Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 29, 2019 | Nov. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-9183 | |
Entity Registrant Name | Harley-Davidson, Inc. | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1382325 | |
Entity Address, Address Line One | 3700 West Juneau Avenue | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53208 | |
City Area Code | 414 | |
Local Phone Number | 342-4680 | |
Title of 12(b) Security | Common Stock Par Value $.01 PER SHARE | |
Trading Symbol | HOG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 154,292,388 | |
Entity Central Index Key | 0000793952 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Total revenue | $ 1,272,519 | $ 1,315,669 | $ 4,289,518 | $ 4,571,013 |
Costs and expenses: | ||||
Motorcycles and Related Products cost of goods sold | 748,878 | 776,530 | 2,576,342 | 2,659,740 |
Financial Services interest expense | 53,390 | 44,696 | 158,387 | 145,089 |
Financial Services provision for credit losses | 33,747 | 23,530 | 94,621 | 72,462 |
Selling, administrative and engineering expense | 309,031 | 306,665 | 885,273 | 909,898 |
Restructuring expense | 7,629 | 14,832 | 31,682 | 74,044 |
Total costs and expenses | 1,152,675 | 1,166,253 | 3,746,305 | 3,861,233 |
Operating income | 119,844 | 149,416 | 543,213 | 709,780 |
Other income (expense), net | 3,160 | 644 | 11,857 | 1,509 |
Investment income (loss) | 2,041 | (1,106) | 11,970 | 2,630 |
Interest expense | 7,789 | 7,762 | 23,304 | 23,180 |
Income before provision for income taxes | 117,256 | 141,192 | 543,736 | 690,739 |
Provision for income taxes | 30,693 | 27,337 | 133,597 | 159,783 |
Net income | $ 86,563 | $ 113,855 | $ 410,139 | $ 530,956 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.55 | $ 0.69 | $ 2.59 | $ 3.18 |
Diluted (in dollars per share) | 0.55 | 0.68 | 2.58 | 3.17 |
Cash dividends per share (in dollars per share) | $ 0.375 | $ 0.370 | $ 1.125 | $ 1.110 |
Motorcycles and Related Products | ||||
Revenue: | ||||
Motorcycles and Related Products | $ 1,068,942 | $ 1,123,945 | $ 3,698,583 | $ 4,013,013 |
Financial Services | ||||
Revenue: | ||||
Financial Services | $ 203,577 | $ 191,724 | $ 590,935 | $ 558,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 86,563 | $ 113,855 | $ 410,139 | $ 530,956 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (15,321) | (2,212) | (3,720) | (21,779) |
Derivative financial instruments | 6,284 | (6,080) | ||
Derivative financial instruments | 123 | 24,808 | ||
Pension and postretirement benefit plans | 7,744 | 12,401 | 23,230 | 110,568 |
Total other comprehensive income, net of tax | (1,293) | 10,312 | 13,430 | 113,597 |
Comprehensive income | $ 85,270 | $ 124,167 | $ 423,569 | $ 644,553 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 862,381 | $ 1,203,766 | $ 926,992 |
Marketable securities | 0 | 10,007 | 10,011 |
Accounts receivable, net | 307,616 | 306,474 | 332,309 |
Finance receivables, net | 2,210,001 | 2,214,424 | 2,116,386 |
Inventories | 489,098 | 556,128 | 516,247 |
Restricted cash | 79,115 | 49,275 | 36,471 |
Other current assets | 140,786 | 144,368 | 151,042 |
Total current assets | 4,088,997 | 4,484,442 | 4,089,458 |
Finance receivables, net | 5,305,579 | 5,007,507 | 5,187,176 |
Property, plant and equipment, net | 844,446 | 904,132 | 884,960 |
Prepaid pension costs | 0 | 0 | 140,763 |
Goodwill | 63,727 | 55,048 | 55,318 |
Deferred income taxes | 132,019 | 141,464 | 63,559 |
Lease assets | 55,905 | ||
Other long-term assets | 85,557 | 73,071 | 82,566 |
Total assets | 10,576,230 | 10,665,664 | 10,503,800 |
Current liabilities: | |||
Accounts payable | 348,951 | 284,861 | 310,967 |
Accrued liabilities | 556,990 | 601,130 | 564,832 |
Short-term debt | 1,013,137 | 1,135,810 | 1,373,859 |
Current portion of long-term debt, net | 1,779,673 | 1,575,799 | 1,526,156 |
Total current liabilities | 3,698,751 | 3,597,600 | 3,775,814 |
Long-term debt, net | 4,607,041 | 4,887,667 | 4,196,517 |
Lease liabilities | 39,408 | ||
Pension liabilities | 82,561 | 107,776 | 54,138 |
Postretirement healthcare liabilities | 89,032 | 94,453 | 112,798 |
Other long-term liabilities | 223,218 | 204,219 | 211,561 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Preferred stock, none issued | 0 | 0 | 0 |
Common stock | 1,827 | 1,819 | 1,819 |
Additional paid-in-capital | 1,482,669 | 1,459,620 | 1,453,035 |
Retained earnings | 2,238,313 | 2,007,583 | 1,958,445 |
Accumulated other comprehensive loss | (616,254) | (629,684) | (386,452) |
Treasury stock, at cost | (1,270,336) | (1,065,389) | (873,875) |
Total shareholders’ equity | 1,836,219 | 1,773,949 | 2,152,972 |
Total liabilities and shareholders' equity | 10,576,230 | 10,665,664 | 10,503,800 |
Variable Interest Entity, Primary Beneficiary | |||
Current assets: | |||
Finance receivables, net | 308,568 | 175,043 | 128,005 |
Other current assets | 1,618 | 1,563 | 1,408 |
Finance receivables, net | 1,175,086 | 591,839 | 331,415 |
Restricted cash - current and non-current | 78,334 | 47,203 | 33,726 |
Current liabilities: | |||
Current portion of long-term debt, net | 346,350 | 189,693 | 140,189 |
Long-term debt, net | $ 1,079,278 | $ 488,191 | $ 253,329 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | |||
Preferred stock, issued (in shares) | 0 | 0 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 848,649 | $ 1,122,555 |
Cash flows from investing activities: | ||
Capital expenditures | (121,161) | (119,845) |
Origination of finance receivables | (3,141,626) | (3,039,160) |
Collections on finance receivables | 2,695,918 | 2,564,695 |
Sales and redemptions of marketable securities | 10,007 | 0 |
Acquisition of business | (7,000) | 0 |
Other investing activities | 12,388 | (21,753) |
Net cash used by investing activities | (551,474) | (616,063) |
Cash flows from financing activities: | ||
Proceeds from issuance of medium-term notes | 546,655 | 1,144,018 |
Repayments of medium-term notes | (1,350,000) | (877,488) |
Proceeds from securitization debt | 1,021,353 | 0 |
Repayments of securitization debt | (244,250) | (224,507) |
Borrowings of asset-backed commercial paper | 177,950 | 120,903 |
Repayments of asset-backed commercial paper | (240,008) | (156,258) |
Net (decrease) increase in credit facilities and unsecured commercial paper | (120,707) | 102,154 |
Dividends paid | (179,409) | (186,105) |
Repurchase of common stock | (217,454) | (195,998) |
Issuance of common stock under employee stock option plans | 2,180 | 3,157 |
Net cash used by financing activities | (603,690) | (270,124) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,110) | (12,567) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (310,625) | 223,801 |
Cash, cash equivalents and restricted cash, beginning of period | 1,259,748 | 746,210 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (310,625) | 223,801 |
Cash, cash equivalents and restricted cash, end of period | 949,123 | 970,011 |
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: | ||
Cash and cash equivalents | 862,381 | 926,992 |
Restricted cash | 79,115 | 36,471 |
Restricted cash included in Other long-term assets | $ 7,627 | $ 6,548 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2017 | 181,286,547 | |||||
Beginning balance 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 | 174,763 | ||||
Other comprehensive income, 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 (in shares) at Apr. 01, 2018 | 181,776,443 | |||||
Ending balance at Apr. 01, 2018 | 1,995,949 | $ 1,818 | 1,432,692 | 1,725,626 | (406,604) | (757,583) |
Beginning balance (in shares) at Dec. 31, 2017 | 181,286,547 | |||||
Beginning balance 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 | 530,956 | |||||
Other comprehensive income, net of tax | 113,597 | 113,597 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 181,880,295 | |||||
Ending balance at Sep. 30, 2018 | 2,152,972 | $ 1,819 | 1,453,035 | 1,958,445 | (386,452) | (873,875) |
Beginning balance (in shares) at Apr. 01, 2018 | 181,776,443 | |||||
Beginning balance at Apr. 01, 2018 | 1,995,949 | $ 1,818 | 1,432,692 | 1,725,626 | (406,604) | (757,583) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 242,338 | 242,338 | ||||
Other comprehensive income, net of tax | 9,840 | 9,840 | ||||
Dividends | (61,949) | (61,949) | ||||
Repurchase of common stock | (38,259) | (38,259) | ||||
Share-based compensation (in shares) | 13,644 | |||||
Share-based compensation | 13,607 | 9,888 | 3,719 | |||
Ending balance (in shares) at Jul. 01, 2018 | 181,790,087 | |||||
Ending balance at Jul. 01, 2018 | 2,161,526 | $ 1,818 | 1,442,580 | 1,906,015 | (396,764) | (792,123) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 113,855 | 113,855 | ||||
Other comprehensive income, net of tax | 10,312 | 10,312 | ||||
Dividends | (61,425) | (61,425) | ||||
Repurchase of common stock | (84,771) | (84,771) | ||||
Share-based compensation (in shares) | 90,208 | |||||
Share-based compensation | 13,475 | $ 1 | 10,455 | 3,019 | ||
Ending balance (in shares) at Sep. 30, 2018 | 181,880,295 | |||||
Ending balance at Sep. 30, 2018 | 2,152,972 | $ 1,819 | 1,453,035 | 1,958,445 | (386,452) | (873,875) |
Beginning balance (in shares) at Dec. 31, 2018 | 181,931,225 | |||||
Beginning balance 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 | ||||
Other comprehensive income, 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 (in shares) at Mar. 31, 2019 | 182,633,912 | |||||
Ending balance at Mar. 31, 2019 | 1,797,611 | $ 1,826 | 1,465,581 | 2,074,669 | (622,051) | (1,122,414) |
Beginning balance (in shares) at Dec. 31, 2018 | 181,931,225 | |||||
Beginning balance 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 | 410,139 | |||||
Other comprehensive income, net of tax | 13,430 | 13,430 | ||||
Ending balance (in shares) at Sep. 29, 2019 | 182,723,499 | |||||
Ending balance at Sep. 29, 2019 | 1,836,219 | $ 1,827 | 1,482,669 | 2,238,313 | (616,254) | (1,270,336) |
Beginning balance (in shares) at Mar. 31, 2019 | 182,633,912 | |||||
Beginning balance at Mar. 31, 2019 | 1,797,611 | $ 1,826 | 1,465,581 | 2,074,669 | (622,051) | (1,122,414) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 195,631 | 195,631 | ||||
Other comprehensive income, net of tax | 7,090 | 7,090 | ||||
Dividends | (59,982) | (59,982) | ||||
Repurchase of common stock | (42,908) | (42,908) | ||||
Share-based compensation (in shares) | 9,338 | |||||
Share-based compensation | 13,199 | $ 1 | 9,238 | 3,960 | ||
Ending balance (in shares) at Jun. 30, 2019 | 182,643,250 | |||||
Ending balance at Jun. 30, 2019 | 1,910,641 | $ 1,827 | 1,474,819 | 2,210,318 | (614,961) | (1,161,362) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 86,563 | 86,563 | ||||
Other comprehensive income, net of tax | (1,293) | (1,293) | ||||
Dividends | (58,568) | (58,568) | ||||
Repurchase of common stock | (112,834) | (112,834) | ||||
Share-based compensation (in shares) | 80,249 | |||||
Share-based compensation | 11,710 | 7,850 | 3,860 | |||
Ending balance (in shares) at Sep. 29, 2019 | 182,723,499 | |||||
Ending balance at Sep. 29, 2019 | $ 1,836,219 | $ 1,827 | $ 1,482,669 | $ 2,238,313 | $ (616,254) | $ (1,270,336) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends (in dollars per share) | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.370 | $ 0.370 | $ 0.370 |
Basis of Presentation and Use o
Basis of Presentation and Use of Estimates | 9 Months Ended |
Sep. 29, 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 have been eliminated. The Company operates in two reportable segments: Motorcycles and Related Products (Motorcycles) and Financial Services. 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 September 29, 2019 and September 30, 2018 , the Consolidated statements of income for the three and nine month periods then ended, the Consolidated statements of comprehensive income for the three and nine month periods then ended, the Consolidated statements of cash flows for the nine month periods then ended, and the Consolidated statements of shareholders' equity for the three and nine month periods then ended. Certain information and 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 consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Recently Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the 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 lease 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 ongoing 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 Accounting Standards Codification (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. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. An entity will apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. The Company is continuing its implementation plan which includes model development, documentation and validation as well as the evaluation of associated processes, data sources, internal controls and policies. The Company anticipates that the adoption of ASU 2016-13 will result in an initial increase in the allowance for credit losses, with a decrease in retained earnings. The initial change in the allowance for credit losses at adoption and the ongoing effect of ASU 2016-13 on the provision for credit losses will be impacted by the size and composition of the Company's finance receivables portfolio at each reporting period, as well as other items including economic conditions and forecasts at that time. 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. 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 does not believe the adoption of ASU 2018-15 will have a material impact on its financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table includes revenue disaggregated by major source (in thousands): Three months ended Nine months ended September 29, September 30, September 29, September 30, Motorcycles and Related Products Revenue: Motorcycles $ 779,344 $ 821,670 $ 2,871,982 $ 3,144,796 Parts & Accessories 203,173 212,406 584,134 612,495 General Merchandise 60,334 58,266 180,379 183,520 Licensing 8,611 10,680 27,099 29,445 Other 17,480 20,923 34,989 42,757 1,068,942 1,123,945 3,698,583 4,013,013 Financial Services Revenue: Interest income 175,840 166,013 502,721 478,693 Securitization and servicing fee income 137 260 489 916 Other income 27,600 25,451 87,725 78,391 203,577 191,724 590,935 558,000 $ 1,272,519 $ 1,315,669 $ 4,289,518 $ 4,571,013 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 Owners 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 sheets , was as follows (in thousands): September 29, September 30, Balance, beginning of year $ 29,055 $ 23,441 Balance, end of period 32,374 30,514 Previously deferred revenue recognized as revenue in the three months ended September 29, 2019 and September 30, 2018 was $6.0 million and $6.9 million , respectively, and $18.3 million and $16.0 million in the nine months ended September 29, 2019 and September 30, 2018 . The Company expects to recognize approximately $17.1 million of the remaining unearned revenue over the next 12 months and $15.3 million |
Restructuring Expenses
Restructuring Expenses | 9 Months Ended |
Sep. 29, 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 included 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). The consolidation of operations included the elimination of approximately 800 jobs at the Kansas City facility and the addition of approximately 450 jobs at the York facility through 2019. The Adelaide facility closure included the elimination of approximately 90 jobs. Through September 29, 2019 , the Motorcycles segment incurred $144.5 million of restructuring expenses and other consolidation costs under the Manufacturing Optimization Plan since its inception in 2018. The Company's estimated range for cumulative restructuring expenses and other consolidation costs is $142 million to $152 million under the Manufacturing Optimization Plan through 2019, of which approximately 70% are expected to be cash charges. The estimate includes $119 million to $124 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 $38 million to $40 million, $48 million to $49 million, and $33 million to $35 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 presented as a line item in the Consolidated statements of income and the accrued restructuring liability is recorded in Accrued liabilities on the Consolidated balance sheets . Changes in the accrued restructuring liability were as follows (in thousands): Three months ended September 29, 2019 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 9,661 $ — $ 23 $ 9,684 $ 144 $ 9,828 Restructuring (benefit) expense (1 ) 719 6,850 7,568 61 7,629 Utilized - cash (6,617 ) — (6,535 ) (13,152 ) (205 ) (13,357 ) Utilized - non cash (2 ) (719 ) (336 ) (1,057 ) — (1,057 ) Foreign currency changes (26 ) — — (26 ) — (26 ) Balance, end of period $ 3,015 $ — $ 2 $ 3,017 $ — $ 3,017 Three months ended September 30, 2018 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 36,758 $ — $ 77 $ 36,835 $ — $ 36,835 Restructuring (benefit) expense (649 ) 9,420 6,061 14,832 — 14,832 Utilized - cash (5,402 ) — (6,053 ) (11,455 ) — (11,455 ) Utilized - non cash — (9,420 ) — (9,420 ) — (9,420 ) Foreign currency changes (140 ) — (2 ) (142 ) — (142 ) Balance, end of period $ 30,567 $ — $ 83 $ 30,650 $ — $ 30,650 Nine months ended September 29, 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) 16 14,684 17,316 32,016 (334 ) 31,682 Utilized - cash (21,951 ) — (16,357 ) (38,308 ) (3,101 ) (41,409 ) Utilized - non cash (2 ) (14,684 ) (1,032 ) (15,718 ) — (15,718 ) Foreign currency changes (6 ) — (4 ) (10 ) (26 ) (36 ) Balance, end of period $ 3,015 $ — $ 2 $ 3,017 $ — $ 3,017 Nine months ended September 30, 2018 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ — $ — $ — $ — $ — $ — Restructuring expense 38,956 24,779 10,309 74,044 — 74,044 Utilized - cash (7,835 ) — (10,220 ) (18,055 ) — (18,055 ) Utilized - non cash — (24,779 ) — (24,779 ) — (24,779 ) Foreign currency changes (554 ) — (6 ) (560 ) — (560 ) Balance, end of period $ 30,567 $ — $ 83 $ 30,650 $ — $ 30,650 The Company incurred incremental Motorcycles and Related Products cost of goods sold due to temporary inefficiencies resulting from implementing the Manufacturing Optimization Plan during the three months ended September 29, 2019 and September 30, 2018 of $2.5 million and $6.2 million , respectively, and $10.0 million and $9.3 million , respectively, during the nine months ended September 29, 2019 and September 30, 2018 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rate for the nine months ended September 29, 2019 was 24.6% compared to 23.1% for the nine months ended September 30, 2018 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 29, 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 Nine months ended September 29, September 30, September 29, September 30, Net income $ 86,563 $ 113,855 $ 410,139 $ 530,956 Basic weighted-average shares outstanding 156,239 165,927 158,117 166,885 Effect of dilutive securities - employee stock compensation plan 705 737 677 796 Diluted weighted-average shares outstanding 156,944 166,664 158,794 167,681 Earnings per share: Basic $ 0.55 $ 0.69 $ 2.59 $ 3.18 Diluted $ 0.55 $ 0.68 $ 2.58 $ 3.17 Outstanding options to purchase 1.1 million and 0.8 million shares of common stock for the three months ended September 29, 2019 and September 30, 2018 , respectively, and 1.2 million and 1.1 million shares of common stock for the nine months ended September 29, 2019 and September 30, 2018 , respectively, were not included in the effect 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 calculations for the three and nine month periods ended September 29, 2019 and September 30, 2018 . |
Acquisition
Acquisition | 9 Months Ended |
Sep. 29, 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 an allocation of the purchase consideration and valuation of acquired assets and liabilities. The primary assets acquired and included in the Motorcycles segment were goodwill of $9.5 million , which is tax deductible, and intangible assets of $5.3 million |
Additional Balance Sheet and Ca
Additional Balance Sheet and Cash Flow Information | 9 Months Ended |
Sep. 29, 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): September 29, December 31, September 30, Debt securities $ — $ 10,007 $ 10,011 Mutual funds 49,821 44,243 49,832 $ 49,821 $ 54,250 $ 59,843 Debt securities, which were included in Marketable securities on the Consolidated balance sheets , were carried at fair value with unrealized gains or losses reported in other comprehensive income. Mutual funds, 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. The mutual funds are held to support certain deferred compensation obligations. Inventories Substantially all inventories located in the U.S. 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): September 29, December 31, September 30, Raw materials and work in process $ 189,144 $ 177,110 $ 174,891 Motorcycle finished goods 206,324 301,630 251,794 Parts & accessories and general merchandise 152,269 136,027 141,918 Inventory at lower of FIFO cost or net realizable value 547,737 614,767 568,603 Excess of FIFO over LIFO cost (58,639 ) (58,639 ) (52,356 ) $ 489,098 $ 556,128 $ 516,247 Operating Cash Flow The reconciliation of net income to net cash provided by operating activities is as follows (in thousands): Nine months ended September 29, September 30, Cash flows from operating activities: Net income $ 410,139 $ 530,956 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 174,609 196,461 Amortization of deferred loan origination costs 57,303 61,213 Amortization of financing origination fees 7,032 6,207 Provision for long-term employee benefits 10,888 28,162 Employee benefit plan contributions and payments (11,166 ) (11,035 ) Stock compensation expense 25,323 29,122 Net change in wholesale finance receivables related to sales 683 (18,400 ) Provision for credit losses 94,621 72,462 Deferred income taxes 3,535 1,457 Other, net 7,839 29,340 Changes in current assets and liabilities: Accounts receivable, net (7,833 ) (14,784 ) Finance receivables - accrued interest and other (4,574 ) 1,374 Inventories 62,870 8,270 Accounts payable and accrued liabilities 13,138 183,606 Derivative instruments 2,537 1,227 Other 1,705 16,917 438,510 591,599 Net cash provided by operating activities $ 848,649 $ 1,122,555 |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 29, 2019 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables The Company provides retail financial services to customers of the Company’s independent dealers in the U.S. 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 the sale of motorcycles and related parts and accessories to dealers. Finance receivables, net, consisted of the following (in thousands): September 29, December 31, September 30, Retail finance receivables $ 6,642,809 $ 6,328,201 $ 6,508,670 Wholesale finance receivables 1,071,347 1,083,615 988,339 7,714,156 7,411,816 7,497,009 Allowance for credit losses (198,576 ) (189,885 ) (193,447 ) $ 7,515,580 $ 7,221,931 $ 7,303,562 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 September 29, 2019 Retail Wholesale Total Balance, beginning of period $ 186,722 $ 8,274 $ 194,996 Provision for credit losses 35,071 (1,324 ) 33,747 Charge-offs (41,076 ) — (41,076 ) Recoveries 10,909 — 10,909 Balance, end of period $ 191,626 $ 6,950 $ 198,576 Three months ended September 30, 2018 Retail Wholesale Total Balance, beginning of period $ 187,502 $ 6,428 $ 193,930 Provision for credit losses 23,629 (99 ) 23,530 Charge-offs (33,689 ) (8 ) (33,697 ) Recoveries 9,684 — 9,684 Balance, end of period $ 187,126 $ 6,321 $ 193,447 Nine months ended September 29, 2019 Retail Wholesale Total Balance, beginning of period $ 182,098 $ 7,787 $ 189,885 Provision for credit losses 95,458 (837 ) 94,621 Charge-offs (121,538 ) — (121,538 ) Recoveries 35,608 — 35,608 Balance, end of period $ 191,626 $ 6,950 $ 198,576 Nine months ended September 30, 2018 Retail Wholesale Total Balance, beginning of period $ 186,254 $ 6,217 $ 192,471 Provision for credit losses 72,350 112 72,462 Charge-offs (107,717 ) (8 ) (107,725 ) Recoveries 36,239 — 36,239 Balance, end of period $ 187,126 $ 6,321 $ 193,447 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): September 29, 2019 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 191,626 6,950 198,576 $ 191,626 $ 6,950 $ 198,576 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,642,809 1,071,347 7,714,156 $ 6,642,809 $ 1,071,347 $ 7,714,156 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 $ 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 $ 6,328,201 $ 1,083,615 $ 7,411,816 September 30, 2018 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 187,126 6,321 193,447 $ 187,126 $ 6,321 $ 193,447 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,508,670 988,339 7,497,009 $ 6,508,670 $ 988,339 $ 7,497,009 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 finance receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of September 29, 2019 , December 31, 2018 and September 30, 2018 , all retail finance receivables were accounted for as interest-earning receivables, of which $35.6 million , $41.2 million and $31.6 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 the Company 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 September 29, 2019 , December 31, 2018 or September 30, 2018 . At September 29, 2019 , December 31, 2018 and September 30, 2018 , $2.0 million , $1.1 million , and $0.2 million of wholesale finance receivables were 90 days or more past due and accruing interest, respectively. The aging analysis of finance receivables was as follows (in thousands): September 29, 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 finance receivables $ 6,425,097 $ 134,074 $ 48,033 $ 35,605 $ 217,712 $ 6,642,809 Wholesale finance receivables 1,068,510 615 209 2,013 2,837 1,071,347 $ 7,493,607 $ 134,689 $ 48,242 $ 37,618 $ 220,549 $ 7,714,156 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 finance receivables $ 6,100,186 $ 136,945 $ 49,825 $ 41,245 $ 228,015 $ 6,328,201 Wholesale finance receivables 1,081,729 522 273 1,091 1,886 1,083,615 $ 7,181,915 $ 137,467 $ 50,098 $ 42,336 $ 229,901 $ 7,411,816 September 30, 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 finance receivables $ 6,304,096 $ 128,123 $ 44,808 $ 31,643 $ 204,574 $ 6,508,670 Wholesale finance receivables 987,563 500 115 161 776 988,339 $ 7,291,659 $ 128,623 $ 44,923 $ 31,804 $ 205,350 $ 7,497,009 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 generally considered prime, and loans with a FICO score below 640 are generally 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): September 29, December 31, September 30, Prime $ 5,454,920 $ 5,183,754 $ 5,321,464 Sub-prime 1,187,889 1,144,447 1,187,206 $ 6,642,809 $ 6,328,201 $ 6,508,670 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 the Company’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): September 29, December 31, September 30, Doubtful $ 4,964 $ 2,210 $ — Substandard 752 9,660 8,953 Special Mention 14,813 10,299 25,459 Medium Risk 11,544 25,802 15,825 Low Risk 1,039,274 1,035,644 938,102 $ 1,071,347 $ 1,083,615 $ 988,339 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company is exposed to risks from fluctuations in foreign currency exchange rates, interest rates and commodity prices. 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, Australian dollar, Japanese yen, Brazilian real, Canadian dollar, Mexican peso, Indian rupee, and Pound sterling. 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 floating rate medium-term notes. The Company also utilizes interest rate caps to facilitate certain asset-backed securitization transactions. All derivative instruments are recognized on the Consolidated balance sheets 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 derivative instruments 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 ongoing basis, whether the derivative instruments 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. Derivative instruments not designated as hedges are not speculative and are used to manage the Company’s exposure to foreign currency, commodity risks, and interest rate risks. Changes in the fair value of derivative instruments 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 September 29, 2019 December 31, 2018 September 30, 2018 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 $ 441,131 $ 11,459 $ 790 $ 442,976 $ 15,071 $ 313 $ 512,071 $ 11,687 $ 718 Commodity contracts 744 — 56 827 — 46 925 9 — Treasury rate locks — — — — — — 50,000 52 — Interest rate swaps 900,000 — 11,164 900,000 — 4,494 450,000 550 — $ 1,341,875 $ 11,459 $ 12,010 $ 1,343,803 $ 15,071 $ 4,853 $ 1,012,996 $ 12,298 $ 718 Derivatives Not Designated as Hedging September 29, 2019 December 31, 2018 September 30, 2018 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 $ 193,959 $ 278 $ 219 $ — $ — $ — $ — $ — $ — Commodity contracts 9,485 230 360 5,239 — 463 5,207 233 213 Interest rate cap 427,530 4 — — — — — — — $ 630,974 $ 512 $ 579 $ 5,239 $ — $ 463 $ 5,207 $ 233 $ 213 The following tables summarize the amounts of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands): Amount of Gain/(Loss) Recognized in OCI Amount of Gain/(Loss) Reclassified from AOCL Location of Gain/(Loss) Reclassified from AOCL Amounts shown on the Consolidated Statements of Income Three months ended Consolidated Statements of Income line item Three months ended September 29, September 30, September 29, September 30, September 29, September 30, Foreign currency contracts $ 13,135 $ 4,508 $ 5,826 $ 5,695 Motorcycles cost of goods sold $ 748,878 $ 776,530 Commodity contracts (15 ) 5 (28 ) — Motorcycles cost of goods sold $ 748,878 $ 776,530 Treasury rate locks — — (91 ) (90 ) Interest expense $ 7,789 $ 7,762 Treasury rate locks — 52 (33 ) (33 ) Financial Services interest expense $ 53,390 $ 44,696 Interest rate swaps (708 ) 486 (1,463 ) (661 ) Financial Services interest expense $ 53,390 $ 44,696 $ 12,412 $ 5,051 $ 4,211 $ 4,911 Amount of Gain/(Loss) Recognized in OCI Amount of Gain/(Loss) Reclassified from AOCL Location of Gain/(Loss) Reclassified from AOCL Amounts shown on the Consolidated Statements of Income Nine months ended Consolidated Statements of Income line item Nine months ended September 29, September 30, September 29, September 30, September 29, September 30, Foreign currency contracts $ 14,422 $ 31,253 $ 15,947 $ (58 ) Motorcycles cost of goods sold $ 2,576,342 $ 2,659,740 Commodity contracts (55 ) (7 ) (45 ) (85 ) Motorcycles cost of goods sold $ 2,576,342 $ 2,659,740 Treasury rate locks — — (272 ) (271 ) Interest expense $ 23,304 $ 23,180 Treasury rate locks — 93 (97 ) (103 ) Financial Services interest expense $ 158,387 $ 145,089 Interest rate swaps (9,569 ) (400 ) (2,899 ) (950 ) Financial Services Interest expense $ 158,387 $ 145,089 $ 4,798 $ 30,939 $ 12,634 $ (1,467 ) As of September 29, 2019 , the Company estimates a $4.4 million net gain currently recorded in Accumulated other comprehensive loss (AOCL) will be reclassified into income over the next twelve months. The following table summarizes the amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments (in thousands). Foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial services interest expense. Amount of Gain/(Loss) Recognized in Income Three months ended Nine months ended September 29, September 30, September 29, September 30, Foreign currency contracts $ 1,719 $ — $ 1,602 $ — Commodity contracts (15 ) (85 ) (8 ) 59 Interest rate cap (1 ) — (142 ) — $ 1,703 $ (85 ) $ 1,452 $ 59 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
Leases | 9 Months Ended |
Sep. 29, 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 sheets . ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the 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 liabilities 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 and nine months ended September 29, 2019 was $7.4 million and $20.1 million , respectively. This includes variable lease costs related to leases involving assets operated by a third-party of approximately $1.6 million and $4.8 million for the three and nine months ended September 29, 2019 , respectively. Other variable and short-term lease costs were not material. Balance sheet information related to the Company's leases was as follows (in thousands): September 29, Lease assets $ 55,905 Accrued liabilities $ 18,421 Lease liabilities 39,408 $ 57,829 Future maturities of the Company's lease liabilities as of September 29, 2019 were as follows (in thousands): Operating Leases 2019 $ 5,421 2020 18,781 2021 15,743 2022 10,507 2023 4,396 Thereafter 6,649 Future lease payments 61,497 Less present value discount 3,668 Lease liability $ 57,829 Other lease information was as follows (dollars in thousands): Three months ended Nine months ended September 29, 2019 September 29, 2019 Operating cash outflows for amounts included in the measurement of lease liabilities $ 6,073 $ 15,944 Right-of-use assets obtained in exchange for lease obligations $ 6,724 $ 10,986 September 29, Weighted-average remaining lease term (in years) 4.23 Weighted-average discount rate 3.3 % |
Debt
Debt | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt with a contractual term of one year or less is generally classified as short-term and consisted of the following (in thousands): September 29, December 31, September 30, Unsecured commercial paper $ 1,013,137 $ 1,135,810 $ 1,373,859 Debt with a contractual term greater than one year is generally classified as long-term and consisted of the following (in thousands): September 29, December 31, September 30, Secured debt (Note 13): Asset-backed Canadian commercial paper conduit facility $ 128,368 $ 155,951 $ 149,418 Asset-backed U.S. commercial paper conduit facilities 552,757 582,717 265,044 Asset-backed securitization debt 875,966 95,216 128,577 Less: unamortized discounts and debt issuance costs (3,095 ) (49 ) (103 ) 1,553,996 833,835 542,936 Unsecured debt (at par value): Medium-term notes: Due in 2019, issued January 2016 2.25 % — 600,000 600,000 Due in 2019, issued March 2017 LIBOR + 0.35% — 150,000 150,000 Due in 2019, issued September 2014 2.40 % — 600,000 600,000 Due in 2020, issued February 2015 2.15 % 600,000 600,000 600,000 Due in 2020, issued May 2018 LIBOR + 0.50% 450,000 450,000 450,000 Due in 2020, issued March 2017 2.40 % 350,000 350,000 350,000 Due in 2021, issued January 2016 2.85 % 600,000 600,000 600,000 Due in 2021, issued November 2018 LIBOR + 0.94% 450,000 450,000 — Due in 2021, issued May 2018 3.55 % 350,000 350,000 350,000 Due in 2022, issued February 2019 4.05 % 550,000 — — Due in 2022, issued June 2017 2.55 % 400,000 400,000 400,000 Due in 2023, issued February 2018 3.35 % 350,000 350,000 350,000 Less: unamortized discounts and debt issuance costs (10,409 ) (12,993 ) (12,721 ) 4,089,591 4,887,007 4,437,279 Senior notes: Due in 2025, issued July 2015 3.50 % 450,000 450,000 450,000 Due in 2045, issued July 2015 4.625 % 300,000 300,000 300,000 Less: unamortized discounts and debt issuance costs (6,873 ) (7,376 ) (7,542 ) 743,127 742,624 742,458 4,832,718 5,629,631 5,179,737 Long-term debt 6,386,714 6,463,466 5,722,673 Less: Current portion of long-term debt, net (1,779,673 ) (1,575,799 ) (1,526,156 ) Long-term debt, net $ 4,607,041 $ 4,887,667 $ 4,196,517 |
Asset-Backed Financing
Asset-Backed Financing | 9 Months Ended |
Sep. 29, 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 Consolidated balance sheets 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 Consolidated balance sheets (in thousands): September 29, 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 $ 929,773 $ (27,517 ) $ 45,096 $ 469 $ 947,821 $ 872,871 Asset-backed U.S. commercial paper conduit facilities 599,099 (17,701 ) 33,238 1,149 615,785 552,757 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 242,244 (3,182 ) 8,408 258 247,728 128,368 $ 1,771,116 $ (48,400 ) $ 86,742 $ 1,876 $ 1,811,334 $ 1,553,996 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 $ 972,080 $ (26,554 ) $ 55,982 $ 1,906 $ 1,003,414 $ 833,835 September 30, 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 $ 190,461 $ (5,634 ) $ 18,508 $ 437 $ 203,772 $ 128,474 Asset-backed U.S. commercial paper conduit facilities 282,986 (8,393 ) 15,218 971 290,782 265,044 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 173,395 (3,115 ) 9,293 324 179,897 149,418 $ 646,842 $ (17,142 ) $ 43,019 $ 1,732 $ 674,451 $ 542,936 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 various contractual maturities ranging from 2020 to 2026. 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 third quarter of 2019. During the second quarter of 2019, the Company issued $500.0 million and $525.0 million , or $498.7 million and $522.6 million net of discounts and issuance costs, respectively, of secured notes through on-balance sheet asset-backed securitization transactions. There were no on-balance sheet asset-backed securitization transactions during the first quarter of 2019 or the nine months ended September 30, 2018. On-Balance Sheet Asset-Backed U.S. Commercial Paper Conduit Facilities VIE The Company has two separate 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 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 . In May 2019, the Company further amended this revolving facility agreement to allow for incremental borrowings, at the lenders' discretion, of up to an additional $300.0 million in excess of the $300.0 million commitment. 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 September 29, 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. The following table includes quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds (in thousands): 2019 2018 Transfers Proceeds Transfers Proceeds First quarter $ — $ — $ 32,900 $ 29,300 Second quarter — — 59,100 53,300 Third quarter 174,400 154,600 — — $ 174,400 $ 154,600 $ 92,000 $ 82,600 On-Balance Sheet Asset-Backed Canadian Commercial Paper Conduit Facility In June 2019, 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 September 29, 2019 , the Canadian Conduit has an expiration date of June 26, 2020 . 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 $119.4 million at September 29, 2019 . The maximum exposure is not an indication of the Company's expected loss exposure. The following table includes quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds (in thousands): 2019 2018 Transfers Proceeds Transfers Proceeds First quarter $ — $ — $ 7,600 $ 6,200 Second quarter 28,200 23,400 38,900 32,200 Third quarter — — — — $ 28,200 $ 23,400 $ 46,500 $ 38,400 Off-Balance Sheet Asset-Backed Securitization VIE There were no off-balance sheet asset-backed securitization transactions during the nine months ended September 29, 2019 or September 30, 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 Consolidated balance sheets 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 September 29, 2019 , the assets of this off-balance sheet asset-backed securitization VIE were $43.9 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 September 29, 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 $0.5 million and $0.9 million during the nine months ended September 29, 2019 and September 30, 2018, respectively. The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands): September 29, December 31, September 30, On-balance sheet serviced retail motorcycle finance receivables $ 6,500,938 $ 6,185,350 $ 6,360,907 Off-balance sheet serviced retail motorcycle finance receivables 43,938 79,613 93,147 $ 6,544,876 $ 6,264,963 $ 6,454,054 The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands): September 29, December 31, September 30, On-balance sheet serviced retail motorcycle finance receivables $ 217,712 $ 228,015 $ 204,574 Off-balance sheet serviced retail motorcycle finance receivables 954 1,658 1,767 $ 218,666 $ 229,673 $ 206,341 Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands): Three months ended Nine months ended September 29, September 30, September 29, September 30, On-balance sheet serviced retail motorcycle finance receivables $ 30,167 $ 24,005 $ 85,930 $ 71,478 Off-balance sheet serviced retail motorcycle finance receivables (18 ) 230 375 729 $ 30,149 $ 24,235 $ 86,305 $ 72,207 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 29, 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. Foreign currency contracts, commodity contracts and treasury rate locks are valued using quoted forward rates and prices; interest rate swaps and caps are valued using quoted interest rates and yield curves; investments in marketable debt securities and cash equivalents are valued using quoted prices. Level 3 inputs are not observable in the market and include the Company'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): September 29, 2019 Balance Level 1 Level 2 Assets: Cash equivalents $ 624,789 $ 496,900 $ 127,889 Marketable securities 49,821 49,821 — Derivatives instruments 11,971 — 11,971 $ 686,581 $ 546,721 $ 139,860 Liabilities: Derivatives instruments $ 12,589 $ — $ 12,589 December 31, 2018 Balance Level 1 Level 2 Assets: Cash equivalents $ 998,601 $ 728,800 $ 269,801 Marketable securities 54,250 44,243 10,007 Derivatives instruments 15,071 — 15,071 $ 1,067,922 $ 773,043 $ 294,879 Liabilities: Derivatives instruments $ 5,316 $ — $ 5,316 September 30, 2018 Balance Level 1 Level 2 Assets: Cash equivalents $ 687,956 $ 446,300 $ 241,656 Marketable securities 59,843 49,832 10,011 Derivatives instruments 12,531 — 12,531 $ 760,330 $ 496,132 $ 264,198 Liabilities: Derivatives instruments $ 931 $ — $ 931 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 $19.4 million , $20.2 million and $19.5 million at September 29, 2019 , December 31, 2018 and September 30, 2018 , respectively, for which the fair value adjustment was $8.8 million , $9.7 million and $6.7 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): September 29, 2019 December 31, 2018 September 30, 2018 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,561,797 $ 7,515,580 $ 7,304,334 $ 7,221,931 $ 7,394,684 $ 7,303,562 Liabilities: Unsecured commercial paper $ 1,013,137 $ 1,013,137 $ 1,135,810 $ 1,135,810 $ 1,373,859 $ 1,373,859 Asset-backed U.S. commercial paper conduit facilities $ 552,757 $ 552,757 $ 582,717 $ 582,717 $ 265,044 $ 265,044 Asset-backed Canadian commercial paper conduit facility $ 128,368 $ 128,368 $ 155,951 $ 155,951 $ 149,418 $ 149,418 Medium-term notes $ 4,138,941 $ 4,089,591 $ 4,829,671 $ 4,887,007 $ 4,386,030 $ 4,437,279 Senior unsecured notes $ 773,434 $ 743,127 $ 707,198 $ 742,624 $ 707,252 $ 742,458 Asset-backed securitization debt $ 877,423 $ 872,871 $ 94,974 $ 95,167 $ 127,906 $ 128,474 Finance Receivables, Net – The carrying value of retail and wholesale finance receivables 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 is generally amortized cost, net of discounts and debt issuance costs. The fair value of unsecured commercial paper is calculated using Level 2 inputs and approximates carrying value due to its short maturity. The fair value of debt provided under the U.S. Conduit Facilities and Canadian Conduit Facility is calculated using Level 2 inputs and approximates carrying 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 | 9 Months Ended |
Sep. 29, 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. 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 liabilities were as follows (in thousands): Three months ended Nine months ended September 29, September 30, September 29, September 30, Balance, beginning of period $ 108,804 $ 89,943 $ 131,740 $ 94,202 Warranties issued during the period 12,988 12,038 41,955 43,548 Settlements made during the period (26,906 ) (21,550 ) (73,291 ) (59,965 ) Recalls and changes to pre-existing warranty liabilities 1,990 3,493 (3,528 ) 6,139 Balance, end of period $ 96,876 $ 83,924 $ 96,876 $ 83,924 The liability for recall campaigns was $40.5 million , $73.3 million and $23.9 million as of September 29, 2019 , December 31, 2018 and September 30, 2018 , respectively. The Company recorded supplier recoveries within operating expenses separate from the amounts disclosed above of $28.0 million for the nine months ended September 29, 2019 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 29, 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, Motorcycles cost of goods sold and Inventories . 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 Nine months ended September 29, September 30, September 29, September 30, Pension and SERPA Benefits: Service cost $ 6,072 $ 8,063 $ 19,336 $ 24,281 Interest cost 21,371 20,729 64,113 62,048 Expected return on plan assets (35,581 ) (36,925 ) (106,743 ) (110,742 ) Amortization of unrecognized: Prior service credit (483 ) (105 ) (1,449 ) (316 ) Net loss 11,128 16,318 33,384 48,455 Settlement loss 1,500 — 1,500 — Curtailment loss — — — 1,018 Net periodic benefit cost $ 4,007 $ 8,080 $ 10,141 $ 24,744 Three months ended Nine months ended September 29, September 30, September 29, September 30, Postretirement Healthcare Benefits: Service cost $ 1,040 $ 1,789 $ 3,409 $ 5,390 Interest cost 2,938 2,886 8,814 8,669 Expected return on plan assets (3,507 ) (3,541 ) (10,521 ) (10,623 ) Amortization of unrecognized: Prior service credit (595 ) (460 ) (1,785 ) (1,380 ) Net loss 69 454 207 1,362 Special retirement benefit cost — — 1,583 — Curtailment gain — — (960 ) — Net periodic benefit cost $ (55 ) $ 1,128 $ 747 $ 3,418 During the nine months ended September 30, 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 Company's restructuring activities, 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 nine months ended September 30, 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 | 9 Months Ended |
Sep. 29, 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 recorded 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 Matter 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 an agreement with the Navy which 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). A site wide remedial investigation/feasibility study at the York facility has been completed and approved by the Pennsylvania Department of Environmental Protection and the EPA. The Company has an accrual for its share of the estimated future Response Costs recorded in Other long-term liabilities on the Consolidated balance sheets . 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 | 9 Months Ended |
Sep. 29, 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 September 29, 2019 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (38,007 ) $ (10,579 ) $ (566,375 ) $ (614,961 ) Other comprehensive (loss) income before reclassifications (15,451 ) 12,412 — (3,039 ) Income tax benefit (expense) 130 (2,923 ) — (2,793 ) (15,321 ) 9,489 — (5,832 ) Reclassifications: Net gain on derivative instruments — (4,211 ) — (4,211 ) Prior service credits (a) — — (1,078 ) (1,078 ) Actuarial losses (a) — — 11,197 11,197 Reclassifications before tax — (4,211 ) 10,119 5,908 Income tax benefit (expense) — 1,006 (2,375 ) (1,369 ) — (3,205 ) 7,744 4,539 Other comprehensive (loss) income (15,321 ) 6,284 7,744 (1,293 ) Balance, end of period $ (53,328 ) $ (4,295 ) $ (558,631 ) $ (616,254 ) Three months ended September 30, 2018 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (41,419 ) $ 7,431 $ (362,776 ) $ (396,764 ) Other comprehensive (loss) income before reclassifications (2,037 ) 5,051 — 3,014 Income tax expense (175 ) (1,180 ) — (1,355 ) (2,212 ) 3,871 — 1,659 Reclassifications: Net gain on derivative instruments — (4,911 ) — (4,911 ) Prior service credits (a) — — (565 ) (565 ) Actuarial losses (a) — — 16,772 16,772 Reclassifications before tax — (4,911 ) 16,207 11,296 Income tax benefit (expense) — 1,163 (3,806 ) (2,643 ) — (3,748 ) 12,401 8,653 Other comprehensive (loss) income (2,212 ) 123 12,401 10,312 Balance, end of period $ (43,631 ) $ 7,554 $ (350,375 ) $ (386,452 ) Nine months ended September 29, 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 (loss) income before reclassifications (3,693 ) 4,798 — 1,105 Income tax expense (27 ) (1,247 ) — (1,274 ) (3,720 ) 3,551 — (169 ) Reclassifications: Net gain on derivative instruments — (12,634 ) — (12,634 ) Prior service credits (a) — — (3,234 ) (3,234 ) Actuarial losses (a) — — 33,591 33,591 Reclassifications before tax — (12,634 ) 30,357 17,723 Income tax benefit (expense) — 3,003 (7,127 ) (4,124 ) — (9,631 ) 23,230 13,599 Other comprehensive (loss) income (3,720 ) (6,080 ) 23,230 13,430 Balance, end of period $ (53,328 ) $ (4,295 ) $ (558,631 ) $ (616,254 ) Nine months ended September 30, 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 (loss) income before reclassifications (21,604 ) 30,939 96,374 105,709 Income tax expense (175 ) (7,269 ) (22,629 ) (30,073 ) (21,779 ) 23,670 73,745 75,636 Reclassifications: Net loss on derivative instruments — 1,467 — 1,467 Prior service credits (a) — — (1,696 ) (1,696 ) Actuarial losses (a) — — 49,817 49,817 Reclassifications before tax — 1,467 48,121 49,588 Income tax expense — (329 ) (11,298 ) (11,627 ) — 1,138 36,823 37,961 Other comprehensive (loss) income (21,779 ) 24,808 110,568 113,597 Balance, end of period $ (43,631 ) $ 7,554 $ (350,375 ) $ (386,452 ) (a) Amounts reclassified are included in the computation of net periodic benefit cost, discussed further in Note 16 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company's Motorcycles and Financial Services 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 Nine months ended September 29, September 30, September 29, September 30, Motorcycles and Related Products: Motorcycles revenue $ 1,068,942 $ 1,123,945 $ 3,698,583 $ 4,013,013 Gross profit 320,064 347,415 1,122,241 1,353,273 Selling, administrative and engineering expense 265,464 266,921 754,479 797,323 Restructuring expense 7,629 14,832 31,682 74,044 Operating income 46,971 65,662 336,080 481,906 Financial Services: Financial Services revenue 203,577 191,724 590,935 558,000 Financial Services expense 130,704 107,970 383,802 330,126 Operating income 72,873 83,754 207,133 227,874 Operating income $ 119,844 $ 149,416 $ 543,213 $ 709,780 |
Supplemental Consolidating Data
Supplemental Consolidating Data | 9 Months Ended |
Sep. 29, 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 September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,074,397 $ — $ (5,455 ) $ 1,068,942 Financial Services — 201,308 2,269 203,577 1,074,397 201,308 (3,186 ) 1,272,519 Costs and expenses: Motorcycles and Related Products cost of goods sold 748,878 — — 748,878 Financial Services interest expense — 53,390 — 53,390 Financial Services provision for credit losses — 33,747 — 33,747 Selling, administrative and engineering expense 269,080 42,996 (3,045 ) 309,031 Restructuring expense 7,629 — — 7,629 1,025,587 130,133 (3,045 ) 1,152,675 Operating income 48,810 71,175 (141 ) 119,844 Other income (expense), net 3,160 — — 3,160 Investment income 52,041 — (50,000 ) 2,041 Interest expense 7,789 — — 7,789 Income before provision for income taxes 96,222 71,175 (50,141 ) 117,256 Provision for income taxes 13,517 17,176 — 30,693 Net income $ 82,705 $ 53,999 $ (50,141 ) $ 86,563 Nine months ended September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 3,714,091 $ — $ (15,508 ) $ 3,698,583 Financial Services — 584,258 6,677 590,935 3,714,091 584,258 (8,831 ) 4,289,518 Costs and expenses: Motorcycles and Related Products cost of goods sold 2,576,342 — — 2,576,342 Financial Services interest expense — 158,387 — 158,387 Financial Services provision for credit losses — 94,621 — 94,621 Selling, administrative and engineering expense 764,848 129,170 (8,745 ) 885,273 Restructuring expense 31,682 — — 31,682 3,372,872 382,178 (8,745 ) 3,746,305 Operating income 341,219 202,080 (86 ) 543,213 Other income (expense), net 11,857 — — 11,857 Investment income 151,970 — (140,000 ) 11,970 Interest expense 23,304 — — 23,304 Income before provision for income taxes 481,742 202,080 (140,086 ) 543,736 Provision for income taxes 85,422 48,175 — 133,597 Net income $ 396,320 $ 153,905 $ (140,086 ) $ 410,139 Three months ended September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,126,977 $ — $ (3,032 ) $ 1,123,945 Financial Services — 192,188 (464 ) 191,724 1,126,977 192,188 (3,496 ) 1,315,669 Costs and expenses: Motorcycles and Related Products cost of goods sold 776,530 — — 776,530 Financial Services interest expense — 44,696 — 44,696 Financial Services provision for credit losses — 23,530 — 23,530 Selling, administrative and engineering expense 267,316 42,776 (3,427 ) 306,665 Restructuring expense 14,832 — — 14,832 1,058,678 111,002 (3,427 ) 1,166,253 Operating income 68,299 81,186 (69 ) 149,416 Other income (expense), net 644 — — 644 Investment loss (1,106 ) — — (1,106 ) Interest expense 7,762 — — 7,762 Income before provision for income taxes 60,075 81,186 (69 ) 141,192 Provision for income taxes 10,613 16,724 — 27,337 Net income $ 49,462 $ 64,462 $ (69 ) $ 113,855 Nine months ended September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 4,021,268 $ — $ (8,255 ) $ 4,013,013 Financial Services — 559,436 (1,436 ) 558,000 4,021,268 559,436 (9,691 ) 4,571,013 Costs and expenses: Motorcycles and Related Products cost of goods sold 2,659,740 — — 2,659,740 Financial Services interest expense — 145,089 — 145,089 Financial Services provision for credit losses — 72,462 — 72,462 Selling, administrative and engineering expense 798,544 120,830 (9,476 ) 909,898 Restructuring expense 74,044 — — 74,044 3,532,328 338,381 (9,476 ) 3,861,233 Operating income 488,940 221,055 (215 ) 709,780 Other income (expense), net 1,509 — — 1,509 Investment income 112,630 — (110,000 ) 2,630 Interest expense 23,180 — — 23,180 Income before provision for income taxes 579,899 221,055 (110,215 ) 690,739 Provision for income taxes 110,529 49,254 — 159,783 Net income $ 469,370 $ 171,801 $ (110,215 ) $ 530,956 September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 482,106 $ 380,275 $ — $ 862,381 Accounts receivable, net 635,997 — (328,381 ) 307,616 Finance receivables, net — 2,210,001 — 2,210,001 Inventories 489,098 — — 489,098 Restricted cash — 79,115 — 79,115 Other current assets 109,724 46,013 (14,951 ) 140,786 1,716,925 2,715,404 (343,332 ) 4,088,997 Finance receivables, net — 5,305,579 — 5,305,579 Property, plant and equipment, net 791,107 53,339 — 844,446 Goodwill 63,727 — — 63,727 Deferred income taxes 92,921 40,411 (1,313 ) 132,019 Lease assets 49,706 6,199 — 55,905 Other long-term assets 157,341 20,401 (92,185 ) 85,557 $ 2,871,727 $ 8,141,333 $ (436,830 ) $ 10,576,230 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 314,843 $ 362,489 $ (328,381 ) $ 348,951 Accrued liabilities 462,644 108,719 (14,373 ) 556,990 Short-term debt — 1,013,137 — 1,013,137 Current portion of long-term debt, net — 1,779,673 — 1,779,673 777,487 3,264,018 (342,754 ) 3,698,751 Long-term debt, net 743,127 3,863,914 — 4,607,041 Lease liabilities 33,296 6,112 — 39,408 Pension liability 82,561 — — 82,561 Postretirement healthcare liability 89,032 — — 89,032 Other long-term liabilities 180,103 40,261 2,854 223,218 Commitments and contingencies (Note 17) Shareholders’ equity 966,121 967,028 (96,930 ) 1,836,219 $ 2,871,727 $ 8,141,333 $ (436,830 ) $ 10,576,230 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 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 — 1,575,799 755,230 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 September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 576,670 $ 350,322 $ — $ 926,992 Marketable securities 10,011 — — 10,011 Accounts receivable, net 640,416 — (308,107 ) 332,309 Finance receivables, net — 2,116,386 — 2,116,386 Inventories 516,247 — — 516,247 Restricted cash — 36,471 — 36,471 Other current assets 106,259 44,783 — 151,042 1,849,603 2,547,962 (308,107 ) 4,089,458 Finance receivables, net — 5,187,176 — 5,187,176 Property, plant and equipment, net 833,279 51,681 — 884,960 Prepaid pension costs 140,763 — — 140,763 Goodwill 55,318 — — 55,318 Deferred income taxes 25,780 39,203 (1,424 ) 63,559 Other long-term assets 151,815 19,799 (89,048 ) 82,566 $ 3,056,558 $ 7,845,821 $ (398,579 ) $ 10,503,800 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 291,395 $ 327,679 $ (308,107 ) $ 310,967 Accrued liabilities 483,964 80,427 441 564,832 Short-term debt — 1,373,859 — 1,373,859 Current portion of long-term debt, net — 1,526,156 — 1,526,156 775,359 3,308,121 (307,666 ) 3,775,814 Long-term debt, net 742,458 3,454,059 — 4,196,517 Pension liability 54,138 — — 54,138 Postretirement healthcare liability 112,798 — — 112,798 Other long-term liabilities 170,464 38,003 3,094 211,561 Commitments and contingencies (Note 17) Shareholders’ equity 1,201,341 1,045,638 (94,007 ) 2,152,972 $ 3,056,558 $ 7,845,821 $ (398,579 ) $ 10,503,800 Nine months ended September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 396,320 $ 153,905 $ (140,086 ) $ 410,139 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 168,013 6,596 — 174,609 Amortization of deferred loan origination costs — 57,303 — 57,303 Amortization of financing origination fees 503 6,529 — 7,032 Provision for long-term employee benefits 10,888 — — 10,888 Employee benefit plan contributions and payments (11,166 ) — — (11,166 ) Stock compensation expense 22,869 2,454 — 25,323 Net change in wholesale finance receivables related to sales — — 683 683 Provision for credit losses — 94,621 — 94,621 Deferred income taxes 5,514 (1,765 ) (214 ) 3,535 Other, net 9,126 (1,372 ) 85 7,839 Changes in current assets and liabilities: Accounts receivable, net (216,961 ) — 209,128 (7,833 ) Finance receivables - accrued interest and other — (4,574 ) — (4,574 ) Inventories 62,870 — — 62,870 Accounts payable and accrued liabilities 8,729 207,971 (203,562 ) 13,138 Derivative instruments 2,443 94 — 2,537 Other (19,516 ) 12,144 9,077 1,705 43,312 380,001 15,197 438,510 Net cash provided by operating activities 439,632 533,906 (124,889 ) 848,649 Cash flows from investing activities: Capital expenditures (118,182 ) (2,979 ) — (121,161 ) Origination of finance receivables — (5,757,384 ) 2,615,758 (3,141,626 ) Collections on finance receivables — 5,326,787 (2,630,869 ) 2,695,918 Sales and redemptions of marketable securities 10,007 — — 10,007 Acquisition of business (7,000 ) — — (7,000 ) Other investing activities 12,388 — — 12,388 Net cash used by investing activities (102,787 ) (433,576 ) (15,111 ) (551,474 ) Nine months ended September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 546,655 — 546,655 Repayments of medium-term notes — (1,350,000 ) — (1,350,000 ) Proceeds from securitization debt — 1,021,353 — 1,021,353 Repayments of securitization debt — (244,250 ) — (244,250 ) Borrowings of asset-backed commercial paper — 177,950 — 177,950 Repayments of asset-backed commercial paper — (240,008 ) — (240,008 ) Net decrease in credit facilities and unsecured commercial paper — (120,707 ) — (120,707 ) Dividends paid (179,409 ) (140,000 ) 140,000 (179,409 ) Repurchase of common stock (217,454 ) — — (217,454 ) Issuance of common stock under employee stock option plans 2,180 — — 2,180 Net cash used by financing activities (394,683 ) (349,007 ) 140,000 (603,690 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (4,604 ) 494 — (4,110 ) Net decrease in cash, cash equivalents and restricted cash $ (62,442 ) $ (248,183 ) $ — $ (310,625 ) 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 (62,442 ) (248,183 ) — (310,625 ) Cash, cash equivalents and restricted cash, end of period $ 482,106 $ 467,017 $ — $ 949,123 Nine months ended September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 469,370 $ 171,801 $ (110,215 ) $ 530,956 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 193,289 3,172 — 196,461 Amortization of deferred loan origination costs — 61,213 — 61,213 Amortization of financing origination fees 497 5,710 — 6,207 Provision for long-term employee benefits 28,162 — — 28,162 Employee benefit plan contributions and payments (11,035 ) — — (11,035 ) Stock compensation expense 26,122 3,000 — 29,122 Net change in wholesale finance receivables related to sales — — (18,400 ) (18,400 ) Provision for credit losses — 72,462 — 72,462 Deferred income taxes (2,991 ) 4,343 105 1,457 Other, net 28,426 699 215 29,340 Changes in current assets and liabilities: Accounts receivable, net (169,168 ) — 154,384 (14,784 ) Finance receivables - accrued interest and other — 1,374 — 1,374 Inventories 8,270 — — 8,270 Accounts payable and accrued liabilities 170,001 152,028 (138,423 ) 183,606 Derivative instruments 1,124 103 — 1,227 Other 19,411 3,173 (5,667 ) 16,917 292,108 307,277 (7,786 ) 591,599 Net cash provided by operating activities 761,478 479,078 (118,001 ) 1,122,555 Cash flows from investing activities: Capital expenditures (110,493 ) (9,352 ) — (119,845 ) Origination of finance receivables — (5,845,799 ) 2,806,639 (3,039,160 ) Collections on finance receivables — 5,363,333 (2,798,638 ) 2,564,695 Other investing activities (21,753 ) — — (21,753 ) Net cash used by investing activities (132,246 ) (491,818 ) 8,001 (616,063 ) Nine months ended September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 1,144,018 — 1,144,018 Repayments of medium-term notes — (877,488 ) — (877,488 ) Repayments of securitization debt — (224,507 ) — (224,507 ) Borrowings of asset-backed commercial paper — 120,903 — 120,903 Repayments of asset-backed commercial paper — (156,258 ) — (156,258 ) Net increase in credit facilities and unsecured commercial paper — 102,154 — 102,154 Dividends paid (186,105 ) (110,000 ) 110,000 (186,105 ) Repurchase of common stock (195,998 ) — — (195,998 ) Issuance of common stock under employee stock option plans 3,157 — — 3,157 Net cash used by financing activities (378,946 ) (1,178 ) 110,000 (270,124 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (11,802 ) (765 ) — (12,567 ) Net increase (decrease) in cash, cash equivalents and restricted cash $ 238,484 $ (14,683 ) $ — $ 223,801 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 338,186 $ 408,024 $ — $ 746,210 Net increase (decrease) in cash, cash equivalents and restricted cash 238,484 (14,683 ) — 223,801 Cash, cash equivalents and restricted cash, end of period $ 576,670 $ 393,341 $ — $ 970,011 |
Basis of Presentation and Use_2
Basis of Presentation and Use of Estimates (Policies) | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. |
New Accounting Pronouncements | Accounting Standards Recently Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the 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 lease 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 ongoing 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 Accounting Standards Codification (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. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. An entity will apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. The Company is continuing its implementation plan which includes model development, documentation and validation as well as the evaluation of associated processes, data sources, internal controls and policies. The Company anticipates that the adoption of ASU 2016-13 will result in an initial increase in the allowance for credit losses, with a decrease in retained earnings. The initial change in the allowance for credit losses at adoption and the ongoing effect of ASU 2016-13 on the provision for credit losses will be impacted by the size and composition of the Company's finance receivables portfolio at each reporting period, as well as other items including economic conditions and forecasts at that time. 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. 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 does not believe the adoption of ASU 2018-15 will have a material impact on its financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table includes revenue disaggregated by major source (in thousands): Three months ended Nine months ended September 29, September 30, September 29, September 30, Motorcycles and Related Products Revenue: Motorcycles $ 779,344 $ 821,670 $ 2,871,982 $ 3,144,796 Parts & Accessories 203,173 212,406 584,134 612,495 General Merchandise 60,334 58,266 180,379 183,520 Licensing 8,611 10,680 27,099 29,445 Other 17,480 20,923 34,989 42,757 1,068,942 1,123,945 3,698,583 4,013,013 Financial Services Revenue: Interest income 175,840 166,013 502,721 478,693 Securitization and servicing fee income 137 260 489 916 Other income 27,600 25,451 87,725 78,391 203,577 191,724 590,935 558,000 $ 1,272,519 $ 1,315,669 $ 4,289,518 $ 4,571,013 |
Deferred Revenue | Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets , was as follows (in thousands): September 29, September 30, Balance, beginning of year $ 29,055 $ 23,441 Balance, end of period 32,374 30,514 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Changes in the Accrued Restructuring Liability | Changes in the accrued restructuring liability were as follows (in thousands): Three months ended September 29, 2019 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 9,661 $ — $ 23 $ 9,684 $ 144 $ 9,828 Restructuring (benefit) expense (1 ) 719 6,850 7,568 61 7,629 Utilized - cash (6,617 ) — (6,535 ) (13,152 ) (205 ) (13,357 ) Utilized - non cash (2 ) (719 ) (336 ) (1,057 ) — (1,057 ) Foreign currency changes (26 ) — — (26 ) — (26 ) Balance, end of period $ 3,015 $ — $ 2 $ 3,017 $ — $ 3,017 Three months ended September 30, 2018 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 36,758 $ — $ 77 $ 36,835 $ — $ 36,835 Restructuring (benefit) expense (649 ) 9,420 6,061 14,832 — 14,832 Utilized - cash (5,402 ) — (6,053 ) (11,455 ) — (11,455 ) Utilized - non cash — (9,420 ) — (9,420 ) — (9,420 ) Foreign currency changes (140 ) — (2 ) (142 ) — (142 ) Balance, end of period $ 30,567 $ — $ 83 $ 30,650 $ — $ 30,650 Nine months ended September 29, 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) 16 14,684 17,316 32,016 (334 ) 31,682 Utilized - cash (21,951 ) — (16,357 ) (38,308 ) (3,101 ) (41,409 ) Utilized - non cash (2 ) (14,684 ) (1,032 ) (15,718 ) — (15,718 ) Foreign currency changes (6 ) — (4 ) (10 ) (26 ) (36 ) Balance, end of period $ 3,015 $ — $ 2 $ 3,017 $ — $ 3,017 Nine months ended September 30, 2018 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ — $ — $ — $ — $ — $ — Restructuring expense 38,956 24,779 10,309 74,044 — 74,044 Utilized - cash (7,835 ) — (10,220 ) (18,055 ) — (18,055 ) Utilized - non cash — (24,779 ) — (24,779 ) — (24,779 ) Foreign currency changes (554 ) — (6 ) (560 ) — (560 ) Balance, end of period $ 30,567 $ — $ 83 $ 30,650 $ — $ 30,650 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 29, 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 Nine months ended September 29, September 30, September 29, September 30, Net income $ 86,563 $ 113,855 $ 410,139 $ 530,956 Basic weighted-average shares outstanding 156,239 165,927 158,117 166,885 Effect of dilutive securities - employee stock compensation plan 705 737 677 796 Diluted weighted-average shares outstanding 156,944 166,664 158,794 167,681 Earnings per share: Basic $ 0.55 $ 0.69 $ 2.59 $ 3.18 Diluted $ 0.55 $ 0.68 $ 2.58 $ 3.17 |
Additional Balance Sheet and _2
Additional Balance Sheet and Cash Flow Information (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Marketable Securities | The Company’s marketable securities consisted of the following (in thousands): September 29, December 31, September 30, Debt securities $ — $ 10,007 $ 10,011 Mutual funds 49,821 44,243 49,832 $ 49,821 $ 54,250 $ 59,843 |
Inventories, Net | Inventories consisted of the following (in thousands): September 29, December 31, September 30, Raw materials and work in process $ 189,144 $ 177,110 $ 174,891 Motorcycle finished goods 206,324 301,630 251,794 Parts & accessories and general merchandise 152,269 136,027 141,918 Inventory at lower of FIFO cost or net realizable value 547,737 614,767 568,603 Excess of FIFO over LIFO cost (58,639 ) (58,639 ) (52,356 ) $ 489,098 $ 556,128 $ 516,247 |
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): Nine months ended September 29, September 30, Cash flows from operating activities: Net income $ 410,139 $ 530,956 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 174,609 196,461 Amortization of deferred loan origination costs 57,303 61,213 Amortization of financing origination fees 7,032 6,207 Provision for long-term employee benefits 10,888 28,162 Employee benefit plan contributions and payments (11,166 ) (11,035 ) Stock compensation expense 25,323 29,122 Net change in wholesale finance receivables related to sales 683 (18,400 ) Provision for credit losses 94,621 72,462 Deferred income taxes 3,535 1,457 Other, net 7,839 29,340 Changes in current assets and liabilities: Accounts receivable, net (7,833 ) (14,784 ) Finance receivables - accrued interest and other (4,574 ) 1,374 Inventories 62,870 8,270 Accounts payable and accrued liabilities 13,138 183,606 Derivative instruments 2,537 1,227 Other 1,705 16,917 438,510 591,599 Net cash provided by operating activities $ 848,649 $ 1,122,555 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Receivables [Abstract] | |
Finance Receivables | Finance receivables, net, consisted of the following (in thousands): September 29, December 31, September 30, Retail finance receivables $ 6,642,809 $ 6,328,201 $ 6,508,670 Wholesale finance receivables 1,071,347 1,083,615 988,339 7,714,156 7,411,816 7,497,009 Allowance for credit losses (198,576 ) (189,885 ) (193,447 ) $ 7,515,580 $ 7,221,931 $ 7,303,562 |
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): September 29, 2019 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 191,626 6,950 198,576 $ 191,626 $ 6,950 $ 198,576 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,642,809 1,071,347 7,714,156 $ 6,642,809 $ 1,071,347 $ 7,714,156 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 $ 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 $ 6,328,201 $ 1,083,615 $ 7,411,816 September 30, 2018 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 187,126 6,321 193,447 $ 187,126 $ 6,321 $ 193,447 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,508,670 988,339 7,497,009 $ 6,508,670 $ 988,339 $ 7,497,009 Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands): Three months ended September 29, 2019 Retail Wholesale Total Balance, beginning of period $ 186,722 $ 8,274 $ 194,996 Provision for credit losses 35,071 (1,324 ) 33,747 Charge-offs (41,076 ) — (41,076 ) Recoveries 10,909 — 10,909 Balance, end of period $ 191,626 $ 6,950 $ 198,576 Three months ended September 30, 2018 Retail Wholesale Total Balance, beginning of period $ 187,502 $ 6,428 $ 193,930 Provision for credit losses 23,629 (99 ) 23,530 Charge-offs (33,689 ) (8 ) (33,697 ) Recoveries 9,684 — 9,684 Balance, end of period $ 187,126 $ 6,321 $ 193,447 Nine months ended September 29, 2019 Retail Wholesale Total Balance, beginning of period $ 182,098 $ 7,787 $ 189,885 Provision for credit losses 95,458 (837 ) 94,621 Charge-offs (121,538 ) — (121,538 ) Recoveries 35,608 — 35,608 Balance, end of period $ 191,626 $ 6,950 $ 198,576 Nine months ended September 30, 2018 Retail Wholesale Total Balance, beginning of period $ 186,254 $ 6,217 $ 192,471 Provision for credit losses 72,350 112 72,462 Charge-offs (107,717 ) (8 ) (107,725 ) Recoveries 36,239 — 36,239 Balance, end of period $ 187,126 $ 6,321 $ 193,447 |
Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables | The aging analysis of finance receivables was as follows (in thousands): September 29, 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 finance receivables $ 6,425,097 $ 134,074 $ 48,033 $ 35,605 $ 217,712 $ 6,642,809 Wholesale finance receivables 1,068,510 615 209 2,013 2,837 1,071,347 $ 7,493,607 $ 134,689 $ 48,242 $ 37,618 $ 220,549 $ 7,714,156 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 finance receivables $ 6,100,186 $ 136,945 $ 49,825 $ 41,245 $ 228,015 $ 6,328,201 Wholesale finance receivables 1,081,729 522 273 1,091 1,886 1,083,615 $ 7,181,915 $ 137,467 $ 50,098 $ 42,336 $ 229,901 $ 7,411,816 September 30, 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 finance receivables $ 6,304,096 $ 128,123 $ 44,808 $ 31,643 $ 204,574 $ 6,508,670 Wholesale finance receivables 987,563 500 115 161 776 988,339 $ 7,291,659 $ 128,623 $ 44,923 $ 31,804 $ 205,350 $ 7,497,009 |
Recorded Investment of Finance Receivables by Credit Quality Indicator | The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands): September 29, December 31, September 30, Doubtful $ 4,964 $ 2,210 $ — Substandard 752 9,660 8,953 Special Mention 14,813 10,299 25,459 Medium Risk 11,544 25,802 15,825 Low Risk 1,039,274 1,035,644 938,102 $ 1,071,347 $ 1,083,615 $ 988,339 The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands): September 29, December 31, September 30, Prime $ 5,454,920 $ 5,183,754 $ 5,321,464 Sub-prime 1,187,889 1,144,447 1,187,206 $ 6,642,809 $ 6,328,201 $ 6,508,670 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 29, 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 September 29, 2019 December 31, 2018 September 30, 2018 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 $ 441,131 $ 11,459 $ 790 $ 442,976 $ 15,071 $ 313 $ 512,071 $ 11,687 $ 718 Commodity contracts 744 — 56 827 — 46 925 9 — Treasury rate locks — — — — — — 50,000 52 — Interest rate swaps 900,000 — 11,164 900,000 — 4,494 450,000 550 — $ 1,341,875 $ 11,459 $ 12,010 $ 1,343,803 $ 15,071 $ 4,853 $ 1,012,996 $ 12,298 $ 718 Derivatives Not Designated as Hedging September 29, 2019 December 31, 2018 September 30, 2018 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 $ 193,959 $ 278 $ 219 $ — $ — $ — $ — $ — $ — Commodity contracts 9,485 230 360 5,239 — 463 5,207 233 213 Interest rate cap 427,530 4 — — — — — — — $ 630,974 $ 512 $ 579 $ 5,239 $ — $ 463 $ 5,207 $ 233 $ 213 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the amounts of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands): Amount of Gain/(Loss) Recognized in OCI Amount of Gain/(Loss) Reclassified from AOCL Location of Gain/(Loss) Reclassified from AOCL Amounts shown on the Consolidated Statements of Income Three months ended Consolidated Statements of Income line item Three months ended September 29, September 30, September 29, September 30, September 29, September 30, Foreign currency contracts $ 13,135 $ 4,508 $ 5,826 $ 5,695 Motorcycles cost of goods sold $ 748,878 $ 776,530 Commodity contracts (15 ) 5 (28 ) — Motorcycles cost of goods sold $ 748,878 $ 776,530 Treasury rate locks — — (91 ) (90 ) Interest expense $ 7,789 $ 7,762 Treasury rate locks — 52 (33 ) (33 ) Financial Services interest expense $ 53,390 $ 44,696 Interest rate swaps (708 ) 486 (1,463 ) (661 ) Financial Services interest expense $ 53,390 $ 44,696 $ 12,412 $ 5,051 $ 4,211 $ 4,911 Amount of Gain/(Loss) Recognized in OCI Amount of Gain/(Loss) Reclassified from AOCL Location of Gain/(Loss) Reclassified from AOCL Amounts shown on the Consolidated Statements of Income Nine months ended Consolidated Statements of Income line item Nine months ended September 29, September 30, September 29, September 30, September 29, September 30, Foreign currency contracts $ 14,422 $ 31,253 $ 15,947 $ (58 ) Motorcycles cost of goods sold $ 2,576,342 $ 2,659,740 Commodity contracts (55 ) (7 ) (45 ) (85 ) Motorcycles cost of goods sold $ 2,576,342 $ 2,659,740 Treasury rate locks — — (272 ) (271 ) Interest expense $ 23,304 $ 23,180 Treasury rate locks — 93 (97 ) (103 ) Financial Services interest expense $ 158,387 $ 145,089 Interest rate swaps (9,569 ) (400 ) (2,899 ) (950 ) Financial Services Interest expense $ 158,387 $ 145,089 $ 4,798 $ 30,939 $ 12,634 $ (1,467 ) |
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 (in thousands). Foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial services interest expense. Amount of Gain/(Loss) Recognized in Income Three months ended Nine months ended September 29, September 30, September 29, September 30, Foreign currency contracts $ 1,719 $ — $ 1,602 $ — Commodity contracts (15 ) (85 ) (8 ) 59 Interest rate cap (1 ) — (142 ) — $ 1,703 $ (85 ) $ 1,452 $ 59 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Balance sheet information related to leases | Balance sheet information related to the Company's leases was as follows (in thousands): September 29, Lease assets $ 55,905 Accrued liabilities $ 18,421 Lease liabilities 39,408 $ 57,829 |
Future maturities of lease liabilities | Future maturities of the Company's lease liabilities as of September 29, 2019 were as follows (in thousands): Operating Leases 2019 $ 5,421 2020 18,781 2021 15,743 2022 10,507 2023 4,396 Thereafter 6,649 Future lease payments 61,497 Less present value discount 3,668 Lease liability $ 57,829 |
Other lease information | Other lease information was as follows (dollars in thousands): Three months ended Nine months ended September 29, 2019 September 29, 2019 Operating cash outflows for amounts included in the measurement of lease liabilities $ 6,073 $ 15,944 Right-of-use assets obtained in exchange for lease obligations $ 6,724 $ 10,986 September 29, Weighted-average remaining lease term (in years) 4.23 Weighted-average discount rate 3.3 % |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 29, 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 and consisted of the following (in thousands): September 29, December 31, September 30, Unsecured commercial paper $ 1,013,137 $ 1,135,810 $ 1,373,859 |
Schedule of Long-term Debt Instruments | Debt with a contractual term greater than one year is generally classified as long-term and consisted of the following (in thousands): September 29, December 31, September 30, Secured debt (Note 13): Asset-backed Canadian commercial paper conduit facility $ 128,368 $ 155,951 $ 149,418 Asset-backed U.S. commercial paper conduit facilities 552,757 582,717 265,044 Asset-backed securitization debt 875,966 95,216 128,577 Less: unamortized discounts and debt issuance costs (3,095 ) (49 ) (103 ) 1,553,996 833,835 542,936 Unsecured debt (at par value): Medium-term notes: Due in 2019, issued January 2016 2.25 % — 600,000 600,000 Due in 2019, issued March 2017 LIBOR + 0.35% — 150,000 150,000 Due in 2019, issued September 2014 2.40 % — 600,000 600,000 Due in 2020, issued February 2015 2.15 % 600,000 600,000 600,000 Due in 2020, issued May 2018 LIBOR + 0.50% 450,000 450,000 450,000 Due in 2020, issued March 2017 2.40 % 350,000 350,000 350,000 Due in 2021, issued January 2016 2.85 % 600,000 600,000 600,000 Due in 2021, issued November 2018 LIBOR + 0.94% 450,000 450,000 — Due in 2021, issued May 2018 3.55 % 350,000 350,000 350,000 Due in 2022, issued February 2019 4.05 % 550,000 — — Due in 2022, issued June 2017 2.55 % 400,000 400,000 400,000 Due in 2023, issued February 2018 3.35 % 350,000 350,000 350,000 Less: unamortized discounts and debt issuance costs (10,409 ) (12,993 ) (12,721 ) 4,089,591 4,887,007 4,437,279 Senior notes: Due in 2025, issued July 2015 3.50 % 450,000 450,000 450,000 Due in 2045, issued July 2015 4.625 % 300,000 300,000 300,000 Less: unamortized discounts and debt issuance costs (6,873 ) (7,376 ) (7,542 ) 743,127 742,624 742,458 4,832,718 5,629,631 5,179,737 Long-term debt 6,386,714 6,463,466 5,722,673 Less: Current portion of long-term debt, net (1,779,673 ) (1,575,799 ) (1,526,156 ) Long-term debt, net $ 4,607,041 $ 4,887,667 $ 4,196,517 |
Asset-Backed Financing (Tables)
Asset-Backed Financing (Tables) | 9 Months Ended |
Sep. 29, 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 Consolidated balance sheets (in thousands): September 29, 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 $ 929,773 $ (27,517 ) $ 45,096 $ 469 $ 947,821 $ 872,871 Asset-backed U.S. commercial paper conduit facilities 599,099 (17,701 ) 33,238 1,149 615,785 552,757 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 242,244 (3,182 ) 8,408 258 247,728 128,368 $ 1,771,116 $ (48,400 ) $ 86,742 $ 1,876 $ 1,811,334 $ 1,553,996 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 $ 972,080 $ (26,554 ) $ 55,982 $ 1,906 $ 1,003,414 $ 833,835 September 30, 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 $ 190,461 $ (5,634 ) $ 18,508 $ 437 $ 203,772 $ 128,474 Asset-backed U.S. commercial paper conduit facilities 282,986 (8,393 ) 15,218 971 290,782 265,044 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 173,395 (3,115 ) 9,293 324 179,897 149,418 $ 646,842 $ (17,142 ) $ 43,019 $ 1,732 $ 674,451 $ 542,936 |
Quarterly Transfers Related to Finance Receivables | The following table includes quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds (in thousands): 2019 2018 Transfers Proceeds Transfers Proceeds First quarter $ — $ — $ 32,900 $ 29,300 Second quarter — — 59,100 53,300 Third quarter 174,400 154,600 — — $ 174,400 $ 154,600 $ 92,000 $ 82,600 The following table includes quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds (in thousands): 2019 2018 Transfers Proceeds Transfers Proceeds First quarter $ — $ — $ 7,600 $ 6,200 Second quarter 28,200 23,400 38,900 32,200 Third quarter — — — — $ 28,200 $ 23,400 $ 46,500 $ 38,400 |
Schedule of Servicing Activities | The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands): September 29, December 31, September 30, On-balance sheet serviced retail motorcycle finance receivables $ 6,500,938 $ 6,185,350 $ 6,360,907 Off-balance sheet serviced retail motorcycle finance receivables 43,938 79,613 93,147 $ 6,544,876 $ 6,264,963 $ 6,454,054 The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands): September 29, December 31, September 30, On-balance sheet serviced retail motorcycle finance receivables $ 217,712 $ 228,015 $ 204,574 Off-balance sheet serviced retail motorcycle finance receivables 954 1,658 1,767 $ 218,666 $ 229,673 $ 206,341 Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands): Three months ended Nine months ended September 29, September 30, September 29, September 30, On-balance sheet serviced retail motorcycle finance receivables $ 30,167 $ 24,005 $ 85,930 $ 71,478 Off-balance sheet serviced retail motorcycle finance receivables (18 ) 230 375 729 $ 30,149 $ 24,235 $ 86,305 $ 72,207 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 29, 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): September 29, 2019 Balance Level 1 Level 2 Assets: Cash equivalents $ 624,789 $ 496,900 $ 127,889 Marketable securities 49,821 49,821 — Derivatives instruments 11,971 — 11,971 $ 686,581 $ 546,721 $ 139,860 Liabilities: Derivatives instruments $ 12,589 $ — $ 12,589 December 31, 2018 Balance Level 1 Level 2 Assets: Cash equivalents $ 998,601 $ 728,800 $ 269,801 Marketable securities 54,250 44,243 10,007 Derivatives instruments 15,071 — 15,071 $ 1,067,922 $ 773,043 $ 294,879 Liabilities: Derivatives instruments $ 5,316 $ — $ 5,316 September 30, 2018 Balance Level 1 Level 2 Assets: Cash equivalents $ 687,956 $ 446,300 $ 241,656 Marketable securities 59,843 49,832 10,011 Derivatives instruments 12,531 — 12,531 $ 760,330 $ 496,132 $ 264,198 Liabilities: Derivatives instruments $ 931 $ — $ 931 |
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): September 29, 2019 December 31, 2018 September 30, 2018 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,561,797 $ 7,515,580 $ 7,304,334 $ 7,221,931 $ 7,394,684 $ 7,303,562 Liabilities: Unsecured commercial paper $ 1,013,137 $ 1,013,137 $ 1,135,810 $ 1,135,810 $ 1,373,859 $ 1,373,859 Asset-backed U.S. commercial paper conduit facilities $ 552,757 $ 552,757 $ 582,717 $ 582,717 $ 265,044 $ 265,044 Asset-backed Canadian commercial paper conduit facility $ 128,368 $ 128,368 $ 155,951 $ 155,951 $ 149,418 $ 149,418 Medium-term notes $ 4,138,941 $ 4,089,591 $ 4,829,671 $ 4,887,007 $ 4,386,030 $ 4,437,279 Senior unsecured notes $ 773,434 $ 743,127 $ 707,198 $ 742,624 $ 707,252 $ 742,458 Asset-backed securitization debt $ 877,423 $ 872,871 $ 94,974 $ 95,167 $ 127,906 $ 128,474 |
Product Warranty and Recall C_2
Product Warranty and Recall Campaigns (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranty and Recall Liability | Changes in the Company’s warranty and recall liabilities were as follows (in thousands): Three months ended Nine months ended September 29, September 30, September 29, September 30, Balance, beginning of period $ 108,804 $ 89,943 $ 131,740 $ 94,202 Warranties issued during the period 12,988 12,038 41,955 43,548 Settlements made during the period (26,906 ) (21,550 ) (73,291 ) (59,965 ) Recalls and changes to pre-existing warranty liabilities 1,990 3,493 (3,528 ) 6,139 Balance, end of period $ 96,876 $ 83,924 $ 96,876 $ 83,924 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | Components of net periodic benefit cost were as follows (in thousands): Three months ended Nine months ended September 29, September 30, September 29, September 30, Pension and SERPA Benefits: Service cost $ 6,072 $ 8,063 $ 19,336 $ 24,281 Interest cost 21,371 20,729 64,113 62,048 Expected return on plan assets (35,581 ) (36,925 ) (106,743 ) (110,742 ) Amortization of unrecognized: Prior service credit (483 ) (105 ) (1,449 ) (316 ) Net loss 11,128 16,318 33,384 48,455 Settlement loss 1,500 — 1,500 — Curtailment loss — — — 1,018 Net periodic benefit cost $ 4,007 $ 8,080 $ 10,141 $ 24,744 Three months ended Nine months ended September 29, September 30, September 29, September 30, Postretirement Healthcare Benefits: Service cost $ 1,040 $ 1,789 $ 3,409 $ 5,390 Interest cost 2,938 2,886 8,814 8,669 Expected return on plan assets (3,507 ) (3,541 ) (10,521 ) (10,623 ) Amortization of unrecognized: Prior service credit (595 ) (460 ) (1,785 ) (1,380 ) Net loss 69 454 207 1,362 Special retirement benefit cost — — 1,583 — Curtailment gain — — (960 ) — Net periodic benefit cost $ (55 ) $ 1,128 $ 747 $ 3,418 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 29, 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 September 29, 2019 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (38,007 ) $ (10,579 ) $ (566,375 ) $ (614,961 ) Other comprehensive (loss) income before reclassifications (15,451 ) 12,412 — (3,039 ) Income tax benefit (expense) 130 (2,923 ) — (2,793 ) (15,321 ) 9,489 — (5,832 ) Reclassifications: Net gain on derivative instruments — (4,211 ) — (4,211 ) Prior service credits (a) — — (1,078 ) (1,078 ) Actuarial losses (a) — — 11,197 11,197 Reclassifications before tax — (4,211 ) 10,119 5,908 Income tax benefit (expense) — 1,006 (2,375 ) (1,369 ) — (3,205 ) 7,744 4,539 Other comprehensive (loss) income (15,321 ) 6,284 7,744 (1,293 ) Balance, end of period $ (53,328 ) $ (4,295 ) $ (558,631 ) $ (616,254 ) Three months ended September 30, 2018 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (41,419 ) $ 7,431 $ (362,776 ) $ (396,764 ) Other comprehensive (loss) income before reclassifications (2,037 ) 5,051 — 3,014 Income tax expense (175 ) (1,180 ) — (1,355 ) (2,212 ) 3,871 — 1,659 Reclassifications: Net gain on derivative instruments — (4,911 ) — (4,911 ) Prior service credits (a) — — (565 ) (565 ) Actuarial losses (a) — — 16,772 16,772 Reclassifications before tax — (4,911 ) 16,207 11,296 Income tax benefit (expense) — 1,163 (3,806 ) (2,643 ) — (3,748 ) 12,401 8,653 Other comprehensive (loss) income (2,212 ) 123 12,401 10,312 Balance, end of period $ (43,631 ) $ 7,554 $ (350,375 ) $ (386,452 ) Nine months ended September 29, 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 (loss) income before reclassifications (3,693 ) 4,798 — 1,105 Income tax expense (27 ) (1,247 ) — (1,274 ) (3,720 ) 3,551 — (169 ) Reclassifications: Net gain on derivative instruments — (12,634 ) — (12,634 ) Prior service credits (a) — — (3,234 ) (3,234 ) Actuarial losses (a) — — 33,591 33,591 Reclassifications before tax — (12,634 ) 30,357 17,723 Income tax benefit (expense) — 3,003 (7,127 ) (4,124 ) — (9,631 ) 23,230 13,599 Other comprehensive (loss) income (3,720 ) (6,080 ) 23,230 13,430 Balance, end of period $ (53,328 ) $ (4,295 ) $ (558,631 ) $ (616,254 ) Nine months ended September 30, 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 (loss) income before reclassifications (21,604 ) 30,939 96,374 105,709 Income tax expense (175 ) (7,269 ) (22,629 ) (30,073 ) (21,779 ) 23,670 73,745 75,636 Reclassifications: Net loss on derivative instruments — 1,467 — 1,467 Prior service credits (a) — — (1,696 ) (1,696 ) Actuarial losses (a) — — 49,817 49,817 Reclassifications before tax — 1,467 48,121 49,588 Income tax expense — (329 ) (11,298 ) (11,627 ) — 1,138 36,823 37,961 Other comprehensive (loss) income (21,779 ) 24,808 110,568 113,597 Balance, end of period $ (43,631 ) $ 7,554 $ (350,375 ) $ (386,452 ) (a) Amounts reclassified are included in the computation of net periodic benefit cost, discussed further in Note 16 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Selected segment information is set forth below (in thousands): Three months ended Nine months ended September 29, September 30, September 29, September 30, Motorcycles and Related Products: Motorcycles revenue $ 1,068,942 $ 1,123,945 $ 3,698,583 $ 4,013,013 Gross profit 320,064 347,415 1,122,241 1,353,273 Selling, administrative and engineering expense 265,464 266,921 754,479 797,323 Restructuring expense 7,629 14,832 31,682 74,044 Operating income 46,971 65,662 336,080 481,906 Financial Services: Financial Services revenue 203,577 191,724 590,935 558,000 Financial Services expense 130,704 107,970 383,802 330,126 Operating income 72,873 83,754 207,133 227,874 Operating income $ 119,844 $ 149,416 $ 543,213 $ 709,780 |
Supplemental Consolidating Da_2
Supplemental Consolidating Data (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | Three months ended September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,074,397 $ — $ (5,455 ) $ 1,068,942 Financial Services — 201,308 2,269 203,577 1,074,397 201,308 (3,186 ) 1,272,519 Costs and expenses: Motorcycles and Related Products cost of goods sold 748,878 — — 748,878 Financial Services interest expense — 53,390 — 53,390 Financial Services provision for credit losses — 33,747 — 33,747 Selling, administrative and engineering expense 269,080 42,996 (3,045 ) 309,031 Restructuring expense 7,629 — — 7,629 1,025,587 130,133 (3,045 ) 1,152,675 Operating income 48,810 71,175 (141 ) 119,844 Other income (expense), net 3,160 — — 3,160 Investment income 52,041 — (50,000 ) 2,041 Interest expense 7,789 — — 7,789 Income before provision for income taxes 96,222 71,175 (50,141 ) 117,256 Provision for income taxes 13,517 17,176 — 30,693 Net income $ 82,705 $ 53,999 $ (50,141 ) $ 86,563 Nine months ended September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 3,714,091 $ — $ (15,508 ) $ 3,698,583 Financial Services — 584,258 6,677 590,935 3,714,091 584,258 (8,831 ) 4,289,518 Costs and expenses: Motorcycles and Related Products cost of goods sold 2,576,342 — — 2,576,342 Financial Services interest expense — 158,387 — 158,387 Financial Services provision for credit losses — 94,621 — 94,621 Selling, administrative and engineering expense 764,848 129,170 (8,745 ) 885,273 Restructuring expense 31,682 — — 31,682 3,372,872 382,178 (8,745 ) 3,746,305 Operating income 341,219 202,080 (86 ) 543,213 Other income (expense), net 11,857 — — 11,857 Investment income 151,970 — (140,000 ) 11,970 Interest expense 23,304 — — 23,304 Income before provision for income taxes 481,742 202,080 (140,086 ) 543,736 Provision for income taxes 85,422 48,175 — 133,597 Net income $ 396,320 $ 153,905 $ (140,086 ) $ 410,139 Three months ended September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,126,977 $ — $ (3,032 ) $ 1,123,945 Financial Services — 192,188 (464 ) 191,724 1,126,977 192,188 (3,496 ) 1,315,669 Costs and expenses: Motorcycles and Related Products cost of goods sold 776,530 — — 776,530 Financial Services interest expense — 44,696 — 44,696 Financial Services provision for credit losses — 23,530 — 23,530 Selling, administrative and engineering expense 267,316 42,776 (3,427 ) 306,665 Restructuring expense 14,832 — — 14,832 1,058,678 111,002 (3,427 ) 1,166,253 Operating income 68,299 81,186 (69 ) 149,416 Other income (expense), net 644 — — 644 Investment loss (1,106 ) — — (1,106 ) Interest expense 7,762 — — 7,762 Income before provision for income taxes 60,075 81,186 (69 ) 141,192 Provision for income taxes 10,613 16,724 — 27,337 Net income $ 49,462 $ 64,462 $ (69 ) $ 113,855 Nine months ended September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 4,021,268 $ — $ (8,255 ) $ 4,013,013 Financial Services — 559,436 (1,436 ) 558,000 4,021,268 559,436 (9,691 ) 4,571,013 Costs and expenses: Motorcycles and Related Products cost of goods sold 2,659,740 — — 2,659,740 Financial Services interest expense — 145,089 — 145,089 Financial Services provision for credit losses — 72,462 — 72,462 Selling, administrative and engineering expense 798,544 120,830 (9,476 ) 909,898 Restructuring expense 74,044 — — 74,044 3,532,328 338,381 (9,476 ) 3,861,233 Operating income 488,940 221,055 (215 ) 709,780 Other income (expense), net 1,509 — — 1,509 Investment income 112,630 — (110,000 ) 2,630 Interest expense 23,180 — — 23,180 Income before provision for income taxes 579,899 221,055 (110,215 ) 690,739 Provision for income taxes 110,529 49,254 — 159,783 Net income $ 469,370 $ 171,801 $ (110,215 ) $ 530,956 |
Balance Sheet | September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 482,106 $ 380,275 $ — $ 862,381 Accounts receivable, net 635,997 — (328,381 ) 307,616 Finance receivables, net — 2,210,001 — 2,210,001 Inventories 489,098 — — 489,098 Restricted cash — 79,115 — 79,115 Other current assets 109,724 46,013 (14,951 ) 140,786 1,716,925 2,715,404 (343,332 ) 4,088,997 Finance receivables, net — 5,305,579 — 5,305,579 Property, plant and equipment, net 791,107 53,339 — 844,446 Goodwill 63,727 — — 63,727 Deferred income taxes 92,921 40,411 (1,313 ) 132,019 Lease assets 49,706 6,199 — 55,905 Other long-term assets 157,341 20,401 (92,185 ) 85,557 $ 2,871,727 $ 8,141,333 $ (436,830 ) $ 10,576,230 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 314,843 $ 362,489 $ (328,381 ) $ 348,951 Accrued liabilities 462,644 108,719 (14,373 ) 556,990 Short-term debt — 1,013,137 — 1,013,137 Current portion of long-term debt, net — 1,779,673 — 1,779,673 777,487 3,264,018 (342,754 ) 3,698,751 Long-term debt, net 743,127 3,863,914 — 4,607,041 Lease liabilities 33,296 6,112 — 39,408 Pension liability 82,561 — — 82,561 Postretirement healthcare liability 89,032 — — 89,032 Other long-term liabilities 180,103 40,261 2,854 223,218 Commitments and contingencies (Note 17) Shareholders’ equity 966,121 967,028 (96,930 ) 1,836,219 $ 2,871,727 $ 8,141,333 $ (436,830 ) $ 10,576,230 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 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 — 1,575,799 755,230 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 September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 576,670 $ 350,322 $ — $ 926,992 Marketable securities 10,011 — — 10,011 Accounts receivable, net 640,416 — (308,107 ) 332,309 Finance receivables, net — 2,116,386 — 2,116,386 Inventories 516,247 — — 516,247 Restricted cash — 36,471 — 36,471 Other current assets 106,259 44,783 — 151,042 1,849,603 2,547,962 (308,107 ) 4,089,458 Finance receivables, net — 5,187,176 — 5,187,176 Property, plant and equipment, net 833,279 51,681 — 884,960 Prepaid pension costs 140,763 — — 140,763 Goodwill 55,318 — — 55,318 Deferred income taxes 25,780 39,203 (1,424 ) 63,559 Other long-term assets 151,815 19,799 (89,048 ) 82,566 $ 3,056,558 $ 7,845,821 $ (398,579 ) $ 10,503,800 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 291,395 $ 327,679 $ (308,107 ) $ 310,967 Accrued liabilities 483,964 80,427 441 564,832 Short-term debt — 1,373,859 — 1,373,859 Current portion of long-term debt, net — 1,526,156 — 1,526,156 775,359 3,308,121 (307,666 ) 3,775,814 Long-term debt, net 742,458 3,454,059 — 4,196,517 Pension liability 54,138 — — 54,138 Postretirement healthcare liability 112,798 — — 112,798 Other long-term liabilities 170,464 38,003 3,094 211,561 Commitments and contingencies (Note 17) Shareholders’ equity 1,201,341 1,045,638 (94,007 ) 2,152,972 $ 3,056,558 $ 7,845,821 $ (398,579 ) $ 10,503,800 |
Cash Flows | Nine months ended September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 396,320 $ 153,905 $ (140,086 ) $ 410,139 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 168,013 6,596 — 174,609 Amortization of deferred loan origination costs — 57,303 — 57,303 Amortization of financing origination fees 503 6,529 — 7,032 Provision for long-term employee benefits 10,888 — — 10,888 Employee benefit plan contributions and payments (11,166 ) — — (11,166 ) Stock compensation expense 22,869 2,454 — 25,323 Net change in wholesale finance receivables related to sales — — 683 683 Provision for credit losses — 94,621 — 94,621 Deferred income taxes 5,514 (1,765 ) (214 ) 3,535 Other, net 9,126 (1,372 ) 85 7,839 Changes in current assets and liabilities: Accounts receivable, net (216,961 ) — 209,128 (7,833 ) Finance receivables - accrued interest and other — (4,574 ) — (4,574 ) Inventories 62,870 — — 62,870 Accounts payable and accrued liabilities 8,729 207,971 (203,562 ) 13,138 Derivative instruments 2,443 94 — 2,537 Other (19,516 ) 12,144 9,077 1,705 43,312 380,001 15,197 438,510 Net cash provided by operating activities 439,632 533,906 (124,889 ) 848,649 Cash flows from investing activities: Capital expenditures (118,182 ) (2,979 ) — (121,161 ) Origination of finance receivables — (5,757,384 ) 2,615,758 (3,141,626 ) Collections on finance receivables — 5,326,787 (2,630,869 ) 2,695,918 Sales and redemptions of marketable securities 10,007 — — 10,007 Acquisition of business (7,000 ) — — (7,000 ) Other investing activities 12,388 — — 12,388 Net cash used by investing activities (102,787 ) (433,576 ) (15,111 ) (551,474 ) Nine months ended September 29, 2019 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 546,655 — 546,655 Repayments of medium-term notes — (1,350,000 ) — (1,350,000 ) Proceeds from securitization debt — 1,021,353 — 1,021,353 Repayments of securitization debt — (244,250 ) — (244,250 ) Borrowings of asset-backed commercial paper — 177,950 — 177,950 Repayments of asset-backed commercial paper — (240,008 ) — (240,008 ) Net decrease in credit facilities and unsecured commercial paper — (120,707 ) — (120,707 ) Dividends paid (179,409 ) (140,000 ) 140,000 (179,409 ) Repurchase of common stock (217,454 ) — — (217,454 ) Issuance of common stock under employee stock option plans 2,180 — — 2,180 Net cash used by financing activities (394,683 ) (349,007 ) 140,000 (603,690 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (4,604 ) 494 — (4,110 ) Net decrease in cash, cash equivalents and restricted cash $ (62,442 ) $ (248,183 ) $ — $ (310,625 ) 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 (62,442 ) (248,183 ) — (310,625 ) Cash, cash equivalents and restricted cash, end of period $ 482,106 $ 467,017 $ — $ 949,123 Nine months ended September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 469,370 $ 171,801 $ (110,215 ) $ 530,956 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 193,289 3,172 — 196,461 Amortization of deferred loan origination costs — 61,213 — 61,213 Amortization of financing origination fees 497 5,710 — 6,207 Provision for long-term employee benefits 28,162 — — 28,162 Employee benefit plan contributions and payments (11,035 ) — — (11,035 ) Stock compensation expense 26,122 3,000 — 29,122 Net change in wholesale finance receivables related to sales — — (18,400 ) (18,400 ) Provision for credit losses — 72,462 — 72,462 Deferred income taxes (2,991 ) 4,343 105 1,457 Other, net 28,426 699 215 29,340 Changes in current assets and liabilities: Accounts receivable, net (169,168 ) — 154,384 (14,784 ) Finance receivables - accrued interest and other — 1,374 — 1,374 Inventories 8,270 — — 8,270 Accounts payable and accrued liabilities 170,001 152,028 (138,423 ) 183,606 Derivative instruments 1,124 103 — 1,227 Other 19,411 3,173 (5,667 ) 16,917 292,108 307,277 (7,786 ) 591,599 Net cash provided by operating activities 761,478 479,078 (118,001 ) 1,122,555 Cash flows from investing activities: Capital expenditures (110,493 ) (9,352 ) — (119,845 ) Origination of finance receivables — (5,845,799 ) 2,806,639 (3,039,160 ) Collections on finance receivables — 5,363,333 (2,798,638 ) 2,564,695 Other investing activities (21,753 ) — — (21,753 ) Net cash used by investing activities (132,246 ) (491,818 ) 8,001 (616,063 ) Nine months ended September 30, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 1,144,018 — 1,144,018 Repayments of medium-term notes — (877,488 ) — (877,488 ) Repayments of securitization debt — (224,507 ) — (224,507 ) Borrowings of asset-backed commercial paper — 120,903 — 120,903 Repayments of asset-backed commercial paper — (156,258 ) — (156,258 ) Net increase in credit facilities and unsecured commercial paper — 102,154 — 102,154 Dividends paid (186,105 ) (110,000 ) 110,000 (186,105 ) Repurchase of common stock (195,998 ) — — (195,998 ) Issuance of common stock under employee stock option plans 3,157 — — 3,157 Net cash used by financing activities (378,946 ) (1,178 ) 110,000 (270,124 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (11,802 ) (765 ) — (12,567 ) Net increase (decrease) in cash, cash equivalents and restricted cash $ 238,484 $ (14,683 ) $ — $ 223,801 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 338,186 $ 408,024 $ — $ 746,210 Net increase (decrease) in cash, cash equivalents and restricted cash 238,484 (14,683 ) — 223,801 Cash, cash equivalents and restricted cash, end of period $ 576,670 $ 393,341 $ — $ 970,011 |
Basis of Presentation and Use_3
Basis of Presentation and Use of Estimates (Details) | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jan. 01, 2019 |
Accounting Changes and Error Corrections [Abstract] | ||
Lease assets | $ 55,905 | $ 60,000 |
Lease liabilities | $ 57,829 | $ 60,000 |
Revenue - Disaggregation of Re
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue | ||||
Total revenue | $ 1,272,519 | $ 1,315,669 | $ 4,289,518 | $ 4,571,013 |
Motorcycles and Related Products | ||||
Disaggregation of Revenue | ||||
Motorcycles and Related Products | 1,068,942 | 1,123,945 | 3,698,583 | 4,013,013 |
Motorcycles and Related Products | Motorcycles | ||||
Disaggregation of Revenue | ||||
Motorcycles and Related Products | 779,344 | 821,670 | 2,871,982 | 3,144,796 |
Motorcycles and Related Products | Parts & Accessories | ||||
Disaggregation of Revenue | ||||
Motorcycles and Related Products | 203,173 | 212,406 | 584,134 | 612,495 |
Motorcycles and Related Products | General Merchandise | ||||
Disaggregation of Revenue | ||||
Motorcycles and Related Products | 60,334 | 58,266 | 180,379 | 183,520 |
Motorcycles and Related Products | Licensing | ||||
Disaggregation of Revenue | ||||
Motorcycles and Related Products | 8,611 | 10,680 | 27,099 | 29,445 |
Motorcycles and Related Products | Other | ||||
Disaggregation of Revenue | ||||
Motorcycles and Related Products | 17,480 | 20,923 | 34,989 | 42,757 |
Financial Services | ||||
Disaggregation of Revenue | ||||
Financial Services | 203,577 | 191,724 | 590,935 | 558,000 |
Financial Services | Interest income | ||||
Disaggregation of Revenue | ||||
Financial Services | 175,840 | 166,013 | 502,721 | 478,693 |
Financial Services | Securitization and servicing fee income | ||||
Disaggregation of Revenue | ||||
Financial Services | 137 | 260 | 489 | 916 |
Financial Services | Other income | ||||
Disaggregation of Revenue | ||||
Financial Services | $ 27,600 | $ 25,451 | $ 87,725 | $ 78,391 |
Revenue - Contract Liabilities
Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Roll Forward] | |||
Balance, beginning of year | $ 29,055 | $ 30,514 | $ 23,441 |
Balance, end of period | $ 32,374 | $ 29,055 | $ 30,514 |
Revenue - Additional Informati
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Recognized deferred revenue | $ 6 | $ 6.9 | $ 18.3 | $ 16 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Unearned revenue to be recognized | $ 15.3 | $ 15.3 | ||
Remaining unearned revenue | 12 months | 12 months |
Restructuring Expenses - Addit
Restructuring Expenses - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018Employees | Sep. 29, 2019USD ($)Rate | Sep. 30, 2018USD ($) | Sep. 29, 2019USD ($)EmployeesemployeeRate | Sep. 30, 2018USD ($) | |
Motorcycles and Related Products | Temporary Inefficiencies | Cost of Sales | |||||
Restructuring Cost and Reserve | |||||
Incremental cost of goods sold | $ 2.5 | $ 6.2 | $ 10 | $ 9.3 | |
Manufacturing Optimization Plan | Motorcycles and Related Products | |||||
Restructuring Cost and Reserve | |||||
Restructuring and consolidation costs | $ 144.5 | $ 144.5 | |||
Cash charges | Rate | 70.00% | 70.00% | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Minimum | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | $ 142 | $ 142 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Minimum | Restructuring Expense | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 119 | 119 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Minimum | Temporary Inefficiencies | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 23 | 23 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Minimum | Employee Termination Benefits | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 38 | 38 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Minimum | Accelerated Depreciation | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 48 | 48 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Minimum | Other | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 33 | 33 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Maximum | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 152 | 152 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Maximum | Restructuring Expense | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 124 | 124 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Maximum | Temporary Inefficiencies | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 28 | 28 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Maximum | Employee Termination Benefits | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 40 | 40 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Maximum | Accelerated Depreciation | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | 49 | 49 | |||
Manufacturing Optimization Plan | Motorcycles and Related Products | Maximum | Other | |||||
Restructuring Cost and Reserve | |||||
Restructuring expenses and other related costs | $ 35 | $ 35 | |||
Employee Termination Benefits | Motorcycles and Related Products | |||||
Restructuring Cost and Reserve | |||||
Restructuring and consolidation costs, positions eliminated | Employees | 70 | ||||
Kansas City, Missouri | Manufacturing Optimization Plan | |||||
Restructuring Cost and Reserve | |||||
Number of jobs eliminated | employee | 800 | ||||
York, Pennsylvania | Manufacturing Optimization Plan | |||||
Restructuring Cost and Reserve | |||||
Number of jobs added | employee | 450 | ||||
Adelaide, Australia | Manufacturing Optimization Plan | |||||
Restructuring Cost and Reserve | |||||
Number of jobs eliminated | Employees | 90 |
Restructuring Expenses - Restr
Restructuring Expenses - Restructuring Plan Reserve Recorded in Accrued Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring (benefit) expense | $ 7,629 | $ 14,832 | $ 31,682 | $ 74,044 |
Motorcycles and Related Products | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 9,828 | 36,835 | 28,498 | 0 |
Restructuring (benefit) expense | 7,629 | 14,832 | 31,682 | 74,044 |
Utilized - cash | (13,357) | (11,455) | (41,409) | (18,055) |
Utilized - non cash | (1,057) | (9,420) | (15,718) | (24,779) |
Foreign currency changes | (26) | (142) | (36) | (560) |
Balance, end of period | 3,017 | 30,650 | 3,017 | 30,650 |
Motorcycles and Related Products | Manufacturing Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 9,684 | 36,835 | 25,037 | 0 |
Restructuring (benefit) expense | 7,568 | 14,832 | 32,016 | 74,044 |
Utilized - cash | (13,152) | (11,455) | (38,308) | (18,055) |
Utilized - non cash | (1,057) | (9,420) | (15,718) | (24,779) |
Foreign currency changes | (26) | (142) | (10) | (560) |
Balance, end of period | 3,017 | 30,650 | 3,017 | 30,650 |
Motorcycles and Related Products | Employee Termination Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 144 | 0 | 3,461 | 0 |
Restructuring (benefit) expense | 61 | 0 | (334) | 0 |
Utilized - cash | (205) | 0 | (3,101) | 0 |
Utilized - non cash | 0 | 0 | 0 | 0 |
Foreign currency changes | 0 | 0 | (26) | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Motorcycles and Related Products | Employee Termination Benefits | Manufacturing Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 9,661 | 36,758 | 24,958 | 0 |
Restructuring (benefit) expense | (1) | (649) | 16 | 38,956 |
Utilized - cash | (6,617) | (5,402) | (21,951) | (7,835) |
Utilized - non cash | (2) | 0 | (2) | 0 |
Foreign currency changes | (26) | (140) | (6) | (554) |
Balance, end of period | 3,015 | 30,567 | 3,015 | 30,567 |
Motorcycles and Related Products | Accelerated Depreciation | Manufacturing Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Restructuring (benefit) expense | 719 | 9,420 | 14,684 | 24,779 |
Utilized - cash | 0 | 0 | 0 | 0 |
Utilized - non cash | (719) | (9,420) | (14,684) | (24,779) |
Foreign currency changes | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Motorcycles and Related Products | Other | Manufacturing Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 23 | 77 | 79 | 0 |
Restructuring (benefit) expense | 6,850 | 6,061 | 17,316 | 10,309 |
Utilized - cash | (6,535) | (6,053) | (16,357) | (10,220) |
Utilized - non cash | (336) | 0 | (1,032) | 0 |
Foreign currency changes | 0 | (2) | (4) | (6) |
Balance, end of period | $ 2 | $ 83 | $ 2 | $ 83 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax rate | 24.60% | 23.10% |
Earnings Per Share - Reconcili
Earnings Per Share - Reconciliation Of Earnings Per Share Basic And Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Numerator: | ||||||||
Net income | $ 86,563 | $ 195,631 | $ 127,945 | $ 113,855 | $ 242,338 | $ 174,763 | $ 410,139 | $ 530,956 |
Denominator: | ||||||||
Basic weighted-average shares outstanding (in shares) | 156,239 | 165,927 | 158,117 | 166,885 | ||||
Effect of dilutive securities - employee stock compensation plan (in shares) | 705 | 737 | 677 | 796 | ||||
Diluted weighted-average shares outstanding (in shares) | 156,944 | 166,664 | 158,794 | 167,681 | ||||
Earnings per share: | ||||||||
Basic (in dollars per share) | $ 0.55 | $ 0.69 | $ 2.59 | $ 3.18 | ||||
Diluted (in dollars per share) | $ 0.55 | $ 0.68 | $ 2.58 | $ 3.17 |
Earnings Per Share - Additiona
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Shares considered anti-dilutive and excluded from computation | 1.1 | 0.8 | 1.2 | 1.1 |
Acquisition (Details)
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 (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Debt securities | $ 0 | $ 10,007 | $ 10,011 |
Mutual funds | 49,821 | 44,243 | 49,832 |
Total marketable securities | $ 49,821 | $ 54,250 | $ 59,843 |
Additional Balance Sheet and _4
Additional Balance Sheet and Cash Flow Information - Inventories, Net (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Inventory | |||
Raw materials and work in process | $ 189,144 | $ 177,110 | $ 174,891 |
Inventory at lower of FIFO cost or net realizable value | 547,737 | 614,767 | 568,603 |
Excess of FIFO over LIFO cost | (58,639) | (58,639) | (52,356) |
Inventories, net | 489,098 | 556,128 | 516,247 |
Motorcycles | |||
Inventory | |||
Finished goods | 206,324 | 301,630 | 251,794 |
Parts & accessories and general merchandise | |||
Inventory | |||
Finished goods | $ 152,269 | $ 136,027 | $ 141,918 |
Additional Balance Sheet and _5
Additional Balance Sheet and Cash Flow Information - Reconciliation Of Net Income To Net Cash Used By Operating Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||||||||
Net income | $ 86,563 | $ 195,631 | $ 127,945 | $ 113,855 | $ 242,338 | $ 174,763 | $ 410,139 | $ 530,956 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 174,609 | 196,461 | ||||||
Amortization of deferred loan origination costs | 57,303 | 61,213 | ||||||
Amortization of financing origination fees | 7,032 | 6,207 | ||||||
Provision for long-term employee benefits | 10,888 | 28,162 | ||||||
Employee benefit plan contributions and payments | (11,166) | (11,035) | ||||||
Stock compensation expense | 25,323 | 29,122 | ||||||
Net change in wholesale finance receivables related to sales | 683 | (18,400) | ||||||
Provision for credit losses | $ 33,747 | $ 23,530 | 94,621 | 72,462 | ||||
Deferred income taxes | 3,535 | 1,457 | ||||||
Other, net | 7,839 | 29,340 | ||||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable, net | (7,833) | (14,784) | ||||||
Finance receivables - accrued interest and other | (4,574) | 1,374 | ||||||
Inventories | 62,870 | 8,270 | ||||||
Accounts payable and accrued liabilities | 13,138 | 183,606 | ||||||
Derivative instruments | 2,537 | 1,227 | ||||||
Other | 1,705 | 16,917 | ||||||
Total adjustments | 438,510 | 591,599 | ||||||
Net cash provided by operating activities | $ 848,649 | $ 1,122,555 |
Finance Receivables - Finance
Finance Receivables - Finance Receivables, Net (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | $ 7,714,156 | $ 7,411,816 | $ 7,497,009 | |||
Allowance for credit losses | (198,576) | $ (194,996) | (189,885) | (193,447) | $ (193,930) | $ (192,471) |
Finance receivables, net | 7,515,580 | 7,221,931 | 7,303,562 | |||
Retail | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | 6,642,809 | 6,328,201 | 6,508,670 | |||
Allowance for credit losses | (191,626) | (186,722) | (182,098) | (187,126) | (187,502) | (186,254) |
Wholesale | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | 1,071,347 | 1,083,615 | 988,339 | |||
Allowance for credit losses | $ (6,950) | $ (8,274) | $ (7,787) | $ (6,321) | $ (6,428) | $ (6,217) |
Finance Receivables - Changes
Finance Receivables - Changes In Allowance For Credit Losses On Finance Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 194,996 | $ 193,930 | $ 189,885 | $ 192,471 |
Provision for credit losses | 33,747 | 23,530 | 94,621 | 72,462 |
Charge-offs | (41,076) | (33,697) | (121,538) | (107,725) |
Recoveries | 10,909 | 9,684 | 35,608 | 36,239 |
Balance, end of period | 198,576 | 193,447 | 198,576 | 193,447 |
Retail | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 186,722 | 187,502 | 182,098 | 186,254 |
Provision for credit losses | 35,071 | 23,629 | 95,458 | 72,350 |
Charge-offs | (41,076) | (33,689) | (121,538) | (107,717) |
Recoveries | 10,909 | 9,684 | 35,608 | 36,239 |
Balance, end of period | 191,626 | 187,126 | 191,626 | 187,126 |
Wholesale | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 8,274 | 6,428 | 7,787 | 6,217 |
Provision for credit losses | (1,324) | (99) | (837) | 112 |
Charge-offs | 0 | (8) | 0 | (8) |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | $ 6,950 | $ 6,321 | $ 6,950 | $ 6,321 |
Finance Receivables - Allowanc
Finance Receivables - Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | $ 0 | $ 0 | $ 0 | |||
Collectively evaluated for impairment | 198,576 | 189,885 | 193,447 | |||
Total allowance for credit losses | 198,576 | $ 194,996 | 189,885 | 193,447 | $ 193,930 | $ 192,471 |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 7,714,156 | 7,411,816 | 7,497,009 | |||
Total Finance Receivables | 7,714,156 | 7,411,816 | 7,497,009 | |||
Retail | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 191,626 | 182,098 | 187,126 | |||
Total allowance for credit losses | 191,626 | 186,722 | 182,098 | 187,126 | 187,502 | 186,254 |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 6,642,809 | 6,328,201 | 6,508,670 | |||
Total Finance Receivables | 6,642,809 | 6,328,201 | 6,508,670 | |||
Wholesale | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 6,950 | 7,787 | 6,321 | |||
Total allowance for credit losses | 6,950 | $ 8,274 | 7,787 | 6,321 | $ 6,428 | $ 6,217 |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 1,071,347 | 1,083,615 | 988,339 | |||
Total Finance Receivables | $ 1,071,347 | $ 1,083,615 | $ 988,339 |
Finance Receivables - Addition
Finance Receivables - Additional Information (Details) - USD ($) | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 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 | $ 35,600,000 | $ 41,200,000 | $ 31,600,000 |
Wholesale | |||
Accounts, Notes, Loans and Financing Receivable | |||
Finance receivables, gross, 90 days or more past due and accruing interest | 2,000,000 | 1,100,000 | 200,000 |
Wholesale receivables on non-accrual status | $ 0 | $ 0 | $ 0 |
Finance Receivables - Aging Of
Finance Receivables - Aging Of Past Due Finance Receivables Including Non Accrual Status Finance Receivables (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | $ 220,549 | $ 229,901 | $ 205,350 |
Total Finance Receivables | 7,714,156 | 7,411,816 | 7,497,009 |
Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Current | 7,493,607 | 7,181,915 | 7,291,659 |
31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 134,689 | 137,467 | 128,623 |
61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 48,242 | 50,098 | 44,923 |
Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 37,618 | 42,336 | 31,804 |
Retail | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 217,712 | 228,015 | 204,574 |
Total Finance Receivables | 6,642,809 | 6,328,201 | 6,508,670 |
Retail | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Current | 6,425,097 | 6,100,186 | 6,304,096 |
Retail | 31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 134,074 | 136,945 | 128,123 |
Retail | 61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 48,033 | 49,825 | 44,808 |
Retail | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 35,605 | 41,245 | 31,643 |
Wholesale | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 2,837 | 1,886 | 776 |
Total Finance Receivables | 1,071,347 | 1,083,615 | 988,339 |
Wholesale | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Current | 1,068,510 | 1,081,729 | 987,563 |
Wholesale | 31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 615 | 522 | 500 |
Wholesale | 61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 209 | 273 | 115 |
Wholesale | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | $ 2,013 | $ 1,091 | $ 161 |
Finance Receivables - Recorded
Finance Receivables - Recorded Investment Of Retail and Wholesale Finance Receivables By Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | $ 7,714,156 | $ 7,411,816 | $ 7,497,009 |
Retail | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 6,642,809 | 6,328,201 | 6,508,670 |
Retail | Prime | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 5,454,920 | 5,183,754 | 5,321,464 |
Retail | Sub-prime | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 1,187,889 | 1,144,447 | 1,187,206 |
Wholesale | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 1,071,347 | 1,083,615 | 988,339 |
Wholesale | Doubtful | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 4,964 | 2,210 | 0 |
Wholesale | Substandard | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 752 | 9,660 | 8,953 |
Wholesale | Special Mention | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 14,813 | 10,299 | 25,459 |
Wholesale | Medium Risk | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | 11,544 | 25,802 | 15,825 |
Wholesale | Low Risk | |||
Financing Receivable, Recorded Investment | |||
Financing receivable, gross | $ 1,039,274 | $ 1,035,644 | $ 938,102 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Derivative Instrument Fair Value (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivatives, Fair Value | |||
Notional Value | $ 1,341,875 | $ 1,343,803 | $ 1,012,996 |
Designated as Hedging Instrument | Cash Flow Hedging | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 11,459 | 15,071 | 12,298 |
Designated as Hedging Instrument | Cash Flow Hedging | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 12,010 | 4,853 | 718 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | |||
Derivatives, Fair Value | |||
Notional Value | 441,131 | 442,976 | 512,071 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 11,459 | 15,071 | 11,687 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 790 | 313 | 718 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | |||
Derivatives, Fair Value | |||
Notional Value | 744 | 827 | 925 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 0 | 0 | 9 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 56 | 46 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Treasury rate locks | |||
Derivatives, Fair Value | |||
Notional Value | 0 | 0 | 50,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Treasury rate locks | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 0 | 0 | 52 |
Designated as Hedging Instrument | Cash Flow Hedging | Treasury rate locks | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 0 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | |||
Derivatives, Fair Value | |||
Notional Value | 900,000 | 900,000 | 450,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 0 | 0 | 550 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 11,164 | 4,494 | 0 |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value | |||
Notional Value | 630,974 | 5,239 | 5,207 |
Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 512 | 0 | 233 |
Not Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 579 | 463 | 213 |
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Derivatives, Fair Value | |||
Notional Value | 193,959 | 0 | 0 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 278 | 0 | 0 |
Not Designated as Hedging Instrument | Foreign currency contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 219 | 0 | 0 |
Not Designated as Hedging Instrument | Commodity contracts | |||
Derivatives, Fair Value | |||
Notional Value | 9,485 | 5,239 | 5,207 |
Not Designated as Hedging Instrument | Commodity contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 230 | 0 | 233 |
Not Designated as Hedging Instrument | Commodity contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 360 | 463 | 213 |
Not Designated as Hedging Instrument | Interest rate cap | |||
Derivatives, Fair Value | |||
Notional Value | 427,530 | 0 | 0 |
Not Designated as Hedging Instrument | Interest rate cap | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 4 | 0 | 0 |
Not Designated as Hedging Instrument | Interest rate cap | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | $ 0 | $ 0 | $ 0 |
Leases - Additional Informatio
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019USD ($) | Sep. 29, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Renewal term | 5 years | 5 years |
Termination period | 1 year | |
Operating lease expense | $ 7.4 | $ 20.1 |
Variable lease cost | $ 1.6 | $ 4.8 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 13 years |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Gain Loss On Derivative Cash Flow Hedges Recognized In OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) | ||||
Motorcycles and Related Products cost of goods sold | $ 748,878 | $ 776,530 | $ 2,576,342 | $ 2,659,740 |
Interest expense | 7,789 | 7,762 | 23,304 | 23,180 |
Financial Services interest expense | 53,390 | 44,696 | 158,387 | 145,089 |
Expected to be reclassified over the next twelve months | 4,400 | |||
Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain/(Loss) Recognized in OCI | 12,412 | 4,798 | ||
Amount of Gain/(Loss) Recognized in OCI | 5,051 | 30,939 | ||
Amount of Gain/(Loss) Reclassified from AOCL | 4,211 | 12,634 | ||
Amount of Gain/(Loss) Reclassified from AOCL | 4,911 | (1,467) | ||
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 | 13,135 | 14,422 | ||
Amount of Gain/(Loss) Recognized in OCI | 4,508 | 31,253 | ||
Amount of Gain/(Loss) Reclassified from AOCL | 5,826 | 15,947 | ||
Amount of Gain/(Loss) Reclassified from AOCL | 5,695 | (58) | ||
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 | (15) | (55) | ||
Amount of Gain/(Loss) Recognized in OCI | 5 | (7) | ||
Amount of Gain/(Loss) Reclassified from AOCL | (28) | (45) | ||
Amount of Gain/(Loss) Reclassified from AOCL | 0 | (85) | ||
Interest Expense | Designated as Hedging Instrument | Cash Flow Hedging | Treasury rate locks | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain/(Loss) Recognized in OCI | 0 | 0 | ||
Amount of Gain/(Loss) Recognized in OCI | 0 | 0 | ||
Amount of Gain/(Loss) Reclassified from AOCL | (91) | (272) | ||
Amount of Gain/(Loss) Reclassified from AOCL | (90) | (271) | ||
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 | 0 | 0 | ||
Amount of Gain/(Loss) Recognized in OCI | 52 | 93 | ||
Amount of Gain/(Loss) Reclassified from AOCL | (33) | (97) | ||
Amount of Gain/(Loss) Reclassified from AOCL | (33) | (103) | ||
Financial Services interest expense | Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain/(Loss) Recognized in OCI | (708) | (9,569) | ||
Amount of Gain/(Loss) Recognized in OCI | 486 | (400) | ||
Amount of Gain/(Loss) Reclassified from AOCL | $ (1,463) | $ (2,899) | ||
Amount of Gain/(Loss) Reclassified from AOCL | $ (661) | $ (950) |
Leases - Supplemental Balance
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jan. 01, 2019 |
Assets | ||
Lease assets | $ 55,905 | $ 60,000 |
Liabilities | ||
Accrued liabilities | 18,421 | |
Lease liabilities | 39,408 | |
Lease liability | $ 57,829 | $ 60,000 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Gain Loss On Derivative Cash Flow Hedges Reclassified From AOCI Into Income (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | $ 1,703 | $ (85) | $ 1,452 | $ 59 |
Foreign currency contracts | Motorcycle, Cost of Goods Sold | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | 1,719 | 0 | 1,602 | 0 |
Commodity contracts | Motorcycle, Cost of Goods Sold | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | (15) | (85) | (8) | 59 |
Interest rate cap | Interest rate cap | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | $ (1) | $ 0 | $ (142) | $ 0 |
Leases - Future Maturities of
Leases - Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jan. 01, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2019 | $ 5,421 | |
2020 | 18,781 | |
2021 | 15,743 | |
2022 | 10,507 | |
2023 | 4,396 | |
Thereafter | 6,649 | |
Future lease payments | 61,497 | |
Less present value discount | 3,668 | |
Lease liability | $ 57,829 | $ 60,000 |
Leases - Other Lease Informati
Leases - Other Lease Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2019USD ($) | Sep. 29, 2019USD ($) | |
Leases [Abstract] | ||
Operating cash outflows for amounts included in the measurement of lease liabilities | $ 6,073 | $ 15,944 |
Right-of-use assets obtained in exchange for lease obligations | $ 6,724 | $ 10,986 |
Weighted average remaining lease term | 4 years 2 months 23 days | 4 years 2 months 23 days |
Weighted-average discount rate | 3.30% | 3.30% |
Debt - Debt With Contractual T
Debt - Debt With Contractual Term Less Than One Year (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Short-term Debt | |||
Short-term debt | $ 1,013,137 | $ 1,135,810 | $ 1,373,859 |
Commercial Paper | |||
Short-term Debt | |||
Short-term debt | $ 1,013,137 | $ 1,135,810 | $ 1,373,859 |
Debt - Debt With A Contractual
Debt - Debt With A Contractual Term Greater Than One Year (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Debt Instrument | |||
Long-term debt | $ 6,386,714 | $ 6,463,466 | $ 5,722,673 |
Less: Current portion of long-term debt, net | (1,779,673) | (1,575,799) | (1,526,156) |
Long-term debt, net | 4,607,041 | 4,887,667 | 4,196,517 |
Secured Debt | |||
Debt Instrument | |||
Less: unamortized discount and debt issuance costs | (3,095) | (49) | (103) |
Long-term debt | 1,553,996 | 833,835 | 542,936 |
Secured Debt | Asset-backed Canadian commercial paper conduit facility | |||
Debt Instrument | |||
Long-term debt, gross | 128,368 | 155,951 | 149,418 |
Secured Debt | Asset-backed U.S. commercial paper conduit facilities | |||
Debt Instrument | |||
Long-term debt, gross | 552,757 | 582,717 | 265,044 |
Secured Debt | Asset-backed securitization debt | |||
Debt Instrument | |||
Long-term debt, gross | 875,966 | 95,216 | 128,577 |
Medium-term notes | |||
Debt Instrument | |||
Long-term debt, gross | 4,089,591 | 4,887,007 | 4,437,279 |
Less: unamortized discount and debt issuance costs | $ (10,409) | (12,993) | (12,721) |
Medium-term notes | Due in 2019, issued January 2016 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 2.25% | ||
Long-term debt, gross | $ 0 | 600,000 | 600,000 |
Medium-term notes | Due in 2019, issued March 2017 | |||
Debt Instrument | |||
Long-term debt, gross | $ 0 | 150,000 | 150,000 |
Medium-term notes | Due in 2019, issued September 2014 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 2.40% | ||
Long-term debt, gross | $ 0 | 600,000 | 600,000 |
Medium-term notes | Due in 2020, issued February 2015 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 2.15% | ||
Long-term debt, gross | $ 600,000 | 600,000 | 600,000 |
Medium-term notes | Due in 2020, issued May 2018 | |||
Debt Instrument | |||
Long-term debt, gross | $ 450,000 | 450,000 | 450,000 |
Medium-term notes | Due in 2020, issued March 2017 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 2.40% | ||
Long-term debt, gross | $ 350,000 | 350,000 | 350,000 |
Medium-term notes | Due in 2021, issued January 2016 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 2.85% | ||
Long-term debt, gross | $ 600,000 | 600,000 | 600,000 |
Medium-term notes | Due in 2021, issued November 2018 | |||
Debt Instrument | |||
Long-term debt, gross | $ 450,000 | 450,000 | 0 |
Medium-term notes | Due in 2021, issued May 2018 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 3.55% | ||
Long-term debt, gross | $ 350,000 | 350,000 | 350,000 |
Medium-term notes | Due in 2022, issued February 2019 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 4.05% | ||
Long-term debt, gross | $ 550,000 | 0 | 0 |
Medium-term notes | Due in 2022, issued June 2017 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 2.55% | ||
Long-term debt, gross | $ 400,000 | 400,000 | 400,000 |
Medium-term notes | Due in 2023, issued February 2018 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 3.35% | ||
Long-term debt, gross | $ 350,000 | 350,000 | 350,000 |
Senior notes: | |||
Debt Instrument | |||
Less: unamortized discount and debt issuance costs | (6,873) | (7,376) | (7,542) |
Long-term debt | $ 743,127 | 742,624 | 742,458 |
Senior notes: | Due in 2025, issued July 2015 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 3.50% | ||
Long-term debt, gross | $ 450,000 | 450,000 | 450,000 |
Senior notes: | Due in 2045, issued July 2015 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 4.625% | ||
Long-term debt, gross | $ 300,000 | 300,000 | 300,000 |
Unsecured Debt | |||
Debt Instrument | |||
Long-term debt | $ 4,832,718 | $ 5,629,631 | $ 5,179,737 |
Unsecured Debt | Due in 2019, issued March 2017 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 0.35% | ||
Unsecured Debt | Due in 2020, issued May 2018 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 0.50% | ||
Unsecured Debt | Due in 2021, issued November 2018 | |||
Debt Instrument | |||
Debt instrument, stated percentage | 0.94% |
Asset-Backed Financing - Asset
Asset-Backed Financing - Assets And Liabilities Of Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Finance receivables | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | $ 1,771,116 | $ 972,080 | $ 646,842 |
Transfers accounted for as secured borrowings, assets, allowance for credit losses, carrying amount | (48,400) | (26,554) | (17,142) |
Finance receivables | Asset-backed securitizations | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 929,773 | 158,718 | 190,461 |
Transfers accounted for as secured borrowings, assets, allowance for credit losses, carrying amount | (27,517) | (4,691) | (5,634) |
Finance receivables | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 599,099 | 631,588 | 282,986 |
Transfers accounted for as secured borrowings, assets, allowance for credit losses, carrying amount | (17,701) | (18,733) | (8,393) |
Finance receivables | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 242,244 | 181,774 | 173,395 |
Transfers accounted for as secured borrowings, assets, allowance for credit losses, carrying amount | (3,182) | (3,130) | (3,115) |
Restricted cash | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 86,742 | 55,982 | 43,019 |
Restricted cash | Asset-backed securitizations | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 45,096 | 17,191 | 18,508 |
Restricted cash | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 33,238 | 30,012 | 15,218 |
Restricted cash | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 8,408 | 8,779 | 9,293 |
Other assets | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,876 | 1,906 | 1,732 |
Other assets | Asset-backed securitizations | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 469 | 329 | 437 |
Other assets | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,149 | 1,234 | 971 |
Other assets | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 258 | 343 | 324 |
Total assets | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,811,334 | 1,003,414 | 674,451 |
Total assets | Asset-backed securitizations | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 947,821 | 171,547 | 203,772 |
Total assets | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 615,785 | 644,101 | 290,782 |
Total assets | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 247,728 | 187,766 | 179,897 |
Asset-backed debt | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 1,553,996 | 833,835 | 542,936 |
Asset-backed debt | Asset-backed securitizations | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 872,871 | 95,167 | 128,474 |
Asset-backed debt | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 552,757 | 582,717 | 265,044 |
Asset-backed debt | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | $ 128,368 | $ 155,951 | $ 149,418 |
Asset-Backed Financing - Addit
Asset-Backed Financing - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2019USD ($) | Jun. 26, 2016USD ($) | Sep. 29, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 29, 2019CAD ($) | May 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2018USD ($) | |
Variable Interest Entity | ||||||||
Proceeds from securitization debt | $ 1,021,353,000 | $ 0 | ||||||
Current unpaid balance - Off-balance sheet retail motorcycle finance receivables | 43,938,000 | 93,147,000 | $ 79,613,000 | |||||
Servicing and ancillary fees | $ 500,000 | $ 900,000 | ||||||
Unconsolidated VIEs | ||||||||
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 | $ 312,600,000 | |||||||
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE, Facility One | Consolidated VIEs | U.S. Line of Credit | ||||||||
Variable Interest Entity | ||||||||
Line of credit, maximum borrowing capacity | $ 600,000,000 | |||||||
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE, Facility Two | Consolidated VIEs | U.S. Line of Credit | ||||||||
Variable Interest Entity | ||||||||
Line of credit, maximum borrowing capacity | $ 300,000,000 | |||||||
Line of credit facility, remaining borrowing capacity | $ 300,000,000 | |||||||
Secured Debt | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | U.S. Line of Credit | ||||||||
Variable Interest Entity | ||||||||
Length of option | 5 years | |||||||
Secured Debt | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | Foreign Line of Credit | ||||||||
Variable Interest Entity | ||||||||
Line of credit, maximum borrowing capacity | $ 220,000,000 | |||||||
Length of option | 5 years | |||||||
VIE, maximum loss exposure, amount | $ 119,400,000 | |||||||
Asset-backed Securities, Securitized Loans and Receivables | Secured Debt | Asset Backed Securitization 1 | Consolidated VIEs | ||||||||
Variable Interest Entity | ||||||||
Secured notes issued | $ 500,000,000 | |||||||
Proceeds from securitization debt | 498,700,000 | |||||||
Asset-backed Securities, Securitized Loans and Receivables | Secured Debt | Asset Backed Securitization 2 | Consolidated VIEs | ||||||||
Variable Interest Entity | ||||||||
Secured notes issued | 525,000,000 | |||||||
Proceeds from securitization debt | $ 522,600,000 |
Asset-Backed Financing - Quart
Asset-Backed Financing - Quarterly Transfer Information (Details) - Secured Debt - Consolidated VIEs - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Asset-backed U.S. commercial paper conduit facilities | U.S. Line of Credit | ||||||||
Variable Interest Entity | ||||||||
Transfers | $ 174,400 | $ 0 | $ 0 | $ 0 | $ 59,100 | $ 32,900 | $ 174,400 | $ 92,000 |
Proceeds | 154,600 | 0 | 0 | 0 | 53,300 | 29,300 | 154,600 | 82,600 |
Asset-backed Canadian commercial paper conduit facility | Foreign Line of Credit | ||||||||
Variable Interest Entity | ||||||||
Transfers | 0 | 28,200 | 0 | 0 | 38,900 | 7,600 | 28,200 | 46,500 |
Proceeds | $ 0 | $ 23,400 | $ 0 | $ 0 | $ 32,200 | $ 6,200 | $ 23,400 | $ 38,400 |
Asset-Backed Financing - Servi
Asset-Backed Financing - Servicing Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |||||
Current unpaid principal balance - On-balance sheet serviced retail motorcycle finance receivables | $ 6,500,938 | $ 6,360,907 | $ 6,500,938 | $ 6,360,907 | $ 6,185,350 |
Current unpaid balance - Off-balance sheet retail motorcycle finance receivables | 43,938 | 93,147 | 43,938 | 93,147 | 79,613 |
Current unpaid balance - Total serviced retail motorcycle finance receivables | 6,544,876 | 6,454,054 | 6,544,876 | 6,454,054 | 6,264,963 |
Delinquent unpaid balance - On-balance sheet serviced retail motorcycle finance receivables | 217,712 | 204,574 | 217,712 | 204,574 | 228,015 |
Delinquent unpaid balance - Off-balance sheet serviced retail motorcycle finance receivables | 954 | 1,767 | 954 | 1,767 | 1,658 |
Delinquent unpaid balance - Total serviced retail motorcycle finance receivables | 218,666 | 206,341 | 218,666 | 206,341 | $ 229,673 |
Credit losses, net of recoveries - On-balance sheet serviced retail motorcycle finance receivables | 30,167 | 24,005 | 85,930 | 71,478 | |
Credit losses, net of recoveries - Off-balance sheet serviced retail motorcycle finance receivables | (18) | 230 | 375 | 729 | |
Credit losses, net of recoveries - Total serviced retail motorcycle finance receivables | $ 30,149 | $ 24,235 | $ 86,305 | $ 72,207 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets And Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Assets: | |||
Cash equivalents | $ 624,789 | $ 998,601 | $ 687,956 |
Marketable securities | 49,821 | 54,250 | 59,843 |
Derivatives instruments | 11,971 | 15,071 | 12,531 |
Assets, fair value | 686,581 | 1,067,922 | 760,330 |
Liabilities: | |||
Derivatives instruments | 12,589 | 5,316 | 931 |
Level 1 | |||
Assets: | |||
Cash equivalents | 496,900 | 728,800 | 446,300 |
Marketable securities | 49,821 | 44,243 | 49,832 |
Derivatives instruments | 0 | 0 | 0 |
Assets, fair value | 546,721 | 773,043 | 496,132 |
Liabilities: | |||
Derivatives instruments | 0 | 0 | 0 |
Level 2 | |||
Assets: | |||
Cash equivalents | 127,889 | 269,801 | 241,656 |
Marketable securities | 0 | 10,007 | 10,011 |
Derivatives instruments | 11,971 | 15,071 | 12,531 |
Assets, fair value | 139,860 | 294,879 | 264,198 |
Liabilities: | |||
Derivatives instruments | $ 12,589 | $ 5,316 | $ 931 |
Fair Value - Additional Inform
Fair Value - Additional Information (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Repossessed inventory | $ 8.8 | $ 9.7 | $ 6.7 |
Level 2 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Repossessed inventory | $ 19.4 | $ 20.2 | $ 19.5 |
Fair Value - Summary of Fair V
Fair Value - Summary of Fair Value and Carrying Value of Company Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Finance receivables, net | $ 7,561,797 | $ 7,304,334 | $ 7,394,684 |
Fair Value | Medium-term notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 4,138,941 | 4,829,671 | 4,386,030 |
Fair Value | Senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 773,434 | 707,198 | 707,252 |
Fair Value | Asset-backed U.S. commercial paper conduit facilities | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 552,757 | 582,717 | 265,044 |
Fair Value | Asset-backed Canadian commercial paper conduit facility | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 128,368 | 155,951 | 149,418 |
Fair Value | Asset-backed securitization debt | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 877,423 | 94,974 | 127,906 |
Fair Value | Unsecured commercial paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Unsecured commercial paper | 1,013,137 | 1,135,810 | 1,373,859 |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Finance receivables, net | 7,515,580 | 7,221,931 | 7,303,562 |
Carrying Value | Medium-term notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 4,089,591 | 4,887,007 | 4,437,279 |
Carrying Value | Senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 743,127 | 742,624 | 742,458 |
Carrying Value | Asset-backed U.S. commercial paper conduit facilities | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 552,757 | 582,717 | 265,044 |
Carrying Value | Asset-backed Canadian commercial paper conduit facility | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 128,368 | 155,951 | 149,418 |
Carrying Value | Asset-backed securitization debt | Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Long-term debt, fair value | 872,871 | 95,167 | 128,474 |
Carrying Value | Unsecured commercial paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Unsecured commercial paper | $ 1,013,137 | $ 1,135,810 | $ 1,373,859 |
Product Warranty and Recall C_3
Product Warranty and Recall Campaigns - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Product Information | |||
Liability for recall campaigns | $ 40.5 | $ 73.3 | $ 23.9 |
Operating Expense | |||
Product Information | |||
Supplier recoveries | $ 28 | ||
Parts & accessories and general merchandise | |||
Product Information | |||
Standard product warranty, period | 1 year | ||
All Countries, Excluding Japan | Motorcycles | |||
Product Information | |||
Standard product warranty, period | 2 years | ||
Japan | Motorcycles | |||
Product Information | |||
Standard product warranty, period | 3 years |
Product Warranty and Recall C_4
Product Warranty and Recall Campaigns - Warranty and Recall Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance, beginning of period | $ 108,804 | $ 89,943 | $ 131,740 | $ 94,202 |
Warranties issued during the period | 12,988 | 12,038 | 41,955 | 43,548 |
Settlements made during the period | (26,906) | (21,550) | (73,291) | (59,965) |
Recalls and changes to pre-existing warranty liabilities | 1,990 | 3,493 | (3,528) | 6,139 |
Balance, end of period | $ 96,876 | $ 83,924 | $ 96,876 | $ 83,924 |
Employee Benefit Plans - Compo
Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Pension and SERPA Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6,072 | $ 8,063 | $ 19,336 | $ 24,281 |
Interest cost | 21,371 | 20,729 | 64,113 | 62,048 |
Expected return on plan assets | (35,581) | (36,925) | (106,743) | (110,742) |
Amortization of unrecognized: Prior service credit | (483) | (105) | (1,449) | (316) |
Amortization of unrecognized: Net loss | 11,128 | 16,318 | 33,384 | 48,455 |
Settlement loss | 1,500 | 0 | 1,500 | 0 |
Curtailment gain (loss) | 0 | 0 | 0 | 1,018 |
Net periodic benefit cost | 4,007 | 8,080 | 10,141 | 24,744 |
Postretirement Healthcare Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,040 | 1,789 | 3,409 | 5,390 |
Interest cost | 2,938 | 2,886 | 8,814 | 8,669 |
Expected return on plan assets | (3,507) | (3,541) | (10,521) | (10,623) |
Amortization of unrecognized: Prior service credit | (595) | (460) | (1,785) | (1,380) |
Amortization of unrecognized: Net loss | 69 | 454 | 207 | 1,362 |
Special retirement benefit cost | 0 | 0 | 1,583 | 0 |
Curtailment gain (loss) | 0 | 0 | (960) | 0 |
Net periodic benefit cost | $ (55) | $ 1,128 | $ 747 | $ 3,418 |
Employee Benefit Plans - Addit
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Pension and postretirement benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | $ 0 | $ 0 | $ 0 | $ 96,374 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - York, Pennsylvania Facility | 9 Months Ended |
Sep. 29, 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 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 1,910,641 | $ 1,797,611 | $ 1,773,949 | $ 2,161,526 | $ 1,995,949 | $ 1,844,277 | $ 1,773,949 | $ 1,844,277 |
Total other comprehensive income, net of tax | (1,293) | 7,090 | 7,633 | 10,312 | 9,840 | 93,445 | 13,430 | 113,597 |
Ending balance | 1,836,219 | 1,910,641 | 1,797,611 | 2,152,972 | 2,161,526 | 1,995,949 | 1,836,219 | 2,152,972 |
Accumulated Other Comprehensive Loss | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (614,961) | (622,051) | (629,684) | (396,764) | (406,604) | (500,049) | (629,684) | (500,049) |
Other comprehensive (loss) income before reclassifications | (3,039) | 3,014 | 1,105 | 105,709 | ||||
Income tax benefit (expense) | (2,793) | (1,355) | (1,274) | (30,073) | ||||
Net other comprehensive income (loss) before reclassifications | (5,832) | 1,659 | (169) | 75,636 | ||||
Total reclassifications before tax | 5,908 | 11,296 | 17,723 | 49,588 | ||||
Income tax benefit (expense) | (1,369) | (2,643) | (4,124) | (11,627) | ||||
Net reclassifications | 4,539 | 8,653 | 13,599 | 37,961 | ||||
Total other comprehensive income, net of tax | (1,293) | 7,090 | 7,633 | 10,312 | 9,840 | 93,445 | 13,430 | 113,597 |
Ending balance | (616,254) | (614,961) | (622,051) | (386,452) | (396,764) | (406,604) | (616,254) | (386,452) |
Foreign currency translation adjustments | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (38,007) | (49,608) | (41,419) | (21,852) | (49,608) | (21,852) | ||
Other comprehensive (loss) income before reclassifications | (15,451) | (2,037) | (3,693) | (21,604) | ||||
Income tax benefit (expense) | 130 | (175) | (27) | (175) | ||||
Net other comprehensive income (loss) before reclassifications | (15,321) | (2,212) | (3,720) | (21,779) | ||||
Total reclassifications before tax | 0 | 0 | 0 | 0 | ||||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||||
Net reclassifications | 0 | 0 | 0 | 0 | ||||
Total other comprehensive income, net of tax | (15,321) | (2,212) | (3,720) | (21,779) | ||||
Ending balance | (53,328) | (38,007) | (43,631) | (41,419) | (53,328) | (43,631) | ||
Derivative financial instruments | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (10,579) | 1,785 | 7,431 | (17,254) | 1,785 | (17,254) | ||
Other comprehensive (loss) income before reclassifications | 12,412 | 5,051 | 4,798 | 30,939 | ||||
Income tax benefit (expense) | (2,923) | (1,180) | (1,247) | (7,269) | ||||
Net other comprehensive income (loss) before reclassifications | 9,489 | 3,871 | 3,551 | 23,670 | ||||
Total reclassifications before tax | (4,211) | (4,911) | (12,634) | 1,467 | ||||
Income tax benefit (expense) | 1,006 | 1,163 | 3,003 | (329) | ||||
Net reclassifications | (3,205) | (3,748) | (9,631) | 1,138 | ||||
Total other comprehensive income, net of tax | 6,284 | 123 | (6,080) | 24,808 | ||||
Ending balance | (4,295) | (10,579) | 7,554 | 7,431 | (4,295) | 7,554 | ||
Pension and postretirement benefit plans | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (566,375) | $ (581,861) | (362,776) | $ (460,943) | (581,861) | (460,943) | ||
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 96,374 | ||||
Income tax benefit (expense) | 0 | 0 | 0 | (22,629) | ||||
Net other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 73,745 | ||||
Total reclassifications before tax | 10,119 | 16,207 | 30,357 | 48,121 | ||||
Income tax benefit (expense) | (2,375) | (3,806) | (7,127) | (11,298) | ||||
Net reclassifications | 7,744 | 12,401 | 23,230 | 36,823 | ||||
Total other comprehensive income, net of tax | 7,744 | 12,401 | 23,230 | 110,568 | ||||
Ending balance | (558,631) | $ (566,375) | (350,375) | $ (362,776) | (558,631) | (350,375) | ||
Pension and postretirement benefit plans - Prior service credits | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Total reclassifications before tax | (1,078) | (565) | (3,234) | (1,696) | ||||
Pension and postretirement benefit plans - Actuarial losses | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Total reclassifications before tax | $ 11,197 | $ 16,772 | $ 33,591 | $ 49,817 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting Information | ||||
Selling, administrative and engineering expense | $ 309,031 | $ 306,665 | $ 885,273 | $ 909,898 |
Restructuring expense | 7,629 | 14,832 | 31,682 | 74,044 |
Motorcycles and Related Products cost of goods sold | 748,878 | 776,530 | 2,576,342 | 2,659,740 |
Operating income | 119,844 | 149,416 | 543,213 | 709,780 |
Motorcycles and Related Products | ||||
Segment Reporting Information | ||||
Motorcycles and Related Products | 1,068,942 | 1,123,945 | 3,698,583 | 4,013,013 |
Gross profit | 320,064 | 347,415 | 1,122,241 | 1,353,273 |
Selling, administrative and engineering expense | 265,464 | 266,921 | 754,479 | 797,323 |
Restructuring expense | 7,629 | 14,832 | 31,682 | 74,044 |
Operating income | 46,971 | 65,662 | 336,080 | 481,906 |
Financial Services | ||||
Segment Reporting Information | ||||
Financial Services | 203,577 | 191,724 | 590,935 | 558,000 |
Motorcycles and Related Products cost of goods sold | 130,704 | 107,970 | 383,802 | 330,126 |
Operating income | $ 72,873 | $ 83,754 | $ 207,133 | $ 227,874 |
Supplemental Consolidating Da_3
Supplemental Consolidating Data - Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenue: | ||||||||
Total revenue | $ 1,272,519 | $ 1,315,669 | $ 4,289,518 | $ 4,571,013 | ||||
Costs and expenses: | ||||||||
Motorcycles and Related Products cost of goods sold | 748,878 | 776,530 | 2,576,342 | 2,659,740 | ||||
Financial Services interest expense | 53,390 | 44,696 | 158,387 | 145,089 | ||||
Provision for credit losses | 33,747 | 23,530 | 94,621 | 72,462 | ||||
Selling, administrative and engineering expense | 309,031 | 306,665 | 885,273 | 909,898 | ||||
Restructuring (benefit) expense | 7,629 | 14,832 | 31,682 | 74,044 | ||||
Total costs and expenses | 1,152,675 | 1,166,253 | 3,746,305 | 3,861,233 | ||||
Operating income | 119,844 | 149,416 | 543,213 | 709,780 | ||||
Other income (expense), net | 3,160 | 644 | 11,857 | 1,509 | ||||
Investment income (loss) | 2,041 | (1,106) | 11,970 | 2,630 | ||||
Interest expense | 7,789 | 7,762 | 23,304 | 23,180 | ||||
Income before provision for income taxes | 117,256 | 141,192 | 543,736 | 690,739 | ||||
Provision for income taxes | 30,693 | 27,337 | 133,597 | 159,783 | ||||
Net income | 86,563 | $ 195,631 | $ 127,945 | 113,855 | $ 242,338 | $ 174,763 | 410,139 | 530,956 |
Motorcycles and Related Products | ||||||||
Revenue: | ||||||||
Motorcycles and Related Products | 1,068,942 | 1,123,945 | 3,698,583 | 4,013,013 | ||||
Financial Services | ||||||||
Revenue: | ||||||||
Financial Services | 203,577 | 191,724 | 590,935 | 558,000 | ||||
Eliminations | ||||||||
Revenue: | ||||||||
Total revenue | (3,186) | (3,496) | (8,831) | (9,691) | ||||
Costs and expenses: | ||||||||
Motorcycles and Related Products cost of goods sold | 0 | 0 | 0 | 0 | ||||
Financial Services interest expense | 0 | 0 | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||||
Selling, administrative and engineering expense | (3,045) | (3,427) | (8,745) | (9,476) | ||||
Restructuring (benefit) expense | 0 | 0 | 0 | 0 | ||||
Total costs and expenses | (3,045) | (3,427) | (8,745) | (9,476) | ||||
Operating income | (141) | (69) | (86) | (215) | ||||
Other income (expense), net | 0 | 0 | 0 | 0 | ||||
Investment income (loss) | (50,000) | 0 | (140,000) | (110,000) | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Income before provision for income taxes | (50,141) | (69) | (140,086) | (110,215) | ||||
Provision for income taxes | 0 | 0 | 0 | 0 | ||||
Net income | (50,141) | (69) | (140,086) | (110,215) | ||||
Eliminations | Motorcycles and Related Products | ||||||||
Revenue: | ||||||||
Motorcycles and Related Products | (5,455) | (3,032) | (15,508) | (8,255) | ||||
Eliminations | Financial Services | ||||||||
Revenue: | ||||||||
Financial Services | 2,269 | (464) | 6,677 | (1,436) | ||||
Motorcycles And Related Products Operations | Reportable Legal Entities | ||||||||
Revenue: | ||||||||
Total revenue | 1,074,397 | 1,126,977 | 3,714,091 | 4,021,268 | ||||
Costs and expenses: | ||||||||
Motorcycles and Related Products cost of goods sold | 748,878 | 776,530 | 2,576,342 | 2,659,740 | ||||
Financial Services interest expense | 0 | 0 | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||||
Selling, administrative and engineering expense | 269,080 | 267,316 | 764,848 | 798,544 | ||||
Restructuring (benefit) expense | 7,629 | 14,832 | 31,682 | 74,044 | ||||
Total costs and expenses | 1,025,587 | 1,058,678 | 3,372,872 | 3,532,328 | ||||
Operating income | 48,810 | 68,299 | 341,219 | 488,940 | ||||
Other income (expense), net | 3,160 | 644 | 11,857 | 1,509 | ||||
Investment income (loss) | 52,041 | (1,106) | 151,970 | 112,630 | ||||
Interest expense | 7,789 | 7,762 | 23,304 | 23,180 | ||||
Income before provision for income taxes | 96,222 | 60,075 | 481,742 | 579,899 | ||||
Provision for income taxes | 13,517 | 10,613 | 85,422 | 110,529 | ||||
Net income | 82,705 | 49,462 | 396,320 | 469,370 | ||||
Motorcycles And Related Products Operations | Reportable Legal Entities | Motorcycles and Related Products | ||||||||
Revenue: | ||||||||
Motorcycles and Related Products | 1,074,397 | 1,126,977 | 3,714,091 | 4,021,268 | ||||
Motorcycles And Related Products Operations | Reportable Legal Entities | Financial Services | ||||||||
Revenue: | ||||||||
Financial Services | 0 | 0 | 0 | 0 | ||||
Financial Services Operations | Reportable Legal Entities | ||||||||
Revenue: | ||||||||
Total revenue | 201,308 | 192,188 | 584,258 | 559,436 | ||||
Costs and expenses: | ||||||||
Motorcycles and Related Products cost of goods sold | 0 | 0 | 0 | 0 | ||||
Financial Services interest expense | 53,390 | 44,696 | 158,387 | 145,089 | ||||
Provision for credit losses | 33,747 | 23,530 | 94,621 | 72,462 | ||||
Selling, administrative and engineering expense | 42,996 | 42,776 | 129,170 | 120,830 | ||||
Restructuring (benefit) expense | 0 | 0 | 0 | 0 | ||||
Total costs and expenses | 130,133 | 111,002 | 382,178 | 338,381 | ||||
Operating income | 71,175 | 81,186 | 202,080 | 221,055 | ||||
Other income (expense), net | 0 | 0 | 0 | 0 | ||||
Investment income (loss) | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Income before provision for income taxes | 71,175 | 81,186 | 202,080 | 221,055 | ||||
Provision for income taxes | 17,176 | 16,724 | 48,175 | 49,254 | ||||
Net income | 53,999 | 64,462 | 153,905 | 171,801 | ||||
Financial Services Operations | Reportable Legal Entities | Motorcycles and Related Products | ||||||||
Revenue: | ||||||||
Motorcycles and Related Products | 0 | 0 | 0 | 0 | ||||
Financial Services Operations | Reportable Legal Entities | Financial Services | ||||||||
Revenue: | ||||||||
Financial Services | $ 201,308 | $ 192,188 | $ 584,258 | $ 559,436 |
Supplemental Consolidating Da_4
Supplemental Consolidating Data - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 |
Current assets: | |||||||||
Cash and cash equivalents | $ 862,381 | $ 1,203,766 | $ 926,992 | ||||||
Marketable securities | 0 | 10,007 | 10,011 | ||||||
Accounts receivable, net | 307,616 | 306,474 | 332,309 | ||||||
Finance receivables, net | 2,210,001 | 2,214,424 | 2,116,386 | ||||||
Inventories | 489,098 | 556,128 | 516,247 | ||||||
Restricted cash | 79,115 | 49,275 | 36,471 | ||||||
Other current assets | 140,786 | 144,368 | 151,042 | ||||||
Total current assets | 4,088,997 | 4,484,442 | 4,089,458 | ||||||
Finance receivables, net | 5,305,579 | 5,007,507 | 5,187,176 | ||||||
Property, plant and equipment, net | 844,446 | 904,132 | 884,960 | ||||||
Prepaid pension costs | 0 | 0 | 140,763 | ||||||
Goodwill | 63,727 | 55,048 | 55,318 | ||||||
Deferred income taxes | 132,019 | 141,464 | 63,559 | ||||||
Lease assets | 55,905 | $ 60,000 | |||||||
Other long-term assets | 85,557 | 73,071 | 82,566 | ||||||
Total assets | 10,576,230 | 10,665,664 | 10,503,800 | ||||||
Current liabilities: | |||||||||
Accounts payable | 348,951 | 284,861 | 310,967 | ||||||
Accrued liabilities | 556,990 | 601,130 | 564,832 | ||||||
Short-term debt | 1,013,137 | 1,135,810 | 1,373,859 | ||||||
Current portion of long-term debt, net | 1,779,673 | 1,575,799 | 1,526,156 | ||||||
Total current liabilities | 3,698,751 | 3,597,600 | 3,775,814 | ||||||
Long-term debt, net | 4,607,041 | 4,887,667 | 4,196,517 | ||||||
Lease liabilities | 39,408 | ||||||||
Pension liabilities | 82,561 | 107,776 | 54,138 | ||||||
Postretirement healthcare benefits | 89,032 | 94,453 | 112,798 | ||||||
Other long-term liabilities | 223,218 | 204,219 | 211,561 | ||||||
Shareholders’ equity | 1,836,219 | $ 1,910,641 | $ 1,797,611 | 1,773,949 | 2,152,972 | $ 2,161,526 | $ 1,995,949 | $ 1,844,277 | |
Total liabilities and shareholders' equity | 10,576,230 | 10,665,664 | 10,503,800 | ||||||
Reportable Legal Entities | Motorcycles And Related Products Operations | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 482,106 | 544,548 | 576,670 | ||||||
Marketable securities | 10,007 | 10,011 | |||||||
Accounts receivable, net | 635,997 | 425,727 | 640,416 | ||||||
Finance receivables, net | 0 | 0 | 0 | ||||||
Inventories | 489,098 | 556,128 | 516,247 | ||||||
Restricted cash | 0 | 0 | 0 | ||||||
Other current assets | 109,724 | 91,172 | 106,259 | ||||||
Total current assets | 1,716,925 | 1,627,582 | 1,849,603 | ||||||
Finance receivables, net | 0 | 0 | 0 | ||||||
Property, plant and equipment, net | 791,107 | 847,176 | 833,279 | ||||||
Prepaid pension costs | 140,763 | ||||||||
Goodwill | 63,727 | 55,048 | 55,318 | ||||||
Deferred income taxes | 92,921 | 105,388 | 25,780 | ||||||
Lease assets | 49,706 | ||||||||
Other long-term assets | 157,341 | 144,122 | 151,815 | ||||||
Total assets | 2,871,727 | 2,779,316 | 3,056,558 | ||||||
Current liabilities: | |||||||||
Accounts payable | 314,843 | 258,587 | 291,395 | ||||||
Accrued liabilities | 462,644 | 496,643 | 483,964 | ||||||
Short-term debt | 0 | 0 | 0 | ||||||
Current portion of long-term debt, net | 0 | 0 | 0 | ||||||
Total current liabilities | 777,487 | 755,230 | 775,359 | ||||||
Long-term debt, net | 743,127 | 742,624 | 742,458 | ||||||
Lease liabilities | 33,296 | ||||||||
Pension liabilities | 82,561 | 107,776 | 54,138 | ||||||
Postretirement healthcare benefits | 89,032 | 94,453 | 112,798 | ||||||
Other long-term liabilities | 180,103 | 164,243 | 170,464 | ||||||
Shareholders’ equity | 966,121 | 914,990 | 1,201,341 | ||||||
Total liabilities and shareholders' equity | 2,871,727 | 2,779,316 | 3,056,558 | ||||||
Reportable Legal Entities | Financial Services Operations | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 380,275 | 659,218 | 350,322 | ||||||
Marketable securities | 0 | 0 | |||||||
Accounts receivable, net | 0 | 0 | 0 | ||||||
Finance receivables, net | 2,210,001 | 2,214,424 | 2,116,386 | ||||||
Inventories | 0 | 0 | 0 | ||||||
Restricted cash | 79,115 | 49,275 | 36,471 | ||||||
Other current assets | 46,013 | 59,070 | 44,783 | ||||||
Total current assets | 2,715,404 | 2,981,987 | 2,547,962 | ||||||
Finance receivables, net | 5,305,579 | 5,007,507 | 5,187,176 | ||||||
Property, plant and equipment, net | 53,339 | 56,956 | 51,681 | ||||||
Prepaid pension costs | 0 | ||||||||
Goodwill | 0 | 0 | 0 | ||||||
Deferred income taxes | 40,411 | 37,603 | 39,203 | ||||||
Lease assets | 6,199 | ||||||||
Other long-term assets | 20,401 | 18,680 | 19,799 | ||||||
Total assets | 8,141,333 | 8,102,733 | 7,845,821 | ||||||
Current liabilities: | |||||||||
Accounts payable | 362,489 | 145,527 | 327,679 | ||||||
Accrued liabilities | 108,719 | 110,063 | 80,427 | ||||||
Short-term debt | 1,013,137 | 1,135,810 | 1,373,859 | ||||||
Current portion of long-term debt, net | 1,779,673 | 1,575,799 | 1,526,156 | ||||||
Total current liabilities | 3,264,018 | 2,967,199 | 3,308,121 | ||||||
Long-term debt, net | 3,863,914 | 4,145,043 | 3,454,059 | ||||||
Lease liabilities | 6,112 | ||||||||
Pension liabilities | 0 | 0 | 0 | ||||||
Postretirement healthcare benefits | 0 | 0 | 0 | ||||||
Other long-term liabilities | 40,261 | 37,142 | 38,003 | ||||||
Shareholders’ equity | 967,028 | 953,349 | 1,045,638 | ||||||
Total liabilities and shareholders' equity | 8,141,333 | 8,102,733 | 7,845,821 | ||||||
Eliminations | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 0 | 0 | 0 | ||||||
Marketable securities | 0 | 0 | |||||||
Accounts receivable, net | (328,381) | (119,253) | (308,107) | ||||||
Finance receivables, net | 0 | 0 | 0 | ||||||
Inventories | 0 | 0 | 0 | ||||||
Restricted cash | 0 | 0 | 0 | ||||||
Other current assets | (14,951) | (5,874) | 0 | ||||||
Total current assets | (343,332) | (125,127) | (308,107) | ||||||
Finance receivables, net | 0 | 0 | 0 | ||||||
Property, plant and equipment, net | 0 | 0 | 0 | ||||||
Prepaid pension costs | 0 | ||||||||
Goodwill | 0 | 0 | 0 | ||||||
Deferred income taxes | (1,313) | (1,527) | (1,424) | ||||||
Lease assets | 0 | ||||||||
Other long-term assets | (92,185) | (89,731) | (89,048) | ||||||
Total assets | (436,830) | (216,385) | (398,579) | ||||||
Current liabilities: | |||||||||
Accounts payable | (328,381) | (119,253) | (308,107) | ||||||
Accrued liabilities | (14,373) | (5,576) | 441 | ||||||
Short-term debt | 0 | 0 | 0 | ||||||
Current portion of long-term debt, net | 0 | 0 | 0 | ||||||
Total current liabilities | (342,754) | (124,829) | (307,666) | ||||||
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 | 2,854 | 2,834 | 3,094 | ||||||
Shareholders’ equity | (96,930) | (94,390) | (94,007) | ||||||
Total liabilities and shareholders' equity | $ (436,830) | $ (216,385) | $ (398,579) |
Supplemental Consolidating Da_5
Supplemental Consolidating Data - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||||||||
Net income | $ 86,563 | $ 195,631 | $ 127,945 | $ 113,855 | $ 242,338 | $ 174,763 | $ 410,139 | $ 530,956 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 174,609 | 196,461 | ||||||
Amortization of deferred loan origination costs | 57,303 | 61,213 | ||||||
Amortization of financing origination fees | 7,032 | 6,207 | ||||||
Provision for long-term employee benefits | 10,888 | 28,162 | ||||||
Employee benefit plan contributions and payments | (11,166) | (11,035) | ||||||
Stock compensation expense | 25,323 | 29,122 | ||||||
Net change in wholesale finance receivables related to sales | 683 | (18,400) | ||||||
Provision for credit losses | 33,747 | 23,530 | 94,621 | 72,462 | ||||
Deferred income taxes | 3,535 | 1,457 | ||||||
Other, net | 7,839 | 29,340 | ||||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable, net | (7,833) | (14,784) | ||||||
Finance receivables - accrued interest and other | (4,574) | 1,374 | ||||||
Inventories | 62,870 | 8,270 | ||||||
Accounts payable and accrued liabilities | 13,138 | 183,606 | ||||||
Derivative instruments | 2,537 | 1,227 | ||||||
Other | 1,705 | 16,917 | ||||||
Total adjustments | 438,510 | 591,599 | ||||||
Net cash provided by operating activities | 848,649 | 1,122,555 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (121,161) | (119,845) | ||||||
Origination of finance receivables | (3,141,626) | (3,039,160) | ||||||
Collections on finance receivables | 2,695,918 | 2,564,695 | ||||||
Sales and redemptions of marketable securities | 10,007 | 0 | ||||||
Acquisition of business | (7,000) | 0 | ||||||
Other investing activities | 12,388 | (21,753) | ||||||
Net cash used by investing activities | (551,474) | (616,063) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of medium-term notes | 546,655 | 1,144,018 | ||||||
Repayments of medium-term notes | (1,350,000) | (877,488) | ||||||
Proceeds from securitization debt | 1,021,353 | 0 | ||||||
Repayments of securitization debt | (244,250) | (224,507) | ||||||
Borrowings of asset-backed commercial paper | 177,950 | 120,903 | ||||||
Repayments of asset-backed commercial paper | (240,008) | (156,258) | ||||||
Net (decrease) increase in credit facilities and unsecured commercial paper | (120,707) | 102,154 | ||||||
Dividends paid | (179,409) | (186,105) | ||||||
Repurchase of common stock | (217,454) | (195,998) | ||||||
Issuance of common stock under employee stock option plans | 2,180 | 3,157 | ||||||
Net cash used by financing activities | (603,690) | (270,124) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,110) | (12,567) | ||||||
Cash, cash equivalents and restricted cash: | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (310,625) | 223,801 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 1,259,748 | 746,210 | 1,259,748 | 746,210 | ||||
Cash, cash equivalents and restricted cash, end of period | 949,123 | 970,011 | 949,123 | 970,011 | ||||
Motorcycles And Related Products Operations | ||||||||
Cash flows from investing activities: | ||||||||
Acquisition of business | (7,000) | |||||||
Cash flows from financing activities: | ||||||||
Proceeds from securitization debt | 0 | |||||||
Financial Services Operations | ||||||||
Cash flows from investing activities: | ||||||||
Acquisition of business | 0 | |||||||
Cash flows from financing activities: | ||||||||
Proceeds from securitization debt | 1,021,353 | |||||||
Reportable Legal Entities | Motorcycles And Related Products Operations | ||||||||
Cash flows from operating activities: | ||||||||
Net income | 82,705 | 49,462 | 396,320 | 469,370 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 168,013 | 193,289 | ||||||
Amortization of deferred loan origination costs | 0 | 0 | ||||||
Amortization of financing origination fees | 503 | 497 | ||||||
Provision for long-term employee benefits | 10,888 | 28,162 | ||||||
Employee benefit plan contributions and payments | (11,166) | (11,035) | ||||||
Stock compensation expense | 22,869 | 26,122 | ||||||
Net change in wholesale finance receivables related to sales | 0 | 0 | ||||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||||
Deferred income taxes | 5,514 | (2,991) | ||||||
Other, net | 9,126 | 28,426 | ||||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable, net | (216,961) | (169,168) | ||||||
Finance receivables - accrued interest and other | 0 | 0 | ||||||
Inventories | 62,870 | 8,270 | ||||||
Accounts payable and accrued liabilities | 8,729 | 170,001 | ||||||
Derivative instruments | 2,443 | 1,124 | ||||||
Other | (19,516) | 19,411 | ||||||
Total adjustments | 43,312 | 292,108 | ||||||
Net cash provided by operating activities | 439,632 | 761,478 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (118,182) | (110,493) | ||||||
Origination of finance receivables | 0 | 0 | ||||||
Collections on finance receivables | 0 | 0 | ||||||
Sales and redemptions of marketable securities | 10,007 | |||||||
Other investing activities | 12,388 | (21,753) | ||||||
Net cash used by investing activities | (102,787) | (132,246) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of medium-term notes | 0 | 0 | ||||||
Repayments of medium-term notes | 0 | 0 | ||||||
Repayments of securitization debt | 0 | 0 | ||||||
Borrowings of asset-backed commercial paper | 0 | 0 | ||||||
Repayments of asset-backed commercial paper | 0 | 0 | ||||||
Net (decrease) increase in credit facilities and unsecured commercial paper | 0 | 0 | ||||||
Dividends paid | (179,409) | (186,105) | ||||||
Repurchase of common stock | (217,454) | (195,998) | ||||||
Issuance of common stock under employee stock option plans | 2,180 | 3,157 | ||||||
Net cash used by financing activities | (394,683) | (378,946) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,604) | (11,802) | ||||||
Cash, cash equivalents and restricted cash: | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (62,442) | 238,484 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 544,548 | 338,186 | 544,548 | 338,186 | ||||
Cash, cash equivalents and restricted cash, end of period | 482,106 | 576,670 | 482,106 | 576,670 | ||||
Reportable Legal Entities | Financial Services Operations | ||||||||
Cash flows from operating activities: | ||||||||
Net income | 53,999 | 64,462 | 153,905 | 171,801 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 6,596 | 3,172 | ||||||
Amortization of deferred loan origination costs | 57,303 | 61,213 | ||||||
Amortization of financing origination fees | 6,529 | 5,710 | ||||||
Provision for long-term employee benefits | 0 | 0 | ||||||
Employee benefit plan contributions and payments | 0 | 0 | ||||||
Stock compensation expense | 2,454 | 3,000 | ||||||
Net change in wholesale finance receivables related to sales | 0 | 0 | ||||||
Provision for credit losses | 33,747 | 23,530 | 94,621 | 72,462 | ||||
Deferred income taxes | (1,765) | 4,343 | ||||||
Other, net | (1,372) | 699 | ||||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable, net | 0 | 0 | ||||||
Finance receivables - accrued interest and other | (4,574) | 1,374 | ||||||
Inventories | 0 | 0 | ||||||
Accounts payable and accrued liabilities | 207,971 | 152,028 | ||||||
Derivative instruments | 94 | 103 | ||||||
Other | 12,144 | 3,173 | ||||||
Total adjustments | 380,001 | 307,277 | ||||||
Net cash provided by operating activities | 533,906 | 479,078 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (2,979) | (9,352) | ||||||
Origination of finance receivables | (5,757,384) | (5,845,799) | ||||||
Collections on finance receivables | 5,326,787 | 5,363,333 | ||||||
Sales and redemptions of marketable securities | 0 | |||||||
Other investing activities | 0 | 0 | ||||||
Net cash used by investing activities | (433,576) | (491,818) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of medium-term notes | 546,655 | 1,144,018 | ||||||
Repayments of medium-term notes | (1,350,000) | (877,488) | ||||||
Repayments of securitization debt | (244,250) | (224,507) | ||||||
Borrowings of asset-backed commercial paper | 177,950 | 120,903 | ||||||
Repayments of asset-backed commercial paper | (240,008) | (156,258) | ||||||
Net (decrease) increase in credit facilities and unsecured commercial paper | (120,707) | 102,154 | ||||||
Dividends paid | (140,000) | (110,000) | ||||||
Repurchase of common stock | 0 | 0 | ||||||
Issuance of common stock under employee stock option plans | 0 | 0 | ||||||
Net cash used by financing activities | (349,007) | (1,178) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 494 | (765) | ||||||
Cash, cash equivalents and restricted cash: | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (248,183) | (14,683) | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 715,200 | 408,024 | 715,200 | 408,024 | ||||
Cash, cash equivalents and restricted cash, end of period | 467,017 | 393,341 | 467,017 | 393,341 | ||||
Eliminations | ||||||||
Cash flows from operating activities: | ||||||||
Net income | (50,141) | (69) | (140,086) | (110,215) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 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 | 683 | (18,400) | ||||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||||
Deferred income taxes | (214) | 105 | ||||||
Other, net | 85 | 215 | ||||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable, net | 209,128 | 154,384 | ||||||
Finance receivables - accrued interest and other | 0 | 0 | ||||||
Inventories | 0 | 0 | ||||||
Accounts payable and accrued liabilities | (203,562) | (138,423) | ||||||
Derivative instruments | 0 | 0 | ||||||
Other | 9,077 | (5,667) | ||||||
Total adjustments | 15,197 | (7,786) | ||||||
Net cash provided by operating activities | (124,889) | (118,001) | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | 0 | 0 | ||||||
Origination of finance receivables | 2,615,758 | 2,806,639 | ||||||
Collections on finance receivables | (2,630,869) | (2,798,638) | ||||||
Sales and redemptions of marketable securities | 0 | |||||||
Acquisition of business | 0 | |||||||
Other investing activities | 0 | 0 | ||||||
Net cash used by investing activities | (15,111) | 8,001 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of medium-term notes | 0 | 0 | ||||||
Repayments of medium-term notes | 0 | 0 | ||||||
Proceeds from securitization debt | 0 | |||||||
Repayments of securitization debt | 0 | 0 | ||||||
Borrowings of asset-backed commercial paper | 0 | 0 | ||||||
Repayments of asset-backed commercial paper | 0 | 0 | ||||||
Net (decrease) increase in credit facilities and unsecured commercial paper | 0 | 0 | ||||||
Dividends paid | 140,000 | 110,000 | ||||||
Repurchase of common stock | 0 | 0 | ||||||
Issuance of common stock under employee stock option plans | 0 | 0 | ||||||
Net cash used by financing activities | 140,000 | 110,000 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||||||
Cash, cash equivalents and restricted cash: | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | $ 0 | $ 0 | 0 | 0 | ||||
Cash, cash equivalents and restricted cash, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Uncategorized Items - hog-09292
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,024,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,024,000 |