles and Related Products | Licensing | ||
Disaggregation of Revenue | ||
Revenue | 8,577 | 8,358 |
Motorcycles and Related Products | Other | ||
Disaggregation of Revenue | ||
Revenue | 7,381 | 8,240 |
Financial Services | ||
Disaggregation of Revenue | ||
Revenue | 188,743 | 178,174 |
Financial Services | Financial Services Interest income | ||
Disaggregation of Revenue | ||
Revenue | 159,804 | 154,041 |
Financial Services | Securitization and servicing fee income | ||
Disaggregation of Revenue | ||
Revenue | 189 | 352 |
Financial Services | Financial Services Other income | ||
Disaggregation of Revenue | ||
Revenue | $ 28,750 | $ 23,781 |
Revenue Revenue (Contract Liabi
Revenue Revenue (Contract Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Roll Forward] | |||
Balance, beginning of year | $ 29,055 | $ 27,624 | $ 23,441 |
Deferred revenue | 29,055 | 27,624 | 23,441 |
Balance, end of period | $ 30,228 | $ 29,055 | $ 27,624 |
Revenue (Contract Liabilities N
Revenue (Contract Liabilities Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Recognized deferred revenue | $ 6.1 | $ 4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unearned revenue to be recognized | 16.2 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unearned revenue to be recognized | $ 14 |
Restructuring Expenses (Narrati
Restructuring Expenses (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2018Employeesemployee | Mar. 31, 2019USD ($)Rate | Apr. 01, 2018USD ($) | Dec. 31, 2018Employees | |
Restructuring Cost and Reserve | ||||
Reversal of previously recognized restructuring expense | $ 0.4 | |||
2018 Kansas City Restructuring Plan | ||||
Restructuring Cost and Reserve | ||||
Number of jobs eliminated | employee | 800 | |||
Number of jobs added | employee | 450 | |||
2018 Adelaide Restructuring Plan | ||||
Restructuring Cost and Reserve | ||||
Number of jobs eliminated | Employees | 90 | |||
Motorcycles and Related Products | ||||
Restructuring Cost and Reserve | ||||
Cash charges (percentage) | Rate | 70.00% | |||
Motorcycles and Related Products | Temporary Inefficiencies | Cost of Sales | ||||
Restructuring Cost and Reserve | ||||
Incremental cost of goods sold | $ 3.6 | $ 0.7 | ||
Motorcycles And Related Products Operations | 2018 Reorganization Plan | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs, positions eliminated | Employees | 70 | |||
Minimum | Motorcycles and Related Products | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 152 | |||
Minimum | Motorcycles and Related Products | Restructuring Expense | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 129 | |||
Minimum | Motorcycles and Related Products | Temporary Inefficiencies | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 23 | |||
Minimum | Motorcycles and Related Products | Employee Severance | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 40 | |||
Minimum | Motorcycles and Related Products | Accelerated Depreciation | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 51 | |||
Minimum | Motorcycles and Related Products | Project Implementation Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 38 | |||
Maximum | Motorcycles and Related Products | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 162 | |||
Maximum | Motorcycles and Related Products | Restructuring Expense | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 134 | |||
Maximum | Motorcycles and Related Products | Temporary Inefficiencies | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 28 | |||
Maximum | Motorcycles and Related Products | Employee Severance | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 41 | |||
Maximum | Motorcycles and Related Products | Accelerated Depreciation | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | 53 | |||
Maximum | Motorcycles and Related Products | Project Implementation Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and consolidation costs | $ 40 |
Restructuring Expenses (Restruc
Restructuring Expenses (Restructuring Plan Reserve Recorded in Accrued Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | $ 13,630 | $ 46,842 |
Motorcycles and Related Products | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 25,037 | 0 |
Restructuring expense | 14,024 | 46,842 |
Utilized - cash | (8,128) | (2,674) |
Utilized - non cash | (8,379) | (5,613) |
Foreign currency changes | 34 | (205) |
Balance, end of period | 22,588 | 38,350 |
Motorcycles and Related Products | Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 24,958 | 0 |
Restructuring expense | 9 | 40,791 |
Utilized - cash | (2,600) | (2,300) |
Utilized - non cash | 0 | 0 |
Foreign currency changes | 34 | (204) |
Balance, end of period | 22,401 | 38,287 |
Motorcycles and Related Products | Accelerated Depreciation | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Restructuring expense | 8,379 | 5,613 |
Utilized - cash | 0 | 0 |
Utilized - non cash | (8,379) | (5,613) |
Foreign currency changes | 0 | 0 |
Balance, end of period | 0 | 0 |
Motorcycles and Related Products | Project Implementation Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 79 | 0 |
Restructuring expense | 5,636 | 438 |
Utilized - cash | (5,528) | (374) |
Utilized - non cash | 0 | 0 |
Foreign currency changes | 0 | (1) |
Balance, end of period | 187 | 63 |
Motorcycles And Related Products Operations | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 28,498 | 0 |
Restructuring expense | 13,630 | 46,842 |
Utilized - cash | (10,142) | (2,674) |
Utilized - non cash | (8,379) | (5,613) |
Foreign currency changes | 32 | (205) |
Balance, end of period | 23,639 | 38,350 |
Motorcycles And Related Products Operations | 2018 Reorganization Plan | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 3,461 | 0 |
Restructuring expense | (394) | 0 |
Utilized - cash | (2,014) | 0 |
Utilized - non cash | 0 | 0 |
Foreign currency changes | (2) | 0 |
Balance, end of period | $ 1,051 | $ 0 |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax rate (as a percentage) | 24.90% | 24.10% |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Shares considered anti-dilutive and excluded from computation | 1.2 | 1 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Earnings Per Share Basic And Diluted) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Numerator: | ||
Net income used in computing basic and diluted earnings per share | $ 127,945 | $ 174,763 |
Denominator: | ||
Denominator for basic earnings per share - weighted-average common shares (in shares) | 159,311 | 168,139 |
Effect of dilutive securities - employee stock compensation plan (in shares) | 715 | 1,035 |
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding (in shares) | 160,026 | 169,174 |
Basic (in dollars per share) | $ 0.80 | $ 1.04 |
Diluted (in dollars per share) | $ 0.80 | $ 1.03 |
Acquisition Acquisition (Detail
Acquisition Acquisition (Details) $ in Millions | Mar. 04, 2019USD ($) |
Business Combinations [Abstract] | |
Assets and liabilities purchased | $ 14.9 |
Cash paid during acquisition | 7 |
Acquired goodwill | 9.5 |
Acquired intangible Assets | $ 5.3 |
Additional Balance Sheet and _3
Additional Balance Sheet and Cash Flow Information (Marketable Securities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Debt securities | $ 10,003 | $ 10,007 | $ 0 |
Mutual funds | 49,896 | 44,243 | 49,402 |
Debt Securities, Available-for-sale | $ 59,899 | $ 54,250 | $ 49,402 |
Additional Balance Sheet and _4
Additional Balance Sheet and Cash Flow Information (Inventories, Net) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Inventory | |||
Raw materials and work in process | $ 204,759 | $ 177,110 | $ 177,652 |
Inventory at lower of FIFO cost or net realizable value | 654,445 | 614,767 | 616,926 |
Excess of FIFO over LIFO cost | (58,639) | (58,639) | (52,355) |
Inventories, net | 595,806 | 556,128 | 564,571 |
Motorcycles | |||
Inventory | |||
Finished goods | 304,386 | 301,630 | 289,046 |
Parts and Accessories and General Merchandise | |||
Inventory | |||
Finished goods | $ 145,300 | $ 136,027 | $ 150,228 |
Additional Balance Sheet and _5
Additional Balance Sheet and Cash Flow Information (Reconciliation Of Net Income To Net Cash Used By Operating Activities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 127,945 | $ 174,763 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of intangibles | 64,372 | 62,473 |
Amortization of deferred loan origination costs | 18,968 | 20,116 |
Amortization of financing origination fees | 2,194 | 2,028 |
Provision for long-term employee benefits | 3,156 | 9,747 |
Employee benefit plan contributions and payments | (2,507) | (5,486) |
Stock compensation expense | 6,537 | 7,962 |
Net change in wholesale finance receivables related to sales | (237,569) | (239,902) |
Provision for credit losses | 34,491 | 30,052 |
Deferred income taxes | 5,981 | 3,188 |
Other, net | 2,731 | (1,902) |
Changes in current assets and liabilities: | ||
Accounts receivable, net | (49,746) | (17,688) |
Finance receivables - accrued interest and other | 92 | 4,758 |
Inventories | (40,600) | (21,542) |
Accounts payable and accrued liabilities | 123,975 | 148,923 |
Derivative instruments | 867 | 702 |
Other | (28,216) | 13,402 |
Total adjustments | (95,274) | 16,831 |
Net cash provided by operating activities | $ 32,671 | $ 191,594 |
Finance Receivables (Finance Re
Finance Receivables (Finance Receivables) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable | ||||
Financing receivable, gross | $ 7,629,464 | $ 7,411,816 | $ 7,316,792 | |
Allowance for credit losses | (190,872) | (189,885) | (190,350) | $ (192,471) |
Finance receivables, net | 7,438,592 | 7,221,931 | 7,126,442 | |
Retail | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Financing receivable, gross | 6,290,036 | 6,328,201 | 6,064,192 | |
Allowance for credit losses | (181,426) | (182,098) | (182,150) | (186,254) |
Wholesale | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Financing receivable, gross | 1,339,428 | 1,083,615 | 1,252,600 | |
Allowance for credit losses | $ (9,446) | $ (7,787) | $ (8,200) | $ (6,217) |
Finance Receivables (Changes In
Finance Receivables (Changes In Allowance For Credit Losses On Finance Receivables) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance, beginning of period | $ 189,885 | $ 192,471 |
Provision for credit losses | 34,491 | 30,052 |
Charge-offs | (44,721) | (45,081) |
Recoveries | 11,217 | 12,908 |
Balance, end of period | 190,872 | 190,350 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance, beginning of period | 182,098 | 186,254 |
Provision for credit losses | 32,832 | 28,069 |
Charge-offs | (44,721) | (45,081) |
Recoveries | 11,217 | 12,908 |
Balance, end of period | 181,426 | 182,150 |
Wholesale | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance, beginning of period | 7,787 | 6,217 |
Provision for credit losses | 1,659 | 1,983 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | $ 9,446 | $ 8,200 |
Finance Receivables (Allowance
Finance Receivables (Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses | ||||
Individually evaluated for impairment | $ 0 | $ 0 | $ 184 | |
Collectively evaluated for impairment | 190,872 | 189,885 | 190,166 | |
Total allowance for credit losses | 190,872 | 189,885 | 190,350 | $ 192,471 |
Individually evaluated for impairment | 0 | 0 | 220 | |
Collectively evaluated for impairment | 7,629,464 | 7,411,816 | 7,316,572 | |
Financing receivable, gross | 7,629,464 | 7,411,816 | 7,316,792 | |
Retail | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 181,426 | 182,098 | 182,150 | |
Total allowance for credit losses | 181,426 | 182,098 | 182,150 | 186,254 |
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 6,290,036 | 6,328,201 | 6,064,192 | |
Financing receivable, gross | 6,290,036 | 6,328,201 | 6,064,192 | |
Wholesale | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Individually evaluated for impairment | 0 | 0 | 184 | |
Collectively evaluated for impairment | 9,446 | 7,787 | 8,016 | |
Total allowance for credit losses | 9,446 | 7,787 | 8,200 | $ 6,217 |
Individually evaluated for impairment | 0 | 0 | 220 | |
Collectively evaluated for impairment | 1,339,428 | 1,083,615 | 1,252,380 | |
Financing receivable, gross | $ 1,339,428 | $ 1,083,615 | $ 1,252,600 |
Finance Receivables (Wholesale
Finance Receivables (Wholesale Finance Receivables Individually Deemed Impaired) (Details) - Wholesale $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Recorded investment, no related allowance | $ 0 |
Recorded investment, related allowance | 251 |
Recorded investment, total | 251 |
Unpaid principal balance, no related allowance | 0 |
Unpaid principal balance, related allowance | 220 |
Unpaid principal balance, total | 220 |
Related allowance | 184 |
Average recorded investment, no related allowance | 0 |
Average recorded investment, related allowance | 251 |
Average recorded investment, total | 251 |
Interest income recognized, no related allowance | 0 |
Interest income recognized, related allowance | 0 |
Interest income recognized, total | $ 0 |
Finance Receivables (Narrative)
Finance Receivables (Narrative) (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | |
Retail | |||
Accounts, Notes, Loans and Financing Receivable | |||
Threshold period past due to be charged-off | 120 days | ||
Finance receivables, gross, 90 days or more past due and accruing interest | $ 39,000,000 | $ 41,200,000 | $ 27,900,000 |
Wholesale | |||
Accounts, Notes, Loans and Financing Receivable | |||
Finance receivables, gross, 90 days or more past due and accruing interest | 800,000 | 1,100,000 | 200,000 |
Wholesale receivables on non-accrual status | $ 0 | $ 0 | $ 0 |
Finance Receivables (Aging Of P
Finance Receivables (Aging Of Past Due Finance Receivables Including Non Accrual Status Finance Receivables) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | $ 203,141 | $ 229,901 | $ 171,985 |
Total finance receivables | 7,629,464 | 7,411,816 | 7,316,792 |
Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, current | 7,426,323 | 7,181,915 | 7,144,807 |
31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 120,012 | 137,467 | 105,915 |
61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 43,383 | 50,098 | 37,980 |
Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 39,746 | 42,336 | 28,090 |
Retail | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 201,142 | 228,015 | 166,560 |
Total finance receivables | 6,290,036 | 6,328,201 | 6,064,192 |
Retail | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, current | 6,088,894 | 6,100,186 | 5,897,632 |
Retail | 31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 119,150 | 136,945 | 105,366 |
Retail | 61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 43,028 | 49,825 | 33,275 |
Retail | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 38,964 | 41,245 | 27,919 |
Wholesale | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 1,999 | 1,886 | 5,425 |
Total finance receivables | 1,339,428 | 1,083,615 | 1,252,600 |
Wholesale | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, current | 1,337,429 | 1,081,729 | 1,247,175 |
Wholesale | 31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 862 | 522 | 549 |
Wholesale | 61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 355 | 273 | 4,705 |
Wholesale | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | $ 782 | $ 1,091 | $ 171 |
Finance Receivables (Recorded I
Finance Receivables (Recorded Investment Of Retail and Wholesale Finance Receivables By Credit Quality Indicator) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | $ 7,629,464 | $ 7,411,816 | $ 7,316,792 |
Retail | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 6,290,036 | 6,328,201 | 6,064,192 |
Retail | Prime | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 5,160,942 | 5,183,754 | 4,923,237 |
Retail | Sub-prime | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 1,129,094 | 1,144,447 | 1,140,955 |
Wholesale | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 1,339,428 | 1,083,615 | 1,252,600 |
Wholesale | Doubtful | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 8,679 | 2,210 | 1,582 |
Wholesale | Substandard | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 7,866 | 9,660 | 3,368 |
Wholesale | Special Mention | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 11,484 | 10,299 | 33,085 |
Wholesale | Medium Risk | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 917 | 25,802 | 10,512 |
Wholesale | Low Risk | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | $ 1,310,482 | $ 1,035,644 | $ 1,204,053 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Derivative Instrument Fair Value) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivatives, Fair Value | |||
Notional Value | $ 1,381,526 | $ 1,343,803 | $ 721,597 |
Designated as Hedging Instrument | Cash Flow Hedging | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 15,576 | 15,071 | 3,442 |
Designated as Hedging Instrument | Cash Flow Hedging | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabil-ities | 7,545 | 4,853 | 22,818 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | |||
Derivatives, Fair Value | |||
Notional Value | 480,937 | 442,976 | 720,869 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 15,576 | 15,071 | 3,442 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabil-ities | 646 | 313 | 22,807 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | |||
Derivatives, Fair Value | |||
Notional Value | 589 | 827 | 728 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 0 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabil-ities | 6 | 46 | 11 |
Designated as Hedging Instrument | Cash Flow Hedging | Treasury Rate Locks | |||
Derivatives, Fair Value | |||
Notional Value | 900,000 | 900,000 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Treasury Rate Locks | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 0 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Treasury Rate Locks | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabil-ities | 6,893 | 4,494 | 0 |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value | |||
Notional Value | 164,903 | 5,239 | 4,577 |
Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 507 | 0 | 171 |
Not Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabil-ities | 188 | 463 | 32 |
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Derivatives, Fair Value | |||
Notional Value | 157,678 | 0 | 0 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 413 | 0 | 0 |
Not Designated as Hedging Instrument | Foreign currency contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabil-ities | 69 | 0 | 0 |
Not Designated as Hedging Instrument | Commodity contracts | |||
Derivatives, Fair Value | |||
Notional Value | 7,225 | 5,239 | 4,577 |
Not Designated as Hedging Instrument | Commodity contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 94 | 0 | 171 |
Not Designated as Hedging Instrument | Commodity contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabil-ities | $ 119 | $ 463 | $ 32 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Gain Loss On Derivative Cash Flow Hedges Recognized In OCI) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Derivative Instruments, Gain (Loss) | ||
Costs and expenses | $ 848,198 | $ 890,174 |
Interest expense | 7,731 | 7,690 |
Financial Services interest expense | 52,324 | 48,450 |
Expected to be Reclassified Over the Next Twelve Months | 11,600 | |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | 1,177 | (5,906) |
Amount of Gain/(Loss) Reclassified from AOCL into Income | 1,715 | (6,908) |
Motorcycle, Cost of Goods Sold | Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | 4,152 | (5,890) |
Amount of Gain/(Loss) Reclassified from AOCL into Income | 2,453 | (6,709) |
Motorcycle, Cost of Goods Sold | Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | 30 | (16) |
Amount of Gain/(Loss) Reclassified from AOCL into Income | (10) | (73) |
Costs and expenses | 848,198 | 890,174 |
Interest Expense | Designated as Hedging Instrument | Cash Flow Hedging | Treasury Rate Locks | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | 0 | 0 |
Amount of Gain/(Loss) Reclassified from AOCL into Income | (90) | (90) |
Interest expense | 7,731 | 7,690 |
Financial Services, Interest Expense | Designated as Hedging Instrument | Cash Flow Hedging | Treasury Rate Locks | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | 0 | 0 |
Amount of Gain/(Loss) Reclassified from AOCL into Income | (32) | (36) |
Financial Services, Interest Expense | Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | (3,005) | 0 |
Amount of Gain/(Loss) Reclassified from AOCL into Income | (606) | 0 |
Financial Services interest expense | $ 52,324 | $ 48,450 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Gain Loss On Derivative Cash Flow Hedges Reclassified From AOCI Into Income) (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Derivative | ||
Amount of Gain Recognized in Income on Derivative | $ 1,204 | $ 6 |
Foreign currency contracts | Cost of Goods Sold | ||
Derivative | ||
Amount of Gain Recognized in Income on Derivative | 887 | 0 |
Commodity contracts | Cost of Goods Sold | ||
Derivative | ||
Amount of Gain Recognized in Income on Derivative | $ 317 | $ 6 |
Leases Leases Narrative (Detail
Leases Leases Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 5 years |
Termination period | 1 year |
Operating lease expense | $ 6.3 |
Variable lease cost | $ 1.1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 13 years |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Assets | ||
Lease assets | $ 55,305 | $ 60,000 |
Liabilities | ||
Accrued liabilities | 17,391 | |
Lease liabilities | 39,516 | |
Lease liabilities | $ 56,907 | $ 60,000 |
Leases Future Maturities of Lea
Leases Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2019 | $ 14,743 | |
2020 | 15,023 | |
2021 | 12,467 | |
2022 | 8,837 | |
2023 | 3,511 | |
Thereafter | 6,291 | |
Total present value of lease payments | 60,872 | |
Less present value discount | 3,965 | |
Lease liabilities | $ 56,907 | $ 60,000 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows | $ 5,361 |
Right-of-use assets obtained in exchange for lease obligations (in millions) | $ 298 |
Weighted average remaining lease term (in years) | 4 years 7 months 9 days |
Weighted average discount rate | 3.30% |
Debt (Debt With Contractual Ter
Debt (Debt With Contractual Term Less Than One Year) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Short-term Debt | |||
Short-term debt | $ 1,192,925 | $ 1,135,810 | $ 1,036,976 |
Commercial Paper | |||
Short-term Debt | |||
Short-term debt | $ 1,192,925 | $ 1,135,810 | $ 1,036,976 |
Debt (Debt With A Contractual T
Debt (Debt With A Contractual Term Greater Than One Year) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Debt Instrument | |||
Gross long-term debt | $ 6,116,744 | $ 6,463,466 | $ 5,981,190 |
Less: current portion of long-term debt, net of unamortized discount and debt issuance costs | (1,372,050) | (1,575,799) | (1,872,679) |
Long-term debt, net | 4,744,694 | 4,887,667 | 4,108,511 |
Secured Debt | |||
Debt Instrument | |||
Less: unamortized discount and debt issuance costs | (18) | (49) | (337) |
Gross long-term debt | 688,317 | 833,835 | 724,266 |
Secured Debt | Asset-backed Canadian commercial paper conduit facility | |||
Debt Instrument | |||
Long-term debt, gross | 142,676 | 155,951 | 158,162 |
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | |||
Debt Instrument | |||
Long-term debt, gross | 526,947 | 582,717 | 281,311 |
Secured Debt | Asset-backed securitization debt | |||
Debt Instrument | |||
Long-term debt, gross | 18,712 | 95,216 | 285,130 |
Unsecured Debt | |||
Debt Instrument | |||
Less: unamortized discount and debt issuance costs | (21,573) | (20,369) | (20,564) |
Unsecured Debt | 6.80% Medium-term notes due in 2018, issued May 2008 | |||
Debt Instrument | |||
Long-term debt, gross | 0 | 0 | 877,488 |
Unsecured Debt | 2.25% Medium-term notes due in 2019, issued January 2016 | |||
Debt Instrument | |||
Long-term debt, gross | 0 | 600,000 | 600,000 |
Unsecured Debt | Floating-Rate Medium Term Notes due 2019 | |||
Debt Instrument | |||
Long-term debt, gross | 0 | 150,000 | 150,000 |
Unsecured Debt | Two Point Four Percent Medium-Term Notes Due 2019 | |||
Debt Instrument | |||
Long-term debt, gross | $ 600,000 | 600,000 | 600,000 |
Debt instrument, stated percentage | 2.40% | ||
Unsecured Debt | 2.15% Medium-term notes due in 2020, issued February 2015 | |||
Debt Instrument | |||
Long-term debt, gross | $ 600,000 | 600,000 | 600,000 |
Debt instrument, stated percentage | 2.15% | ||
Unsecured Debt | Floating-Rate Medium Term Notes due 2020 | |||
Debt Instrument | |||
Long-term debt, gross | $ 450,000 | 450,000 | 0 |
Debt instrument, stated percentage | 0.50% | ||
Unsecured Debt | Two Point Four Percent Medium-Term Notes Due 2020 | |||
Debt Instrument | |||
Long-term debt, gross | $ 350,000 | 350,000 | 350,000 |
Debt instrument, stated percentage | 2.40% | ||
Unsecured Debt | Two Point Eighty-five Percent Medium-Term Notes Due 2021 | |||
Debt Instrument | |||
Long-term debt, gross | $ 600,000 | 600,000 | 600,000 |
Debt instrument, stated percentage | 2.85% | ||
Unsecured Debt | Floating-Rate Medium Term Notes due 2021 | |||
Debt Instrument | |||
Long-term debt, gross | $ 450,000 | 450,000 | 0 |
Debt instrument, stated percentage | 0.94% | ||
Unsecured Debt | Three Point Fifty-five Percent Medium-Term Notes due 2021 | |||
Debt Instrument | |||
Long-term debt, gross | $ 350,000 | 350,000 | 0 |
Debt instrument, stated percentage | 3.55% | ||
Unsecured Debt | Four Point Zero-five Percent Medium Term Notes Due 2019 | |||
Debt Instrument | |||
Long-term debt, gross | $ 550,000 | 0 | 0 |
Debt instrument, stated percentage | 2.85% | ||
Unsecured Debt | Two Point Fifty-five Percent Medium-Term Notes Due 2022 | |||
Debt Instrument | |||
Long-term debt, gross | $ 400,000 | 400,000 | 400,000 |
Debt instrument, stated percentage | 2.55% | ||
Unsecured Debt | Three Point Thirty-five Percent Medium Term Notes Due 2023 | |||
Debt Instrument | |||
Long-term debt, gross | $ 350,000 | 350,000 | 350,000 |
Debt instrument, stated percentage | 3.35% | ||
Unsecured Debt | Three Point Five Percent Senior Unsecured Notes Due 2025 | |||
Debt Instrument | |||
Long-term debt, gross | $ 450,000 | 450,000 | 450,000 |
Debt instrument, stated percentage | 3.50% | ||
Unsecured Debt | Four Point Six Two Five Percent Senior Unsecured Notes Due 2045 | |||
Debt Instrument | |||
Long-term debt, gross | $ 300,000 | $ 300,000 | $ 300,000 |
Debt instrument, stated percentage | 4.625% |
Asset-Backed Financing (Narrati
Asset-Backed Financing (Narrative) (Detail) | 1 Months Ended | 3 Months Ended | ||||
Jun. 30, 2018CAD ($) | Mar. 31, 2019USD ($) | Apr. 01, 2018USD ($) | Jun. 26, 2016USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2018USD ($) | |
Variable Interest Entity | ||||||
Current unpaid balance - off-balance sheet retail motorcycle finance receivables | $ 67,062,000 | $ 127,643,000 | $ 79,613,000 | |||
Servicing and ancillary fees | $ 200,000 | 400,000 | ||||
Variable Interest Entity, Not Primary Beneficiary | ||||||
Variable Interest Entity | ||||||
Principal balance of finance receivable | $ 301,800,000 | |||||
Gain on sale of finance receivable | 9,300,000 | |||||
Cash proceeds from sale of financial asset | $ 0 | |||||
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | SPEs | U.S. Line of Credit | ||||||
Variable Interest Entity | ||||||
Debt instrument, term | 5 years | |||||
Transfers on finance receivables | $ 0 | 32,900,000 | ||||
Proceeds on finance receivables | 29,300,000 | |||||
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE, Facility Two | SPEs | U.S. Line of Credit | ||||||
Variable Interest Entity | ||||||
Line of credit, maximum borrowing capacity | $ 300,000,000 | |||||
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE, Facility One | SPEs | U.S. Line of Credit | ||||||
Variable Interest Entity | ||||||
Line of credit, maximum borrowing capacity | $ 600,000,000 | |||||
Secured Debt | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | Foreign Line of Credit | ||||||
Variable Interest Entity | ||||||
Line of credit, maximum borrowing capacity | $ 220,000,000 | |||||
Debt instrument, term | 5 years | |||||
Transfers on finance receivables | 0 | 7,600,000 | ||||
Proceeds on finance receivables | $ 6,200,000 | |||||
VIE, maximum loss exposure, amount | $ 29,100,000 |
Asset-Backed Financing (Assets
Asset-Backed Financing (Assets And Liabilities Of Variable Interest Entities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Finance receivables | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | $ 794,845 | $ 972,080 | $ 849,975 |
Finance receivables | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 62,771 | 158,718 | 367,584 |
Finance receivables | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 567,295 | 631,588 | 299,318 |
Finance receivables | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 164,779 | 181,774 | 183,073 |
Allowance for credit losses | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | (21,679) | (26,554) | (23,769) |
Allowance for credit losses | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | (1,855) | (4,691) | (11,387) |
Allowance for credit losses | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | (16,821) | (18,733) | (9,297) |
Allowance for credit losses | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | (3,003) | (3,130) | (3,085) |
Restricted cash | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 49,531 | 55,982 | 65,740 |
Restricted cash | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 8,199 | 17,191 | 38,207 |
Restricted cash | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 31,565 | 30,012 | 16,933 |
Restricted cash | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 9,767 | 8,779 | 10,600 |
Other assets | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,698 | 1,906 | 2,495 |
Other assets | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 134 | 329 | 1,207 |
Other assets | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,282 | 1,234 | 968 |
Other assets | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 282 | 343 | 320 |
Total assets | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 824,395 | 1,003,414 | 894,441 |
Total assets | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 69,249 | 171,547 | 395,611 |
Total assets | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 583,321 | 644,101 | 307,922 |
Total assets | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 171,825 | 187,766 | 190,908 |
Asset-backed debt | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 688,317 | 833,835 | 724,266 |
Asset-backed debt | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 18,694 | 95,167 | 284,793 |
Asset-backed debt | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 526,947 | 582,717 | 281,311 |
Asset-backed debt | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | $ 142,676 | $ 155,951 | $ 158,162 |
Asset-Backed Financing (Schedul
Asset-Backed Financing (Schedule of Loans Acquired in Transfer Not Accounted For as Debt Securities) (Detail) - Secured Debt - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
SPEs | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | U.S. Line of Credit | ||
Variable Interest Entity | ||
Transfers on finance receivables | $ 0 | $ 32,900,000 |
Proceeds on finance receivables | 29,300,000 | |
Variable Interest Entity, Not Primary Beneficiary | Asset-backed Canadian commercial paper conduit facility | Foreign Line of Credit | ||
Variable Interest Entity | ||
Transfers on finance receivables | $ 0 | 7,600,000 |
Proceeds on finance receivables | $ 6,200,000 |
Asset-Backed Financing (Servici
Asset-Backed Financing (Servicing Activities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |||
Current unpaid balance - on-balance sheet retail motorcycle finance receivables | $ 6,159,058 | $ 5,923,564 | $ 6,185,350 |
Current unpaid balance - off-balance sheet retail motorcycle finance receivables | 67,062 | 127,643 | 79,613 |
Current unpaid balance - total serviced retail motorcycle finance receivables | 6,226,120 | 6,051,207 | 6,264,963 |
Delinquent - on-balance sheet retail motorcycle finance receivables | 201,142 | 166,560 | 228,015 |
Delinquent - off-balance sheet retail motorcycle finance receivables | 1,194 | 1,652 | 1,658 |
Delinquent - total serviced retail motorcycle finance receivables | 202,336 | 168,212 | $ 229,673 |
Credit losses net of recoveries - on-balance sheet retail motorcycle finance receivables | 33,504 | 32,173 | |
Credit losses net of recoveries - off-balance sheet retail motorcycle finance receivables | 231 | 361 | |
Credit losses net of recoveries - total serviced retail motorcycle finance receivables | $ 33,735 | $ 32,534 |
Fair Value (Summary of Assets A
Fair Value (Summary of Assets And Liabilities Measured at Fair Value) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | $ 498,207 | $ 998,601 | $ 653,124 |
Marketable securities | 59,899 | 54,250 | 49,402 |
Derivatives | 16,083 | 15,071 | 3,613 |
Assets, fair value | 574,189 | 1,067,922 | 706,139 |
Liabilities: | |||
Derivatives, liabilities | 7,733 | 5,316 | 22,850 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Cash equivalents | 321,300 | 728,800 | 326,324 |
Marketable securities | 49,896 | 44,243 | 49,402 |
Derivatives | 0 | 0 | 0 |
Assets, fair value | 371,196 | 773,043 | 375,726 |
Liabilities: | |||
Derivatives, liabilities | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Cash equivalents | 176,907 | 269,801 | 326,800 |
Marketable securities | 10,003 | 10,007 | 0 |
Derivatives | 16,083 | 15,071 | 3,613 |
Assets, fair value | 202,993 | 294,879 | 330,413 |
Liabilities: | |||
Derivatives, liabilities | 7,733 | 5,316 | 22,850 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Cash equivalents | 0 | 0 | 0 |
Marketable securities | 0 | 0 | 0 |
Derivatives | 0 | 0 | 0 |
Assets, fair value | 0 | 0 | 0 |
Liabilities: | |||
Derivatives, liabilities | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Fair Value Adjustment | |||
Liabilities: | |||
Repossessed inventory | 9,300 | 9,700 | 8,300 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | Fair Value | |||
Liabilities: | |||
Repossessed inventory | $ 21,400 | $ 20,200 | $ 23,800 |
Fair Value Fair Value (Summary
Fair Value Fair Value (Summary of Fair Value and Carrying Value of Company Financial Instruments) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Finance receivables, net | $ 7,520,418 | $ 7,304,334 | $ 7,195,908 |
Fair Value | Medium-term notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 4,675,767 | 4,829,671 | 4,486,399 |
Fair Value | Senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 719,544 | 707,198 | 750,440 |
Fair Value | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 526,947 | 582,717 | 281,311 |
Fair Value | Asset-backed Canadian commercial paper conduit facility | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 142,676 | 155,951 | 158,162 |
Fair Value | Asset-backed securitization debt | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 18,674 | 94,974 | 283,591 |
Fair Value | Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Short-term Debt, Fair Value | 1,192,925 | 1,135,810 | 1,036,976 |
Reported Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Finance receivables, net | 7,438,592 | 7,221,931 | 7,126,442 |
Reported Value Measurement | Medium-term notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 4,685,636 | 4,887,007 | 4,514,798 |
Reported Value Measurement | Senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 742,791 | 742,624 | 742,126 |
Reported Value Measurement | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 526,947 | 582,717 | 281,311 |
Reported Value Measurement | Asset-backed Canadian commercial paper conduit facility | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 142,676 | 155,951 | 158,162 |
Reported Value Measurement | Asset-backed securitization debt | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt Instrument, Fair Value Disclosure | 18,694 | 95,167 | 284,793 |
Reported Value Measurement | Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Short-term Debt, Fair Value | $ 1,192,925 | $ 1,135,810 | $ 1,036,976 |
Product Warranty and Recall C_3
Product Warranty and Recall Campaigns (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 31, 2018 | |
Product Information | |||
Liability for recall campaigns | $ 64,100 | $ 32,300 | $ 73,300 |
Supplier recoveries | $ 19,617 | $ 16,638 | |
Motorcycles | All Countries, Excluding Japan | |||
Product Information | |||
Standard product warranty, period (in years) | 2 years | ||
Motorcycles | Japan | |||
Product Information | |||
Standard product warranty, period (in years) | 3 years | ||
Parts and Accessories and General Merchandise | |||
Product Information | |||
Standard product warranty, period (in years) | 1 year | ||
Operating Expense | |||
Product Information | |||
Supplier recoveries | $ 28,000 |
Product Warranty and Recall C_4
Product Warranty and Recall Campaigns (Warranty and Recall Liability) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of period | $ 131,740 | $ 94,202 |
Warranties issued during the period | 11,617 | 14,606 |
Settlements made during the period | (19,617) | (16,638) |
Recalls and changes to pre-existing warranty liabilities | (1,353) | 2,905 |
Balance, end of period | $ 122,387 | $ 95,075 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Costs) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Pension and SERPA Benefits | ||
Defined Benefit Plan Disclosure | ||
Service cost | $ 6,632 | $ 8,155 |
Interest cost | 21,371 | 20,590 |
Expected return on plan assets | (35,581) | (36,891) |
Amortization of unrecognized: Prior service credit | (483) | (106) |
Amortization of unrecognized: Net loss | 11,128 | 15,819 |
Curtailment loss | 0 | 1,018 |
Net periodic benefit cost | 3,067 | 8,585 |
Postretirement Healthcare Benefits | ||
Defined Benefit Plan Disclosure | ||
Service cost | 1,184 | 1,812 |
Interest cost | 2,938 | 2,897 |
Expected return on plan assets | (3,507) | (3,541) |
Amortization of unrecognized: Prior service credit | (595) | (460) |
Amortization of unrecognized: Net loss | 69 | 454 |
Net periodic benefit cost | 89 | 1,162 |
Pension and postretirement benefit plans | ||
Defined Benefit Plan Disclosure | ||
Other comprehensive income before reclassifications | $ 0 | $ 96,374 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - York, Pennsylvania Facility | 3 Months Ended |
Mar. 31, 2019 | |
Site Contingency | |
Site contingency portion of total cost, percentage | 47.00% |
Navy | |
Site Contingency | |
Site contingency portion of total cost, percentage | 53.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Changes In Other Comprehensive Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | $ 1,773,949 | $ 1,844,277 |
Total other comprehensive income, net of tax | 7,633 | 93,445 |
Balance, end of period | 1,797,611 | 1,995,949 |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (629,684) | (500,049) |
Other comprehensive income before reclassifications | 1,783 | 97,383 |
Income tax (benefit) expense | (589) | (21,242) |
Net other comprehensive income before reclassifications | 1,194 | 76,141 |
Total reclassifications before tax | 8,404 | 22,615 |
Income tax expense | (1,965) | (5,311) |
Net reclassifications | 6,439 | 17,304 |
Total other comprehensive income, net of tax | 7,633 | 93,445 |
Balance, end of period | (622,051) | (406,604) |
AOCI Attributable to Parent | Foreign currency contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | (2,453) | 6,709 |
AOCI Attributable to Parent | Commodity contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 10 | 73 |
AOCI Attributable to Parent | Treasury Rate Locks | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 122 | 126 |
AOCI Attributable to Parent | Interest Rate Swap | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 606 | |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (49,608) | (21,852) |
Other comprehensive income before reclassifications | 606 | 6,915 |
Income tax (benefit) expense | (275) | 0 |
Net other comprehensive income before reclassifications | 331 | 6,915 |
Total reclassifications before tax | 0 | 0 |
Income tax expense | 0 | 0 |
Net reclassifications | 0 | 0 |
Total other comprehensive income, net of tax | 331 | 6,915 |
Balance, end of period | (49,277) | (14,937) |
Derivative financial instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 1,785 | |
Other comprehensive income before reclassifications | 1,177 | |
Income tax (benefit) expense | (314) | |
Net other comprehensive income before reclassifications | 863 | |
Total reclassifications before tax | (1,715) | |
Income tax expense | 411 | |
Net reclassifications | (1,304) | |
Total other comprehensive income, net of tax | (441) | |
Balance, end of period | 1,344 | |
Derivative financial instruments | Foreign currency contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | (2,453) | |
Derivative financial instruments | Treasury Rate Locks | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 122 | |
Derivative financial instruments | Interest Rate Swap | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 606 | |
Derivative financial instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (17,254) | |
Other comprehensive income before reclassifications | (5,906) | |
Income tax (benefit) expense | 1,387 | |
Net other comprehensive income before reclassifications | (4,519) | |
Total reclassifications before tax | 6,908 | |
Income tax expense | (1,624) | |
Net reclassifications | 5,284 | |
Total other comprehensive income, net of tax | 765 | |
Balance, end of period | (16,489) | |
Derivative financial instruments | Foreign currency contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 6,709 | |
Derivative financial instruments | Commodity contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 10 | 73 |
Derivative financial instruments | Treasury Rate Locks | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 126 | |
Pension and postretirement benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (581,861) | (460,943) |
Other comprehensive income before reclassifications | 0 | 96,374 |
Income tax (benefit) expense | 0 | (22,629) |
Net other comprehensive income before reclassifications | 0 | 73,745 |
Total reclassifications before tax | 10,119 | 15,707 |
Income tax expense | (2,376) | (3,687) |
Net reclassifications | 7,743 | 12,020 |
Total other comprehensive income, net of tax | 7,743 | 85,765 |
Balance, end of period | (574,118) | (375,178) |
Pension and postretirement benefit plans - Prior service credits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | (1,078) | (566) |
Pension and postretirement benefit plans - Actuarial losses | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | $ 11,197 | $ 16,273 |
Business Segments (Narrative) (
Business Segments (Narrative) (Detail) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Business Segments (Information
Business Segments (Information By Strategic Business Units) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Segment Reporting Information | ||
Revenue | $ 1,384,380 | $ 1,542,121 |
Selling, administrative and engineering expense | 268,625 | 290,186 |
Restructuring expense | 13,630 | 46,842 |
Costs and expenses | 848,198 | 890,174 |
Operating income | 167,112 | 236,417 |
Motorcycles and Related Products | ||
Segment Reporting Information | ||
Revenue | 1,195,637 | 1,363,947 |
Restructuring expense | 14,024 | 46,842 |
Financial Services | ||
Segment Reporting Information | ||
Revenue | 188,743 | 178,174 |
Operating Segments | Motorcycles and Related Products | ||
Segment Reporting Information | ||
Revenue | 1,195,637 | 1,363,947 |
Gross profit | 347,439 | 473,773 |
Selling, administrative and engineering expense | 225,428 | 254,093 |
Restructuring expense | 13,630 | 46,842 |
Operating income | 108,381 | 172,838 |
Operating Segments | Financial Services | ||
Segment Reporting Information | ||
Revenue | 188,743 | 178,174 |
Costs and expenses | 130,012 | 114,595 |
Operating income | $ 58,731 | $ 63,579 |
Supplemental Consolidating Da_3
Supplemental Consolidating Data (Operations) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Revenue: | ||
Revenue | $ 1,384,380 | $ 1,542,121 |
Costs and expenses: | ||
Costs and expenses | 848,198 | 890,174 |
Financial Services interest expense | 52,324 | 48,450 |
Provision for credit losses | 34,491 | 30,052 |
Selling, administrative and engineering expense | 268,625 | 290,186 |
Restructuring expense | 13,630 | 46,842 |
Total costs and expenses | 1,217,268 | 1,305,704 |
Operating income | 167,112 | 236,417 |
Other income (expense), net | 4,660 | 220 |
Investment income | 6,358 | 1,203 |
Interest expense | 7,731 | 7,690 |
Income before provision for income taxes | 170,399 | 230,150 |
Provision for income taxes | 42,454 | 55,387 |
Net income | 127,945 | 174,763 |
Motorcycles and Related Products | ||
Revenue: | ||
Revenue | 1,195,637 | 1,363,947 |
Financial Services | ||
Revenue: | ||
Revenue | 188,743 | 178,174 |
Motorcycles And Related Products Operations | ||
Costs and expenses: | ||
Restructuring expense | 13,630 | 46,842 |
Reportable Legal Entities | Motorcycles And Related Products Operations | ||
Revenue: | ||
Revenue | 1,200,009 | 1,366,246 |
Costs and expenses: | ||
Costs and expenses | 848,703 | 890,174 |
Financial Services interest expense | 0 | 0 |
Provision for credit losses | 0 | 0 |
Selling, administrative and engineering expense | 227,992 | 254,401 |
Restructuring expense | 13,630 | 46,842 |
Total costs and expenses | 1,090,325 | 1,191,417 |
Operating income | 109,684 | 174,829 |
Other income (expense), net | 4,660 | 220 |
Investment income | 51,358 | 111,203 |
Interest expense | 7,731 | 7,690 |
Income before provision for income taxes | 157,971 | 278,562 |
Provision for income taxes | 28,557 | 40,233 |
Net income | 129,414 | 238,329 |
Reportable Legal Entities | Motorcycles And Related Products Operations | Motorcycles and Related Products | ||
Revenue: | ||
Revenue | 1,200,009 | 1,366,246 |
Reportable Legal Entities | Motorcycles And Related Products Operations | Financial Services | ||
Revenue: | ||
Revenue | 0 | 0 |
Reportable Legal Entities | Financial Services Operations | ||
Revenue: | ||
Revenue | 186,753 | 178,460 |
Costs and expenses: | ||
Costs and expenses | 0 | 0 |
Financial Services interest expense | 52,324 | 48,450 |
Provision for credit losses | 34,491 | 30,052 |
Selling, administrative and engineering expense | 42,588 | 38,391 |
Restructuring expense | 0 | 0 |
Total costs and expenses | 129,403 | 116,893 |
Operating income | 57,350 | 61,567 |
Other income (expense), net | 0 | 0 |
Investment income | 0 | 0 |
Interest expense | 0 | 0 |
Income before provision for income taxes | 57,350 | 61,567 |
Provision for income taxes | 13,897 | 15,154 |
Net income | 43,453 | 46,413 |
Reportable Legal Entities | Financial Services Operations | Motorcycles and Related Products | ||
Revenue: | ||
Revenue | 0 | 0 |
Reportable Legal Entities | Financial Services Operations | Financial Services | ||
Revenue: | ||
Revenue | 186,753 | 178,460 |
Eliminations | ||
Revenue: | ||
Revenue | (2,382) | (2,585) |
Costs and expenses: | ||
Costs and expenses | (505) | 0 |
Financial Services interest expense | 0 | 0 |
Provision for credit losses | 0 | 0 |
Selling, administrative and engineering expense | (1,955) | (2,606) |
Restructuring expense | 0 | 0 |
Total costs and expenses | (2,460) | (2,606) |
Operating income | 78 | 21 |
Other income (expense), net | 0 | 0 |
Investment income | (45,000) | (110,000) |
Interest expense | 0 | 0 |
Income before provision for income taxes | (44,922) | (109,979) |
Provision for income taxes | 0 | 0 |
Net income | (44,922) | (109,979) |
Eliminations | Motorcycles and Related Products | ||
Revenue: | ||
Revenue | (4,372) | (2,299) |
Eliminations | Financial Services | ||
Revenue: | ||
Revenue | $ 1,990 | $ (286) |
Supplemental Consolidating Da_4
Supplemental Consolidating Data (Balance Sheet) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | Dec. 31, 2017 |
Current assets: | |||||
Cash and cash equivalents | $ 749,600 | $ 1,203,766 | $ 753,517 | ||
Marketable securities | 10,003 | 10,007 | 0 | ||
Accounts receivable, net | 353,541 | 306,474 | 355,107 | ||
Finance receivables, net | 2,443,899 | 2,214,424 | 2,341,918 | ||
Inventories | 595,806 | 556,128 | 564,571 | ||
Restricted cash | 43,471 | 49,275 | 54,569 | ||
Other current assets | 177,761 | 144,368 | 150,472 | ||
Total current assets | 4,374,081 | 4,484,442 | 4,220,154 | ||
Finance receivables, net | 4,994,693 | 5,007,507 | 4,784,524 | ||
Property, plant and equipment, net | 876,003 | 904,132 | 934,645 | ||
Prepaid pension costs | 0 | 0 | 122,230 | ||
Goodwill | 64,131 | 55,048 | 56,524 | ||
Deferred income taxes | 132,988 | 141,464 | 77,624 | ||
Lease assets | 55,305 | $ 60,000 | |||
Other long-term assets | 83,412 | 73,071 | 81,920 | ||
Total assets | 10,580,613 | 10,665,664 | 10,277,621 | ||
Current liabilities: | |||||
Accounts payable | 380,918 | 284,861 | 319,040 | ||
Accrued liabilities | 644,171 | 601,130 | 566,408 | ||
Short-term debt | 1,192,925 | 1,135,810 | 1,036,976 | ||
Current portion of long-term debt, net | 1,372,050 | 1,575,799 | 1,872,679 | ||
Total current liabilities | 3,590,064 | 3,597,600 | 3,795,103 | ||
Long-term debt, net | 4,744,694 | 4,887,667 | 4,108,511 | ||
Lease liabilities | 39,516 | ||||
Pension liabilities | 98,862 | 107,776 | 54,921 | ||
Postretirement healthcare benefits | 93,897 | 94,453 | 113,031 | ||
Other long-term liabilities | 215,969 | 204,219 | 210,106 | ||
Shareholders’ equity | 1,797,611 | 1,773,949 | 1,995,949 | $ 1,844,277 | |
Total liabilities and shareholders' equity | 10,580,613 | 10,665,664 | 10,277,621 | ||
Reportable Legal Entities | Motorcycles And Related Products Operations | |||||
Current assets: | |||||
Cash and cash equivalents | 384,390 | 544,548 | 403,009 | ||
Marketable securities | 10,003 | 10,007 | |||
Accounts receivable, net | 666,782 | 425,727 | 686,265 | ||
Finance receivables, net | 0 | 0 | 0 | ||
Inventories | 595,806 | 556,128 | 564,571 | ||
Restricted cash | 0 | 0 | 0 | ||
Other current assets | 137,167 | 91,172 | 108,613 | ||
Total current assets | 1,794,148 | 1,627,582 | 1,762,458 | ||
Finance receivables, net | 0 | 0 | 0 | ||
Property, plant and equipment, net | 820,634 | 847,176 | 887,522 | ||
Prepaid pension costs | 122,230 | ||||
Goodwill | 64,131 | 55,048 | 56,524 | ||
Deferred income taxes | 96,500 | 105,388 | 36,140 | ||
Lease assets | 48,513 | ||||
Other long-term assets | 154,687 | 144,122 | 145,344 | ||
Total assets | 2,978,613 | 2,779,316 | 3,010,218 | ||
Current liabilities: | |||||
Accounts payable | 351,831 | 258,587 | 297,162 | ||
Accrued liabilities | 544,560 | 496,643 | 462,279 | ||
Short-term debt | 0 | 0 | 0 | ||
Current portion of long-term debt, net | 0 | 0 | 0 | ||
Total current liabilities | 896,391 | 755,230 | 759,441 | ||
Long-term debt, net | 742,791 | 742,624 | 742,126 | ||
Lease liabilities | 32,520 | ||||
Pension liabilities | 98,862 | 107,776 | 54,921 | ||
Postretirement healthcare benefits | 93,897 | 94,453 | 113,031 | ||
Other long-term liabilities | 174,150 | 164,243 | 171,389 | ||
Shareholders’ equity | 940,002 | 914,990 | 1,169,310 | ||
Total liabilities and shareholders' equity | 2,978,613 | 2,779,316 | 3,010,218 | ||
Reportable Legal Entities | Financial Services Operations | |||||
Current assets: | |||||
Cash and cash equivalents | 365,210 | 659,218 | 350,508 | ||
Marketable securities | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | 0 | ||
Finance receivables, net | 2,443,899 | 2,214,424 | 2,341,918 | ||
Inventories | 0 | 0 | 0 | ||
Restricted cash | 43,471 | 49,275 | 54,569 | ||
Other current assets | 40,594 | 59,070 | 44,724 | ||
Total current assets | 2,893,174 | 2,981,987 | 2,791,719 | ||
Finance receivables, net | 4,994,693 | 5,007,507 | 4,784,524 | ||
Property, plant and equipment, net | 55,369 | 56,956 | 47,123 | ||
Prepaid pension costs | 0 | ||||
Goodwill | 0 | 0 | 0 | ||
Deferred income taxes | 37,487 | 37,603 | 42,543 | ||
Lease assets | 6,792 | ||||
Other long-term assets | 19,149 | 18,680 | 23,514 | ||
Total assets | 8,006,664 | 8,102,733 | 7,689,423 | ||
Current liabilities: | |||||
Accounts payable | 342,328 | 145,527 | 353,036 | ||
Accrued liabilities | 98,778 | 110,063 | 106,149 | ||
Short-term debt | 1,192,925 | 1,135,810 | 1,036,976 | ||
Current portion of long-term debt, net | 1,372,050 | 1,575,799 | 1,872,679 | ||
Total current liabilities | 3,006,081 | 2,967,199 | 3,368,840 | ||
Long-term debt, net | 4,001,903 | 4,145,043 | 3,366,385 | ||
Lease liabilities | 6,996 | ||||
Pension liabilities | 0 | 0 | 0 | ||
Postretirement healthcare benefits | 0 | 0 | 0 | ||
Other long-term liabilities | 39,070 | 37,142 | 35,899 | ||
Shareholders’ equity | 952,614 | 953,349 | 918,299 | ||
Total liabilities and shareholders' equity | 8,006,664 | 8,102,733 | 7,689,423 | ||
Eliminations | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Marketable securities | 0 | 0 | |||
Accounts receivable, net | (313,241) | (119,253) | (331,158) | ||
Finance receivables, net | 0 | 0 | 0 | ||
Inventories | 0 | 0 | 0 | ||
Restricted cash | 0 | 0 | 0 | ||
Other current assets | 0 | (5,874) | (2,865) | ||
Total current assets | (313,241) | (125,127) | (334,023) | ||
Finance receivables, net | 0 | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | |||
Prepaid pension costs | 0 | ||||
Goodwill | 0 | 0 | |||
Deferred income taxes | (999) | (1,527) | (1,059) | ||
Lease assets | 0 | ||||
Other long-term assets | (90,424) | (89,731) | (86,938) | ||
Total assets | (404,664) | (216,385) | (422,020) | ||
Current liabilities: | |||||
Accounts payable | (313,241) | (119,253) | (331,158) | ||
Accrued liabilities | 833 | (5,576) | (2,020) | ||
Short-term debt | 0 | 0 | 0 | ||
Current portion of long-term debt, net | 0 | 0 | 0 | ||
Total current liabilities | (312,408) | (124,829) | (333,178) | ||
Long-term debt, net | 0 | 0 | 0 | ||
Lease liabilities | 0 | ||||
Pension liabilities | 0 | 0 | 0 | ||
Postretirement healthcare benefits | 0 | 0 | 0 | ||
Other long-term liabilities | 2,749 | 2,834 | 2,818 | ||
Shareholders’ equity | (95,005) | (94,390) | (91,660) | ||
Total liabilities and shareholders' equity | $ (404,664) | $ (216,385) | $ (422,020) |
Supplemental Consolidating Da_5
Supplemental Consolidating Data (Cash Flows) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 127,945 | $ 174,763 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of intangibles | 64,372 | 62,473 |
Amortization of deferred loan origination costs | 18,968 | 20,116 |
Amortization of financing origination fees | 2,194 | 2,028 |
Provision for long-term employee benefits | 3,156 | 9,747 |
Employee benefit plan contributions and payments | (2,507) | (5,486) |
Stock compensation expense | 6,537 | 7,962 |
Net change in wholesale finance receivables related to sales | (237,569) | (239,902) |
Provision for credit losses | 34,491 | 30,052 |
Deferred income taxes | 5,981 | 3,188 |
Other, net | 2,731 | (1,902) |
Changes in current assets and liabilities: | ||
Accounts receivable, net | (49,746) | (17,688) |
Finance receivables - accrued interest and other | 92 | 4,758 |
Inventories | (40,600) | (21,542) |
Accounts payable and accrued liabilities | 123,975 | 148,923 |
Derivative instruments | 867 | 702 |
Other | (28,216) | 13,402 |
Total adjustments | (95,274) | 16,831 |
Net cash provided by operating activities | 32,671 | 191,594 |
Cash flows from investing activities: | ||
Capital expenditures | (35,255) | (28,436) |
Origination of finance receivables | (851,372) | (798,067) |
Collections on finance receivables | 815,824 | 809,800 |
Acquisition of business | (7,000) | 0 |
Other | 603 | (4,948) |
Net cash used by investing activities | (77,200) | (21,651) |
Cash flows from financing activities: | ||
Proceeds from issuance of medium-term notes | 546,655 | 347,553 |
Repayments of medium-term notes | (750,000) | 0 |
Repayments of securitization debt | (76,505) | (67,955) |
Net increase (decrease) in credit facilities and unsecured commercial paper | 58,527 | (234,145) |
Borrowings of asset-backed commercial paper | 0 | 35,504 |
Repayments of asset-backed commercial paper | (72,401) | (45,907) |
Dividends paid | (60,859) | (62,731) |
Purchase of common stock for treasury | (61,712) | (72,968) |
Issuance of common stock under employee stock option plans | 616 | 1,719 |
Net cash used by financing activities | (415,679) | (98,930) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (409) | 2,034 |
Cash, cash equivalents and restricted cash: | ||
Cash, cash equivalents and restricted cash—beginning of period | 1,259,748 | 746,210 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (460,617) | 73,047 |
Cash, cash equivalents and restricted cash—end of period | 799,131 | 819,257 |
Motorcycles And Related Products Operations | ||
Cash flows from investing activities: | ||
Acquisition of business | (7,000) | |
Financial Services Operations | ||
Cash flows from investing activities: | ||
Acquisition of business | 0 | |
Reportable Legal Entities | Motorcycles And Related Products Operations | ||
Cash flows from operating activities: | ||
Net income | 129,414 | 238,329 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of intangibles | 62,187 | 61,405 |
Amortization of deferred loan origination costs | 0 | 0 |
Amortization of financing origination fees | 167 | 165 |
Provision for long-term employee benefits | 3,156 | 9,747 |
Employee benefit plan contributions and payments | (2,507) | (5,486) |
Stock compensation expense | 5,845 | 7,072 |
Net change in wholesale finance receivables related to sales | 0 | 0 |
Provision for credit losses | 0 | 0 |
Deferred income taxes | 6,195 | 2,469 |
Other, net | 1,886 | (2,081) |
Changes in current assets and liabilities: | ||
Accounts receivable, net | (243,734) | (195,123) |
Finance receivables - accrued interest and other | 0 | 0 |
Inventories | (40,600) | (21,542) |
Accounts payable and accrued liabilities | 122,462 | 121,833 |
Derivative instruments | 834 | 666 |
Other | (41,339) | 9,935 |
Total adjustments | (125,448) | (10,940) |
Net cash provided by operating activities | 3,966 | 227,389 |
Cash flows from investing activities: | ||
Capital expenditures | (34,657) | (25,746) |
Origination of finance receivables | 0 | 0 |
Collections on finance receivables | 0 | 0 |
Other | 603 | (4,948) |
Net cash used by investing activities | (41,054) | (30,694) |
Cash flows from financing activities: | ||
Proceeds from issuance of medium-term notes | 0 | 0 |
Repayments of medium-term notes | 0 | |
Repayments of securitization debt | 0 | 0 |
Net increase (decrease) in credit facilities and unsecured commercial paper | 0 | 0 |
Borrowings of asset-backed commercial paper | 0 | |
Repayments of asset-backed commercial paper | 0 | 0 |
Dividends paid | (60,859) | (62,731) |
Purchase of common stock for treasury | (61,712) | (72,968) |
Issuance of common stock under employee stock option plans | 616 | 1,719 |
Net cash used by financing activities | (121,955) | (133,980) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,115) | 2,108 |
Cash, cash equivalents and restricted cash: | ||
Cash, cash equivalents and restricted cash—beginning of period | 544,548 | 338,186 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (160,158) | 64,823 |
Cash, cash equivalents and restricted cash—end of period | 384,390 | 403,009 |
Reportable Legal Entities | Financial Services Operations | ||
Cash flows from operating activities: | ||
Net income | 43,453 | 46,413 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of intangibles | 2,185 | 1,068 |
Amortization of deferred loan origination costs | 18,968 | 20,116 |
Amortization of financing origination fees | 2,027 | 1,863 |
Provision for long-term employee benefits | 0 | 0 |
Employee benefit plan contributions and payments | 0 | 0 |
Stock compensation expense | 692 | 890 |
Net change in wholesale finance receivables related to sales | 0 | 0 |
Provision for credit losses | 34,491 | 30,052 |
Deferred income taxes | 314 | 979 |
Other, net | 922 | 200 |
Changes in current assets and liabilities: | ||
Accounts receivable, net | 0 | 0 |
Finance receivables - accrued interest and other | 92 | 4,758 |
Inventories | 0 | 0 |
Accounts payable and accrued liabilities | 180,980 | 201,056 |
Derivative instruments | 33 | 36 |
Other | 18,997 | 6,269 |
Total adjustments | 259,701 | 267,287 |
Net cash provided by operating activities | 303,154 | 313,700 |
Cash flows from investing activities: | ||
Capital expenditures | (598) | (2,690) |
Origination of finance receivables | (1,691,416) | (1,786,309) |
Collections on finance receivables | 1,426,419 | 1,558,547 |
Other | 0 | 0 |
Net cash used by investing activities | (265,595) | (230,452) |
Cash flows from financing activities: | ||
Proceeds from issuance of medium-term notes | 546,655 | 347,553 |
Repayments of medium-term notes | (750,000) | |
Repayments of securitization debt | (76,505) | (67,955) |
Net increase (decrease) in credit facilities and unsecured commercial paper | 58,527 | (234,145) |
Borrowings of asset-backed commercial paper | 35,504 | |
Repayments of asset-backed commercial paper | (72,401) | (45,907) |
Dividends paid | (45,000) | (110,000) |
Purchase of common stock for treasury | 0 | 0 |
Issuance of common stock under employee stock option plans | 0 | 0 |
Net cash used by financing activities | (338,724) | (74,950) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 706 | (74) |
Cash, cash equivalents and restricted cash: | ||
Cash, cash equivalents and restricted cash—beginning of period | 715,200 | 408,024 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (300,459) | 8,224 |
Cash, cash equivalents and restricted cash—end of period | 414,741 | 416,248 |
Eliminations | ||
Cash flows from operating activities: | ||
Net income | (44,922) | (109,979) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of intangibles | 0 | 0 |
Amortization of deferred loan origination costs | 0 | 0 |
Amortization of financing origination fees | 0 | 0 |
Provision for long-term employee benefits | 0 | 0 |
Employee benefit plan contributions and payments | 0 | 0 |
Stock compensation expense | 0 | 0 |
Net change in wholesale finance receivables related to sales | (237,569) | (239,902) |
Provision for credit losses | 0 | 0 |
Deferred income taxes | (528) | (260) |
Other, net | (77) | (21) |
Changes in current assets and liabilities: | ||
Accounts receivable, net | 193,988 | 177,435 |
Finance receivables - accrued interest and other | 0 | 0 |
Inventories | 0 | 0 |
Accounts payable and accrued liabilities | (179,467) | (173,966) |
Derivative instruments | 0 | 0 |
Other | (5,874) | (2,802) |
Total adjustments | (229,527) | (239,516) |
Net cash provided by operating activities | (274,449) | (349,495) |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Origination of finance receivables | 840,044 | 988,242 |
Collections on finance receivables | (610,595) | (748,747) |
Acquisition of business | 0 | |
Other | 0 | 0 |
Net cash used by investing activities | 229,449 | 239,495 |
Cash flows from financing activities: | ||
Proceeds from issuance of medium-term notes | 0 | 0 |
Repayments of medium-term notes | 0 | |
Repayments of securitization debt | 0 | 0 |
Net increase (decrease) in credit facilities and unsecured commercial paper | 0 | 0 |
Borrowings of asset-backed commercial paper | 0 | |
Repayments of asset-backed commercial paper | 0 | 0 |
Dividends paid | 45,000 | 110,000 |
Purchase of common stock for treasury | 0 | 0 |
Issuance of common stock under employee stock option plans | 0 | 0 |
Net cash used by financing activities | 45,000 | 110,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash: | ||
Cash, cash equivalents and restricted cash—beginning of period | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash—end of period | $ 0 | $ 0 |
Uncategorized Items - hog-20190
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,024,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,024,000 |