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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Harley Davidson Inc | NYSE:HOG | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.90 | 2.56% | 36.08 | 36.37 | 35.54 | 35.68 | 1,613,491 | 21:19:49 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Wisconsin | 39-1382325 | ||||||||||
(State of organization) | (I.R.S. Employer Identification No.) | ||||||||||
3700 West Juneau Avenue | Milwaukee | Wisconsin | 53208 | ||||||||
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock Par value, $.01 per share | HOG | New York Stock Exchange |
Large accelerated filer |
☒
|
Accelerated filer | ☐ | Emerging growth company | ☐ | |||||||||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
U.S. | Canada | EMEA | Asia Pacific | Latin America | Total | ||||||||||||||||||||||||||||||
Independent dealership points | 630 | 51 | 369 | 282 | 47 | 1,379 | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Motorcycles | 72.0 | % | 77.4 | % | 78.1 | % | |||||||||||
Parts & Accessories | 20.2 | % | 15.6 | % | 15.2 | % | |||||||||||
General Merchandise | 5.7 | % | 5.2 | % | 4.9 | % | |||||||||||
Licensing | 0.9 | % | 0.8 | % | 0.8 | % | |||||||||||
Other products and services | 1.2 | % | 1.0 | % | 1.0 | % | |||||||||||
100.0 | % | 100.0 | % | 100.0 | % |
2020 | 2019 | 2018 | |||||||||||||||
Industry new motorcycle registrations | 241,792 | 252,842 | 263,750 | ||||||||||||||
Harley-Davidson new motorcycle registrations | 101,744 | 124,040 | 131,064 | ||||||||||||||
Harley-Davidson U.S. market share | 42.1 | % | 49.1 | % | 49.7 | % |
2020 | 2019 | 2018 | |||||||||||||||
Industry new motorcycle registrations | 411,079 | 413,254 | 405,304 | ||||||||||||||
Harley-Davidson new motorcycle registrations | 31,547 | 37,619 | 41,004 | ||||||||||||||
Harley-Davidson European market share | 7.7 | % | 9.1 | % | 10.1 | % |
Type of Facility | Location | Status | ||||||||||||||||||
Motorcycle and Related Products: | ||||||||||||||||||||
Corporate office | Milwaukee, WI | Owned | ||||||||||||||||||
Product development center | Wauwatosa, WI | Owned | ||||||||||||||||||
Manufacturing(a)
|
Menomonee Falls, WI | Owned | ||||||||||||||||||
Manufacturing(b)
|
Tomahawk, WI | Owned | ||||||||||||||||||
Manufacturing(c)
|
York, PA | Owned | ||||||||||||||||||
Manufacturing(d)
|
Rayong, Thailand | Owned | ||||||||||||||||||
Manufacturing(e)
|
Manaus, Brazil | Leased | ||||||||||||||||||
Financial Services: | ||||||||||||||||||||
Corporate office | Chicago, IL | Leased | ||||||||||||||||||
Wholesale and retail operations office | Plano, TX | Leased | ||||||||||||||||||
Retail operations office(f)
|
2020 Fiscal Month |
Total Number of
Shares Purchased |
Average Price
Paid per Share |
Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number of
Shares that May Yet Be Purchased Under the Plans or Programs |
|||||||||||||||||||
September 28 to November 1 | 738 | $ | 24 | 738 | 18,246,721 | ||||||||||||||||||
November 2 to November 29 | 556 | $ | 33 | 556 | 18,246,721 | ||||||||||||||||||
November 30 to December 31 | 1,849 | $ | 40 | 1,849 | 18,246,721 | ||||||||||||||||||
3,143 | $ | 35 | 3,143 |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||
Harley-Davidson, Inc. | $ | 100 | $ | 132 | $ | 119 | $ | 83 | $ | 94 | $ | 94 | |||||||||||||||||||||||
S&P MidCap 400 Index | $ | 100 | $ | 121 | $ | 140 | $ | 125 | $ | 157 | $ | 179 | |||||||||||||||||||||||
(in thousands, except earnings per share) | 2020 | 2019 |
(Decrease)
Increase |
% Change | |||||||||||||||||||
Operating (loss) income from Motorcycles and Related Products | $ | (186,122) | $ | 289,620 | $ | (475,742) | NM | ||||||||||||||||
Operating income from Financial Services | 195,801 | 265,988 | (70,187) | (26.4) | |||||||||||||||||||
Operating income | 9,679 | 555,608 | (545,929) | (98.3) | |||||||||||||||||||
Other (expense) income, net | (1,848) | 16,514 | (18,362) | NM | |||||||||||||||||||
Investment income | 7,560 | 16,371 | (8,811) | (53.8) | |||||||||||||||||||
Interest expense | 31,121 | 31,078 | 43 | 0.1 | |||||||||||||||||||
(Loss) income before income taxes | (15,730) | 557,415 | (573,145) | NM | |||||||||||||||||||
Income tax (benefit) provision | (17,028) | 133,780 | (150,808) | NM | |||||||||||||||||||
Net income | $ | 1,298 | $ | 423,635 | $ | (422,337) | (99.7) | % | |||||||||||||||
Diluted earnings per share | $ | 0.01 | $ | 2.68 | $ | (2.67) | (99.6) | % |
2020 | 2019 | Decrease | % Change | ||||||||||||||||||||
United States | 103,650 | 125,960 | (22,310) | (17.7) | % | ||||||||||||||||||
Canada | 6,477 | 8,946 | (2,469) | (27.6) | |||||||||||||||||||
Total North America | 110,127 | 134,906 | (24,779) | (18.4) | |||||||||||||||||||
Europe/Middle East/Africa (EMEA) | 36,906 | 44,086 | (7,180) | (16.3) | |||||||||||||||||||
Asia Pacific | 27,220 | 29,513 | (2,293) | (7.8) | |||||||||||||||||||
Latin America | 5,995 | 9,768 | (3,773) | (38.6) | |||||||||||||||||||
Total worldwide retail sales | 180,248 | 218,273 | (38,025) | (17.4) | % |
2020 | 2019 | Decrease | % Change | ||||||||||||||||||||
United States(b)
|
241,792 | 252,842 | (11,050) | (4.4) | % | ||||||||||||||||||
Europe(c)
|
411,079 | 413,254 | (2,175) | (0.5) | % |
2020 | 2019 | Unit | Unit | ||||||||||||||||||||||||||||||||
Units | Mix % | Units | Mix % | Decrease | % Change | ||||||||||||||||||||||||||||||
Motorcycle Units: | |||||||||||||||||||||||||||||||||||
United States | 79,731 | 54.9 | % | 124,326 | 58.1 | % | (44,595) | (35.9) | % | ||||||||||||||||||||||||||
International | 65,515 | 45.1 | % | 89,613 | 41.9 | % | (24,098) | (26.9) | |||||||||||||||||||||||||||
145,246 | 100.0 | % | 213,939 | 100.0 | % | (68,693) | (32.1) | % | |||||||||||||||||||||||||||
Motorcycle Units: | |||||||||||||||||||||||||||||||||||
Touring motorcycle units | 56,067 | 38.6 | % | 91,018 | 42.5 | % | (34,951) | (38.4) | % | ||||||||||||||||||||||||||
Cruiser motorcycle units(a)
|
55,229 | 38.0 | % | 76,052 | 35.6 | % | (20,823) | (27.4) | |||||||||||||||||||||||||||
Sportster® / Street motorcycle units
|
33,950 | 23.4 | % | 46,869 | 21.9 | % | (12,919) | (27.6) | |||||||||||||||||||||||||||
145,246 | 100.0 | % | 213,939 | 100.0 | % | (68,693) | (32.1) | % |
2020 | 2019 |
(Decrease)
Increase |
%
Change |
||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles | $ | 2,350,407 | $ | 3,538,269 | $ | (1,187,862) | (33.6) | % | |||||||||||||||
Parts & Accessories | 659,634 | 713,400 | (53,766) | (7.5) | |||||||||||||||||||
General Merchandise | 186,068 | 237,566 | (51,498) | (21.7) | |||||||||||||||||||
Licensing | 29,750 | 35,917 | (6,167) | (17.2) | |||||||||||||||||||
Other | 38,195 | 47,526 | (9,331) | (19.6) | |||||||||||||||||||
3,264,054 | 4,572,678 | (1,308,624) | (28.6) | ||||||||||||||||||||
Cost of goods sold | 2,435,745 | 3,229,798 | (794,053) | (24.6) | |||||||||||||||||||
Gross profit | 828,309 | 1,342,880 | (514,571) | (38.3) | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling & administrative expense | 697,483 | 808,415 | (110,932) | (13.7) | |||||||||||||||||||
Engineering expense | 197,838 | 212,492 | (14,654) | (6.9) | |||||||||||||||||||
Restructuring expense | 119,110 | 32,353 | 86,757 | 268.2 | |||||||||||||||||||
1,014,431 | 1,053,260 | (38,829) | (3.7) | ||||||||||||||||||||
Operating (loss) income | $ | (186,122) | $ | 289,620 | $ | (475,742) | NM | ||||||||||||||||
Operating margin | (5.7) | % | 6.3 | % | (12.0) | pts. |
Revenue | Cost of Goods Sold | Gross Profit | |||||||||||||||
2019 | $ | 4,573 | $ | 3,230 | $ | 1,343 | |||||||||||
Volume | (1,282) | (832) | (450) | ||||||||||||||
Price, net of related costs | 55 | 7 | 48 | ||||||||||||||
Foreign currency exchange rates and hedging | (11) | 23 | (34) | ||||||||||||||
Shipment mix | (71) | (7) | (64) | ||||||||||||||
Raw material prices | — | (10) | 10 | ||||||||||||||
Manufacturing and other costs | — | 25 | (25) | ||||||||||||||
(1,309) | (794) | (515) | |||||||||||||||
2020 | $ | 3,264 | $ | 2,436 | $ | 828 |
2020 | 2019 | ||||||||||
Balance, beginning of period | $ | 198,581 | $ | 189,885 | |||||||
Cumulative effect of change in accounting(a)
|
100,604 | — | |||||||||
Provision for credit losses | 181,870 | 134,536 | |||||||||
Charge-offs, net of recoveries | (90,119) | (125,840) | |||||||||
Balance, end of period | $ | 390,936 | $ | 198,581 |
Amounts based
on current assumptions |
Impact of a 1%
decrease in the discount rate |
Impact of a 1%
increase in the healthcare cost trend rate |
Impact of a 1%
decrease in the expected return on assets |
||||||||||||||||||||
2020 Net periodic benefit cost: | |||||||||||||||||||||||
Pension and SERPA | $ | 33,016 | $ | 31,108 | n/a | $ | 20,164 | ||||||||||||||||
Postretirement healthcare | $ | 5,393 | $ | (843) | $ | 435 | $ | 1,985 | |||||||||||||||
2020 Benefit obligations: | |||||||||||||||||||||||
Pension and SERPA | $ | 2,390,435 | $ | 393,880 | n/a | n/a | |||||||||||||||||
Postretirement healthcare | $ | 315,245 | $ | 28,651 | $ | 8,295 | n/a |
Cash and cash equivalents | $ | 3,257,203 | |||
Availability under credit and conduit facilities: | |||||
Credit facilities | 750,726 | ||||
Asset-backed U.S. commercial paper conduit facility(a)
|
600,000 | ||||
Asset-backed Canadian commercial paper conduit facility(a)
|
55,980 | ||||
$ | 4,663,909 |
Short-Term | Long-Term | Outlook | |||||||||||||||
Moody’s | P3 | Baa3 | Stable | ||||||||||||||
Standard & Poor’s | A2 | BBB | Negative | ||||||||||||||
Fitch | F2 | A- | Negative |
2020 | 2019 | ||||||||||||||||
Net cash provided by operating activities | $ | 1,177,890 | $ | 868,272 | |||||||||||||
Net cash used by investing activities | (66,783) | (508,126) | |||||||||||||||
Net cash provided (used) by financing activities | 1,373,983 | (712,223) | |||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18,712 | (2,305) | |||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 2,503,802 | $ | (354,382) |
2020 | 2019 | ||||||||||||||||
Outstanding debt: | |||||||||||||||||
Unsecured commercial paper | $ | 1,014,274 | $ | 571,995 | |||||||||||||
Asset-backed Canadian commercial paper conduit facility | 116,678 | 114,693 | |||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | 402,205 | 490,427 | |||||||||||||||
Asset-backed securitization debt, net | 1,791,956 | 764,392 | |||||||||||||||
Medium-term notes, net | 4,917,714 | 4,760,127 | |||||||||||||||
Senior notes, net | 743,977 | 743,296 | |||||||||||||||
$ | 8,986,804 | $ | 7,444,930 | ||||||||||||||
Deposits | $ | 79,965 | $ | — |
Principal Amount | Rate | Issue Date | Maturity Date | |||||||||||||||||
$600,000 | 2.85% | January 2016 | January 2021 | |||||||||||||||||
$450,000 | LIBOR + 0.94% | November 2018 | March 2021 | |||||||||||||||||
$350,000 | 3.55% | May 2018 | May 2021 | |||||||||||||||||
$550,000 | 4.05% | February 2019 | February 2022 | |||||||||||||||||
$400,000 | 2.55% | June 2017 | June 2022 | |||||||||||||||||
$350,000 | 3.35% | February 2018 | February 2023 | |||||||||||||||||
$797,206(a)
|
4.94% | May 2020 | May 2023 | |||||||||||||||||
$735,882(b)
|
3.14% | November 2019 | November 2024 | |||||||||||||||||
$700,000 | 3.35% | June 2020 | June 2025 |
Page | |||||
Allowance for Credit Losses - Retail Finance Receivables | |||||
Description of the Matter |
The Company’s retail receivable portfolio totaled $6.3 billion as of December 31, 2020, and the associated allowance for credit losses (ACL) was $371.7 million. As discussed above and in Notes 1 and 7 to the consolidated financial statements, effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which requires the Company to recognize expected lifetime losses on finance receivables held at amortized cost, upon origination. Upon adoption, the Company increased its ACL by $100.6 million and reduced retained earnings net, of deferred taxes, by $78.2 million through a cumulative-effect adjustment. The Company utilizes a vintage-based loss forecast methodology to measure the expected retail finance receivables credit losses. Economic forecasts for a two-year period are incorporated into the methodology to reflect the estimated impact of changes in future economic conditions. To establish the economic forecasts, management considers various third-party economic forecast scenarios and applies a probability-weighting to those economic forecast scenarios. For periods beyond the Company’s incorporated economic forecasts, the Company reverts to its average historical loss experience using a mean-reversion process over a three-year period. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or term as well as other relevant factors.
Auditing management’s estimate of the ACL for retail finance receivables was especially challenging due to the complexity of management’s retail receivables loss forecasting models and subjective management assumptions applied in determining the probability-weighting of its economic forecasts.
|
||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the ACL process. These procedures included testing controls over management’s review of key assumptions such as the economic forecasts, the development and operation of the ACL models, and the completeness and accuracy of key inputs and assumptions used in the ACL models.
To test the ACL, our audit procedures included, among others, evaluating the Company’s loss forecasting models, the economic forecasts prepared by management, and the underlying data used in the models. We involved our internal specialists in evaluating the model methodology and model performance and tested key modeling assumptions. We evaluated management’s judgments in probability-weighting different third-party economic forecast scenarios and compared management’s economic forecasts to other available information for contrary or corroborative evidence. Additionally, we tested the accuracy of data utilized within the models and re-performed the model calculations for a sample of loans. In addition, we reviewed the Company’s historical loss statistics, peer information, and subsequent events and considered whether this information corroborates or contradicts management’s measurement of the ACL.
|
Restructuring activities | |||||
Description of the Matter |
The Company recorded $130.0 million of restructuring expenses during the year ended December 31, 2020. As discussed in Note 3 to the consolidated financial statements, restructuring activities included a workforce reduction, the termination of certain products, facility changes, optimizing the global independent dealer network, exiting certain international markets, and discontinuing the sales and manufacturing operations in India. These actions resulted in restructuring expenses that included employee termination costs, contract termination costs and non-current asset adjustments. The Company’s liability for accrued restructuring expenses was $23.9 million as of December 31, 2020.
Auditing the Company’s restructuring expenses was complex due to the comprehensive scope of the different actions taken which required management to assess the timing of recognition of the costs associated with these actions. In addition, determining the classification and disclosure of restructuring expenses in the consolidated financial statement required the Company to maintain detailed record-keeping of the various restructuring activities.
|
||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the restructuring process. These procedures included testing controls over authorization of the significant restructuring actions, management’s review and assessment of the accounting treatment and timing of recognition for significant actions, and the Company’s review of the presentation and disclosure of restructuring activities.
To test the restructuring costs and year-end restructuring liability, our audit procedures included, among others, gaining an understanding of approved restructuring actions and evaluating the accounting treatment and timing of recognition for significant actions. In addition, we tested the Company’s computation of restructuring expenses and year-end liability, reviewed a sample of contracts and settlement agreements, and tested cash payments made related to the restructuring actions. We also tested the presentation and disclosure of the restructuring expenses in the consolidated financial statements.
|
2020 | 2019 | 2018 | |||||||||||||||
Revenue: | |||||||||||||||||
Motorcycles and Related Products | $ | 3,264,054 | $ | 4,572,678 | $ | 4,968,646 | |||||||||||
Financial Services | 790,323 | 789,111 | 748,229 | ||||||||||||||
4,054,377 | 5,361,789 | 5,716,875 | |||||||||||||||
Costs and expenses: | |||||||||||||||||
Motorcycles and Related Products cost of goods sold | 2,435,745 | 3,229,798 | 3,351,796 | ||||||||||||||
Financial Services interest expense | 246,447 | 210,438 | 193,187 | ||||||||||||||
Financial Services provision for credit losses | 181,870 | 134,536 | 106,870 | ||||||||||||||
Selling, administrative and engineering expense | 1,050,627 | 1,199,056 | 1,258,098 | ||||||||||||||
Restructuring expense | 130,009 | 32,353 | 93,401 | ||||||||||||||
4,044,698 | 4,806,181 | 5,003,352 | |||||||||||||||
Operating income | 9,679 | 555,608 | 713,523 | ||||||||||||||
Other (expense) income, net | (1,848) | 16,514 | 3,039 | ||||||||||||||
Investment income | 7,560 | 16,371 | 951 | ||||||||||||||
Interest expense | 31,121 | 31,078 | 30,884 | ||||||||||||||
(Loss) income before income taxes | (15,730) | 557,415 | 686,629 | ||||||||||||||
Income tax (benefit) provision | (17,028) | 133,780 | 155,178 | ||||||||||||||
Net income | $ | 1,298 | $ | 423,635 | $ | 531,451 | |||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.01 | $ | 2.70 | $ | 3.21 | |||||||||||
Diluted | $ | 0.01 | $ | 2.68 | $ | 3.19 | |||||||||||
Cash dividends per share | $ | 0.44 | $ | 1.50 | $ | 1.48 |
2020 | 2019 | 2018 | |||||||||||||||
Net income | $ | 1,298 | $ | 423,635 | $ | 531,451 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments | 33,224 | 8,795 | (25,010) | ||||||||||||||
Derivative financial instruments | (31,530) | (16,371) | 20,009 | ||||||||||||||
Pension and postretirement benefit plans | 51,838 | 100,311 | (16,286) | ||||||||||||||
53,532 | 92,735 | (21,287) | |||||||||||||||
Comprehensive income | $ | 54,830 | $ | 516,370 | $ | 510,164 |
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 3,257,203 | $ | 833,868 | |||||||
Accounts receivable, net | 143,082 | 259,334 | |||||||||
Finance receivables, net of allowance of $72,632 and $43,006
|
1,509,539 | 2,272,522 | |||||||||
Inventories, net | 523,497 | 603,571 | |||||||||
Restricted cash | 131,642 | 64,554 | |||||||||
Other current assets | 280,470 | 168,974 | |||||||||
5,845,433 | 4,202,823 | ||||||||||
Finance receivables, net of allowance of $318,304 and $155,575
|
4,933,469 | 5,101,844 | |||||||||
Property, plant and equipment, net | 743,784 | 847,382 | |||||||||
Pension and postretirement assets | 95,711 | 56,014 | |||||||||
Goodwill | 65,976 | 64,160 | |||||||||
Deferred income taxes | 158,538 | 101,204 | |||||||||
Lease assets | 45,203 | 61,618 | |||||||||
Other long-term assets | 122,487 | 93,114 | |||||||||
$ | 12,010,601 | $ | 10,528,159 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 290,904 | $ | 294,380 | |||||||
Accrued liabilities | 557,214 | 582,288 | |||||||||
Deposits | 79,965 | — | |||||||||
Short-term debt | 1,014,274 | 571,995 | |||||||||
Current portion of long-term debt, net | 2,039,597 | 1,748,109 | |||||||||
3,981,954 | 3,196,772 | ||||||||||
Long-term debt, net | 5,932,933 | 5,124,826 | |||||||||
Lease liabilities | 30,115 | 44,447 | |||||||||
Pension and postretirement liabilities | 114,206 | 128,651 | |||||||||
Deferred income taxes | 8,607 | 8,135 | |||||||||
Other long-term liabilities | 220,001 | 221,329 | |||||||||
Commitments and contingencies (Note 16) | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, none issued
|
— | — | |||||||||
Common stock (Note 5) | 1,685 | 1,828 | |||||||||
Additional paid-in-capital | 1,507,706 | 1,491,004 | |||||||||
Retained earnings | 1,284,823 | 2,193,997 | |||||||||
Accumulated other comprehensive loss | (483,417) | (536,949) | |||||||||
Treasury stock, at cost (Note 5) | (588,012) | (1,345,881) | |||||||||
1,722,785 | 1,803,999 | ||||||||||
$ | 12,010,601 | $ | 10,528,159 |
2020 | 2019 | ||||||||||
Balances held by consolidated variable interest entities (Note 12) | |||||||||||
Finance receivables, net - current | $ | 530,882 | $ | 291,444 | |||||||
Other assets | $ | 3,753 | $ | 2,420 | |||||||
Finance receivables, net - non-current | $ | 1,889,472 | $ | 1,027,179 | |||||||
Restricted cash - current and non-current | $ | 142,892 | $ | 63,812 | |||||||
Current portion of long-term debt, net | $ | 608,987 | $ | 317,607 | |||||||
Long-term debt, net | $ | 1,585,174 | $ | 937,212 |
2020 | 2019 | 2018 | |||||||||||||||
Net cash provided by operating activities (Note 6) | $ | 1,177,890 | $ | 868,272 | $ | 1,205,921 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||
Capital expenditures | (131,050) | (181,440) | (213,516) | ||||||||||||||
Origination of finance receivables | (3,497,486) | (3,847,322) | (3,752,817) | ||||||||||||||
Collections on finance receivables | 3,540,289 | 3,499,717 | 3,325,669 | ||||||||||||||
Purchases of marketable securities | — | — | (10,007) | ||||||||||||||
Sales and redemptions of marketable securities | — | 10,007 | — | ||||||||||||||
Acquisition of business | — | (7,000) | — | ||||||||||||||
Other investing activities | 21,464 | 17,912 | (11,598) | ||||||||||||||
Net cash used by investing activities | (66,783) | (508,126) | (662,269) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from issuance of medium-term notes | 1,396,602 | 1,203,236 | 1,591,828 | ||||||||||||||
Repayments of medium-term notes | (1,400,000) | (1,350,000) | (877,488) | ||||||||||||||
Proceeds from securitization debt | 2,064,450 | 1,021,453 | — | ||||||||||||||
Repayments of securitization debt | (1,041,751) | (353,251) | (257,869) | ||||||||||||||
Borrowings of asset-backed commercial paper | 225,187 | 177,950 | 509,742 | ||||||||||||||
Repayments of asset-backed commercial paper | (318,828) | (318,006) | (212,729) | ||||||||||||||
Net increase (decrease) in unsecured commercial paper | 444,380 | (563,453) | (135,356) | ||||||||||||||
Deposits | 79,947 | — | — | ||||||||||||||
Dividends paid | (68,087) | (237,221) | (245,810) | ||||||||||||||
Repurchase of common stock | (8,006) | (296,520) | (390,606) | ||||||||||||||
Issuance of common stock under share-based plans | 89 | 3,589 | 3,525 | ||||||||||||||
Net cash provided (used) by financing activities | 1,373,983 | (712,223) | (14,763) | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18,712 | (2,305) | (15,351) | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 2,503,802 | $ | (354,382) | $ | 513,538 | |||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ | 905,366 | $ | 1,259,748 | $ | 746,210 | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,503,802 | (354,382) | 513,538 | ||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 3,409,168 | $ | 905,366 | $ | 1,259,748 | |||||||||||
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: | |||||||||||||||||
Cash and cash equivalents | $ | 3,257,203 | $ | 833,868 | $ | 1,203,766 | |||||||||||
Restricted cash | 131,642 | 64,554 | 49,275 | ||||||||||||||
Restricted cash included in Other long-term assets | 20,323 | 6,944 | 6,707 | ||||||||||||||
Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows | $ | 3,409,168 | $ | 905,366 | $ | 1,259,748 |
Common Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Loss |
Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||
Issued
Shares |
Balance | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 181,286,547 | $ | 1,813 | $ | 1,422,808 | $ | 1,607,570 | $ | (500,049) | $ | (687,865) | $ | 1,844,277 | ||||||||||||||||||||||||||||
Net income | — | — | — | 531,451 | — | — | 531,451 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax (Note 18) | — | — | — | — | (21,287) | — | (21,287) | ||||||||||||||||||||||||||||||||||
Dividends ($1.48 per share)
|
— | — | — | (245,810) | — | — | (245,810) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (390,606) | (390,606) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 644,678 | 6 | 36,812 | — | — | 13,082 | 49,900 | ||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting | — | — | — | 6,024 | — | — | 6,024 | ||||||||||||||||||||||||||||||||||
Reclassification of certain tax effects | — | — | — | 108,348 | (108,348) | — | — | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 181,931,225 | 1,819 | 1,459,620 | 2,007,583 | (629,684) | (1,065,389) | 1,773,949 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | 423,635 | — | — | 423,635 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 18) | — | — | — | — | 92,735 | — | 92,735 | ||||||||||||||||||||||||||||||||||
Dividends ($1.50 per share)
|
— | — | — | (237,221) | — | — | (237,221) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (296,520) | (296,520) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 885,311 | 9 | 31,384 | — | — | 16,028 | 47,421 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 182,816,536 | 1,828 | 1,491,004 | 2,193,997 | (536,949) | (1,345,881) | 1,803,999 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | 1,298 | — | — | 1,298 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 18) | — | — | — | — | 53,532 | — | 53,532 | ||||||||||||||||||||||||||||||||||
Dividends ($0.44 per share)
|
— | — | — | (68,087) | — | — | (68,087) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (8,006) | (8,006) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 686,990 | 7 | 16,702 | — | — | 1,569 | 18,278 | ||||||||||||||||||||||||||||||||||
Retirement of treasury stock | (15,000,000) | (150) | — | (764,156) | — | 764,306 | — | ||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting | — | — | — | (78,229) | — | — | (78,229) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 168,503,526 | $ | 1,685 | $ | 1,507,706 | $ | 1,284,823 | $ | (483,417) | $ | (588,012) | $ | 1,722,785 |
December 31, 2019 | Effect of Adoption | January 1, 2020 | |||||||||||||||
ASSETS | |||||||||||||||||
Finance receivables(a)
|
$ | 7,572,947 | $ | — | $ | 7,572,947 | |||||||||||
Allowance for credit losses on finance receivables(a)
|
$ | (198,581) | $ | (100,604) | $ | (299,185) | |||||||||||
Deferred income taxes | $ | 101,204 | $ | 22,484 | $ | 123,688 | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Accrued liabilities | $ | 582,288 | $ | 109 | $ | 582,397 | |||||||||||
Retained earnings | $ | 2,193,997 | $ | (78,229) | $ | 2,115,768 |
2020 | 2019 | ||||||||||
Motorcycles and Related Products: | |||||||||||
Motorcycles | $ | 2,350,407 | $ | 3,538,269 | |||||||
Parts & Accessories | 659,634 | 713,400 | |||||||||
General Merchandise | 186,068 | 237,566 | |||||||||
Licensing | 29,750 | 35,917 | |||||||||
Other | 38,195 | 47,526 | |||||||||
3,264,054 | 4,572,678 | ||||||||||
Financial Services: | |||||||||||
Interest income | 682,517 | 678,205 | |||||||||
Other | 107,806 | 110,906 | |||||||||
790,323 | 789,111 | ||||||||||
$ | 4,054,377 | $ | 5,361,789 |
2020 | 2019 | ||||||||||
Balance, beginning of period | $ | 29,745 | $ | 29,055 | |||||||
Balance, end of period | 36,614 | 29,745 |
2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Employee Termination Benefits |
Contract Terminations
& Other |
Non-Current Asset Adjustments | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Restructuring expense | 28,913 | 70,894 | 30,202 | 130,009 | |||||||||||||||||||||||||||||||||||||||||||
Utilized – cash
|
(21,494) | (54,773) | — | (76,267) | |||||||||||||||||||||||||||||||||||||||||||
Utilized – non cash
|
— | — | (30,202) | (30,202) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency changes | 305 | 75 | — | 380 | |||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 7,724 | $ | 16,196 |
|
$ | — | $ | 23,920 |
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 | 15 | 14,684 | 17,971 | 32,670 | (317) | 32,353 | |||||||||||||||||||||||||||||
Utilized - cash | (24,102) | — | (16,950) | (41,052) | (3,118) | (44,170) | |||||||||||||||||||||||||||||
Utilized - non cash | — | (14,684) | (1,094) | (15,778) | — | (15,778) | |||||||||||||||||||||||||||||
Foreign currency changes | (6) | — | (4) | (10) | (26) | (36) | |||||||||||||||||||||||||||||
Balance, end of period | $ | 865 | $ | — | $ | 2 | $ | 867 | $ | — | $ | 867 | |||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||
Manufacturing Optimization Plan | Reorganization Plan | ||||||||||||||||||||||||||||||||||
Employee Termination Benefits | Accelerated Depreciation | Other | Total | Employee Termination Benefits | Total | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Restructuring expense | 38,666 | 34,654 | 16,182 | 89,502 | 3,899 | 93,401 | |||||||||||||||||||||||||||||
Utilized - cash | (13,060) | — | (16,095) | (29,155) | (444) | (29,599) | |||||||||||||||||||||||||||||
Utilized - non cash | — | (34,654) | — | (34,654) | — | (34,654) | |||||||||||||||||||||||||||||
Foreign currency changes | (648) | — | (8) | (656) | 6 | (650) | |||||||||||||||||||||||||||||
Balance, end of period | $ | 24,958 | $ | — | $ | 79 | $ | 25,037 | $ | 3,461 | $ | 28,498 |
2020 | 2019 | 2018 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 4,877 | $ | 82,484 | $ | 136,202 | |||||||||||
State | 2,614 | 6,421 | 23,134 | ||||||||||||||
Foreign | 19,560 | 23,328 | 29,823 | ||||||||||||||
27,051 | 112,233 | 189,159 | |||||||||||||||
Deferred: | |||||||||||||||||
Federal | (30,779) | 18,760 | (23,181) | ||||||||||||||
State | (11,579) | 402 | (6,787) | ||||||||||||||
Foreign | (1,721) | 2,385 | (4,013) | ||||||||||||||
(44,079) | 21,547 | (33,981) | |||||||||||||||
$ | (17,028) | $ | 133,780 | $ | 155,178 |
2020 | 2019 | 2018 | |||||||||||||||
Domestic | $ | (81,522) | $ | 465,798 | $ | 593,099 | |||||||||||
Foreign | 65,792 | 91,617 | 93,530 | ||||||||||||||
$ | (15,730) | $ | 557,415 | $ | 686,629 |
2020 | 2019 | 2018 | |||||||||||||||
(Benefit) provision at statutory rate | $ | (3,303) | $ | 117,057 | $ | 144,192 | |||||||||||
State taxes, net of federal benefit | 822 | 14,165 | 18,086 | ||||||||||||||
Foreign rate differential | 60 | 1,665 | 2,712 | ||||||||||||||
Foreign derived intangible income | — | (3,108) | (8,400) | ||||||||||||||
Research and development credit | (8,442) | (8,200) | (7,400) | ||||||||||||||
Unrecognized tax benefits including interest and penalties | (8,567) | 289 | (4,121) | ||||||||||||||
Valuation allowance adjustments | 9,675 | 8,070 | 908 | ||||||||||||||
State credits | (13,106) | (4,704) | — | ||||||||||||||
Deferred tax balance remeasurement for rate change | — | — | (8,098) | ||||||||||||||
Territorial tax | — | — | 9,556 | ||||||||||||||
Global intangible low-taxed income | 1,480 | 1,113 | 2,437 | ||||||||||||||
Adjustments for previously accrued taxes | (4,951) | (1,755) | (7,196) | ||||||||||||||
Rate differential on intercompany transfers | — | — | 6,013 | ||||||||||||||
Executive compensation limitation | 2,543 | 2,620 | 3,171 | ||||||||||||||
Other foreign inclusions | 4,415 | 4,202 | 1,787 | ||||||||||||||
Other | 2,346 | 2,366 | 1,531 | ||||||||||||||
Income tax (benefit) provision | $ | (17,028) | $ | 133,780 | $ | 155,178 |
2020 | 2019 | ||||||||||
Deferred income tax assets: | |||||||||||
Accruals not yet tax deductible | $ | 142,100 | $ | 95,746 | |||||||
Pension and postretirement healthcare plan obligations | 6,499 | 17,685 | |||||||||
Stock compensation | 9,619 | 11,867 | |||||||||
Net operating loss and credit carryforwards | 55,857 | 45,279 | |||||||||
Valuation allowance | (38,072) | (29,024) | |||||||||
Other | 78,051 | 64,833 | |||||||||
254,054 | 206,386 | ||||||||||
Deferred income tax liabilities: | |||||||||||
Depreciation, tax in excess of book | (74,579) | (83,477) | |||||||||
Other | (29,544) | (29,840) | |||||||||
(104,123) | (113,317) | ||||||||||
$ | 149,931 | $ | 93,069 |
Year of Expiration | 2020 | |||||||||||||
2031 | $ | 252,142 | ||||||||||||
2033 | 49 | |||||||||||||
2034 | 2,455 | |||||||||||||
2035 | 7,800 | |||||||||||||
2038 | 3,992 | |||||||||||||
2039 | 11,710 | |||||||||||||
2040 | 29,836 | |||||||||||||
Indefinite | 9,449 | |||||||||||||
$ | 317,433 |
2020 | 2019 | ||||||||||
Unrecognized tax benefits, beginning of period | $ | 60,112 | $ | 61,411 | |||||||
Increase in unrecognized tax benefits for tax positions taken in a prior period | 1,649 | 1,067 | |||||||||
Decrease in unrecognized tax benefits for tax positions taken in a prior period | (12,560) | (5,608) | |||||||||
Increase in unrecognized tax benefits for tax positions taken in the current period | 3,092 | 4,576 | |||||||||
Statute lapses | — | (325) | |||||||||
Settlements with taxing authorities | (1,696) | (1,009) | |||||||||
Unrecognized tax benefits, end of period | $ | 50,597 | $ | 60,112 |
2020 | 2019 | ||||||||||
Common stock shares: | |||||||||||
Authorized | 800,000,000 | 800,000,000 | |||||||||
Issued | 168,503,526 | 182,816,536 | |||||||||
Outstanding | 152,930,740 | 152,468,442 | |||||||||
Treasury stock shares | 15,572,786 | 30,348,094 |
2020 | 2019 | 2018 | |||||||||||||||
Net income | $ | 1,298 | $ | 423,635 | $ | 531,451 | |||||||||||
Basic weighted-average shares outstanding | 153,186 | 157,054 | 165,672 | ||||||||||||||
Effect of dilutive securities – employee stock compensation plan | 722 | 750 | 832 | ||||||||||||||
Diluted weighted-average shares outstanding | 153,908 | 157,804 | 166,504 | ||||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.01 | $ | 2.70 | $ | 3.21 | |||||||||||
Diluted | $ | 0.01 | $ | 2.68 | $ | 3.19 |
2020 | 2019 | ||||||||||
Mutual funds | $ | 52,061 | $ | 52,575 | |||||||
2020 | 2019 | ||||||||||
Raw materials and work in process | $ | 211,979 | $ | 235,433 | |||||||
Motorcycle finished goods | 281,132 | 280,306 | |||||||||
Parts & Accessories and General Merchandise | 84,469 | 144,258 | |||||||||
Inventory at lower of FIFO cost or net realizable value | 577,580 | 659,997 | |||||||||
Excess of FIFO over LIFO cost | (54,083) | (56,426) | |||||||||
$ | 523,497 | $ | 603,571 |
2020 | 2019 | ||||||||||
Land and related improvements | $ | 69,518 | $ | 75,798 | |||||||
Buildings and related improvements | 428,171 | 507,178 | |||||||||
Machinery and equipment | 1,577,337 | 1,609,582 | |||||||||
Software | 759,675 | 750,978 | |||||||||
Construction in progress | 188,823 | 148,805 | |||||||||
3,023,524 | 3,092,341 | ||||||||||
Accumulated depreciation | (2,279,740) | (2,244,959) | |||||||||
$ | 743,784 | $ | 847,382 |
2020 | 2019 | ||||||||||
Payroll, employee benefits and related expenses | $ | 107,511 | $ | 113,621 | |||||||
Sales incentive programs | 52,820 | 73,354 | |||||||||
Warranty and recalls | 44,415 | 57,068 | |||||||||
Accrued interest | 65,590 | 49,213 | |||||||||
Tax-related accruals | 24,238 | 29,871 | |||||||||
Leases | 17,081 | 19,013 | |||||||||
Fair value of derivative financial instruments | 25,521 | 13,934 | |||||||||
Restructuring | 23,920 | 867 | |||||||||
Other | 196,118 | 225,347 | |||||||||
$ | 557,214 | $ | 582,288 |
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 1,298 | $ | 423,635 | $ | 531,451 | |||||||||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 185,715 | 232,537 | 264,863 | ||||||||||||||
Amortization of deferred loan origination costs | 71,142 | 76,326 | 81,315 | ||||||||||||||
Amortization of financing origination fees | 14,435 | 9,823 | 8,367 | ||||||||||||||
Provision for long-term employee benefits | 40,833 | 13,344 | 36,481 | ||||||||||||||
Employee benefit plan contributions and payments | (20,722) | (13,256) | (10,544) | ||||||||||||||
Stock compensation expense | 23,494 | 33,733 | 35,539 | ||||||||||||||
Net change in wholesale finance receivables related to sales | 531,701 | (5,822) | (56,538) | ||||||||||||||
Provision for credit losses | 181,870 | 134,536 | 106,870 | ||||||||||||||
Deferred income taxes | (44,079) | 21,547 | (33,981) | ||||||||||||||
Other, net | 13,826 | 298 | 37,554 | ||||||||||||||
Changes in current assets and liabilities: | |||||||||||||||||
Accounts receivable, net | 127,657 | 44,902 | 9,143 | ||||||||||||||
Finance receivables – accrued interest and other | 7,418 | (11,119) | 773 | ||||||||||||||
Inventories, net | 80,858 | (47,576) | (31,059) | ||||||||||||||
Accounts payable and accrued liabilities | (43,087) | (18,462) | 196,192 | ||||||||||||||
Derivative financial instruments | (3,481) | 1,936 | 473 | ||||||||||||||
Other | 9,012 | (28,110) | 29,022 | ||||||||||||||
1,176,592 | 444,637 | 674,470 | |||||||||||||||
Net cash provided by operating activities | $ | 1,177,890 | $ | 868,272 | $ | 1,205,921 |
2020 | 2019 | 2018 | |||||||||||||||
Interest | $ | 245,961 | $ | 229,678 | $ | 207,484 | |||||||||||
Income taxes | $ | 30,675 | $ | 149,828 | $ | 149,436 |
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Retail finance receivables: | |||||||||||||||||||||||||||||
United States | $ | 6,128,269 | $ | 6,180,236 | $ | 6,103,378 | $ | 5,901,002 | $ | 5,769,410 | |||||||||||||||||||
Canada | 215,926 | 236,192 | 224,823 | 239,598 | 212,801 | ||||||||||||||||||||||||
6,344,195 | 6,416,428 | 6,328,201 | 6,140,600 | 5,982,211 | |||||||||||||||||||||||||
Wholesale finance receivables: | |||||||||||||||||||||||||||||
United States | 459,495 | 1,067,880 | 1,007,956 | 939,621 | 961,150 | ||||||||||||||||||||||||
Canada | 30,254 | 88,639 | 75,659 | 77,336 | 65,440 | ||||||||||||||||||||||||
489,749 | 1,156,519 | 1,083,615 | 1,016,957 | 1,026,590 | |||||||||||||||||||||||||
6,833,944 | 7,572,947 | 7,411,816 | 7,157,557 | 7,008,801 | |||||||||||||||||||||||||
Allowance for credit losses | (390,936) | (198,581) | (189,885) | (192,471) | (173,343) | ||||||||||||||||||||||||
$ | 6,443,008 | $ | 7,374,366 | $ | 7,221,931 | $ | 6,965,086 | $ | 6,835,458 |
United States | Canada | Total | |||||||||||||||
2021 | $ | 1,505,981 | $ | 76,190 | $ | 1,582,171 | |||||||||||
2022 | 1,194,078 | 49,038 | 1,243,116 | ||||||||||||||
2023 | 1,340,552 | 53,037 | 1,393,589 | ||||||||||||||
2024 | 1,465,470 | 57,515 | 1,522,985 | ||||||||||||||
2025 | 1,001,327 | 10,400 | 1,011,727 | ||||||||||||||
Thereafter | 80,356 | — | 80,356 | ||||||||||||||
$ | 6,587,764 | $ | 246,180 | $ | 6,833,944 |
2020 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Balance, beginning of period | $ | 188,501 | $ | 10,080 | $ | 198,581 | |||||||||||
Cumulative effect of change in accounting(a)
|
95,558 | 5,046 | 100,604 | ||||||||||||||
Provision for credit losses | 175,225 | 6,645 | 181,870 | ||||||||||||||
Charge-offs | (137,371) | (2,573) | (139,944) | ||||||||||||||
Recoveries | 49,825 | — | 49,825 | ||||||||||||||
Balance, end of period | $ | 371,738 | $ | 19,198 | $ | 390,936 |
2019 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Balance, beginning of period | $ | 182,098 | $ | 7,787 | $ | 189,885 | |||||||||||
Provision for credit losses | 132,243 | 2,293 | 134,536 | ||||||||||||||
Charge-offs | (173,358) | — | (173,358) | ||||||||||||||
Recoveries | 47,518 | — | 47,518 | ||||||||||||||
Balance, end of period | $ | 188,501 | $ | 10,080 | $ | 198,581 |
2018 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Balance, beginning of period | $ | 186,254 | $ | 6,217 | $ | 192,471 | |||||||||||
Provision for credit losses | 105,292 | 1,578 | 106,870 | ||||||||||||||
Charge-offs | (154,433) | (8) | (154,441) | ||||||||||||||
Recoveries | 44,985 | — | 44,985 | ||||||||||||||
Balance, end of period | $ | 182,098 | $ | 7,787 | $ | 189,885 |
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & Prior | Total | |||||||||||||||||||||||||||||||||||
U.S. Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | $ | 822,631 | $ | 575,977 | $ | 355,529 | $ | 165,436 | $ | 71,360 | $ | 29,181 | $ | 2,020,114 | |||||||||||||||||||||||||||
Prime | 1,133,637 | 794,058 | 508,713 | 293,358 | 156,688 | 77,046 | 2,963,500 | ||||||||||||||||||||||||||||||||||
Sub-prime | 435,875 | 295,403 | 177,598 | 111,163 | 72,556 | 52,060 | 1,144,655 | ||||||||||||||||||||||||||||||||||
2,392,143 | 1,665,438 | 1,041,840 | 569,957 | 300,604 | 158,287 | 6,128,269 | |||||||||||||||||||||||||||||||||||
Canadian Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | 53,465 | 48,692 | 28,581 | 13,818 | 5,018 | 2,011 | 151,585 | ||||||||||||||||||||||||||||||||||
Prime | 18,568 | 14,257 | 10,269 | 6,727 | 3,198 | 2,025 | 55,044 | ||||||||||||||||||||||||||||||||||
Sub-prime | 3,172 | 2,498 | 1,560 | 1,095 | 607 | 365 | 9,297 | ||||||||||||||||||||||||||||||||||
75,205 | 65,447 | 40,410 | 21,640 | 8,823 | 4,401 | 215,926 | |||||||||||||||||||||||||||||||||||
$ | 2,467,348 | $ | 1,730,885 | $ | 1,082,250 | $ | 591,597 | $ | 309,427 | $ | 162,688 | $ | 6,344,195 |
2019 | ||||||||
Prime | $ | 5,278,093 | ||||||
Sub-prime | 1,138,335 | |||||||
$ | 6,416,428 |
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & Prior | Total | |||||||||||||||||||||||||||||||||||
Non-Performing | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Special Mention | 658 | 365 | 31 | — | — | — | 1,054 | ||||||||||||||||||||||||||||||||||
Medium Risk | 1,925 | 242 | — | — | — | — | 2,167 | ||||||||||||||||||||||||||||||||||
Low Risk | 388,568 | 71,441 | 13,412 | 7,887 | 2,297 | 2,923 | 486,528 | ||||||||||||||||||||||||||||||||||
$ | 391,151 | $ | 72,048 | $ | 13,443 | $ | 7,887 | $ | 2,297 | $ | 2,923 | $ | 489,749 |
2019 | ||||||||
Doubtful | $ | 11,664 | ||||||
Substandard | 6,122 | |||||||
Special Mention | 16,125 | |||||||
Medium Risk | 16,800 | |||||||
Low Risk | 1,105,808 | |||||||
$ | 1,156,519 |
2020 | |||||||||||||||||||||||||||||||||||
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 | $ | 6,164,369 | $ | 106,818 | $ | 39,933 | $ | 33,075 | $ | 179,826 | $ | 6,344,195 | |||||||||||||||||||||||
Wholesale financial receivables | 489,556 | 166 | 23 | 4 | 193 | 489,749 | |||||||||||||||||||||||||||||
$ | 6,653,925 | $ | 106,984 | $ | 39,956 | $ | 33,079 | $ | 180,019 | $ | 6,833,944 |
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 | $ | 6,171,930 | $ | 142,479 | $ | 53,995 | $ | 48,024 | $ | 244,498 | $ | 6,416,428 | |||||||||||||||||||||||
Wholesale financial receivables | 1,152,416 | 1,145 | 384 | 2,574 | 4,103 | 1,156,519 | |||||||||||||||||||||||||||||
$ | 7,324,346 | $ | 143,624 | $ | 54,379 | $ | 50,598 | $ | 248,601 | $ | 7,572,947 |
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
United States | $ | 32,599 | $ | 47,138 | $ | 41,285 | $ | 39,051 | $ | 39,399 | |||||||||||||||||||
Canada | 480 | 888 | 1,051 | 1,025 | 1,326 | ||||||||||||||||||||||||
$ | 33,079 | $ | 48,026 | $ | 42,336 | $ | 40,076 | $ | 40,725 |
2019 | |||||||||||||||||
Retail | Wholesale | Total | |||||||||||||||
Allowance for credit losses, ending balance: | |||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 2,100 | $ | 2,100 | |||||||||||
Collectively evaluated for impairment | 188,501 | 7,980 | 196,481 | ||||||||||||||
$ | 188,501 | $ | 10,080 | $ | 198,581 | ||||||||||||
Finance receivables, ending balance: | |||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 4,601 | $ | 4,601 | |||||||||||
Collectively evaluated for impairment | 6,416,428 | 1,151,918 | 7,568,346 | ||||||||||||||
$ | 6,416,428 | $ | 1,156,519 | $ | 7,572,947 |
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||
Wholesale: | |||||||||||||||||||||||||||||
No related allowance recorded | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Related allowance recorded | 4,994 | 4,601 | 2,100 | 4,976 | — | ||||||||||||||||||||||||
$ | 4,994 | $ | 4,601 | $ | 2,100 | $ | 4,976 | $ | — |
2020 | 2019 | 2018 | |||||||||||||||
Balance, beginning of period | $ | 64,160 | $ | 55,048 | $ | 55,947 | |||||||||||
Acquisitions | — | 9,520 | — | ||||||||||||||
Currency translation | 1,816 | (408) | (899) | ||||||||||||||
Balance, end of period | $ | 65,976 | $ | 64,160 | $ | 55,048 |
2020 | 2019 | 2018 | |||||||||||||||
Gross carrying amount | $ | 12,979 | $ | 12,837 | $ | 7,234 | |||||||||||
Accumulated amortization | (3,350) | (2,240) | (1,236) | ||||||||||||||
$ | 9,629 | $ | 10,597 | $ | 5,998 |
2021 | $ | 1,072 | |||
2022 | 1,072 | ||||
2023 | 1,072 | ||||
2024 | 830 | ||||
2025 | 750 | ||||
Thereafter | 4,833 | ||||
$ | 9,629 |
Derivative Financial Instruments
Designated as Cash Flow Hedging Instruments |
|||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Notional
Value |
Other
Current Assets |
Accrued Liabilities |
Notional
Value |
Other
Current Assets |
Accrued Liabilities | ||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 533,925 | $ | 11 | $ | 21,927 | $ | 434,321 | $ | 3,505 | $ | 3,661 | |||||||||||||||||||||||
Commodity contracts | 671 | — | 52 | 616 | — | 80 | |||||||||||||||||||||||||||||
Cross-currency swaps | 1,367,460 | 138,622 | — | 660,780 | 8,326 | — | |||||||||||||||||||||||||||||
Interest rate swaps | 450,000 | — | 3,086 | 900,000 | — | 9,181 | |||||||||||||||||||||||||||||
$ | 2,352,056 | $ | 138,633 | $ | 25,065 | $ | 1,995,717 | $ | 11,831 | $ | 12,922 | ||||||||||||||||||||||||
Derivative Financial Instruments
Not Designated as Hedging Instruments |
|||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Notional
Value |
Other
Current Assets |
Accrued Liabilities |
Notional
Value |
Other
Current Assets |
Accrued Liabilities | ||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 245,494 | $ | 737 | $ | 435 | $ | 220,139 | $ | 721 | $ | 865 | |||||||||||||||||||||||
Commodity contracts | 6,806 | 849 | 21 | 8,270 | 95 | 147 | |||||||||||||||||||||||||||||
Interest rate caps | 978,058 | 47 | — | 375,980 | 2 | — | |||||||||||||||||||||||||||||
$ | 1,230,358 | $ | 1,633 | $ | 456 | $ | 604,389 | $ | 818 | $ | 1,012 |
Gain/(Loss)
Recognized in OCI |
Gain/(Loss)
Reclassified from AOCL into Income |
||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Foreign currency contracts | $ | (14,507) | $ | 8,235 | $ | 41,657 | $ | 9,859 | $ | 21,433 | $ | 11,492 | |||||||||||||||||||||||
Commodity contracts | (160) | (103) | 34 | (189) | (70) | 24 | |||||||||||||||||||||||||||||
Cross-currency swaps | 130,297 | 8,326 | — | 153,472 | 12,156 | — | |||||||||||||||||||||||||||||
Treasury rate lock contracts | — | — | 41 | (492) | (492) | (498) | |||||||||||||||||||||||||||||
Interest rate swaps | (8,449) | (9,981) | (6,046) | (14,543) | (5,295) | (1,552) | |||||||||||||||||||||||||||||
$ | 107,181 | $ | 6,477 | $ | 35,686 | $ | 148,107 | $ | 27,732 | $ | 9,466 |
Motorcycles
cost of goods sold |
Selling, administrative &
engineering expense |
Interest expense | Financial Services interest expense | ||||||||||||||||||||
2020 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 2,435,745 | $ | 1,050,627 | $ | 31,121 | $ | 246,447 | |||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | 9,859 | $ | — | $ | — | $ | — | |||||||||||||||
Commodity contracts | $ | (189) | $ | — | $ | — | $ | — | |||||||||||||||
Cross-currency swaps | $ | — | $ | 153,472 | $ | — | $ | — | |||||||||||||||
Treasury rate lock contracts | $ | — | $ | — | $ | (362) | $ | (130) | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | (14,543) | |||||||||||||||
2019 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 3,229,798 | $ | 1,199,056 | $ | 31,078 | $ | 210,438 | |||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | 21,433 | $ | — | $ | — | $ | — | |||||||||||||||
Commodity contracts | $ | (70) | $ | — | $ | — | $ | — | |||||||||||||||
Cross-currency swaps | $ | — | $ | 12,156 | $ | — | $ | — | |||||||||||||||
Treasury rate lock contracts | $ | — | $ | — | $ | (362) | $ | (130) | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | (5,295) | |||||||||||||||
2018 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 3,351,796 | $ | 1,258,098 | $ | 30,884 | $ | 193,187 | |||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | 11,492 | $ | — | $ | — | $ | — | |||||||||||||||
Commodity contracts | $ | 24 | $ | — | $ | — | $ | — | |||||||||||||||
Treasury rate lock contracts | $ | — | $ | — | $ | (362) | $ | (136) | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | (1,552) |
Amount of Gain/(Loss)
Recognized in Income |
|||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Foreign currency contracts | $ | (205) | $ | 191 | $ | — | |||||||||||
Commodity contracts | (148) | 17 | (430) | ||||||||||||||
Interest rate caps | (532) | (143) | — | ||||||||||||||
$ | (885) | $ | 65 | $ | (430) |
2020 | 2019 | ||||||||||||||||
Lease assets | $ | 45,203 | $ | 61,618 | |||||||||||||
Accrued liabilities | $ | 17,081 | $ | 19,013 | |||||||||||||
Lease liabilities | 30,115 | 44,447 | |||||||||||||||
$ | 47,196 | $ | 63,460 |
2021 | $ | 18,160 | |||
2022 | 13,573 | ||||
2023 | 5,462 | ||||
2024 | 3,518 | ||||
2025 | 5,787 | ||||
Thereafter | 3,592 | ||||
Future lease payments | 50,092 | ||||
Present value discount | (2,896) | ||||
Lease liabilities | $ | 47,196 |
2020 | 2019 | ||||||||||
Cash outflows for amounts included in the measurement of lease liabilities | $ | 20,533 | $ | 21,491 | |||||||
Right-of-use assets obtained in exchange for lease obligations, net of modifications | $ | 1,833 | $ | 21,579 | |||||||
Weighted-average remaining lease term (in years) | 3.78 | 4.68 | |||||||||
Weighted-average discount rate | 3.1 | % | 2.1 | % |
2020 | 2019 | ||||||||||
Unsecured commercial paper | $ | 1,014,274 | $ | 571,995 |
2020 | 2019 | ||||||||||||||||
Secured debt: | |||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | 116,678 | $ | 114,693 | |||||||||||||
Asset-backed U.S. commercial paper conduit facilities | 402,205 | 490,427 | |||||||||||||||
Asset-backed securitization debt | 1,800,393 | 766,965 | |||||||||||||||
Unamortized discounts and debt issuance costs | (8,437) | (2,573) | |||||||||||||||
2,310,839 | 1,369,512 |
2020 | 2019 | ||||||||||||||||
Unsecured notes (at par value): | |||||||||||||||||
Medium-term notes: | |||||||||||||||||
Due in 2020, issued February 2015 |
2.15%
|
— | 600,000 | ||||||||||||||
Due in 2020, issued May 2018 |
LIBOR + 0.50%
|
— | 450,000 | ||||||||||||||
Due in 2020, issued March 2017 |
2.40%
|
— | 350,000 | ||||||||||||||
Due in 2021, issued January 2016 |
2.85%
|
600,000 | 600,000 | ||||||||||||||
Due in 2021, issued in November 2018 |
LIBOR + 0.94%
|
450,000 | 450,000 | ||||||||||||||
Due in 2021, issued May 2018 |
3.55%
|
350,000 | 350,000 | ||||||||||||||
Due in 2022, issued February 2019 |
4.05%
|
550,000 | 550,000 | ||||||||||||||
Due in 2022, issued June 2017 |
2.55%
|
400,000 | 400,000 | ||||||||||||||
Due in 2023, issued February 2018 |
3.35%
|
350,000 | 350,000 | ||||||||||||||
Due in 2023, issued May 2020(a)
|
4.94%
|
797,206 | — | ||||||||||||||
Due in 2024, issued November 2019(b)
|
3.14%
|
735,882 | 672,936 | ||||||||||||||
Due in 2025, issued June 2020 |
3.35%
|
700,000 | — | ||||||||||||||
Unamortized discounts and debt issuance costs | (15,374) | (12,809) | |||||||||||||||
4,917,714 | 4,760,127 | ||||||||||||||||
Senior notes: | |||||||||||||||||
Due in 2025, issued July 2015 |
3.50%
|
450,000 | 450,000 | ||||||||||||||
Due in 2045, issued July 2015 |
4.625%
|
300,000 | 300,000 | ||||||||||||||
Unamortized discounts and debt issuance costs | (6,023) | (6,704) | |||||||||||||||
743,977 | 743,296 | ||||||||||||||||
5,661,691 | 5,503,423 | ||||||||||||||||
Long-term debt | 7,972,530 | 6,872,935 | |||||||||||||||
Current portion of long-term debt, net | (2,039,597) | (1,748,109) | |||||||||||||||
Long-term debt, net | $ | 5,932,933 | $ | 5,124,826 |
2021 | $ | 3,063,227 | |||
2022 | 1,655,414 | ||||
2023 | 1,793,635 | ||||
2024 | 1,054,362 | ||||
2025 | 700,000 | ||||
Thereafter | 750,000 | ||||
$ | 9,016,638 |
2020 | |||||||||||||||||||||||||||||||||||
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 | $ | 2,129,372 | $ | (124,627) | $ | 116,268 | $ | 2,622 | $ | 2,123,635 | $ | 1,791,956 | |||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facility | 441,402 | (25,793) | 26,624 | 1,131 | 443,364 | 402,205 | |||||||||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | 133,976 | (6,508) | 9,073 | 126 | 136,667 | 116,678 | |||||||||||||||||||||||||||||
$ | 2,704,750 | $ | (156,928) | $ | 151,965 | $ | 3,879 | $ | 2,703,666 | $ | 2,310,839 | ||||||||||||||||||||||||
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 | $ | 826,047 | $ | (24,935) | $ | 36,037 | $ | 778 | $ | 837,927 | $ | 764,392 | |||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | 533,587 | (16,076) | 27,775 | 1,642 | 546,928 | 490,427 | |||||||||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | 132,279 | (2,786) | 7,686 | 296 | 137,475 | 114,693 | |||||||||||||||||||||||||||||
$ | 1,491,913 | $ | (43,797) | $ | 71,498 | $ | 2,716 | $ | 1,522,330 | $ | 1,369,512 |
Issue Date |
Principal Amount
at Date of Issuance |
Weighted-Average Rate
at Date of Issuance |
Contractual Maturity Date
at Date of Issuance |
|||||||||||||||||
May 2020 | $750,178 | 3.38% | April 2028 | |||||||||||||||||
May 2020 | $500,000 | 2.37% | October 2021 - October 2028 | |||||||||||||||||
April 2020 | $300,000 | 3.30% | November 2027 | |||||||||||||||||
January 2020 | $525,000 | 1.83% | February 2021 - April 2027 | |||||||||||||||||
June 2019 | $525,000 | 2.37% | July 2020 - November 2026 | |||||||||||||||||
May 2019 | $500,000 | 3.05% | July 2026 | |||||||||||||||||
2020 | 2019 | ||||||||||
On-balance sheet retail motorcycle finance receivables | $ | 6,187,300 | $ | 6,274,551 | |||||||
Off-balance sheet retail motorcycle finance receivables | — | 35,197 | |||||||||
$ | 6,187,300 | $ | 6,309,748 |
2020 | 2019 | ||||||||||
On-balance sheet retail motorcycle finance receivables | $ | 176,733 | $ | 244,498 | |||||||
Off-balance sheet retail motorcycle finance receivables | — | 885 | |||||||||
$ | 176,733 | $ | 245,383 |
2020 | 2019 | ||||||||||
On-balance sheet retail motorcycle finance receivables | $ | 87,546 | $ | 125,840 | |||||||
Off-balance sheet retail motorcycle finance receivables | 13 | 458 | |||||||||
$ | 87,559 | $ | 126,298 |
2020 | |||||||||||||||||||||||
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | $ | 3,019,884 | $ | 2,819,884 | $ | 200,000 | |||||||||||||||||
Marketable securities | 52,061 | 52,061 | — | ||||||||||||||||||||
Derivative financial instruments | 140,266 | — | 140,266 | ||||||||||||||||||||
$ | 3,212,211 | $ | 2,871,945 | $ | 340,266 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments | $ | 25,521 | $ | — | $ | 25,521 |
2019 | |||||||||||||||||||||||
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | $ | 624,832 | $ | 459,885 | $ | 164,947 | |||||||||||||||||
Marketable securities | 52,575 | 52,575 | — | ||||||||||||||||||||
Derivative financial instruments | 12,649 | — | 12,649 | ||||||||||||||||||||
$ | 690,056 | $ | 512,460 | $ | 177,596 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments | $ | 13,934 | $ | — | $ | 13,934 |
2020 | 2019 | ||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Finance receivables, net | $ | 6,586,348 | $ | 6,443,008 | $ | 7,419,627 | $ | 7,374,366 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Deposits | $ | 79,965 | $ | 79,965 | $ | — | $ | — | |||||||||||||||
Debt: | |||||||||||||||||||||||
Unsecured commercial paper | $ | 1,014,274 | $ | 1,014,274 | $ | 571,995 | $ | 571,995 | |||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | $ | 402,205 | $ | 402,205 | $ | 490,427 | $ | 490,427 | |||||||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | 116,678 | $ | 116,678 | $ | 114,693 | $ | 114,693 | |||||||||||||||
Asset-backed securitization debt | $ | 1,817,892 | $ | 1,791,956 | $ | 768,094 | $ | 764,392 | |||||||||||||||
Medium-term notes | $ | 5,118,928 | $ | 4,917,714 | $ | 4,816,153 | $ | 4,760,127 | |||||||||||||||
Senior notes | $ | 828,141 | $ | 743,977 | $ | 774,949 | $ | 743,296 |
2020 | 2019 | 2018 | |||||||||||||||
Balance, beginning of period | $ | 89,793 | $ | 131,740 | $ | 94,200 | |||||||||||
Warranties issued during the period | 32,042 | 50,470 | 53,367 | ||||||||||||||
Settlements made during the period | (51,420) | (90,404) | (79,300) | ||||||||||||||
Recalls and changes to pre-existing warranty liabilities | (1,207) | (2,013) | 63,473 | ||||||||||||||
Balance, end of period | $ | 69,208 | $ | 89,793 | $ | 131,740 |
Pension and SERPA Benefits | Postretirement Healthcare Benefits | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||
Benefit obligation, beginning of period | $ | 2,212,012 | $ | 1,984,708 | $ | 293,505 | $ | 286,574 | |||||||||||||||
Service cost | 27,224 | 25,408 | 11,761 | 4,449 | |||||||||||||||||||
Interest cost | 76,447 | 85,483 | 9,391 | 11,753 | |||||||||||||||||||
Actuarial losses (gains) | 228,081 | 236,719 | 18,824 | 9,590 | |||||||||||||||||||
Plan participant contributions | — | — | 2,140 | 1,999 | |||||||||||||||||||
Plan amendments | — | 8,371 | — | — | |||||||||||||||||||
Special early retirement benefits | — | 1,583 | — | — | |||||||||||||||||||
Benefits paid | (137,381) | (126,079) | (19,703) | (20,860) | |||||||||||||||||||
Net curtailments and settlements | (15,948) | (4,181) | (673) | — | |||||||||||||||||||
Benefit obligation, end of period | 2,390,435 | 2,212,012 | 315,245 | 293,505 | |||||||||||||||||||
Pension and SERPA Benefits | Postretirement Healthcare Benefits | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||
Fair value of plan assets, beginning of period | 2,209,222 | 1,874,618 | 220,992 | 190,357 | |||||||||||||||||||
Return on plan assets | 361,674 | 459,388 | 36,349 | 41,717 | |||||||||||||||||||
Plan participant contributions | — | — | 2,140 | 1,999 | |||||||||||||||||||
Benefits paid | (136,921) | (124,784) | (15,446) | (13,081) | |||||||||||||||||||
Fair value of plan assets, end of period | 2,433,975 | 2,209,222 | 244,035 | 220,992 | |||||||||||||||||||
Funded status of the plan | $ | 43,540 | $ | (2,790) | $ | (71,210) | $ | (72,513) | |||||||||||||||
Funded status as recognized on the Consolidated balance sheets: | |||||||||||||||||||||||
Pension and postretirement assets | $ | 82,537 | $ | 56,014 | $ | 13,174 | $ | — | |||||||||||||||
Accrued liabilities | (8,814) | (2,666) | (361) | — | |||||||||||||||||||
Pension and postretirement liabilities | (30,183) | (56,138) | (84,023) | (72,513) | |||||||||||||||||||
$ | 43,540 | $ | (2,790) | $ | (71,210) | $ | (72,513) | ||||||||||||||||
Amounts included in Accumulated other comprehensive loss, net of tax: | |||||||||||||||||||||||
Prior service credits | $ | (5,712) | $ | (6,489) | $ | (5,438) | $ | (7,559) | |||||||||||||||
Actuarial losses (gains) | 445,804 | 496,919 | (4,942) | (1,321) | |||||||||||||||||||
$ | 440,092 | $ | 490,430 | $ | (10,380) | $ | (8,880) |
2020 | 2019 | ||||||||||
Plans with PBO in excess of fair value of plan assets: | |||||||||||
PBO | $ | 38,996 | $ | 58,804 | |||||||
Fair value of plan assets | $ | — | $ | — | |||||||
Plans with ABO in excess of fair value of plan assets: | |||||||||||
ABO | $ | 30,598 | $ | 44,232 | |||||||
Fair value of plan assets | $ | — | $ | — |
Pension and SERPA Benefits | Postretirement Healthcare Benefits | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Service cost | $ | 27,224 | $ | 25,408 | $ | 32,340 | $ | 11,761 | $ | 4,449 | $ | 7,180 | |||||||||||||||||||||||
Interest cost | 76,447 | 85,483 | 82,778 | 9,391 | 11,753 | 11,556 | |||||||||||||||||||||||||||||
Expected return on plan assets | (135,056) | (142,323) | (147,671) | (13,870) | (14,030) | (14,161) | |||||||||||||||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||||||||||||||
Prior service credit | (1,088) | (1,930) | (420) | (2,381) | (2,381) | (1,842) | |||||||||||||||||||||||||||||
Net loss | 65,489 | 44,511 | 64,773 | 492 | 277 | 1,817 | |||||||||||||||||||||||||||||
Special early retirement benefits | — | 1,583 | — | — | — | — | |||||||||||||||||||||||||||||
Curtailment loss (gain) | 74 | — | 1,017 | (392) | (960) | (886) | |||||||||||||||||||||||||||||
Settlement loss | 2,742 | 1,503 | — | — | — | — | |||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 35,832 | $ | 14,235 | $ | 32,817 | $ | 5,001 | $ | (892) | $ | 3,664 |
Pension and SERPA Benefits | Postretirement Healthcare Benefits | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Assumptions for benefit obligations: | |||||||||||||||||||||||||||||||||||
Discount rate | 2.62 | % | 3.49 | % | 4.38 | % | 2.11 | % | 3.26 | % | 4.23 | % | |||||||||||||||||||||||
Rate of compensation increase | 3.34 | % | 3.39 | % | 3.38 | % | n/a | n/a | n/a | ||||||||||||||||||||||||||
Assumptions for net periodic benefit cost: | |||||||||||||||||||||||||||||||||||
Discount rate | 3.49 | % | 4.38 | % | 3.71 | % | 3.26 | % | 4.23 | % | 3.52 | % | |||||||||||||||||||||||
Expected return on plan assets | 6.70 | % | 7.10 | % | 7.25 | % | 7.00 | % | 7.25 | % | 7.25 | % | |||||||||||||||||||||||
Rate of compensation increase | 3.39 | % | 3.38 | % | 3.43 | % | n/a | n/a | n/a |
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Cash and cash equivalents | $ | 56,153 | $ | — | $ | 56,153 | |||||||||||||||||
Equity holdings: | |||||||||||||||||||||||
U.S. companies | 785,227 | 769,583 | 15,644 | ||||||||||||||||||||
Foreign companies | 114,013 | 106,783 | 7,230 | ||||||||||||||||||||
Harley-Davidson common stock | 46,741 | 46,741 | — | ||||||||||||||||||||
Pooled equity funds | 381,538 | 381,538 | — | ||||||||||||||||||||
Other | 66 | 66 | — | ||||||||||||||||||||
1,327,585 | 1,304,711 | 22,874 | |||||||||||||||||||||
Fixed-income holdings: | |||||||||||||||||||||||
U.S. Treasuries | 59,116 | 59,116 | — | ||||||||||||||||||||
Federal agencies | 15,230 | — | 15,230 | ||||||||||||||||||||
Corporate bonds | 691,003 | — | 691,003 | ||||||||||||||||||||
Pooled fixed income funds | 148,717 | 51,456 | 97,261 | ||||||||||||||||||||
Foreign bonds | 110,062 | — | 110,062 | ||||||||||||||||||||
Municipal bonds | 14,671 | — | 14,671 | ||||||||||||||||||||
1,038,799 | 110,572 | 928,227 | |||||||||||||||||||||
Plan assets subject to fair value leveling | 2,422,537 | $ | 1,415,283 | $ | 1,007,254 | ||||||||||||||||||
Plan assets measured at net asset value: | |||||||||||||||||||||||
Limited partnership interests | 537 | ||||||||||||||||||||||
Real estate investment trusts | 10,901 | ||||||||||||||||||||||
11,438 | |||||||||||||||||||||||
$ | 2,433,975 |
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Cash and cash equivalents | $ | 4,306 | $ | — | $ | 4,306 | |||||||||||||||||
Equity holdings: | |||||||||||||||||||||||
U.S. companies | 115,272 | 115,272 | — | ||||||||||||||||||||
Foreign companies | 29,670 | 29,670 | — | ||||||||||||||||||||
Pooled equity funds | 27,207 | 27,207 | — | ||||||||||||||||||||
Other | 5 | 5 | — | ||||||||||||||||||||
172,154 | 172,154 | — | |||||||||||||||||||||
Fixed-income holdings: | |||||||||||||||||||||||
U.S. Treasuries | 2,873 | 2,873 | — | ||||||||||||||||||||
Federal agencies | 6,970 | — | 6,970 | ||||||||||||||||||||
Corporate bonds | 12,460 | — | 12,460 | ||||||||||||||||||||
Pooled fixed income funds | 37,989 | 37,989 | — | ||||||||||||||||||||
Foreign bonds | 970 | — | 970 | ||||||||||||||||||||
Municipal bonds | 458 | — | 458 | ||||||||||||||||||||
61,720 | 40,862 | 20,858 | |||||||||||||||||||||
Plan assets subject to fair value leveling | 238,180 | $ | 213,016 | $ | 25,164 | ||||||||||||||||||
Plan assets measured at net asset value: | |||||||||||||||||||||||
Real estate investment trusts | 5,855 | ||||||||||||||||||||||
$ | 244,035 |
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Cash and cash equivalents | $ | 35,463 | $ | — | $ | 35,463 | |||||||||||||||||
Equity holdings: | |||||||||||||||||||||||
U.S. companies | 728,892 | 707,276 | 21,616 | ||||||||||||||||||||
Foreign companies | 79,707 | 77,275 | 2,432 | ||||||||||||||||||||
Harley-Davidson common stock | 47,365 | 47,365 | — | ||||||||||||||||||||
Pooled equity funds | 377,301 | 377,301 | — | ||||||||||||||||||||
Other | 72 | 72 | — | ||||||||||||||||||||
1,233,337 | 1,209,289 | 24,048 | |||||||||||||||||||||
Fixed-income holdings: | |||||||||||||||||||||||
U.S. Treasuries | 67,234 | 67,234 | — | ||||||||||||||||||||
Federal agencies | 15,434 | — | 15,434 | ||||||||||||||||||||
Corporate bonds | 583,475 | — | 583,475 | ||||||||||||||||||||
Pooled fixed income funds | 142,134 | 48,674 | 93,460 | ||||||||||||||||||||
Foreign bonds | 103,439 | — | 103,439 | ||||||||||||||||||||
Municipal bonds | 12,339 | — | 12,339 | ||||||||||||||||||||
924,055 | 115,908 | 808,147 | |||||||||||||||||||||
Plan assets subject to fair value leveling | 2,192,855 | $ | 1,325,197 | $ | 867,658 | ||||||||||||||||||
Plan assets measured at net asset value: | |||||||||||||||||||||||
Limited partnership interests | 4,118 | ||||||||||||||||||||||
Real estate investment trust | 12,249 | ||||||||||||||||||||||
16,367 | |||||||||||||||||||||||
$ | 2,209,222 |
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Cash and cash equivalents | $ | 2,458 | $ | — | $ | 2,458 | |||||||||||||||||
Equity holdings: | |||||||||||||||||||||||
U.S. companies | 104,399 | 104,399 | — | ||||||||||||||||||||
Foreign companies | 22,422 | 21,744 | 678 | ||||||||||||||||||||
Pooled equity funds | 25,029 | 25,029 | — | ||||||||||||||||||||
Other | 7 | 7 | — | ||||||||||||||||||||
151,857 | 151,179 | 678 | |||||||||||||||||||||
Fixed-income holdings: | |||||||||||||||||||||||
U.S. Treasuries | 5,782 | 5,782 | — | ||||||||||||||||||||
Federal agencies | 7,986 | — | 7,986 | ||||||||||||||||||||
Corporate bonds | 8,425 | — | 8,425 | ||||||||||||||||||||
Pooled fixed income funds | 36,720 | 36,720 | — | ||||||||||||||||||||
Foreign bonds | 672 | — | 672 | ||||||||||||||||||||
Municipal bonds | 454 | — | 454 | ||||||||||||||||||||
60,039 | 42,502 | 17,537 | |||||||||||||||||||||
Plan assets subject to fair value leveling | 214,354 | $ | 193,681 | $ | 20,673 | ||||||||||||||||||
Plan assets measured at net asset value: | |||||||||||||||||||||||
Real estate investment trust | 6,638 | ||||||||||||||||||||||
$ | 220,992 |
2020 | 2019 | ||||||||||
Healthcare cost trend rate for next year | 7.00 | % | 7.25 | % | |||||||
Rate to which the cost trend rate is assumed to decline (the ultimate rate) | 5.00 | % | 5.00 | % | |||||||
Year that the rate reaches the ultimate trend rate | 2029 | 2029 |
Pension Benefits | SERPA Benefits | Postretirement Healthcare Benefits | |||||||||||||||||||||
2021 | $ | 99,727 | $ | 8,813 | $ | 23,444 | |||||||||||||||||
2022 | $ | 102,183 | $ | 1,684 | $ | 23,707 | |||||||||||||||||
2023 | $ | 104,792 | $ | 1,955 | $ | 23,775 | |||||||||||||||||
2024 | $ | 107,078 | $ | 1,919 | $ | 23,465 | |||||||||||||||||
2025 | $ | 110,810 | $ | 1,818 | $ | 23,157 | |||||||||||||||||
2026-2030 | $ | 587,220 | $ | 11,071 | $ | 108,384 |
Shares & Units | Weighted-Average Fair Value Per Share | ||||||||||
Nonvested, beginning of period | 2,011 | $ | 43 | ||||||||
Granted | 1,189 | $ | 33 | ||||||||
Vested | (682) | $ | 45 | ||||||||
Forfeited | (749) | $ | 37 | ||||||||
Nonvested, end of period | 1,769 | $ | 36 |
Units | Weighted-Average Fair Value Per Share | ||||||||||
Nonvested, beginning of period | 127 | $ | 35 | ||||||||
Granted | 101 | $ | 36 | ||||||||
Vested | (50) | $ | 33 | ||||||||
Forfeited | (22) | $ | 28 | ||||||||
Nonvested, end of period | 156 | $ | 37 |
Options | Weighted-Average Exercise Price | ||||||||||
Outstanding, beginning of period | 816 | $ | 56 | ||||||||
Exercised | (4) | $ | 24 | ||||||||
Forfeited | (154) | $ | 56 | ||||||||
Outstanding, end of period | 658 | $ | 56 | ||||||||
Exercisable, end of period | 658 | $ | 56 |
2020 | 2019 | 2018 | |||||||||||||||
Exercised | $ | 21 | $ | 2,614 | $ | 3,855 | |||||||||||
Outstanding | $ | — | $ | 52 | $ | 2,366 | |||||||||||
Exercisable | $ | — | $ | 52 | $ | 2,366 |
Price Range |
Weighted-Average
Contractual Life |
Options |
Weighted-Average
Exercise Price |
|||||||||||||||||
$40.01 to $50
|
0.7 | 173 | $ | 44 | ||||||||||||||||
$50.01 to $60
|
2.0 | 122 | $ | 52 | ||||||||||||||||
$60.01 to $70
|
2.7 | 363 | $ | 63 | ||||||||||||||||
Options outstanding | 2.0 | 658 | $ | 56 | ||||||||||||||||
Options exercisable | 2.0 | 658 | $ | 56 |
2020 | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||||||||
Balance, beginning of period | $ | (40,813) | $ | (14,586) | $ | (481,550) | $ | (536,949) | |||||||||||||||||||||
Other comprehensive income, before reclassifications | 37,088 | 107,181 | 2,193 | 146,462 | |||||||||||||||||||||||||
Income tax expense | (3,864) | (23,626) | (515) | (28,005) | |||||||||||||||||||||||||
33,224 | 83,555 | 1,678 | 118,457 | ||||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||
Net gains on derivative financial instruments | — | (148,107) | — | (148,107) | |||||||||||||||||||||||||
Prior service credits(a)
|
— | — | (3,469) | (3,469) | |||||||||||||||||||||||||
Actuarial losses(a)
|
— | — | 65,981 | 65,981 | |||||||||||||||||||||||||
Curtailment and settlement losses(a)
|
— | — | 3,040 | 3,040 | |||||||||||||||||||||||||
Reclassifications before tax | — | (148,107) | 65,552 | (82,555) | |||||||||||||||||||||||||
Income tax benefit (expense) | — | 33,022 | (15,392) | 17,630 | |||||||||||||||||||||||||
— | (115,085) | 50,160 | (64,925) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | 33,224 | (31,530) | 51,838 | 53,532 | |||||||||||||||||||||||||
Balance, end of period | $ | (7,589) | $ | (46,116) | $ | (429,712) | $ | (483,417) |
2019 | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||||||||
Balance, beginning of period | $ | (49,608) | $ | 1,785 | $ | (581,861) | $ | (629,684) | |||||||||||||||||||||
Other comprehensive income, before reclassifications | 9,229 | 6,477 | 90,071 | 105,777 | |||||||||||||||||||||||||
Income tax expense | (434) | (1,541) | (21,149) | (23,124) | |||||||||||||||||||||||||
8,795 | 4,936 | 68,922 | 82,653 | ||||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||
Net gains on derivative financial instruments | — | (27,732) | — | (27,732) | |||||||||||||||||||||||||
Prior service credits(a)
|
— | — | (4,311) | (4,311) | |||||||||||||||||||||||||
Actuarial losses(a)
|
— | — | 44,788 | 44,788 | |||||||||||||||||||||||||
Curtailment and settlement losses(a)
|
— | — | 543 | 543 | |||||||||||||||||||||||||
Reclassifications before tax | — | (27,732) | 41,020 | 13,288 | |||||||||||||||||||||||||
Income tax benefit (expense) | — | 6,425 | (9,631) | (3,206) | |||||||||||||||||||||||||
— | (21,307) | 31,389 | 10,082 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | 8,795 | (16,371) | 100,311 | 92,735 | |||||||||||||||||||||||||
Balance, end of period | $ | (40,813) | $ | (14,586) | $ | (481,550) | $ | (536,949) |
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 | (28,212) | 35,686 | (84,725) | (77,251) | |||||||||||||||||||||||||
Income tax benefit (expense) | 3,202 | (8,455) | 19,893 | 14,640 | |||||||||||||||||||||||||
(25,010) | 27,231 | (64,832) | (62,611) | ||||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||
Net gains on derivative financial instruments | — | (9,466) | — | (9,466) | |||||||||||||||||||||||||
Prior service credits(a)
|
— | — | (2,262) | (2,262) | |||||||||||||||||||||||||
Actuarial losses(a)
|
— | — | 66,590 | 66,590 | |||||||||||||||||||||||||
Curtailment and settlement gains(a)
|
— | — | (886) | (886) | |||||||||||||||||||||||||
Reclassifications before tax | — | (9,466) | 63,442 | 53,976 | |||||||||||||||||||||||||
Income tax benefit (expense) | — | 2,244 | (14,896) | (12,652) | |||||||||||||||||||||||||
— | (7,222) | 48,546 | 41,324 | ||||||||||||||||||||||||||
Other comprehensive (loss) income | (25,010) | 20,009 | (16,286) | (21,287) | |||||||||||||||||||||||||
Reclassification of certain tax effects | (2,746) | (970) | (104,632) | (108,348) | |||||||||||||||||||||||||
Balance, end of period | $ | (49,608) | $ | 1,785 | $ | (581,861) | $ | (629,684) |
2020 | 2019 | 2018 | |||||||||||||||
Motorcycles and Related Products: | |||||||||||||||||
Motorcycles revenue | $ | 3,264,054 | $ | 4,572,678 | $ | 4,968,646 | |||||||||||
Gross profit | 828,309 | 1,342,880 | 1,616,850 | ||||||||||||||
Selling, administrative and engineering expense | 895,321 | 1,020,907 | 1,101,086 | ||||||||||||||
Restructuring expense | 119,110 | 32,353 | 93,401 | ||||||||||||||
Operating (loss) income | (186,122) | 289,620 | 422,363 | ||||||||||||||
Financial Services: | |||||||||||||||||
Financial Services revenue | 790,323 | 789,111 | 748,229 | ||||||||||||||
Financial Services expense | 583,623 | 523,123 | 457,069 | ||||||||||||||
Restructuring expense | 10,899 | — | — | ||||||||||||||
Operating income | 195,801 | 265,988 | 291,160 | ||||||||||||||
Operating income | $ | 9,679 | $ | 555,608 | $ | 713,523 |
Motorcycles | Financial Services | Consolidated | |||||||||||||||
2020: | |||||||||||||||||
Assets | $ | 2,492,515 | $ | 9,518,086 | $ | 12,010,601 | |||||||||||
Depreciation and amortization | $ | 177,113 | $ | 8,602 | $ | 185,715 | |||||||||||
Capital expenditures | $ | 128,798 | $ | 2,252 | $ | 131,050 | |||||||||||
2019: | |||||||||||||||||
Assets | $ | 2,548,115 | $ | 7,980,044 | $ | 10,528,159 | |||||||||||
Depreciation and amortization | $ | 223,656 | $ | 8,881 | $ | 232,537 | |||||||||||
Capital expenditures | $ | 176,264 | $ | 5,176 | $ | 181,440 | |||||||||||
2018: | |||||||||||||||||
Assets | $ | 2,562,931 | $ | 8,102,733 | $ | 10,665,664 | |||||||||||
Depreciation and amortization | $ | 260,707 | $ | 4,156 | $ | 264,863 | |||||||||||
Capital expenditures | $ | 197,905 | $ | 15,611 | $ | 213,516 |
2020 | 2019 | 2018 | |||||||||||||||
Motorcycles revenue(a):
|
|||||||||||||||||
United States | $ | 2,043,851 | $ | 2,971,223 | $ | 3,159,049 | |||||||||||
EMEA | 589,943 | 743,385 | 893,589 | ||||||||||||||
Canada | 99,219 | 210,381 | 230,211 | ||||||||||||||
Japan | 137,815 | 156,644 | 161,370 | ||||||||||||||
Australia and New Zealand | 107,891 | 117,525 | 147,561 | ||||||||||||||
Other countries | 285,335 | 373,520 | 376,866 | ||||||||||||||
$ | 3,264,054 | $ | 4,572,678 | $ | 4,968,646 | ||||||||||||
Financial Services revenue(a):
|
|||||||||||||||||
United States | $ | 757,730 | $ | 754,535 | $ | 712,898 | |||||||||||
Canada | 20,353 | 22,799 | 23,120 | ||||||||||||||
Europe | 8,300 | 8,435 | 8,411 | ||||||||||||||
Other countries | 3,940 | 3,342 | 3,800 | ||||||||||||||
$ | 790,323 | $ | 789,111 | $ | 748,229 | ||||||||||||
Long-lived assets(b):
|
|||||||||||||||||
United States | $ | 644,224 | $ | 757,594 | $ | 838,446 | |||||||||||
International: | |||||||||||||||||
Thailand | 94,749 | 78,651 | 50,331 | ||||||||||||||
Other countries | 4,811 | 11,137 | 15,355 | ||||||||||||||
99,560 | 89,788 | 65,686 | |||||||||||||||
$ | 743,784 | $ | 847,382 | $ | 904,132 |
Year Ended December 31, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | 3,279,407 | $ | — | $ | (15,353) | $ | 3,264,054 | |||||||||||||||
Financial Services | — | 783,421 | 6,902 | 790,323 | |||||||||||||||||||
3,279,407 | 783,421 | (8,451) | 4,054,377 | ||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | 2,435,745 | — | — | 2,435,745 | |||||||||||||||||||
Financial Services interest expense | — | 246,447 | — | 246,447 | |||||||||||||||||||
Financial Services provision for credit losses | — | 181,870 | — | 181,870 | |||||||||||||||||||
Selling, administrative and engineering expense | 907,257 | 152,258 | (8,888) | 1,050,627 | |||||||||||||||||||
Restructuring expense | 119,110 | 10,899 | — | 130,009 | |||||||||||||||||||
3,462,112 | 591,474 | (8,888) | 4,044,698 | ||||||||||||||||||||
Operating (loss) income | (182,705) | 191,947 | 437 | 9,679 | |||||||||||||||||||
Other expense, net | (1,848) | — | — | (1,848) | |||||||||||||||||||
Investment income | 107,560 | — | (100,000) | 7,560 | |||||||||||||||||||
Interest expense | 31,121 | — | — | 31,121 | |||||||||||||||||||
(Loss) income before income taxes | (108,114) | 191,947 | (99,563) | (15,730) | |||||||||||||||||||
Income tax (benefit) provision | (59,231) | 42,203 | — | (17,028) | |||||||||||||||||||
Net (loss) income | $ | (48,883) | $ | 149,744 | $ | (99,563) | $ | 1,298 |
December 31, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 666,161 | $ | 2,591,042 | $ | — | $ | 3,257,203 | |||||||||||||||
Accounts receivable, net | 220,110 | — | (77,028) | 143,082 | |||||||||||||||||||
Finance receivables, net | — | 1,509,539 | — | 1,509,539 | |||||||||||||||||||
Inventories, net | 523,497 | — | — | 523,497 | |||||||||||||||||||
Restricted cash | — | 131,642 | — | 131,642 | |||||||||||||||||||
Other current assets | 93,510 | 190,690 | (3,730) | 280,470 | |||||||||||||||||||
1,503,278 | 4,422,913 | (80,758) | 5,845,433 | ||||||||||||||||||||
Finance receivables, net | — | 4,933,469 | — | 4,933,469 | |||||||||||||||||||
Property, plant and equipment, net | 709,845 | 33,939 | — | 743,784 | |||||||||||||||||||
Pension and postretirement assets | 95,711 | — | — | 95,711 | |||||||||||||||||||
Goodwill | 65,976 | — | — | 65,976 | |||||||||||||||||||
Deferred income taxes | 69,688 | 90,011 | (1,161) | 158,538 | |||||||||||||||||||
Lease assets | 40,564 | 4,639 | — | 45,203 | |||||||||||||||||||
Other long-term assets | 184,300 | 33,115 | (94,928) | 122,487 | |||||||||||||||||||
$ | 2,669,362 | $ | 9,518,086 | $ | (176,847) | $ | 12,010,601 | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 277,429 | $ | 90,503 | $ | (77,028) | $ | 290,904 | |||||||||||||||
Accrued liabilities | 444,786 | 115,506 | (3,078) | 557,214 | |||||||||||||||||||
Deposits | — | 79,965 | — | 79,965 | |||||||||||||||||||
Short-term debt | — | 1,014,274 | — | 1,014,274 | |||||||||||||||||||
Current portion of long-term debt, net | — | 2,039,597 | — | 2,039,597 | |||||||||||||||||||
722,215 | 3,339,845 | (80,106) | 3,981,954 | ||||||||||||||||||||
Long-term debt, net | 743,977 | 5,188,956 | — | 5,932,933 | |||||||||||||||||||
Lease liability | 26,313 | 3,802 | — | 30,115 | |||||||||||||||||||
Pension and postretirement liabilities | 114,206 | — | — | 114,206 | |||||||||||||||||||
Deferred income taxes | 7,166 | 1,441 | — | 8,607 | |||||||||||||||||||
Other long-term liabilities | 171,242 | 46,514 | 2,245 | 220,001 | |||||||||||||||||||
Commitments and contingencies (Note 16) | |||||||||||||||||||||||
Shareholders’ equity | 884,243 | 937,528 | (98,986) | 1,722,785 | |||||||||||||||||||
$ | 2,669,362 | $ | 9,518,086 | $ | (176,847) | $ | 12,010,601 |
Year Ended December 31, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net (loss) income | $ | (48,883) | $ | 149,744 | $ | (99,563) | $ | 1,298 | |||||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 177,113 | 8,602 | — | 185,715 | |||||||||||||||||||
Amortization of deferred loan origination costs | — | 71,142 | — | 71,142 | |||||||||||||||||||
Amortization of financing origination fees | 681 | 13,754 | — | 14,435 | |||||||||||||||||||
Provision for long-term employee benefits | 40,833 | — | — | 40,833 | |||||||||||||||||||
Employee benefit plan contributions and payments | (20,722) | — | — | (20,722) | |||||||||||||||||||
Stock compensation expense | 17,905 | 1,859 | 3,730 | 23,494 | |||||||||||||||||||
Net change in wholesale finance receivables related to sales | — | — | 531,701 | 531,701 | |||||||||||||||||||
Provision for credit losses | — | 181,870 | — | 181,870 | |||||||||||||||||||
Deferred income taxes | (19,097) | (24,697) | (285) | (44,079) | |||||||||||||||||||
Other, net | 544 | 13,718 | (436) | 13,826 | |||||||||||||||||||
Changes in current assets and liabilities: | |||||||||||||||||||||||
Accounts receivable, net
|
161,012 | — | (33,355) | 127,657 | |||||||||||||||||||
Finance receivables - accrued interest and other | — | 7,418 | — | 7,418 | |||||||||||||||||||
Inventories, net
|
80,858 | — | — | 80,858 | |||||||||||||||||||
Accounts payable and accrued liabilities
|
(34,755) | (40,851) | 32,519 | (43,087) | |||||||||||||||||||
Derivative financial instruments
|
(3,566) | 85 | — | (3,481) | |||||||||||||||||||
Other
|
13,929 | (4,081) | (836) | 9,012 | |||||||||||||||||||
414,735 | 228,819 | 533,038 | 1,176,592 | ||||||||||||||||||||
Net cash provided by operating activities | 365,852 | 378,563 | 433,475 | 1,177,890 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (128,798) | (2,252) | — | (131,050) | |||||||||||||||||||
Origination of finance receivables | — | (5,616,347) | 2,118,861 | (3,497,486) | |||||||||||||||||||
Collections on finance receivables | — | 6,192,625 | (2,652,336) | 3,540,289 | |||||||||||||||||||
Other investing activities | 18,073 | 3,391 | — | 21,464 | |||||||||||||||||||
Net cash (used) provided by investing activities | (110,725) | 577,417 | (533,475) | (66,783) |
Year Ended December 31, 2020 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of medium-term notes | — | 1,396,602 | — | 1,396,602 | |||||||||||||||||||
Repayments of medium-term notes | — | (1,400,000) | — | (1,400,000) | |||||||||||||||||||
Proceeds from securitization debt | — | 2,064,450 | — | 2,064,450 | |||||||||||||||||||
Repayments of securitization debt | — | (1,041,751) | — | (1,041,751) | |||||||||||||||||||
Borrowings of asset-backed commercial paper | — | 225,187 | — | 225,187 | |||||||||||||||||||
Repayments of asset-backed commercial paper | — | (318,828) | — | (318,828) | |||||||||||||||||||
Net increase in unsecured commercial paper | — | 444,380 | — | 444,380 | |||||||||||||||||||
Deposits | — | 79,947 | — | 79,947 | |||||||||||||||||||
Dividends paid | (68,087) | (100,000) | 100,000 | (68,087) | |||||||||||||||||||
Repurchase of common stock | (8,006) | — | — | (8,006) | |||||||||||||||||||
Issuance of common stock under share-based plans | 89 | — | — | 89 | |||||||||||||||||||
Net cash (used) provided by financing activities | (76,004) | 1,349,987 | 100,000 | 1,373,983 | |||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 16,389 | 2,323 | — | 18,712 | |||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | $ | 195,512 | $ | 2,308,290 | $ | — | $ | 2,503,802 | |||||||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ | 470,649 | $ | 434,717 | $ | — | $ | 905,366 | |||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 195,512 | 2,308,290 | — | 2,503,802 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 666,161 | $ | 2,743,007 | $ | — | $ | 3,409,168 |
Plan Category | Number of securities to be issued upon the exercise of outstanding options | Weighted-average exercise price of outstanding options |
Number of securities remaining available for future issuance under equity compensation plans
(excluding securities reflected in the first column) |
|||||||||||||||||
Plan approved by shareholders: | ||||||||||||||||||||
Management employees | 658,357 | $ | 55.85 | 5,395,000 | ||||||||||||||||
Plan not approved by shareholders: | ||||||||||||||||||||
Non-employee Board of Directors | — | $ | — | 152,495 | ||||||||||||||||
658,357 | 5,547,495 |
(1) |
Financial Statements under Item 8. Consolidated Financial Statements and Supplementary Data
|
|||||||
(2) | Financial Statement Schedule | |||||||
(3) |
2020 | 2019 | 2018 | |||||||||||||||
Accounts receivable - Allowance for doubtful accounts | |||||||||||||||||
Balance, beginning of period | $ | 4,928 | $ | 4,007 | $ | 4,091 | |||||||||||
Provision charged to expense | 853 | 1,569 | 731 | ||||||||||||||
Reserve adjustments | 88 | 7 | (137) | ||||||||||||||
Write-offs, net of recoveries | (2,127) | (655) | (678) | ||||||||||||||
Balance, end of period | $ | 3,742 | $ | 4,928 | $ | 4,007 | |||||||||||
Finance receivables - Allowance for credit losses | |||||||||||||||||
Balance, beginning of period | $ | 198,581 | $ | 189,885 | $ | 192,471 | |||||||||||
Cumulative effect of change in accounting(a)
|
100,604 | — | — | ||||||||||||||
Provision for credit losses | 181,870 | 134,536 | 106,870 | ||||||||||||||
Charge-offs, net of recoveries | (90,119) | (125,840) | (109,456) | ||||||||||||||
Balance, end of period | $ | 390,936 | $ | 198,581 | $ | 189,885 | |||||||||||
Inventories - Allowance for obsolescence(b)
|
|||||||||||||||||
Balance, beginning of period | $ | 49,349 | $ | 39,015 | $ | 38,669 | |||||||||||
Provision charged to expense | 43,357 | 24,984 | 25,722 | ||||||||||||||
Reserve adjustments | 718 | (39) | (332) | ||||||||||||||
Write-offs, net of recoveries | (21,429) | (14,611) | (25,044) | ||||||||||||||
Balance, end of period | $ | 71,995 | $ | 49,349 | $ | 39,015 | |||||||||||
Deferred tax assets - Valuation allowance | |||||||||||||||||
Balance, beginning of period | $ | 29,024 | $ | 21,868 | $ | 21,561 | |||||||||||
Adjustments | 9,048 | 7,156 | 307 | ||||||||||||||
Balance, end of period | $ | 38,072 | $ | 29,024 | $ | 21,868 |
INDEX TO EXHIBITS
[Items 15(a)(3) and 15(c)]
|
||||||||
Exhibit No. | Description | |||||||
Officers' Certificate, dated May 21, 2018, pursuant to Sections 102 and 301 of the Indenture, dated March 4, 2011, with the form of Floating Rate Medium-Term Notes due 2020 (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 1, 2018 (File No. 1-9183)) | ||||||||
Officers' Certificate, dated November 28, 2018, pursuant to Sections 102 and 301 of the Indenture, dated March 4, 2011, with the form of Floating Rate Medium-Term Notes due 2021 (incorporated herein by reference to Exhibit 4.20 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2018 (File No. 1-9183))
|
||||||||
Officers' Certificate, dated February 4, 2019, pursuant to Sections 102 and 301 of the Indenture, dated March 4, 2011, with the form of 4.05% Medium-Term Notes due 2022 (incorporated herein by reference to Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 (File No. 1-9183)) | ||||||||
Fiscal Agency Agreement, dated November 19, 2019, relating to the 0.9% Medium Term Notes due November 2024, among certain subsidiaries of the Company, The Bank of New York Mellon Trust Company, N.A. and The Bank of New York Mellon, London Branch (incorporated herein by reference to Exhibit 4.20 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2019 (File No. 1-9183)) | ||||||||
364-Day Credit Agreement, dated May 13, 2019, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto, and JPMorgan Chase Bank, N.A., as, among other things, global administrative agent (incorporated herein by reference to Exhibit 4.21 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2019 (File No. 1-9183)) | ||||||||
Description of Registrants Securities (incorporated herein by reference to Exhibit 4.22 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2019 (File No. 1-9183)) | ||||||||
Amendment No. 2 to 5-Year Credit Agreement, dated as of April 1, 2020, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto and JPMorgan Chase Bank, N.A., as, among other things, global administrative agent, relating to the 5-Year Credit Agreement, dated as of April 7, 2016, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto and JPMorgan Chase Bank, N.A., as among other things, global administrative agent (incorporated herein by reference to Exhibit 4.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 29, 2020 (File No. 1-9183)) | ||||||||
Amendment No. 2 to 5-Year Credit Agreement, dated as of April 1, 2020, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto and JPMorgan Chase Bank, N.A., as, among other things, global administrative agent, relating to the 5-Year Credit Agreement, dated as of April 6, 2018, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto and JPMorgan Chase Bank, N.A., as among other things, global administrative agent (incorporated herein by reference to Exhibit 4.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 29, 2020 (File No. 1-9183)) | ||||||||
Amendment No. 1 to 364-Day Credit Agreement, dated as of April 23, 2020, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto, and JPMorgan Chase Bank, N.A., as, among other things, global administrative agent, relating to the 364-Day Credit Agreement, dated as of May 13, 2019, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto and JPMorgan Chase Bank, N.A., as among other things, global administrative agent (incorporated herein by reference to Exhibit 4.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 29, 2020 (File No. 1-9183)) | ||||||||
Fiscal Agency Agreement, dated May 19, 2020, relating to the 3.875% Medium Term Notes due May 2023, among certain subsidiaries of the Company, The Bank of New York Mellon, London Branch and The Bank of New York Mellon SA/NV, Luxembourg Branch (incorporated herein by reference to Exhibit 4.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 28, 2020 (File No. 1-9183)) | ||||||||
Officers' Certificate, dated June 8, 2020, pursuant to Sections 102 and 301 of the Indenture, dated March 4, 2011, with the form of 3.350% Medium-Term Notes due 2025 (incorporated herein by reference to Exhibit 4.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 28, 2020 (File No. 1-9183)) | ||||||||
364-Day Credit Agreement, dated June 1, 2020, among the Company, certain subsidiaries of the Company, the financial institutions parties thereto, and Toronto Dominion (Texas) LLC., as, global administrative agent (incorporated herein by reference to Exhibit 4.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 28, 2020 (File No. 1-9183)) | ||||||||
Harley-Davidson, Inc. 2009 Incentive Stock Plan (incorporated herein by reference to Appendix A to the Company’s definitive proxy statement on Schedule 14A for the Company’s Annual Meeting of Shareholders held on April 25, 2009 filed on April 3, 2009 (File No. 1-9183)) | ||||||||
Amended and Restated Harley-Davidson, Inc. 2014 Incentive Stock Plan as amended effective January 25, 2019 (incorporated herein by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (File No. 1-9183))
|
INDEX TO EXHIBITS
[Items 15(a)(3) and 15(c)]
|
||||||||
Exhibit No. | Description | |||||||
Harley-Davidson, Inc. 2020 Incentive Stock Plan (incorporated herein by reference to Appendix A to the Company’s definitive proxy statement on Schedule 14A for the Company’s Annual Meeting of Shareholders held on May 21, 2020 filed on April 9, 2020 (File No. 1-9183)) | ||||||||
Amended and Restated Harley-Davidson, Inc. Director Stock Plan as amended effective December 1, 2014 (incorporated herein by reference to Exhibit 10.6 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014 (File No. 1-9183)) | ||||||||
Director Compensation Policy approved April 29, 2016 (incorporated herein by reference from Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 26, 2016 (File No. 1-9183)) | ||||||||
Deferred Compensation Plan for Nonemployee Directors as amended and restated effective January 1, 2009 (incorporated herein by reference to Exhibit 10.14 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-9183)) | ||||||||
Harley-Davidson Management Deferred Compensation Plan as amended and restated effective January 1, 2017 (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 25, 2016 (File No. 1-9183)) | ||||||||
Harley-Davidson, Inc. Employee Incentive Plan (incorporated herein by reference to the Appendix to the Company’s definitive proxy statement on Schedule 14A for the Company’s Annual Meeting of Shareholders held April 25, 2015 (File No. 1-9183)) | ||||||||
Harley-Davidson, Inc. Short-Term Incentive Plan for Senior Executives (incorporated herein by reference to Appendix D to the Company’s definitive proxy statement on Schedule 14A for the Company’s Annual Meeting of Shareholders held April 30, 2011 (File No. 1-9183)) | ||||||||
Harley-Davidson Pension Benefit Restoration Plan as amended and restated effective January 1, 2009 (incorporated herein by reference to Exhibit 10.9 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-9183)) | ||||||||
Form of Notice of Grant of Stock Options and Option Agreement of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2009 Incentive Stock Plan (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 28, 2010 (File No. 1-9183)) | ||||||||
Form of Notice of Grant of Stock Options and Option Agreement (Transition Agreement) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2009 Incentive Stock Plan (incorporated herein by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 28, 2010 (File No. 1-9183)) | ||||||||
Form of Notice of Special Grant of Stock Options and Option Agreement (Transition Agreement) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2009 Incentive Stock Plan (incorporated herein by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 28, 2010 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2009 Incentive Stock Plan (incorporated herein by reference to Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 28, 2010 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Transition Agreement) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2009 Incentive Stock Plan (incorporated herein by reference to Exhibit 10.8 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 28, 2010 (File No. 1-9183)) | ||||||||
Form of Notice of Grant of Stock Options and Option Agreement of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2009 Incentive Stock Plan to each of Messrs. Hund, Levatich and Olin (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated May 1, 2009 (File No. 1-9183)) | ||||||||
Form of Notice of Grant of Stock Options and Stock Option Agreement (Standard) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 29, 2015 (File No. 1-9183)) | ||||||||
Form of Notice of Grant of Stock Options and Stock Option Agreement (Transition Agreement) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 29, 2015 (File No. 1-9183)) | ||||||||
Executive Severance Plan (incorporated herein by reference to Exhibit 10.36 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2017 (File No. 1-9183)) | ||||||||
Form of Transition Agreement between the Registrant and each of Messrs. Levatich and Olin (incorporated herein by reference to Exhibit 10.4 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 1-9183)) | ||||||||
Transition Agreement between the Registrant and Mr. Hund dated November 30, 2009 (incorporated herein by reference to Exhibit 10.5 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 1-9183)) |
INDEX TO EXHIBITS
[Items 15(a)(3) and 15(c)]
|
||||||||
Exhibit No. | Description | |||||||
Form of Aircraft Time Sharing Agreement between the Registrant and each of Messrs. Levatich, Olin, Mansfield and Hund and Mses. Kumbier and Anding (incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (File No. 1-9183))
|
||||||||
Form of Non-competition and Non-solicitation Agreement between Harley-Davidson Canada LP, Fred Deeley Imports Ltd. and Harley-Davidson Motor Company, Inc., as amended (incorporated herein by reference to exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 28, 2015 (File No. 1-9183)) | ||||||||
Harley-Davidson Retiree Insurance Allowance Plan, as amended and restated effective January 1, 2016 (incorporated herein by reference to Exhibit 10.44 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Performance Shares and Performance Share Agreement (Standard) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan first approved for use in February 2017 (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Annual Report on Form 10-Q for the quarter ended March 26, 2017 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Performance Share Units and Performance Share Unit Agreement (Standard International) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan first approved for use in February 2017 (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Annual Report on Form 10-Q for the quarter ended March 26, 2017 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Performance Shares and Performance Share Agreement (Transition Agreement) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan first approved for use in February 2017 (incorporated herein by reference to Exhibit 10.3 to the Registrant’s Annual Report on Form 10-Q for the quarter ended March 26, 2017 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Special Retention) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan first approved for use in February 2017 (incorporated herein by reference to Exhibit 10.4 to the Registrant’s Annual Report on Form 10-Q for the quarter ended March 26, 2017 (File No. 1-9183)) | ||||||||
Form of Transition Agreement between the Registrant and each of Mr. Mansfield and Mses. Kumbier and Anding (incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the period ended April 1, 2018 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Standard), Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Standard International), Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Special), Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Special Retention), and Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Transition Agreement) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan first approved for use in February 2018 (incorporated herein by reference to Exhibit 10.43 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2018 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Performance Shares and Performance Shares Agreement (Standard), Form of Notice of Award of Performance Share Units and Performance Share Unit Agreement (Standard International), and Form of Notice of Award of Performance Shares and Performance Shares Agreement (Transition Agreement) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan first approved for use in February 2018 (incorporated herein by reference to Exhibit 10.44 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2018 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Standard), Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Standard International), Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Special), and Form of Notice of Award of Restricted Stock Units and Restricted Stock Unit Agreement (Special Retention) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan first approved for use in February 2019 (incorporated herein by reference to Exhibit 10.45 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2018 (File No. 1-9183)) | ||||||||
Form of Notice of Award of Performance Shares and Performance Shares Agreement (Standard) and Form of Notice of Award of Performance Share Units and Performance Share Unit Agreement (Standard International) of Harley-Davidson, Inc. under the Harley-Davidson, Inc. 2014 Incentive Stock Plan first approved for use in February 2019 (incorporated herein by reference to Exhibit 10.46 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2018 (File No. 1-9183)) | ||||||||
Settlement Agreement, dated March 27, 2020, by and among Harley-Davidson, Inc., and Impala Master Fund Ltd. and Impala Asset Management LLC (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed March 30, 2020 (File No. 1-9183)) | ||||||||
Acting President and Chief Executive Officer offer letter (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Annual Report on Form 10-Q for the quarter ended March 29, 2020 (File No. 1-9183)) |
INDEX TO EXHIBITS
[Items 15(a)(3) and 15(c)]
|
||||||||
Exhibit No. | Description | |||||||
Form of Transition Agreement between the Registrant and each of Messrs. Zeitz, Krause, Niketh, and Root and Mses. Giuffre and Goetter (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Annual Report on Form 10-Q for the quarter ended September 27, 2020 (File No. 1-9183)) | ||||||||
Settlement and General Release Agreement between the Registrant and Ms. Kumbier dated August 14, 2020 (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Annual Report on Form 10-Q for the quarter ended September 27, 2020 (File No. 1-9183)) | ||||||||
Harley-Davidson, Inc. Subsidiaries | ||||||||
Consent of Independent Registered Public Accounting Firm | ||||||||
Chief Executive Officer Certification pursuant to Rule 13a-14(a) | ||||||||
Chief Financial Officer Certification pursuant to Rule 13a-14(a) | ||||||||
Written Statement of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. §1350 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - formatted in Inline XBRL and contained in Exhibit 101 |
HARLEY-DAVIDSON, INC. | ||||||||
By: | /s/ Jochen Zeitz | |||||||
Jochen Zeitz | ||||||||
President and Chief Executive Officer |
Name | Title | |||||||
/s/ Jochen Zeitz | Chairman, President and Chief Executive Officer | |||||||
Jochen Zeitz | (Principal executive officer) | |||||||
/s/ Gina Goetter | Chief Financial Officer | |||||||
Gina Goetter | (Principal financial officer) | |||||||
/s/ Mark R. Kornetzke | Chief Accounting Officer | |||||||
Mark R. Kornetzke | (Principal accounting officer) | |||||||
/s/ Troy Alstead | Director | |||||||
Troy Alstead | ||||||||
/s/ R. John Anderson | Director | |||||||
R. John Anderson | ||||||||
/s/ Michael J. Cave | Director | |||||||
Michael J. Cave | ||||||||
/s/ Allan Golston | Director | |||||||
Allan Golston | ||||||||
/s/ Sara L. Levinson | Director | |||||||
Sara L. Levinson | ||||||||
/s/ N. Thomas Linebarger | Non-Executive Chairman | |||||||
N. Thomas Linebarger | ||||||||
/s/ Brian Niccol | Director | |||||||
Brian Niccol | ||||||||
/s/ Maryrose Sylvester | Director | |||||||
Maryrose Sylvester |
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